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Ref. No.: NCCL/ Regulation 34/2023 Date : August 14, 2023

National Stock Exchange of India Ltd 5[th] Floor, Exchange Plaza Bandra-Kurla Complex, Bandra (E) MUMBAI - 400 051.

Symbol: NCC

BSE Limited, Rotunda Building, P J Towers Dalal Street, Fort Mumbai - 400 001.

Code: 500294

Dear Sir(s),

Sub: Submission of Annual Report for the Financial Year 2022-23 along with the Notice of AGM

In compliance with Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are herewith forwarding the Annual Report of the Company for the Financial Year 2022-23 along with Notice of the 33[rd] Annual General Meeting (AGM) being held on Friday, September 8, 2023 at 3.00 PM (IST). The Annual Report along with the AGM notice are being mailed to the Shareholders of the Company.

We further wish to inform you that 33[rd] AGM will be held through Video Conferencing (VC) or Other Audio Visual Means (OAVM) and the e-voting will commence at 9.00 A.M on September 5, 2023 & end at 5.00 P.M on September 7, 2023. The Company has fixed Friday, September 1, 2023 as the cut-off date to reckon the eligibility to vote on the e-voting platform.

We request you to take the same on record and acknowledge the receipt of this letter.

Thanking you,

Yours faithfully For NCC LIMITED

M V SRINIVASA Digitally signed by M V SRINIVASA MURTHY MURTHY Date: 2023.08.14 12:47:35 +05'30'

M V Srinivasa Murthy Company Secretary & Sr.EVP (Legal) Encl: As above.

NCC Limited CIL: L72200TG1990PLC011146 NCC House, Madhapur, Hyderabad 500 081 T +91 40 2326 8888 F +91 40 23125555 ncclimited.com

Notice

NCC LIMITED

(CIN: L72200TG1990PLC011146) Regd. Office : NCC House, Madhapur, Hyderabad - 500 081 Tel: +91-040-23268888 Website : www.ncclimited.com E-mail : [email protected]

Dear Members,

Invitation to attend the 33[rd] Annual General Meeting on Friday, 8[th] September 2023, at 3.00 P.M (IST)

You are cordially invited to attend the 33[rd] Annual General Meeting of the Company to be held on Friday, 8[th] September 2023, at 3.00 P.M IST through Video Conferencing (VC) / Other Audio Visual Means (OAVM). The notice convening the Annual General Meeting is enclosed herewith.

For ease of participation of the Members, we have provided hereunder, the key details regarding the 33[rd] AGM for your reference:

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Sl. No. Particulars Details
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Sl. No.	Particulars	Details

1	Link for live webcast of the Annual General Meeting and for participation through Video Conferencing (VC/OAVM)	https://emeetings.kfintech.com
2	Link for remote e-voting	https://evoting.kfintech.com
3	Username and password for VC / OAVM	Members may attend the AGM through VC / OAVM by accessing the link https://emeetings.kfintech.comby using the remote e-voting credentials. Please refer the instructions contained in the Notice of the AGM for further information.
4	Helpline number for VC / OAVM participation and e-voting	Contact KFin Technologies Limited at 1800 309 4001 or write to them at [email protected]
5	Cut-off date for e-voting	1st September 2023
6	Time period for remote e-voting	Commences at 9 AM (IST) on 5thSeptember 2023 and ends at 5 PM (IST) on 7thSeptember 2023
7	Record Date	Friday, 25th August 2023
8	Last date for publishing results of the e-voting	11th September 2023
9	Registrar and Share Transfer Agent contact details	Mr. V. Raghunath (Unit: NCC Limited) KFin Technologies Limited E-mail: [email protected]; https://evoting.kfintech.com Tel No.: 1800 309 4001(Toll free)
10	NCC’s contact details	E-mail: [email protected] Contact No.: 040 - 23268888 / 23268942

Yours truly,

Sd/- M V Srinivasa Murthy Company Secretary & Sr.EVP (Legal)

Place: HYDERABAD Date: May 26, 2023

NCC LIMITED

(CIN: L72200TG1990PLC011146) Regd. Office : NCC House, Madhapur, Hyderabad - 500 081 Tel: +91-040-23268888 Website : www.ncclimited.com E-mail : [email protected]

N O T I C E

Notice is hereby given that the 33[rd] Annual General Meeting of the members of NCC LIMITED will be held on Friday, 8th September 2023 at 3.00 P.M. (IST) through Video Conferencing (VC) or Other Audio-Visual Means (OAVM) for transacting the following business:

A. ORDINARY BUSINESS:

1) To receive, consider and adopt:
(a) the audited standalone financial statements of the Company for the financial year ended 31st March 2023 together with the reports of the Board of Directors and the Auditors thereon
(b) the audited consolidated financial statements of the Company for the financial year ended 31st March 2023, together with the report of the Auditors thereon.
2) To declare dividend on the Equity Shares for the financial year 2022-23 as recommended by the Board of Directors of the Company.
3) To appoint a Director in place of Sri A S N Raju (DIN 00017416) who retires by rotation and being eligible, offers himself for reappointment.
4) To appoint a Director in place of Sri A G K Raju (DIN 00019100) who retires by rotation and being eligible, offers himself for reappointment.
B. SPECIAL BUSINESS:

5) To ratify the remuneration of the Cost Auditors for the financial year ended 31[st] March 2023

To consider and if thought fit, to pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Section 148 and other applicable provisions of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014 (including any statutory modification(s) or re-enactment thereof, for the time being in force), the Company hereby ratifies the remuneration of ` 2,00,000/- (Rupees Two Lakh only) plus taxes and reimbursement of out-of-pocket expenses if any on actual basis, payable to M/s. Vajralingam & Co., Cost Accountants (Firm Registration Number:

101059) for audit of the cost records of the Company to the extent applicable under the Companies (Cost Records and Audit) Rules, 2015 for the financial year ended 31[st] March 2023.”

6) To consider and approve the continuation of Sri Hemant M Nerurkar (DIN: 00265887) as an Independent Director beyond the age of 75 years, upto completion of his present term

To consider and if thought fit, to pass the following resolution as a Special Resolution:

“RESOLVED THAT pursuant to the provisions of Regulation 17(1A) of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 ( SEBI LODR) and any other applicable act(s)/ rule(s)/ regulation(s) and read with the special resolution passed on 6 September 2019, (for the re-appointment of Sri Hemant M Nerurkar as an Independent Director for a period of 5 years with effect from September 25, 2019 ) approval of the members be and is hereby accorded for the continuation of the Directorship of Sri Hemant M Nerurkar (DIN-00265887), who attains 75 years of age on October 20, 2023 as a Non-Executive & Independent Director of the Company for the remaining period of his tenure from October 20, 2023 (being the date of his attaining 75 years) to September 24, 2024

RESOLVED FURTHER THAT the Board of Directors and the Nomination & Remuneration Committee be and are hereby severally authorised to settle any question, difficulty, or doubt, that may arise in giving effect to this resolution and to do all such acts, deeds and things that may be necessary, expedient and desirable for the purpose of giving effect to this resolution.”

BY ORDER OF THE BOARD For NCC Limited Sd/Place: Hyderabad M V Srinivasa Murthy Date: May 26, 2023 Company Secretary & Sr. EVP (Legal)

Registered Office

NCC House, Madhapur, Hyderabad - 500 081, Telangana Email: [email protected]

Notice

N O T E S:

The Ministry of Corporate Affairs (MCA) vide General Circular No 10/2022 dated 28.12.2022 has permitted companies to conduct Annual General Meeting (AGM) to be held in the year 2023 on or before 30[th] September 2023, through Video Conferencing (VC) or Other Audio-Visual Means (OAVM), in accordance with the requirements laid down in the General Circular No. 20/2020 dated 5th May 2020. In compliance with the circulars from the MCA and applicable provisions of the Companies Act, 2013 and SEBI Circulars dated 12[th] May 2020, and 5[th] January 2023, the 33[rd] AGM of the Company is being convened and conducted through VC / OAVM. The deemed venue for the 33[rd] Annual General Meeting of the Company shall be the Registered Office of the Company.
The Company has made necessary arrangements for the participation of the Members in the 33[rd] AGM through the VC / OAVM facility provided by KFin Technologies Limited (KFintech). The instructions for participation by the Members in the AGM are given in the subsequent paragraphs. Members may note that the VC facility provided by KFintech, allows participation of at least 1000 Members on a first-come-first-served basis. The large shareholders (i.e. shareholders holding 2% or more shareholding), promoters, institutional investors, Directors, Key Managerial Personnel, the Chairpersons of the Audit Committee, Nomination & Remuneration Committee and Stakeholders Relationship Committee, Auditors, etc. can attend the AGM without any restriction on account of first-come-first-served principle.
In addition to the above, the proceedings of the 33[rd] AGM will be cast live for all the shareholders as on the cut-off date i.e. Friday, 1[st] September 2023. The shareholders can visit https://emeetings.kfintech.com and login through existing user id and password to watch the live proceedings of the 33[rd] AGM on Friday, 8[th] September 2023 from IST 3.00 p.m. onwards.
As per the provisions under the MCA Circulars, Members attending the 33[rd] AGM through VC / OAVM shall be counted for the purpose of reckoning the quorum under Section 103 of the Companies Act, 2013.
The Company has provided the facility to Members to exercise their right to vote by electronic means both through remote e-voting and e-voting during the AGM. The process of remote e-voting with necessary instructions are given in the subsequent paragraphs.
Members joining the meeting through VC / OAVM, who have not already cast their vote by means of remote e-voting, shall be able to exercise their right to vote through

e-voting at the AGM. The Members who have cast their vote by remote e-voting prior to the AGM may also join the AGM through VC / OAVM but shall not be entitled to cast their vote again.

The Company has appointed Sri A Ravishankar, Practising Company Secretary (Membership No. FCS 5335) (PCS No.4318), to act as the Scrutinizer, to scrutinize the remote e-voting and e-voting process in a fair and transparent manner.
As the 33[rd] AGM is being held through VC / OAVM as permitted under the aforesaid MCA and the SEBI Circulars, physical attendance of the Members has been dispensed with. Accordingly, the facility for appointment of proxies by the Members will not be made available for the 33rd AGM and hence the Proxy Form and Attendance Slip are not annexed to this Notice.
Institutional / Corporate Shareholders (i.e. other than individuals / HUF, NRI, etc.) are required to send a scanned copy (PDF/JPG Format) of its Board or governing body Resolution/ Authorization etc., authorizing its representative to attend the AGM through VC / OAVM on its behalf and to vote through remote e-voting / e-voting . The said Resolution/Authorization shall be sent to the Scrutinizer by email through its registered email address to [email protected] (scrutinizer email) with a copy marked to https://evoting. kfintech.com.
In case of joint holders attending the meeting, only such joint holder who is higher in the order of names will be entitled to vote.
As permitted under the said MCA and SEBI Circulars, the notice of the 33[rd] AGM along with the Annual Report 2022-23 are being sent only by electronic mode to those Members whose e-mail addresses are registered with the Company/ Depositories. Members may please note that this Notice and Annual Report 2022-23 will also be available on -

the Company’s website at https://ncclimited.com/annual report.html, websites of the Stock Exchanges i.e. BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and www. nseindia. com respectively, and on the website of KFintech at https://evoting.kfintech. com.

Members who have not registered their e-mail address are requested to register the same in respect of shares held in electronic form with the Depository through their Depository Participant(s) and in respect of shares held in physical form by writing to the Company’s Registrar and Share Transfer Agent, KFin Technologies Limited, (Unit: NCC Limited) Selenium Tower B, Plot No. 31 & 32, Gachibowli Financial District, Nanakramguda, Hyderabad-500 032.

Explanatory Statement pursuant to Section 102(1) of the Companies Act, 2013 relating to the items of Special Business to be transacted at the 33[rd] AGM is annexed hereto. All documents referred to in the accompanying Notice and the Explanatory Statement shall be available for inspection electronically. Members seeking to inspect such documents can send an email to [email protected].
Brief profile of the Directors proposed to be appointed / reappointed is given towards the end of this Notice pursuant to Regulation 36(3) of the SEBI (LODR) Regulations 2015 and Secretarial Standard-2 issued by the Institute of Company Secretaries of India. The Company has received the requisite consents/ declarations for the appointment/ re-appointment of the Directors mentioned in the Notice of the AGM as stipulated under the Companies Act, 2013 and the rules made thereunder.
In terms of the provisions of Section 152 of the Act, Sri ASN Raju (DIN 00017416) and Sri AGK Raju (DIN 00019100), Wholetime Directors of the Company, retire by rotation at the Meeting and being eligible they have indicated their willingness for the proposed reappointment. The Board of Directors of the Company recommends their respective re-appointments for the approval of the Members.
Members who hold shares in dematerialized form and want to register / update the bank account details should send the same immediately to their concerned Depository Participant. The Company will not entertain any direct request from such Members for change of address, transposition of names, deletion of name of deceased joint holder and change in the bank account details. While making payment of Dividend, the Registrar and Share Transfer Agent is obliged to use only the data provided by the Depositories, in case of such dematerialized shares.
Members holding shares in physical form are requested to consider converting their holding to dematerialized form to eliminate all risks associated with physical shares and for ease in portfolio management, Members can contact the Company or KFintech., for assistance in this regard.
Members holding shares in physical mode are also requested to register / update their e-mail address with the Company / KFintech for receiving all communications from the Company electronically.
Members who are holding shares in physical form are advised to submit particulars of their bank account, viz. name and address of the branch of the bank, MICR code of the branch, type of account and account number to the Registrar and Share Transfer Agent, KFin Technologies

Limited (Unit: NCC Limited), Selenium Tower B, Plot No. 31 & 32, Financial District, Nanakramguda, Gachibowli, Hyderabad - 500 032.

Members who are holding shares in physical form in identical order of names in more than one folio are requested to send to the Company or its Registrar and Share Transfer Agent the details of such folios together with the share certificates for consolidating their holding in one folio. The share certificates will be returned to the Members after making requisite changes, thereon.
In accordance with the proviso to Regulation 40(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, effective from 1st April 2019, transfers of securities of the Company shall not be processed unless the securities are held in the dematerialized form with a depository.
The equity dividend of ` 2.20 per Equity Share (110%) for the year ended 31[st] March 2023 as recommended by the Board, if approved at the ensuing Annual General Meeting, will be payable to those members whose names appear on the Company’s Register of Members and in respect of shares held in electronic form the dividend will be payable on the basis of beneficial ownership as per the details furnished by the Depositories on the Record Date i.e. Friday, 25[th] August 2023.
Pursuant to the Finance Act 2020, dividend income is taxable in the hands of the Members w.e.f. 1[st] April, 2020 and the Company is required to deduct tax at source from dividend paid to Members at the prescribed rates. For the prescribed rates for various categories, the shareholders are requested to refer to the Finance Act, 2020 and amendments thereof. The shareholders are requested to update their PAN with the Company/ KFintech (in case of shares held in physical mode) and the Depositories (in case of shares held in demat mode). A Resident individual shareholder with PAN and who is not liable to pay income tax can submit a yearly declaration in Form No.15G/15H, to avail the benefit of non-deduction of tax at source by email to einward. [email protected] by 5 p.m. IST on 25th August 2023. Members are requested to note that in case their PAN is not registered, the tax will be deducted at a higher rate of 20%.
Members who wish to claim the Dividends, which have remained unclaimed, are requested to either correspond with the Secretarial Department at the Company’s Registered Office or the Company’s Registrar and Share Transfer Agent (KFintech) for remittance of the Unclaimed Dividend before the due dates. The details of such unclaimed dividends are available on the Company’s website at

Notice

www.ncclimited.com Members are requested to note that the dividend remaining unclaimed for a continuous period of seven years from the date of transfer to the Company’s Unpaid Dividend Account shall be transferred to the Investor Education and Protection Fund (IEPF). In addition, all shares in respect of which dividend has not been claimed for seven consecutive years or more shall be transferred by the Company to demat account of the IEPF Authority within a period of thirty days of such shares becoming due for transfer to the IEPF.

In the event of transfer of shares and the unclaimed dividends to IEPF, Members are entitled to claim the same from the IEPF Authority by submitting an online application in the prescribed Form IEPF-5 available on the website http://www.iepf.gov.in and sending a physical copy of the same duly signed to the Registered Office of the Company along with the requisite documents enumerated in Form IEPF-5. Members can file only one consolidated claim in a financial year as per the IEPF Rules.
Pursuant to the Rule 5(8) of the Investor Education and Protection Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, the Company has uploaded details of the unclaimed amounts lying with the Company as on 31[st] March 2023 on its website at https://www.ncclimited. com/shares-due-for-transfer-to-IEPF.html and also on the website of the Ministry of Corporate Affairs.
Members holding shares in physical form are requested to promptly notify in writing their bank account details/ any change therein or change in their address, nomination, e-mail address, mobile number, etc. in Form ISR-1 along with requisite documents as mandated by SEBI to KFintech. These details will be updated provided other relevant KYC details are registered for the folio. Members holding shares in electronic form are requested to notify the change in above particulars directly to their DP.
As the 33[rd] AGM is being held through VC / OAVM, the route map is not annexed to this Notice.

ANNEXURE TO NOTICE

Explanatory Statement pursuant to Section 102 of the Companies Act, 2013 and Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:

Item No. 5

The Board, on the recommendation of the Audit Committee, had approved the appointment and remuneration of M/s Vajralingam & Co., Cost Accountants (Firm Registration No. 101059), as the Cost Auditors of the Company to conduct the audit of the cost records of the Company for the financial year 2022-23 at a remuneration of ` 2,00,000/- (Rupees Two Lakh only) excluding taxes and reimbursement of out of pocket expenses if any, In accordance with the provisions of Section 148 (3) of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014, the remuneration payable to the Cost Auditor has to be ratified by the members of the Company. Accordingly, ratification by the members of the Company is sought for the remuneration payable to the Cost Auditor for conducting the audit of the cost records of the Company, for the financial year ended 31[st] March 2023.

None of the Directors or Key Managerial Personnel or their relatives are concerned or interested in the above resolution.

The Board commends the resolution as set out in item number 5 of the notice for the approval of the members of the Company

Item No. 6

Sri Hemant M Nerurkar (DIN-00265887) was appointed as an Independent Director with effect from 25[th] September, 2014 and his first term as an Independent Director concluded on 24[th] September, 2019. As Sri Nerurkar fulfilled the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and Regulations 16(1)(b), 17 and 17A of the SEBI (LODR) Regulations, 2015 (SEBI (LODR)) the Board at its meeting held on 24[th] May 2019, based on the performance evaluation, recommendations of the Nomination and Remuneration Committee, background, experience and contribution made by Sri Hemant Nerurkar (DIN-00265887) during his tenure, had approved his reappointment for a second term commencing from 25[th] September, 2019 upto 24[th] September, 2024, subject to the approval of shareholders of the company. The Members of the Company at their meeting held on 6[th] September 2019 approved the aforesaid reappointment of Sri Nerurkar as an Independent Director for the Second Term of Five Years w.e.f 25[th] September 2019 upto 24[th] September 2024 or till such earlier date to conform with the policy on retirement and as may be determined by any applicable statutes, regulations

or guidelines.

Sri Nerurkar attains the age of 75 years on 20[th] October 2023. As required in terms of Regulation 17(1A) of the SEBI (LODR) approval of the Members is required for continuation of his directorship from the day he attains 75 years till the expiry of his current tenure till 24[th] September, 2024. The Board of Directors at its meeting held on 26[th] May 2023 based on the recommendation of the Nomination and Remuneration Committee, subject to the approval of the Shareholders at the ensuing AGM, have approved the continuation of Sri Nerurkar as an Independent Director notwithstanding that he attains the age of 75 years on 20[th] October 2023, for the remaining period of his present term from the said date.

The members of the company may note that Sri. Nerurkar was Executive Director of India and South-East Asia of Tata Steel Limited since April 9, 2009 and was appointed as Managing Director of Tata Steel Limited from October 1, 2009. He is a B.Tech in metallurgical engineering from the College of Engineering, Pune University, Sri. Nerurkar has attended several management courses in India and overseas, including CEDEP in France. He is / was associated with several professional organisations, such as Indian Institute of Metals, INSDAG and AIMA, amongst others. He is on the Board of several other Leading Companies.

During his illustrious career with TATAs, Sri. Nerurkar has been conferred with several prestigious awards such as the ‘Tata Gold Medal 2004’, ‘SMS Demag Excellence Award 2002’, ‘Steel 80’s Award - 1990’, ‘SAIL Gold Medal - 1989’, ‘Visveswaraya Award - 1988’ and ‘NMD Award 1987’.

The Members may note that Sri Nerurkar, Independent Director has been the Chairman of the Company w.e.f 10[th] November 2015 and based on his rich experience spanning over 45 years he has been contributing in significant manner for the overall progress achieved by the Company during his tenure as Chairman of the Company. Details of Sri Nerurkar in terms of Regulation 36(3) of the SEBI (LODR) have been provided in the Annexure hereto.

In view of his vast experience, expertise and the contribution of Sri Nerurkar to the progress made by the company, his continued association with the company would be of immense benefit to the company.

Other than Sri Nerurkar and his relatives, none of the other Directors, Key Managerial Personnel and their relatives are in any way, concerned or interested, financially or otherwise, in the Resolution set out at Item No. 6, except to the extent of their shareholding, if any, in the Company.

Notice

In compliance with the provisions of Regulation 17 (1A) of SEBI (LODR) the continuation of the appointment Sri Nerurkar as an Independent Director after his attaining 75 years of age is now being placed before the Members for their approval by way of Special Resolution.

The Board commends the Special Resolution set out at Resolution No. 6 of the Notice for the approval by the Members.

Place: Hyderabad Date: May 26, 2023

BY ORDER OF THE BOARD For NCC Limited Sd/M V Srinivasa Murthy Company Secretary & Sr. EVP (Legal)

Registered Office

NCC House, Madhapur, Hyderabad - 500 081, Telangana Email: [email protected]

Information about the Directors recommended for appointment / re-appointment / continuation as required under Regulation 36(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Secretarial Standard-2 on General Meetings

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Sri A S N Raju Sri A G K Raju Sri Hemant M Nerurkar
Name of the Director
(DIN 00017416) (DIN 00019100) (DIN 00265887)
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Name of the Director	Sri A S N Raju (DIN 00017416)	Sri A G K Raju (DIN 00019100)	Sri Hemant M Nerurkar (DIN 00265887)

Age(in Years)	65	64	74
Qualification	Under-Graduate	MBA	B. Tech
Date of first appointment	22-03-1990	22-03-1990	25-09-2014
(a) Terms & Conditions of Re- appointment along with Remuneration sought to be paid (b) Relationship with other Directors and other Key Managerial Personnel of the Company	Being Re-Appointed as a Director liable to retire by rotation Please refer Report on the Corporate Governance Sri A S N Raju is the brother of Sri A A V Ranga Raju, Sri A G K Raju and Sri A V N Raju None of the other Directors and Key Managerial Personnel are related to Sri A S N Raju	Being re-appointed as a Director liable to retire by rotation. Please refer Report on the Corporate Governance Sri A G K Raju is the brother of Sri A A V Ranga Raju, Sri A S N Raju and Sri A V N Raju None of the other Directors and Key Managerial Personnel are related to Sri A G K Raju	Continuation as an Independent Director beyond the age of 75 years, upto completion of his present term Please refer Report on the Corporate Governance None of the Directors or Key Managerial Personnel are related to Sri Hemant M Nerurkar
Brief Resume and expertise in specific functional area	Sri A S N Raju is one of the Promoters and has been associated with the Company since inception as Wholetime Director. He heads the Buildings and Roads Divisions of the Company. He has vast experience spanning around 44 years in the construction industry.	Sri A G K Raju is one of the Promoters and has been associated with the Company as the Executive Director since inception. He oversees the functions of Finance, Purchase, HR & Administration. He has vast experience spanning around 41 years in the construction industry.	Sri Hemant M Nerurkar is the Chairman – Independent Director of the Company. He was earlier associated as Managing Director of Tata Steel Ltd. He has vast experience spanning around 47 years in the Steel, Mining and related fields (Please also see Explanatory Statement in respect of item No.6 forming part of the AGM Notice)
Number of meetings of the Board attended during the year	6 out of 6	6 out of 6	6 out of 6

Notice

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Sri A S N Raju Sri A G K Raju Sri Hemant M Nerurkar
Name of the Director
(DIN 00017416) (DIN 00019100) (DIN 00265887)
----- End of picture text -----

Name of the Director	Sri A S N Raju (DIN 00017416)	Sri A G K Raju (DIN 00019100)	Sri Hemant M Nerurkar (DIN 00265887)

Names of other companies in which directorship(s) is held	NIL	NCC Urban Infrastructure Ltd	1. TRL Krosaki Refractories Ltd. 2. TRL Krosaki China Ltd, P.R China 3. Adani Enterprises Ltd 4. Crompton Greaves Consumer Electricals Ltd. 5. Trust Asset Management Private Ltd. 6. Adani Global Pte Ltd., Singapore. 7. Igarashi Motors India Ltd. 8. Mumbai International Airport Limited. 9. Navi Mumbai International Airport Ltd. 10.Raghav Productivity Enhancers Limited 11. DFM Foods Limited
Cessation on Listed Entities (date)	NIL	NIL	Tega Industries Ltd (31-03-2022)
Names of other companies in which holds the membership of Committees of the Board	NIL	NCC Urban Infrastructure Ltd	1. Igarashi Motors India Limited. 2. Adani Enterprises Limited. 3. Crompton Greaves Consumer Electricals Limited. 4. DFM Foods Limited (Delisted w.e.f 5thApril 2023)
No. of Equity Shares of`2/- each held in the Company as on 31stMarch 2023	4092985	3581569	NIL

INSTRUCTIONS FOR REMOTE E-VOTING

Use the following URL for e-voting from KFintech website: https://evoting.kfintech.com.

Members of the Company holding shares either in physical form or in dematerialized form, as on 1[st] September 2023, the cutoff date, may cast their vote electronically.

Enter the login credentials i.e. User ID and password mentioned in your email. Your Folio No./DP ID Client ID will be your User ID. However, if you are already registered with KFintech for e-voting, use your existing User ID and password for casting your votes.
After entering the details appropriately, click on LOGIN.

You will reach the Password change menu wherein you are required to mandatorily change your password. The new password shall comprise of minimum 8 characters with at least one upper case (A-Z), one lower case (az), one numeric value (0-9) and a special character (@, #, $ etc.). It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential.

You need to login again with the new credentials.

On successful login, the system will prompt you to select the EVENT i.e., NCC Limited.

On the voting page, the number of shares (which represents the number of votes) held by you as on the cut-off date will appear. If you desire to cast all the votes assenting/ dissenting to the resolution, enter all shares and click ‘FOR’/’AGAINST’ as the case may be or partially in ‘FOR’ and partially in ‘AGAINST’, but the total number in ‘FOR’ and/or ‘AGAINST’ taken together should not exceed your total shareholding as on the cut-off date. You may also choose the option ‘ABSTAIN’ and the shares held will not be counted under either head.

Members holding multiple folios / demat accounts shall choose the voting process separately for each folio / demat account.

Cast your vote by selecting an appropriate option and click on SUBMIT. A confirmation box will be displayed. Click OK to confirm else CANCEL to modify. Once you confirm, you will not be allowed to modify your vote. During the voting period, Members can login any number of times till they have voted on the Resolution.

The Portal will open for voting from 9.00 a.m. on 5[th] September 2023 and closes at 5.00 p.m. on 7[th] September 2023.

Members of the Company who have purchased the shares of the Company after the dispatch of the Notice but before the cutoff date 1[st] September 2023 may contact KFintech at Tel No. 1800 309 4001 (toll free) to obtain login id and password or send a request to [email protected].

In case of any queries, you may refer the Frequently Asked Questions (FAQs) for shareholders and e-voting User Manual for shareholders available at the download section of https://evoting.kfintech.com or contact KFintech at Tel No. 1800 309 4001 (toll free).

Pursuant to SEBI Circular No. SEBI/HO/CFD/CMD/ CIR/P/2020/242 dated 9th December 2020 on “e-voting facility provided by Listed Companies”, e-voting process has been enabled to all the individual demat account holders, by way of single login credential, through their demat accounts / websites of Depositories / DPs in order to increase the efficiency of the voting process. Individual demat account holders would be able to cast their vote without having to register again with the e-Voting service provider (ESP) thereby not only facilitating seamless authentication but also ease and convenience of participating in e-voting process.

Shareholders are advised to update their mobile number and e-mail ID with their DPs in order to access e-voting facility.

Notice

Procedure to login through websites of Depositories

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NSDL CDSL
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NSDL

CDSL

1.
Users already registered for IDeAS facility of NSDL
a.
Click on URL: https://eservices.nsdl.com.
b.
Click on the “Beneficial Owner” icon under ‘IDeAS’
section.
c.
Enter your User ID and Password for accessing IDeAS,
d.
On successful authentication, you will enter your
IDeAS service login.
e.
Click on “Access to e-Voting”.
f.
Click on Company name or e-voting service provider and
you will be re-directed to KFintech website for casting
the vote during the remote e-voting period.
2.
Users not registered for IDeAS facility of NSDL
a.
To register, click on URL: https://eservices.nsdl.com
b.
Select “Register Online for IDeAS”.
c.
Proceed to complete registration using your DPID, Client
ID, Mobile Number, etc.
d.
After successful registration, please follow steps
given under Sr. No. 1 above to cast your vote.
3.
Users may directly access the e-voting module of NSDL
as per the following procedure:
a.
Click on URL: https://www.evoting.nsdl.com/
b.
Click on the button “Login” available under “Shareholder
/ Member” section.
c.
Enter your User ID (i.e. 16-digit demat account number
held with NSDL), login type, Password / OTP and
Verification code as shown on the screen
d.
On successful authentication, you will enter the
e-voting module of NSDL
e.
Click on Company name or e-voting service provider and
you will be re-directed to KFintech website for casting
the vote duringthe remote e-voting period.

1.
Users already registered for Easi / Easiest facility of
CDSL
a.
Click on URL:https://web.cdslindia.com/myeasi/
home/login orwww.cdslindia.com and click on New
System Myeasi
b.
Enter your User ID and Password for accessing Easi /
Easiest.
c.
Click on Company name or e-voting service provider
for casting the vote
2.
Users not registered for Easi / Easiest facility of CDSL
a.
To register, click on URLhttps://web.cdslindia.com/
myeasi/ home/login
b.
Proceed to complete registration using your User ID,
Client Id, Mobile Number, etc.
c.
After successful registration, please follow steps give
under Sr. No. 1 above to cast your vote.
3.
Users may directly access the e-voting module of CDSL as
per the following procedure:
a.
Click on URL: www.cdslindia.com
b.
Provide demat account number and PAN
c.
System will authenticate user by sending OTP on
registered mobile & email as recorded in the demat
account
d.
On successful authentication, your will enter the
e-voting module of CDSL.
e.
Click on Company name or e-voting service provider
and you will be re-directed to KFintech website for
casting the vote during the remote e-voting period.

Procedure to login through their demat accounts / website of Depository Participant

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NSDL CDSL
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NSDL	CDSL

Individual shareholders holding shares of the Company in Demat mode can access e-Voting facility provided by the Company using login credentials of their demat accounts (online accounts) through their demat accounts / websites of Depository Participants registered with NSDL/CDSL. An option for “e-Voting” will be available once they have successfully logged-in through their respective logins. Click on the option “e-Voting” and they will be redirected to e-Voting modules of NSDL/CDSL (as may be applicable). Click on the e-Voting link available against the name of Company or select e-Voting service provider “KFintech” and you will be redirected to the e-Voting page of KFintech to castyour vote without anyfurther authentication.
Members who are unable to retrieve User ID / Password are advised to use “Forgot User ID” / “Forgot Password” options available on the websites of Depositories/ Depository Participants.
Contact details in case of technical issue on NSDL website	Contact details in case of technical issue on CDSL website
Members facing any technical issue in login can contact NSDL helpdesk by sending a request at [email protected] or call at toll free no.: 1800 1020 990 and 1800 22 44 30	Members facing any technical issue in login can contact CDSL helpdesk by sending a request at helpdesk.evoting@cdslindia. comor Call of toll free No.1800 225 533

Immediately after the conclusion of voting at the AGM, the scrutinizer shall first count the votes cast at the AGM and thereafter unblock the votes cast through remote e-voting in the presence of at least two witnesses not in the employment of the company. The scrutinizer shall prepare a consolidated scrutinizer’s report of the total votes cast in favor or against, if any, not later than 11[th] September 2023. This report shall be made to the Chairman or any other person authorized by the Chairman, who shall declare the result of the voting forthwith.

The voting results declared along with the Scrutinizer’s Report shall be placed on the Company’s website www.ncclimited.com and the website of the Registrar and Share Transfer Agent viz., https://evoting.kfintech.com immediately after the declaration of the result by the Chairman or a person authorized by the Chairman. The results shall also be immediately forwarded to BSE Limited and National Stock Exchange of India Limited.

INSTRUCTIONS FOR PARTICIPATING IN THE AGM THROUGH VC/OAVM

Members will be able to attend the 33[rd] AGM through VC/ OAVM through KFintech-voting system at https://evoting. kfintech. com under shareholders login by using the remote e-voting credentials and selecting the EVENT for the Company’s 33[rd] AGM. Please note that the Members who do not have the User ID and Password for e-voting or have forgotten the User ID and Password may retrieve the same by following the remote e-voting instructions mentioned in the Notice of AGM to avoid last minute rush. Further, Members can also use the OTP based login for logging in to the e-voting system.
Members will be required to use internet with a good speed to avoid any disturbance during the Meeting. It is recommended to join the Meeting through Google Chrome for better experience.
Please note that Members connecting from mobile devices or tablets or through laptops etc. connecting via mobile hotspot, may experience Audio/Video loss due to fluctuation in their respective network. It is therefore recommended to use stable Wi-Fi or LAN connection to mitigate any kind of aforesaid glitches.
Members will be required to grant access to the web-cam to enable two-way video conferencing.

5. REGISTRATION AS A SPEAKER FOR THE AGM

Members, who would like to express their views or ask questions during the AGM will have to register themselves as a speaker by visiting the URL https://evoting.kfintech.com/ and clicking on the tab ‘Speaker Registration’ and mentioning their registered e-mail id, mobile number, and city, during the period starting from 5[th] September 2023 at 09.00 a.m IST up to 7[th] September 2023 at 05.00 p.m IST. Only those members who have registered themselves as speaker will be allowed to express their views/ask questions during the AGM. The Company reserves the right to restrict the number of speakers depending on the availability of time for the AGM. Please note that questions of only those Members will be entertained/considered who are holding shares of Company as on the cut-off date i.e., 1[st] September 2023.

Notice

Members, who would like to seek clarifications with regard to the financial statements or the operations of the Company, may do so by sending a request from their registered email id to reach the Company’s email id [email protected] at least seven days prior to the date of the meeting, so as to enable the Management to respond suitably.

The Chairman shall, after responding to the questions raised by the Members at the AGM, formally propose to the Members participating through VC/OAVM to vote on the Resolutions as set out in the Notice of the 33[rd] AGM and announce the start of the casting of vote through

e-voting system. After the Members participating through VC/OAVM, eligible and interested to cast votes, have cast the votes, the e-voting will be closed with the formal announcement of closure of the Meeting.

Only those Members who will be present in the AGM through the VC / OAVM facility and have not cast their vote through remote e-voting are eligible to vote through e-voting in the AGM.
Members who need assistance or help during the AGM, can contact KFintech at toll free number 1800-309-4001 or write to them at [email protected]

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ENRICHING | EXPANDING | PROGRESSING
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NCC LIMITED Annual Report 2022-23

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About the Company 02
FY23 Highlights 03
Our Major Clients 04
Mesage from the Founder and Chairman Emeritus 06
Mesage from the Chairman 08
Review by the Managing Director 10
Board of Directors 12
How We Create Value 14
Our Divisions 16
Order Inflow & Order Book Status 19
Key Performance Indicators etc. 20
Corporate Social Responsibility 28
Corporate Information 30
Board’s Report 31
Management Discussion & Analysis 45
Report on Corporate Governance 53
Business Responsibility and Sustainability Reporting (BRSR) 70
Standalone Financial Statements 109
Consolidated Financial Statements 182
Disclaimer
In this Annual report we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed
investment decisions. This report and other statements – w r itten a nd oral – that we periodically make contain forward- looking statements that set
out anticipated results based on the management’s plans and assumptions. We have tried wherever possible to identify such statements by using
words such as ‘anticipates’, ‘estimates’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’ and words of similar substance in connection with any
discussion of future performance. We cannot guarantee that these forward-looking statements will be realised, although we believe we have been
prudent in assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown
risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated,
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In this Annual report we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment decisions. This report and other statements – ~~w~~ r ~~itten a~~ nd oral – that we periodically make contain forward- looking statements that set out anticipated results based on the management’s plans and assumptions. We have tried wherever possible to identify such statements by using words such as ‘anticipates’, ‘estimates’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’ and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

CORPORATE OVERVIEW

ENRICHING EXPANDING PROGRESSING

NCC is more than a construction company; it’s a catalyst for national enrichment, expansion, and progress. Our diverse projects, spanning from buildings to irrigation, drive transformation across sectors. Every endeavor reflects our commitment to quality and innovation, reinforcing our four-decade growth trajectory. Our broadened capabilities allow us to deliver intricate projects with unwavering dedication. The landmark infrastructures we construct, the sustainable water management solutions we provide, our groundbreaking transportation advancements, and our significant role in the power and mining sectors all underline our crucial contribution to the nation’s development. We are NCC, shaping a better future, project ~~by project.~~

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Annual Report 2022-23

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ABOUT THE COMPANY

NCC has expanded its presence in various sectors of construction and infrastructure development. Our construction endeavours span across the Nation and encompass Buildings, Transportation, Water and Environment, Electrical Transmission and Distribution, Irrigation, Mining, and Railways projects. Each project we undertake is characterised by exceptional quality. Over the past four decades and more, we have experienced significant growth, both in terms of the quantity and diversity of projects. We have continuously enhanced our expertise and capabilities within the Organisation to successfully manage intricate and demanding projects. The extensive projects entrusted to and successfully completed by us,serve as a testament to our competence and unwavering dedication.

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NCC LIMITED

CORPORATE OVERVIEW

FY23 HIGHLIGHTS

` 50,244 crores Cumulative Order Book +28% YEAR ON YEAR

` 13,504 crores Revenue (Standalone) +35 % YEAR ON YEAR

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Revenue Milestones Standalone

• 1996: ` 100 crores+

• 2005: ` 1000 crores+

• 2011: ` 5000 crores+

• 2019: ` 12,000 crores+

• 2023: ` 13,000 crores+

Annual Report 2022-23

OUR MAJOR CLIENTS

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• Airports Authority of India, New Delhi • Cauvery Neeravari Nigama Limited • Hyderabad Metropolitan Water Supply
and Sewerage Board
• Andhra Pradesh Industrial • City and Industrial Corporation of
Infrastructure Corporation Limited. Maharashtra • Indian Institute of Technology,
Jodhpur
• Andhra Pradesh Township • Dakshinanchal Vidyut Vitran Nigam Ltd
Infrastructure Development • Indian Oil Corporation Limited
• Delhi Metro Rail Corporation Limited
• AP Capital Region Development • Irrigation and CAD Department,
Authority, Vijayawada • Dept. of Space, Govt. of India, Telangana
Sriharikota
• AP Medical Services & Infrastructure • Jharkhand BijiliVitran Nigam Limited
Development Corporation • Directorate of Arts & Culture,
Meghalaya • Jharkhand Urban Infrastructure
• Ballari City Corporation, Ballari Development Company Limited
• Drinking Water Sanitation
• Bangalore Electricity Supply Company Department, Jharkhand • Karnataka Housing Board
Limited, Bangalore
• Engineers India Limited • Karnataka Road Development
• Bangalore Metro Rail Corporation, Corporation
Bangalore • Greater Hyderabad Municipal
Corporation, Hyderabad, Telangana • Karnataka Power Transmission
• Bangalore Development Authority Corporation Limited
• Greater Visakhapatnam Municipal
• Bharat Heavy Electricals Limited Corporation, Visakhapatnam, AP • Karnataka Urban Water Supply
Drainage Board
• Bihar Agricultural University • Gujarat Water Supply and Sewerage
Board • Lucknow Development Authority
• Bihar Medical Services & Infrastructure
Corporation Limited • Haryana State Industrial and • Madhya Pradesh Public Works
Infrastructure Development Department, Bhopal, Madhya Pradesh
• Bihar Power Distribution Company Corporation
Limited- South & North • Madhya Pradesh Jal Nigam Maryadit
• Haryana International Horticulture
• Bihar Rajya Pul Nirman Nigam Limited Marketing Corporation Limited • Madhyanchal Vidyut Vitran Nigam
Limited
• Bridge and Roof Co. (India) Ltd • Hindustan Aeronautics Limited
• Mahanadi Coal Fields Limited
• Brihan Mumbai Municipal Corporation • Hindustan Steelworks Construction
Limited • Maharashtra Airport Development
• Bangalore Water Supply & Sewerage Company, Mumbai
Board • HLL Infra Tech Serivces Limited
• Maharashtra Jeevan Pradikaran
• Central Public Works Department • Hyderabad Growth Corridor Limited,
Hyderabad • Maharashtra Metro Rail Corporation
• Chennai Metro Rail Limited Ltd.
• Hyderabad Metropolitan Development
• Chennai Metropolitan Water Supply Authority • Maharashtra State Electricity
and Sewerage Board Distribution Corporation Limited
(MSEDCL)
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Hyderabad Metropolitan Water Supply and Sewerage Board

NCC LIMITED

CORPORATE OVERVIEW

Maharashtra State Road Development Corporation Ltd
Patni Computers
Tamil Nadu Housing Board
Public Health Engineering Department • Tamil Nadu Trade Promotion
• Military Engineer Services (of various states) Organization • Ministry of Transport & • Punjab Water Supply Sewerage Board • Tamilnadu Water Supply Drainage Communication - Govt. of Oman Board • Purvanchal Vidyut Vitran Nigam
• Mumbai Metropolitan Region Limited • Transmission Corporation of Development Authority, Mumbai Telangana Limited • Rail Vikas Nigam Limited
• Municipal Corporation of Greater • Telangana Sate Power Generation Mumbai • Rajiv Gandhi Rural Housing Corporation Limited Corporation Limited, Bangalore
• Muscat Municipality, Sultanate of • The Project Seabird, New Delhi Oman • Reliance Industries Limited • The West Bengal Power Development
• Nagpur Metro Rail Corporation Ltd. • Reserve Bank of India Corporation Limited Nagpur • Road Development Authority, Srilanka • Transmission Corporation of
• Nalanda University, Rajgir, Bihar Telangana Limited • Rural Water Supply & Sanitation
• Narmada Water Resources Water Department (of various states) • UP Expressway Industrial Development Supply & Kalpasar Department, Authority Gujarat • Sardar Sarovar Narmada Nigam Limited • Uttar Pradesh Housing & Development
• National Highways Authority of India Board, Lucknow (NHAI) • Shriram Properties Private Limited • Uttar Pradesh Jal Nigam Limited
• National Institute of Technology • Singareni Collieries Company Limited • Uttarakhand Pey Jal Nigam Limited
• National Mineral Development • State Bank of India Corporation Limited • Visvesvaraya Jala Nigam Ltd
• National Thermal Power Corporation • State Electricity Boards (of various States) • West Bengal Housing Infrastructure
• Navi Mumbai International Airport Limited Limited • State Public Works Departments (of various states) • Western Coalfields Limited
• Navi Mumbai Municipal Corporation • State Water & Sanitation Mission, • Water Resources Department (of
• Naya Raipur Atal Nagar Vikas (NG&RWS Dept), Govt of UP various States) Pradikaran • Steel Authority of India Limited • West Bengal State Electricity
• NBCC Limited Distribution Company Limited • Symbiosis University (WBSEDCL)
• Odisha Bridge & Construction Corporation Limited • Tamil Nadu Generation and Distribution Corporation Limited,
• Pacschimanchal Vidyut Vitran Nigam Chennai Limited

Annual Report 2022-23

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MESSAGE FROM THE FOUNDER AND CHAIRMAN EMERITUS

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Dear Shareholders,

I am delighted to witness the exceptional performance of NCC Ltd in FY23. I take immense pride and joy in seeing the realisation of our vision and the unwavering commitment to the values and ethics that form the bedrock of NCC Ltd.

Our resolute vision to become a world-class construction and infrastructure enterprise, driven by our unwavering pursuit of quality, timely completion, customer satisfaction, continuous learning, and the enhancement of stakeholders’ value, has yielded remarkable results year on year.We remain steadfast in our mission to build a robust future, ensuring increased returns to our esteemed shareholders and enhanced support to our dedicated associates. By embracing cutting-edge technologies in engineering, construction, operation, and maintenance of infrastructure projects, we have pushed boundaries and achieved significant milestones. We foster a culture of innovation, professional integrity, and continuous skills upgrading among our exceptional employees, while prioritising a safe working environment. As responsible corporate citizens, we remain committed to making a positive impact on society.

As we embark on a new fiscal year, I am confident that NCC Ltd will continue to excel and exceed expectations, fuelled by our shared vision and unwavering commitment to creating value for our stakeholders.

With utmost appreciation,

Dr. AVS Raju

Founder and Chairman Emeritus

NCC LIMITED

CORPORATE OVERVIEW

VISION

To be a world-class construction and infrastructure enterprise committed to quality, timely completion, customer satisfaction, continuous learning, and enhancement of stakeholders’ value.

MISSION

To build a strong future ensuring increased returns to shareholders and enhanced support to associates.

To adopt the latest technologies in the fields of engineering, construction, operation, and maintenance of infrastructure projects.

To encourage innovation, professional integrity, upgradation of knowledge and skills of employees, and a safe working environment.

To be a responsible corporate citizen committed to the social cause.

VALUES

Openness and trust
Integrity and reliability
Teamwork and collaboration
Commitment
Creativity

Annual Report 2022-23

MESSAGE FROM THE CHAIRMAN

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Dear Shareholders,

It is with great pleasure and a sense of pride that I address you today as the Chairman of NCC Limited. As an infrastructure construction company in India, we have remained steadfast in our commitment to building a better future for our country. Through our focus on constructing buildings, water treatment plants, roads, metro rail networks, railways, and various other projects, we have continued to create significant value for our nation and its people.

PERFORMANCE DURING FY23

During the fiscal year 2022-2023, NCC Limited demonstrated exceptional performance, achieving several milestones and overcoming various challenges. We successfully completed a range of projects across different sectors, contributing to the growth and development of our great nation. Our unwavering dedication to excellence and innovation has earned us recognition as a leading player in the infrastructure industry.

I am pleased to share that we have attained the highest-ever annual order inflow of 25,895 crores, a testament to the trust and confidence bestowed upon us by our valued clients. Furthermore, our order book has surpassed the 50,000 crores mark for the first time, solidifying our foundation for future growth. Our consolidated revenue for the year amounted to ` 15,701 crores, signifying an impressive growth of 40% over the previous year.

GOVERNMENT OF INDIA’S POLICY INITIATIVES

India’s population growth and economic development require enhanced transport infrastructure, including investments in roads, railways, aviation, shipping, and inland waterways. Under the Government of India’s policy initiatives, we are witnessing a significant focus on infrastructure development to propel the

NCC LIMITED

CORPORATE OVERVIEW

country towards its 2025 economic target of US$ 5 trillion.

The recently announced Budget for 2023-24 has permitted continuation of the 50-year interest-free loan to state governments for one more year. This measure aims to spur investment in infrastructure and incentivize complementary policy actions. The enhanced outlay of ` 1.3 lakh crore (US$ 16 billion) reemphasizes the Government’s commitment to providing the necessary resources for infrastructure development.

Furthermore, under the National Infrastructure Pipeline (NIP), projects worth ` 108 trillion (US$ 1.3 trillion) are currently at different stages of implementation. This comprehensive pipeline underscores the Government’s vision for infrastructure development and presents significant opportunities for companies like ours to contribute to the nation’s growth.

In November 2022, the National Investment and Infrastructure Fund (NIIF) was established as a collaborative investment platform between the Government of India, global investors, Multilateral Development Banks (MDBs), and domestic financial institutions. This initiative, including the India Japan Fund, facilitates investment across multiple sectors in India, fostering infrastructure development.

Under the Budget for 2023-24, the capital investment outlay for infrastructure is being increased by 33% to ` 10 lakh crore (US$ 122 billion). This substantial increase, amounting to 3.3% of GDP and almost three times the outlay in 2019-20, demonstrates the Government’s commitment to accelerating infrastructure development in the country.

To further enhance opportunities for private investment in infrastructure, including railways, roads, urban infrastructure, and power, the Budget for 2023-24 also includes the establishment of an Infrastructure Finance Secretariat. This initiative aims to create a conducive environment for private stakeholders to invest in infrastructure projects, aligning with the Government’s vision of publicprivate partnerships.

ESG INITIATIVES: BUILDING A SUSTAINABLE FUTURE

At NCC Limited, we understand the importance of Environmental, Social, and Governance (ESG) initiatives in building a sustainable future. We are committed to conducting our business in an environmentally responsible manner, adopting sustainable practices, and minimising our carbon footprint. Our initiatives include the efficient utilisation of resources, the promotion of renewable energy, waste management practices, and the implementation of green building standards. We firmly believe that sustainable development is essential for the long-term prosperity of our company and the well-being of future generations.

CONCLUDING REMARKS

I would like to express my heartfelt gratitude to all our stakeholders, including our esteemed shareholders, dedicated employees, valued customers, project partners, and the local communities where we operate. Your unwavering support and trust have been instrumental in our success, and we remain committed to upholding the highest standards of corporate governance, transparency, and ethical business practices.

In conclusion, I am proud to report that NCC Limited continues to contribute significantly to the development and growth of our great nation. Our performance during the fiscal year 20222023 reflects our unwavering commitment to excellence and our ability to adapt to changing market dynamics. With the continued support of our stakeholders and the strong foundation we have built, I am confident that we will overcome future challenges and achieve even greater milestones.

Thank you once again for your continued trust in NCC Limited. Together, we will continue to build a brighter and more prosperous future for our country.

Yours sincerely,

Hemant M Nerurkar Chairman

Annual Report 2022-23

REVIEW BY THE MANAGING DIRECTOR

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Dear Shareholders,

I am delighted to present a concise overview of NCC Ltd’s performance for the fiscal year 2023. The company has achieved remarkable milestones and demonstrated substantial growth across various key indicators. I would like to highlight the following key points:

FINANCIAL PERFORMANCE:

NCC Ltd has exhibited robust financial performance during the fiscal year. Standalone revenue reached 13,504 crores, reflecting a growth rate of nearly 35%. Consolidated revenue stood at 15,701 crores. The consolidated EPS increased to 9.77, compared to 7.91 in the previous year, indicating significant improvement. The company has delivered strong financial results and continues to prioritise enhancing profitability and efficiency.

ORDER BOOK:

NCC Ltd is well-positioned with diversified execution capabilities, evident from the highest-ever order book achieved by the company. Currently, the orders on hand are valued at 50,244 crores, with an increase of 25,895 crores in FY 2023, showcasing a growth rate of 28%. This robust order book positions the company for future growth. The company has secured substantial orders, reflecting clients’ confidence in our capabilities.

ORDER BOOK HIGHLIGHTS:

I am delighted to share notable highlights regarding NCC Ltd’s order book. One noteworthy achievement is the efficient conversion of our order book into successful execution. We have demonstrated exceptional performance in this aspect, as evidenced by a lower “book to bill ratio” of 2.98. This ratio indicates our strong execution capabilities to convert orders effectively into revenue.

NCC LIMITED

CORPORATE OVERVIEW

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG):

We have included the Business Responsibility and Sustainability Report (BRSR) as part of this report, providing a comprehensive overview of our ESG practices. This reflects our unwavering commitment to transparency, accountability, and equity. We prioritise the well-being of our stakeholders, including shareholders, employees, government partners, and society at large. Operating across diverse construction and infrastructure sectors, we strive to minimise environmental impact and uphold human rights. We express our gratitude for your continued support as we work together to build a sustainable future where everyone thrives.

GOING FORWARD/ OUTLOOK:

Ltd will focus on monetising non-core subsidiaries to generate cash flows, strengthen the balance sheet, and gradually reduce debt. The company remains committed to operational excellence and creating long-term value for shareholders.

In conclusion, NCC Ltd’s performance has been commendable during the year with significant achievements in various areas. The company’s strong order book, anticipated growth, and commitment to operational excellence position it favourably for the future. We extend our gratitude to all stakeholders, including our customers, employees, banks, investors, and government agencies for their continued patronage and support.

Sincerely,

A A V Ranga Raju Managing Director

Looking ahead, NCC Ltd is wellpositioned to capitalise on the extensive infrastructure pipeline, with continued momentum in awarding activities translating into healthy order inflows. The company expects a robust order inflow during FY 2024. The management also forecasts ~20% growth in topline and bottomline for FY 2024. NCC

Annual Report 2022-23

BOARD OF DIRECTORS

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Mr. Hemant M Nerurkar

Independent Director, Chairman

Mr. Hemant M Nerurkar, with over four decades of rich experience in the Steel and Mining Sector, including his role as Managing Director of Tata Steel Ltd., brings valuable expertise to the Board. He is on the board of several other leading companies as an Independent Director. He is also closely associated with organisations such as Indian Institute of Metals, INSDAG, MEPSC and AIMA. Mr. Nerurkar holds a B.Tech (Metallurgical) degree from Pune University.

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Mrs. Renu Challu

Independent Director, Chairperson - Stakeholders’ Relationship Committee and Nomination and Remuneration Committee

Mrs Renu Challu has nearly four decades of professional experience in commercial banking, investment banking and in the field of financial services. She has vast experience in strategy formulation, planning and in the achievement of goals in her various assignments in State Bank of India and its subsidiaries. She has served as the Managing Director of State Bank of Hyderabad, MD & CEO of SBIDFHI, President and Chief Operating Officer of SBI Capital Markets Ltd and Dy Managing Director (Corporate Strategies and New Businesses) of SBI. She also serves as an Independent Director on the Boards of Schaeffler India Ltd. and Ceinsys TechLtd.

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Dr. A.S. Durga Prasad

Independent Director, Chairman - Audit Commitee and ERM Committee

Dr. A.S. Durga Prasad, an accomplished executive with nearly four decades of rich experience in Financial Management and Cost Management across diverse sectors, brings valuable insights to the board. He is the former President of the Institute of Cost Accountants of India. He holds a PhD (in Commerce) and is a Fellow Member of the Institute of Cost Accountants of India.

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Mr. OP Jagetiya Independent Director, Chairman - ESG Committee

Mr. OP Jagetiya possesses a wealth of experience spanning over four decades having worked at senior level with reputed companies such as A.C.C. Ltd., Zuari Group, Nagarjuna Fertilizers & Chemicals Ltd., and Hyderabad Industries Ltd. He has also held leadership positions in various Industry and Trade Associations. Mr. Jagetiya holds a BE (Hons) degree and a Masters in Business Administrationfrom BITS Pilani.

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Mr. Utpal Sheth Non-executiveDirector

Mr. Utpal Sheth is a capital market veteran with over 30 years of experience across various reputed Indian financial firms. He is currently the CEO and Senior Partner at RARE Enterprises which is a multi-billion dollar proprietary asset management firm. His focus therein is on long term investing in public markets and private equity, portfolio construction and Risk Management. He engages with investee companies to enhance shareholder value by emphasizing sustainable value drivers. He is also the Founder and Mentor of TRUST Group where his focus is on strategy, institutionalization and team building.

NCC LIMITED

CORPORATE OVERVIEW

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Mr. AGK Raju Executive Director

Mr. AAV Ranga Raju Managing Director

Mr. AGK Raju has Mr. AAV Ranga Raju nearly four decades of has nearly five decades rich experience in the of rich experience fields of Construction, in Construction, Finance, Materials Infrastructure Management, Development, and allied Administration, fields. As the Managing HR, and Corporate Director of NCC he has Communications. been instrumental in His leadership has the progress achieved been integral to the by the company year company’s operational after year and in efficiency and growth. making NCC as one of Mr. AGK Raju holds the leading construction an MBA post-graduate companies in the degree from Pune country. University.

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Mr. ASN Raju Wholetime Director, Chairman - CSR Committee

Mr. ASN Raju brings valuable experience in the construction industry, showcasing commendable execution capabilities of complex projects spanning over four decades. His responsibilities include leading the Buildings and Transportation Division at NCC

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Mr. J V Ranga Raju Mr. AVN Raju Wholetime Director Wholetime Director

Mr. J V Ranga Raju, With 35 years of associated with the rich experience in Construction Industry the construction for nearly four decades industry, Mr. AVN Raju has contributed possesses extensive significantly in making knowledge and leads NCC as one of the the operations of the largest construction Electrical and Irrigation companies in India. His Divisions with utmost rich experience extends commitment and to the Hospitality and diligence. Education fields as well.

Annual Report 2022-23

HOW WE CREATE VALUE

A value creation model for NCC Ltd based on the six capitals of integrated reporting would involve considering how the company creates and utilises each capital to generate value. Here’s an outline of the value creation model for NCC Ltd using the six capitals

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FINANCIAL CAPITAL

NCC Ltd leverages its financial resources to invest in construction projects, procure necessary materials and equipment, manage cash flow, and generate revenue through project contracts and fees.

MANUFACTURED CAPITAL

NCC Ltd utilizes its manufactured capital, which includes construction machinery, equipment, and infrastructure, to execute construction projects efficiently and effectively, ensuring the successful completion of projects within the stipulated time and quality standards.

INTELLECTUAL CAPITAL

NCC Ltd’s intellectual capital encompasses the knowledge, skills, and expertise of its employees, as well as its proprietary construction techniques, project management systems, and engineering capabilities. This intellectual capital enables the company to plan and design projects effectively, optimise resource allocation, and implement innovative construction practices to enhance efficiency and quality.

VALUE CREATED HIGHLIGHTS:

Revenue ` 13504 Crore
PAT ` 569 Crore
Dividend paid ` 125.57 Crore
EPS ` 9.13/-

VALUE CREATED HIGHLIGHTS:

490 + Building Projects
20,000 + KMS. Water Pipelines
350,000 + Acres Land irrigated

VALUE CREATED HIGHLIGHTS:

Digital and IT initiatives, Unique processes, automated bid management tool for better success rate, modern Human Resource Management system.
Tax expenses ` 215.57 Crore

NCC LIMITED

CORPORATE OVERVIEW

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SOCIAL AND RELATIONSHIP CAPITAL

NCC Ltd values its relationships with various stakeholders, including clients, suppliers, contractors, and local communities. The Company actively engages with stakeholders, promotes ethical and sustainable practices, and contributes to the social and economic development of the communities it operates in. Strong relationships and a positive reputation enhance NCC Ltd’s ability to secure contracts, attract talent, and build long-term partnerships.

VALUE CREATED HIGHLIGHTS:

` 7.8 CRORE CSR outlay in FY23
MORE THAN 50,000
beneficiaries through the CSR initiatives

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NATURAL CAPITAL

NCC Ltd recognises the importance of environmental sustainability and strives to minimise its environmental impact. The company adopts eco-friendly construction practices, reduces waste generation, conserves resources, and complies with environmental regulations. By integrating sustainable practices, NCC Ltd aims to preserve natural capital and contribute to a more sustainable future.

VALUE CREATED HIGHLIGHTS:

Initiatives to conserve energy and environment
Sewage treatment plants constructed

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HUMAN CAPITAL

The human capital of NCC Ltd comprises its skilled workforce, which includes engineers, project managers, construction workers, and other professionals. The company invests in the development of its employees through training programs, knowledge sharing, and career advancement opportunities. NCC Ltd recognises that its employees’ expertise and dedication are crucial in delivering high-quality construction services.

VALUE CREATED HIGHLIGHTS:

Employees: 20611
No of Training programs: 135

Annual Report 2022-23

OUR DIVISIONS

NCC’s business divisions contribute to the growth and development of the nation. In the Buildings Division, NCC excels in constructing landmark projects in the hospitals and medical colleges (like AIIMs, Leading health care facilities), Educational institutes (like IITs, NITs), industrial and commercial spaces, providing quality housing solutions, and creating innovative IT parks, institutional buildings, sports complexes, and stadia. The Water & Environment Division focuses on water management and sanitation solutions, executing projects such as water treatment plants and underground drainage systems. The Transportation Division revolutionises roads and highways, while the Railways Division enhances railway infrastructure. In the Irrigation Division, NCC develops irrigation infrastructure. Lastly, the Mining Division plays a catalytic role in India’s mining sector supporting the power generation in the country, and the Electrical T&D Division drives electrification and power distribution projects.

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BUILDINGS
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NCC’s Building Division contributes to the growth and development of the nation by constructing diverse buildings that reflect living standards. This includes expertise in industrial, commercial, housing, IT parks, institutional, sports complexes, hospitals, airports and stadiums. NCC excels in constructing functional industrial and commercial spaces while providing quality housing solutions. We also create IT parks for innovation, institutional buildings for education, and sports complexes for community engagement. NCC’s expertise extends to building modern hospitals and promoting healthcare infrastructure. Their contributions positively impact the growth and living standards of the nation.

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TRANSPORTATION
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NCC Ltd. excels in the transportation business, understanding the pivotal role of a robust transportation network in facilitating progress. Roads/Metros/ Fly overs serve as vital arteries, ensuring accessibility to even the most remote corners of the country while generating substantial economic and social advantages. With a proven track record of reliably executing large-scale contracts under strict timelines, NCC has established itself as a trustworthy partner. Collaborating closely with the government, NCC is dedicated to revolutionising the country’s transportation network.

The company’s expertise encompasses the construction of expressways and highways, highway realignment and bypass projects, Metro Projects, carriageway widening and strengthening, development of road sections, rehabilitation, and up-gradation initiatives, as well as the construction of bridges and flyovers. By prioritising quality and actively contributing to the enhancement of transportation infrastructure, NCC plays a crucial role in fostering connectivity and driving progress within the transportation sector.

NCC LIMITED

CORPORATE OVERVIEW

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WATER & ENVIRONMENT
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NCC Ltd. has established itself as a prominent player in the water and environment business, recognising the pressing need for water management and sanitation solutions in today’s world. With a remarkable track record of successful projects, such as the gravitybased water supply system in Amaravati, Maharashtra, which earned a place in the Limca Book of Records, NCC has proven its expertise in this field. As the demand for water supply and sanitation projects continues to grow, NCC is well-positioned to meet these challenges with its extensive experience and impeccable credentials. The company specialises in executing a wide range of projects, including water treatment plants, distribution networks, river intake works, underground drainage systems, lift irrigation schemes, sewage pumping stations, and treatment plants. With a deep commitment to innovation and a focus on delivering high-value projects, NCC remains at the forefront of water and environmental solutions.

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ELECTRICAL T&D
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NCC Ltd.’s Electrical (T&D) division is at the forefront of transforming the nation through transmission and distribution projects, recognising the crucial role of electrification in driving development. With the government’s focus on ensuring universal and uninterrupted access to power, NCC’s Electrical Division has successfully undertaken extensive and demanding electrical construction projects. The division boasts a wide range of expertise, including design, engineering, erection, testing, and commissioning of EHV/HV/LV substations and transmission lines, high voltage distribution systems, and feeder separation schemes. By harnessing its strengths and capabilities, NCC contributes to various projects aimed at electrification and distribution in different utilities. Notably, the division has been involved in significant ventures such as the 765KV Transmission line in Jaipur. Through its dedicated efforts, NCC plays a pivotal role in meeting the growing demand for electricity and driving the nation’s progress in the electrical transmission and distribution sector.

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IRRIGATION
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We actively participate in the irrigation business, recognising its significance as the lifeline for farmers and the foundation for ensuring food security for the vast population. The company undertakes a wide range of projects related to irrigation infrastructure, including major, medium, and minor canals sourced from rivers, groundwater, well-based systems, tanks, and rainwater harvesting initiatives. Additionally, NCC’s expertise and resources in irrigation infrastructure development extend to sectors such as forestry, animal husbandry, horticulture, and sericulture, which heavily rely on water resources. Through its involvement in irrigation projects, NCC contributes to enhancing food security, reducing reliance on monsoons, improving agricultural and allied industrial productivity, and creating employment opportunities in rural areas. The company’s proficiency encompasses the construction of dams and reservoirs, tunnels, barrages, spillways, aqueducts, and even hydroelectric power projects, further demonstrating its commitment to sustainable and comprehensive irrigation solutions. By sowing the seeds of the future, NCC plays a pivotal role in the development and progress of the irrigation sector.

Annual Report 2022-23

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MINING
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With the aim of bolstering India’s selfreliance in mining natural resources, NCC has embraced this opportunity to play a catalytic role in the industry. The mining sector has witnessed reforms from the government, including the participation and permission for commercial mining, creating favourable conditions for investment and growth. NCC’s mining division is primarily focused on Mine Developer-cum-Operator (MDO) activities, involving the removal of overburden and extraction of coal, lignite, and other minerals from opencast mines across India. Through its mining endeavours, NCC aims to bridge the gap between the demand and supply of coal, address the increased power demand, and contribute to the overall growth and development of the mining sector in India.

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RAILWAYS
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NCC Ltd. is actively involved in the railways business, aiming to support the nation’s development and facilitate efficient transportation of people and goods. The company undertakes various projects to keep the wheels of growth in constant motion, including dedicated freight corridors, railway projects including EPC, OHE, and S & T. NCC’s expertise in this field extends to critical aspects of railway construction, such as earthworks, track lining, railway bridges, and railway electrical signalling systems. By focusing on these areas, NCC contributes to the expansion and enhancement of railway infrastructure. With a commitment to excellence and a vision for the future, NCC plays a pivotal role in connecting futuristic tracks, ensuring smooth and reliable rail transportation that drives the nation forward.

NCC LIMITED

CORPORATE OVERVIEW

ORDER INFLOW & ORDER BOOK STATUS

ORDER INFLOW FY23:
`25895 CRS
Buildings	41%
Transportation	12%
Water & Railways	16%
Electrical	20%
Mining	11%

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ORDER AS ON 31.03.2023
`50244 CRS
Buildings	46%
Transportation	12%
Water & Railways	16%
Electrical	14%
Irrigation	2%
Mining	10%

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Annual Report 2022-23

KEY PERFORMANCE INDICATORS

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TURNOVER ( ` In Crores)
2019 2020 2021 2022 2023
12198 8370 7372 10038 13504
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EBIDTA ( In Crores) PAT ( In Crores)
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
1423 1030 855 996 1343 564 382 261 490 569
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CASH PROFIT ( ` In Crores) EBIDTA (%)
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
713 560 436 672 769 11.78 12.53 11.79 10.03 10.06
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PAT (%)
2019 2020 2021 2022 2023
4.62 4.56 3.55 4.88 4.22
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GROSS BLOCK ( In Crores) DEBT EQUITY (RATIO) BOOK VALUE PER SHARE (
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
1975 2042 2173 2267 2506 0.42 0.37 0.33 0.20 0.15 78.74 83.72 87.97 95.16 100.69
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BOOK VALUE PER SHARE ( ` )

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EPS ( ` ) DIVIDEND (%)
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
9.39 6.34 4.29 8.04 9.13 75 10 40 100 110
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ORDER BOOK ( ` In Crores)
2019 2020 2021 2022 2023
35121 26572 37911 39361 50244
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Annual Report 2022-23

HUMAN CAPITAL

The human capital of NCC Ltd comprises of its skilled workforce, which includes engineers, project managers, construction workers, and other professionals. The company invests in the development of its employees through training programs, knowledge sharing, and career advancement opportunities. NCC Ltd recognises that its employees’ expertise and dedication are crucial in delivering high-quality construction services.

At NCC, we firmly believe that our company’s greatest asset extends beyond financial capital, buildings, properties, or projects. It is our people, our human capital, that truly defines our success, growth, and resilience throughout our remarkable four-decade and over journey.

A ROBUST TEAM OF QUALIFIED EXPERTS

With a staff of over 20611 highly qualified and experienced technical and commercial professionals, we transform the company’s philosophy into meticulous action. At NCC, we foster a people-first culture, providing an environment where individuals can thrive. We value competence and prioritize the freedom to work, striking a balance between dedication and enjoyment.

A FAMILY-LIKE WORKPLACE

Our humane approach when engaging with people cultivates a workplace atmosphere that feels like family, where enduring relationships are nurtured and cherished. We recognize that learning and

evolution are inherent to our DNA. We learn from one another, considering continuous learning as an integral part of our job.

LEARNING AND DEVELOPMENT INITIATIVES

Our Learning and Development (L&D) programs are tailored to support career progression, bridge skill gaps, and enhance performance and productivity. We understand that by investing in employee growth, we contribute to our own advancement as well.135 training programmes were held in 202-23.

MUTUAL GROWTH

Just as our learning programs empower professional development, it helps propel our organization forward. At NCC, we foster an environment that encourages constant growth and progress. As employees contribute expertise and commitment, we, as a company, continue to flourish.

BUILDING A STRONG FUTURE TOGETHER

In conclusion, NCC Ltd’s human capital serves as our core strength, driving our success, growth, and ability to overcome

challenges. Our exceptional team of talented professionals, coupled with our people-centric approach, creates a workplace where individuals are valued, learning is continuous, and growth is inevitable.

As we continue to expand and excel in the industry, we remain committed to nurturing our human capital, providing opportunities for development, and fostering an environment that promotes collaboration, innovation, and excellence. Together, we will build a strong and prosperous future.

NCC LIMITED

CORPORATE OVERVIEW

QUALITY MANAGEMENT SYSTEMS

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At NCC Ltd, quality management systems play a vital role in ensuring the delivery of exceptional construction projects. The company is dedicated to advocating best practices and providing education and training on quality management, benefiting both its members and the wider construction community.

NCC adheres to a policy of continual improvement, aligning its quality

objectives with the framework established by the ISO 9001-2015 standard. These objectives are designed to address both the risks and opportunities within the company, allowing for effective risk management and enhancement of operational efficiency.

To ensure ongoing effectiveness, NCC regularly monitors and maintains its quality objectives. ensuring that it

remains at the forefront of quality management practices.

Through its unwavering dedication to quality management, NCC Ltd strives to exceed expectations, foster innovation, and leave a lasting positive impact on the construction industry.

Annual Report 2022-23

DIGITAL AND IT INITIATIVES

NCC Ltd embarked on a comprehensive digitisation initiative in October 2020 to enhance its digital capabilities. This note highlights the significant benefits derived from these initiatives, which have positively impacted and will continue to impact NCC’s performance across various operational and financial aspect.

NCC LIMITED

CORPORATE OVERVIEW

NEXT-GENERATION ERP IMPLEMENTATION

The introduction of a nextgeneration Enterprise Resource Planning (ERP) system, an ongoing initiative, has played a pivotal role in streamlining NCC’s operations. This advanced ERP facilitates seamless data integration, enhances monitoring and control, and enables efficient decision-making across the organisation.

ENHANCED ANALYTICS FOR STRATEGIC INSIGHTS

NCC’s focus on enhancing its analytics capabilities has led to valuable insights and data-driven decision-making. Leveraging advanced analytics tools, the company can proactively identify trends, risks, and opportunities, contributing to better planning and performance evaluation.

IMPROVED ESTIMATION WITH MARKET-LEADING TOOLS

NCC has adopted market-leading estimation tools to achieve standardisation and improve accuracy in project estimations. This strategic move has resulted in a higher success rate..

STREAMLINED BID MANAGEMENT THROUGH AUTOMATION

The implementation of an automated bid management tool has bolstered operational efficiency in NCC’s bid management lifecycle. The streamlined process allows for better resource allocation and improved project bidding competitiveness.

MODERNISATION OF HUMAN RESOURCES MANAGEMENT

By leveraging a modern Human Resources management system, NCC has optimised its HR processes, leading to improved workforce management and employee satisfaction.

AUTOMATION OF PROCUREMENT PROCESSES

Automation of procurement processes across all lines of business has reduced manual intervention and accelerated procurement cycles, and improved supply chain management.

LEVERAGING E-AUCTION PLATFORMS FOR COMPETITIVE PRICING

NCC has adopted e-auction platforms to consolidate demand and achieve competitive pricing for materials and equipment. Additionally, integrating

online market aggregators as service providers has further optimised price discovery.

EFFECTIVE GST MANAGEMENT AND VENDOR RISK OPTIMIZATION

The implementation of a leading GST automation tool will streamline GST-related processes and improve data accuracy. This, in turn, will enable NCC to optimise vendor risk management and comply with regulatory requirements more effectively. This is in an advanced stage of implementation.

TIMELY DATA-DRIVEN DECISION-MAKING

Digitisation initiatives have enhanced data input timeliness, empowering NCC’s management to make informed decisions promptly.

PLANNING TOOLS FOR PROJECT EXCELLENCE

The utilisation of planning tools has been instrumental in managing critical projects. By standardising and implementing procedures, NCC has optimised resource utilisation and monitoring project execution more efficiently.

Annual Report 2022-23

HEALTH, SAFETY AND ENVIRONMENT (HSE)

NCC Limited believes that occupational health, safety, and environmental sustainability are not mere obligations but moral, social, and legal responsibilities. This belief is deeply ingrained in the corporate culture and demonstrated through its comprehensive Quality, Environment, Health and Safety (QEHS) Policy.

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At the heart of NCC Limited’s operations there is a robust Health, Safety, and Environment (HSE) management system. This system outlined meticulous processes and procedures to ensure that every task, from the smallest to the largest, was performed with the least possible risk and ill-health to its employees and the environment. Central to this management system is the crucial practice of hazard identification and risk assessment, which involves engaging at all levels of the organization employees. By adopting the latest innovative construction and maintenance

technologies, NCC Limited diligently planned and implemented risk mitigation measures. NCC holds Occupational Health and Safety Management Systems (ISO 45001 : 2018) and Environmental Management Systems (IS 14001 : 2015).

Recognizing the importance of knowledge and awareness, the organization provides comprehensive HSE training to all employees. Before setting foot on any project site, each employee underwent an HSE orientation program to understand the company’s safety protocols and procedures. They were equipped with the necessary

skills through skill-based trainings, pre task briefings and received regular updates on the latest safety practices. To reinforce their training, employees were given on-site practical demonstrations, ensuring they could perform their tasks safely and effectively, with minimal impact on the environment.

NCC Limited’s dedication to employee well-being extended beyond the workplace. Prior to commencing operations, all employees underwent thorough health checkups, ensuring they were fit for their assigned tasks. Subsequent health checkups were

NCC LIMITED

CORPORATE OVERVIEW

conducted based on the nature of their jobs, with medical practitioners providing recommendations for adjustments when necessary. Whether it involved changing job tasks, reducing exposure limits, or upgrading machinery, the organization prioritizes the occupational health and non-occupational health of its employees.

The company actively engages with the communities they operated in, organizing frequent health and hygiene awareness camps. These camps not only addressed occupational health concerns but also addressed common communal diseases prevalent in the area. NCC Limited understood the importance of creating a positive impact on the communities they served and made it a part of their HSE initiatives.

Complying with legal and contractual requirements is a top priority for NCC Limited, the same is committed in QHES Policy. Maintaining meticulous legal registers and ensured that all obligations were met without any deviations. This commitment to adherence showcased their sense of responsibility and accountability, earning them the trust and respect of their stakeholders.

NCC Limited’s dedication to safety also extended to their investment in HSE resources. They procure the latest safety feature machinery and provided their employees with top-of-the-line Personal Protective Equipment (PPE). Their HSE infrastructure is planned and maintained in alignment with project milestones, ensuring that safety remained uncompromised throughout the construction process.

The environmental sustainability is a key consideration, and the organization carried out impact assessments for all their operations, implementing measures

such as waste management plans, the adoption of least-polluting machinery, and even tree plantation initiatives.

In their unwavering commitment to employee welfare, NCC Limited left no stone unturned. The organization provides clean and hygienic accommodation, potable drinking water, comprehensive medical facilities, wellequipped canteens, creche facilities, safe transportation, and comfortable restrooms with clean toilets. These amenities created a supportive work environment where employees feel valued and cared for.

Motivation and enforcement played a pivotal role in NCC Limited’s HSE programs. They encouraged employees to actively participate in safety observations, issuing warnings and penalty notices when necessary. The company also implemented reward and award systems to recognize and celebrate the employees who went above and beyond in implementing HSE systems. Through these motivational measures, NCC Limited fostered a culture of safety and continuous improvement.

To ensure preparedness in emergencies, the organization conducts periodic mock drills tailored to the specific locations, terrains, and nature of their operations. By simulating emergency situations and evaluating their response capabilities, they minimized potential risks and enhanced the safety of their workforce.

The organization unwavering dedication to safety, health, environment, and employee welfare did not go unnoticed. They received numerous appreciation certificates for their outstanding implementation of HSE systems across multiple project sites. These accolades served as a testament to their

commitment and further fuelled their determination to continue prioritizing the well-being of their employees.

In conclusion, NCC Limited’s commitment to safety, health, environment, and welfare established them as a responsible and caring organization. Through their unwavering dedication, they fostered confidence and peace of mind, creating a culture of safety that not only benefited their employees but also strengthened their reputation and nation. Improves morale, and ensured their long-term success. NCC Limited stood as a shining example of how a construction company could prioritize the well-being of its workforce and contribute to the greater good of society.

Annual Report 2022-23

CORPORATE SOCIAL RESPONSIBILITY

At NCC Ltd, we firmly believe that as a responsible corporate entity, it is our duty to contribute towards the betterment of society. That’s why we have undertaken a range of Corporate Social Responsibility (CSR) activities that showcase our unwavering commitment to various social causes. From education to healthcare and rural development, our initiatives aim to create a positive impact on the community and address critical social needs. We understand the importance of education in empowering individuals and driving societal progress. Through our CSR programs, we actively support educational initiatives, including infrastructure development, and skill development programs, to ensure that every child has access to quality education. Additionally, we recognize the significance of healthcare in building a healthy and resilient society. We invest in healthcare facilities, awareness campaigns, and medical camps to provide better healthcare access to underserved communities. Moreover, we are dedicated to uplifting rural areas by implementing projects that focus on infrastructure development and livelihood generation. By engaging in these activities, we aim to bring about meaningful change and create a positive and lasting impact on the lives of individuals and communities.

EDUCATION

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Ekal Vidyalaya - Single Teacher informal school for tribals in Andhra Pradesh and Telangana.

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Students’ requirements and digital classroom for ZPHS and MPPS Schools at Kothapeta, Hyderabad.

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Upgradation of Computer Lab at Arts and Science College for Women, Andhra Mahila Sabha, Hyderabad.

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Setting up of Central Instrumentation Laboratory at University College for Women at Koti, Hyderabad

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Online education for the dropouts, partially schooled & unschooled students in secondary grades through Avileen Education Foundation

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CORPORATE OVERVIEW

HEALTHCARE

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Operational expenses of Dhaatri’s Milk Bank at Niloufer Support funding for implementing Aaryajanani Program through Hospital, Hyderabad through Sushena Health Foundation. Global Illumine.

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Eye treatment and surgery for economically weaker sections at no cost at LV Prasad Eye Institute, Hyderabad through Hyderabad Eye Research Foundation.

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Dedicated and customised delivery vehicles for transportation of cooked food through The Akshaya Patra Foundation

RURAL DEVELOPMENT

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Underground Drainage and other rural development projects in Construction of Rural Housing and Other Rural Development Tangatoor, Shankarpalli near Hyderabad. Projects in Antervedipalem, EGDT, A.P.

Annual Report 2022-23

CORPORATE INFORMATION

Padma Shri Awardee

Dr. A V S Raju, Founder & Chairman Emeritus

Board of Directors

Sri Hemant M Nerurkar Independent Director - Chairman

Smt Renu Challu Independent Director

Dr. A S Durga Prasad Independent Director

Sri O P Jagetiya Independent Director

Sri Utpal Sheth Director

Sri A A V Ranga Raju Managing Director

Sri A G K Raju Executive Director

Sri A S N Raju Wholetime Director

Sri J V Ranga Raju Wholetime Director

Sri A V N Raju Wholetime Director

Chief Financial Officer & EVP (F&A) Sri K Krishna Rao

Company Secretary & Sr. EVP (legal) Sri M V Srinivasa Murthy

Statutory Auditors

M/s. S R Batliboi & Associates LLP

Chartered Accountants The skyview 10 Survey No. 83/1, Raidurgam Hyderabad - 500 032

Registered Office

NCC House Madhapur, Hyderabad - 500 081 Tel: +91 40 23268888 Email: [email protected] www.ncclimited.com CIN: L72200TG1990PLC011146

Bankers

State Bank of India
Canara Bank
Punjab National Bank
Indian Overseas Bank
ICICI Bank
Standard Chartered Bank
IDBI Bank
Union Bank of India
IndusInd Bank
Punjab & Sind Bank
Indian Bank
Export Import Bank of India
Karnataka Bank
Yes Bank

Registrar and Share Transfer Agent

KFin Technologies Limited Selenium Building, Tower B, Plot No.31 & 32, Financial District, Nanakramguda, Hyderabad -500 032 Toll-Free No: 1800 309 4001 Email: [email protected] www: ris.kfintech.com

33[rd] Annual General Meeting Friday, 8[th] September 2023 • 3.00 PM (IST) through VC/OAVM

NCC LIMITED

STATUTORY REPORTS

BOARD’S REPORT

To the Members,

Your Directors take pleasure in presenting the 33[rd] Annual Report together with the Audited Statement of Accounts for the Financial Year ended March 31, 2023.

Standalone Financial Results

(` in crores)

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Particulars 2022-23 2021-22
Revenue from Operations 13351.32 9930.03
Other Income 152.25 108.21
Total Income 13503.57 10038.24
Profit before Interest, Depreciation, 1494.77 1104.32
Exceptional Items and Tax (PBIDT)
Less: Finance Costs 510.00 459.60
Profit before Depreciation, Exceptional 984.77 644.72
Items and Tax
Less: Depreciation and Amortisation 199.81 182.34
Expenses
Profit before exceptional item & tax 784.96 462.38
Exceptional items (Net) --- 145.64
Profit before tax 784.96 608.02
Provision for Tax (Including earlier Year 215.75 117.90
Taxation)
Profit after Tax 569.21 490.12
Other comprehensive income / (loss) (4.56) (2.82)
for the year
Total comprehensive income for 564.65 487.30
the year
Retained earnings- Opening 1669.75 1478.42
Balance
Add: Profit for the Year 569.21 490.12
Less: Transferred to General Reserve 350.00 250.00
Less: Dividend paid during the year 125.57 48.79
Retained earnings - Closing Balance 1763.39 1669.75
Paid up Capital 125.57 121.97
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Operational performance

Interest, Depreciation, Exceptional Items and Tax (PBIDT) of 1494.77 crores for the F.Y 2022-23 as against 1104.32 crores in the previous year. After deducting financial charges of 510 crores, providing a sum of 199.81 crores towards depreciation and 215.75 crores for income tax, the operations of the Company resulted in a net profit of 569.21 crores for the F.Y 2022-23 as against ` 490.12 crores in F.Y 2021-22.

Consolidated

During the year under review, the Revenue from Operations of the Company on a consolidated basis amounted to 15,553.41 crores as against 11,137.96 crores in the previous fiscal. Your Company has earned a PBIDT of 1 6 0 6 . 5 8 crores for the F.Y 2022-23 as against 1094.52 crores in the previous Financial Year. The operations resulted in a net profit attributable to the shareholders of the Company of 609.20 crores as against 482.41 crores in the previous financial year.

During the year, the Company, on consolidated basis, bagged new orders valued around 25,895 crores (including change in scope of work) and after deducting the Orders executed, the Order Book of the company as on March 31, 2023 stood at 50,244 crores.

You will be happy to note that the Company has exhibited robust financial performance during the fiscal year under review.

Dividend

Your Board takes pleasure in recommending payment of Dividend of 2.20/- (110%) per Equity Share of 2/- each as against ` 2/- per Equity Share in the previous year for the consideration and approval of the members of the Company at the forthcoming Annual General Meeting.

The dividend recommended is in accordance with the Company’s Dividend Distribution Policy. The Dividend Distribution Policy of the Company is available on the Company’s website and can be accessed at https://www.ncclimited.com/policies&codes.html

Transfer to Reserves

Out of the amount of 2113.39 crores available for appropriation your Board approved transfer of 350 crores to the Reserves and the remaining amount of ` 1763.39 crores in the retained earnings.

Management Discussion and Analysis

Standalone

Your Board takes pleasure in reporting that the Revenue from Operations of the Company for the Financial Year ended 31[st] March 2023 amounted to 13,351.32 crores as against 9930.03crores in F.Y 2021-22 and earned a Profit before

Business overview and outlook and the state of the affairs of the Company and the Industry in which it operates, is discussed in detail in the section relating to Management Discussion & Analysis which forms part of this Report.

Annual Report 2022-23

Change in nature of business

There has been no change in the nature of business carried on by the Company during the year under review.

Material Changes and Commitments affecting the financial position of the Company

There are no Material Changes and Commitments affecting the financial position of the Company which occurred between the end of the financial year to which the financial statements relate and the date of this Report.

Conversion of Warrants issued to Promoters to into Equity Shares

Pursuant to the provisions of the Companies Act, 2013, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (SEBI ICDR Regulations) and the approval accorded by the members of the Company, the Company had issued 1,80,00,000 Convertible Warrants on Preferential basis to the Promoters / Promoter Group Shareholders of the Company at a price of 59/- per warrant (including premium of 57/- per warrant) as per the applicable SEBI ICDR Regulations and upon receipt of the consideration amounting to 26.55 crores (towards 25% of the issue price) the Company had allotted partly paid warrants to the allottees on 12[th] February 2021. As per terms of the preferential issue these warrants were converted into equity shares of the Company upon receipt of the balance 75% amounting to 79.65 Crore from the allottees. The Equity Shares allotted consequent to the conversion of the Warrants are listed and traded on NSE & BSE.

Share Capital

During the financial year under review, the Issued & Paid-up Capital of the Company increased from 121.97 crores to 125.57 crores consequent to the allotment of equity shares to the Promoters. There has been no change in the Authorised Share Capital of the Company.

Particulars of Contracts or Arrangements with Related Parties

All related party transactions entered during the financial year were in the ordinary course of the business of the Company and were on an arm’s length basis. There were no materially significant related party transactions entered by the Company during the year with the Promoters, Directors, Key Managerial Personnel or other persons which may have a potential conflict with the interest of the Company.

The policy on Related Party Transactions as approved by the Audit Committee and the Board of Directors is hosted on the website of the Company and the link for the same is: https://ncclimited.com/policies&codes.html

Directors’ responsibility statement

Pursuant to the provisions of Section 134(5) of the Companies Act, 2013, your Directors to the best of their knowledge and ability confirm as under:

(a) In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;
(b) We have 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 as of 31[st] March 2023 and of the profit of the Company for the financial year ended 31[st] March 2023;
(c) We have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the said Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) The annual accounts have been prepared on a going concern basis;
(e) The Company had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and
(f) We have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Subsidiary / Joint Venture Companies:

The Company has 24 subsidiaries (including step-down subsidiaries) as on 31[st] March 2023.

As per the provisions of Section 129 of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, a separate statement containing the salient features of the financial statements of the Subsidiary Companies / Associate Companies/ Joint Venture Companies is prepared in Form AOC-1 and is attached to the Financial Statements of the Company.

In accordance with the provisions of the Companies Act, 2013 and the Rules framed thereunder, the Balance Sheet, Statement of Profit and Loss and other documents of the subsidiary companies are being made available on the website of the Company and are not attached with the Financial Statements of the Company. The Company will make available the Financial Statements of the subsidiary companies and the related information to any member of the Company who may be interested in obtaining the same.

In compliance with Section 134 of the Companies Act, 2013 read with the rules framed thereunder and the provisions of the SEBI

NCC LIMITED

STATUTORY REPORTS

(Listing Obligations and Disclosure Requirement) Regulations, 2015, as amended from time to time the Financial Statements for the F.Y 2022-23 have been prepared in compliance with the applicable Indian Accounting Standards.

Consolidated financial statements

In compliance with Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in compliance with the provisions of Section 129(3) and other applicable provisions of the Companies Act, 2013 and the Indian Accounting Standards Ind-AS 110 and other applicable Accounting Standards, your Directors have pleasure in attaching the consolidated financial statements for the financial year ended March 31, 2023, which forms part of the Annual Report.

Disclosures: Deposits

During the year, the Company has not accepted any public deposits.

Conservation of energy, technology absorption and foreign exchange earnings and outgo

A. Conservation of energy

The Company’s core activity is civil construction which is not power intensive. The Company is making every effort to conserve the usage of power wherever possible.

B. R&D and technology absorption: Not applicable
C. Foreign exchange earnings and outgo during the F.Y 2022-23
i. Foreign exchange earnings: ` 1.77 crores.
ii. Foreign exchange outgo:
- a. Towards travel: ` 0.46 crores
- b. Towards import of capital goods & material supplies: ` 87.04 crores

During the year under review no significant and material orders were passed by the regulators or courts or tribunals impacting the going concern status and the Company’s operations in future.

Particulars of loans, guarantees or investments under Section 186;

Details of Loans, Guarantees, Investments under the provisions of Section 186 of the Companies Act, 2013 read with Companies (Meetings of Board and its Powers) Rules, 2014 as of 31[st] March 2023 form part of the Notes to the financial statements provided in this Annual Report.

Directors:

In pursuance of Section 152 of the Companies Act, 2013 and the rules framed there under, Sri A S N Raju (DIN 00017416),

Whole-time Director and Sri A G K Raju (DIN 00019100), Executive Director are liable to retire by rotation, at the ensuing Annual General Meeting and being eligible have offered themselves for reappointment.

The Independent Directors have submitted the requisite declaration of independence, pursuant to Section 149(7) of the Companies Act, 2013 stating that they meet the criteria of independence as provided in sub-section (6) of Section 149 of the Companies Act, 2013 read with sub rule (1) and (2) of Rule 6 of Companies (Appointment and Qualification of Directors) Rules, 2014 as amended.

Key Managerial Personnel

As on 31[st] March 2023 Sri A A V Ranga Raju, Managing Director, Sri A G K Raju, Executive Director, Sri A S N Raju, Sri J V Ranga Raju and Sri A V N Raju, Wholetime Directors, Sri K Krishna Rao, EVP (F&A) and CFO and Sri M V Srinivasa Murthy, Company Secretary & Sr. EVP (Legal) continued as the Key Managerial Personnel of the Company in accordance with the provisions of Section 2(51) and 203 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

Policy on Directors’ Appointment and Remuneration and other details

The Company’s policy on Directors’ appointment and remuneration and other matters pursuant to Section 178(3) of the Companies Act, 2013 is hosted on the Company’s website and the web link thereto is: https://ncclimited.com/ policies&codes.html

The requisite information pursuant to Section 178(4) of the Act is given in the Corporate Governance Report which forms part of the Annual Report.

Board Evaluation

The Board of Directors has carried out an annual evaluation of its own performance, Board Committees, the Individual Directors, the Chairman of the Company, etc pursuant to the provisions of the Companies Act, 2013 read with the Rules framed thereunder and SEBI (LODR) Regulations, 2015.

The performance of the Board was evaluated by the Board after seeking inputs from all the Directors on the basis of criteria such as the board composition and structure, effectiveness of board processes, information, and functioning etc.

The performance of the Committees was evaluated by the Board after seeking inputs from the Committee Members on the basis of criteria such as the composition of committees, effectiveness of committee meetings etc.

In a separate meeting of Independent Directors, performance of the Directors, the Board as a whole, and the Chairman of

Annual Report 2022-23

the Company was evaluated, taking into account the views of executive directors and non-executive directors.

The Board and the Nomination and Remuneration Committee reviewed the performance of individual directors on the basis of criteria such as the contribution of the individual director to the Board and Committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc.

Meetings of Board of Directors

The Board Calendar is prepared and circulated in advance to the Directors. During the Financial Year under review the Board has met 6 times i.e., on April 28, 2022, May 11, 2022, August 9, 2022, September 27, 2022, November 08, 2022, and February 8, 2023. The details with respect to the Board and Committee meetings and attendance there at as required under the Secretarial Standard-1 issued by the Institute of Company Secretaries of India have been provided in the Corporate Governance Report forming part of this Annual Report.

Familiarization Programme

The details of the familiarization programme formulated for Independent Directors is hosted on the Company’s website and the web link thereto is https://ncclimited.com/independentdirectors.html.

Audit Committee

The Company has in place an Audit Committee in terms of the requirements of the Companies Act, 2013 read with the Rules made thereunder and Regulation 18 of the SEBI (LODR) Regulations, 2015. The details relating to the Audit Committee are given in the section relating to Corporate Governance forming part of the Annual Report.

Whistle Blower Policy/ Vigil Mechanism

Pursuant to Section 177 of the Companies Act, 2013 and the Rules framed there under and pursuant to the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the Company has established a mechanism through which all the stakeholders can report the suspected frauds and genuine grievances to the appropriate authority. The Whistle Blower Policy which has been approved by the Board of Directors of the Company has been hosted on the website of the Company https://ncclimited.com/policies&codes.html. During the year under review the Company has not received any complaint(s) under the said policy.

Risk Management

The Company has established Enterprise Risk Management process to manage risks with the objective of maximizing shareholders value.

The Board of Directors of the Company has formed a Risk Management Committee to implement and monitor the risk management Policy of the Company. The development and implementation of the risk management policy has been covered in the Management Discussion and Analysis, which forms part of this report.

Internal Financial Controls and their adequacy

The Company has in place adequate internal financial controls commensurate with the size, scale and complexity of its operations. The Company has policies and procedures in place for ensuring proper and efficient conduct of its business, the safeguarding of its assets, the prevention and detection of frauds, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information.

Compliance with Secretarial Standards

The Company has complied with applicable provisions of the Secretarial Standards issued by the Institute of Company Secretaries of India and approved by the Government of India under Section 118(10) of the Companies Act, 2013.

Annual Return

Pursuant to Section 92 (3) of the Companies Act, 2013 a copy of the annual return for the financial year ended 31[st] March 2023 has been placed on the website of the Company at https://ncclimited.com/AGM_EGM_Info.html.

Statutory Auditors and their report

M/s. S R Batliboi & Associates LLP Chartered Accountants (Firm Registration No.101049W/ E300004), who were appointed as Statutory Auditors of the Company for a term of five years from the conclusion of the 32[nd] Annual General Meeting till the conclusion of the 37[th] Annual General Meeting conducted the Statutory Audit for the F.Y 2022-23. The Independent Auditors’ Report(s) to the Members of the Company in respect of the Standalone and the Consolidated Financial Statements for the Financial Year ended March 31, 2023, form part of this Annual Report and do not contain any qualification(s) or adverse observations.

Secretarial Audit Report

As per the provisions of Section 204(1) of the Companies Act, 2013 and the Rules framed there under, the Company has appointed M/s. BS & Company Company Secretaries LLP, Practicing Company Secretaries to conduct Secretarial Audit of the records and documents of the Company for the Financial Year 2022-23. The Secretarial Audit Report for the Financial Year ended 31[st] March 2023 in Form MR-3 is annexed hereto and forms part of this Report - Annexure - I. The Secretarial Auditors’ Report to the Members of the Company for the Financial Year ended March 31, 2023, does not contain any qualification(s) or adverse observations.

NCC LIMITED

STATUTORY REPORTS

Cost Audit

In compliance with the provisions of Section 148 of the Companies Act, 2013 and the Rules framed thereunder and based on the recommendation of the Audit Committee, the Board of Directors of the Company at its meeting held on May 11, 2022, had appointed M/s. Vajralingam & Co., Cost Accountants (Firm Registration No.101059) as the Cost Auditors of the Company for the F.Y 2022-23 to conduct audit of the cost accounts and records maintained by the Company to the extent applicable. In terms of the provisions of Section 148(3) of the Companies Act, 2013 read with Rule 14(a)(ii) of the Companies (Audit and Auditors) Rules, 2014, the remuneration of the Cost Auditors has to be ratified by the members. Accordingly, necessary resolution is proposed at the ensuing AGM for ratification of the remuneration payable to the Cost Auditors for FY-2022-23.

Corporate Governance

Pursuant to the provisions of Chapter IV read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate section on Corporate Governance has been incorporated in the Annual Report for the information of the members of the Company. A certificate from the Secretarial Auditors of the Company regarding compliance with the conditions of Corporate Governance as stipulated under the said Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 also forms part of this Annual Report.

Business Responsibility and Sustainability Report

As stipulated under Regulation 34 of the SEBI (LODR) Regulations, 2015, Business Responsibility and Sustainability Report is attached hereto and forms part of the Annual Report.

Investor Education and Protection Fund (IEPF)

Pursuant to the applicable provisions of the Companies Act, 2013, read with the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (‘the Rules’), all unpaid or unclaimed dividend are required to be transferred by the Company to the IEPF established by the Government of India, after the completion of seven years. Further, according to the said Rules, the shares on which dividend has not been paid or claimed by the shareholders for seven consecutive years or more shall also be transferred to the demat account of the IEPF Authority. In compliance with the aforesaid provisions the Company has transferred the unclaimed dividends and corresponding shares to IEPF. The details of the unclaimed dividend during the last seven years and also the details of the unclaimed shares transferred to IEPF are given in the Report on Corporate Governance forming part of the Annual Report.

Details of any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016)

During the year, no corporate insolvency resolution process was initiated under the Insolvency and Bankruptcy Code, 2016, by the Company, before National Company Law Tribunal.

The Consortium formed amongst Maytas Infra Ltd and NCC Ltd was awarded the Road Project between Pondicherry and Tindivanam by National Highways Authority of India (NHAI) in the year 2005 on Build, Operate and Transfer (BOT) basis. The said Consortium had formed Pondicherry Tindivanam Tollway Pvt. Limited (PTTL), a Special Purpose Vehicle for execution of the said Road Project. The Company had along with other Promoters of Pondicherry Tindivanam Tollway Pvt. Limited (PTTL), among others executed the Amended and Restated Promoters’ Undertaking (Undertaking) dated 25th June 2008 in relation to the Financial Assistance extended by the Consortium of Banks to the said PTTL. The execution of the road project was completed by PTTL in December, 2011, but on account of breach of the contract on the part of National Highways Authority of India (NHAI), PTTL had sought termination of the Concession Agreement entered into with NHAI and referred the contractual disputes and raised claims against NHAI, which were initially referred to arbitration and thereafter to the Conciliation Committee of Independent Experts (CCIE) set up by NHAI.

While the disputes are sub-judice before the CCIE, Axis Bank being Lead Lenders to PTTL filed an Application u/s 7 of the IBC against the Company and illegally claimed an amount of ` 84.04 Crores alleged to be due to them under the said Undertaking and which application is pending for admission by the NCLT, Hyderabad. As no amount is due by the Company to the said Axis Bank under the said Undertaking, the Company has filed an application under section 65 of the IBC Code for dismissal of the frivolous application filed by Axis Bank and the same is subjudice before the Hon’ble NCLT.

As on the date of this report, three applications u/s 9 of the IBC Code filed by the vendors are pending before the NCLT, Hyderabad. The Company has contested the aforesaid applications as no amount is due to them.

Reporting of Frauds

There have been no instances of fraud reported by the Auditors of the Company under Section 143(12) of the Companies Act, 2013 and the Rules framed there under either to the Company or to the Central Government.

Corporate Social Responsibility

The brief outline of the Corporate Social Responsibility (CSR) Policy of the Company and the initiatives undertaken by the Company on CSR activities during the year under review are

Annual Report 2022-23

set out in Annexure-II of this Report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended. The CSR Policy is available on the website of the Company https://ncclimited.com/policies&codes.html. As per the provisions of the Companies Act, 2013 and the Rules framed thereunder during the F.Y 2022-23 the Company was required to spend an amount of ` 7.80 Crore towards CSR activities. During the F.Y 2022-23, the Company had spent the entire amount towards various CSR activities undertaken during the F.Y 2022-23 as per details given in the said Annexure-II.

Particulars of Employees

Details in respect of the remuneration paid to the employees as required under Section 197 (12) of the Companies Act, 2013, read with Rule 5(2) & (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended from time to time forms part of this report. The Annual Report and accounts are being sent to the shareholders excluding the aforesaid exhibits. Shareholders interested in obtaining this information may access the same from the Company’s website.

The ratio of the remuneration of each Director to the median employee’s remuneration and other details in terms of Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is given in Annexure–III and forms part of this Report.

Protection of Women at Workplace

The Company has formulated a policy on Prevention of Sexual Harassment of Women at Workplace in accordance with The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The Company has an Internal Complaints Committee for providing a redressal mechanism pertaining to sexual harassment of women employees at workplace. During the financial year ended 31[st] March 2023, the Company has not received any complaints pertaining to Sexual Harassment.

Acknowledgements

Your Directors place on record their sincere appreciation and thanks for the valuable cooperation and support received from the employees of the Company at all levels, Company’s Bankers, Central and State Government Authorities, Associates, JV Partners, Clients, Consultants, Sub-contractors, Suppliers and Members of the Company and look forward for the same in equal measure in the coming years.

For and on behalf of the Board

	Hemant M Nerurkar
Place: Hyderabad	Chairman
Date: May 26, 2023	(DIN: 0265887)

NCC LIMITED

STATUTORY REPORTS

ANNEXURE – I

Form No. MR-3

[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment and Remuneration of

Managerial Personnel) Rules, 2014]

SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED MARCH 31, 2023

To, The Members,

NCC Limited Hyderabad

We have conducted the Secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by NCC Limited (hereinafter referred to as the “ Company ”). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/ statutory compliances and expressing our opinion thereon.

Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other documents/records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of Secretarial audit, we hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on March 31, 2023 complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

We have examined the books, papers, minutes books, forms and returns filed, and other records maintained by the Company for the financial year ended March 31, 2023, according to the provisions of:

(i) The Companies Act, 2013 (“the Act”) and the rules made there under;
(ii) The Securities Contracts (Regulation) Act, 1956 and the rules made there under;
(iii) The Depositories Act, 1996 and the Regulations and Byelaws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment,
(v) The following Regulations prescribed under the Securities and Exchange Board of India Act, 1992:-
(a) The Securities and Exchange Board of India (Substantial

Acquisition of Shares and Takeovers) Regulations, 2011;

(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client.

We have also examined compliance with the applicable clauses of the following:

(i) Secretarial Standards issued by The Institute of Company Secretaries of India.
(ii) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time to time;

*During the period under review, the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above,.

We further report that:

The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act.

Adequate notice was given to all directors to schedule the Board meetings, agenda and detailed notes on agenda were sent in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

During the period under review, resolutions were carried through majority. As confirmed by the Management, there were no dissenting views expressed by any of the members on any business transacted at the meetings held during the period under review.

We further report that there are adequate systems and processes in the company commensurate with the size and

Annual Report 2022-23

operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

We further report that during the audit period the following are the major events:

The Company has allotted 1,80,00,000 equity shares of 2 each at a premium of 57 per share upon conversion of convertible warrants issued on preferential basis to the promoters/promoter group of the Company.

For BS & Company Company Secretaries LLP

K.V.S. Subramanyam FCS No.: 5400 Date: May 26, 2023 C P No.: 4815 Place: Hyderabad PR. No: 705/2020 UDIN: F005400E000377332

Note:

1) This report is to be read with our letter of even date which is annexed as ‘Annexure’ and forms an integral part of this report.
*2) There was one day delay in the submission of the disclosure to the stock exchanges pursuant to Regulation 23(9) of SEBI (LODR) regulations 2015

Annexure

To,

The Members,

NCC Limited

Hyderabad

Our report of even date is to be read along with this letter.

Maintenance of Secretarial records is the responsibility of the Management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit.
We have followed the audit practices and process as were appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.
We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
Wherever required, we have obtained the Management representation about the compliance of laws, rules and regulations and happening of events etc.
The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of management. Our examination was limited to the verification of procedures on test basis.
The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the Management has conducted the affairs of the Company.
We further report that, based on the information provided by the Company, its officers, authorized representatives during the conduct of the audit in our opinion adequate systems and process and control mechanism exist in the Company to monitor compliance with applicable laws
We further report that the compliance by the Company of applicable fiscal laws like Direct & Indirect tax laws, Labour Laws, General and other specific Laws as may be applicable to the Company, have not been reviewed in this audit since the same has been subject to review by the statutory financial audit and other designated professionals.

For BS & Company Company Secretaries LLP

K.V.S. Subramanyam FCS No.: 5400 C P No.: 4815 PR. No: 705/2020 UDIN: F005400E000377332

Date: May 26, 2023 Place: Hyderabad

NCC LIMITED

STATUTORY REPORTS

ANNEXURE – II

ANNUAL REPORT ON CSR ACTIVITIES FOR THE FINANCIAL YEAR 2022-23

1. Brief outline on CSR Policy of the Company:

The perception of CSR is changing from Philanthropy to Sustainability. Shared responsibility and generosity for the society have long been part of the Indian tradition. The tradition continues at NCC, where corporate social responsibility is etched in the organizational DNA. At NCC, we continuously think of ways to direct wealth from successful business endeavors towards societal development. Our responsibility doesn’t end with mere thinking. NCC commits resources and effort.

2. Composition of CSR Committee:

Sl. No.	Name of Director	Designation/ Nature of Directorship	Number of meetings of CSR Committee held during theyear	Number of meetings of CSR Committee attended during theyear
1	Sri A S N Raju	Chairman	2	2
2	Sri Hemant M Nerurkar	Member	2	2
3	Dr. A S Durga Prasad	Member	2	2
4	Sri O P Jagetiya	Member	2	2
5	Sri A G K Raju	Member	2	2

Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the Board are disclosed on the website of the company: https://ncclimited.com/social-impact-csr.html.
Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, if applicable (attach the report): Not Applicable for the current Financial Year
Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any: NIL
Average net profit of the Company as per section 135(5): ` 39020.14 Lakh
(a) Two percent of average net profit of the Company as per section 135(5): ` 780.40 Lakh.
(a) Surplus arising out of the CSR projects/ programmes or activities of the previous financial years: NIL
(b) Amount required to be set off for the financial year, if any: NIL
(c) Total CSR obligation for the financial year: (7a+7b- 7c): ` 780.40 Lakh
(a) CSR amount spent or unspent for the financial year:

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Amount Unspent (in Lakhs) Total Amount Spent Total Amount transferred to Unspent Amount transferred to any fund specified under for the Financial CSR Account as per section 135(6) Schedule VII as per second proviso to section 135(5) Year. (in Lakhs) Name of the Amount
Amount ( . Lakhs) Date of transfer Date of transfer Fund ( . Lakhs)
780.40 NA NA NA NA NA
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Annual Report 2022-23

b) Details of CSR amount spent against ongoing projects for the financial year

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(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Item Amount Mode of Implemen-
from transferred tation
Location of the Amount
the Amount to Unspent - Through Imple-
project. spent Mode of
list of Local allocated CSR menting
Name Project in the Implemen-
Sl. activi- area for the Account for Agency
of the dura- current ta tion - Di-
No. ties in (Yes/ project the project
Project. Sched- No). tion. (in financial as per Sec- rect (Yes/ CSR
ule VII to the State. District. Lakhs). Year (in Lakhs). tion 135(6) (in No). Name tration Regis-
Act. ` Lakhs). number.
Nil
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(1) (2) (3) (4) (5) (6) (7) (8)
Item
from the Amount Mode of Mode of implementation
list of Local Location of the project spent imple- - Through implementing
Sl. activi- area for the mentati agency
Name of the Project ties in on- Di-
No. (Yes/ project
Sched- rect
ule VII No) (in ` (Yes/ CSR
to the State District Lakhs) No) Name registration
Act. number
----- End of picture text -----

(1)	(2)	(3)	(4)	(5)	(5)	(6)	(7)	(8)	(8)
Sl. No.	Name of the Project	Item from the list of activi- ties in Sched- ule VII to the Act.	Local area (Yes/ No)	Location of the project		Amount spent for the project (in` Lakhs)	Mode of imple- mentati on- Di- rect (Yes/ No)	Mode of implementation - Through implementing agency
				State	District			Name	CSR registration number

1.	3rd Year Operational Expenses of Dhaatri’s Milk Bank at Niloufer Hospital	I	Y	Telangana	Hyderabad	10.66	No	Sushena Health Foundation	CSR00005664
2.	3rd Year support funds for implementing Aaryajanani Program	I	Y	Maharashtra	Nagpur	19.00	No	Global Illumine	CSR00033347
3.	Setting up of Central Instrumentation Laboratory at University College for Women at Koti	II	Y	Telangana	Hyderabad	10.22	Yes	-	-
4.	Eye treatment and surgery for economically weaker section at no cost - LV Prasad Eye Institute	I	Y	Telangana	Hyderabad	50.00	No	Hyderabad Eye Research Foundation	CSR00001703
5.	Ekal Vidyalaya - Single Teacher informal school for tribals - 30 schools each in AP & TS`22000 per School	II	N	Telangana Andhra Pradesh	Hyderabad	13.20	No	Friends of Tribals Society	CSR00001898
6.	Dedicated and customised delivery vehicles (3 in No.) for transportation of cooked food	I	Y	AP, Telangana Maharashtra	-	44.60	No	The Akshaya Patra Foundation	CSR00000286

NCC LIMITED

STATUTORY REPORTS

7	Students’ requirements (Shoes, Belt, Socks etc) and Digital classroom for ZPHS and MPPS Schools at Kothapeta, Hyderabad	II	Y	Telangana	Hyderabad	11.66	Yes	-	-
8	Upgradation of Computer Lab at Arts and Science College for Women, Andhra Mahila Sabha	II	Y	Telangana	Hyderabad	9.79	Yes	-	-
9	Underground Drainage and other rural development projects	X	N	Telangana	Tangatoor Shankerpalli	173.12	Yes	-	-
10	For promotion of education of children	II	N	Telangana	Hyderabad	9.20	No	NCC Foundation	CSR00004366
11	Maintenance expenses of the buildings and the infrastructure created at Antervedipalem.	X	N	Andhra Pradesh	Antervedipalem, E G Dist	10.00	No	NCC Foundation	CSR00004366
12	Construction of Rural Housing and other Rural Development Projects	X	N	Andhra Pradesh	Antervedipalem, E G Dist	296.87	No	NCC Foundation	CSR00004366
13	AAS Vidyalaya Education Café - Online education for the dropouts, partially schooled & unschooled students in Secondary grades.	II	N	Maharashtra	Nagpur	7.20	No	Avileen Education Foundation	CSR00000634
14	Laying of CC Road in Allur Village, Chevella Mandal	X	N	Telangana	Chevella, Ranga Reddy Dist	7.88	Yes	-	-
15	Part funding for setting up of Charitable Diagnostics Centre and Poly Clinic at Chandra Rajeswara Rao Foundation for Social Progress in Kondapur	I	Y	Telangana	Hyderabad	5.00	No	Helping Hands of Rotary Trust	CSR00004660
16	Community Centre at Aziz Nagar Village	X	N	Telangana	Aziz Nagar Village, Ranga Reddy Dist	40.00	Yes	-	-
17	Financial assistance (partial) for Enterprise PACS Tele-Radiology Solution to Tata Memorial Cancer Hospital (TMCH) for streamlining the radiology investigations, reporting and data storage	I	N	Maharashtra	Mumbai	25.00	No	Ravindra Joshi Medical Foundation	CSR00008424
	Total					743.40

Annual Report 2022-23

(d) Amount spent in Administrative Overheads: ` 37.00 Lakhs
(e) Amount spent on Impact Assessment, if applicable: Nil
(f) Total amount spent for the Financial Year (8b+8c+8d+8e): ` 780.40 Lakh
(g) Excess Amount for set off, if any: Nil

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Sl. Amount
Particular
No. (in ` Lakh)
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Sl. No.	Particular	Amount (in`Lakh)

(i)	Twopercent of average netprofit of the companyasper section 135(5)	780.40
(ii)	Total amount spent for the Financial Year	780.40
(iii)	Excess amount spent for the financialyear[(ii)-(i)]	-
(iv)	Surplus arisingout of the CSRprojects orprograms or activities of theprevious financialyears, if any	-
(v)	Amount available for set off in succeedingfinancialyears[(iii)-(iv)]	-

(a) Details of Unspent CSR amount for the preceding three financial years:

|Sl.
No.|Preceding
Financial
Year|Amount
transferred to
Unspent CSR
Account under
section 135 (6)
(in**Lakhs)**|**Amount** **spent in the** **reporting** **Financial** **Year (in**
Lakh)|Amount transferred to any fund
specified under Schedule VII as per
section 135(6), if any|Amount transferred to any fund
specified under Schedule VII as per
section 135(6), if any|Amount transferred to any fund
specified under Schedule VII as per
section 135(6), if any|Amount
remaining to
be spent in
succeeding
financial years (in
**Lakh)**| |---|---|---|---|---|---|---|---| |||||**Name of** **the Fund**|**Amount (in** crore)|Date of
transfer||
|1.|2019-20|Not Applicable|-|-|-|-|-|
|2.|2020-21|876.58|152.84|-|-|-|62.87|
|3.|2021-22|213.90|154.13|-|-|-|59.77|
||Total|1090.48|306.97|-|-|-|122.64|

(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):

(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
Sl. No.	Project ID	Name of the Project	Financial Year in which the project was com- menced	Project duration	Total amount allocated for the project (in`<br>Lakh)\|Amount<br>spent on<br>the pro-<br>ject in the<br>reporting<br>Financial<br>Year (in` Lakh)	Cumulative amount spent at the end of reporting Financial Year (in` Lakh)	Status of the project - Com- pleted / Ongoing
1	FY31.03.2021_1	Construction of Rural Housing and Skill Development Facilities at Antervedipalem	2020-21	Annual	800.00	20.69	737.22	Ongoing

NCC LIMITED

STATUTORY REPORTS

2	FY31.03.2021_2	Construction of Underground Drainage System and other infrastructure projects at Tangatur Village	2020-21	Annual	350.00	132.15	349.92	Ongoing
3.	FY31.03.2022_1	Toilets for Boys and Girls at Govt. School, Pulicharla, Nalgonda	2021-22	6 Months	35.00	30.53	34.63	Ongoing
4.	FY31.03.2022_2	Comfort Room (Toilet) facilities in Govt. Schools, Colleges and other educational institutions in UP	2021-22	Annual	183.00	123.60	123.60	Ongoing
	Total				1368.00	306.97	1245.37

In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent in the financial year:
(a) Date of creation or acquisition of the capital asset(s): 30[th] March 2023
(b) Amount of CSR spent for creation or acquisition of capital asset.: ` 219 Lakhs
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their address etc.: NCC Foundation, 41, Nagarjuna Hills, Hyderabad - 500082
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset):
- G+2 Building Consisting of 12 Flats and Infrastructure around Buildings constructed at Antharvedipalem, Sakhinetipalli Mandal, DR. Ambedhkar Konaseema District, Andhra Pradesh - 533 252
Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5): Not Applicable

For and on behalf of Corporate Social Responsibility Committee

Place: Hyderabad Date: May 26, 2023

A A V Ranga Raju Managing Director (DIN-00019161)

A S N Raju

Chairman, CSR Committee (DIN-00017416)

Annual Report 2022-23

ANNEXURE – III

Statement of particulars as per Rule 5 of Companies (Appointment and Remuneration of Managerial personnel) Rules, 2014.

(i) The ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year 2022-23:

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S. No. Name of the Director Ratio of the remuneration to the median remuneration of the employees
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S. No.	Name of the Director	Ratio of the remuneration to the median remuneration of the employees

1	Sri Hemant M Nerurkar	1.3:1
2	Smt. Renu Challu	1.7:1
3	Dr. A S Durga Prasad	1.1:1
4	Sri O P Jagetiya	1.5:1
5	Sri Utpal Sheth	0.8:1
6	Sri A A V Ranga Raju	175:1
7	Sri A G K Raju	89:1
8	Sri A S N Raju	90:1
9	Sri J V Ranga Raju	40:1
10	Sri A V N Raju	88:1

(ii) The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager in the financial year.

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

1	Sri J V Ranga Raju, Whole-time Director	30.17%(*)
2	Sri K Krishna Rao, EVP(F&A)& CFO	8.7%
3	Sri M V Srinivasa Murthy, CS & Sr.EVP(Legal)	9.1%

With due approval of the Members of the Company at the AGM held on 22nd August 2022, the remuneration of Sri J V Ranga Raju has been increased, w.e.f 1[st] April 2022. The increase in the remuneration of the other Working Directors is on account of an increase in the commission linked to the profit earned by the Company during the Financial Year 2022-23.

(iii) The percentage increase in the median remuneration of employees in the financial year 12.2%
(iv) The number of permanent employees on the rolls of Company as on 31[st] March 2023 stood at 5515 employees.
(v) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

Average percentile increase in the salaries of the employees other than the managerial personnel in the last financial year was 11.9% and there has been no increase in the managerial remuneration, except for Sri J V Ranga Raju (other than on account of Commission on Profits) during the last financial year.

(vi) The Remuneration paid to Key Managerial Personnel is as per the Remuneration Policy of the Company.

Place: Hyderabad Date: May 26, 2023

For and on behalf of the Board Hemant M Nerurkar Chairman (DIN No. 00265887)

NCC LIMITED

STATUTORY REPORTS

MANAGEMENT DISCUSSION & ANALYSIS

GLOBAL ECONOMY

The outlook for the global economy took a positive turn early in the year. Inflationary pressures began to ease, with global energy prices back at levels last seen prior to the invasion of Ukraine. In addition, base effects from the rise in energy prices following the invasion are now coming off, putting further downward pressure on inflation for the rest of this year. Prices of other commodities as well as global food prices have also eased. However, domestic inflationary pressures remain relatively elevated in several economies, in particular those with tighter labor markets.

While the outlook for inflation has improved significantly, many central banks remained cautious at the start of the year. The concern was that the bout in inflation, as a result of the reopening of economies after Covid-19 restrictions followed by a commodity shock due to the invasion of Ukraine, has been embedded in inflation expectations and therefore pricing behaviors of firms and wage expectations of employees. The worry is that inflation could remain sticky, with core inflation (which excludes items such as food and energy) stubbornly high and price rises widespread across the economy due to a relatively tight economic environment in some countries.

The pressure on global supply chains has eased significantly in recent months, while shipping costs have dropped. This should help alleviate some inflationary pressures and improve supply capacity. Global trade remains relatively weak, although we expect it to recover this year as trade flows normalize with the reopening of the Chinese economy and a recovery in global growth, while the geopolitical tensions are expected to continue and exert some pressure on trade flows over the medium term.

The labor market remains relatively tight across most countries. Despite the resilience of the labor market and the improving inflation conditions, the global economic growth is expected to be driven by the recovery of the Chinese economy and a relatively strong growth in some of the emerging markets particularly India, while the Eurozone and U.S. economies are expected to contribute less to global growth over the next two years.

INDIAN ECONOMY

India became the world’s fifth largest economy. The nominal GDP of India touched US$ 3.75 trillion mark. In real terms, the economy has grown at 7.2 per cent for the year ending March 2023. This follows a 9.1 per cent growth in the previous financial year. The rise in consumer prices has slowed considerably. The annual rate of inflation is below 6 per cent. Wholesale prices are rising at a rate below 5 per cent. The export of goods and services in 2022-23 increased by about 14 per cent to

US$ 770.18 billion compared to 2021-22 (US$ 676.53 billion). Although the high oil price this year compared to last year inflated India’s import bill and caused the merchandise trade deficit to widen, concerns over the current account deficit and its financing have ebbed as the year rolled on. Foreign exchange reserve levels are comfortable and external debt is low. India had good monsoon and the fundamentals of the Indian economy are sound as it enters its Amrit Kaal, the 25-year journey towards its centenary as a modern, independent nation.

REVIEW OF INDIAN INFRASTRUCTURE & CONSTRUCTION

Infrastructure is crucial for economic growth and development. As India strives for sustainable and inclusive progress in the next 25 years (Amrit Kaal) following its 75[th] year of Independence in 2021, infrastructure development becomes even more vital. Investments in infrastructure yield significant benefits, including job creation, enhanced global competitiveness, the attraction of Foreign Direct Investment (FDI), seamless economic integration, and improved living standards. The evolving geopolitical landscape and diversification of the global value chain present an opportunity for India to emerge as a major global force after the pandemic. To seize this opportunity, India must enhance domestic preparedness, improve competitiveness, and minimize logistics costs.

India’s share in global merchandise exports is only 1.8% (2022), emphasizing the need to sign new trade agreements and increase its global exports. However, to fully capitalize on access to global markets, India must enhance its competitiveness. In the World Economic Forum’s Global Competitiveness Index (2019), India ranked 68[th] overall and lagged in utility infrastructure (rank 103), despite performing relatively better in transport infrastructure (rank 28).

Logistic infrastructure plays a critical role in boosting a country’s overall competitiveness. India’s logistic costs as a percentage of GDP are estimated to be 14-18%, higher than the global benchmark of 8%. Efforts have been made in recent years to develop roads, railways, ports, airports, last-mile connectivity, and warehousing. Although India’s ranking in the World Bank’s Logistic Performance Index improved to 38[th] in 2023 from 44[th] in 2018, it still lags behind economies like Germany (3rd), Japan (13[th] ), the United States (17[th] ), and China (19[th] ).

The introduction of the National Logistics Policy (NLP), aimed at creating a comprehensive tech-enabled logistics infrastructure, and the PM Gati Shakti plan, focusing on integrated multimodal connectivity, will further support the logistics sector. The government has also announced initiatives like the National

Annual Report 2022-23

Infrastructure Pipeline (NIP) with a planned capital expenditure of more than 142 lakh crore between FY20-25, National Monetization Pipeline (NMP), which plans to raise about6 lakh crore through the monetization of assets, between FY22-25 and PM Gati Shakti plan to foster holistic development in the infrastructure sector. The sector wise investment in the NIP is: -

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Sector wise Capex (NIP) - FY2020-25
S.No. Sector Outlay ( ` Lakh Cr)
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Sector wise Capex(NIP) - FY2020-25	Sector wise Capex(NIP) - FY2020-25	Sector wise Capex(NIP) - FY2020-25
S.No.	Sector	Outlay (`Lakh Cr)

1	Roads	31.69
2	Energy	29.75
3	Social Infra	20.10
4	Railways	16.49
5	Irrigation	12.48
6	Water & Sanitation	9.34
7	Urban Infra	9.15
8	Industrial Infra	5.04
9	Logistics	3.67
10	Airports	1.47
11	Digital Infra	1.11
12	Agriculture	1.07
13	Ports	1.02
	Total	142.38

Source: India Investment Grid, Ministry of Commerce & Industry, GoI

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National Infrastructure Pipeline (NIP) : Planned
investment FY20-25
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----- Start of picture text -----

Sectors
31.69 29.75
20.10
16.49
12.48
Rs Lakh crore 9.34 9.15
5.04 3.67
1.47 1.11 1.07 1.02
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Source: India Investment Grid, Ministry of Commerce & Industry, GoI

The sector wise monetization of the assets as per the NMP is: -

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Sector wise Monetisation (FY22-25)
S.No. Sector Outlay (Rs Cr)
----- End of picture text -----

Sector wise Monetisation(FY22-25)	Sector wise Monetisation(FY22-25)	Sector wise Monetisation(FY22-25)
S.No.	Sector	Outlay (Rs Cr)

1	Roads	1,60,200
2	Railways	1,52,496
3	Power Transmission	45,200
4	Power Generation	39,832
5	Telecom	35,100
6	Warehousing	28,900
7	Mining	28,747
8	NG Pipelines	24,462
9	Product Pipelines	22,504
10	Aviation	20,782
11	Urban Real Estate	15,000
12	Ports	12,828
13	Stadiums	11,450
	Total	5,97,501

Source: National Monetization Pipeline, Vol-II, NITI Aayog, GoI

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National Monetisation Pipeline (NMP): FY22 -25
Sectors
Source: National Monetization Pipeline, Vol-II, NITI Aayog, GoI
The Central Government has launched several schemes, which
will give a boost to the construction sector viz.
1. Jal Jeevan Mission, to provide a Functional Household Tap
Connection (FHTC) to every rural household in the country
by FY24. The outlay for this scheme is ` 3.6 lakh crore
between FY20-24.
160,200 152,496
Rs crore 45,200 39,832 35,100 28,900 28,747 24,462 22,504 20,782 15,000 12,828 11,450
----- End of picture text -----

The Revamped Distribution Sector Scheme (RDSS) of the Government of India seeks to improve the operational efficiencies and financial sustainability of DISCOMs for

NCC LIMITED

STATUTORY REPORTS

strengthening of power supply infrastructure. The scheme will be implemented between FY22-26 with an outlay of ` 3.03 lakh crore.

The AMRUT 2.0 envisages to provide tap water connection to every household and sewerage/ septage services in 500 cities at an outlay of ` 2.99 lakh crore. The timeline for this scheme is five years (FY22-26).
The Swachh Bharat Mission - Urban 2.0 has an ambitious vision of creating Garbage Free Cities by focusing on solid waste management. The scheme will be implemented between FY22-26 with an outlay of ` 1.41 Lakh crore.
The “Parvatmala Pariyojana”, National Ropeway Development Program, was launched to improve connectivity for commuters in hilly areas and decongest urban areas where the conventional mode of transport is saturated. Under this scheme, it is planned to develop over 250 ropeway projects covering around 1,200 kms at an investment of ` 1.25 lakh crore over a period of five years.
The National Electricity Plan (Generation) has planned to add Power Generation capacity of 211.8 GW at an investment of 14.5 lakh crore between 2022-27 and add 291.8 GW at an investment of 19.06 lakh crore between 2027-32.

Improved infrastructure will also bolster the success of other government initiatives, including Make in India and the production-linked incentives (PLI) scheme, which aim to support the manufacturing sector and enhance export competitiveness.

The government has aptly identified capital expenditure as a catalyst to support the economic recovery, post the pandemic. The Centre has budgeted for a strong capex of ` 10 lakh crore in FY24, 37% higher than the revised estimate for FY23. The Centre’s capex (adjusted for defense capex) to GDP ratio is budgeted to rise to 2.7% in FY24 from 2.1% in FY23 and 1.1% in the pre-pandemic period of FY19.

The Central Government capex, with a strong multiplier effect of around 2.5 (RBI 2020), is expected to further pull in private investment over a longer period.

Trend in Centre’s Capital Expenditure

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12 3.0
2.7
10 2.5
2.1
8
1.9 2.0
6 1.4 %
1.5
4 1.2 [1.3] 1.1 [1.1]
0.9 1.0
1.0
2
0 0.5
Defence Capex Capex (Excl Defence)
Capex Excluding Defence (As % of GDP) - RHS
Rs Lakh Crore
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
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Source: CMIE & CareEdge Ratings; Note: Date for FY23 are Revise Estimates (RE) and FY24 are Budget Estimates (BE)

Table 1: Centre’s Capex Growth in Key Infrastructure Sectors

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% Share in Total Caped
CAGR (FY15-19) % CAGR (FY20-24) %
(Excluding Defence)
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	% Share in Total Caped (Excluding Defence)	CAGR (FY15-19) %	CAGR (FY20-24) %

Road Transport & Highways	36.17	42.14	39.46
Railways	27.90	15.08	37.14
Telecommunications	6.53	22.50	88.09
Housing& Urban Affairs	4.15	20.86	7.72
Energy*	2.32	-0.32	49.43
Ports, Shipping& Waterways	0.12	-11.49	42.53
Civil Avaiation	0.02	-9.07	41.92

Source: CMIE & CareEdge Ratings; *Energy includes power, petroleum & natural gas, atomic energy, new & renewable energy; Note: % share pertains to FY23 (RE)

In the Union Budget 2023-24, Important initiatives/ schemes: Infrastructure Sector:

Infrastructure Finance Secretariat is being established to enhance opportunities for private investment in infrastructure that will assist all stakeholders for more private investment in infrastructure, including railways, roads, urban infrastructure, and power.

Annual Report 2022-23

A national financial information registry will be set up to serve as the central repository of financial and ancillary information. This will facilitate efficient flow of credit, promote financial inclusion, and foster financial stability. A new legislative framework will govern this credit public infrastructure.
The Government has decided to continue the 50-year interest free loan to state governments for one more year to spur investment in infrastructure and to incentivize them for complementary policy actions, with a significantly enhanced outlay of ` 1.3 lakh crore.
An Urban Infrastructure Development Fund (UIDF) will be established through use of priority sector lending shortfall, which will be managed by the National Housing Bank, and will be used by public agencies to create urban infrastructure in Tier 2 and Tier 3 cities.
100 critical transport infrastructure projects, for last mile connectivity for ports, coal, steel, fertilizer, and food grains sectors have been identified and will be taken up on priority with investment of 75,000 crore, including 15,000 crore from private sources.
Capital outlay for Road Transport and Highways increased to ` 2.59 lakh crore in F.Y 24.
The outlay for Railways has been increased by 51% to ` 2.4 lakh crore in FY24.
The outlay for Pradhan Mantri Awas Yojana (PMAY) has been enhanced by 66% to over ` 79,000 crore and the programme has been extended to December 31, 2024, to complete the houses sanctioned till March 31, 2022.
50 additional airports, heliports, water aerodromes and advance landing grounds will be revived for improving regional air connectivity.
The Inter-state transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh will be constructed with an investment of 20,700 crore including central support of 8,300 crore.
Allocation to the Revamped Distribution Sector Scheme (RDSS) enhanced to ` 12,000 crore. Further, a leeway of 0.5% of the fiscal deficit of GSDP will be tied to power sector reforms, as an extension from last year.
The National Green Hydrogen Mission, which was launched recently, with an outlay of ` 19,700 crores, will facilitate transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports, and make the country assume technology and market leadership in this sunrise sector.

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Important Budget
S.No. Description Outlays for FY2024
( ` Cr)
----- End of picture text -----

S.No.	Description	Important Budget Outlays for FY2024 (`Cr)

1	Railways	2,40,000
2	NHAI	1,62,207
3	Road Works	1,07,713
4	Affordable Housing	79,590
5	JJM(Rural)	70,000
6	National Education Mission	38,953
7	National Health Mission	36,785
8	Metro Rail	19,518
9	AMRUT & Smart Cities	16,000
10	RDSS	12,072
11	PMKSY	10,787
12	Swachh Bharat(Gramin)	7,192
13	Swachh Bharat Mission	5,000

Source: Budget at a Glance 2023-24, Ministry of Finance, GoI

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Budget Outlays for FY2024
Scheme/ Ministry
240,000
162,207
107,713
Rs Crore 79,590 70,000 38,953 36,785
19,518 16,000 12,072 10,787 7,192 5,000
----- End of picture text -----

Source: Budget at a Glance 2023-24, Ministry of Finance, GoI

Role of State Governments

State governments play a crucial role in driving infrastructure growth in India’s economy. Their capital expenditure (capex) has a significant multiplier effect of 2 (RBI 2020) and holds immense importance in the nation’s economic development. A substantial portion of state governments’ capex is directed towards infrastructure sectors such as energy, transport, communication, and logistics.

While the allocation of state governments’ capital spending (in 19 large states) as a percentage of State Gross Domestic Product (SGDP) increased to around 2.6% in FY23 (revised estimate) from 2.3% in FY19., the actual capex for FY23 may end up being lower than anticipated. The states have faced challenges in maintaining

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STATUTORY REPORTS

their capex due to mounting revenue uncertainties and other fiscal commitments. However, to complement the efforts of the central government in promoting infrastructure development, state governments need to prioritise capital expenditure.

By prioritizing capex and actively investing in infrastructure projects, state governments can contribute significantly to India’s overall infrastructure growth. Their role becomes even more crucial in leveraging resources, implementing regional development plans, and addressing the specific infrastructure needs of their respective states. Cooperation between the central and state governments is vital for achieving the desired infrastructure targets and fostering sustainable economic development across the country.

Outlook - Opportunities and Challenges

Looking ahead, India’s infrastructure sector presents significant opportunities for growth. As India strives to become a USD 25-30 trillion economy by 2047, it will require an additional investment of USD 18-20 trillion in infrastructure over the next 25 years. Currently, a majority of infrastructure financing comes from the government and the public sector, but due to limited financial flexibility, there is a need to encourage private investment to bridge the infrastructure investment gap. Creating an enabling environment for the private sector through appropriate policy frameworks and financial sector reforms is essential. The Public-Private Partnerships (PPP) model, along with financial instruments like Viability Gap Funding (VGF) and Special Purpose Vehicles (SPVs), as well as the introduction of Infrastructure Investment Trusts (InvITs), provide avenues for private sector participation. The National Monetization Pipeline (NMP), which aims to monetize underutilized brownfield infrastructure projects, will further boost private sector involvement. Reforms in the corporate and municipal bond markets, attracting foreign investment, and improving long-term financing options will also support the infrastructure sector.

In recent times, there has been a global shift towards sustainable investments that consider Environmental, Social, and Governance (ESG) aspects. Corporations, investors, and financial institutions are increasingly focused on sustainable growth. Therefore, it is crucial for infrastructure development in India to prioritize sustainable, equitable, and green growth. However, there are challenges to address. Private players may hesitate to participate in infrastructure projects due to the substantial upfront expenditure and long gestation periods involved. To overcome this deterrent, the government needs to continue creating a favorable environment for private sector involvement. It should implement suitable policy frameworks, undertake financial sector reforms, and explore innovative funding mechanisms. By strengthening the ESG framework, ensuring sustainable practices, and promoting green infrastructure, India can attract sustainable

investments from various stakeholders, including sovereign wealth funds, pension funds, private equity players, and other financial investors. Embracing sustainable development will not only enhance the long-term viability of infrastructure projects but also contribute to India’s environmental and social goals.

OPERATIONAL PERFORMANCE of NCC LTD- Consolidated

a) Revenue from Operations: The Group reported Revenue from Operations of 15553.41 crores during the year 2022-23 as against 11137.96 crores in the previous year, resulting in an increase of 40%.
b) EBIDTA: The Group reported an EBIDTA of 1458.99 crores as against 1023.80 crores in the previous year. The increase is primarily on account of increase in Turnover during the year. There is an increase in EBIDTA margin from 9.19% to 9.38%.
c) Net profit: The Group reported Net Profit attributable to Shareholders of the Company of 609.20 crores as against 482.41 crores in the previous year resulting in a growth of 26%. The Increase is mainly due to increase in volume of operations.

OPERATIONAL AND FINANCIAL PERFORMANCE - Standalone

a. Revenue from Operations: The Company has reported a Revenue from Operations of 13351.32 crores during the year 2022-23 as against 9930.03 crores in the previous year, resulting an increase of 34%.
b. Other Income: Other income comprises of Interest on loans & advances, Interest on Bank Margin Money deposits, interest on income tax refund, Profit on Sale of Property, Plant and Equipment, Investment Property (net) and miscellaneous income. The other income of the company for the year is 152.25 crores as against 108.21 crores of previous year. The increase is mainly on account of sale of investment property.
c. Direct cost: The direct cost for the year under review works out to 83.75% of the turnover as against 83.31% last year. The increase is primarily on account of an increase in input costs and on account of changes in the mix of various divisions.
d. Overheads: Overheads comprising salaries and administrative expenses, is 827.19 crores for the year under review as against 661.70 crores in the previous year. The increase of 25% in absolute terms amounts to ` 165.49 crores over the previous year, is mainly due to increase in volume of operations. However there is a decline as a percentage of Turnover from 6.66% to 6.20%.

Annual Report 2022-23

e. Finance cost: The Finance cost during the year is increased to 510.00 crores from 459.60 crores of previous year. The increase is mainly on account of increase in utilization BGs & LCs in line with increase in volume of operations.
f. Depreciation: The Company’s depreciation for the year has increased from 182.34 crores to 199.81 crores.
g. Tax Expense: The tax expense of the company for the year 2022-23 is 215.75 crores as against 117.90 crores of previous year. The Increase is mainly due to increase in volume of operations.
h. EBIDTA: The Company has reported an EBIDTA of 1342.52 crores as against 996.11 crores in the previous year. The increase is primarily on account of increase in Turnover during the year. EBIDTA margin reported at 10.06% as against 10.03% of the previous year.
i. Net profit: The Company has reported a Net Profit of 569.21 crores as against 490.12 crores in the previous year, an increase of 65% after excluding an exceptional item of ` 145.64 crores in the previous year. The Increase is mainly due to increase in volume of operations. The Net Profit reported 4.26% against 3.47% of Privious Year (after excluding exceptional item).
j. Total Comprehensive Income: The Company has reported a total Comprehensive Income of 564.65 crores as against 487.30 crores in the previous year.
k. Dividend: The Board of Directors have recommended a dividend of 2.20/- per share (110%) for the year under review and the dividend works out to 138.13 crores as against ` 125.57 crores in the previous year.
l. Return on Equity: The Company has reported return on equity at 9.39% for the year under review as against 8.78% reported in the year 2021-22. The increase is primarily on account of increase in volume of operations.

Equity & Liabilities:

a. Net worth: The Company’s net worth increased from 5803.17 crores to 6321.90 crores. The increase of ` 518.73 crores is primarily on account of internal generation of profits and partly on account of proceeds from Issue of Shares (pursuant to conversion of share warrants).
b. Borrowings (Long-Term & Short-Term): During the year under review the borrowings decreased by 204.51 crores from 1184.08 crores to ` 979.57 crores.

Assets:

a. Property, Plant & Equipment (PPE): The Company’s PPE (gross block plus Capital WIP) increased by 238.70 crores (net) in 2022-23 from 2266.97 crores to ` 2505.67 crores. The increase in PPE is mainly for new metro projects and other building projects.
b. Investments: The investments decreased by 19.97 crores, from 894.49 crores to ` 874.52 crores during the year 2022-23. The decrease is primarily on account of receipts from one of the subsidiary Companies.
c. Inventories: The Company’s inventories stands at 1077.84 crores as against of 787.78 crores of previous year.
d. Trade Receivables (Current & Non-Current): The Company’s trade receivables increased by 452.92 crores in 2022-23 from 2492.22 crores to ` 2945.14 crores.
e. Loans (Current & Non-Current): Loans comprises of loans given to group companies and other corporates. Loans given to group companies & other corporates decreased from 407.81 crores to 371.66 crores during the year under review. Reduction is mainly on account of loan repayment by subsidiary Companies.

Cash Flow

During the year the Company reported Net cash inflows from operating activities of 873.13 crores as against 1295.98 crores, Net cash used in investing activities 132.38 crores as against 131.06 crores and Net cash used in financing activities 748.73 crores as against 1099.19 crores in the previous year.

NCC LIMITED

STATUTORY REPORTS

Key Financial Ratios

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Sl Reasons for change in the ratio by
Ratio FY 2022-23 FY 2021-22 % of Change
No more than 25%
i) Current Ratio 1.34 1.36 -2% -
ii) Debt-Equity Ratio 0.15 0.20 24% -
iii) Interest Coverage Ratio 5.44 4.84 12% -
iv) Inventory Turnover Ratio 14.31 15.11 -5% -
v) Trade Receivables Turnover Ratio 4.91 3.85 27% The increase is mainly on account of good
collections from the client in F.Y 2022-23.
vi) Operating Profit Margin (%) 10.06% 10.03% 0% -
vi) Net profit ratio 4.26% 4.94% -14% -
viii) Return on Net Worth 9.39% 8.78% 7% -
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III. Order Inflow and Order Book

During the year the Company received order inflow of 25895 crores as against 12158 crores received in previous year 2021-22. The group order book stands at ` 50244 crores as at the March 31, 2023 registering a growth of 28% over the previous year.

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Orde Book Composition
Mining, 10%
Others, 0%
Irrigation, 1%
Electrical, 14%
Buildings, 46%
Water & Env.,
16%
Transportaion, 12%
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INTERNAL CONTROL SYSTEM:

The Company has adequate system of Internal Controls to help Management review the effectiveness of the Financial and Operating Controls and assurance about adherence to Company’s laid down Systems and Procedures. As per the provisions of the Companies Act, 2013, Internal Controls and documentation are in place for all activities. Both Internal Auditors and Statutory Auditors have verified the Internal Financial Controls (IFC) at entity level and operations level and satisfied about control design and operating effectiveness. The evaluation included

documentation review, inquiry, inspection , testing and other procedures. The controls are reviewed at regular intervals to ensure that transactions are properly authorized, correctly reported and assets are safeguarded. The Audit Committee periodically reviews the findings and recommendations of the Auditors and takes corrective action as deemed necessary. The Company is undergoing a digital transformation to further strengthen the internal control mechanism to commensurate with the Company’s growth.

RISKS AND CONCERNS:

The Company has an integrated and structured Enterprise Risk Management process to manage risks with ultimate objective of maximizing stakeholders’ value.

The risk management system at the Company has the following key features:

Risk Management Committee review
Appropriate policies, procedures and limits
Comprehensive and timely identification, measurement, mitigation, controlling, monitoring and reporting of risks
Appropriate Management Information Systems (MIS) at the business level
Comprehensive internal controls as required for business operations and governing laws and regulations

Some of the key risks that the Company faces along with their mitigation strategies adopted are listed below:

Political Risks: The Company has operations in multiple locations in multiple states and is consequently subject to various geopolitical risks. Appropriate mitigation strategies are in place to address the same.

Annual Report 2022-23

Competition Risks: There has been an increase in the number of operators in the niche segment that the Company functions in. However, the Company’s competitive advantage is derived from experienced workforce, strong track record, technical expertise, financial strength, brand equity and regular engagement with Clients and representatives.

Operational Risks: To suit the project requirements, due care is exercised in the selection of sub-contractors, vendors, key technical and non-technical employees, insurance coverages, financial tie-ups, timely obtaining of Right of Way, designs and drawings etc. Identification of associated risks and initiation of mitigation measures are helping the Company to address the operational risks.

Market Risks: Securing orders is always a big challenge for Construction Companies and the same depends upon availability of orders in various States and various Departments. In order to mitigate the market risks and to ensure continuous order booking, the Company is operating multi-divisions such as Buildings & Housing, Transportation, Water, Railways, Electrical, Irrigation and Mining. The Company strategically participates in bids using its multi-divisional experiences.

Working Capital Risks: Project delays, cost overruns and consequent delays in receipt of payments from the Clients lead to an increase in working capital requirement. There is a process of close monitoring and follow-up with the Clients for the timely approvals and payments for better working capital management.

Contract & Claims: In the competitive environment, to address the foreseeable litigations and claims, the Company maintains a robust documentation and follow up mechanism with Clients, subcontractors and vendors to address the related claims, disputes etc. To mitigate the possible risks due to the differences and disputes with the Clients, sub-contractors and vendors, the Company has an exclusive Contracts & Claims Department.

Cyber security Risks: With increasing use of IT in business areas and as systems get interconnected, cyber security becomes an important challenge for the organization in order to protect its information and systems so as to maintain confidentiality, data integrity and to prevent loss of data. The Company has implemented a cyber-security framework to identify, detect and prevent such risks. The Company has been focusing on systematic communication of possible cyber risks and the remedial measures to be followed through awareness programs for all the employees concerned.

Human Resources

At NCC, the biggest asset is our employees. We have always aspired to be an organisation and a workplace committed to helping its people gain varied experiences, accomplish challenging

assignments, learn continuously and build their careers while delivering for stakeholders. Our philosophy of building leaders from within continues to guide our actions towards identifying, developing, and nurturing talent. With greater emphasis on futuristic thinking, digital mindset and commitment to nation building, we have made significant shifts towards developing our people for the future. The Company provides an environment that helps individuals to showcase their talents and rewards performance and results. This challenging workplace has helped NCC attract, develop, and retain talent, and we have done this successfully for over four decades.

The total human capital base of the company as of 31[st] March 2023 stood at 20611 (employees and workers both permanent and non-permanent) consisting a mix of people from diverse backgrounds, educational qualifications and a wealth of experience from across the Industry.

Learning & Development

The L&D interventions at NCC are geared towards providing employees a platform for continuous learning opportunities, motivate people to seize learning opportunities, and focus on helping people identify and develop new and needed skills. L&D offers a variety of programs on personal effectiveness, digital capability, functional, technical, Environmental, Health, Safety and a wide range of Supervisory and leadership development programs. Our comprehensive learning model combining faceto-face, on-the- job-training, workshops, case studies, classroom sessions and online learning modules where employees are provided opportunities for self-learning through a digital interface, which hosts a variety of content. During the Financial Year 2022-23, a total of 135 training programs were organised at Various project sites, HO and external venues.

Employee Engagement:

We believe that our employees are partners in our progress. The structure of our working lives encourages innovation, knowledge sharing and collaboration for long-term success. Our core values: Openness and Trust; Integrity and Reliability; Teamwork and Collaboration; Commitment; Creativity are our guiding principle and defines our identity.

Our employees are encouraged to share ideas, work together, and understand that it is the collective strength of a team that makes us successful.

The well-being of the employees at all project locations is a central concern. NCC Limited has always focused on various employee engagement initiatives for the benefit of employees and their families.

NCC LIMITED

STATUTORY REPORTS

REPORT ON CORPORATE GOVERNANCE

In compliance with Chapter IV read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (‘Listing Regulations’) the Company sets forth the report on the Corporate Governance on the matters as mentioned in the said schedule and practices followed by the Company.

1. Company’s philosophy on the Code of Governance

The Company aims at maintaining, transparency, accountability, and equity in all facets of its operations on a continuous basis and in all interactions with the Stakeholders, including the Shareholders, Employees, Government, Lenders, and other constituents while fulfilling the role of a responsible corporate representative committed to good corporate practices. The Company is committed to maintain the high standards of Corporate Governance on a continuous basis by laying emphasis on Ethical Corporate Citizenship and establishment of transparent Corporate Cultures which aim at true Corporate Governance. The Corporate Governance process and systems have been gradually strengthened over the years.

The Company believes that all its operations and actions must result in enhancing the overall shareholder value in terms of maximization of shareholder’s benefits, among others, over a sustained period of time. NCC Limited is committed to conduct its business in ethical manner there by attaining highest level of all its stakeholders’ confidence and satisfaction.

2. Board of Directors

As on March 31, 2023, the Company’s Board of Directors comprised of a judicious mix of Ten Directors consisting of Five Executive Directors, One Non-Executive Director and Four Independent Directors one among them is a Woman Director as stipulated under the Companies Act, 2013 and the Listing Regulations. The following table explains the composition of the Company’s Board, category, number of Board Meetings held during the year, attendance of each Director at the Board Meeting and at the last Annual General Meeting, other Directorships, Memberships and Chairmanships of Committees held by each of the Director during the Financial Year. The Company is compliant with all the Listing Regulations and the provisions of the Companies Act, 2013 and the rules made thereunder relating to appointment of Directors.

Composition of the Board of Directors as on March 31, 2023

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Number of
Number Attendance Number of committee positions
Name of the of Board at the last other Director held in other public Directorships in other Listed
Director Category Meetings AGM held Ship(s) as on companies (##) Companies & Category of
on August Directorship
attended 22, 2022 31-03- 2023 (#) Membership(s) /
Chairman
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Name of the Director	Category	Number of Board Meetings attended	Attendance at the last AGM held on August 22, 2022	Number of other Director Ship(s) as on 31-03- 2023 (#)	Number of committee positions held in other public companies (##)	Directorships in other Listed Companies & Category of Directorship
					Membership(s) / Chairman

Sri Hemant M Nerurkar (Chairman)	Non- Executive and Independent	6	Yes	10	7 (including 3 as Chairman)	1. Igarashi Motors India Ltd – Non- Executive & Non Independent Director 2. Adani Enterprises Ltd – Non- Executive & Independent Director 3. Crompton Greaves Consumer Electricals Ltd - Non-Executive & Independent Director -Chairperson 4. Raghav Productivity Enhancers Limited 5. DFM Foods Limited – Non- Executive & Independent Director –Chairperson delisted w.e.f. 05-04-2023.

Annual Report 2022-23

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Name of the Director	Category	Number of Board Meetings attended	Attendance at the last AGM held on August 22, 2022	Number of other Director Ship(s) as on 31-03- 2023 (#)	Number of committee positions held in other public companies (##)	Directorships in other Listed Companies & Category of Directorship
					Membership(s) / Chairman

Dr. A S Durga Prasad	Non- Executive and Independent	6	Yes	4	2	Nil
Smt Renu Challu	Non- Executive and Independent	6	No	2	3 (including 2 as Chairperson)	1. Schaeffler India Ltd - Non- Executive & Independent Director 2. Ceinsys Tech Ltd - Non-Executive & Independent Director
Sri O P Jageitya	Non- Executive and Independent	6	Yes	1	Nil	Nil
Sri Utpal Sheth	Non-Executive and non- Independent	6	No	15	2	1. Aptech Ltd - Non-Executive & Non - Independent Director 2. Star Health Allied Insurance Company Ltd-Nominee Director 3. Kabra Extrusion Technik Ltd- Independent Director 4. Metro Brands Limited
Sri A A V Ranga Raju (Managing Director)	Promoter and Executive	6	Yes	1	Nil	Nil
Sri A G K Raju (Executive Director)	Promoter and Executive	6	Yes	1	1	Nil
Sri A S N Raju (Wholetime Director	Promoter and Executive	6	Yes	Nil	Nil	Nil
Sri J V Ranga Raju (Wholetime Director	Promoter and Executive	5	Yes	Nil	Nil	Nil
Sri A V N Raju (Wholetime Director	Promoter and Executive	5	Yes	1	Nil	Nil

(#) The Directorships held by the Directors as mentioned above, do not include directorships in foreign companies and Companies under Section 8 of the Companies Act, 2013

(##) Represents Membership / Chairmanship in Audit Committee and Stakeholders Relationship Committee of other public limited companies.

NCC LIMITED

STATUTORY REPORTS

Notes:

The Company convened minimum of one Board Meeting in each quarter as required under the Companies Act, 2013 and Listing Regulations as amended, and the Company ensured maximum gap between two Board Meetings has not exceeded One Hundred and Twenty Days.

The Board confirms that, based on the disclosures received from all the independent directors and also in its opinion, the independent directors fulfil the conditions specified in the Companies Act, 2013, the Listing Regulations and are independent of the management.

Shares held by Non-Executive / Independent Directors as on March 31, 2023.

Name of the Director	No. of Shares held	% onpaid-up Capital of the Company
Dr. A S Durga Prasad	300	Negligible

Board Meetings held during the FY2022-23:

During the Financial Year - 2022-23, the Board met six times, and dates of the Board meetings and attendance at the meetings are as follows:

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

1	April 28, 2022	10	10
2	May11, 2022	10	10
3	August 9, 2022	10	10
4	September 27, 2022	10	10
5	November 8, 2022	10	08
6	February8, 2023	10	10

Familiarization Programme

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

Inter-se relationship between Directors:

The Promoter Directors namely Sri A A V Ranga Raju, Sri A S N Raju, Sri A G K Raju, and Sri A V N Raju, are related to each other in terms of the definition of “Relative” under Section 2(77) of the Companies Act, 2013 and Rules framed there under. The aforementioned Promoter Directors are not related to the other Board members, except as stated there is no inter-se relationship existing between the Directors of the Company.

Information supplied to the Board

As a policy measure, all the major decisions which involve new investments and capital expenditure, in addition to the matters which statutorily require Board approval, including the information under Regulation 17(7) Part A of Schedule II of the Listing Regulations are put up for consideration of the Board or the Committee(s) of the Board.

Code of Conduct

The Board of Directors of the Company laid a Code of Conduct for Directors and senior management personnel. The Code of Conduct is posted on the Company’s website https://www.ncclimited.com/policies&codes.html. All Directors and designated personnel in the senior management affirmed compliance with the Code for the year under review. The declaration to this effect, signed by Sri A A V Ranga Raju, Managing Director, is annexed to this report.

Annual Report 2022-23

Core Skills / Expertise / Competencies available with the Board.

The Board comprises of qualified members who possess required skills, expertise and competencies that allow them to make effective contributions to the Board and its Committees. The following skills/ expertise / competencies have been identified for the effective functioning of the Company and are currently available with the Board.

Leadership, Operational experience, Business Strategy, Management and Governance, Accounts & Finance, Project Planning and Management and relevant industry experience.

Matrix of Board Expertise:

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Name of the Director Skills / Expertise / Competencies
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Name of the Director	Skills/ Expertise/ Competencies

Sri Hemant M Nerurkar	Leadership, Operational experience, Business Strategy, Management and Governance.
Dr. A S Durga Prasad	Business Strategy, Operational experience, Management and Governance, Accounting& Finance.
Smt. Renu Challu	Business Strategy, Operational experience, Management and Governance, Finance
Sri O P Jagetiya	Leadership, Operational experience, Management and Governance.
Sri Utpal Sheth	Business Strategy, Operational experience, Management and Governance, Accounting& Finance.
Sri A A V Ranga Raju	Leadership, Operational experience, Business Strategy, Management & Governance, Project Planning and Management and relevant industryexperience.
Sri A G K Raju	Leadership, Operational experience, Business Strategy, Finance and relevant industryexperience.
Sri A S N Raju	Leadership, Operational experience Business Strategy, Project Planning and Management and relevant industryexperience.
Sri J V Ranga Raju	Leadership, Operational experience, Business Strategy, Project Planning and Management and relevant industryexperience.
Sri A V N Raju	Leadership, Operational experience, Business Strategy, Project Planning and Management and relevant industryexperience.

Board Committees

The details regarding various Committees of the Board of the Company as on 31st March 2023 is given below:

3. Audit Committee of the Board

The Audit Committee presently comprises of five Directors. The members of the Committee are financially literate and bring in expertise in the fields of Accounting & Finance, Strategy, Banking, Engineering and Management. Dr. A S Durga Prasad, Independent Director, a Fellow Member of the Institute of the Cost Accountants of India is the Chairman of the Committee.

The Audit Committee met six times during the Financial Year i.e. on April 28, 2022, May 11, 2022, August 8, 2022, November 7, 2022, February 7, 2023 and March 24, 2023. The Company is in compliance with the requirements of Listing Regulations and the Companies Act, 2013 in terms of time gap between any two Audit Committee Meetings.

The composition of the Audit Committee as on March 31, 2023, and details of attendance for the Meetings of the Audit Committees are as under.

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Name of the Director Designation No. of meetings held No. of meetings attended
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Name of the Director	Designation	No. of meetings held	No. of meetings attended

Dr. A S Durga Prasad	Chairman	6	6
Sri. Hemant M Nerurkar	Member	6	6
Smt. Renu Challu	Member	6	6
Sri O P Jagetiya	Member	6	6
Sri A G K Raju	Member	6	6

NCC LIMITED

STATUTORY REPORTS

Terms of reference of the Audit Committee

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

Annual Report 2022-23

4. Nomination and Remuneration Committee

The Committee comprises of four Non-Executive Directors, of which three are Independent Directors. The Committee met three times i.e., on May 11, 2022, November 07, 2022, and February 07, 2023. Details of composition of the Committee and meetings held / attended are given hereunder:

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Name of the Director Designation No. of meetings held No. of meetings attended
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Name of the Director	Designation	No. of meetings held	No. of meetings attended

Smt Renu Challu	Chairperson	3	3
Sri Hemant M Nerurkar	Member	3	3
Dr. A S Durga Prasad	Member	3	3
Sri Utpal Sheth	Member	3	3

Terms of reference

a. The Nomination and Remuneration Committee shall evaluate the balance of skills, knowledge and experience on the Board and on the basis of such evaluation, prepare a description of the role and capabilities required of an independent director. The person recommended to the Board for appointment as an independent director shall have the capabilities identified in such description.
b. Formulation of criteria for evaluation of performance of Independent Directors and the Board of Directors and various Committees of the Board.
c. Devising policy on diversity of Board of Directors.
d. Identifying persons who are qualified to become Directors and who may be appointed in senior management in accordance with the criteria laid down, and recommend to the Board of Directors their appointment and removal.
e. Whether to extend or continue the term of appointment of the Independent Director, on the basis of the report of performance evaluation of Independent Directors.
f. Recommend to the board, all remuneration, in whatever form, payable to senior management.

5. Stakeholders Relationship Committee:

The Committee primarily focuses on Shareholder grievances, inter-alia, redressal of Investor complaints, attending Investor requests, and overseeing and review all matters connected with servicing of investors. The Committee oversees the performance of the Registrar and Transfer Agents and recommends measures for overall quality improvement of investor services. The Chairperson of the Committee is Smt. Renu Challu, Independent Director and the Company Secretary is the Secretary of the Committee. Sri M V Srinivasa Murthy, Company Secretary and Sr.EVP (Legal) is the Compliance Officer of the Company.

The Committee met twice during the Financial Year i.e. on May 11, 2022, and February 07, 2023.

Composition and attendance of Members at the Stakeholders Relationship Committee Meetings held during the year are as follows.

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Name of the Director Designation No. of meetings held No. of meetings attended
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Name of the Director	Designation	No. of meetings held	No. of meetings attended

Smt Renu Challu	Chairperson	2	2
Dr. A S Durga Prasad	Member	2	2
Sri O P Jagetiya	Member	2	2
Sri A G K Raju	Member	2	2

During the Financial Year 2022-23, the Company has received 2 (two) complaints/ requests from the shareholders/investors. All the requests were promptly attended to and there were no un-resolved shareholder requests pending as on March 31, 2023. The Company has processed and approved all valid requests received for transfer and dematerialization of Shares and there were no pending requests as on March 31, 2023. The Company has designated a separate email id [email protected] for investor grievances.

NCC LIMITED

STATUTORY REPORTS

5A. Risk Management Committee

The Board has constituted the Enterprise Risk Management Committee in line with the provisions of Regulation 21 of the Listing Regulations. The Committee met seven times during the year on August 02, 2022, November 07, 2022, November 21, 2022, December 20, 2022, February 04, 2023, February 15, 2023, and March 09, 2023.

The role of the committee is:

(1) To formulate a detailed risk management policy which shall include:
(a) A framework for identification of internal and external risks specifically faced by the Company, in particular including financial, operational, sectoral, sustainability (particularly, ESG related risks), information, cyber security risks or any other risk as may be determined by the Committee.
(b) Measures for risk mitigation including systems and processes for internal control of identified risks.
(c) Business continuity plan.
(2) To ensure that appropriate methodology, processes and systems are in place to monitor and evaluate risks associated with the business of the Company;
(3) To monitor and oversee implementation of the risk management policy, including evaluating the adequacy of risk management systems;
(4) To periodically review the risk management policy, at least once in two years, including by considering the changing industry dynamics and evolving complexity;
(5) To keep the Board of Directors informed about the nature and content of its discussions, recommendations and actions to be taken;
(6) The appointment, removal and terms of remuneration of the Chief Risk Officer (if any) shall be subject to review by the Risk Management Committee.
Composition and attendance of Members at the Enterprise Risk Management Committee Meetings held during the year are as follows.

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Name of the Director Designation No. of meetings held No. of meetings attended
----- End of picture text -----

Name of the Director	Designation	No. of meetings held	No. of meetings attended

Dr. A S Durga Prasad	Chairperson	7	7
Sri O P Jagetiya	Member	7	7
Sri A A V Ranga Raju	Member	7	7
Sri K Krishna Rao-EVP(F&A)	Member	7	7

6. Details of remuneration/ sitting fee paid to the Directors for the year

The details of remuneration covering salary and other benefits paid/payable for the year ended March 31, 2023, to the Managing Director, Executive Director and the Whole Time Directors of the Company are as follows-

(Amount in ` )

Name & Designation	Salary	Other benefits	Bonus / Excreta	Pension	Commission	Total
Sri. A A V Ranga Raju ManagingDirector	1,63,20,000	22,19,033	14,40,000	NIL	7,29,20,000	9,28,99,033
Sri. A G K Raju Executive Director	81,60,000	21,91,843	7,20,000	NIL	3,64,60,000	4,75,31,843
Sri. A S N Raju Wholetime Director	81,60,000	24,33,349	7,20,000	NIL	3,64,60,000	4,77,73,349
Sri. J V Ranga Raju Wholetime Director	1,89,72,000	13,08,000	16,74,000	NIL	-	2,19,54,000
Sri. A V N Raju Wholetime Director	81,60,000	16,18,780	7,20,000	NIL	3,64,60,000	4,69,58,780

Annual Report 2022-23

Besides the above remuneration, the Managing Director, Executive Director and the Whole Time Directors are also eligible for gratuity and encashment of leave at the end of their respective tenures as per the rules of the Company.

The details of sitting Fee and commission paid / payable to the Non-Executive Directors (including Independent Directors) for the Financial Year 2022-23 is detailed below:

(Amount in `)

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Sl Name of the Director Sitting Fees Commission Total
----- End of picture text -----

Sl	Name of the Director	Sitting Fees	Commission	Total

1	Sri. Hemant M Nerurkar	7,00,000	20,00,000	27,00,000
2	Dr. A S Durga Prasad	9,25,000	20,00,000	29,25,000
3	Smt. Renu Challu	6,00,000	15,00,000	21,00,000
4	Sri O P Jagetiya	7,75,000	15,00,000	22,75,000
5	Sri. Utpal Sheth	4,25,000	-	4,25,000

Remuneration being paid to Directors is in compliance with the Remuneration Policy approved by the Board of Directors and the approval accorded by the Members of the Company.

Board Level Performance Evaluation

Pursuant to provisions of the Companies Act, 2013 and the Listing Regulations, annual performance evaluation of the Directors including Chairperson, Board and its Committees viz., the Audit Committee, Nomination and Remuneration Committee, and Stakeholders Relationship Committee has been carried out. The Performance evaluation of Independent Directors was carried out by the entire Board of Directors without participation of the directors who are subject to the evaluation. The Nomination and Remuneration Committee reviews the said Performance Evaluation on annual basis.

Separate Meeting of Independent Directors:

Pursuant to the provisions of the Companies Act, 2013 read with the rules made there under and Secretarial Standard-I issued by the Institute of Company Secretaries of India and the Listing Regulations, a meeting of the Independent Directors of the Company for the Financial Year 2022-23 was held on February 7, 2023.

7. General Body Meetings

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

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AGM
Year Location Special Resolutions passed
Date & Time
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Year	Location	AGM Date & Time	Special Resolutions passed

2020	Held through Video Conferencing	Friday 25, September 2020 at 3.00p.m.	1) Re-appointment of Dr. A S Durga Prasad (DIN.00911306) as an Independent Director.
2021	Held through Video Conferencing	Friday 27, August 2021 at 3.00p.m.	1) Re-appointment of Sr A V N Raju (DIN-00018965) as a Wholetime Director of the Companyand Remunerationpayable to him.
2022	Held through Video Conferencing	Monday 22, August 2022 at 3.00 p.m.	1) Re-appointment of Sr A A V Ranga Raju (DIN 00019161) as the Managing Director of the Company and Remuneration payable to him. 2) Re-appointment of Sri A G K Raju (DIN 00019100) as the Executive Director of the Company and Remuneration payable to him. 3) Re-appointment of Sri J V Ranga Raju(DIN 00020547) as a Wholetime Director of the Companyand Remunerationpayable to him.

Postal Ballot

During the year no resolution was passed through Postal Ballot, under the provisions of the Companies Act, 2013. Currently, there is no proposal to pass any resolution through Postal Ballot.

NCC LIMITED

STATUTORY REPORTS

8. Means of Communication

The Company was having 287451 shareholders as on March 31, 2023. The main channel of communication with the shareholders is through the annual report which inter alia includes the statement of Chairman Emeritus, the Board’s Report, Business Responsibility and Sustainability Reporting, Report on Corporate Governance, Management Discussion and Analysis Report, the Standalone and Consolidated Financial Statements alongwith the Auditor’s Report thereon, the Secretarial Audit Report and Shareholders Information etc. The Company’s Annual Report is also available in downloadable form on the Company’s website and can be accessed at https://www.ncclimited.com/annualreport.html.

The Annual General Meeting (AGM) is the principal forum for interaction with the Shareholders, where the Board answers queries raised by the Shareholders. The Board acknowledges its responsibility towards its Shareholders and encourages open and active dialogue with all its Members and Stakeholders.

Regular communication with shareholders ensures that the Company’s strategy is being clearly understood. Details relating to quarterly performance and financial results are disseminated to the shareholders through press releases and are also uploaded on the Company’ website.

Quarterly results

The Quarterly Results of the Company are published in newspapers such as Business Line / Eenadu / Andhra Jyothi along with the official press releases and are also hosted on the Company’s website.

News releases, and presentations, among others:

Official news releases and official media releases are sent to Stock Exchanges and are uploded on the Company’s website (www.ncclimited.com).

Presentations to institutional Investors / Analysts:

Detailed presentations are made to institutional investors and financial analysts on the Company’s quarterly, half-yearly as well as annual financial results. These presentations and schedule of analyst or institutional investors meet are also hosted on the Company’s website and can be accessed at https://ncclimited. com/analyst-column.html as well as sent to the Stock Exchanges. No unpublished price-sensitive information is discussed in meetings/presentations with institutional investors and financial analysts.

Website:

The Company’s website (www.ncclimited.com) contains a separate section i.e. Investor Relations where shareholder’s information is available.

Reminder Letters to Investors

Reminder Letter dated 15th June 2022 addressed to the Shareholders who have not encashed their Dividend for a continuous period of Seven Years intimating them that their shares are liable to be transferred to the Demat Account of IEPF Authority.
As per SEBI Circular dated 3rd November 2021, the Company sent a reminder to the physical shareholders on 8th March 2023 requesting them to update their KYC details.
As per SEBI Circular dated 16th March 2023, the Company sent one more reminder to the physical shareholders on 18th May 2023 requesting them to update their KYC details.

NSE Electronic Application Processing System (NEAPS):

The NEAPS is a web-based application designed by NSE for corporates. All periodical compliance filing like shareholding pattern, corporate governance report, media releases, statement of investor complaints, among others are also filed electronically on NEAPS.

BSE corporate Compliance & Listing Centre (“Listing

Centre”):

BSE’s Listing Centre is a web-based application designed for corporates. All periodical compliance filings like shareholding pattern, corporate governance report, media releases, statement of investor complaints, among others are also filed electronically on the Listing Centre.

SEBI Complaints Redress System (SCORES):

The Investor complaints are processed in a centralized web-based complaints redress system. The salient features of this system are: centralized database of all complaints, online upload of Action Taken Reports (ATR) by concerned companies and online viewing by investors of actions taken on the complaint and its current status.

9. General shareholders’ information

(a) Day, date, and time of the 33rd Annual General Meeting

33[rd] Annual General Meeting of the Members of the Company is scheduled to be held on Friday, 8[th] September 2023 at 3.00 p.m. through Video Conferencing (VC) or through other Audio-Visual Means (OAVM) as permitted by the Ministry of Corporate Affairs vide its Circulars dated 5[th] May 2020 and 28[th] December 2022.

Annual Report 2022-23

(b) Financial Calendar (tentative) for the Financial Year 2023-24.

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Quarter ending Financial Results Release date Trading window closure
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Quarter ending	Financial Results Release date	Trading window closure

June 30, 2023	August 10, 2023	July01, 2023, to August 12, 2023
September 30, 2023	November 9, 2023	October 01, 2023, to November 11, 2023
December 31, 2023	February8, 2024	January01, 2024, to February10, 2024
March 31, 2024	May15, 2024	April 01, 2024, to May17, 2024

(c) Record Date: 25[th] August 2023 for payment of dividend.
(d) Dividend payment date: (subject to the approval of shareholders at the AGM) before 30[th] September 2023.
(e) The Company’s Equity Shares are listed on BSE Limited and the National Stock Exchange of India Limited.

BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai- 400 001	National Stock Exchange of India Ltd., Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E) Mumbai – 400 051

The listing fee for the financial year 2023-24 has been paid to BSE Limited and National Stock Exchange of India Ltd in the month of April 2023.

(f) Stock codes Equity shares

BSE Code: 500294, NSE Symbol: NCC

(g) Market price data

The monthly High and Low stock quotations during the year under review and performance in comparison to SENSEX (BSE) and NIFTY (NSE) are given below-

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BSE Sensex NSE Nifty
Month High price Low price High price Low price
High Low High Low
( .) ( .) ( .) ( .)
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Month	BSE	BSE	Sensex	Sensex	NSE	NSE	Nifty	Nifty
	High price (`.)\|Low price<br>(`.)	High	Low	High price (`.)\|Low price<br>(`.)	High	Low

April 2022	72.90	61.00	60845.10	56009.07	72.90	61.00	18114.65	16824.70
May2022	68.00	58.80	57184.21	52632.48	68.00	58.75	17132.85	15735.75
June 2022	65.80	51.00	56432.65	50921.22	65.90	52.20	16793.85	15183.40
July2022	67.00	53.15	57619.27	52094.25	60.30	53.10	17172.80	15511.05
August 2022	70.75	59.05	60411.20	57367.47	70.75	58.90	17992.20	17154.80
September 2022	75.70	66.20	60676.12	56147.23	75.70	66.30	18096.15	16747.70
October 2022	75.30	68.55	60786.70	56683.40	75.35	68.70	18022.80	16855.55
November 2022	84.60	71.10	63303.01	60425.47	84.60	71.10	18816.05	17959.20
December 2022	96.90	76.30	63583.07	59754.10	96.90	76.35	18887.60	17774.25
January2023	96.65	83.70	61343.96	58699.20	96.70	83.60	18251.95	17405.55
February2023	97.95	87.35	61682.25	58795.97	98.00	87.40	18134.75	17255.20
March 2023	108.40	89.10	60498.48	57084.91	108.50	89.20	17799.95	16828.35

NCC LIMITED

STATUTORY REPORTS

(h) Registrar and Transfer Agents:

M/s. KFin Technologies Limited. Selenium Building, Tower B, Plot No.31 & 32, Financial District, Nanakramguda, Serilingampally, Hyderabad -500 032 Phone:1800 309 4001 Email: [email protected] Website: www.ris.kfintech.com

(i) Share Transfer System

SEBI vide its Circular dated June 8, 2018, effective from April 01, 2019, mandated that except in case of transmission or transposition of securities, requests for effecting transfer of securities shall not be processed unless the securities are held in dematerialized form with a depository. Any investor who is desirous of transferring shares (which are held in physical form) after April 01, 2019, can do so only after the shares are dematerialized. However, this does not prohibit the investor from holding the shares in physical form and investor has the option of holding shares in physical form even after April 01, 2019. KFin Technologies Limited is the common Registrar and Transfer Agents for dealing with all the activities connected with both physical and demat segments pertaining to the Securities of the Company.

(j) Distribution of shareholding as on March 31, 2023.

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Number of Total Shares of ` Details of
Number of shares held % %
shareholders 2/-each shareholding
----- End of picture text -----*

Number of shares held	Number of shareholders*	%	Total Shares of` 2/-each	Details of shareholding	%

1 - 5000	278387	96.85	59485241	118970482	9.47
5001 - 10000	4703	1.64	17291021	34582042	2.75
10001 - 20000	2302	0.80	16898220	33796440	2.69
20001 - 30000	687	0.24	8545143	17090286	1.36
30001 - 40000	331	0.11	5968759	11937518	0.95
40001 - 50,000	198	0.07	4551019	9102038	0.73
50001 - 100000	359	0.12	12652212	25304424	2.02
100001 and above	484	0.17	502454973	1004909946	80.03
Total	287451	100.00	627846588	1255693176	100.00

*After clubbing the common PAN

(k) Shareholding Pattern as on March 31, 2023

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

Promoters & Promoters Group	138126680	22.00
Domestic Institutional Investors/Banks	3168	0.00
Bodies Corporate	38474106	6.13
Foreign Portfolio Investors	125306951	19.96
NRIs	8372277	1.33
Mutual Funds	60100521	9.57
Indian Public	256923300	40.93
IEPF	514131	0.08
Unclaimed Suspense Account	25454	0.00
Total	627846588	100.00

Annual Report 2022-23

(l) Dematerialization.

Over 99.88% of the outstanding shares were dematerialized up to March 31, 2023. The Company’s shares are liquid and actively traded.

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Category No. of Shareholders Number of Shares %
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Category	No. of Shareholders*	Number of Shares	%

NSDL	107500	433817779	69.10
CDSL	185392	193242332	30.78
Physical	743	786477	0.12
Total	293635	627846588	100.00

Without clubbing common PANs

(m) International Securities Identification Number (ISIN): INE868B01028

(n) Address for Correspondence Physical / Electronic mode

M/s.KFin Technologies Limited (Unit: NCC Limited) Selenium Building, Tower B, Plot No.31 & 32, Financial District, Nanakramguda, Hyderabd - 500 032 Email: [email protected] website:www.ris.kfintech.com Toll Free No.1800-309-4001	Shareholders General Correspondence Company Secretary & Compliance Officer NCC Limited 9thFloor, NCC House, Madhapur, Hyderabd - 500 081 Phone: 040-23268888 / 23268942 E-Mail: [email protected] www.ncclimited.com

(o) Credit Ratings:

Credit rating agency “India Ratings & Research” reviewed the rating assigned to the various credit facilities of the Company during the financial year ended 31st March 2023. Vide their letter dated January 19, 2023, the agency affirmed the Company’s Long-Term Issuer Rating at ‘IND A+/Stable’. The Outlook is Positive. The instrument-wise rating actions are as follows:

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Instrument Type Size of Issue (billion) Rating/Outlook Rating Action
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Instrument Type	Size of Issue(billion)	Rating/Outlook	Rating Action

Long-Term Issuer Rating	-	IND A+/Stable	Affirmed
Fund-based workingcapital limits	INR 22.00	IND A+/Stable/IND A1	Affirmed
Non-fund-based limits	INR 130.00(increased from INR 110.00)	IND A+/Stable/IND A1	Affirmed

(p) ECS Facility;

The Company is providing facility of “Electronic Clearing Service” (ECS) for payment of dividend to shareholders. Shareholders who have not furnished such details earlier are once again requested to provide details of their bank account for availing ECS facility. Further, the ECS facility is available to the beneficial owners of shares held in electronic form as well as in physical form. Those desirous of availing the ECS facility may provide their mandate to the Company in writing, in the form that can be obtained from the Company or the Company’s Registrar and Transfer Agents M/s. KFin Technologies Limited.

(q) Unclaimed dividend

Pursuant to the provisions of Sections 124 & 125 of the Companies Act, 2013 the Company is required to transfer the amount of dividend remaining unclaimed consecutively for a period of seven years from the date of transfer to the unclaimed dividend account to the Investor Education and Protection Fund (IEPF). Shareholders are requested to ensure that they claim the dividend(s) from the Company before transfer to the Investor Education and Protection Fund (IEPF). In compliance with above-said provisions of the Companies Act, 2013, the Company transferred the unclaimed dividend amounting to ` 4,15,593/(Rupees Four Lakhs Fifteen Thousand Five Hundred Ninety-Three only) (Final Dividend) pertaining to the year 2014-2015 to the Investor Education and Protection Fund.

NCC LIMITED

STATUTORY REPORTS

(r) Due dates for transfer of dividend unclaimed to IEPF are as follows:

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Amount of unclaimed Last date for claiming
Financial Type of Date of Due date for
dividend outstanding Unpaid Dividends by
year dividend declaration transfer to IEPF
as on March 31, 2023 investors
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Financial year	Type of dividend	Date of declaration	Amount of unclaimed dividend outstanding as on March 31, 2023	Last date for claiming Unpaid Dividends by investors	Due date for transfer to IEPF

2015-16	Final	24-08-2016	5,93,052.00	30-09-2023	30-10-2023
2016-17	Final	24-08-2017	4,15,854.40	30-09-2024	30-10-2024
2017-18	Final	10-08-2018	9,55,049.00	16-09-2025	16-10-2025
2018-19	Final	06-09-2019	11,20,171.50	12-10-2026	11-11-2026
2019-20	Final	25-09-2020	3,17,690.80	30-10-2027	29-11-2027
2020-21	Final	27-08-2021	9,54,735.80	02-10-2028	01-11-2028
2021-22	Final	22-08-2022	18,79,948.00	27-09-2029	27-10-2029

(s) Dividend Distribution policy

In compliance with Regulation 43A of the Listing Regulations the Company has formulated its Dividend Distribution Policy, the details of which are available on the Company’s website at: https://ncclimited.com/policies&codes.html.

10. Other Disclosures

(a) During 2022-23 certain transactions were entered into with related parties. The details thereof are given in note number 35 of the Standalone Financial Statements.
(b) There were no occasions of non-compliance by the Company and no penalties or strictures were imposed on the Company by the Stock Exchanges or the SEBI or any statutory authority, on any matter related to Capital markets, during the last three years.
(c) The Company has formulated and adopted formal Whistle Blower Policy/Vigil Mechanism and the same is hosted on the Company’s Website and no concerned person has been denied access to the Audit Committee.
(d) The Company has complied with all the mandatory requirements of Schedule V of the SEBI (Listing and Disclosure Requirements) Regulations, 2015.
(e) Policy on Material Subsidiaries is hosted on our website

The following is the web link: http://ncclimited.com/images/PDF/Policies/Policy on Material Subsidiary(ies).

(f) Policy on Related party transactions is hosted in our website www.ncclimited.com, the following is the web link;
https://ncclimited.com/policies%20&%20codes/Policy%20on%20Related%20Party%20Transactions.pdf.
(g) Details of utilization of funds raised through preferential allotment or QIP as specified under Regulation 32 (7A): During the Financial Year 2022-23 the Company has allotted 18000000 Equity Shares after conversion of 18000000 Warrants (issued during the F.Y.2020-21 after receipt of 25% of issue Price of 59/- Per Warrant), upon receipt of 75% of Issue Price aggregating to 79.65 Crores. The amount raised through Preferential Issue has been utilized as per the Objects specified in the Explanatory Statement in the Postal Ballot notice dated 31-12-2020.

Annual Report 2022-23

During the year, there was no treatment of any transaction different from that as prescribed in the Accounting Standards as required under Section 133 of the Companies Act, 2013.

A report on risk management forms a part of the Management Discussion and Analysis in this report.

The information on appointment/re-appointment of Directors and their brief profiles forms part of the Notice of the ensuing Annual General Meeting for the information of shareholders.

Secretarial Compliance Report

Pursuant to Regulation 24A of the Listing the Company has submitted to the Stock Exchanges the Secretarial Compliance Report for the Financial Year 2022-23 furnished by M/s. BS & Company, Company Secretaries LLP, a firm of Practicing Company Secretaries. The Company shall be filing the Secretarial Compliance Report for the Financial Year 2022-23 within the prescribed time.

Certificate from Practicing Company Secretary

Certificate as required under Part C of Schedule V of the Listing Regulations furnished by M/s. BS & Company, Company Secretaries LLP, that none of the Directors on the Board of the Company have been debarred or disqualified from being appointed or continuing as directors of the Company by the Securities and Exchange Board of India/ Ministry of Corporate Affairs or any such statutory authority was placed before the Board of Directors at its meeting held on 26[th] May 2023.

Recommendations of Committees of the Board

There were no instances during the financial year 2022-23, wherein the Board had not accepted recommendations made by any Committee of the Board

Code of Conduct to Regulate, Monitor, and Report Trading by Designated Persons:

The Company has adopted a Code of Conduct to Regulate, Monitor, and Report Trading by Designated Persons (Insider Trading Code) under the SEBI (Prohibition of Insider Trading) Regulations, 2015 (SEBI Insider Trading Regulations). The Code of Conduct, inter alia, covers the following:

(a) Regulate, Monitor and Report Trading by Designated Persons.
(b) Policy for determination of ‘legitimate purposes’ as a part of ‘Code of Fair Disclosure and Conduct.
(c) Policy for inquiry in case of leak of Unpublished Price Sensitive Information (UPSI)
(d) Whistle Blower Policy to enable reporting in case of leak of UPSI.

The Audit Committee reviews cases of non-compliance, if any, and makes necessary recommendations w.r.t. action taken against such defaulters. The said non-compliance promptly intimated to SEBI.

The Code of Conduct, Code of Fair Disclosure and Whistle Blower Policy duly approved by the Board of Directors of the Company have been uploaded on the website of the Company.

The Company has complied with all the requirements of the Corporate Governance Report as set out in paras (2) to (10) above.
The Company has complied with the non-mandatory requirements/Discretionary Requirements as stipulated in Regulation 27 (1) read with Part E of the Schedule II of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 as indicated below;
(a) The Company’s financial statements are with unmodified audit opinion.
(b) The Company has appointed separate persons to the post of Chairman and Managing Director.
(c) The Internal auditors of the Company report directly to the Audit Committee of the Board.
The Company has complied with all the mandatory clauses of Corporate Governance requirements specified in regulations 17 to 27 and of regulation 46 of the Listing Regulations as applicable.

NCC LIMITED

STATUTORY REPORTS

14. Disclosures with respect to unclaimed suspense account:

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

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No of No. of Equity
Particulars
shareholders Shares
----- End of picture text -----

Particulars	No of shareholders	No. of Equity Shares

Aggregate Number of Shareholders and outstanding shares lying in the Unclaimed Suspense Account as on April 1, 2022	29	25984
Unclaimed shares Credited to the Account duringtheyear	-	-
Number of shareholders approached the Company for the transfer of shares from Unclaimed Suspense Account duringtheyear	-	-
No. of Shares transferred to IEPF Account	2	530
Aggregate Number of Shareholders and outstanding Shares lying in the Unclaimed Suspense Account as on March 31, 2023	27	25454
The voting rights of the above said unclaimed shares lying in Demat Account shall remain frozen till the rightful owner of such shares claims the shares.

15. Transfer of Shares Unpaid/Unclaimed Amounts to Investor Education and Protection Fund (IEPF)

In accordance with the provisions of the Companies Act, 2013, the Company has transferred 36358 (Thirty-Six Thousand Three Hundred Fifty-Eight only) Equity Shares of ` 2/- each during the Financial Year 2022-23 to the credit of IEPF Authority. As on 31st March 2023, the Company has cumulatively transferred 514131 (Five Lakhs Fourteen Thousand One Hundred Thirty-One only) so far for all Financial Years. Equity Shares to the credit of IEPF Authority. The Company is initiating necessary action for the transfer of shares in respect of which dividend has not been claimed by the members consecutively since 2015-16.

Pursuant to Rule 6(13) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, the Company has credited an amount of ` 7, 90, 964 (Rupees Seven Lakhs Ninety Thousand Nine Hundred Sixty-Four only) to the Investor Education and Protection Fund (IEPF) during the Financial Year 2022-23 towards Dividend paid on the Unclaimed Shares transferred to IEPF Authority.

The Company has uploaded on its website the details of unpaid and unclaimed amounts lying with the Company as on date of last Annual General Meeting (i.e., August 22, 2022) and details of shares transferred to IEPF. The aforesaid details are put on the Company’s website and can be accessed at: https://ncclimited.com/unpaid-dividends.html#

The Company has also uploaded these details on the website of the IEPF Authority (www.iepf.gov.in).

M/S.S. R. Batliboi & Associates LLP, Chartered Accountants (Firm Registration No. 101049W/E30004) have been appointed as Statutory Auditors of the Company. The particulars of payments to Statutory Auditors S. R. Batliboi & Associates LLP, Chartered Accountants (Firm Registration No. 101049W/E300004 or any other firm in their group on consolidated basis is given below.

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Description of Service Amount in ( ` in Crore)
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Description of Service	Amount in(`in Crore)

Services as StatutoryAuditors(Audit fee)	1.95
Certification fee	0.11
Total	2.06

17. Disclosure under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:

Number of complaints filed during the financial year Nil Number of complaints disposed of during the financial year Nil Number of complaints pending as on end of the financial year Nil

Annual Report 2022-23

DECLARATION OF COMPLIANCE WITH THE CODE OF CONDUCT

I hereby confirm that the Company has obtained from all the members of the Board and Senior Management Personnel, affirmation that they have complied with the Code of Conduct for Board Members and Senior Management Personnel in respect of the financial year ended March 31, 2023.

For NCC Limited

Place: Hyderabad Date: May 26, 2023

A A V Ranga Raju Managing Director DIN No.00019161

CORPORATE GOVERNANCE CERTIFICATE

Under Regulation 34(3) read with Schedule V (E) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

To,

The Members of

NCC Limited

NCC House, Madhapur, Hyderabad-500081, Telangana, India

We have examined the compliance of the conditions of Corporate Governance by NCC LIMITED (“Company”) for the year ended 31[st] March, 2023, as stipulated under Regulations 17 to 27, clauses (b) to (i) and (t) of sub- regulation (2) of Regulation 46 and para C, D and E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

MANAGEMENT’S RESPONSIBILITY

The Compliance with the requirements of conditions of Corporate Governance is the responsibility of the Management of the Company. This responsibility includes the design, implementation and maintenance of internal control relevant to the compliance with the requirements in the Corporate Governance and applying an appropriate basis of preparation; and making estimates that are reasonable in the circumstances.

OUR RESPONSIBILITY

Pursuant to the requirement under SEBI (LODR) Regulations, 2015, it is our responsibility to express limited assurance that the Company has complied with the requirements of the conditions of Corporate Governance. Further, this Certificate is also required to be annexed with the Board’s Report of the Company which forms part of the Annual Report as required under Para-E of Schedule V of the SEBI (LODR) Regulations, 2015.

OPINION

Based on our examination of the relevant records and according to the information and explanations provided to us and the representations provided by the Management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in regulations 17 to 27 and clauses (b) to (i) and (t) of sub- regulation (2) of Regulation 46 and para C, D and E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 during the year ended March 31[st] , 2023. There was one day delay in the submission of the disclosure to the stock exchanges pursuant to Regulation 23(9) of SEBI (LODR) regulations 2015.

This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

For BS & Company, Company Secretaries LLP

K.V.S. Subramanyam Designated Partner FCS No.: 5400 C P No.: 4815 Date: May 26, 2023 PR. No: 705/2020 Place: Hyderabad UDIN: F005400E000381699

NCC LIMITED

STATUTORY REPORTS

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

To,

The Members of

NCC Limited

NCC House, Madhapur, Hyderabad-500081, Telangana, India

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of NCC Limited having CIN L72200TG1990PLC011146 and having registered office at NCC House, Madhapur, Hyderabad-500081,Telangana, India (hereinafter referred to as ‘the Company’), produced before us by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In our opinion and to the best of our information and according to the verifications (including Directors Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company & its officers, We hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending on 31[st] March, 2023 have been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.

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

1	Mr. Hemant Madhusudan Nerurkar	00265887	25.09.2014
2	Mrs. Renu Challu	00157204	25.09.2014
3	Mr. Durga Prasad Subramanyam Anapindi	00911306	24.05.2016
4	Mr. Om Prakash Jagetiya	00546495	30.12.2020
5	Mr. Utpal Hemendra Sheth	00081012	11.10.2013
6	Mr. AAV Ranga Raju	00019161	22.03.1990
7	Mr. Alluri Gopala Krishnam Raju	00019100	22.03.1990
8	Mr. Alluri Srimannarayana Raju	00017416	22.03.1990
9	Mr. AVN Raju	00018965	01.06.1999
10	Mr. Jampana Venkata Ranga Raju	00020547	23.03.1990

*The above mentioned directors are as on 31st March, 2023

Ensuring the eligibility of Directors, for the appointment / continuity of every Director on the Board is the responsibility of the management of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

For BS & Company, Company Secretaries LLP

Date: May 26, 2023 Place: Hyderabad

K.V.S. Subramanyam Designated Partner FCS No.: 5400 C P No.: 4815 UDIN: F005400E000381578

Annual Report 2022-23

Business Responsibility and Sustainability Reporting (BRSR)

SECTION A: GENERAL DISCLOSURES

SECTION A: GENERAL DISCLOSURES
1. Corporate IdentityNumber(CIN)of the Listed Entity	L72200TG1990PLC011146
2. Name of the Listed Entity	NCC Limited
3. Year of incorporation	1990
4. Registered office address	NCC House, Madhapur, Hyderabad – 500081
5. Corporate address	NCC House, Madhapur, Hyderabad – 500081
6. E-mail	[email protected]
7. Telephone	914023268888
8. Website	www.ncclimited.com
9. Financialyear for which reportingis beingdone	FY2022-2023
10. Name of the Stock Exchange(s) where shares are listed	National Stock Exchange of India Limited (NSE) and BSE Limited(BSE)
11. Paid-upCapital	INR 125.57 Crores
12. Name and contact details (telephone, email address) of the person who may be contacted in case of any queries on the BRSR report	Sisir Kumar Mishra, Ph No.: +91-9121359696 E-mail: [email protected]
13. Reporting boundary Are the disclosures under this report made on a standalone basis (i.e., only for the entity) or on a consolidated basis (i.e., for the entity and all the entities which form a part of its consolidated financial statements, taken together).	Standalone

Details of business activities (accounting for 90% of the turnover):

S. No.	Description of main activity	Description of business activity	% of turnover of the entity (FY23)
1	Construction & Civil Engineering	Construction of Industrial and commercial buildings, housing project, roads, bridges and flyovers, water supply and environment projects, mining, power transmission lines, irrigation and hydrothermalpowerprojects, real estate development, etc.	100

Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):

S. No.	Product/Service	NIC Code	% of total turnover contributed
1	Construction of buildings	41001, 41002, 41003	44%
2	Construction and maintenance of Roads	42101	16%
3	Construction and maintenance of water main and line connection	42204	25%
4	Construction and maintenance of Electrical works	42202	8%

NCC LIMITED

STATUTORY REPORTS

Number of locations where plants and/or operations/offices of the entity are situated:

Location	Number of operational sites	Number of offices	Total
National	225	10	235
International	Nil	2	2

Markets served by the entity:
a. Number of locations

Locations	Number
National(No. of States)	27
International(No. of Countries)	2

b. What is the contribution of exports as a percentage of the total turnover of the entity?
Nil
c. A brief on types of customers

The Company’s business is construction of infrastructure projects. Major clients include Central Government, State Government, local municipal bodies and other Government bodies, Public Sector Undertakings, Private Sector, etc.

Details as at the end of Financial Year:
a. Employees and workers (including differently abled):

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S. Total Male Female
Particulars
No. (A) No. (B) % (B / A) No. (C) % (C / A)
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S. No.	Particulars	Total (A)	Male	Male	Female	Female
			No.(B)	%(B / A)	No.(C)	%(C / A)

EMPLOYEES
1	Permanent(D)	5515	5417	98.22%	98	1.78%
2	Other than Permanent(E)	5975	5943	99.46%	32	0.54%
3	Total employees(D + E)	11490	11360	98.87%	130	1.13%
WORKERS
4	Permanent(F)	0	0	0	0	0
5	Other than Permanent(G)	9121	8862	97.16%	259	2.84%
6	Total workers(F + G)	9121	8862	97.16%	259	2.84%

b. Differently abled Employees and worker

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S. Total Male Female
Particulars
No (A) No. (B) % (B / A) No. (C) % (C / A)
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S. No	Particulars	Total (A)	Male	Male	Female	Female
			No.(B)	%(B / A)	No.(C)	%(C / A)

Differently abled employees
1	Permanent(D)	4	4	100%	0	-
2	Other than Permanent(E)	0	0	-	0	-
3	Total employees(D + E)	4	4	100%	0	-
Differently abled workers
4	Permanent(F)	0	0	-	0	-
5	Other than Permanent(G)	0	0	-	0	-
6	Total workers(F + G)	0	0	-	0	-

Annual Report 2022-23

19. Participation/Inclusion/Representation of women

	Total	No. and percentage of Females	No. and percentage of Females
	(A)	No.(B)	%(B / A)
Board of Directors	10	1	10%
KeyManagement Personnel	2	0	0%

Turnover rate for permanent employees and workers

	FY 2022-23	FY 2022-23	FY 2022-23	FY 2021-22	FY 2021-22	FY 2021-22	FY 2020-21	FY 2020-21	FY 2020-21
	Male	Female	Total	Male	Female	Total	Male	Female	Total
Permanent Employees	18.61%	7.69%	18.44%	14.7%	5.7%	14.6%	15.7%	6.6%	15.6%
Permanent Workers	Not Applicable

Details of Holding, Subsidiary & Associate Companies (including joint ventures)

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Indicate whether Does the entity indicated
it is a holding % of shares at column A, participate in
S. Name of the holding / subsidiary /
/ Subsidiary / held by the Business Responsibility
No associate companies / joint ventures
Associate / Joint listed entity initiatives of the listed
Venture entity? (Yes/No)
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S. No	Name of the holding / subsidiary / associate companies / joint ventures	Indicate whether it is a holding / Subsidiary / Associate / Joint Venture	% of shares held by listed entity	Does the entity indicated at column A, participate in the Business Responsibility initiatives of the listed entity? (Yes/No)

1	NCC Urban Infrastructure Limited	Subsidiary	80	No
2	NCC Infrastructure Holdings Limited	Subsidiary	62.84	No
3	Pachhwara Coal MiningPrivate Limited	Subsidiary	51	No
4	Talaipalli Coal MiningPrivate Limited	Subsidiary	51	No
5	Nagarjuna Construction Company International L.L.C.	Subsidiary	100	No
6	NCC Infrastructure Holdings Mauritius Pte Limited	Subsidiary	100	No
7	Nagarjuna ContractingCo. L.L.C.	Subsidiary	100	No
	Subsidiaries of NCC Urban Infrastructure Limited
8	Dhatri Developers & Projects Private Limited	Subsidiary	100	No
9	Sushanti Avenues Private Limited	Subsidiary	100	No
10	Sushrutha Real Estate Private Limited	Subsidiary	100	No
11	PRG Estates LLP	Subsidiary	100	No
12	Thrilekya Real Estates LLP	Subsidiary	100	No
13	Varma Infrastructure LLP	Subsidiary	100	No
14	Nandyala Real Estates LLP	Subsidiary	100	No
15	Kedarnath Real Estates LLP	Subsidiary	100	No
16	AKHS Homes LLP	Subsidiary	100	No
17	JIC Homes Private Limited	Subsidiary	100	No
18	Sushanti HousingPrivate Limited	Subsidiary	100	No
19	CSVS PropertyDevelopers Private Limited	Subsidiary	100	No

NCC LIMITED

STATUTORY REPORTS

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S. No	Name of the holding / subsidiary / associate companies / joint ventures	Indicate whether it is a holding / Subsidiary / Associate / Joint Venture	% of shares held by listed entity	Does the entity indicated at column A, participate in the Business Responsibility initiatives of the listed entity? (Yes/No)

20	Vera Avenues Private Limited	Subsidiary	100	No
21	Sri Raga Nivas PropertyDevelopers LLP	Subsidiary	100	No
22	VSN PropertyDevelopers LLP	Subsidiary	100	No
23	M A PropertyDevelopers Private Limited	Subsidiary	100	No
24	Mallelavanam Property Developers Private Limited	Subsidiary	100	No
25	NCC Urban Homes Private Limited	Subsidiary	100	No
26	NCC Urban Ventures Private Limited	Subsidiary	100	No
	Subsidiaries of NCC Infrastructure Holdings Limited
27	OB Infrastructure Limited	Subsidiary	64.02	No
28	NCC Infra Limited	Subsidiary	100	No
29	Samashti Gas EnergyLimited	Subsidiary	100	No
30	Savitra Agri Industrial Park Private Limited	Subsidiary	100	No
	Subsidiaries of NCC Infrastructure Holdings Mauritius Pte. Limited
31	Al Mubarakia ContractingCo. L.L.C.	Subsidiary	100	No
	Subsidiaries of Nagarjuna Construction Company International L.L.C.
32	NCCA International Kuwait General Contracts CompanyL.L.C.	Subsidiary	100	No
	Associates of NCC Limited
33	Brindavan Infrastructure CompanyLimited	Associate	33.33	No
34	Paschal Form Work(India)Private Limited	Associate	23.35	No
35	Nagarjuna Facilities Management Services L.L.C.	Associate	49	No
	Associates of NCC Infrastructure Holdings Limited
36	Pondicherry Tindivanam Tollway Private Limited	Associate	47.8	No
37	Ekana Sportz CityPrivate Limited	Associate	26	No
	Associates of NCC Infrastructure Holdings Mauritius Pte. Limited
38	Himalayan Green EnergyPrivate Limited	Associate	50	No
39	Apollonius Coal and EnergyPte. Ltd.	Associate	44.29	No
	Associates of NCC Urban Infrastructure Limited
40	Varapradha Real Estates Private Limited	Associate	40	No

Annual Report 2022-23

22. Details of CSR Activities

(i) Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No) - Yes
(ii) Turnover (in .) – 13,504 Crores as on 31.03.2023
(iii) Net worth (in .) – 6,322 Crores
Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:

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FY 2022-23 FY 2021-22
(Current Financial Year) (Previous Financial Year)
Grievance
Stakeholder Number of Number of
redressal
group from mechanism Number of complaints Number of complaints
whom complaint complaints pending complaints pending
in place Remarks Remarks
is received filed during resolution at filed during resolution
(Yes/No)
the year close of the the year at close of
year the year
Communities Yes 0 0 - 0 0 -
Investors (other - - -
N/A
than shareholders)
As per As per the
the report we
report we submit
submit with
Shareholders Yes 2 0 12 0
with SEs on
SEs on Quarterly
Quarterly basis.
basis.
Employees and Yes 0 0 - 0 0 -
workers
Customers Yes 0 0 - 0 0 -
Value Chain
Yes 0 0 - 0 0 -
Partners
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NCC LIMITED

STATUTORY REPORTS

24. Overview of the entity’s material responsible business conduct issues

Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the risk along-with its financial implications, as per the following format

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Financial
implications
Indicate
of the risk or
whether In case of risk,
S. Material issue Rationale for identifying opportunity
risk or approach to adapt or
No. identified the risk / opportunity (Indicate
opportunity mitigate
positive or
(R/O)
negative
implications)
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S. No.	Material issue identified	Indicate whether risk or opportunity (R/O)	Rationale for identifying the risk / opportunity	In case of risk, approach to adapt or mitigate	Financial implications of the risk or opportunity (Indicate positive or negative implications)

1	Corporate Governance	Risk	Corporate governance can pose several risks including legal and financial risks, reputational damage, decreased stakeholder trust, and decreased shareholder value	Establishing a well-defined leadership structure, roles, and responsibilities for seamless functioning towards sustainability	Negative
2	Customer Experience & Satisfaction	Opportunity	Increased customer loyalty, positive word-of-mouth recommendations, and a competitive advantage. It can also help to reduce project delays, minimize rework, and improve project outcomes, ultimately leading to increased profitability.	-	Positive
3	Employee & Workforce Engagement, Wellbeing	Opportunity	Improving employee and workforce engagement and wellbeing can lead to increased productivity, decreased absenteeism, and improved safety on job sites. These factors can ultimately result in cost savings, improved project outcomes, and a more positive industry reputation.	-	Positive

Annual Report 2022-23

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S. No.	Material issue identified	Indicate whether risk or opportunity (R/O)	Rationale for identifying the risk / opportunity	In case of risk, approach to adapt or mitigate	Financial implications of the risk or opportunity (Indicate positive or negative implications)

4	Social engagement & Impact	Risk/ Opportunity	Risk:The business must be rooted in community and be aligned with the community’s larger interests. Risks such as worker safety, and community disrupton can have signifcant social and economic consequences, making it crucial to identfy and mitgate them to protect people Opportunity: Due to its potental, it creates jobs, build infrastructure, and contribute to economic growth.	Prioritze efectve communicaton and collaboraton with stakeholders, including local communites, government agencies, and NGOs. Additonally, conductng thorough environmental and social impact assessments before and during constructon can help identfy potental risks and enable proactve measures to minimize negatve efects.	Negative/Positive
5	Environment management	Risk	Climate change-related extreme weather occurrences put the company’s operations, as well as the health and safety of its employees, at danger. Water scarcity has the potential to harm operations and cause economic disruption. Inadvertent non-compliance with current and forthcoming waste legislation may incur financial penalties and harm one’s reputation.	Implementing building design and materials that are more resilient to extreme weather events, regularly assessing and updating emergency response plans, and providing employee training on safety procedures during extreme weather. Using recycled water for non-potable purposes, reducing water usage during construction activities, and incorporating sustainable design features that minimize water demand Implementing effective waste management practices, utilizing eco-friendly building materials, and ensuring compliance with local environmental regulations	Negative

NCC LIMITED

STATUTORY REPORTS

SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the NGRBC Principles and Core Elements.

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Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
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Disclosure Questions	P1	P2	P3	P4	P5	P6	P7	P8	P9

Policy and management processes
1. a. Whether your entity’s policy/policies cover each principle and its core elements of the NGRBCs. (Yes/No)	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
b. Has the policy been approved by the Board? (Yes/No)	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
c. Web Link of the Policies, if available https://ncclimited.com/policies&codes.html
2. Whether the entity has translated the policy into procedures. (Yes / No)		Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
3. Do the enlisted policies extend to your value chainpartners?(Yes/No)	Yes
4. Name of the national and international codes/certifications/labels/standards (e.g., Forest Stewardship Council, Fairtrade, Rainforest Alliance, Trustee) standards (e.g., SA 8000, OHSAS, ISO, BIS) mapped to each principle.	NCC Limited is certified with the management system ISO 45001:2018, ISO 9001:2015, ISO 14001:2015 to ensure compliance with health and safety, quality, and environmental management systems. Furthermore, the Company strictly follow the regulations and guidelines set forth by the India Labor courts and other applicable laws
5. Specific commitments, goals and targets set by the entity with defined timelines, if any.	NCC strives to achieve enhanced customer satisfaction by delivering quality products through timely completion in safe working environments. We dedicate ourselves to continual improvement in all fields of our business. Our quality standards are guided by the Quality Objectives stated below: • “To consistently deliver quality products by adhering to set specifications, contractual, regulatory, and statutory requirements. • To achieve enhanced customer satisfaction through cost-effective and timely completion.”
6. Performance of the entity against the specific commitments, goals, and targets along-with reasons in case the same are not met.	All the company’s projects are adhering to highest quality, ensuring workplace safety & minimum environmental impact.

Annual Report 2022-23

Governance, leadership and oversight	Governance, leadership and oversight
7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and achievements (listed entity has flexibility regarding the placement of this disclosure) We at NCC are driven by the vision that encapsulates the values set by our Founder and Chairman. We aspire to be a world-class construction and infrastructure enterprise committed to quality, safety, customer satisfaction, environment, continuous learning, and enhancement of value for all our stakeholders. Our vision is guided by our core values of openness and trust, integrity and reliability, teamwork and collaboration, commitment, and creativity. These values are reflected in the manner we conduct our business. As a socially conscious organization we strongly focus on societal development and social consciousness in the communities that we operate in. We acknowledge that we have a larger responsibility in our relationships with our stakeholders both within & beyond the sphere of business. As a responsible corporate citizen, we always strive to implement global sustainability standards and processes at our facilities. Our commitment to sustainability and ESG principles is enshrined in our ESG policy which covers aspects such as ethics, integrity & transparency, sustainable and safe operations, well-being of employees, workers and value chain partners, stakeholder engagement, promotion of human rights, protection and restoration of environment, inclusive growth and equitable development for our communities and responsible engagement with all our stakeholders. In our sustained efforts to improve our sustainability performance & drive a positive change in society at large, we are instituting measures and procedures that positively impact our ESG principles elucidated in our policy. We have also started integrating our data collection & sustainability indicator tracking across our operational sites to come up with well-established goals and targets that would catalyse our sustainability journey. We are gradually adopting procedures that promote resource efficiency, safeguard the environment, promoter health & safety of our workforce, contribute to social upliftment, provide opportunities in the remotest of regions in India. These measures and procedures will become more aggressive in the future as our sustainability governance structures become more mature. We also believe in delivering high social impact through our businesses and in the communities around. Right from our inception, our commitment and service to the society is of paramount importance for us. NCC Foundation which is the CSR arm of NCC Limited delivers high impact CSR projects for community upliftment & reducing the rural-urban divide. Our community interventions are focussed on education in rural areas, skill development & job opportunities for rural youth, access to primary healthcare, rural infrastructure development & community support and building a greener tomorrow. As we embark on this journey of enhancing our ESG capabilities, I would like to assure you that our commitment to ESG principles remains resolute. We will continue to assess and refine our practices to ensure that they meet the highest standards of sustainability and corporate responsibilityand create longterm stakeholder value.
8. Details of the highest authority responsible for implementation and oversight of the Business Responsibility policy/policies	ESG Committee
9. Does the entity have a specified Committee of the Board/ Director responsible for decision making on sustainability related issues? (Yes / No). If yes, provide details.	ESG Committee Sri O P Jagetiya - Chairman Sri Hemant Nerurkar, Member Dr A S Durga Prasad, Member Sri A A V Ranga Raju, Member

NCC LIMITED

STATUTORY REPORTS

10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:	10. Details of Review of NGRBCs by the Company:
Subject for Review	Indicate whether review was undertaken by Director/Committee of the Board/Any other Committee									Frequency (Annually/Half yearly/ Quarterly/Any other – please specify)
	P1	P2	P3	P4	P5	P6	P7	P8	P9	P1	P2	P3	P4	P5	P6	P7	P8	P9
Performance against above policies and follow up action	All the policies of the company are approved by the board and reviewed periodically on a need basis by respective committees
Compliance with statutory requirements of relevance to the principles, and rectification of any non-compliances	NCC Limited is compliant to all applicable regulations
11. Has the entity carried out independent assessment/ evaluation of the working of its policies by an external agency? (Yes/No). If yes, provide name of the agency.	The entity has certifications for ISO 14001, ISO 45001 & ISO 9001 and undergoes periodical assessment both internally & externally to evaluate effectiveness of management system and policies. Assessment is being carried out by accredited certification body at our facilities.

If answer to question (1) above is “No” i.e., not all Principles are covered by a policy, reasons to be stated

Questions

The entity does not consider the Principles material to its business (Yes/No)

The entity is not at a stage where it is in a position to formulate and implement the policies on specified principles (Yes/No)

The entity does not have the financial or/human and technical resources available for the task (Yes/No)

Not Applicable

It is planned to be done in the next financial year (Yes/No)

Any other reason (please specify)

Annual Report 2022-23

SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with key processes and decisions. The information sought is categorized as “Essential” and “Leadership”. While the essential indicators are expected to be disclosed by every entity that is mandated to file this report, the leadership indicators may be voluntarily disclosed by entities which aspire to progress to a higher level in their quest to be socially, environmentally, and ethically responsible.

PRINCIPLE 1: Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable.

Essential Indicators

Percentage coverage by training and awareness programmes on any of the Principles during the financial year.

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Total number Percentage of persons
of training and Topics / principles in respective category
Segment
awareness covered under the training and its impact covered by the
programmes held awareness programmes
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Segment	Total number of training and awareness programmes held	Topics / principles covered under the training and its impact	Percentage of persons in respective category covered by the awarenessprogrammes

Board of Directors	2	• Long-term strategic plan & cost management • ESG Training Impact: • Enhanced organizaton's fnancial stability and success • Signifcance of ESG and provided a clear roadmap for integratng ESG into the Company's strategy.	100%
Key Management Personnel	3	• Team / Development / Stages of Team Development/ Team communicaton / Motvaton overcoming challenges • Long-term strategic plan & cost management • ESG Training Impact: Cohesive, and successful organization that is better equipped to overcome challenges and achieve its goals.	100%
Employees other than BODs and KMPs	140	• Technical Competency Enhancement • Functonal Competency Enhancement • Personal Development • Health & Safety Awareness Training Impact: Improved motivation and competencyamongemployees.	21.53%
Workers	2370	Health & Safety Awareness (EHS) Training Training Impact:Increased awareness among workers	82%

NCC LIMITED

STATUTORY REPORTS

Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the entity or by directors / KMPs) with regulators/ law enforcement agencies/judicial institutions, in the financial year, in the following format

(Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website)

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Monetary
Name of the regulatory/ Has an appeal
NGRBC Amount Brief of
Enforcement agencies/ been preferred?
Principle (In INR) the Case
judicial institutions (Yes/No)
Penalty/ Fine
Settlement Nil
Compounding fee
Non-Monetary
Name of the regulatory/
NGRBC Brief of Has an appeal been preferred?
enforcement agencies/
Principle the Case (Yes/No)
Judicial institutions
Imprisonment
Nil
Punishment
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Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or nonmonetary action has been appealed.

Case Details	Name of the regulatory/ enforcement agencies/ judicial institutions
Nil	Not Applicable

Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web-link to the policy.

NCC Limited has implemented an anti-corruption and anti-bribery policy to prevent, deter, and identify fraudulent and corrupt business practices. The Company is dedicated to conducting its business with utmost honesty, integrity, and ethical standards and is committed to enforcing these standards across all its global operations by refraining from any involvement in bribery or corruption. This policy applies to all employees, including directors and other stakeholders associated with the Company, and is included in the onboarding process for all new hires.

Web-link to the policy: https://ncclimited.com/policies&codes.html

Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency for the charges of bribery/ corruption.

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FY 2022-23 FY 2021-22
(Current Financial Year) (Previous Financial Year)
Directors
KMPs
Nil Nil
Employees
Workers
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Annual Report 2022-23

Details of complaints with regard to conflict of interest.

	FY 2022-23 (Current Financial Year)	FY 2022-23 (Current Financial Year)	FY 2021-22 (Previous Financial Year)	FY 2021-22 (Previous Financial Year)
	Number	Remarks	Number	Remarks
Number of complaints received in relation to issues of Conflict of Interest of the Directors	Nil
Number of complaints received in relation to issues of Conflict of Interest of the KMPs

Provide details of any corrective action taken or underway on issues related to fines / penalties /action taken by regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest.

Not Applicable

Leadership Indicators

Awareness programmes conducted for value chain partners on any of the principles during the financial year.

Total number of awareness programmes held	Topics / principles covered under the training	%age of value chain partners covered (by value of business done with such partners) under the awarenessprogrammes
Nil. To embrace a sustainable future, the Company is committed to conducting comprehensive awareness and training programs for our value chain partners on the fundamental Principles. NCC Limited work to create a resilient and responsible value chain that benefits our stakeholders and the wider community by educating them and establishinga culture of shared values.	-	-

Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board? (Yes/No) If Yes, provide details of the same.

Yes, the Company has a Code of Conduct that applies to its Board of Directors and senior management team. The Code includes measures to prevent and manage conflicts of interest and mandates that the individuals covered under it should act with honesty, ethics, and integrity. It requires them to disclose and avoid any potential or actual conflicts of interest. These conflict-ofinterest areas include employment (outside), directorships (outside), business interests, related parties, payments, or gifts from others & corporate opportunities.

https://ncclimited.com/policies%20&%20codes/Code%20of%20Conduct%20new.pdf

NCC LIMITED

STATUTORY REPORTS

PRINCIPLE 2: Businesses should provide goods and services in a manner that is sustainable and safe

Essential Indicators

Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes to total R&D and capex investments made by the entity, respectively.

	FY 2022-23 (Current Financial Year)	FY 2021-22 (Previous Financial Year)	Details of improvements in environmental and social impacts
R&D	-	-	The E&S projects implemented are focused on energy efciency and water minimizaton
Capex	<1%	<1%

a. Does the entity have procedures in place for sustainable sourcing? (Yes/No)
b. If yes, what percentage of inputs were sourced sustainably.

The Company’s work orders for sourcing purposes contain specific clauses that all suppliers adhere to stipulated requirements ensuring compliance to applicable labour laws, minimum wages, other relevant statutory compliances. The clauses also contain specific requirements on maintaining desirable performance on EHS.

Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.
Not Applicable
Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No).

If yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps taken to address the same.

Extended Producer Responsibility (EPR) is not applicable as the company’s primary activity is construction and related services, and it does not produce any consumer products.

Leadership Indicators

Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for manufacturing industry) or for its services (for service industry)? If yes, provide details in the following format

NIC Code	Name of Product /Service	% of total Turnover contributed	Boundary for which the Life Cycle Perspective / Assessment was conducted	Whether conducted by independent external agency (Yes/No)	Results communicated in public domain (Yes/No) Ifyes,provide the web-link
NCC limited did not conduct life cycle assessment for theprojects

If there are any significant social or environmental concerns and/or risks arising from production or disposal of your products / services, as identified in the Life Cycle Perspective / Assessments (LCA) or through any other means, briefly describe the same along-with action taken to mitigate the same.

Name of Product/ Service	Description of the risk/ concern	Action Taken
NCC limited did not conduct life cycle assessment for theprojects

Annual Report 2022-23

Percentage of recycled or reused input material to total material (by value) used in production (For manufacturing industry) or providing services (for service industry).

	Recycled or re-used input material to total material	Recycled or re-used input material to total material
Indicate input material	FY 2022-23 (Current Financial Year)	FY 2021-22 (Previous Financial Year)
	Nil

Of the products and packaging reclaimed at end of life of products, amount (in metric tons) reused, recycled, and safely disposed of.

	FY 2022-23 (Current Financial Year)	FY 2021-22 (Previous Financial Year)
Not Applicable

Reclaimed products and their packaging materials (as percentage of products sold) for each product category.

Reclaimed products and their packaging materials as % of total products sold Indicate product category in respective category Not Applicable

PRINCIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains

Essential Indicators

1.a. Details of measures for the well-being of employees.

		% of employees covered by	% of employees covered by	% of employees covered by	% of employees covered by	% of employees covered by	% of employees covered by	% of employees covered by	% of employees covered by
Category	Total	Health insurance		Accident insurance		Maternity benefits		Paternity Benefits		Day Care facilities
	(A)	No. (B)	% (B/ A)	No. (C)	% (C/A)	No. (D)	% (D/A)	No. (E)	% (E/ A)	No. (F)	% (F/ A)
Permanent employees
Male	5417	5417	100%	5417	100%	-	-	0	-	5417	100%
Female	98	98	100%	98	100%	98	100%	-	-	98	100%
Total	5515	5515	100%	5515	100%	98	100%	0	-	5515	100%
Other than Permanent		employees
Male	5943	0	-	5943	100%	-	-	0	-	5943	100%
Female	32	0	-	32	100%	0	-	-	-	32	100%
Total	5975	0	-	5975	100%	0	-	0	-	5975	100%

NCC LIMITED

STATUTORY REPORTS

b. Details of measures for the well-being of workers:

		% of workers covered by	% of workers covered by	% of workers covered by	% of workers covered by	% of workers covered by	% of workers covered by	% of workers covered by	% of workers covered by	% of workers covered by	% of workers covered by
Category	Total	Health insurance		Accident insurance		Maternity benefits		Paternity Benefits		Day Care facilities
	(A)	No. (B)	% (B/A)	No. (C)	% (C/A)	No. (D)	% (D/A)	No. (E)	% (E/A)	No. (F)	% (F/A)
Permanent	workers
Male		Not Applicable
Female
Total
Other than	Permanent workers
Male	8862	0	-	8862	100	N/A	N/A	0	-	8862	100%
Female	259	0	-	259	100	0	-	N/A	N/A	259	100%
Total	9121	0	-	9121	100	0	-	0	0	9121	100%

Details of retirement benefits.

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FY 2022-23 FY 2021-22
(Current Financial Year) (Previous Financial Year)
No. of Deducted and No. of
No. of workers No. of workers Deducted and
Benefits employees deposited employees
Covered as Covered as deposited with
covered as a % with the covered as a %
a % of total a % of total the authority
of total authority of total
workers workers (Y/N/N.A.)
employees (Y/N/N.A.) employees
PF 100% 100% Y 100% 100% Y
Gratuity 100% - Y 100% - Y
ESI 100% - Y 100% - Y
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3. Accessibility of workplaces

Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard.

Yes, the Company ensures that all its premises and offices are accessible to employees and workers with disabilities. Further, NCC is deploying amenities for the differently abled employees at plant and other work locations to improve accessibility.

Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a web-link to the policy.

The company currently does not have a documented “Equal Opportunity Policy”, but it provides equal opportunity to all. NCC is planning to formulate an “Equal Opportunity Policy” at the group level which will be in accordance with Rights of Persons with Disabilities Act, 2016 & other core values of the company.

Annual Report 2022-23

Return to work and Retention rates of permanent employees and workers that took parental leave.

	Permanent employees	Permanent employees	Permanent workers	Permanent workers
Gender	Return to work rate	Retention rate	Return to work rate	Retention rate
Male	Not Applicable	Not Applicable	Not Applicable
Female	100%	100%
Total	100%	100%

Is there a mechanism available to receive and redress grievances for the following categories of employees and workers? If yes, give details of the mechanism in brief.

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(If Yes, then give details of the mechanism in brief)
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	(If Yes, thengive details of the mechanism in brief)

Permanent Workers	Not Applicable
Other than Permanent Workers	Yes, on site HR/admin personnel are responsible for addressing grievances of contractual workers which is done through on-site real-time feedback & resolution.
Permanent Employees	Yes, complaints can be raised through e-mail or phone number i.e. HR help desk. These grievances are then resolved by the HR team readily if they require minimal intervention & are escalated to HR head if a swift resolution is notpossible
Other than Permanent Employees

Membership of employees and worker in association(s) or Unions recognised by the listed entity.

	FY 2022-23 (Current Financial Year)	FY 2022-23 (Current Financial Year)	FY 2022-23 (Current Financial Year)	FY 2021-22 (Previous Financial Year)	FY 2021-22 (Previous Financial Year)	FY 2021-22 (Previous Financial Year)
Category	Total employees / workers in respective category (A)	No. of employees / workers in respective category, who are part of association(s) or Union(B)	% (B/A)	Total employees / workers in respective category (C)	No. of employees / workers in respective category, who are part of association(s) or Union (D)	% (D/C)
Total Permanent Employees	5515	0	-	5109	0	-
Male	5417	0	-	5026	0	-
Female	98	0	-	83	0	-
Total Permanent Workers	N/A
Male
Female

NCC LIMITED

STATUTORY REPORTS

Details of training given to employees and workers:

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FY 2021-22 FY 2022-23
(Previous Financial Year) (Current Financial Year)
Category On Health and On Skill On Health and
Total Total On Skill upgradation
safety measures upgradation safety measures
(A) (D)
No. (B) % (B/A) No. (C) % (C/A) No. (E) % (E/D) No. (F) % (F/D)
Employees
Male 10650 8307 78% 134 1.25% 11360 8555 75% 273 2.40%
Female 131 102 78% 4 3.05% 130 90 69% 51 39.23%
Total 10781 8409 78% 138 1.28% 11490 8645 75% 324 2.82%
Workers
Male 7572 6209 82% - - 8862 7267 82% - -
Female 308 252 82% - - 259 212 82% - -
Total 7880 6461 82% - - 9121 7479 82% - -
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Details of performance and career development reviews of employees and worker.

Category	FY 2021-22 (Previous Financial Year)	FY 2021-22 (Previous Financial Year)	FY 2021-22 (Previous Financial Year)	FY 2022-23 (Current Financial Year)	FY 2022-23 (Current Financial Year)	FY 2022-23 (Current Financial Year)
	Total(A)	No.(B)	%(B/A)	Total(C)	No.(D)	%(D/C)
Permanent Employees
Male	5026	5026	100%	5417	5417	100%
Female	83	83	100%	98	98	100%
Total	5109	5109	100%	5515	5515	100%
Permanent Workers
Male	N/A
Female
Total

Health and safety management system
a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No). If yes, what is the coverage of such a system.

Yes, NCC Limited is certified to ISO 45001:2018 Occupational Health and Safety (OHS) Management System standard and it covers all construction project sites and operations. Management systems have been put in place in compliance with ISO 45001:2018 which is consistent with NCC’s vision, philosophy, and QEHS policy. The QEHS Management System outlines the necessary conditions for the organization’s methodical administration and execution.

b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity.

NCC Limited implemented a systematic risk management method to recognize and manage all risks in offices and building project sites. The essential factor in reducing the risk of QEHS in business is the Company’s risk management strategy, which is implemented through five processes (identification, assessment, mitigation, monitoring, and reporting). Prior to beginning any work activity, risk assessments and safe work procedure statements are produced and approved with input from all relevant stakeholders, such as construction engineers, design and planning engineers, and QEHS team members.

Annual Report 2022-23

Documentation, approval, and dissemination to all pertinent parties participating in the activity are all requirements for all identified risks and risk mitigation measures.

c. Whether you have processes for workers to report the work-related hazards and to remove themselves from such risks.

Yes, the company has procedures in place for employees to report hazards at work and safeguard themselves against such risks.

d. Do the employees/ workers of the entity have access to non-occupational medical and healthcare services.

Yes, every project site of the Company is connected to the closest hospital, where employees and workers can easily access services for non-occupational medical and health needs after informing the project site administration department.

Details of safety related incidents, in the following format:

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FY 2022-23 FY 2021-22
Safety Incident/Number Category
(Current Financial Year) (Previous Financial Year)
Lost Time Injury Frequency Rate (LTIFR) (per Employees 0.33 0.03
one million-person hours worked) Workers 2.02 1.38
Employees 9 0
Total recordable work-related injuries
Workers 27 19
Employees 0 1
No. of fatalities
Workers 12 12
High consequence work-related injury or ill- Employees 0 0
health (excluding fatalities) Workers 0 0
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Describe the measures taken by the entity to ensure a safe and healthy workplace.

A project specific EHS plan is created at the start of every new project as part of the QEHS management system, and it establishes the general guidelines for QEHS Management. This EHS plan identifies the risky operations that fall under the purview of the work as well as the risk associated with those operations. It even specifies the required integrated preventive measures (Controls) to mitigate the same.

The Management provides strong demonstrable visible leadership and commitment towards QEHS through personal examples and actions. This is the first principle of the leadership commitment of NCC L.I.F.E. (Live Injury Free Each Day). To promote and foster a constructive attitude towards EHS across NCC Projects and operations, management has taken part in EHS meetings and carried out site inspections and QEHS audits communicated.

This is further supported by the fact that there is a systematic risk management approach in place to locate and manage every risk in projects and units that calls for conformance certification. As a result, a procedure has been set up for performing internal QEHS audits. This procedure requires that internal audits be organized for all ongoing projects, and the Head Office Audit Team must at least once every six months verify it. Based on their status, relevance, and risk profile, specific projects were chosen for frequent audits. In addition to any external audits performed by certified auditors, this was done.

NCC LIMITED

STATUTORY REPORTS

Number of complaints on the following made by employees and workers.

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FY 2022-23 FY 2021-22
(Current Financial Year) (Previous Financial Year)
Pending Filed Pending
Filed during
resolution at Remarks during the resolution at the Remarks
the year
the end of year year end of year
Working Condition s 0 0 - 0 0 -
Health and Safety 0 0 - 0 0 -
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Disclose % of your plants & offices that were assessed (by the entity/ statutory authorities/ third parties) in the current F.Y for health & safety practices & working conditions

% of your plants and offices that were assessed (by entity or statutory authorities or third parties) Health and safety practices 100% Working Conditions

Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks / concerns arising from assessments of health and safety practices and working conditions.

The Company’s Safety Council reviews all accidents and incidents at every project and develops procedures based on risk analysis of information obtained from the relevant project sites. The measurement of occurrences and risky behavior, as well as predictive analysis, all make use of this data. This makes it possible to identify the main risk areas, which in turn directs the projects to actively manage and concentrate resources to avoid any mishaps or catastrophes. This analysis is disseminated among the team members in support of NCC Mission Zero’s accident objective.

In view of this collective approach, efforts have been made in understanding the Company’s high- risk profile holistically as well as in general. QEHS risk management culture has been inculcated across the Company. Various steps have been taken including:

Implementation of QEHS surveillance rating
Developed QEHS training modules on high-risk activities.
Developed standardized template of QEHS Lessons Learnt and these alerts are shared in the centralized knowledge sharing platform which can be accessed by all employees.
Enrolled Subject Matter Experts (SMEs) into the QEHS management community of central knowledge sharing module.
Implementation of senior management audits based on standard checklist developed by the QEHS Council.

The initiatives have succeeded in capturing the high-risk hazardous activities that are prevalent throughout many NCC Business verticals. This helps in the creation of an action plan to improve stakeholders’ capacity to manage such activities with a better level of awareness and appropriate training from qualified external agencies as well as subject matter experts. Every member of organization works hard to connect their behaviors and corporate choices with QEHS excellence in their specific roles.

Leadership Indicators

Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B) Workers (Y/N).
Yes, the company extends its workers and employees life insurance coverage for fatal work-related accidents.

Annual Report 2022-23

Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the value chain partners.

The company has established “Standard Terms and Conditions” for contracts executed with its value chain partners, which include provisions related to payment of taxes and duties, compliance with laws, compliance with statutory obligations, indemnification, audit provisions, and other relevant matters. These terms and conditions are binding on the value chain partners, requiring them to make payments for statutory dues such as PF, gratuity, insurance, taxes, and other obligations. The company conducts regular reviews of these contractual obligations to ensure that its value chain partners comply with their statutory obligations and make necessary payments

Provide the number of employees / workers having suffered high consequence work related injury / ill-health / fatalities (as reported in Q11 of Essential Indicators above), who have been rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment:

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No. of employees/workers that are rehabilitated
and placed in suitable employment or whose
Total no. of affected employees/ workers
family members have been placed in suitable
employment
FY 2022-23 FY 2021-22 FY 2022-23 FY 2021-22
(Current Financial Year) (Previous Financial Year) (Current Financial Year) (Previous Financial Year)
Injuries – 9 Injuries - 0 - -
Employees
Fatalities – 0 Fatalities – 1
Workers Injuries - 27 Injuries - 19 - -
Fatalities - 12 Fatalities - 12
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Does the entity provide transition assistance programs to facilitate continued employability and the management of career endings resulting from retirement or termination of employment? (Yes/ No)

Yes

Disclose % of value chain partners (by the value of business done with them) that were assessed in the current F.Y for health & safety practices & working conditions.

% of value chain partners (by value of business done with such partners) that were assessed Health and safety conditions 100% Working conditions

Note: NCC Limited assessed critical value chain partners

Provide details of any corrective actions taken or underway to address significant risks / concerns arising from assessments of health and safety practices and working conditions of value chain partners.

All observations and non-conformances are properly documented and reported for closeout in accordance with the internal QEHS audit method and assessment carried out. Closeouts are completed and recorded along with their specifics. These details can be acquired from the relevant project locations and operations.

The Company, based on all EHS analysis data gathered, has developed several procedures aligned to Sub-contractor procurement and management. The Health, Safety & Environment Management system has been reviewed and aligned to be a part of and fully incorporated into the contract between sub-contractor and the Company. Its purpose is to set forth the areas of EHS concerns and requirements routinely. This subcontractor system is intended to supplement any contractual requirements, including EHS Management System manual, guidelines, Standard Operating Procedures, any requirements of client, as well as sub-contractor’s own EHS programmes.

NCC LIMITED

STATUTORY REPORTS

The Company evaluated all the suppliers and contractors on their safety infrastructure processes and strengths before awarding a contract. The continued monitoring and measuring of suppliers and contractors ensure a comprehensive safe environment. This is further enhanced with regular refresher training sessions and capacity-building programs. In addition, periodic site visits by the senior management and site audits improve the EHS performance.

PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders

Essential Indicators

Describe the processes for identifying key stakeholder groups of the entity.

The stakeholder identification process at NCC Limited is built around the following procedures marked in order of execution as mentioned below:

Purpose of stakeholder analysis
Identifying potential stakeholders who may affect or may be affected by the business
Stakeholder categorization (internal or external)
Stakeholder prioritization based on impact on the business
Information gathering on stakeholder expectations
Developing a stakeholder engagement plan

In order to make sure that the business is serving its stakeholders’ needs and accomplishing its objectives, it is important to continually monitor and engage key stakeholders in the process of identifying them.

List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.

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Whether Frequency of
identified as Channels of communication engagement Purpose and scope of
Vulnerable (Email, SMS, Newspaper, (Annually/ engagement including
Stakeholder
and Pamphlets, Advertisement, Half yearly/ key topics and concerns
Group
Marginalized Community Meetings, Notice Quarterly / raised during such
Group Board, Website), Other others – please engagement
(Yes/No) specify)
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Stakeholder Group	Whether identified as Vulnerable and Marginalized Group (Yes/No)	Channels of communication (Email, SMS, Newspaper, Pamphlets, Advertisement, Community Meetings, Notice Board, Website), Other	Frequency of engagement (Annually/ Half yearly/ Quarterly / others – please specify)	Purpose and scope of engagement including key topics and concerns raised during such engagement

Employees	No	Circulars, E-mails, Meetings, Corporate Social Initiatives, Welfare Initiatives, In House Magazines, HelpDesk etc.	As and when required	Employee development and benefits, expectations, volunteering, career advancement, etc.
Clients/ Customers	No	E-mails, Official Letters, Customer satisfaction	As and when required	Project delivery, timeline, challenges that are faced during execution, Customer satisfaction and feedback
Suppliers/Sub- contractors	No	E-mails, Meetings, Official Letters	As and when required	Need and expectation, schedule, supply chain issues, need for awareness and other training, their regulatory compliance, EHS performance etc.,
Local communities	Yes	Direct Engagement as well as the execution of a company’s CSR project	As and when required	To seek their feedback and expectation of the CSR programs

Annual Report 2022-23

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Stakeholder Group	Whether identified as Vulnerable and Marginalized Group (Yes/No)	Channels of communication (Email, SMS, Newspaper, Pamphlets, Advertisement, Community Meetings, Notice Board, Website), Other	Frequency of engagement (Annually/ Half yearly/ Quarterly / others – please specify)	Purpose and scope of engagement including key topics and concerns raised during such engagement

Media	No	Press Releases, Quarterly Results, Annual Reports, AGM (shareholder’s interaction), Access information and media interactions	As and when required	Performance reporting, good practices, show cases, awards and showcases, awards and successes, initiatives, etc.
Government	No	Press Releases, Quarterly Results, Annual Reports, Stock Exchange filings, issue specific meetings, representations	As and when required	Reporting requirement, Statutory compliance, authority’s assistance, and solvingissues.
Shareholders	No	E-mail, Press Releases, Quarterly Results, Annual Reports, AGM (Shareholder’s interaction), Quarterly investor presentation, stock exchange filings and corporate website	As and when required	To understand their requirements and expectations, which are crucial to the business
Investors/ Banks & Financial Institutions	No	E-mails, Meetings	As and when required	To evaluate business performance

Leadership Indicators

Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social topics or if consultation is delegated, how is feedback from such consultations provided to the Board.
Feedback/grievances received from various stakeholders are communicated to the Board based on relevance by respective functional leaders
Whether stakeholder consultation is used to support the identification and management of environmental, and social topics (Yes / No). If so, provide details of instances as to how the inputs received from stakeholders on these topics were incorporated into policies and activities of the entity.

The company conducted internal stakeholder consultations to identify material issues that impact its business & day-to-day operations.

Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/ marginalized stakeholder groups.

NCC Limited continuously engaged with vulnerable/ marginalized stakeholder groups as per the stakeholder engagement plan. The Company’s outreach initiatives cater to the underprivileged/marginalized/vulnerable communities residing in underdeveloped areas with a single objective of improving their lives and livelihood through CSR initiatives spearheaded by the CSR team:

a) Skill development – the Company has executed projects such as setting up of Central Instrumentation Laboratory at University College for Women at Koti, Hyderabad that promotes skill development amongst women who still form a vulnerable section of the society & bring them into the workforce.

NCC LIMITED

STATUTORY REPORTS

b) Education- the Company has deployed several projects for better & state of the art education for our children & adults. These projects include support to “Ekal Vidyalayas” (benefiting tribal students), enabling digital classrooms for schools in Kothapeta, upgradation of computer lab at Arts and Science College for Women, Andhra Mahila Sabha, AAS Vidyalaya Education Café (an online platform for educating dropouts) and many more.
c) Healthcare- Access to primary healthcare & pre/postnatal care is basic human right. The Company has taken several measures to benefit communities that are unable to access these basic facilities. Our initiatives include operational expenses for milk banks, support for Aaryajanani Program, eye treatment & surgeries for EWS at LV Prasad Institute & support to setting up charitable diagnostics center & poly clinic at CR Foundation.
d) Rural development- the Company has executed several measures for rural development & empowering our rural communities by developing infrastructure such as roads, drainage lines, water tanks, housing for marginalized & EWS etc.
e) Community building- the Company has supported the peaceful co-existence of communities by enabling them with proper community spaces & gathering infrastructure. Prominent among these is the community center at Aziznagar, R R Dist, Telangana.

PRINCIPLE 5: Businesses should respect and promote human rights

Essential Indicators

1 Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the following format.

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FY 2022-23 FY 2021-22
No. of
No. of employees
Category employees /
Total (A) / workers % (B/A) Total (C) % (D/C)
workers covered
covered (B)
(D)
Employees
Permanent 5515 5515 100% 5109 5109 100%
Other than permanent 5975 5975 100% 5267 5267 100%
Total employees 11490 11490 100% 10376 10376 100%
Workers
Permanent Not Applicable
Other than permanent 9121 9121 100% 7880 7880 100%
Total workers 9121 9121 100% 7880 7880 100%
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Annual Report 2022-23

Details of minimum wages paid to employees and workers, in the following format.

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FY 2022-23 FY 2021-22
(Current Financial Year) (Previous Financial Year)
Equal to More than Equal to More than
Category
Total Minimum Wage Minimum Wage Total Minimum Wage Minimum Wage
(A) (D) %
No. (B) % (B/A) No. (C) % (C/A) No. (E) No. (F) % (F/D)
(E/D)
Employees
Permanent 5515 - - 5515 100% 5109 - - 5109 100%
Male 5417 - - 5417 100% 5026 - - 5026 100%
Female 98 - - 98 100% 83 - - 83 100%
Other than
5975 5975 100% - - 5267 5267 100% - -
Permanent
Male 5943 5943 100% - - 5234 5234 100% - -
Female 32 32 100% - - 33 33 100% - -
Workers
Permanent
Male Not Applicable
Female
Other than
9121 9121 100% - - 7880 7880 100% - -
Permanent
Male 8862 8862 100% - - 7572 7572 100% - -
Female 259 259 100% - - 308 308 100% - -
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Details of remuneration/salary/wages, in the following format.

	Male	Male	Female	Female
	Number	Median remuneration/ salary/ wages of respective category	Number	Median remuneration/ salary/ wages of respective category
Board of Directors(BoD)– Executive Director	5	4,75,31,843	-	-
KeyManagerial Personnel	2	80,73,263	-	-
Employees other than BoD and KMP	5414	5,31,000	94	6,00,570
Workers	Not Applicable, as there are nopermanent workers on the company’spayroll

Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or contributed to by the business? (Yes/No).

The Company is dedicated to upholding and safeguarding human rights. It has a set of guidelines in place such as the Code of Conduct, as well as HR policies and processes that specifically address these concerns. Human rights are a top priority for the organization, and we have a zero-tolerance towards any violations related to human rights. The Company does not have a single focal point for addressing human rights issues, but the HR head of the respective IC is responsible for addressing all human rights related issues & impacts.

NCC LIMITED

STATUTORY REPORTS

Describe the internal mechanisms in place to redress grievances related to human rights issues.

The Company considers human rights to be a fundamental and essential value. It endeavours to uphold fair and ethical business and employment practices by supporting, safeguarding, and advocating for human rights. The Company adhere to zero tolerance towards all forms of slavery, forced labour, child labour, human trafficking, and any kind of physical, sexual, psychological, or verbal abuse.

All grievances that are received by the entity are addressed as and when received by the respective Project Managers / Business unit heads through Admin in Coordination with HR department. All the grievances received are duly investigated and appropriate actions are taken to resolve the issue /complaint. Whenever required, disciplinary actions are initiated as deemed fit and assistance from regulatory authority is sought.

Number of Complaints on the following made by employees and workers:

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FY 2022-23 FY 2021-22
(Current Financial Year) (Previous Financial Year)
Filed Pending Filed Pending
during Resolution at Remarks during Resolution at Remarks
the year the end of year the year the end of year
Sexual Harassment 0 0 - 0 0 -
Discrimination at workplace 0 0 - 0 0 -
Child Labour 0 0 - 0 0 -
Forced Labour/Involuntary Labour 0 0 - 0 0 -
Wages 0 0 - 0 0 -
Other human rights related issues 0 0 - 0 0 -
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Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.

NCC believes that every employee is a trustee of its stakeholders and must adhere to the Company’s Code of Conduct and conduct himself or herself at all times in a professional and ethical manner.

The company has a “Whistle-blower Policy” which encourages stakeholders to bring to the Company’s attention, instances of unethical behaviour, discrimination, harassment, actual or suspected incidents of fraud or violation of the NCC Code of Conduct, that could adversely impact the Company’s operations, business performance and / or reputation. The Company investigates such reported incidents in an impartial manner and takes appropriate action to ensure that the requisite standards of professional and ethical conduct are always upheld.

The policy also mentions about non-retaliation against complainants stating “No employee who reports a violation shall suffer any harassment, retaliation, or adverse employment condition because of such reporting. Any employee who retaliates against a person reporting a violation will be subject to disciplinary proceedings, which may extend to termination of employment.”

Do human rights requirements form part of your business agreements and contracts? (Yes/No).
Yes

Annual Report 2022-23

Percentage of your plants & offices that were assessed (by entity or statutory authorities or third parties) for sexual harassment, discrimination at workplace, Child Labour, Forced Labour/Involuntary Labour, Wages, or other human rights related issues.

% of your plants and offices that were assessed (by entity or statutory authorities or third parties) Child labour Forced/involuntary labour Sexual harassment 100% Discrimination at workplace Wages Others – please specify

Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 9 above.

No significant risks reported in the assessment.

Leadership Indicators

Details of a business process being modified / introduced as a result of addressing human rights grievances/complaints.
Not Applicable
Details of the scope and coverage of any Human rights due diligence conducted.

The Company currently has not conducted any human rights due diligence through a third-party. However, the Company has a Code of Conduct and HR policies that adequately address human rights aspects. Various awareness programs are conducted regularly to sensitize employees and value chain partners to the Code of Conduct and human rights issues and to help understand and adhere to the Company’s policies and practices regarding human rights.

Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of Persons with Disabilities Act, 2016

Yes, the premises / offices are accessible to differently abled visitors, as per the requirements of the Rights of Persons with Disabilities Act, 2016. This shows the NCC’s dedication to fostering inclusive and welcoming environments for everyone.

Percentage of value chain partners that were assessed (by entity or statutory authorities or third parties) for sexual harassment, discrimination at workplace, Child Labour, Forced Labour/Involuntary Labour, Wages or other human rights related issues, along with the corrective action taken to address significant risks & concerns arising from assessments.

% of value chain partners (by value of business done with such partners) that were assessed Sexual harassment Discrimination at workplace Child labour 100% Forced/involuntary labour Wages Others – please specify

Note: NCC Limited assessed critical value chain partners

NCC LIMITED

STATUTORY REPORTS

Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 4 above.

No corrective actions pertaining to Question 4 was necessitated by the Company during the year under review.

PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment

Essential Indicators

Details of total energy consumption (GJ) and energy intensity, in the following format.

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FY 2022-23 FY 2021-22
Parameter
(Current Financial Year) (Previous Financial Year)
Total electricity consumption (A) 337715 561710
Total fuel consumption (B) 2373070 2513960
- -
Energy consumption through other sources (C)
Total energy consumption (A+B+C) 2710785 3075670
(Total energy consumption (Giga Joules) / turnover in crore
204 306
rupees)
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Note: For F.Y 23, data is reported for 191 sites & for F.Y 22, data is reported for 206 sites

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any.

Under the Performance, Achieve and Trade (PAT) Scheme of the Government of India, NCC Limited does not have any sites or facilities that have been designated as designated consumers (DCs).

Provide details of the following disclosures related to water, in the following format.

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FY 2022-23 FY 2021-22
Parameter
(Current Financial Year) (Previous Financial Year)
Water withdrawal by source (in kiloliters)
4(i) Surface water 49811777 49607156
(ii) Groundwater 2053807 184407
(iii) Third party water (Municipal water supplies) 40107033 73286075
(iv) Seawater / desalinated water
(v) Others (Packaged Drinking water)
Total volume of water withdrawal (in kiloliters) (i + ii + iii +
91972617 123077638
iv + v)
Total volume of water consumption (in kiloliters) 91972617 123077638
Water intensity per crore of turnover (Water consumed /
6936 12261
turnover in crores)
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Note: For F.Y 23, data is reported for 101 sites & for F.Y 22, data is reported for 98 sites

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

Annual Report 2022-23

Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and implementation.

Not applicable. The current operational sites are under the Controle of the company’s customers.

Please provide details of air emissions (other than GHG emissions) by the entity, in the following format.

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Please specify FY 2022-23 FY 2021-22
Parameter
unit (Current Financial Year) (Previous Financial Year)
NOx -
SOx -
Particulate matter (PM) -
Not available Not available
Persistent organic pollutants (POP) -
Volatile organic compounds (VOC) -
Hazardous air pollutants (HAP) -
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Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

No

Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) and its intensity, in the following format:

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FY 2022-23 FY 2021-22
Parameter Unit
(Current Financial Year) (Previous Financial Year)
Total Scope 1 emissions (Break-up of the Metric tonnes of
GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, CO2 165901 175747
NF3, if available) equivalent
Total Scope 2 emissions (Break-up of the Metric tonnes of
GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, CO2 75985 126384
NF3, if available) equivalent
Total Scope 1 and Scope 2 emissions per
Crore of turnover MTCO2e/Cr 18.2 30.1
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Note: For F.Y 23 data is reported for 191 sites & for F.Y 22 data is reported for 206 sites

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

No

Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details.

The company replaced CFL fixture with LED light fixtures through which it has estimated a saving potential of 40% in Lighting Load, it has also installed Auto Sliding glass doors at offices to reduce cooling demand. These initiatives have helped the company reduce greenhouse gas emissions.

NCC LIMITED

STATUTORY REPORTS

Provide details related to waste management by the entity, in the following format.

Parameter	Parameter	FY 2022-23 (Current Financial Year)	FY 2021-22 (Previous Financial Year)
Total Wastegenerated(in metric tons)
Plastic waste(A)		Not available	Not available
E-waste(B)
Bio-medical waste(C)
Construction and demolition waste (D)
Batterywaste(E)
Radioactive waste(F)
Other Hazardous waste(G) Please specify
Other Non-hazardous waste generated(H) Please specify(Break-up by composition i.e. by materials relevant to the sector)
Total(A+B + C + D + E + F + G + H)
For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations(in metric tons)
Category of waste
(i)Recycled	Not available		Not available
(ii)Re-used*
(iii)Other recoveryoperations
Total
For each category of wastegenerated, total waste disposed by nature of disposal method(in metric tons)
Category of waste	Not available		Not available
(i)Incineration
(ii)Landfilling
(iii)Other disposal operations
Total

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

No

Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your Company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to manage such wastes.

Not Applicable

Annual Report 2022-23

If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental approvals / clearances are required, please specify details in the following format.

S. No.	Location of operations/offices	Type of operations	Whether the conditions of environmental approval clearance are being complied with? (Y/N) If no, the reasons thereof and corrective action taken, if any.
Nil

Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current financial year

Name and brief details of project	EIA Notification No.	Date	Whether conducted by independent external agency (Yes/ No)	Results communicated in public domain (Yes/ No)	Relevant Web link
EIA, if applicable, is in the scope of the company’s customers

Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and rules thereunder (Y/N). If not, provide details of all such non-compliances, in the following format.

	S. No.	Specify the law / regulation / guidelines which was not complied with	Provide details of the non-compliance	Any fines / penalties / action taken by regulatory agencies such as pollution control boards or by courts	Corrective action taken, if any
	Nil

	Leadership Indicators

Provide break-up of the total energy consumed (GJ) from renewable and non-renewable sources, in the following format.

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FY 2022-23 FY 2021-22
Parameter
(Current Financial Year) (Previous Financial Year)
From renewable sources
Total electricity consumption (A) -- --
Total fuel consumption (B) -- --
Energy consumption through other sources (C) - -
Total energy consumed from renewable sources (A+B+C) - -
From non-renewable sources
Total electricity consumption (D) 337715 561710
Total fuel consumption (E) 2373070 2513960
Energy consumption through other sources (F) - -
Total energy consumed from non-renewable sources (D+E+F) 2710785 3075670
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Note: For F.Y 23, data is reported for 191 sites & for F.Y 22, data is reported for 206 sites

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

100

NCC LIMITED

STATUTORY REPORTS

Provide the following details related to water discharged.

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FY 2022-23 FY 2021-22
Parameter
(Current Financial Year) (Previous Financial Year)
Water discharge by destination and level of treatment (in kilo liters)
(i) To Surface water - -
- No treatment - -
- With treatment – please specify level of treatment - -
(ii) To Groundwater - -
- No treatment - -
- With treatment – please specify level of treatment - -
(iii) To Seawater - -
- No treatment - -
- With treatment – please specify level of treatment - -
(iv) Sent to third-parties - -
- No treatment - -
- With treatment – please specify level of treatment - -
(v) Others - -
- No treatment - -
- With treatment – Tertiary treatment - -
Total water discharged (in kilo liters)
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Note: All the water withdrawn is getting consumed at the sites & therefore there is not effluent production or discharge

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

101

Annual Report 2022-23

Water withdrawal, consumption and discharge in areas of water stress (in kilo liters).
For each facility / plant located in areas of water stress, provide the following information
(i) Name of the area: None
(ii) Nature of operations
(iii) Water withdrawal, consumption, and discharge in the following format:

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FY 2022-23 FY 2021-22
Parameter
(Current Financial Year) (Previous Financial Year)
Water withdrawal by source (in kilolitres)
(i) Surface water - -
(ii) Groundwater - -
(iii) Third party water - -
(iv) Seawater / desalinated water - -
(v) Others - -
Total volume of water withdrawal (in kilolitres) - -
Total volume of water consumption (in kilolitres) - -
Water intensity per rupee of turnover turnover) (Water consumed / - -
Water intensity by the entity (optional) – the relevant metric may be selected - -
Water discharge by destination and level of treatment (in kilolitres)
(i) Into Surface water - -
- No treatment - -
- With treatment – please specify level of treatment - -
(ii) Into Groundwater - -
- No treatment - -
- With treatment – please specify level of treatment - -
(iii) Into Seawater - -
- No treatment - -
- With treatment – please specify level of treatment - -
(iv) Sent to third-parties - -
- No treatment - -
- With treatment – please specify level of treatment - -
(v) Others - -
- No treatment - -
- With treatment – please specify level of treatment - -
Total water discharged (in kilolitres) - -
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102

NCC LIMITED

STATUTORY REPORTS

Please provide details of total Scope 3 emissions and its intensity, in the following format.

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FY 2022-23 FY 2021-22
Parameter Unit
(Current Financial Year) (Previous Financial Year)
Total Scope 3 emissions (Break-up of the GHG Metric tonnes
into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if of CO2 - -
available) equivalent
Total Scope 3 emissions per Crore of turnover
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Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

No

With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide details of significant direct and indirect impact of the entity on biodiversity in such areas along-with prevention and remediation activities.

Not Applicable

If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please provide details of the same as well as outcome of such initiatives, as per the following format.

S. No	Initiative undertaken	Details of the initiative (Web-link, if any, may be provided along-with summary)	Outcome of the initiative
Nil

Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.

The Company has robust framework for managing risks in our organization. All our business verticals have individual Risk Management Councils headed by the “Board of Directors” and comprising of several functional heads ranging from procurement, HR, administration, finance & accounts, operations & others. This council is responsible for evaluating & mitigating various risks arising out of different projects under different verticals. These risks are typically segregated under payment risks, work front risks, execution risks, technology risks, resource problems & other risks. A mitigation plan is provided by the company against all these identified risks. This entire process ensures that the business runs smoothly & any disruptions are predicted and mitigated beforehand.

Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation or adaptation measures have been taken by the entity in this regard.

Nil

Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental impacts.

100% critical value chain partners are assessed

103

Annual Report 2022-23

PRINCIPLE 7: Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent

Essential Indicators

a. Number of affiliations with and industry chambers/ associations.
The Company is a member of 11 trade and industry chambers/ associations.
b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such a body) the entity is a member of/ affiliated to.

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S. Reach of trade and industry chambers/
Name of the trade and industry chambers/ associations
No. associations (State/National)
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S. No.	Name of the trade and industry chambers/ associations	Reach of trade and industry chambers/ associations(State/National)

1	Construction Federation of India	National
2	Builders Association of India	National
3	Construction IndustryDevelopment Council(CIDC)	National
4	Confederation of Indian Industry	National
5	Water SupplyContractors Association	State
6	National HighwayBuilders Federation	National
7	National SafetyCouncil of India	National
8	Federation of Telangana Chamber of Commerce and Industry	State
9	BRICS Chamber of Commerce & Industry	National
10	Employees Federation of South India	National
11	National Human Resources Development	National

Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by the entity, based on adverse orders from regulatory authorities.

There have been no instances where regulatory authorities have issued adverse orders regarding anti-competitive conduct.

Leadership Indicators

Details of public policy positions advocated by the entity.

S. No.	Public policy advocated	Method resorted for such advocacy	Whether information available in the public domain?(Yes/No)	Frequency of Review by Board (Annually/ Half yearly/ Quarterly / Others –please specify)	Web Link, if available
None The Company actively participates in various issues related to business and society by representing itself at both state and national levels. Through these forums, the Company can engage in discussions and collaborate with others on important matters.

104

NCC LIMITED

STATUTORY REPORTS

PRINCIPLE 8: Businesses should promote inclusive growth and equitable development

Essential Indicators

Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial year.

Name and brief details of project	SIA Notification No.	Date of notification	Whether conducted by independent external agency (Yes / No)	Results communicated in public domain (Yes/ No)	Relevant Web Link
Not Applicable

Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity, in the following format.

S. No.	Name of Project for which R&R is ongoing	State	District	No. of Project Affected Families(PAFs)	% of PAFs covered by R&R	Amounts paid to PAFs in the F.Y(In INR)
Not Applicable

Describe the mechanisms to receive and redress grievances of the community.

The company’s CSR team is involved regularly in dialogues with its beneficiaries & local communities. The team takes on ground feedback from community members. This feedback mostly comprises of new demands & improvements to the CSR projects handled by the entity. The CSR team of the company assesses these demands & suggestions and implements them on priority. No specific grievances from the community have been raised for the reporting period.

Percentage of input material (inputs to total inputs by value) sourced from suppliers:

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FY 2022-23 FY 2021-22
Parameter
(Current Financial Year) (Previous Financial Year)
Directly sourced from MSMEs/ small producers 21% 17%
Sourced directly from within the district and neighboring districts 32% 41%
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Leadership Indicators

Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments (Reference: Question 1 of Essential Indicators above).

Details of negative social impact identified	Corrective action taken
Not Applicable

Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as identified by government bodies.

S.No.	State	Aspirational District	Amount Spent in INR
1	Andhra Pradesh	Vishakhapatnam	6.60 Lakhs

105

Annual Report 2022-23

(a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising marginalized /vulnerable groups? (Yes/No)

(b) From which marginalized /vulnerable groups do you procure?
- Not Applicable
(c) What percentage of total procurement (by value) does it constitute?
- Not Applicable
Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the current financial year), based on traditional knowledge:

S. No.	Intellectual Property based on traditional knowledge	Owned/Acquired (Yes/No)	Benefit shared (Yes/ No)	Basis of calculating benefit share
Nil

Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes wherein usage of traditional knowledge is involved.

Name of authority	Brief of the Case	Corrective action taken
Not Applicable

Details of beneficiaries of CSR Projects.

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No. of persons % of beneficiaries
S.
CSR Project benefited from from vulnerable and
No.
CSR Projects marginalized groups
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S. No.	CSR Project	No. of persons benefited from CSR Projects	% of beneficiaries from vulnerable and marginalizedgroups

1	3rd year Operational expenses of Dhaatri’s Milk Bank at Niloufer Hospital, Hyderabad	10000	100
2	3rdyear support funds for implementingAaryajanani Program	600	100
3	Setting up of Central Instrumentation Laboratory at University College for Women at Koti, Hyderabad	500	-
4	Eye treatment and surgery for economically weaker section at no cost - LV Prasad Eye Institute	1000	50
5	Ekal Vidyalaya - Single Teacher informal school for tribals - 30 schools each in AP & TS`. 22000per School	3600	100
6	Dedicated and customised delivery vehicles (3 in No.) for transporation of cooked food	36000	100
7	Students’ requirements (Shoes, Belt, Socks etc) and digital classroom for ZPHS and MPPS Schools at Kothapeta, Hyderabad	1150	100
8	Upgradation of Computer Lab at Arts and Science College for Women, Andhra Mahila Sabha, Hyderabad	500	-
9	Unground Drainage and other rural developmentprojects	1800	100
10	Education for children of deceased employees	25	100
11	Maintenance expenses of the buildings and the infrastructure created at Antervedipalem, E G Dist, A.P.	444	100
12	Construction of Rural Housingand other Rural Development Projects	120	100

106

NCC LIMITED

STATUTORY REPORTS

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No. of persons % of beneficiaries
S.
CSR Project benefited from from vulnerable and
No.
CSR Projects marginalized groups
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S. No.	CSR Project	No. of persons benefited from CSR Projects	% of beneficiaries from vulnerable and marginalizedgroups

13	AAS Vidyalaya Education Café - Online education for the dropouts, partiallyschooled & unschooled students in Secondary grades	200	100
14	Layingof CC Road in Allur Village, Chevella Mandal, R R Dist, Telangana	450	100
15	Part funding for setting up of Charitable Diagnostics Centre and Poly Clinic at Chandra Rajeswara Rao Foundation for Social Progress (CR Foundation), in Kondapur, Hyderabad	300	100
16	CommunityCentre at Aziz Nagar Village, R R Dist, Telangana	3000	100
17	Financial assistance (partial) for Enterprise PACS Tele-Radiology Solution to Tata Memorial Cancer Hospital (TMCH) for streamlining the radiology investigations, reportingand data storage	500	100

PRRINCIPLE 9: Businesses should engage with and provide value to their consumers in a responsible manner

Essential Indicators

Describe the mechanisms in place to receive and respond to consumer complaints and feedback.

The company’s business model is based on delivering projects for its clients/customers. It does not have any end consumers as stakeholders. The company conducts regular meetings with its customers/clients to understand their expectations & communicates progress on the project to them during these meetings. It also responds to feedback & requirements that the customers/clients raise at these meetings.

Turnover of products and/ services as a percentage of turnover from all products/service that carry information about.

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----- Start of picture text -----

Parameter As a percentage to total turnover
----- End of picture text -----

Environmental and social parameters relevant to the product Not applicable. As we don’t have specific consumer Safe and responsible usage product or product range Recycling and/or safe disposal

Number of consumer complaints in respect of the following:

	FY 2022-23 (Current Financial Year)	FY 2022-23 (Current Financial Year)		FY 2021-22 (Previous Financial Year)	FY 2021-22 (Previous Financial Year)
	Received during the year	Pending resolution at end ofyear	Remarks	Received during the year	Pending resolution at end ofyear
Dataprivacy	Nil
Advertising
Cyber-security
Deliveryof essential services
Restrictive Trade Practices
Unfair Trade Practices
Other

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Details of instances of product recalls on account of safety issues.

	Number	Reasons for recall
Voluntaryrecalls	Not Applicable
Forced recalls

Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a web-link of the policy.
Yes, the company has an overall IT Security Policy within which it specifies controls that covers data privacy.
Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty / action taken by regulatory authorities on safety of products / services.
Not Applicable

Leadership Indicators

Channels / platforms where information on products and services of the entity can be accessed (provide web link, if available).
Information relating to all the business provided by the Company are available on the Company’s website.
NCC (ncclimited.com)
Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.
Not Applicable
Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.
Not Applicable
Does the entity display product information on the product over and above what Is mandated as per local laws? (Yes/No/Not Applicable) If yes, provide details in brief?
Not Applicable

Did your entity carry out any survey with regard to consumer satisfaction relating to the major products / services of the entity, significant locations of operation of the entity or the entity as a whole? (Yes/No)

The Company operates more in B2B model. The company conducts regular meetings with its customers/clients to get feedback & requirements from them, if any.

Provide the following information relating to data breaches
a. Number of instances of data breaches along-with impact

Nil

b. Percentage of data breaches involving personally identifiable information of customers
None. We do not hold any personally identifiable information of Customers. Our customers are B2B customers generally government entities

108

NCC LIMITED

FINANCIAL STATEMENTS

STANDALONE FINANCIAL STATEMENTS

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Annual Report 2022-23

INDEPENDENT AUDITOR’S REPORT

To the Members of

NCC Limited

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying standalone Ind AS financial statements of NCC Limited (“the Company”), which includes 5 branches and 30 joint operations comprising the Balance sheet as at March 31, 2023, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the standalone Ind AS financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the standalone Ind AS financial statements”).

In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of reports of branch auditors and other auditors on separate financial statements and on the other financial information of the branches and joint operations referred to in Other Matter paragraph below, the aforesaid standalone Ind AS financial statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

Company in accordance with the ‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone Ind AS financial statements for the financial year ended March 31, 2023. These matters were addressed in the context of our audit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the standalone Ind AS financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone Ind AS financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone Ind AS financial statements.

We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements’ section of our report. We are independent of the

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FINANCIAL STATEMENTS

Key audit matters How our audit addressed the key audit matter Trade Receivable and Contract Assets (as described in Note 6, 10, 15 and 15.1 of the standalone Ind AS financial statements) Total trade receivables and total contract assets Our audit procedures amongst others included the following:

Total trade receivables and total contract assets amounting to 2,945.14 crores and 5,355.32 crores respectively, represents approximately 53.21% of the total assets of the Company as at March 31, 2023.

We understood and tested on a sample basis the design and operating effectiveness of management controls over the recognition and the recoverability of the trade receivables and contract assets.

In assessing the recoverability of the aforesaid balances and determination of allowance for expected credit loss, management’s judgement involves consideration of aging status, historical payment records, evaluation of litigations, the likelihood of collection based on the terms of the contract and the credit information of its customers.

We performed test of details and tested relevant contracts, documents and subsequent settlements for material trade receivable balances and amounts included in contract assets that are due on performance of future obligations.
We tested the aging of trade receivables at the year end.

We performed test of details and tested relevant contracts and documents with specific focus on measurement of work completed as at the year end for material unbilled revenue balances included in contract asset.

Management estimation is required in the measurement of work completed as at year end for recognition of unbilled revenue.

We performed additional procedures, in respect of material over-due trade receivables and long outstanding contract assets, i.e. tested historical payment records, correspondence with customers and legal advice obtained by the management on litigations from legal experts.

We considered this as key audit matter due to the materiality of the amounts and significant estimates and judgements as stated above.

We evaluated the competence, capabilities and objectivity of the aforesaid legal experts
• We performed additional procedures in respect of balances disclosed in note 46, which include review of communications to/ from customers, physical inspection of work done in respect of unbilled revenue, verification of last bills certified, etc.
We assessed the allowance for expected credit loss made by management.

Carrying value of Investment made in subsidiary (as described in Note 4.3 of the standalone Ind AS financial statements)

Our audit procedures amongst others included the following:

The Company’s carrying value of investment in NCC Infrastructure Holdings Limited (‘NCCIHL’), a • subsidiary, as at March 31, 2023 is 388.53 crores which is higher by 185.66 crores as compared to the Company’s share of net worth in NCCIHL as per its • audited financial statements, (refer note 4.3)

We obtained and read management’s assessment of the recoverable amount of the investment.

We traced the net worth of NCCIHL to the audited financial statements of NCCIHL as at and for the year ended March 31, 2023, audited by another firm of chartered accountants.

Management’s assessment of the recoverable amount of the investment in the above subsidiary has been • identified as a key audit matter due to the significance of the carrying value of the investment and that it requires the management to make significant estimate • of future cash flows including from the claims filed/ won at arbitration by NCCIHL which are sub-judice and not accounted for, by taking into consideration • the Management’s internal assessment and legal advice on the tenability of these claims.

We obtained a summary of the claims filed by NCCIHL but not accounted for. We read and assessed the legal advice obtained by the Company from expert in respect of the tenability of the above claims.

We obtained and read the arbitration orders received in favor of NCCIHL.

We evaluated the competence, capabilities and objectivity of the aforesaid expert.

We assessed the allowance for impairment made by management.

We have determined that there are no other key audit matters to communicate in our report.

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Information Other than the Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report, but does not include the standalone Ind AS financial statements and our auditor’s report thereon.

Our opinion on the standalone Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management for the Standalone Ind AS Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone Ind AS financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the

Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone

Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone Ind AS financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our

112

NCC LIMITED

FINANCIAL STATEMENTS

conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the standalone Ind AS financial statements, including the disclosures, and whether the standalone Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
For the branches and joint operations included in the standalone Ind AS financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone Ind AS financial statements for the financial year ended March 31, 2023 and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matter

We did not audit the financial statements and other financial information of 4 branches and 11 joint operations included in the accompanying standalone Ind AS financial statements of the Company whose financial statements and other financial information reflect total assets of 256.24 crores as at March 31, 2023 and the total revenues of 247.51 crores and net cash inflows of ` 7.99 crores for the year ended on that date. These financial statements/information of these branches and joint operations have been audited by the branch auditors and other auditors respectively, whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and

disclosures included in respect of branches and joint operations, is based solely on the report of such branch auditors and other auditors respectively.

Of these, 1 branch is located outside India whose financial statements and other financial information have been prepared in accordance with accounting principles generally accepted in their respective country and which has been audited by branch auditors under generally accepted auditing standards applicable in their respective country. The Company’s management has converted the financial statement of such branch located outside India from accounting principles generally accepted in their respective country to accounting principles generally accepted in India. We have audited these conversion adjustments made by the Company’s management. Our opinion in so far as it relates to the balances and affairs of such branch located outside India is based on the report of branch auditors and the conversion adjustments prepared by the management of the Company and audited by us.

Our opinion on the standalone Ind AS financial statements and our report on Other Legal and Regulatory requirements below is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure 1” a statement on the matters specified in paragraphs 3 and 4 of the Order.
As required by Section 143(3) of the Act, we report that:
(a) We have sought and 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 it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from the branches not visited by us;
(c) The reports on the accounts of the branch offices of the Company audited under Section 143(8) of the Act by branch auditors have been sent to us and have been properly dealt with by us in preparing this report;
(d) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account and with the returns received from the branches not visited by us;

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(e) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(f) On the basis of the written representations received from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the Act;
(g) With respect to the adequacy of the internal financial controls with reference to these standalone Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report;
(h) In our opinion, the managerial remuneration for the year ended March 31, 2023 has been paid/provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act; and
(i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements – Refer Note 34(i) and 41 to the standalone Ind AS financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
iv.a) The management has represented that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in

writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

b) The management has represented that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c) Based on such audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.
v. The dividend declared or paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.
vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only with effect from April 1, 2023, reporting under this clause is not applicable.

For S.R. Batliboi & Associates LLP

Chartered Accountants ICAI Firm Registration Number: 101049W/E300004

per Navneet Rai Kabra

Partner

Membership Number: 102328 UDIN: 23102328BGSBNB9829

Place of Signature: Hyderabad Date: May 26, 2023

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FINANCIAL STATEMENTS

Annexure 1, referred to in paragraph 1 of our report of even date

Re: NCC Limited (‘The Company’)

In terms of the information and explanations sought by us and given by the Company and the books of account and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that:

(i)(a)(A) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.
(B) The Company has maintained proper records showing full particulars of intangible assets.
(i)(b) A major portion of property, plant and equipment have been physically verified by the management in accordance with the programme of verification, which, in our opinion, provides for physical verification of all property, plant and equipment at reasonable interval having regard to the size of the Company and nature of its assets and no material discrepancies were identified on such verification.
(i)(c) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in note 3.4 to the financial statements are held in the name of the Company except two immovable properties as indicated in the below mentioned cases:

Description of the item of property	Gross Carrying Value	Title deeds held in the name of	Whether title deed holder is a promoter, director or relative# of promoter/ director or employee of promoter/director	Period held – Indicate range, where Appropriate*	Reason for not being held in name of company
Land	15.00 Crores	NCC Urban Infrastructure Limited	Subsidiary of the company	31.12.2020	Refer Note 3.4 of the financial statements
Land	5.13 Crores	Vaidehi Avenues Limited	No	01.04.2020	Refer Note 3.4 of the financial statements

*the above dates are date of purchase of the property by the Company.

(i)(d) The company has not revalued its property, plant and equipment (including right of use assets) or intangible assets during the year.
(i)(e) No proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(ii)(a) The management has conducted physical verification of inventory at reasonable intervals during the year. In our opinion and according to the information and explanations given to us, the coverage and procedure

of such verification by the management is appropriate and no discrepancies of 10% or more in the aggregate for each class of inventory were noticed on such physical verification.

(ii)(b) As disclosed in note 21.3 to the financial statements, the Company has been sanctioned working capital limits in excess of ` five crores in aggregate from banks and/or financial institutions during the year on the basis of security of current assets of the Company. The quarterly returns/statements filed by the Company with such banks and financial institutions are in agreement with the books of accounts of the Company.

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(iii)(a) During the year, the Company has provided loans to other entities, the details of which are tabulated below:

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(Amounts in INR Crores)
Particulars Loans
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Particulars	Loans

Aggregate amountgranted/ provided duringtheyear
- Subsidiaries	-
- Others	25
Balance outstandingas at the balance sheet date in respect of above cases
- Subsidiaries	26.47
- Others	336.83

(iii)(b) During the year, the investments made, guarantees provided, securities given and the terms and conditions of all loans granted are not prejudicial to the company’s interest.
(iii)(c) The Company has granted loans during the year to companies, where the schedule of repayment of principal and payment of interest has been stipulated and the repayment or receipts are regular except in case of repayment of principal and interest (refer clause iii(e) below for principal and interest amount of loans renewed) and payment of interest dues by NCC Infrastructure Holdings Mauritius Pte. Ltd. where the Company has waived off the interest receivable.
(iii)(d) There are no amounts of loans and advance in the nature of loans granted which are overdue for more than ninety days.
(iii)(e) The Company had granted loans to company which had fallen due during the year. The Company had renewed such loan during the year to such party to settle the dues which had fallen due for the existing loans.

The aggregate amount of such loans renewed and the percentage of the aggregate to the total loans granted during the year are as follows:

Name of Party	Aggregate amount of loans granted during theyear	Aggregate overdue amount settled by renewal	Percentage of the aggregate to the total loans during theyear
NCC Vizag Urban Infrastructure Private Limited (Subsidiary of the Company till March 30, 2022)	10	10*	100%

*Excluding interest accrued on the loan of ` 10 cr

(iii)(f) The Company has not granted any loans or advances in the nature of loans, either repayable on demand or without specifying any terms or period of repayment to companies, firms, Limited Liability Partnerships or any other parties. Accordingly, the requirement to report on clause 3(iii)(f) of the Order is not applicable to the Company.
(iv) Loans, investments, guarantees and security in respect of which provisions of sections 185 and 186 of the Companies Act, 2013 are applicable have been complied with by the Company.
(v) The Company has neither accepted any deposits from the public nor accepted any amounts which are deemed to be deposits within the meaning of sections 73 to 76 of the Companies Act and the rules made thereunder, to the extent applicable. Accordingly, the requirement to report on clause 3(v) of the Order is not applicable to the Company.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the construction services, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
(vii)(a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues including goods and service tax, provident fund, employees’ state insurance, income-tax, sales tax, service tax, duty of custom, duty of excise, value added tax, cess and other statutory dues have been applicable to it. According to the information and explanations given to us and based on audit procedures performed by us, no undisputed amounts payable in respect of these statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

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FINANCIAL STATEMENTS

(vii)(b) According to the records of the Company, the dues outstanding of income-tax, sales-tax, service tax, custom duty, excise duty, Goods and Service tax, value added tax and cess on account of any dispute, are as follows:

(` in crores)

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Nature of Period to which the Disputed Paid under
Statute Forum where dispute is pending
the dues amount relates Amount protest
----- End of picture text -----

Statute	Nature of the dues	Forum where dispute is pending	Period to which the amount relates	Disputed Amount	Paid under protest

Central Sales Tax Act (CST) and Sales Tax (VAT) of various States	CST	Appellate Authority, Bhopal	2011-15	0.72	0.49
	CST	Deputy Commissioner of Commercial Taxes, Ranchi, Jharkhand	2014-15	0.31	-
	CST	Sales Tax Tribunal, Mumbai.	2010-11	8.63	0.46
	VAT	Additional Commissioner, AP	2012-13	12.47	8.21
	VAT	Additional Commissioner, Grade-2 (Appeals), Commercial Tax, Range-5 Lucknow	2006-07	1.55	0.16
	VAT	Addl. Commissioner(CT), West Bengal	2010-11	20.32	-
	VAT	Commissioner of Sales Tax, New Delhi	2009-11 & 2012-14	9.79	1.53
	VAT	Appellate DeputyCommissioner, Kerala	2008-09	0.31	0.05
	VAT	Additional Commissioner, West Bengal	2014-15	2.77	2.93
	VAT	Commisioner of Sales Tax, Kerala	2012-14	2.13	-
	VAT	Joint Commissioner,(Appeals), SGST, Kerala	2016-17	1.04	1.04
	VAT	Deputy Commissioner of Commercial Taxes, Ranchi, Jharkhand	2014-15	0.32	0.15
	VAT	Hon’ble High Court of Andhra Pradesh	2005-06 and 2014-15 to 2017-18	7.76	0.50
	VAT	Hon’ble High Court of Orissa	2007-12	9.72	3.09
	VAT	Hon’ble High Court of Tamil Nadu	2006-07	0.44	-
	VAT	Sales Tax Appellate Tribunal, Andhra Pradesh	2005-09 and 2012-13	11.99	11.99
	VAT	Sales Tax Tribunal, Mumbai.	2010-13	2.93	0.16
	VAT	Sr.Joint Commissioner(Appeals), West Bengal	2008-10 & 2012-13	31.93	0.94
	VAT	Appellate Deputy Commissioner, Hyderabad	2007-10 & 2013-14 to 2015-17	37.08	37.08
	VAT	Sales Tax Appellate JC, Andhra Pradesh	2010-12	14.76	14.76
	VAT	Joint Commissioner, Lucknow	2013-17	44.32	29.48
	EntryTax	Hon’ble High Court of Andhra Pradesh	2012-13	0.99	0.50
	EntryTax	Hon’ble High Court of Orissa	2007-2012	0.74	-
	VAT	Joint Commissioner, West Bengal		8.70	6.78
	Sales Tax	Hon’ble High Court of Andhra Pradesh	1994-95	0.44	0.27
	VAT	Joint Commissioner, Lucknow(Appeals)	2017-18	2.95	2.29
	Sales Tax	Sales Tax Appellate Tribunal, Andhra Pradesh	2000-01	0.69	0.10
Central Excise Act 1944	Excise Duty	CESTAT, Bangalore	2007-08	0.46	0.10
Finance Act 1994	Service Tax	CESTAT, Bangalore	2005-12	73.06	0.80
	Service Tax	CESTAT, Hyderabad	2010-15	7.87	0.48
	Service Tax	Hon’ble High Court of Andhra Pradesh	2007-09	13.02	-

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

(` in crores)

Nature of loan taken	Name of lender	Amount of loan as at March 31, 2023	Name of the subsidiary, joint venture, associate	Relation	Details of security pledged	Remarks
Cash Credit and Working Capital Demand Loans	Consortium of 13 banks	`720.39 crores	NCC Infrastructure Holdings Limited & NCC Urban Infrastructure Limited	Subsidiary	Refer Note 4.3 of the financial statements	None

(x)(a) The Company has not raised any money way of initial public offer or further public offer (including debt instruments) and hence, reporting under clause 3(x)(a) is not applicable to the Company.
(x)(b) According to the information and explanations given by the management, the Company has complied with provisions of section 42 of the Companies Act, 2013 in respect of Private Placement of shares during the year. According to the information and explanations given by the management, we report that the amounts raised, have been used for the purposes for which the funds were raised.
(xi)(a) No fraud by the Company or no fraud on the Company has been noticed or reported during the year.
(xi)(b) During the year, no report under sub-section (12) of section 143 of the Companies Act, 2013 has been filed by cost auditor/ secretarial auditor or by us in Form ADT – 4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.
(xi)(c) As represented to us by the management, there are no whistle blower complaints received by the Company during the year.
(xii)(a) The Company is not a nidhi company as per the provisions of the Companies Act, 2013. Therefore, the requirement to report on clause 3(xii)(a) of the Order is not applicable to the Company.
(xii)(b) The Company is not a nidhi company as per the provisions of the Companies Act, 2013. Therefore, the requirement to report on clause 3(xii)(b) of the Order is not applicable to the Company.
(xii)(c) The Company is not a nidhi company as per the provisions of the Companies Act, 2013. Therefore, the requirement to report on clause 3(xii)(c) of the Order is not applicable to the Company.
(xiii) Transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the standalone Ind AS financial statements, as required by the applicable accounting standards.
(xiv)(a) The Company has an internal audit system commensurate with the size and nature of its business
(xiv)(b) The Internal Audit reports of the Company issued till date, for the period under audit have been considered by us.

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FINANCIAL STATEMENTS

(xv) The Company has not entered into any non-cash transactions with directors or persons connected with its directors and hence requirement to report on clause 3(xv) of the Order is not applicable to the Company.
(xvi)(a) The provisions of section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) are not applicable to the Company. Accordingly, the requirement to report on clause (xvi)(a) of the Order is not applicable to the Company.
(xvi)(b) The Company has not conducted any Non-Banking Financial or Housing Finance activities without obtained a valid Certificate of Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act, 1934.
(xvi)(c) The Company is not a Core Investment Company as defined in the regulations made by Reserve Bank of India. Accordingly, the requirement to report on clause 3(xvi) of the Order is not applicable to the Company.
(xvi)(d) The Group has one Core Investment Company as part of the Group.
(xvii) The company has not incurred cash losses in the current financial year and in the immediately preceding financial year respectively.
(xviii) There has been no resignation of the statutory auditors during the year and accordingly the provisions of clause 3 (xviii) of the order are not applicable to the Company.
(xix) On the basis of the financial ratios disclosed in note 47 to the financial statements, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the
audit report that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.
(xx)(a) In respect of other than ongoing projects, there are no unspent amounts that are required to be transferred to a fund specified in Schedule VII of the Companies Act (the Act), in compliance with second proviso to sub section 5 of section 135 of the Act. This matter has been disclosed in note 39(d) to the financial statements.
(xx)(b) All amounts that are unspent under section (5) of section 135 of Companies Act, pursuant to any ongoing project, has been transferred to special account in compliance of with provisions of sub section (6) of section 135 of the said Act. This matter has been disclosed in note 39(d) to the financial statements.

For S.R.BATLIBOI & ASSOCIATES LLP

Chartered Accountants ICAI Firm registration number: 101049W/E300004

Per Navneet Rai Kabra

Partner Membership No.102328 UDIN: 23102328BGSBNB9829

Place: Hyderabad Date: May 26, 2023

119

Annual Report 2022-23

Annexure 2 to the Independent Auditor’s Report of even date on the Standalone IND AS Financial Statements of NCC Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls with reference to these standalone Ind AS financial statements of NCC Limited (“the Company”) as of March 31, 2023 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (“ICAI”). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls with reference to these standalone Ind AS financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, as specified under section 143(10) of the Companies Act 2013, to the extent applicable to an audit of internal financial controls, both issued by ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to these standalone Ind AS financial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to these standalone Ind AS financial statements and their operating effectiveness. Our audit of internal financial controls with reference to standalone Ind AS financial statements included obtaining an understanding of internal financial controls

with reference to these standalone Ind AS financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls with reference to these standalone Ind AS financial statements.

Meaning of Internal Financial Controls With Reference to these Standalone Ind AS Financial Statements

A company’s internal financial controls with reference to these standalone Ind AS financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial controls with reference to these standalone Ind AS financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the standalone Ind AS financial statements.

Inherent Limitations of Internal Financial Controls with Reference to these Standalone Ind AS Financial Statements

Because of the inherent limitations of internal financial controls with reference to these standalone Ind AS financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to these standalone Ind AS financial statements to future periods

120

NCC LIMITED

FINANCIAL STATEMENTS

are subject to the risk that the internal financial control with reference to these standalone Ind AS financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to these standalone Ind AS financial statements and such internal financial controls with reference to these standalone Ind AS financial statements were operating effectively as at March 31, 2023, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.

For S.R. Batliboi & Associates LLP

Chartered Accountants

ICAI Firm Registration Number: 101049W/E300004

per Navneet Rai Kabra

Partner Membership Number: 102328 UDIN: 23102328BGSBNB9829

Place of Signature: Hyderabad Date: May 26, 2023

121

Annual Report 2022-23

BALANCE SHEET AS AT MARCH 31, 2023

(` in crores)

==> picture [494 x 504] intentionally omitted <==

----- Start of picture text -----

AS AT AS AT
NOTE
MARCH 31, 2023 MARCH 31, 2022
ASSETS
Non Current Assets
Property, Plant and Equipment 3 1,163.35 1,063.71
Capital Work in Progress 3 14.74 7.02
Investment Property 3.1 114.13 159.85
Investment Property under Construction 3.1 107.65 103.47
Other Intangible Assets 3.2 0.74 0.72
Intangible Assets under Development 3.2.1 6.91 -
Financial Assets
Investments in Associates 4.1 7.08 7.08
Other Investments 4.1 866.34 886.34
Loans 5 176.48 197.49
Trade Receivables 6 157.05 107.96
Other Financial Assets 7 88.89 140.20
Deferred Tax Assets (Net) 8 47.53 54.14
Non Current Tax Assets (Net) 14 281.36 149.63
Other Non Current Assets 15 346.56 233.10
Total Non - Current Assets 3,378.81 3,110.71
Current Assets
Inventories 9 1,077.84 787.78
Financial Assets
Other Investments 4.2 1.10 1.07
Trade Receivables 10 2,788.09 2,384.27
Cash and Cash Equivalents 11.1 227.41 235.39
Bank balances other than above 11.2 418.22 323.15
Loans 12 195.18 210.32
Other Financial Assets 13 306.08 285.59
Current Tax Assets (Net) 14.1 10.04 74.22
Other Current Assets 15.1 7,196.90 6,414.11
Total Current Assets 12,220.86 10,715.90
Total Assets 15,599.67 13,826.61
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122

NCC LIMITED

FINANCIAL STATEMENTS

BALANCE SHEET AS AT MARCH 31, 2023 (contd.)

(` in crores)

==> picture [494 x 363] intentionally omitted <==

----- Start of picture text -----

AS AT AS AT
NOTE
MARCH 31, 2023 MARCH 31, 2022
EQUITY AND LIABILITIES
Equity
Equity Share Capital 16 125.57 121.97
Other Equity 17 6,196.33 5,681.20
Total Equity 6,321.90 5,803.17
Liabilities
Non Current Liabilities
Financial Liabilities
Borrowings 18 83.08 82.03
Trade Payables 19 22.19 19.91
Provisions 20 56.20 52.52
Total Non Current Liabilities 161.47 154.46
Current Liabilities
Financial Liabilities
Borrowings 21 896.49 1,102.05
Trade Payables 22
Total outstanding dues of micro and small enterprises 47.28 34.03
Total outstanding dues of creditors other than micro
4,753.27 4,226.63
and small enterprises
Other Financial Liabilities 23 106.87 87.90
Provisions 24 72.78 64.33
Other Current Liabilities 25 3,239.61 2,354.04
Total Current Liabilities 9,116.30 7,868.98
Total Equity and Liabilities 15,599.67 13,826.61
----- End of picture text -----

The accompanying notes are an integral part of the financial statements

In terms of our report attached

For S.R. BATLIBOI & ASSOCIATES LLP

For and on behalf of the Board

ICAI Firm Registration No. 101049W/E300004 CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA

Partner Membership No. 102328

K. KRISHNA RAO E.V.P (F&A) / CFO

A.A.V. RANGA RAJU

Managing Director / CEO (DIN No: 00019161)

M.V. SRINIVASA MURTHY

Company Secy. & Sr. E.V.P (Legal)

A.G.K. RAJU

Executive Director (DIN No: 00019100)

Hyderabad, May 26, 2023

123

Annual Report 2022-23

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2023

(` in crores)

==> picture [494 x 387] intentionally omitted <==

----- Start of picture text -----

YEAR ENDED YEAR ENDED
NOTE
MARCH 31, 2023 MARCH 31, 2022
INCOME
Revenue from Operations 26 13,351.32 9,930.03
Other Income 27 152.25 108.21
Total Income 13,503.57 10,038.24
EXPENSES
Cost of Materials Consumed 28 4,750.99 3,393.62
Construction Expenses 29 1,330.96 1,177.82
Sub-Contractors Work Bills 5,099.66 3,700.78
Employee Benefits Expense 30 520.42 429.13
Finance Costs 31 510.00 459.60
Depreciation and amortisation expenses (Refer note 3, 3.1 and 3.2) 199.81 182.34
Other Expenses 32 306.77 232.57
Total Expenses 12,718.61 9,575.86
Profit Before Exceptional Items and Tax 784.96 462.38
Exceptional Items (Net) 40 - 145.64
Profit Before Tax 784.96 608.02
Tax Expense 33
Current Tax (including earlier year taxation) 207.74 130.21
Deferred Tax 8.01 (12.31)
215.75 117.90
Profit for the year 569.21 490.12
Other comprehensive income / (loss)
Items that will not be reclassified to profit or loss
Remeasurement gains / (losses) of the defined benefit plans (5.55) (2.74)
Income tax effect on the above 1.40 0.69
Items that may be reclassified to profit or loss
Exchange differences in translating the financial statements of
(0.41) (0.77)
foreign operations
Other comprehensive income / (loss) for the year (net of taxes) (4.56) (2.82)
Total comprehensive income for the year 564.65 487.30
Earnings per share of face value of 2 each. Basic - 37 9.13 8.04
Diluted - ` 37 9.13 7.98
----- End of picture text -----

The accompanying notes are an integral part of the financial statements

In terms of our report attached

For S.R. BATLIBOI & ASSOCIATES LLP

For and on behalf of the Board

ICAI Firm Registration No. 101049W/E300004 CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA

Partner Membership No. 102328

K. KRISHNA RAO

E.V.P (F&A) / CFO

A.A.V. RANGA RAJU

Managing Director / CEO (DIN No: 00019161)

M.V. SRINIVASA MURTHY

Company Secy. & Sr. E.V.P (Legal)

A.G.K. RAJU

Executive Director (DIN No: 00019100)

Hyderabad, May 26, 2023

124

NCC LIMITED

FINANCIAL STATEMENTS

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2023

A. Equity share capital

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----- Start of picture text -----

Number of shares Amount (` in crores)
----- End of picture text -----

	Number of shares	Amount (`in crores)

Balance as at April 01, 2021	609,846,588	121.97
Add: Issue of Share Capital	-	-
Balance as at March 31, 2022	609,846,588	121.97
Add: Issue of Share Capital	18,000,000	3.60
Balance as at March 31, 2023	627,846,588	125.57

B. Other equity (` in crores)

	Reserves and Surplus	Reserves and Surplus	Reserves and Surplus	Reserves and Surplus	Reserves and Surplus	Items of Other Comprehensive Income / (Loss)	Items of Other Comprehensive Income / (Loss)	Total
	Capital Reserve	Securities Premium	Money received against share warrants (Refer note 16.5)	General Reserve	Retained Earnings	Other items of other comprehen- sive income	Exchange differences on translating financial statement of a foreign operations
As at April 01, 2021	6.99	2,639.62	26.55	1,122.00	1,478.42	(27.13)	(3.76)	5,242.69
Profit for the year	-	-	-	-	490.12	-	-	490.12
Other comprehensive income / (loss) for the year, net of tax	-	-	-	-	-	(2.05)	(0.77)	(2.82)
Total comprehensive income for the year	-	-	-	-	490.12	(2.05)	(0.77)	487.30
Dividend	-	-	-	-	(48.79)	-	-	(48.79)
Transfer to General Reserve	-	-	-	250.00	-	-	-	250.00
Transfer from Retained Earnings	-	-	-	-	(250.00)	-	-	(250.00)
Balance at April 01, 2022	6.99	2,639.62	26.55	1,372.00	1,669.75	(29.18)	(4.53)	5,681.20
Profit for the year	-	-	-	-	569.21	-	-	569.21
Other comprehensive income / (loss) for the year, net of tax	-	-	-	-	-	(4.15)	(0.41)	(4.56)
Total comprehensive income for the year	-	-	-	-	569.21	(4.15)	(0.41)	564.65
Conversion of Warrants into Equity Shares	-	-	(26.55)	-	-	-	-	(26.55)
Premium on Issue of Equity Shares upon conversion of Warrants	-	102.60	-	-	-	-	-	102.60
Dividend	-	-	-	-	(125.57)	-	-	(125.57)
Transfer to General Reserve	-	-	-	350.00	-	-	-	350.00
Transfer from Retained Earnings	-	-	-	-	(350.00)	-	-	(350.00)
Balance at March 31, 2023	6.99	2,742.22	-	1,722.00	1,763.39	(33.33)	(4.94)	6,196.33

The accompanying notes are an integral part of the financial statements

In terms of our report attached

For S.R. BATLIBOI & ASSOCIATES LLP

For and on behalf of the Board

ICAI Firm Registration No. 101049W/E300004 CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA

Partner Membership No. 102328

K. KRISHNA RAO

E.V.P (F&A) / CFO

M.V. SRINIVASA MURTHY

Company Secy. & Sr. E.V.P (Legal)

A.A.V. RANGA RAJU

Managing Director / CEO (DIN No: 00019161)

A.G.K. RAJU Executive Director (DIN No: 00019100)

Hyderabad, May 26, 2023

125

Annual Report 2022-23

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2023

==> picture [494 x 461] intentionally omitted <==

----- Start of picture text -----

(` in crores)
Year ended Year ended
March 31, 2023 March 31, 2022
A. Cash flows from operating activities
Profit before tax 784.96 608.02
Adjustments for:
Depreciation and amortisation expenses 199.81 182.34
Profit on sale of Property, Plant and Equipment and Investment Property (47.33) (2.32)
Finance costs 510.00 459.60
Interest income (75.90) (60.42)
Dividend income (12.24) (11.68)
Trade Receivables / Advances written off 0.42 2.00
Provision for doubtful trade receivables / advances / others 5.00 13.00
Expected credit loss for Unbilled revenue 29.45 30.01
Exceptional items (net) - (145.64)
Rental income from investment properties (10.30) (1.62)
598.91 465.27
Operating profit before working capital changes 1,383.87 1,073.29
Changes in working capital:
Adjustments for (Increase) / Decrease in operating assets:
In Inventories (290.06) (260.98)
In Trade receivables (465.65) 154.27
In Other financial assets 4.89 (7.28)
In Other Assets (926.12) (767.60)
Adjustments for Increase / (Decrease) in operating liabilities:
In Trade payables 542.17 566.41
In other current liabilities 892.74 699.23
In Provisions 6.58 11.89
(235.45) 395.94
Cash generated from / (used) in operations 1,148.42 1,469.23
Income tax refund received / (paid) net (275.29) (173.25)
Net cash flows from operating activities (A) 873.13 1,295.98
----- End of picture text -----

126

NCC LIMITED

FINANCIAL STATEMENTS

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2023 (contd.)

==> picture [494 x 386] intentionally omitted <==

----- Start of picture text -----

(` in crores)
Year ended Year ended
March 31, 2023 March 31, 2022
B. Cash flows from investing activities
Capital expenditure for property, plant and equipment, Investment property,
(342.03) (215.33)
Intangible Assets including Capital Work in Progress
Proceeds from disposal of Property, Plant and Equipment and Investment Property 124.13 47.58
Movement in Margin money deposits / other deposits (43.82) (122.59)
Proceeds from sale of a subsidiary - 47.50
Sale / (Purchase) of non current and current investments - Associates / Others (0.03) 16.14
Loans given to subsidiaries, associates and other body corporates (26.72) (146.51)
Loans realised from subsidiaries, associates and other body corporates 84.50 167.02
Interest received 49.05 61.83
Dividend received from a subsidiary 12.24 11.68
Rental income from investment properties 10.30 1.62
Net cash flows (used) in investing activities (B) (132.38) (131.06)
C. Cash flows from financing activities
Proceeds from Issue of Shares (pursuant to conversion of share warrants) 79.65 -
Proceeds from long term borrowings 184.14 104.53
Repayment of long term borrowings (101.31) (289.19)
Short term borrowings borrowed / repaid (net) (287.34) (420.18)
Finance costs paid (498.30) (445.56)
Dividend paid (125.57) (48.79)
Net cash flows (used) in financing activities (C) (748.73) (1,099.19)
Net Increase in Cash and cash equivalents (A+B+C) (7.98) 65.73
Cash and cash equivalents at the beginning of the year 235.39 169.66
Cash and cash equivalents at the end of the year 227.41 235.39
Reconciliation of Cash and cash equivalents with the Balance Sheet:
Cash and cash equivalents 227.41 235.39
Cash and cash equivalents at the end of the year 227.41 235.39
----- End of picture text -----

Note: Figures in brackets represents cash outflows.

The accompanying notes are an integral part of the financial statements

In terms of our report attached

For S.R. BATLIBOI & ASSOCIATES LLP

For and on behalf of the Board

ICAI Firm Registration No. 101049W/E300004 CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA

Partner Membership No. 102328

K. KRISHNA RAO

E.V.P (F&A) / CFO

A.A.V. RANGA RAJU

Managing Director / CEO (DIN No: 00019161)

M.V. SRINIVASA MURTHY

Company Secy. & Sr. E.V.P (Legal)

A.G.K. RAJU

Executive Director (DIN No: 00019100)

Hyderabad, May 26, 2023

127

Annual Report 2022-23

Notes forming part of the financial statements

1 General Information:

NCC Limited, (“NCCL”, / “the Company”) was established as a Partnership firm in 1978, which was subsequently converted into a Limited Company in 1990. The shares of the Company were listed on the stock exchanges in India during 1992 pursuant to the Initial Public Offer of equity shares. The registered office of the Company is located at NCC House, Madhapur, Hyderabad - 500 081, Telangana, India. The Company is engaged in the infrastructure sector, primarily in the construction of industrial and commercial buildings, housing project, roads, bridges and flyovers, water supply and environment projects, mining, power transmission lines, irrigation and hydrothermal power projects, etc.

2 Significant accounting policies:

2.1 Statement of compliance:

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time).

2.2 Basis of preparation and presentation:

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (‘Act’), including presentation requirements of Division II of Schedule III to the Companies Act, 2013 (Ind AS Compliant Schedule III), as applicable to the standalone financial statements (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time). Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account

when pricing the asset or liability at the measurement date. Fair value for measurement and/ or disclosure purposes in these financial statements is determined on such a basis and measurements that have some similarities to fair value but are not fair value, such as a net realisable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
Level 2 inputs are other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.

2.3 Interest in Joint Operations:

A joint operation is a joint arrangement where by the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

When a company undertakes its activities under joint operations, the company as a joint operator recognises in relation to its interest in a joint operation:

Its assets, including its share of any assets held jointly,
Its liabilities, including its share of any liabilities incurred jointly,
Its revenue, including its share of any revenue arising jointly.
Its expenses, including its share of any expenses incurred jointly.

The Company accounts for the assets, liabilities, revenues, and expenses relating to its interest in a joint operation in accordance with the Ind AS applicable to the particular assets, liabilities, revenues, and expenses.

128

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

2.4 Revenue Recognition:

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

A single performance obligation is identified in the construction projects that the Company engages in, owing to the high degree of integration and customisation of the various goods and services to provide a combined output which is transferred to the customer over time and not at a specific point in time, since the entity’s performance creates or enhances as asset that the customer controls as the asset is created or enhanced.

With respect to the method for recognising revenue over time (i.e. the method for measuring progress towards complete satisfaction of a performance obligation), the Company has established certain criteria that are applied consistently for similar performance obligations. In this regard, the method chosen by the Company to measure the value of goods or services for which control is transferred to the customer over time is the output method based on surveys of performance completed to date (or measured unit of work), according to which revenue is recognised corresponding to the units of work performed and on the basis of the price allocated thereto. In cases where the work performed till the reporting date has not reached the milestone specified in the contract, the Company recognises revenue only to the extent that it is highly probable that the customer will acknowledge the same. This method is applied as the progress of the work performed can be measured during its performance on the basis of the contract. Under this method, on a regular basis, the work completed under each contract is measured and the corresponding output is recognised as revenue.

Contract modifications are accounted for when additions, deletions or changes are approved either to the scope or price or both. Goods/services added that are not distinct are accounted for on a cumulative catch up basis. Goods / services those that are distinct are accounted for prospectively as a separate contract, if the additional goods/services are priced at the standalone selling price else as a termination of the existing contract and creation of a new contract . In cases where the additional work has been approved but the corresponding change in price has not been determined, the recognition of revenue is made

for an amount with respect to which it is highly probable that a significant reversal will not occur.

If the consideration promised in a contract includes a variable amount, this amount is recognised only to the extent that it is highly probable that a significant reversal in the amount recognised will not occur.

Contract costs

Costs related to work performed in projects are recognised on an accrual basis. Costs incurred in connection with the work performed are recognised as an expense.

Cost to fulfill the contract

The Company recognises asset from the cost incurred to fulfill the contract such as set up and mobilisation costs and amortises it over the contract period on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates.

Provision for future losses

Provision for future losses are recognised as soon as it becomes evident that the total costs expected to be incurred in a contract exceed the total expected revenue from that contract.

Contract balances

i) Contract assets

A contract asset is recognised for amount of work done but pending billing/acknowledgement by customer or amounts billed but payment is due on completion of future performance obligation, since it is conditionally receivable. The provision for Expected Credit Loss on contract assets is made on the same basis as financial assets as stated in note no. 2.19.

ii) Trade receivables

A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section Financial instruments – initial recognition and subsequent measurement.

iii) Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received advance payments from the customer. If a

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Notes forming part of the financial statements

customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the consideration received.

2.5 Other income:

a) Dividend Income : Dividend income from Investments is recognised when the shareholder’s right to receive payment has been established.
b) Interest income : Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.
c) Rental income : Rental income from operating leases is generally recognised over the term of the relevant lease.

2.6 Foreign exchange translation and foreign currency transactions:

The functional currency of the Company is the Indian rupee. These financial statements are presented in Indian rupees (rounded off to crores).

Foreign currency transactions are accounted at the exchange rates prevailing on the date of transactions. Gains and losses resulting from settlement of such transactions are recognised in the Statement of Profit and Loss.

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates. The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions are recognised in the Statement of Profit and Loss.

The exchange difference on restatement of long term receivables / payables from / to foreign operations that are considered as net investments in such operation are recognised in the statement of profit and loss in the separate financial statements of the reporting entity or the individual financial statements of the foreign operation, as appropriate.

Foreign branches functional currency is other than reporting currency of its parent and foreign branch financial statements are translated into reporting currency of its parent using the following procedures.

Assets and Liabilities (both monetary and non-monetary) are translated at the closing rate at the year end. Income and expenses are translated at the monthly average rate at the end of the respective month. All resulting exchange differences are recognised in other comprehensive income till the disposal of the net investment.

2.7 Borrowing Costs:

Borrowing costs include interest and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset are included in the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

2.8 Employee Benefits:

2.8.1 Retirement benefit costs and termination benefits:

Payment to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.

Superannuation

The Company’s contribution to superannuation fund is considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

Provident Fund

Contribution to Provident fund (a defined contribution plan) made to Regional Provident Fund Commissioner are recognised as expense.

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NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

Defined Benefit Plans

For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss. Past service cost is recognised in Statement of Profit and Loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.

2.8.2 Compensated Absences:

The employees are entitled to accumulate leave subject to certain limits, for future encashment, as per the policy of the Company.

The liability towards such unutilized leave as at the end of each balance sheet date is determined based on independent actuarial valuation and recognised in the Statement of Profit and Loss.

In respect of employees of overseas branch, end of service benefit is accrued in accordance with the terms of employment. Employees entitlements to annual leave and gratuity are recognised on actual basis and charged to the Statement of Profit and Loss.

2.9 Taxation:

Income tax expense represents sum of the tax currently payable and deferred tax

used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary differences arise from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax for the year. The deferred tax asset is recognised for MAT credit available only to the extent that it is probable that the concerned company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the company recognises MAT credit as an asset, it is created by way of credit to the statement of profit and loss and shown as part of deferred tax asset. The company reviews the “MAT credit entitlement” asset at each reporting date and writes down the asset to the extent that it is no longer probable that it will pay normal tax during the specified period.

2.9.1 Current tax:

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income-tax Act, 1961 and other applicable tax laws that have been enacted or substantively enacted by the end of the reporting period in the countries where the Company operates and generates taxable income.

2.9.2 Deferred tax:

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases

2.9.3 Current and deferred tax for the year:

Current and deferred taxes are recognised in Statement of Profit and Loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

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Notes forming part of the financial statements

2.10 Property, plant and equipment:

Property, plant and equipment (PPE) are carried at cost less accumulated depreciation and impairment losses, if any. The cost of Property, plant and equipment comprises of purchase price, applicable duties and taxes, any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition/construction of qualifying PPE, that takes a substantial period of time to get ready for its intended use, upto the date the asset is ready for its intended use. The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located is required to be included in the cost of the respective item of property plant and equipment and Cost of major inspections is recognised in the carrying amount of property, plant and equipment as a replacement, if recognition criteria are satisfied and any remaining carrying amount of the cost of previous inspection is derecognised. PPE retired from active use and held for sale are stated at the lower of their net book value and net realisable value and are disclosed separately.

An item of PPE is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognised in statement of profit and loss.

2.11 Depreciation and Amortisation:

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost less its estimated residual value.

Depreciation on Property, Plant and equipment and investment property have been provided on the straight line method as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of construction accessories (6 years), some of the mining equipments such as Excavators upto 3.1 cum capacity (7 years), Tippers (6 years), Dozers & Motor Graders (8 years) working in Mining projects, in whose case the life of the assets and the residual value has been assessed based on technical assessment, taking into account the nature of asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, maintenance, etc.

Depreciation on Property, Plant and equipment in joint venture operations provided on Straight Line Method/ Written Down Value Method based on useful life prescribed in Schedule II of the Companies Act, 2013.

Intangible Assets are amortised, on straight line method based on the useful life as assessed by the Management. The amortisation period and the amortisation method for an intangible asset is reviewed every year.

2.12 Investment property: Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured in accordance with the Ind AS16’s requirement for cost model.

An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no further economic benefits expected from disposal. Any gain or loss arising on derecognition of the property is included in Statement of Profit and Loss in the period in which the property is derecognised.

2.13 Intangible Assets:

Identifiable intangible assets are recognised when the Company controls the asset, it is probable that future economic benefits attributed to the asset will flow to the Company and the cost of the asset can be reliably measured. At initial recognition, the separately acquired intangible assets are recognised at cost. Following initial recognition, the intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses, if any. The estimated useful life and amortization method reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

2.14 Inventories:

Raw Materials:

Raw Materials, construction materials and stores & spares are valued at weighted average cost or net realisable value, whichever is lower. Cost includes all charges in bringing the materials to the place of usage, excluding refundable duties and taxes.

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NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

Properties Under Development:

Properties under development are valued at cost or net realisable value, whichever is lower. Cost comprises all direct development expenditure, administrative expenses and borrowing costs.

2.15 Investments in Subsidiaries, Associates and Joint ventures: On initial recognition, these investments are recognised at fair value plus any directly attributable transaction cost. Subsequently, they are measured at cost.
2.16 Provisions, Contingent Liabilities and Contingent Assets :

The Company recognises provisions when there is present obligation as a result of past event and it is probable that there will be an outflow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for Contingent liabilities is made in the notes on accounts when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Contingent assets are disclosed in the financial statements when flow of economic benefits is probable.

2.17 Financial instruments:

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in statement of profit and loss.

2.18 Financial assets:

Financial asset is

1 Cash / Equity Instrument of another Entity,
Contractual right to –
a) receive Cash / another Financial Asset from another Entity, or
b) exchange Financial Assets or Financial Liabilities with another Entity under conditions that are potentially favourable to the Entity.

2.19 Subsequent measurement of the financial assets:

(i) Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Further, in case where the company has made an irrevocable selection based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognised in other comprehensive income.

(iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

(iv) The Company recognises loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognised as an impairment gain or loss in statement of profit and loss.

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Notes forming part of the financial statements

2.20 Financial liabilities:

Financial liability is Contractual Obligation to

a) Deliver Cash or another Financial Asset to another Entity, or
b) Exchange Financial Assets or Financial Liabilities with another Entity under conditions that are potentially unfavourable to the Entity.

The company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.

2.21 Subsequent measurement of the financial liabilities:

Financial liabilities are subsequently carried at amortized cost using the effective interest rate method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate the fair value due to the short maturity of these instruments.

2.22 Derecognition of financial instruments:

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognised from the Company’s balance sheet when the obligation specified in the contract is discharged or cancelled or expires.

such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognised in the statement of profit and loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognised for the asset in prior years.

2.25 Fair value measurement:

The Company measures certain financial instruments at fair value at each reporting date. Fair value is the price that would be received on sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

a. In the principal market for the asset or liability, or
b. In the absence of principal market, in the most advantageous market for the asset or liability.

2.23 Fair value of financial instruments:

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may or may not be realized.

2.24 Impairment of Assets:

Intangible assets and property, plant and equipment: Intangible assets and property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

2.26 Leases :

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the date of commencement of the lease, the Company recognises a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except short-term leases and low value leases.

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NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to the Company’s operations taking into account the location of the underlying asset and the availability of suitable alternatives.

The Company applies the short-term lease recognition exemption to its short-term leases of premises and construction equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date or the adoption of Ind AS 116 and do not contain a purchase option). Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straightline basis over the lease term.

2.27 Earnings Per Share :

Basic earnings per equity share is computed by dividing the net profit for the year attributable to the Equity Shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit for the year, adjusted for the effects of dilutive potential equity shares, attributable to the Equity Shareholders by the weighted average number of the equity shares and dilutive potential equity shares outstanding during the year except where the results are anti-dilutive.

2.28 Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.29 Critical judgements in applying accounting policies: The following are the critical judgements, apart from those involving estimations, that the directors have made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognised in the financial statement.
(i) Revenue recognition: The Company uses the stage of completion method using survey method and /or on completion of physical proportion of the contract work to measure progress towards completion in respect of construction contracts. This method is followed when reasonably dependable estimates of costs applicable to various elements of the contract can be made. Key factors that are reviewed in estimating the future costs to complete include estimates of future labour costs and productivity efficiencies. Because the financial reporting of these contracts depends on estimates that are assessed continually during the term of these contracts, recognised revenue and profit are subject to revisions as the contract progresses to completion. When estimates indicate that a loss will be incurred, the loss is provided for in the period in which the loss becomes probable.
(ii) Key sources of estimation uncertainty: The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

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Notes forming part of the financial statements

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Items
requiring Assumption and estimation
significant uncertainty
estimate
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Items requiring significant estimate	Assumption and estimation uncertainty

Review of property, plant and equipment	The Company reviews the estimated useful lives, depreciation method and residual value of property plant and equipment at the end of each reporting period. During the current year, there has been no change in life, depreciation method and residual value considered for the assets.
Fair value measurements and valuation processes	Some of the Company’s assets and liabilities are measured at fair value for the financial reporting purposes. The valuation committee which is headed by the Chief Financial Officer of the Company determines the appropriate valuation techniques and inputs for fair value measurements. In estimating the fair value of an asset or a liability, the Company uses market- observable data to the extent it is available. Where Level 1 inputs are not available, the Company engages third party / internal qualified valuers to perform the valuation. Finance team works closely with the qualified external / internal valuers to establish the appropriate valuation techniques and inputs to the model. The Chief Financial Officer reports the valuation committee’s findings to the Board of Directors about the causes of fluctuations in the fair value of the assets and liabilities.
Provision for doubtful receivables and contract assets	In assessing the recoverability of the trade receivables and contracts assets, management’s judgement involves consideration of aging status, evaluation of litigations and the likelihood of collection based on the terms of the contract.

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Items
requiring Assumption and estimation
significant uncertainty
estimate
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Items requiring significant estimate	Assumption and estimation uncertainty

Estimation of net realisable value of inventories	Inventories are stated at the lower of cost and Fair value. In estimating the net realisable value / Fair value of Inventories the Company makes an estimate of future selling prices and costs necessary to make the sale.
Provision for employee benefits	The Company uses actuarial assumptions to determine the obligations for employee benefits at each reporting period. These assumptions include the discount rate, expected long-term rate of return on plan assets, rate of increase in compensation levels and mortalityrates.
Provision for taxes	Significant judgments are required in determining the provision for income taxes, including the amount expected to be paid / recovered for uncertain tax positions. The company reviews the “MAT credit entitlement” asset at each reporting date and writes down the asset to the extent that it is no longer probable that it will pay normal tax duringthe specified period.
Provision for onerous contracts	The Company reviews contracts periodically to assess provisions to be made for onerous contract by estimating future costs and quantities.
Indirect tax litigations	The Company is subjected to VAT assessments in various states where projects were executed. Basing on applicable VAT rules of various states the Company estimated the VAT liability and provided in the book of accounts. The VAT assessments in different states are at different stages and on some of the assessment orders, the Company made appeals and they are at various tribunals and courts.

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NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

2.30 Exceptional Items:

Exceptional Items represents the nature of transactions which are not in recurring nature during the ordinary course of business but lead to increase / decrease in profit / loss for the year.

2.31 Operating cycle:

The Company adopts operating cycle based on the project period (including Defect Liability Period) and accordingly all project related assets and liabilities are classified into current and non current. Other than project related assets and liabilities, 12 months period is considered as normal operating cycle.

2.32 Recent accounting pronouncements:

Standards issued but not yet effective and not early adopted by the Company

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards. On March 31, 2023, the MCA, issued certain amendments to Ind AS. The amendments relate to the following standards:

Ind AS 101, First-time Adoption of Indian Accounting Standards
Ind AS 1, Presentation of Financial Statements
Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors
Ind AS 12, Income Taxes

These amendments are effective from April 01, 2023. The Company believes that the aforementioned amendments will not materially impact the financial statements of the Company.

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Notes forming part of the financial statements

Note 3

Property, Plant & Equipment and Capital Work-in-Progress:

(` in crores)

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Lease
Plant and Furniture Construc- Office Construc-
Office Hold
Land Buildings Equip- and tion Equip- tion Acce- Total
Vehicles Improve-
ment Fixtures Vehicles ment ssories
ments
Cost:
Balance as at April 01, 5.13 68.34 885.65 13.62 223.76 92.07 55.33 16.08 791.65 2,151.63
2021
Additions 7.25 8.31 83.37 1.13 23.96 17.30 7.91 - 76.59 225.82
Disposals / Adjustments - (3.25) 67.89 1.00 19.74 4.56 1.47 - 26.09 117.50
As at March 31, 2022 12.38 79.90 901.13 13.75 227.98 104.81 61.77 16.08 842.15 2,259.95
Additions - 8.53 130.04 2.11 12.22 19.32 9.13 - 136.18 317.53
Disposals / Adjustments - 0.74 23.63 0.80 22.02 4.75 4.75 - 29.86 86.55
As at March 31, 2023 12.38 87.69 1,007.54 15.06 218.18 119.38 66.15 16.08 948.47 2,490.93
Depreciation:
Balance as at April 01, - 20.76 416.87 7.37 90.16 45.97 43.95 14.86 467.97 1,107.91
2021
Depreciation - 5.80 59.11 1.01 22.62 9.02 4.50 0.57 79.15 181.78
Disposals / Adjustments - (0.03) 46.20 0.93 18.53 3.54 1.38 - 22.90 93.45
As at March 31, 2022 - 26.59 429.78 7.45 94.25 51.45 47.07 15.43 524.22 1,196.24
Depreciation - 5.64 63.27 1.05 26.11 10.80 5.70 0.12 86.75 199.44
Disposals / Adjustments - 0.71 18.98 0.67 13.22 4.18 4.49 - 25.85 68.10
As at March 31, 2023 - 31.52 474.07 7.83 107.14 58.07 48.28 15.55 585.12 1,327.58
Net Block
As at March 31, 2022 12.38 53.31 471.35 6.30 133.73 53.36 14.70 0.65 317.93 1,063.71
As at March 31, 2023 12.38 56.17 533.47 7.23 111.04 61.31 17.87 0.53 363.35 1,163.35
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Capital work in progress **14.74 crores** (31.03.2022: 7.02 crores).

(` in crores)

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As at As at
March 31, 2023 March 31, 2022
Opening 7.02 21.53
Additions during the year 11.14 4.67
Capitilisation 3.42 19.18
Closing 14.74 7.02
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Note: Refer note 18 and 21 for details of assets pledged.

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NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

Note 3.1

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Investment property & Investment property under construction: (` in crores)
Land Buildings Total
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	Land	Buildings*	Total

Cost:
Balance as at April 01, 2021	76.09	106.48	182.57
Additions	-	3.20	3.20
Disposals/Adjustments	2.74	18.78	21.52
As at March 31, 2022	73.35	90.90	164.25
Additions	7.99	4.97	12.96
Disposals/Adjustments	0.37	57.96	58.33
As at March 31, 2023	80.97	37.91	118.88
Depreciation:
Balance as at April 01, 2021	-	4.18	4.18
Depreciation	-	0.55	0.55
Disposals/Adjustments	-	0.33	0.33
As at March 31, 2022	-	4.40	4.40
Depreciation	-	0.35	0.35
Disposals/Adjustments	-	-	-
As at March 31, 2023	-	4.75	4.75
Net Block
As at March 31, 2022	73.35	86.50	159.85
As at March 31, 2023	80.97	33.16	114.13

*Cost includes given under operating lease **22.23 crores** (31.03.2022: 22.23 crores).

Investment property under construction **107.65 crores** (31.03.2022: 103.47 crores).

(` in crores)

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As at As at
March 31, 2023 March 31, 2022
Opening 103.47 68.10
Additions during the year 4.18 35.37
Capitilisation - -
Closing 107.65 103.47
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Note: Refer note 18 and 21 for details of assets pledged and note 27 for the details of Rental income.

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Annual Report 2022-23

Notes forming part of the financial statements

Fair value of the investment property and investment property under construction:

Details of the investment property and information about the fair value hierarchy as at March 31, 2023 and March 31, 2022 are as follows:

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(` in crores)
Fair value as at Fair value as at
Fair value hierarchy
March 31, 2023 March 31, 2022
Land Level 3 164.96 170.67
Buildings Level 3 97.62 176.56
Investment property under construction Level 3 127.85 127.85
Total 390.43 475.08
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The internal technical team of the Company has valued for some of the properties at 200.16 crores (31.03.2022: 315.62 crores) and the balance properties have been valued by independent valuer at 190.27 crores (31.03.2022: 159.46 crores). The valuation is based on Government rates, market research, market trend and comparable values as considered appropriate.

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3.2 Other Intangible Assets (` in crores)
Computer Software Total
Cost:
Balance as at April 01, 2021 13.16 13.16
Additions 0.02 0.02
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	Computer Software	Total
Cost:
Balance as at April 01, 2021	13.16	13.16
Additions	0.02	0.02

Disposals/Adjustments	-	-
As at March 31, 2022	13.18	13.18
Additions	0.04	0.04
Disposals/Adjustments	0.12	0.12
As at March 31, 2023	13.10	13.10
Amortisation:
Balance as at April 01, 2021	12.45	12.45
Amortisation	0.01	0.01
Disposals/Adjustments	-	-
As at March 31, 2022	12.46	12.46
Amortisation	0.02	0.02
Disposals/Adjustments	0.12	0.12
As at March 31, 2023	12.36	12.36
Net Block
As at March 31, 2022	0.72	0.72
As at March 31, 2023	0.74	0.74

3.2.1 Intangible Assets - under development `6.91 crores (31.03.2022:` Nil)

( ` in crores)

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As at
March 31, 2023
Opening -
Additions during the year 6.91
Capitilisation -
Closing 6.91
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140

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

3.3.1 Capital work in progress (CWIP) Ageing Schedule as at 31.03.2023

(` in crores)

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Total Less than1 year 1-2 years 2-3 years More than 3 years
(i) Projects in progress - PPE commissioning 14.74 11.34 3.40 - -
(ii) Projects temporarily suspended - - - - -
Total 14.74 11.34 3.40 - -
Capital work in progress (CWIP) Ageing Schedule as at 31.03.2022 (in crores) Total Less than1 year 1-2 years 2-3 years More than 3 years (i) Projects in progress - PPE commissioning 7.02 6.24 0.29 0.40 0.09 (ii) Projects temporarily suspended - - - - - Total 7.02 6.24 0.29 0.40 0.09 3.3.2 Investment property under construction Ageing Schedule as at 31.03.2023 ( in crores)
Total Less than1 year 1-2 years 2-3 years More than 3 years
(i) Projects in progress 107.65 4.18 35.38 - 68.09
(ii) Projects temporarily suspended - - - - -
Total 107.65 4.18 35.38 - 68.09
Investment property under construction Ageing Schedule as at 31.03.2022 (` in crores)
Total Less than1 year 1-2 years 2-3 years More than 3 years
(i) Projects in progress 103.47 35.38 - - 68.09
(ii) Projects temporarily suspended - - - - -
Total 103.47 35.38 - - 68.09
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3.4 The title deeds of all the immovable properties disclosed in the financial statements are held in the name of the company except the below properties.

(` in crores)

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

3.5 The Company uses both internal technical team and independent valuers for fair valuation of the investment properties.
3.6 No proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

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Notes forming part of the financial statements

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(in crores) As at March 31, 2023 As at March 31, 2022 Number of Number of Amount Amount Shares Shares 4 Investments 4.1 Non Current Investments A In Associates Unquoted instruments at cost (i) Investment in equity shares In Shares of 10 each, fully paid up
Paschal Form Work (India) Private Limited 6,549,892 6.91 6,549,892 6.91
Less: Provision for Impairment in value of Investments 3.46 3.46
3.45 3.45
Brindavan Infrastructure Company Limited 8,643,036 3.46 8,643,036 3.46
Pondicherry Tindivanam Tollway Private Limited (valued at 1,000) 100 - 100 - In Shares of one USD each fully paid up Apollonius Coal and Energy Pte Limited 1,498,757 8.00 1,498,757 8.00 Less: Provision for Impairment in value of Investments 8.00 8.00 - - In Shares of 'AED' 1000 each fully paid up Nagarjuna Facilities Management Services, LLC, Dubai 147 0.17 147 0.17 Total aggregate investments in Associates 7.08 7.08 B In Subsidiaries Unquoted instruments at cost (i) Investment in equity shares In Shares of 10 each, fully paid up
NCC Infrastructure Holdings Limited (NCCIHL) (Refer note 4.3) 445,874,458 457.91 445,874,458 457.91
Less: Provision for Impairment in value of Investments 69.38 69.38
388.53 388.53
NCC Urban Infrastructure Limited (Refer note 4.4) 200,000,000 240.00 200,000,000 240.00
OB Infrastructure Limited (Valued at ` 6,000) 600 - 600 -
Savitra Agri Industrial Park Private Limited 50,000 0.05 50,000 0.05
Pachhwara Coal Mining Private Limited 102,000 0.10 102,000 0.10
Talaipalli Coal Mining Private Limited 45,900 0.05 45,900 0.05
In Shares of Omani Rials one each, fully paid up
Nagarjuna Construction Company International LLC, Oman 12,818,000 193.37 12,818,000 193.37
Less: Provision for Impairment in value of Investments 154.74 113.52
38.63 79.85
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142

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

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(in crores) As at March 31, 2023 As at March 31, 2022 Number of Number of Amount Amount Shares Shares In Shares of US $ 10 each, fully paid up NCC Infrastructure Holdings Mauritius Pte. Ltd. (Refer note 4.6) 4,747,180 197.12 2,687,508 61.88 Less: Provision for Impairment in value of Investments - 21.22 197.12 40.66 In Shares of 'AED' 1000 each, fully paid up Nagarjuna Contracting Company Limited, LLC, Dubai 300 0.34 300 0.34 (ii) Investment in debentures 0% Compulsory Convertible Debentures NCC Infrastructure Holdings Mauritius Pte. Ltd. (US $ 1 each) (Refer - 20,596,720 135.24 note 4.6) Total aggregate investments in Subsidiaries 864.82 884.82 C In Other entities Investments - fair value through profit and loss account SNP Developers and Projects LLP (Valued at 35,500 ) - -
SNP Property Developers LLP 0.01 0.01
NAC Quippo Equipment Services Limited 1,499,900 1.50 1,499,900 1.50
In Shares of ` 25 each, fully paid up
Akola Urban Co-operative Bank Limited 4,040 0.01 4,040 0.01
Total aggregate investments in Other entities 1.52 1.52
Total aggregate investments in Subsidiaries and Other 866.34 886.34
entities
4.2 Current Investments
Investment at Fair Value through Profit and Loss Account
In Mutual Funds (Quoted)
Trust MF Banking & PSU Debt Fund 10,093 1.10 10,093 1.07
Grand Total 874.52 894.49
Aggregate market value of current Quoted Investments 1.10 1.07
Aggregate amount of Unquoted Investments 1,109.00 1,109.00
Aggregate amount of impairment in value of investments 235.58 215.58
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4.3 Of these 444,600,000 (31.03.2022: 444,600,000) equity shares have been pledged with SBICAP Trustee Company Limited (Security trustee) on behalf of consortium of working capital lenders.

The carrying value of investment in ‘NCCIHL’ as at March 31, 2023 is higher by 185.66 crores (31.03.2022: 176.28 crores) as compared to the Company’s share of net worth in NCCIHL. Based on the internal assessment and legal advice, Management is of the view that the carrying value is recoverable, considering the future cash flows which include claims filed by NCCIHL.

4.4 Of these 100,000,000 (31.03.2022: 100,000,000) equity shares have been pledged with SBICAP Trustee Company Limited (Security trustee) on behalf of consortium of working capital lenders.
4.5 The Company has not traded or invested in Crypto currency or Virtual Currency in the current year (31.03.2022: ` Nil).
4.6 During the year, Compulsory Convertible Debentures (CCD) have been converted into equity shares.

143

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Notes forming part of the financial statements

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(` in crores)
As at March 31, 2023 As at March 31, 2022
5 Loans
Unsecured
Loans to Related Parties
Subsidiaries (Refer note 12.1)
Considered Good 26.48 47.49
Significant increase in credit risk - 10.00
26.48 57.49
Less : Allowance for significant increase in credit risk - 10.00
26.48 47.49
Secured
Loans to Other Body Corporates 150.00 150.00
Total 176.48 197.49
6 Trade Receivables
Unsecured (Refer note 10.1 to 10.3 & 10.5)
Considered Good 161.99 109.90
Considered Doubtful 10.00 10.00
171.99 119.90
Less : Allowance for doubtful trade receivables 14.94 11.94
Total 157.05 107.96
7 Other Financial Assets
Unsecured, Considered good
Deposits with Customers and Others 0.21 0.25
Margin Money Deposits (Refer note 11.4) 88.34 139.49
In Deposit Accounts with remaining maturity more than 12 0.34 0.46
months
Total 88.89 140.20
8 Deferred Tax Assets (Net) (Refer note 42 ) 47.53 54.14
9 Inventories
Raw Materials 1,045.41 771.49
Raw Material in Transit 17.03 0.87
Property Development Cost 15.40 15.42
Total 1,077.84 787.78
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144

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

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(` in crores)
As at March 31, 2023 As at March 31, 2022
10 Trade Receivables
Unsecured (Refer note 10.1 to 10.4 & 10.6)
Considered Good 2,804.61 2,398.79
Considered Doubtful 15.26 23.26
2,819.87 2,422.05
Less : Allowance for doubtful trade receivables 31.78 37.78
Total 2,788.09 2,384.27
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10.1 Trade receivables are generally realisable from customers within a period of 30 days from the date of submission of bill / invoice.

10.2 In determining the allowance for trade receivables the company has used practical expedients based on financial condition of the customer, ageing of the customer receivables and overdues, availability of collaterals and historical experience of collections from customers. The concentration of risk with respect to trade receivables is reasonably low as most of the customers are Government organisations though there may be normal delays in collections.

10.3 Movement in the allowance for doubtful trade receivables:

(` in crores)

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As at As at
March 31, 2023 March 31, 2022
Balance at beginning of the year 49.72 45.14
Add: Allowance for doubtful trade receivables 5.00 13.00
Less: Allowance written off during the year (8.00) (8.42)
Balance at the end of the year 46.72 49.72
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10.4 Trade receivables includes 29.22 crores (31.03.2022: 29.22 crores) from associates.

10.5 Ageing of Non-current Trade receivables as on 31.03.2023:

(` in crores)

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Outstanding from the due date of payment
Particulars Not yet Less than 6 6 months - More than
1-2 years 2-3 years Total
Due months 1 year 3 years
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Particulars	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment
	Not yet Due	Less than 6 months	6 months - 1year	1-2 years	2-3 years	More than 3years	Total

Unsecured
Undisputed Trade receivables
Considered Good	0.07	2.51	0.10	3.43	10.19	73.70	90.00
Considered Doubtful							-
Disputed Trade receivables
Considered Good		8.84		0.64	0.30	62.21	71.99
Considered Doubtful						10.00	10.00
Total	0.07	11.35	0.10	4.07	10.49	145.91	171.99
Less : Allowance for doubtful trade receivables							14.94
Total							157.05

145

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Notes forming part of the financial statements

Ageing of Non-current Trade receivables as on 31.03.2022:

(` in crores)

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Particulars	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment
	Not yet Due	Less than 6 months	6 months - 1year	1-2 years	2-3 years	More than 3years	Total

Unsecured
Undisputed Trade receivables
Considered Good	-	-	0.81	1.78	30.90	4.96	38.45
Considered Doubtful	-	-	-	-	-	-	-
Disputed Trade receivables
Considered Good	-	-	0.36	0.50	46.42	24.17	71.45
Considered Doubtful	-	-	-	-	5.00	5.00	10.00
Total	-	-	1.17	2.28	82.32	34.13	119.90
Less : Allowance for doubtful trade receivables							11.94
Total							107.96

10.6 Ageing of Current Trade receivables as on 31.03.2023:

(` in crores)

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Particulars	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment
	Not yet Due	Less than 6 months	6 months - 1year	1-2 years	2-3 years	More than 3years	Total

Unsecured
Undisputed Trade receivables
Considered Good	1,209.45	907.04	276.57	183.06	51.74	149.46	2,777.32
Considered Doubtful						10.26	10.26
Disputed Trade receivables
Considered Good				1.18		26.11	27.29
Considered Doubtful						5.00	5.00
Total	1,209.45	907.04	276.57	184.24	51.74	190.83	2,819.87
Less : Allowance for doubtful trade receivables							31.78
Total							2,788.09

Ageing of Current Trade receivables as on 31.03.2022:

(` in crores)

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Particulars	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment
	Not yet Due	Less than 6 months	6 months - 1year	1-2 years	2-3 years	More than 3years	Total

Unsecured
Undisputed Trade receivables
Considered Good	1,040.26	631.08	165.13	187.63	199.15	92.37	2,315.62
Considered Doubtful	-	-	-	-	5.26	13.00	18.26
Disputed Trade receivables
Considered Good	-	1.18	-	-	8.58	73.41	83.17
Considered Doubtful	-	-	-	-	1.00	4.00	5.00
Total	1,040.26	632.26	165.13	187.63	213.99	182.78	2,422.05
Less : Allowance for doubtful trade receivables							37.78
Total							2,384.27

146

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

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(` in crores)
As at March 31, 2023 As at March 31, 2022
11 Cash and Bank Balances
11.1 Cash and Cash Equivalents
Cash on hand (Refer note 11.3) 0.84 1.00
Balances with Banks
In Current Accounts 226.39 211.26
In Deposit Accounts with original maturity 0.18 23.13
less than 3 months
227.41 235.39
11.2 Other Bank Balances
In Deposit Accounts
Margin Money Deposits (Refer note 11.4) 385.36 307.07
In Deposit Accounts with remaining maturity 31.01 13.40
less than 12 months
416.37 320.47
Earmarked balances with Banks
Unpaid dividend accounts (Refer note 11.5) 0.62 0.52
Un-spent CSR account 1.23 2.16
418.22 323.15
Total 645.63 558.54
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11.3 Cash on hand includes 0.11 Crores (31.03.2022: 0.24 crores) held in foreign currency.

11.4 Margin Money Deposits represents the deposits lodged with Banks against Guarantees issued by them.

11.5 Represents Cash and Cash equivalents deposited in unpaid dividend account and are not available for use by the Company other than specific purpose.

11.6 Changes in liabilities arising from financing activities:

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11.6 Changes in liabilities arising from financing activities: (` in crores)
Balance As at As at
Cash Flows
April 01, 2022 March 31, 2023
Current borrowings 1,007.73 (287.34) 720.39
Non-current borrowings (including current maturity) 176.35 82.83 259.18
1,184.08 (204.51) 979.57
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(` in crores)
Balance As at As at
Cash Flows
April 01, 2021 March 31, 2022
Current borrowings 1,427.91 (420.18) 1,007.73
Non-current borrowings (including current maturity) 361.01 (184.66) 176.35
1,788.92 (604.84) 1,184.08
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Notes forming part of the financial statements

(` in crores)

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As at March 31, 2023 As at March 31, 2022
12 Loans
Secured, considered good
Loans to Other Body Corporate 169.46 154.23
Unsecured, considered good
Loans to Related Parties (Refer note 12.1)
Subsidiaries - 23.55
Loans to Other Body Corporate 17.36 25.81
Loans and Advances to Employees 8.36 6.73
Total 195.18 210.32
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12.1 Particulars of Loans and Advances in the nature of loans as required by Regulation 34(3) and 53(f) of Securities and Exchange Board of India (Listing Obligations and Disclosures Requirements) Regulations, 2015.

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(` in crores)
Maximum Maximum
As at As at outstanding outstanding
March 31, 2023 March 31, 2022 during the year during the year
(2022-23) (2021-22)
Subsidiaries:
NCC Urban Infrastructure Limited - 22.31 22.31 149.49
NCC Vizag Urban Infrastructure Limited - - - 307.74
(Refer note 40)
NCC Infrastructure Holdings Mauritius Pte 26.48 57.49 57.49 57.49
Limited
Nagarjuna Construction Company International - 1.24 1.24 5.18
LLC, Oman
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148

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FINANCIAL STATEMENTS

Notes forming part of the financial statements

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(` in crores)
As at March 31, 2023 As at March 31, 2022
13 Other Financial Assets
Secured, considered good
Receivables 152.20 152.20
Unsecured, considered good
Receivables 113.86 120.22
Interest Accrued on Deposits and others 40.02 13.17
Total 306.08 285.59
14 Non Current Tax Assets (Net)
Advance Taxes and Tax Deducted at Source 281.36 149.63
(Net of Provisions for tax)
14.1 Current Tax Assets (Net)
Advance Taxes and Tax Deducted at Source 10.04 74.22
(Net of Provisions for tax)
15 Other Non - Current Assets
Sales Tax / Value Added Tax credit receivable 95.16 113.70
Contract Asset
Due on performance of future obligations
Retention Money
Considered Good 152.13 70.65
Considered Doubtful - -
152.13 70.65
Less : Allowance for doubtful retention money - -
152.13 70.65
Unbilled revenue (Refer note 15.4)
Considered Good 99.27 48.75
Considered Doubtful 8.00 4.00
107.27 52.75
Less : Expected credit loss for unbilled revenue 8.00 4.00
99.27 48.75
346.56 233.10
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Notes forming part of the financial statements

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(` in crores)
As at March 31, 2023 As at March 31, 2022
15.1 Other Current Assets
Advances to Suppliers, Sub-contractors and Others
(Refer note 15.2)
Considered Good 1,378.23 1,222.91
Considered Doubtful 5.29 10.29
1,383.52 1,233.20
Less : Allowance for doubtful advances 5.29 10.29
1,378.23 1,222.91
Contract Asset
Due on performance of future obligations
Retention Money (Refer note 15.3) 1,777.95 1,936.12
Others 200.65 345.10
Project Facilities 101.50 39.97
Unbilled revenue (Refer note 15.4)
Considered Good 3,125.32 2,227.63
Considered Doubtful 103.61 138.16
3,228.93 2,365.79
Less : Expected credit loss for unbilled revenue 103.61 138.16
3,125.32 2,227.63
Prepaid Expenses 77.86 45.19
Balances with Government Authorities
Sales Tax / Value Added Tax credit receivable 72.49 90.77
Goods and Service Tax credit receivable 462.90 506.42
Total 7,196.90 6,414.11
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15.2 Accounts Receivables, Advances to Suppliers, Sub–contractor and Others, includes advances to related parties of 10.18 crores (31.03.2022: 6.35 crores).

15.3 Retention money includes receivable from associate of 21.03 crores (31.03.2022: 21.03 crores).

15.4 Movement in the Expected credit loss for unbilled revenue:

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(` in crores)
As at As at
March 31, 2023 March 31, 2022
Balance at beginning of the year 142.16 112.15
Add: Expected credit loss for unbilled revenue during the year 29.45 30.01
Less: Utilisation during the current year 60.00 -
Balance at the end of the year 111.61 142.16
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150

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

(` in crores)

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As at March 31, 2023 As at March 31, 2022
Number of Number of
Amount Amount
shares shares
16 Share Capital
Authorised :
Equity Shares of 2 each 807,500,000 161.50 807,500,000 161.50 Issued : Equity Shares of 2 each (Refer note 16.1) 627,846,588 125.57 609,846,588 121.97
Subscribed and Paid up :
Equity Shares of ` 2 each 627,846,588 125.57 609,846,588 121.97
Total 125.57 121.97
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16.1 Reconciliation of the number of equity shares and amount outstanding at beginning and at end of the year

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(` in crores)
Year Ended March 31, 2023 Year Ended March 31, 2022
Number of Number of
Amount Amount
shares shares
Balance at beginning of the year 609,846,588 121.97 609,846,588 121.97
Add: Issue of Share Capital 18,000,000 3.60 - -
Balance at end of the year 627,846,588 125.57 609,846,588 121.97
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16.2 Details of shares held by each shareholder holding more than 5% shares:

	As at March 31, 2023	As at March 31, 2023	As at March 31, 2022	As at March 31, 2022
	Number of shares	% holding	Number of shares	% holding
Smt. Rekha Jhunjhunwala	70,580,932	11.24	66,733,266	10.94
A V S R Holdings Private Limited	66,636,225	10.61	63,556,225	10.42

16.3 Unclaimed equity shares of 25,454 (31.03.2022: 25,984) are held in “NCC Limited - Unclaimed suspense account“ in trust.

16.4 Rights of the share holders

The equity shares of the company having par value of ` 2 per share, rank pari passu in all respects including voting rights and entitlement to dividend. Repayment of the capital in the event of winding up of the Company will inter alia be subject to the provisions of Companies Act 2013, the Articles of Association of the Company and as may be determined by the Company in General Meeting prior to such winding up.

16.5 The Company had issued and allotted 18,000,000 Convertible Warrants on February 12, 2021 at a price of 59.00 per Warrant on preferential basis to the specified Promoters / Promoter Group of the Company, as per the provision the SEBI (ICDR) Regulations on receipt of 25% of total consideration amounting to 26.55 crores. As per the terms of the issue, the Convertible Warrants were converted into equivalent number of equity shares of 2.00 each on payment of the balance 75% of the consideration amounting to 79.65 Crores during the year. The alloted equity shares are listed and traded on both BSE Limited and National Stock Exchange of India Ltd.

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Notes forming part of the financial statements

16.6 Shares held by promoter group at the end of the year:

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Change during the Change during the
As at 31.03.2021 As at 31.03.2022 As at 31.03.2023
S. FY 2021-22 FY 2022-23
Promoter Name
No % of % of No. of % of No. of % of
No. of shares No. of shares No. of shares % of change
holding change shares holding shares holding
1 Sri. A.A.V. Ranga 11,983,196 1.96% (10,000,000) (83.45%) 1,983,196 0.33% - 0.00% 1,983,196 0.32%
Raju
2 Sri. A.S.N. Raju 4,992,985 0.82% 4,992,985 0.82% (900,000) (18.03%) 4,092,985 0.65%
3 Sri. A.G.K. Raju 4,481,569 0.73% 4,481,569 0.73% (900,000) (20.08%) 3,581,569 0.57%
4 Sri. J.V. Ranga Raju 2,465,916 0.40% 2,465,916 0.40% - 0.00% 2,465,916 0.39%
5 AVSR Holdings 62,766,225 10.29% 790,000 1.26% 63,556,225 10.42% 3,080,000 4.85% 66,636,225 10.61%
Private Limited
6 Sirisha Projects 18,610,669 3.05% 18,610,669 3.05% 2,400,000 12.90% 21,010,669 3.35%
Private Limited
7 Sri. A. Srinivas 174,000 0.03% 174,000 0.03% 1,526,000 877.01% 1,700,000 0.27%
Ramaraju
8 Sri. N.R. Alluri 1,221,578 0.20% 1,221,578 0.20% (900,000) (73.68%) 321,578 0.05%
9 Sri. U. Sunil 55,000 0.01% 55,000 0.01% 7,000,000 12727.27% 7,055,000 1.12%
10 Smt. A. Bharathi 124,059 0.02% 124,059 0.02% 1,700,000 1370.32% 1,824,059 0.29%
11 Sri. A.V.N. Raju 5,730,740 0.94% (790,000) (13.79%) 4,940,740 0.81% (900,000) (18.22%) 4,040,740 0.64%
12 Smt. A. Shyama 563,902 0.09% 563,902 0.09% - 0.00% 563,902 0.09%
13 Smt. A. Subhadra 308,091 0.05% 308,091 0.05% - 0.00% 308,091 0.05%
Jyotirmayi
14 Smt. A. V. 7,288 0.00% 7,288 0.00% - 0.00% 7,288 0.00%
Satyanarayanamma
15 Smt. A. Arundhati 1,143,022 0.19% 1,143,022 0.19% 2,500,000 218.72% 3,643,022 0.58%
16 Smt. J. Sridevi 287,859 0.05% 287,859 0.05% 425,000 147.64% 712,859 0.11%
17 Smt. BH. Kaushalya 178,590 0.03% 178,590 0.03% - 0.00% 178,590 0.03%
18 Sri. J. Krishna 306,121 0.05% 306,121 0.05% 850,000 277.67% 1,156,121 0.18%
Chaitanya Varma
19 Smt. A. Sridevi 113,884 0.02% 113,884 0.02% - 0.00% 113,884 0.02%
20 Smt. M. Swetha 1,225,530 0.20% 1,225,530 0.20% - 0.00% 1,225,530 0.20%
21 Smt. A. Neelavathi 73,281 0.01% 73,281 0.01% (73,281) (100.00%) 0.00%
Devi
22 Sri. A. Sri Harsha 41,780 0.01% 41,780 0.01% 1,700,000 4068.93% 1,741,780 0.28%
Varma
23 Sri. A. Vishnu Varma 15,100 0.00% 15,100 0.00% 1,700,000 11258.28% 1,715,100 0.27%
24 Smt. A. Sravani 416,950 0.07% 4,000 0.96% 420,950 0.07% - 0.00% 420,950 0.07%
25 Smt. J. Sowjanya 559,166 0.09% 559,166 0.09% 425,000 76.01% 984,166 0.16%
26 Smt. A. Suguna - 0.00% 7,000,000 100.00% 7,000,000 1.15% (1,800,000) (25.71%) 5,200,000 0.83%
27 Smt. U. Ramya - 0.00% 3,000,000 100.00% 3,000,000 0.49% 247,281 8.24% 3,247,281 0.52%
28 Narasimha 2,196,179 0.36% 2,196,179 0.36% - 0.00% 2,196,179 0.35%
Developers Private
Limited
Total 120,042,680 19.68% 4,000 120,046,680 19.68% 18,080,000 138,126,680 22.00%
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152

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

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(in crores) As at March 31, 2023 As at March 31, 2022 17 Other Equity 17.1 Capital Reserve 6.99 6.99 17.2 Securities Premium Opening balance 2,639.62 2,639.62 Add : Premium on Issue of Share Capital 102.60 - Closing balance 2,742.22 2,639.62 17.3 Money received against share warrants (Refer note 16.5) - 26.55 17.4 General Reserve Opening balance 1,372.00 1,122.00 Add : Transfer from Retained Earnings 350.00 250.00 Closing balance 1,722.00 1,372.00 17.5 Retained Earnings (Refer note 17.5.a) Opening balance 1,669.75 1,478.42 Add : Profit for the year 569.21 490.12 2,238.96 1,968.54 Less : Appropriations Dividend distributed to equity shareholders (2022-23: 125.57 48.79 2.00 per share (2021-22: ` 0.80 per share))
Transfer to General Reserve 350.00 250.00
475.57 298.79
Closing balance 1,763.39 1,669.75
17.6 Other Components of Equity
Remeasurement gains / (losses) of the defined benefit plans (33.33) (29.18)
(Net of tax)
Exchange differences in translating the financial statements (4.94) (4.53)
of foreign operations (Net of tax)
Total 6,196.33 5,681.20
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17.5.a For the year ended March 31, 2023, the Board of Directors have proposed a dividend of 2.20 per share. The dividend payable on approval of the shareholders is 138.13 crores.

17.7 Nature of Reserves

17.7.a Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

17.7.b Capital Reserve

Capital Reserve represents reserve balances which are not available for distribution as dividend to the Company.

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Annual Report 2022-23

Notes forming part of the financial statements

17.7.c General reserve

The Company created a General Reserve in earlier years pursuant to the provisions of the Companies Act, 1956 where in certain percentage of profits were required to be transferred to General Reserve before declaring dividends. As per Companies Act, 2013 the requirements to transfer profits to General Reserve is not mandatory. General Reserve is a free reserve available to the Company.

17.7.d Retained Earnings

Retained earnings are the profits/(loss) that the Group has earned/incurred till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

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(` in crores)
As at March 31, 2023 As at March 31, 2022
Non Current Current Non Current Current
18 Borrowings (Refer note 21.2 to 21.5)
Term Loans
Secured - at amortised cost
From Banks (Refer note 18.1) 68.16 51.67 48.11 49.13
From Other Parties (Refer note 18.2) 10.23 66.55 29.93 41.22
Unsecured - at amortised cost
From Related Parties (Refer note 18.3) - 52.80 - -
Vehicle Loans
Secured - at amortised cost
From Banks (Refer note 18.4) 1.55 2.07 1.98 2.35
From Others (Refer note 18.4) 3.14 3.01 2.01 1.62
Total 83.08 176.10 82.03 94.32
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Current maturities are included in Note 21 - Borrowings.

18.1 Term Loans from Banks:

(i) Axis Bank Limited / Kotak Mahindra Bank / IndusInd Bank Limited / YES Bank Ltd
Secured by hypothecation of specific assets purchased out of the loan
(ii) Bank of Baharain & Kuwait
Exclusive charge on the entire equipment and machinery purchased out of the loan facility with a cover of minimum 1.15 times to be maintained throughout the tenor of the loan.
(iii) Karnataka Bank Ltd
Exclusive Hypothecation charge on the machineries/equipments/vehicles purchased out of the loan facility

154

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

The details of rate of interest and repayment terms of the loans are as under.

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Number of Loans Outstanding balance Interest Balance number of
Frequency
S. outstanding As at As at (` in crores) Range Installments as at Commencing
Particulars of Install-
No. % per From-To
31.03.2023 31.03.2022 31.03.2023 31.03.2022 31.03.2023 31.03.2022 ments
annum
October 10,
Axis Bank 8.26 to
(i) - 1 - 0.05 - 1 Monthly 2017 to April
Limited 9.60
20 ,2022
December
Kotak
7.57 to 20, 2018 to
(ii) Mahindra Bank 17 17 6.52 10.29 18 to 19 30 to 31 Monthly
8.10 October 10,
Limited
2024
February 01,
IndusInd Bank 8.96 to
(iii) 13 66 7.60 25.66 21 to 25 8 to 36 Monthly 2019 to April
Limited 9.06
15, 2025
Bank of November 30,
7.05 to
(iv) Bahrain and 3 1 33.14 44.97 2 to 12 6 to 12 Quarterly 2020 to Jun
9.15
Kuwait 30, 2027
June 30, 2022
Karnataka 8.01 to
(v) 23 2 66.82 6.89 21 to 30 21 to 30 Monthly to Mar 07,
Bank Ltd 9.57
2026
May 08,
8.05 to
(vi) Yes Bank Ltd 22 34 5.75 9.38 20 to 21 1 to 33 Monthly 2019 to Dec
8.80
15,2024
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18.2 i) Term Loans from Others Parties:

Secured by hypothecation of specific assets purchased out of loan, comprising Plant and Machinery and Construction equipment.

The details of rate of interest and repayment terms of term loans are as under.

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Term Loan from Tata Capital Financial Services Limited, for March 31, 2023* **62.23 crores, March 31, 2022** 45.49 crores is secured by:**

Personal Guarantee of the promoters i.e., Sri. A.A.V. Ranga Raju
First and Exclusive Charge on the assets being procured / financed and Collateral Charge on two properties.

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Notes forming part of the financial statements

18.3 Unsecured term loan from related parties:

(` in crores)

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Number of Loans Outstanding balance Interest Balance number of
Frequency
S. outstanding As at As at (` in crores) Range % Installments as at Commencing
Particulars of Install-
No. per From-To
31.03.2023 31.03.2022 31.03.2023 31.03.2022 31.03.2023 31.03.2022 ments
annum
November
OB
(i) Infrrastructure 2 - 52.80 - 8% 2 - One time 17, 2023 to
December 5,
Company Ltd
2023
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18.4 Vehicle Loans:

Vehicle loans are secured by hypothecation of the vehicles financed through the loan arrangements. Such loans are repayable in equal monthly installments over a period of 3 to 5 years and carry interest rate ranging between 7.15% to 9.91% per annum.

(` in crores)

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As at As at
March 31, 2023 March 31, 2022
19 Trade Payables (Refer note 22.2)
Retention money 22.19 19.91
Total 22.19 19.91
20 Provisions
Provision for Employee Benefits
Gratuity (Refer note 20.1) 56.20 52.52
Total 56.20 52.52
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20.1 In accordance with the Payment of Gratuity Act, 1972 the company provides for gratuity covering eligible employees. The liability on account of gratuity is covered partially through a recognized Gratuity Fund managed by Life Insurance Corporation of India (LIC) and balance is provided on the basis of valuation of the liability by an independent actuary as at the year end. The management understands that LIC overall portfolio of assets is well diversified and as such, the long term return on the policy is expected to be higher than the rate of return on Central Government bonds.

A Defined benefit plans

(i) Liability for gratuity as on March 31, 2023 is 81.26 crores (31.03.2022: 69.88 crores) of which 2.80 crores (31.03.2022: 3.13 crores) is funded with the Life Insurance Corporation of India. The balance of 78.46 crores (31.03.2022: 66.75 crores) is included in Provision for Gratuity.
(ii) Details of the Company’s post-retirement gratuity plans for its employees including whole-time directors are given below, which is certified by the actuary.

Amount to be recognised in Balance Sheet:

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(` in crores)
As at As at
March 31, 2023 March 31, 2022
Present Value of Funded Obligations 81.26 69.88
Fair Value of Plan Assets (2.80) (3.13)
Net Liability 78.46 66.75
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156

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

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

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(iii) Expenses to be recognized in Statement of Profit and Loss under Employee Benefit Expenses: (` in crores)
Year Ended Year Ended
March 31, 2023 March 31, 2022
Current Service Cost 6.74 6.09
Past Service Cost - -
Interest on Defined Benefit Obligation 4.92 4.09
Expected Return on Plan assets (0.22) (0.18)
Total included in “Employee Benefits Expense” 11.44 10.00
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(iv) Expenses to be recognized in Statement of Profit and Loss under Other Comprehensive Income: (in crores) Year Ended Year Ended March 31, 2023 March 31, 2022 Return on Plan Assets 0.17 0.03 Net Actuarial Losses / (Gains) Recognised in Year 5.38 2.71 Total included in “Other Comprehensive Income” 5.55 2.74 (v) Reconciliation of benefit obligation and plan assets for the year: ( in crores)
Year Ended Year Ended
March 31, 2023 March 31, 2022
Change in Defined Benefit Obligation
Opening Defined Benefit Obligation 69.88 61.53
Current Service Cost 6.74 6.09
Past Service Cost - -
Increase / (Decrease) due to effect of any business combination / divesture / transfer - 0.07
Interest Cost 4.92 4.09
Actuarial Losses / (Gain) 5.38 2.71
Benefits Paid (5.66) (4.61)
Closing Defined Benefit Obligation 81.26 69.88
Opening Fair Value of Plan assets 3.13 2.31
Expected Return on Plan Assets 0.05 0.22
Contributions 5.27 5.21
Benefits Paid (5.65) (4.61)
Closing Fair Value of Plan Assets 2.80 3.13
Expected Employer’s Contribution Next Year 6.00 15.00
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Notes forming part of the financial statements

(vi) Asset information:

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As at As at
March 31, 2023 March 31, 2022
Category of Assets
Insurer Managed Funds –Life Insurance Corporation of India 100% 100%
Amount - in crores 2.80 3.13 (vii) Experience Adjustments: ( in crores)
2022-23 2021-22 2020-21 2019-20 2018-19
Defined Benefit Obligations (DBO) 81.26 69.88 61.53 48.16 32.88
Plan Assets 2.80 3.13 2.31 4.05 6.36
Surplus / (Deficit) (78.46) (66.75) (59.22) (44.11) (26.52)
Experience Adjustments on Plan Liabilities - - - - -
Experience Adjustments on Plan Assets 0.05 0.22 0.21 0.25 0.25
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(viii) Sensitivity Analysis:

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Gratuity Plan
As at As at
March 31, 2023 March 31, 2022
Assumptions
Discount rate 7.51% 7.33%
Estimated rate of return on plan assets 7.51% 7.35%
Expected rate of salary increase 7.00% 6.00%
Attrition rate 24.00% 14.60%
Sensitivity analysis – DBO at the end of the year
Discount rate + 100 basis points (2.91%) (4.10%)
Discount rate - 100 basis points 3.12% 4.50%
Salary increase rate +1% 3.10% 4.40%
Salary increase rate -1% (2.98%) (4.10%)
Attrition rate +1% 0.03% 0.20%
Attrition rate -1% (0.03%) (0.30%)
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The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

(ix) The following pay-outs are expected in future years:

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(ix) The following pay-outs are expected in future years: (` in crores)
Particulars March 31, 2023
March 31, 2024 22.43
March 31, 2025 16.20
March 31, 2026 13.00
March 31, 2027 11.13
March 31, 2028 9.41
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20.2 The Liability for Cost of Compensated absences is 50.52 crores (31.03.2022: 50.09 crores) has been actuarially determined and provided for in the books.

158

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

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(` in crores)
As at As at
March 31, 2023 March 31, 2022
21 Borrowings
Loans repayable on demand
Secured Loans - Banks
Working Capital Demand Loan (Refer note 21.1) 719.96 1,004.96
Cash Credit (Refer note 21.1) 0.43 2.77
Current maturities of Long Term Borrowings (Refer note 18.1) 176.10 94.32
Total 896.49 1,102.05
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21.1 Working Capital Demand Loans and Cash Credit facilities availed from consortium of banks are secured by:
a) Hypothecation against first charge on stocks, book debts and other current assets of the Company, (excluding specific projects) both present and future, ranking parri passu amongst consortium banks.
b) Collateral Security pari passu first charge (Hypothecation / Pledge) amongst the members of consortium on unencumbered movable fixed assets of the Company at WDV (specific assets) and Shares of NCC Infrastructure Holdings Limited (Refer note 4.3) and NCC Urban Infrastructure Limited (Refer note 4.4).
c) Equitable mortgage of sixteen properties (Land & Buildings).
d) Personal Guarantee of Sri. A A V Ranga Raju, Sri A G K Raju & Sri A S N Raju.
- These facilities carry an interest rate of 8.00% to 11.50% per annum.
21.2 The Company used the borrowings from banks and financial institutions for the specific purpose for which it was taken.
21.3 The Company has borrowings from banks on the basis of security of current assets, and the quarterly returns and statements of current assets filed by the Company with banks are in agreement with the books of accounts.
21.4 The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries).
21.5 The company is not declared as a wilful defaulter by any bank or financial Institution or other lender during the financial year.

(` in crores)

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As at March 31, 2023 As at March 31, 2022
22 Trade Payables (Refer note 22.3)
Micro and small enterprises 47.28 34.03
Other than micro and small enterprises
Acceptances 935.56 686.83
Other than Acceptances (includes retention money payable) 3,817.71 3,539.80
4,753.27 4,226.63
Total 4,800.55 4,260.66
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Notes forming part of the financial statements

(` in crores)

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As at March 31, 2023 As at March 31, 2022
22.1 Trade payable other than acceptances include certain dues to Micro
and Small Enterprises, under the Micro, Small and Medium Enterprises
Development Act, 2006 that have been determined based on the
information available with the company and the required disclosures
are given below:
a) Principal amount remaining unpaid 47.28 34.03
b) Interest due thereon 0.04 0.10
- -
c) Interest paid by the Company in terms of Section 16 of Micro, Small
and Medium Enterprises Development Act, 2006, along with the
amount of the payment made to the supplier beyond the appointed
day during the year.
d) Interest due and payable for the period of delay in making payment - -
(which have been paid but beyond the day during the year) but
without adding the interest specified under Micro, Small and Medium
Enterprises Development Act, 2006.
e) Interest accrued and remaining unpaid at the end of accounting year - -
f) Further interest remaining due and payable even in the succeeding - -
years, until such date when the interest dues as above are actually paid
to the small enterprises.
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22.2 Ageing of Non-current Trade payables as on 31.03.2023:

(` in crores)

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Outstanding from the due date of payment
Particulars
Not Due Less than1 year 1-2 years 2-3 years More than 3 years Total
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Particulars	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment
	Not Due	Less than1year	1-2years	2-3years	More than 3years	Total

(i)MSME	-	-	-	-	-	-
(ii)Others	22.19	-	-	-	-	22.19
(iii)Disputed dues - MSME	-	-	-	-	-	-
(iv)Disputed dues - Others	-	-	-	-	-	-
Total	22.19	-	-	-	-	22.19

Ageing of Non-current Trade payables as on 31.03.2022:

(` in crores)

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Outstanding from the due date of payment
Particulars
Not Due Less than1 year 1-2 years 2-3 years More than 3 years Total
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Particulars	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment
	Not Due	Less than1year	1-2years	2-3years	More than 3years	Total

(i)MSME	-	-	-	-	-	-
(ii)Others	19.66	0.25	-	-	-	19.91
(iii)Disputed dues - MSME	-	-	-	-	-	-
(iv)Disputed dues - Others	-	-	-	-	-	-
Total	19.66	0.25	-	-	-	19.91

160

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

22.3 Ageing of Current Trade payables as on 31.03.2023:

(` in crores)

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Outstanding from the due date of payment
Particulars
Not Due Less than1 year 1-2 years 2-3 years More than 3 years Total
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Particulars	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment
	Not Due	Less than1year	1-2years	2-3years	More than 3years	Total

(i)MSME	-	47.28	-	-	-	47.28
(ii)Others	2,516.02	1,709.55	0.28	6.56	45.46	4,277.87
(iii)Disputed dues - MSME	-	-	-	-	-	-
(iv)Disputed dues - Others	13.88	-	-	-	7.44	21.32
	2,529.90	1,756.83	0.28	6.56	52.90	4,346.47
Accrued expenses	-	-	-	-	-	454.08
Total						4,800.55

Ageing of Current Trade payables as on 31.03.2022:

(` in crores)

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Outstanding from the due date of payment
Particulars
Not Due Less than1 year 1-2 years 2-3 years More than 3 years Total
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Particulars	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment
	Not Due	Less than1year	1-2years	2-3years	More than 3years	Total

(i)MSME	-	34.03	-	-	-	34.03
(ii)Others	2,256.78	1,217.86	6.56	9.46	54.46	3,545.12
(iii)Disputed dues - MSME	-	-	-	-	-	-
(iv)Disputed dues - Others	13.32	-	-	-	7.89	21.21
	2,270.10	1,251.89	6.56	9.46	62.35	3,600.36
Accrued expenses	-	-	-	-	-	660.30
Total						4,260.66

(` in crores)

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As at March 31, 2023 As at March 31, 2022
23 Other Financial Liabilities
Interest Accrued but not due on borrowings and others 99.04 87.28
Unpaid Dividend Accounts (Refer note 11.5) 0.62 0.52
Book over draft 7.17 -
Other Payables
Interest Accrued on Trade Payables (Refer note 22.1) 0.04 0.10
Total 106.87 87.90
24 Provisions
Provision for Employee Benefits
Compensated absences (Refer note 20.2) 50.52 50.10
Gratuity (Refer note 20.1) 22.26 14.23
Total 72.78 64.33
25 Other Current Liabilities
TDS / Service Tax / Other payable 45.07 28.67
Contract Liabilities
Mobilisation Advance from Customers 2,755.24 2,055.41
Advances from Customers 334.61 184.27
Advances from others 104.69 85.69
Total 3,239.61 2,354.04
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Notes forming part of the financial statements

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(` in crores)
Year Ended March 31, 2023 Year Ended March 31, 2022
26 Revenue from Operations
Income from Contracts and Services 13,190.77 9,860.00
Other Operating Income 160.55 70.03
Total 13,351.32 9,930.03
27 Other Income
Interest Income
On Deposits and Others 25.13 16.14
On Loans and Advances 39.57 31.21
On Income Tax refund 0.97 8.32
On Others 10.23 4.75
Dividend Income 12.24 11.68
Net Gain / (Loss) on foreign currency transactions 0.14 3.53
Other Non-Operating Income
Rental Income from operating lease on 10.30 3.69
investment property
Profit on Sale of Property, Plant and Equipment 47.33 2.32
/ Investment Property (Net)
Miscellaneous Income 6.34 26.57
Total 152.25 108.21
28 Cost of Materials Consumed 4,750.99 3,393.62
29 Construction Expenses
Transport Charges 61.19 45.91
Operation and Maintenance
Machinery 334.84 383.26
Others 31.37 17.80
366.21 401.06
Hire Charges for Machinery and others 205.42 164.00
Power and Fuel 33.24 40.13
Technical Consultation 106.85 53.74
Royalties, Seigniorage and Cess 46.59 40.52
Other Expenses 482.01 402.45
Expected credit loss for unbilled revenue 29.45 30.01
903.56 730.85
Total 1,330.96 1,177.82
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162

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

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(` in crores)
Year Ended Year Ended
March 31, 2023 March 31, 2022
30 Employee Benefits Expense
Salaries and Other Benefits 466.20 388.95
Contribution to Provident Fund and Other Funds (Refer note 20.1 and 43.72 28.65
30.1)
Staff Welfare Expenses 10.50 11.53
Total 520.42 429.13
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30.1 Defined contribution plans

The Company made Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised 21.00 crores (31.03.2022: 18.84 crores) for Provident Fund contributions and 11.28 crores (31.03.2022: Nil) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

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(` in crores)
Year Ended Year Ended
March 31, 2023 March 31, 2022
31 Finance Costs
Interest Expense on
Borrowings
Term Loans 19.60 15.80
Working Capital Demand Loans and Cash Credit 153.53 159.20
Mobilisation Advance 109.70 117.78
Letter of Credit and Others 51.99 27.30
334.82 320.08
Other Borrowing Costs
Commission on - Bank Guarantees 126.79 107.32
- Letter of Credit 34.54 22.02
161.33 129.34
Bank and Other Financial Charges 13.85 10.18
Total 510.00 459.60
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Notes forming part of the financial statements

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(` in crores)
Year Ended Year Ended
March 31, 2023 March 31, 2022
32 Other Expenses
Rent 64.77 59.54
Travelling and Conveyance 31.59 21.51
Office Maintenance 34.95 27.66
Electricity Charges 10.31 8.10
Rates and Taxes 7.76 5.94
Consultation Charges 14.97 13.16
Postage, Telegrams and Telephones 3.25 2.92
Insurance 13.23 9.56
Printing and Stationery 6.19 5.12
Legal and Professional Charges 27.57 17.06
Auditors' Remuneration (Refer note 32.1) 2.06 1.88
Directors' Sitting Fees 0.34 0.35
Trade Receivables / Advances written off 0.42 2.00
Provision for Doubtful Trade Receivables / Advances / Others 5.00 13.00
Tender Schedule Expenses 1.70 1.38
Donations 41.36 3.55
CSR Expenditure (Refer note 39) 7.80 10.67
Software Acquisition Expenses 7.84 4.90
Repairs & Maintenance 8.97 7.34
Digitization Expenses 4.35 6.79
Miscellaneous Expenses 12.34 10.14
Total 306.77 232.57
32.1 Auditors’ Remuneration
Statutory Audit fee 1.95 1.70
Certification fee 0.11 0.18
Total 2.06 1.88
33 Tax Expense
Current Tax (including earlier year taxes) 207.74 130.21
Deferred Tax 8.01 (12.31)
Total 215.75 117.90
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164

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

33.1 Reconciliation of tax expense to the accounting profit is as follows:

(` in crores)

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Year Ended Year Ended
March 31, 2023 March 31, 2022
Accounting profit before tax 784.96 608.02
Tax expense at statutory tax rate at 25.168% 197.56 153.03
Adjustments:
Effect of income that is exempt from taxation (3.08) -
Adjustments recognised in the current year in relation to the current tax 15.15 (2.79)
of prior years
Effect of expenses that are not deductible in determining taxable profit 15.12 13.64
Effect of capital gains set off with unused capital losses (7.99) (47.51)
Others including effect of differential tax rates in joint operations (1.01) 1.53
18.19 (35.13)
Tax expense reported in the Statement of Profit and Loss 215.75 117.90
33.2 Income tax credit / (expense) recognized in Other Comprehensive Income: (` in crores)
Year ended Year ended
March 31, 2023 March 31, 2022
Tax effect on actuarial gains/losses on defined benefit obligations 1.40 0.69
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33.3 The Company does not have any transaction which is not recorded in the books of accounts that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
33.4 In the month of November 2022, the Income Tax Department carried out a survey under section 133A of the Income Tax Act requiring the Company to provide details of transactions, if any, with certain vendors. The Company has provided required documentary evidences related to such transactions to the department. Based on internal assessment and review, management does not expect any material impact arising thereof in this regard.

165

Annual Report 2022-23

Notes forming part of the financial statements

34 Contingent Liabilities and Commitments (to the extent not provided for)

(i) Contingent Liability

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(` in crores)
As at As at
March 31, 2023 March 31, 2022
(a) Matters under litigation
Claims against the company not acknowledged as debt
- Disputed sales tax / entry tax liability for which the Company 235.79 290.53
preferred appeal
- Disputed central excise duty relating to clearance of goods of LED 0.46 0.46
division in favour of Developers of SEZ, for which the Company
has filed an appeal to CESTAT, Bangalore
- Disputed Service tax liability for which the Company preferred 93.94 96.31
appeal
- Others 31.52 37.43
interest, if any, not ascertainable after the date of order.
(b) Guarantees
Corporate Guarantees / Comfort Letter given to Banks for financial - 31.97
assistance extended to Subsidiaries.
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The Company has filed claims and has also filed counter claims in several legal disputes related to construction contracts and same are pending before legal authorities. The Management does not expect any material adverse effect on its financial position.

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(ii) Commitments (` in crores)
As at As at
March 31, 2023 March 31, 2022
(a) Estimated amount of contracts remaining to be executed on capital 1.74 108.59
account and not provided for.
(b) Future Export commitments on account of import of machinery and - 1.76
equipments at concessional rate of duty under EPCG scheme
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166

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

35. Related Party Transactions

i) Following is the list of related parties and relationships:

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----- Start of picture text -----

S.No Particulars S.No Particulars
----- End of picture text -----

S.No	Particulars	S.No	Particulars

	List of entities over which control exist	33	Samashti Gas Energy Limited
A)	Subsidiaries	34	NCC Infra Limited
1	NCC Infrastructure Holdings Limited	35	NCC Urban Homes Private Limited
2	NCC Urban Infrastructure Limited	36	NCC Urban Ventures Private Limited
3	NCC Vizag Urban Infrastructure Limited$$	37	NCC Urban Meadows Private Limited$
4	NCC Infrastructure Holdings Mauritius Pte Limited	38	NCC Urban Villas Private Limited$
5	Nagarjuna Construction Company International L.L.C.	39	Nagarjuna Suites Private Limited ^^
6	Nagarjuna Contracting Co. L.L.C.	40	OB Infrastructure Limited
7	NCC International Convention Centre Limited#	41	Savitra Agri Industrial Park Private Limited
8	Pachhwara Coal Mining Private Limited	B)	Associates
9	Talaipalli Coal Mining Private Limited	42	Paschal Form Work (India) Private Limited
	Step-Down Subsidiaries	43	Nagarjuna Facilities Management Services L.L.C.
10	Dhatri Developers & Projects Private Limited	44	Apollonius Coal and Energy Pte. Ltd.
11	Sushanti Avenues Private Limited	45	Ekana Sportz City Private Limited
12	Sushrutha Real Estate Private Limited	46	Brindavan Infrastructure Company Limited
13	PRG Estates LLP	47	Pondicherry Tindivanam Tollway Private Limited
14	Thrilekya Real Estates LLP	C)	Key Management Personnel
15	Varma Infrastructure LLP	48	Sri. A.A.V. Ranga Raju
16	Nandyala Real Estates LLP	49	Sri. A.S.N. Raju
17	Kedarnath Real Estates LLP	50	Sri. A.G.K. Raju
18	AKHS Homes LLP	51	Sri. A.V.N. Raju
19	JIC Homes Private Limited	52	Sri. J.V. Ranga Raju
20	Sushanti Housing Private Limited	53	Sri. Utpal Hemendra Sheth
21	CSVS Property Developers Private Limited	54	Smt. Renu Challu
22	Vera Avenues Private Limited	55	Sri. Hemant Madhusudan Nerurkar
23	Sri Raga Nivas Property Developers LLP	56	Dr. Durga Prasad Subramanyam Anapindi
24	VSN Property Developers LLP	57	Sri. Om Prakash Jagetiya
25	M A Property Developers Private Limited	58	Sri. K. Krishna Rao
26	Vara Infrastructure Private Limited$	59	Sri. M.V. Srinivasa Murthy
27	Sri Raga Nivas Ventures Private Limited ^	D)	Relatives of Key Management Personnel
28	Mallelavanam Property Developers Private Limited	60	Dr. A.V.S. Raju
29	Sradha Real Estates Private Limited$	61	Smt. A. Satyanarayanamma
30	Siripada Homes Private Limited$	62	Sri. N.R. Alluri
31	Al Mubarakia Contracting Co. L.L.C.	63	Sri. A. Srinivasa Rama Raju
32	NCCA International Kuwait General Contracts Company L.L.C.	64	Smt. BH. Kaushalya

167

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Notes forming part of the financial statements

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----- Start of picture text -----

S.No Particulars S.No Particulars
----- End of picture text -----

S.No	Particulars	S.No	Particulars

65	Smt. J. Sridevi	79	Smt. A. Sravani
66	Smt. J. Sowjanya	80	Smt. U Ramya
67	Smt. A. Arundhati	E)	Enterprises owned or significantly influenced by key management personnel or their relatives
68	Smt. M. Swetha	81	NCC Blue Water Products Limited
69	Sri. J. Krishna Chaitanya Varma	82	Shyamala Agro Farms LLP##
70	Smt. A. Subhadra Jyotirmayi	83	Ranga Agri Impex LLP
71	Smt. A. Shyama	84	NCC Foundation
72	Smt. A. Suguna	85	Sirisha Projects Private Limited
73	Sri. A. Sri Harsha Varma	86	Narasimha Developers Private Limited
74	Sri. S.R.K. Surya Srikrishna Raju	87	Arnesh Ventures Private Limited
75	Sri. A. Vishnu Varma	88	AVSR Holdings Private Limited
76	Smt. A. Nikitha	89	Sridevi Properties
77	Sri. U. Sunil	90	Matrix Security and Surveillance Private Limited
78	Sri. P. Manoj Raj	91	Jampana Constructions Private Limited

Struck off from the register of companies w.e.f June 22, 2021.

$ Struck off from the register of companies w.e.f April 09, 2021.
^ Struck off from the register of companies w.e.f December 02, 2021.
$$ Ceased to be Subsidiary with effect from March 31, 2022.
^^ Struck off from the register of companies w.e.f January 31,2022.
Converted into LLP with effect from June 28,2021.

168

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

(ii) Related Party transactions during the year are as follows:

(` in crores)

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----- Start of picture text -----

Enterprises owned
and significantly
Subsidiaries Key Management
influenced by
S. (including Step- Associates personnel and
Particulars key management
No down Subsidiaries) relatives
personnel or their
relatives
2022-23 2021-22 2022-23 2021-22 2022-23 2021-22 2022-23 2021-22
----- End of picture text -----

S. No	Particulars	Subsidiaries (including Step- down Subsidiaries)	Subsidiaries (including Step- down Subsidiaries)	Associates	Associates	Key Management personnel and relatives	Key Management personnel and relatives	Enterprises owned and significantly influenced by key management personnel or their relatives	Enterprises owned and significantly influenced by key management personnel or their relatives
		2022-23	2021-22	2022-23	2021-22	2022-23	2021-22	2022-23	2021-22

1	CCDs converted to Equity Shares	135.24	-	-	-	-	-	-	-
2	Advances written- off	-	0.99	-	-	-	-	-	-
3	Loans granted	-	105.77	-	-	-	-	-	-
4	Loan repayment received	64.56	131.12	-	-	-	-	-	-
5	Term Loan taken	52.80	-	-	-	-	-	-	-
6	Advances granted	-	0.99	-	-	-	-		4.91
7	Advances Repayment received /Adjusted	2.13	13.63	-	-	-	-	-	-
8	Advances repaid / adjusted	-	-	-	-	-	-	0.01	0.09
9	Interest received/adjusted	-	14.87	-	-	-	-	-	-
10	Remittance to Trade Payables	0.13	-	-	0.86	-	-	0.05	3.88
11	Other Operating Income	35.58	17.30	-	-	-	-	-	-
12	Material Purchase and Services	-	-	0.50	0.51	-	-	-	-
13	Interest Income	0.75	29.79	-	-	-	-	-	-
14	Reimbursement of expenses	0.37	1.11	-	-	0.02	0.02	0.12	0.24
15	Sub-Contractors work bills	-	-	-	-	-	-	0.26	12.83
16	Remuneration (Including commission)*
	Short-term employee benefits	-	-	-	-	31.54	22.67	-	-
	Post employee benefits	-	-	-	-	0.83	0.69	-	-
17	Directors sitting fee and commission	-	-	-	-	0.34	0.85	-	-
18	Other income	0.04	0.19	-	-	-	-	-	-
19	Commission income on Corporate Guarantees	-	8.74	-	-	-	-	-	-
20	Dividend income	12.24	11.68	-	-	-	-	-	-
21	Interest expense	3.20	-	-	-	-	-	-	-
22	Rent expenses	-	-	-	-	0.70	0.70	12.18	10.27
23	Contribution towards Corporate Social Responsibility	-	-	-	-	-	-	3.16	5.41
24	Dividend paid	-	-	-	-	9.26	2.89	17.95	6.69
25	Reduction in Corporate Guarantees	31.97	157.04	-	-	-	-	-	-
26	Corporate Guarantees / Comfort Letter given	-	31.48	-	-	-	-	-	-

As the future liabilities for gratuity and leave encashment is provided on actuarial basis for the Company as a whole, the amount pertaining to the Directors is not ascertainable, therefore not included above.

169

Annual Report 2022-23

Notes forming part of the financial statements

(iii) Related Party balances outstanding are as follows:

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----- Start of picture text -----

(` in crores)
Enterprises owned
and significantly
Subsidiaries Key Management
influenced by
(including Step-down Associates personnel and
key management
S. Subsidiaries) relatives
Particulars personnel or their
No
relatives
As at As at As at As at As at As at As at As at
March March March March March March March March
31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022
----- End of picture text -----

S. No	Particulars	Subsidiaries (including Step-down Subsidiaries)	Subsidiaries (including Step-down Subsidiaries)	Associates	Associates	Key Management personnel and relatives	Key Management personnel and relatives	Enterprises owned and significantly influenced by key management personnel or their relatives	Enterprises owned and significantly influenced by key management personnel or their relatives
		As at March 31, 2023	As at March 31, 2022	As at March 31, 2023	As at March 31, 2022	As at March 31, 2023	As at March 31, 2022	As at March 31, 2023	As at March 31, 2022

1	Debit Balances outstanding
	NCC Urban Infrastructure Limited	0.34	22.59	-	-	-	-	-	-
	NCC Infrastructure Holdings Mauritius Pte. Limited	26.48	57.49	-	-	-	-	-	-
	Nagarjuna Construction Company International L.L.C	-	3.01	-	-	-	-	-	-
	Talaipalli Coal Mining Private Limited	0.14	0.14	-	-	-	-	-	-
	Pachhwara Coal Mining Private Limited	5.53	-	-	-	-	-	-	-
	Paschal Form Work (India) Private Limited	-	-	0.02	-	-	-	-	-
	Ekana Sportz City Private Limited	-	-	50.25	50.25	-	-	-	-
	Sridevi Properties	-	-	-	-	-	-	0.19	0.19
	Jampana Construction Private Limited	-	-	-	-	-	-	3.57	3.57
	Sri J V Ranga Raju	-	-	-	-	0.08	0.08	-	-
	Smt J Sowjanya	-	-	-	-	0.10	0.10	-	-
	Smt J.Sridevi	-	-	-	-	0.08	0.08	-	-
	Sri J.Krishna Chaitanya Varma	-	-	-	-	0.13	0.13	-	-
2	Credit Balances outstanding
	NCC Urban Infrastructure Limited	0.32	0.45	-	-	-	-	-	-
	OB Infrastructure Limited	55.68	-	-	-	-	-	-	-
	Nagarjuna Facilities Management Services L.L.C	-	-	0.25	0.25	-	-	-	-
	Shyamala Agro Farms LLP	-	-	-	-	-	-	-	0.03
	Jampana Construction Private Limited	-	-	-	-	-	-	0.98	0.75
	Sridevi Properties	-	-	-	-	-	-	0.26	0.12

170

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

(iii) Related Party balances outstanding are as follows:

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S. No	Particulars	Subsidiaries (including Step-down Subsidiaries)	Subsidiaries (including Step-down Subsidiaries)	Associates	Associates	Key Management personnel and relatives	Key Management personnel and relatives	Enterprises owned and significantly influenced by key management personnel or their relatives	Enterprises owned and significantly influenced by key management personnel or their relatives
		As at March 31, 2023	As at March 31, 2022	As at March 31, 2023	As at March 31, 2022	As at March 31, 2023	As at March 31, 2022	As at March 31, 2023	As at March 31, 2022

	Matrix Security and Surveillance Pvt. Ltd	-	-	-	-	-	-	0.01	0.02
	Sri. A.A.V. Ranga Raju*	-	-	-	-	4.24	2.68	-	-
	Sri. A.S.N. Raju*	-	-	-	-	2.27	1.42	-	-
	Sri. A.G.K. Raju*	-	-	-	-	2.27	1.42	-	-
	Sri. A.V.N. Raju	-	-	-	-	2.27	1.42	-	-
	Sri. J.V. Ranga Raju	-	-	-	-	0.59	0.34	-	-
	Sri. Hemant Madhusudan Nerurkar	-	-	-	-	-	0.14	-	-
	Smt. Renu Challu	-	-	-	-	-	0.09	-	-
	Dr. Durga Prasad Subramanyam Anapindi	-	-	-	-	-	0.14	-	-
	Sri. Om Prakash Jagetiya	-	-	-	-	-	0.09	-	-
	Sri, K. Krishna Rao	-	-	-	-	0.05	0.05	-	-
	Sri. M.V. Srinivasa Murthy	-	-	-	-	0.06	0.05	-	-
	Sri. S.R.K.Surya Srikrishna Raju	-	-	-	-	0.05	0.05	-	-
	Sri. A. Vishnu Varma	-	-	-	-	0.10	0.07	-	-
	Smt A. Nikhita	-	-	-	-	0.02	0.05	-	-
	Sri. P. Manoj Raj	-	-	-	-	0.05	0.03	-	-
	Sri. Sri Harsha Varma	-	-	-	-	0.07	0.04	-	-
	Sri. U Sunil	-	-	-	-	0.05	0.07	-	-
	Sri. J Krishna Chaitanya Varma	-	-	-	-	0.34	0.19	-	-
	Smt J.Sowjanya	-	-	-	-	0.11	0.05	-	-
	Smt J. Sridevi	-	-	-	-	0.06	0.03	-	-
	Smt. BH. Kaushalya	-	-	-	-	0.02	0.02	-	-
3	Corporate Guarantees / Comfort Letter given
	Nagarjuna Construction Company International L.L.C	-	0.49	-	-	-	-	-	-
	NCC Urban Infrastructure Limited	-	31.48	-	-	-	-	-	-

Refer note 18 and 21 for details of personal guarantee given by Directors.

171

Annual Report 2022-23

Notes forming part of the financial statements

(iv) Disclosure in respect of transactions which are more than 10% of the total transactions of the same type with related parties during the year.

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----- Start of picture text -----

(` in Crores)
Particulars 2022 - 23 2021 - 22
----- End of picture text -----

Particulars	2022 - 23	2021 - 22

CCDs converted to Equity Shares
- NCC Infrastructure Holdings Mauritius Pte. Limited	135.24	-
Advances written off
- Nagarjuna Construction Company International L.L.C	-	0.99
Loans granted
- NCC Vizag Urban Infrastructure Limited	-	100.58
Loan repayment received
- NCC Urban Infrastructure Limited	22.31	127.18
- NCC Infrastructure Holdings Mauritius Pte. Limited	41.01	-
Term Loan taken
- OB Infrastructure Limited	52.80	-
Advances granted
- Jampana Construction Private Limited	-	4.91
- Nagarjuna Construction Company International L.L.C	-	0.95
Advances Repayment received / Adjusted
- Nagarjuna Construction Company International L.L.C	2.13	13.63
Advances repaid / adjusted
- NCC Blue Water Products Limited	0.01	0.09
Interest received /Adjusted
- NCC Urban Infrastructure Limited	-	13.21
- NCC Vizag Urban Infrastructure Limited	-	1.66
Remittance to Trade Payables
- NCC Urban Infrastructure Limited	0.13	-
- Jampana Construction Private Limited	0.05	3.86
- Paschal Form Work (India) Private Limited	-	0.86
Other Operating Income
- Pachhwara Coal Mining Private Limited	35.58	17.30
Material Purchases and Services
- Paschal Form Work (India) Private Limited	0.50	0.51
Interest Income
- NCC Urban Infrastructure Limited	0.75	13.21
- NCC Vizag Urban Infrastructure Limited	-	16.58
Reimbursement of Expenses
- Nagarjuna Construction Company International LLC	0.37	1.09
- Sridevi Properties	0.11	-

172

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

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----- Start of picture text -----

(` in crores)
Particulars 2022 - 23 2021 - 22
----- End of picture text -----

Particulars	2022 - 23	2021 - 22

Sub-Contractors work bills
- Jampana Construction Private Limited	0.26	12.83
Remuneration (Including Commission)
- Sri A.A.V. Ranga Raju	9.29	6.41
- Sri A.S.N. Raju	4.78	3.28
- Sri A.G.K. Raju	4.75	3.27
- Sri A.V.N. Raju	4.70	3.22
Directors sitting fee and commission
- Sri. Hemant Madhusudan Nerurkar	0.07	0.23
- Smt. Renu Challu	0.06	0.17
- Dr. Durga Prasad Subramanyam Anapindi	0.09	0.24
- Sri. Om Prakash Jagetiya	0.08	0.17
- Sri. Utpal Hemendra Sheth$	0.04	-
Other income
- NCC Urban Infrastructure Limited	0.04	0.04
- NCC Vizag Urban Infrastructure Limited	-	0.15
Commission income on Corporate Guarantees
- Nagarjuna Construction Company International LLC	-	8.74
Dividend income
- Pachhwara Coal Mining Private Limited	12.24	11.68
Interest expense
- OB Infrastructure Limited	3.20	-
Rent expenses
- Sirisha Projects Private Limited	11.34	9.47
Contribution towards Corporate Social Responsibility
- NCC Foundation	3.16	5.41
Dividend paid
- AVSR Holdings Private Limited	13.31	5.02
- Sirisha Projects Private Limited	4.20	1.49
Reduction in Corporate Guarantees
- Nagarjuna Construction Company International LLC	-	101.63
- NCC Urban Infrastructure Limited	31.48	55.41
Corporate Guarantees / Comfort Letter given
- NCC Urban Infrastructure Limited	-	31.48

$ Transactions occurred during the previous year with the party do not exceed 10% of the total transaction value. Hence, amount not disclosed.

173

Annual Report 2022-23

Notes forming part of the financial statements

36 Segment Reporting:

In accordance with Ind AS 108 “Operating Segments”, segment information has been given in the consolidated financial statements of NCC Limited and therefore no separate disclosure on segment information is given in these financial statements.

37 Earnings per share:

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Year Ended Year Ended
March 31, 2023 March 31, 2022
Net Profit after tax available for equity shareholders (in crores) 569.21 490.12 Weighted Average number of equity shares for Basic EPS (Nos) 623,389,054 609,846,588 Weighted Average number of equity shares for Diluted EPS (Nos) 623,726,137 614,097,235 Face value per share () 2.00 2.00
Basic EPS () 9.13 8.04 Diluted EPS () 9.13 7.98
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38 Financial instruments:

38.1 Capital management

The Company’s capital management objective is to maximise the total shareholder return by optimising cost of capital through flexible capital structure that supports growth. Further, the Company ensures optimal credit risk profile to maintain / enhance credit rating.

The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The funding requirements are met through internal accruals and long-term/short-term borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

For the purpose of capital management, capital includes issued equity capital, securities premium and all other revenue reserves. Net debt includes all long and short-term borrowings as reduced by cash and cash equivalents.

The following table summarises the capital of the Company:

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(` in crores)
As at As at
March 31, 2023 March 31, 2022
Equity 6,321.90 5,803.17
Short-term borrowings and current portion of long-term borrowings 896.49 1,102.05
Long-term borrowings 83.08 82.03
Cash and cash equivalents (227.41) (235.39)
Net debt 752.16 948.69
Total capital (equity + net debt) 7,074.06 6,751.86
Gearing ratio 0.12 0.16
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174

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

38.2 Categories of financial instruments

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38.2 Categories of financial instruments (` in crores)
As at As at
March 31, 2023 March 31, 2022
Financial assets
Measured at fair value through profit or loss (FVTPL)
Mandatorily measured:
Equity investments in other entities 1.52 1.52
Investments in Mutual funds 1.10 1.07
Measured at amortised cost
Cash and bank balances 645.63 558.54
Other financial assets at amortised cost 3,711.77 3,325.82
Measured at cost
Investments in equity instruments in subsidiaries and associates
a) Equity shares 871.90 756.66
b) Debentures - 135.24
5,231.92 4,778.85
Financial liabilities
Measured at amortised cost 5,909.18 5,552.55
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38.3 Financial risk management objectives

The Company’s business activities exposed to a variety of financial risk viz., market risk, credit risk and liquidity risk. The Company’s focus is to estimate a vulnerability of financial risk and to address the issue to minimize the potential adverse effects of its financial performance.

i) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company’s exposure to market risk is primarily on account of the following:

Interest rate risk

Out of total borrowings, large portion represents short term borrowings (WCDL) and the interest rate primarily basing on the Company’s credit rating and also the changes in the financial market. Company continuously monitoring over all factors influence rating and also factors which influential the determination of the interest rates by the banks to minimize the interest rate risks.

The Company’s exposure to changes in interest rates relates primarily to the Company’s outstanding floating rate borrowings. Out of the total borrowings of 979.57 crores (31.03.2022: 1,184.08 crores) as of 31.03.2023, the floating rate borrowings are 878.07 crores (31.03.2022: 1,052.71 crores). For every 50 base points change in the interest rate when no change in other variables, it will affect the profit before tax by 4.39 crores for the year ended March 31, 2023 (31.03.2022: 5.26 crores).

Foreign currency risk

The Company has several balances in foreign currency and consequently the Company is exposed to foreign exchange risk. The exchange rate between the rupee and foreign currencies has changed substantially in recent years, which has affected the results of the Company, and may fluctuate substantially in the future. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

We summarize below the financial instruments which have the foreign currency risks as at March 31, 2023 and March 31, 2022.

175

Annual Report 2022-23

Notes forming part of the financial statements

(a) The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities based on gross exposure at the end of the reporting period is as under:

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Liabilities Assets
Currency As at As at As at As at
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
USD (crores) 4.31 4.23 5.59 5.89
INR (in crores) 354.60 320.60 459.14 446.56 OMR (crores) - - - 0.01 INR ( in crores) - - - 1.24
EURO (crores) - 0.08 - -
INR (in crores) - 6.92 - - GBP (crores) - 0.10 - - INR ( in crores) - 10.20 - -
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The Company doesn't have any forex derivative instrument, hence all the above balances are unhedged.

(b) Foreign currency sensitivity analysis:

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

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(in crores) As at As at Currency USD impact on: March 31, 2023 March 31, 2022 Impact of 1 strengthening against US Dollar on profit or (loss) for the year (1.27) (1.66)
Impact of 1 weakening against US Dollar on profit or (loss) for the year 1.27 1.66 Impact of 1 strengthening against US Dollar on Equity as at the end of the (1.27) (1.66)
reporting period
Impact of ` 1 weakening against US Dollar on Equity as at the end of the 1.27 1.66
reporting period
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ii) Credit risk management

Credit Risk refers to the risk for a counter party default on its contractual obligation resulting a financial loss to the Company.

Credit risk on trade receivables and contract assets is limited as the customers of the Company mainly consists of the Government promoted entities having a strong credit worthiness. For doubtful receivables the company uses a provision matrix to compute the expected credit loss allowances for trade receivables and contract assets. In assessing the recoverability of the trade receivables and contracts assets, management’s judgement involves consideration of aging status, evaluation of litigations and the likelihood of collection based on the terms of the contract. Refer note 6, 10, 15 and 15.1 for provision made against trade receivable and contract assets.

Credit risk on account of investments, loans (including interest) and other receivables from group companies / related parties has been adequately provided in the books. The cash and bank balances (excluding cash on hand) are held with banks and financial institutions having good credit rating.

176

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

iii) Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuous planning and monitoring of actual cash flows and by matching the maturity profiles of financial assets and liabilities.

The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at March 31, 2023:

|||(in crores)|(in crores)|(in crores)|(in crores)|
|---|---|---|---|---|---|
||Carrying
amount|Payable|||Total
contracted
cash flows|
|||Within 1 year|1-3 year|Beyond 3 years||
|Accountspayable and acceptances|4,822.74|
4,569.07|206.40|47.27|4,822.74|
|Borrowings and interest accrued|1,078.61|
995.53|81.06|2.02|1,078.61|
|Other financial liabilities|7.83|
7.83|-|-|7.83|
|Total|5,909.18|5,572.43|287.46|49.29|5,909.18|

The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at March 31, 2022:

payments as at March 31, 2022:	payments as at March 31, 2022:
		(`in crores)
	Crrin	Payable			Total contracted cash flows
	ayg amount	Within 1 year	1-3 year	Beyond 3 years
Accountspayable and acceptances	4,280.57	4,062.13	176.37	42.07	4,280.57
Borrowings and interest accrued	1,271.36	1,189.33	80.00	2.03	1,271.36
Other financial liabilities	0.62	0.62	-	-	0.62
Total	5,552.55	5,252.08	256.37	44.10	5,552.55

38.4 Fair value measurements:

Some of the Company’s financial assets and financial liabilities are measured at fair value at the end of the reporting period. The following table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular, the valuation techniques and inputs used):

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(` in crores)
Fair Value as at Valuation
Fair value
Financial Assets / Financial Liabilities As at As at techniques & key
hierarchy
March 31, 2023 March 31, 2022 inputs used
Investments in Mutual funds at FVTPL 1.10 1.07 Level 1 Refer note 2
Investments in unquoted equity instruments at FVTPL 1.52 1.52 Level 2 Refer note 3
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Positive value denotes financial asset (net) and negative value denotes financial liability (net).

Notes:

(1) There were no transfers between Level 1 and 2 in the period.
(2) The Level 1 financial instruments are measured using quotes in active market.
(3) The following table shows the valuation technique and key input used for Level 2:

Financial Instrument	Valuation Technique	KeyInputs used
Unquoted Equity Instruments	Net worth method	Government notified value of the lands is taken as fair market value in the absence of reliable comparable data.

177

Annual Report 2022-23

Notes forming part of the financial statements

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

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(` in crores)
As at March 31, 2023 As at March 31, 2022
Carrying Carrying
Fair value Fair value
amount amount
Financial assets
Financial assets at amortised cost:
- Trade receivables 2,945.14 2,945.14 2,492.23 2,492.23
- Cash and cash equivalents 227.41 227.41 235.39 235.39
- Bank balances other than cash and cash equivalents 418.22 418.22 323.15 323.15
- Loans 371.66 371.66 407.81 407.81
- Other financial assets 394.97 394.97 425.79 425.79
Financial liabilities
Financial liabilities at amortised cost:
- Borrowings 979.57 979.57 1,184.08 1,184.08
- Trade payables 4,822.74 4,822.74 4,280.57 4,280.57
- Other financial liabilities 106.87 106.87 87.90 87.90
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The fair values of the financial assets and financial liabilities included above have been determined in accordance with generally accepted pricing models.

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39 Corporate Social Responsibility: (in crores) March 31, 2023 March 31, 2022 a) Gross amount required to be spent by the Company during the year 7.80 10.67 b) Amount approved by the Board to be spent during the year 7.80 10.68 c) Amount spent during the year ended: ( in crores)
March 31, 2023 March 31, 2022
Particulars Yet to be Yet to be
In cash Total In cash Total
paid paid
i) Construction/acquisition of any asset - - - - - -
ii) On purposes other than (i) above 7.80 - 7.80 8.54 - 8.54
Total 7.80 - 7.80 8.54 - 8.54
d) Details related to spent / unspent obligations: (` in crores)
Particulars March 31, 2023 March 31, 2022
i) Spent for CSR activities during the year 2.90 1.00
ii) Contribution 4.90 7.54
iii) Unspent amount in relation to:
- On going project - 2.14
- Other than ongoing project - -
Total 7.80 10.68
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Unspent amount of Nil (31.03.2022: ` 2.14 crores is deposited in the separate bank account on April 30, 2022).

178

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

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e) Others:
Particulars March 31, 2023 March 31, 2022
Identification of the Govt schools
and colleges for implementation
i) Reason for shortfall NA of the project in the State of Uttar
Pradesh was delayed because of the
state election.
Rural Development,
Rural Development, Education,
ii) Nature of CSR activities Education, Health care
Health care and Skill development.
and Skill development.
iii) Details of related party transactions in relation to CSR
expenditure as per relevant Accounting Standard
3.16 5.41
Contribution to NCC Foundation in relation to CSR
expenditure
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40 The exceptional items for the year ended March 31, 2023 is Nil (March 31, 2022 is 145.64 ), pertains to Profit on sale of stake in the Subsidiary Company, NCC Vizag Urban Infrastructure Limited, additional area allotted to NCC Limited on approval of revised plan as per the contractual terms in relation to Investment property under construction and provision made for impairment of investment.

41 Consequent to the encashment of Bank Guarantees (BGs) of 343.10 crores in the year 2017-18 by one of the customer (Sembcorp Energy India Limited), NCCL invoked the arbitration clause and submitted a claim of 1,571.41 crores towards refund of retention money, refund of BGs amount, payment of pending bills, additional works done and cost incurred on prolongation of the project by the customer. Against which, the customer has filed a counter claim of ` 1,071.46 crores towards liquidated damages, turbine replacement, balance works, etc. As per the management assessment and legal advise, no provision is required for the subject matter and arbitration proceedings are expected to be completed within a year.

42 Deferred tax assets (Net):

Significant components of deferred tax (liabilities) / assets for the year ended March 31, 2023:

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(` in crores)
As at As at
March 31, 2023 March 31, 2022
Deferred tax (liabilities) / assets in relation to:
Property, plant and equipment (2.13) (5.37)
Provision for doubtful trade receivables, contract assets, advances and others 38.18 50.41
Provision for employee benefits 33.70 31.32
Deferment in recognisition of income (22.22) (22.22)
Total 47.53 54.14
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179

Annual Report 2022-23

Notes forming part of the financial statements

42.1 Unrecognised deductible temporary differences, unused tax losses and unused tax credits:

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(` in crores)
As at As at
March 31, 2023 March 31, 2022
Deductible temporary differences, unused tax losses and unused tax credits
for which no deferred tax assets have been recognised are attributable to the
following:
- Long-term capital loss - 64.43
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43 Amounts included in contract liabilities at the beginning of the year recognised as revenue in the current year of 859.94 crores (31.03.2022: 533.29 crores).

Change in the contract assets and contract liabilities as at March 31, 2023 from March 31, 2022 is on account of increase in operations of the Company.

44 Reconciling the amount of revenue recognised in the statement of profit and loss with the contracted price:

There is no difference in the contract price negotiated and the revenue recognised in the statement of profit and loss for the current year. There is no significant revenue recognised in the current year from performance obligations satisfied in previous periods.

45 Performance obligation:

The transaction price allocated to the remaining performance obligations (excluding non-moving orders) is 45,847 crores (31.03.2022: 36,303 crores), which will be recognised as revenue over the respective project durations. Generally the project duration of contracts with customers is ranging 1 to 3 years.

46 The trade receivables and contract assets includeds an amount of 122.33 crores (31.03.2022: 189.52 crores) (net of mobilisation advance) relating to Amaravati Capital City projects in Andhra Pradesh. Execution of the work / payment in these projects has been slow since May, 2019. Management based on internal assessments and discussions with agencies is confident of recovering these balances.

47 Additional Regulatory Information:

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Reasons for
S.
Ratio Numerator Denominator FY 2022-23 FY 2021-22 % of change change in the ratio
No
by more than 25%
i) Current Ratio Current Assets Current Liabilities 1.34 1.36 -2% -
ii) Debt-Equity Ratio Total Debt Shareholder’s 0.15 0.20 24% -
Equity
iii) Debt Service Net Profit + Debt Service = 3.43 1.83 88% The increase
Coverage Ratio Depreciation + Interest payments mainly on account
Interest expense + Principal of improvement
Repayments in profits and
reduction
in average
borrowings.
iv) Return on Equity Net Profit Average 9.39% 8.78% 7% -
Ratio Shareholder’s
Equity
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180

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the financial statements

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Reasons for
S.
Ratio Numerator Denominator FY 2022-23 FY 2021-22 % of change change in the ratio
No
by more than 25%
v) Inventory Turnover Revenue from Average Inventory 14.31 15.11 -5% -
Ratio Operations
vi) Trade Receivables Revenue from Average Trade 4.91 3.85 27% The increase
Turnover Ratio Operations Receivables mainly on account
of good collections
from the client in
F.Y 2022-23.
vii) Trade payables Expenses for Trade Average Trade 4.15 3.88 7% -
Turnover Ratio payables Payables
viii) Net capital Revenue from Working Capital 4.30 3.49 23% -
Turnover Ratio Operations
ix) Net profit Ratio Net Profit Revenue from 4.26% 4.94% -14% -
Operations
x) Return on Capital PBT after Net Worth + Total 13.41% 11.21% 20% -
employed Exceptional Items + Debt (Avg)
Interest expense
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48 No charges are pending for registration with Registrar of Companies (ROC) beyond the statutory period except for certain cases where the company is yet to receive No Objection Certificate (NOC) from the lenders.
49 No transactions made with the Struck off Companies in the current year (31.03.2022: ` Nil).

50 Previous period’s figures have been regrouped wherever necessary to conform to current period’s presentation.

51 Approval of financial statements:

The financial statements were approved for issue by the Board of Directors on May 26, 2023.

For S.R. BATLIBOI & ASSOCIATES LLP

For and on behalf of the Board

ICAI Firm Registration No. 101049W/E300004 CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA

Partner Membership No. 102328

K. KRISHNA RAO

E.V.P (F&A) / CFO

A.A.V. RANGA RAJU

Managing Director / CEO (DIN No: 00019161)

M.V. SRINIVASA MURTHY

Company Secy. & Sr. E.V.P (Legal)

A.G.K. RAJU

Executive Director (DIN No: 00019100)

Hyderabad, May 26, 2023

181

Annual Report 2022-23

CONSOLIDATED FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

INDEPENDENT AUDITOR’S REPORT

To the Members of

NCC Limited

Report on the Audit of the Consolidated Ind AS Financial Statements

Opinion

We have audited the accompanying consolidated Ind AS financial statements of NCC Limited (hereinafter referred to as “the Holding Company”), which includes 5 branches and 30 joint operations and its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”) and its associates comprising of the consolidated Balance sheet as at March 31 2023, the consolidated Statement of Profit and Loss, including statement of other comprehensive income, the consolidated Cash Flow Statement and the consolidated Statement of Changes in Equity for the year then ended, and notes to the consolidated Ind AS financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the consolidated Ind AS financial statements”).

In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of reports of other auditors on separate financial statements and on the other financial information of the subsidiaries, associates, branches and joint operations, referred to in the Other Matter paragraph below, the aforesaid consolidated Ind AS financial statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group and its associates as at March 31, 2023, their consolidated profit including other comprehensive income, their consolidated cash flows and the consolidated statement of changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the consolidated Ind AS financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities

under those Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Consolidated Ind AS Financial Statements’ section of our report. We are independent of the Group and its associates in accordance with the ‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the consolidated Ind AS financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we and other auditors, referred to in Other Matter paragraph below, have obtained is sufficient and appropriate to provide a basis for our audit opinion on the consolidated Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated Ind AS financial statements for the financial year ended March 31, 2023. These matters were addressed in the context of our audit of the consolidated Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the consolidated Ind AS financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the consolidated Ind AS financial statements. The results of audit procedures performed by us and by other auditors of components not audited by us, as reported by them in their audit reports furnished to us by the management, including those procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying consolidated Ind AS financial statements.

183

Annual Report 2022-23

Key audit matters

How our audit addressed the key audit matter

Trade receivables and Contract assets of the Holding company (as described in Note 6,9,11 and 16 of the consolidated Ind AS financial statements)

Total trade receivables and total contract assets of the Holding Company amounting to 2,945.14 crores and 5,355.32 crores respectively, represents approximately 50.18% of the total assets of the Group as at March 31, 2023.

Management estimation is required in the measurement of work completed as at year end for recognition of unbilled revenue.

We considered this as key audit matter due to the materiality of the amounts and significant estimates and judgements as stated above.

Our audit procedures in respect of the Holding company amongst others included the following:

We understood and tested on sample basis the design and operating effectiveness of management controls over the recognition and the recoverability of the trade receivables and contract assets.

We performed test of details, and tested relevant contracts, documents and subsequent settlements for material trade receivable balances and amounts included in contract assets that are due on performance of future obligations.

We tested the aging of trade receivables at the year end.

We performed test of details and tested relevant contracts and documents with specific focus on measurement of work completed at the year end for material unbilled revenue balances included in contract asset.

We performed additional procedures, in respect of material over-due trade receivables and long outstanding contract assets, i.e. tested historical payment records, correspondence with customers and legal advice obtained by the management on litigations from legal experts.

We evaluated the competence, capabilities and objectivity of the aforesaid legal experts

We performed additional procedures in respect of balances disclosed in note 56, which include review of communications to/from customers, physical inspection of work done in respect of unbilled revenue, verification of last bills certified etc.

We assessed the allowance for expected credit loss made by management.

Litigation on sale of investment (as described in Note 43 of the consolidated Ind AS financial statements)

The procedures performed by the auditors of NCCIHL, as reported by them, included the following:

The statutory auditors of NCC Infrastructure Holdings Limited (‘NCCIHL’), a subsidiary of the Holding Company have reported litigation on sale of investment as a key audit matter as follows:

Reviewed the relevant documents regarding the litigation in particular the arbitration award, the claims and counter claims raised by the parties as well as the opinion from the in-house legal and claims team to assess the adequacy of the provision made.

NCCIHL has ongoing litigation with respect to sale of its investment in a subsidiary. For details of the litigation refer note 43 of the accompanying consolidated Ind AS financial statements.

Understood and tested the design and operating effectiveness of management control over assessment of the outcome of the litigation.

Management’s assessment of the outcome of the aforesaid litigation has been identified as a key audit matter due to the materiality of the potential obligation as it requires • significant judgment in assessing the outcome of the litigation and provision to be made towards aforesaid litigation.

Discussed and understood various steps being taken by management to resolve the dispute.

184

NCC LIMITED

FINANCIAL STATEMENTS

Information Other than the Financial Statements and Auditor’s Report Thereon

The Holding Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report, but does not include the consolidated Ind AS financial statements and our auditor’s report thereon.

Our opinion on the consolidated Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the consolidated Ind AS financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management for the Consolidated Ind AS Financial Statements

The Holding Company’s Board of Directors is responsible for the preparation and presentation of these consolidated Ind AS financial statements in terms of the requirements of the Act that give a true and fair view of the consolidated financial position, consolidated financial performance including other comprehensive loss, consolidated cash flows and consolidated statement of changes in equity of the Group including its associates in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. The respective Board of Directors of the companies included in the Group and of its associates are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the group and its associates for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated Ind AS financial statements by the Directors of the Holding Company, as aforesaid.

In preparing the consolidated Ind AS financial statements, the respective Board of Directors of the companies included in the Group and of its associates are responsible for assessing the ability of the group and its associates to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those respective Board of Directors of the companies included in the Group and of its associates are also responsible for overseeing the financial reporting process of the group and its associates.

Auditor’s Responsibilities for the Audit of the Consolidated

Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated Ind AS financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated Ind AS financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Holding Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

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Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group and its associates to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated Ind AS financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and its associates and joint ventures/joint operations to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated Ind AS financial statements, including the disclosures, and whether the consolidated Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group and its associates of which we are the independent auditors and whose financial information we have audited, to express an opinion on the consolidated Ind AS financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of such entities included in the consolidated Ind AS financial statements of which we are the independent auditors. For the other entities included in the consolidated Ind AS financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated Ind AS financial statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated Ind AS financial statements for the financial year ended March 31, 2023 and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matter

(a) We did not audit the financial statements and other financial information, in respect of 32 subsidiaries, 11 joint operations and 4 branches, whose financial statements include total assets of 2,448.58 crores as at March 31, 2023, and total revenues of 2,485.64 crores and net cash inflows of 31.83 crores for the year ended on that date. These financial statement and other financial information have been audited by other auditors, which financial statements, other financial information and auditor’s reports have been furnished to us by the management. The consolidated Ind AS financial statements also include the Group’s share of net profit of 10.47 crores for the year ended March 31, 2023, as considered in the consolidated Ind AS financial statements, in respect of 4 associates, whose financial statements, other financial information have been audited by other auditors and whose reports have been furnished to us by the Management. Our opinion on the consolidated Ind AS financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, branches, joint operations and associates, and our report in terms of sub-sections (3) of Section 143 of the Act, in so far as it relates to the aforesaid subsidiaries and associates, is based solely on the reports of such other auditors.

Of the above 2 subsidiaries and 1 branch are located outside India whose financial statements and other financial information have been prepared in accordance with accounting principles generally accepted in their respective countries and which have been audited by other auditors under generally accepted auditing standards applicable in their respective countries. The Holding Company’s management has converted the financial statements of such subsidiaries and branch located outside India from accounting principles generally accepted in their respective countries to accounting principles generally accepted in India. We have audited these conversion adjustments made

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FINANCIAL STATEMENTS

by the Holding Company’s management. Our opinion in so far as it relates to the balances and affairs of such subsidiaries and branch located outside India is based on the report of other auditors and the conversion adjustments prepared by the management of the Holding Company and audited by us.
(b) The consolidated Ind AS financial statements also include the Group’s share of net profit of ` Nil for the year ended March 31, 2023, as considered in the consolidated Ind AS financial statements, in respect of 4 associates, whose financial statements, other financial information have not been audited and whose unaudited financial statements, other unaudited financial information have been furnished to us by the Management. Our opinion, in so far as it relates amounts and disclosures included in respect of these associates, and our report in terms of sub-sections (3) of Section 143 of the Act in so far as it relates to the aforesaid subsidiaries and associates, is based solely on such unaudited financial statements and other unaudited financial information. In our opinion and according to the information and explanations given to us by the Management, these financial statements and other financial information are not material to the Group.

Our opinion above on the consolidated Ind AS financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and the financial statements and other financial information certified by the Management.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, based on our audit and on the consideration of report of the other auditors on separate financial statements and the other financial information of the subsidiary companies and associate companies, incorporated in India, as noted in the ‘Other Matter’ paragraph we give in the “Annexure 1” a statement on the matters specified in paragraph 3(xxi) of the Order.
As required by Section 143(3) of the Act, based on our audit and on the consideration of report of the other auditors on separate financial statements and the other financial information of subsidiaries, associates and joint operations, as noted in the ‘other matter’ paragraph we report, to the extent applicable, that:
(a) We/the other auditors whose report we have relied upon have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated Ind AS financial statements;
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidation of the Ind AS financial statements have been kept so far as it appears from our examination of those books and reports of the other auditors;
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Consolidated Cash Flow Statement and Consolidated Statement of Changes in Equity dealt with by this Report are in agreement with the books of account maintained for the purpose of preparation of the consolidated Ind AS financial statements;
(d) The reports on the accounts of the branch offices of the Holding company audited under Section 143(8) of the Act by branch auditors have been sent to us and have been properly dealt with by us in preparing this report.
(e) In our opinion, the aforesaid consolidated Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(f) On the basis of the written representations received from the directors of the Holding Company as on March 31, 2023 taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors who are appointed under Section 139 of the Act, of its subsidiary companies and associate companies, none of the directors of the Group’s companies and its associates, incorporated in India, is disqualified as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the Act;
(g) With respect to the adequacy of the internal financial controls with reference to consolidated Ind AS financial statements of the Holding Company and its subsidiary companies and associate companies, incorporated in India, and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report;

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(h) In our opinion and based on the consideration of reports of other statutory auditors of the subsidiaries and associates incorporated in India, the managerial remuneration for the year ended March 31, 2023 has been paid / provided by the Holding Company, its subsidiaries and associates incorporated in India to their directors in accordance with the provisions of section 197 read with Schedule V to the Act;
(i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the report of the other auditors on separate financial statements as also the other financial information of the subsidiaries, associates and joint operations, as noted in the ‘Other matter’ paragraph:
i. The consolidated Ind AS financial statements disclose the impact of pending litigations on its consolidated financial position of the Group and its associates in its consolidated Ind AS financial statements – Refer Note 37(i) and 51 to the consolidated Ind AS financial statements;
ii. Provision has been made in the consolidated Ind AS financial statements, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Holding Company, its subsidiaries and associates, incorporated in India during the year ended March 31, 2023.
iv.a) The respective managements of the Holding Company and its subsidiaries which are companies incorporated in India whose financial statements have been audited under the Act have represented to us and the other auditors of such subsidiaries respectively that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Holding Company or any of such subsidiaries to or in any other persons or entities, including

foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the respective Holding Company or any of such subsidiaries (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

b) The respective managements of the Holding Company and its subsidiaries which are companies incorporated in India whose financial statements have been audited under the Act have represented to us and the other auditors of such subsidiaries respectively that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the respective Holding Company or any of such subsidiaries from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Holding Company or any of such subsidiaries shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances performed by us and that performed by the auditors of the subsidiaries which are companies incorporated in India whose financial statements have been audited under the Act, nothing has come to our or other auditor’s notice that has caused us or the other auditors to believe that the representations under sub-clause (a) and (b) contain any material mis-statement.
v. The dividend declared or paid by the Holding Company, its subsidiaries incorporated in India during the year in respect of the same declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.

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FINANCIAL STATEMENTS

vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable only w.e.f. April 1, 2023 for the Holding Company, its subsidiaries, associate joint operation companies incorporated in India, hence reporting under this clause is not applicable.

For S.R. Batliboi & Associates LLP

Chartered Accountants ICAI Firm Registration Number: 101049W/E300004

per Navneet Rai Kabra

Partner Membership Number: 102328 UDIN: 23102328BGSBNC5909

Place of Signature: Hyderabad Date: May 26, 2023

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Annual Report 2022-23

Annexure ‘1’ referred to in paragraph under the heading “Report on other legal and regulatory requirements” of our report of even date

Re: NCC Limited (“the Company”)

In terms of the information and explanations sought by us and given by the company and to the best of our knowledge and belief, we state that:

3(xxi) There are no qualifications or adverse remarks in the Companies (Auditors Report) Order (CARO) reports issued by us for the Holding Company and by the respective auditors in the CARO reports of the subsidiary and associate companies included in the consolidated financial statements. The report of the following associates included in the consolidated financial statements has not been issued by its auditor till the date of our auditor’s report.

==> picture [494 x 19] intentionally omitted <==

----- Start of picture text -----

S.No. Name of the associate CIN
----- End of picture text -----

S.No.	Name of the associate	CIN

1.	Himalayan Green EnergyPvt.Ltd.	U4010DL2005PTC137235
2.	Ekana Sportz CityPvt.Ltd.	U45202UP2014PTC063932
3.	PondicherryTindivanam TollwayPrivate Limited	U45400TG2007PTC053321

For S.R. Batliboi & Associates LLP

Chartered Accountants ICAI Firm Registration Number: 101049W/E300004

per Navneet Rai Kabra

Partner Membership Number: 102328 UDIN: 23102328BGSBNC5909

Place of Signature: Hyderabad Date: May 26, 2023

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FINANCIAL STATEMENTS

Annexure 2 to the Independent Auditor’s Report of even date on the Consolidated IND AS Financial Statements of NCC Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

In conjunction with our audit of the consolidated Ind AS financial statements of NCC Limited (hereinafter referred to as the “Holding Company”) as of and for the year ended March 31, 2023, we have audited the internal financial controls with reference to these consolidated Ind AS financial statements of the Holding Company and its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”) and its associates, which are companies incorporated in India, as of that date.

Management’s Responsibility for Internal Financial Controls

The respective Board of Directors of the companies included in the Group and its associates, which are companies incorporated in India, are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Holding Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Holding Company’s internal financial controls with reference to these consolidated Ind AS financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, specified under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both issued by ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to these consolidated Ind AS financial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to these consolidated Ind AS financial statements and their operating effectiveness. Our audit of internal financial controls with reference to these consolidated Ind AS financial statements included obtaining an understanding of internal financial controls with reference to these consolidated Ind AS financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls with reference to these consolidated Ind AS financial statements.

Meaning of Internal Financial Controls With Reference to these Consolidated Ind AS Financial Statements

A company’s internal financial control with reference to these consolidated Ind AS financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control with reference to these consolidated Ind AS financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls With Reference to these Consolidated Ind AS Financial Statements

Because of the inherent limitations of internal financial controls with reference to these consolidated Ind AS financial statements, including the possibility of collusion or improper management

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override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to these consolidated Ind AS financial statements to future periods are subject to the risk that the internal financial controls with reference to these consolidated Ind AS financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Other Matters

Our report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls with reference to these consolidated Ind AS financial statements of the Holding Company, in so far as it relates to these 23 subsidiaries and 1 associate, which are companies incorporated in India, is based on the corresponding reports of the auditors of such subsidiaries and associates.

Opinion

In our opinion, the Group and its associates, which are companies incorporated in India, have, maintained in all material respects, adequate internal financial controls with reference to these consolidated Ind AS financial statements and such internal financial controls with reference to these consolidated Ind AS financial statements were operating effectively as at March 31, 2023, based on the internal control over financial reporting criteria established by the Holding Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.

For S.R. Batliboi & Associates LLP

Chartered Accountants ICAI Firm Registration Number: 101049W/E300004

per Navneet Rai Kabra Partner Membership Number: 102328 UDIN: 23102328BGSBNC5909

Place of Signature: Hyderabad Date: May 26, 2023

192

NCC LIMITED

FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2023

(` in crores)

==> picture [494 x 474] intentionally omitted <==

----- Start of picture text -----

AS AT AS AT
NOTE
MARCH 31, 2023 MARCH 31, 2022
ASSETS
Non Current Assets
Property, Plant and Equipment 3 1,237.86 1,138.11
Capital Work in Progress 3 15.07 7.35
Investment Property 3.1 155.99 199.62
Investment Property under Construction 3.1 107.65 103.47
Goodwill 0.63 0.63
Other Intangible Assets 3.2 0.74 0.72
Intangible Assets under Development 3.3 6.91 -
Financial Assets
Investments in Associates 4.1 126.56 115.85
Other Investments 4.1 211.25 211.25
Loans 5 150.00 150.00
Trade Receivables 6 157.05 107.96
Other Financial Assets 7 200.41 285.58
Deferred Tax Assets (Net) 8 61.35 64.26
Non Current Tax Assets (Net) 15 290.53 151.66
Other Non Current Assets 9 582.40 468.94
Total Non - Current Assets 3,304.40 3,005.40
Current Assets
Inventories 10 1,374.03 1,153.34
Financial Assets
Other Investments 4.2 14.23 18.72
Trade Receivables 11 3,175.51 2,545.16
Cash and Cash Equivalents 12.1 282.39 266.54
Bank balances other than above 12.2 426.88 333.99
Loans 13 224.89 217.06
Other Financial Assets 14 367.81 342.34
Current Tax Assets (Net) 15.1 11.07 74.68
Other Current Assets 16 7,368.91 6,500.76
Total Current Assets 13,245.72 11,452.59
Total Assets 16,550.12 14,457.99
----- End of picture text -----

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Annual Report 2022-23

CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2023 (contd.)

(` in crores)

==> picture [494 x 367] intentionally omitted <==

----- Start of picture text -----

AS AT AS AT
NOTE
MARCH 31, 2023 MARCH 31, 2022
EQUITY AND LIABILITIES
Equity
Equity Share Capital 17 125.57 121.97
Other Equity 18 6,041.26 5,480.77
Equity Attributable to Shareholders of the 6,166.83 5,602.74
Company
Non-Controlling Interests 318.63 293.41
Total Equity 6,485.46 5,896.15
Liabilities
Non Current Liabilities
Financial Liabilities
Borrowings 19 89.09 120.18
Trade Payables 20 22.90 25.64
Provisions 21 61.84 57.88
Total Non Current Liabilities 173.83 203.70
Current Liabilities
Financial Liabilities
Borrowings 22 884.73 1,182.25
Trade Payables 23
Total outstanding dues of micro and small 47.28 34.25
enterprises
Total outstanding dues of creditors other 5,258.74 4,363.55
than micro and small enterprises
Other Financial Liabilities 24 120.50 99.35
Provisions 25 94.17 79.21
Current Tax Liabilities (Net) 26 7.25 2.17
Other Current Liabilities 27 3,478.16 2,597.36
Total Current Liabilities 9,890.83 8,358.14
Total Equity and Liabilities 16,550.12 14,457.99
----- End of picture text -----

The accompanying notes are an integral part of the consolidated financial statements

In terms of our report attached

For S.R. BATLIBOI & ASSOCIATES LLP

For and on behalf of the Board

ICAI Firm Registration No. 101049W/E300004 CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA

Partner Membership No. 102328

K. KRISHNA RAO E.V.P (F&A) / CFO

A.A.V. RANGA RAJU Managing Director / CEO (DIN No: 00019161)

M.V. SRINIVASA MURTHY

Company Secy. & Sr. E.V.P (Legal)

A.G.K. RAJU

Executive Director (DIN No: 00019100)

Hyderabad, May 26, 2023

194

NCC LIMITED

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2023

(` in crores)

==> picture [492 x 433] intentionally omitted <==

----- Start of picture text -----

YEAR ENDED YEAR ENDED
NOTE
MARCH 31, 2023 MARCH 31, 2022
INCOME
Revenue from Operations 28 15,553.41 11,137.96
Other Income 29 147.59 70.72
Total Income 15,701.00 11,208.68
EXPENSES
Cost of Materials Consumed 30 4,855.11 3,484.62
Construction Expenses 31 1,430.36 1,245.42
Changes in Inventories of Work in Progress 32 69.35 105.49
Sub-Contractors Work Bills 6,862.12 4,568.97
Employee Benefits Expense 33 545.69 452.66
Finance Costs 34 515.22 478.07
Depreciation and Amortization Expenses (Refer note 3, 3.1 and 3.2) 202.61 186.74
Other Expenses 35 331.79 257.00
Total Expenses 14,812.25 10,778.97
Profit Before Share of Profit / (Loss) of Associate Companies, and Tax 888.75 429.71
Share of Profit / (Loss) of Associate Companies 10.47 1.40
Profit Before Exceptional Items and Tax 899.22 431.11
Exceptional Items (Net) 50 (14.37) 203.57
Profit Before Tax 884.85 634.68
Tax Expense 36
Current Tax (including earlier year taxation) 234.25 146.58
Deferred Tax 4.39 (5.93)
238.64 140.65
Profit for the year 646.21 494.03
Attributable to
Shareholders of the Company 609.20 482.41
Non-Controlling Interests 37.01 11.62
Other comprehensive income / (loss)
Items that will not be reclassified to profit or (loss)
Remeasurement gains / (losses) of the defined benefit plans (5.78) (2.84)
Income tax effect on the above 1.46 0.72
Items that may be reclassified to profit or (loss)
Exchange differences in translating the financial statements of foreign 2.89 (0.42)
operations
Other comprehensive income / (loss) for the year (net of taxes) (1.43) (2.54)
Total comprehensive income for the year 644.78 491.49
Attributable to
Shareholders of the Company 607.80 479.89
Non-Controlling Interests 36.98 11.60
Earnings per equity share of face value of 2 each. Basic - 48 9.77 7.91
Diluted - ` 48 9.77 7.86
----- End of picture text -----

The accompanying notes are an integral part of the consolidated financial statements

In terms of our report attached

For S.R. BATLIBOI & ASSOCIATES LLP

For and on behalf of the Board

ICAI Firm Registration No. 101049W/E300004 CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA Partner Membership No. 102328

K. KRISHNA RAO

E.V.P (F&A) / CFO

A.A.V. RANGA RAJU

Managing Director / CEO (DIN No: 00019161)

M.V. SRINIVASA MURTHY

Company Secy. & Sr. E.V.P (Legal)

A.G.K. RAJU

Executive Director (DIN No: 00019100)

Hyderabad, May 26, 2023

195

Annual Report 2022-23

Number of shares Amount (`in crores)<br>Balance as at April 01, 2021<br>609,846,588<br>121.97<br>Add: Issue of Share Capital<br>-<br>-<br>Balance as at March 31, 2022<br>609,846,588<br>121.97<br>Add: Issue of Share Capital<br>18,000,000<br>3.60<br>Balance as at March 31, 2023<br>627,846,588<br>125.57<br>B. Other Equity<br>(`in crores)	Number of shares Amount (`in crores)<br>Balance as at April 01, 2021<br>609,846,588<br>121.97<br>Add: Issue of Share Capital<br>-<br>-<br>Balance as at March 31, 2022<br>609,846,588<br>121.97<br>Add: Issue of Share Capital<br>18,000,000<br>3.60<br>Balance as at March 31, 2023<br>627,846,588<br>125.57<br>B. Other Equity<br>(`in crores)	Number of shares Amount (`in crores)<br>Balance as at April 01, 2021<br>609,846,588<br>121.97<br>Add: Issue of Share Capital<br>-<br>-<br>Balance as at March 31, 2022<br>609,846,588<br>121.97<br>Add: Issue of Share Capital<br>18,000,000<br>3.60<br>Balance as at March 31, 2023<br>627,846,588<br>125.57<br>B. Other Equity<br>(`in crores)	Number of shares Amount (`in crores)<br>Balance as at April 01, 2021<br>609,846,588<br>121.97<br>Add: Issue of Share Capital<br>-<br>-<br>Balance as at March 31, 2022<br>609,846,588<br>121.97<br>Add: Issue of Share Capital<br>18,000,000<br>3.60<br>Balance as at March 31, 2023<br>627,846,588<br>125.57<br>B. Other Equity<br>(`in crores)	Number of shares Amount (`in crores)<br>Balance as at April 01, 2021<br>609,846,588<br>121.97<br>Add: Issue of Share Capital<br>-<br>-<br>Balance as at March 31, 2022<br>609,846,588<br>121.97<br>Add: Issue of Share Capital<br>18,000,000<br>3.60<br>Balance as at March 31, 2023<br>627,846,588<br>125.57<br>B. Other Equity<br>(`in crores)	Number of shares Amount (`in crores)<br>Balance as at April 01, 2021<br>609,846,588<br>121.97<br>Add: Issue of Share Capital<br>-<br>-<br>Balance as at March 31, 2022<br>609,846,588<br>121.97<br>Add: Issue of Share Capital<br>18,000,000<br>3.60<br>Balance as at March 31, 2023<br>627,846,588<br>125.57<br>B. Other Equity<br>(`in crores)	Total	Total	5,347.44	494.03	(2.54)	491.49	(48.79)
Amount (`in crores)	121.97	-	121.97	3.60	125.57
						Non- controlling interests		298.11	11.62	(0.02)	11.60	-
Number of shares	609,846,588	-	609,846,588	18,000,000	627,846,588	Equity attributable to the shareholders of the Company		5,049.33	482.41	(2.52)	479.89	(48.79)
						Comprehensive / (Loss)	Exchange Differences on translating the financial statements of a foreign operations	41.88	-	(0.42)	(0.42)	-
	Balance as at April 01, 2021	Add: Issue of Share Capital	Balance as at March 31, 2022	Add: Issue of Share Capital	Balance as at March 31, 2023
						Items of Other Income	Other items of other comprehen- sive income	(27.50)	-	(2.10)	(2.10)	-
							Retained Earnings	1,200.44	482.41	-	482.41	(48.79)
							General Reserve	1,135.18	-	-	-	-
						urplus	Money received against share warrants (Refer note 17.5)	26.55	-	-	-	-
						rves and S	Reserve Under Section 45 IC - RBI Act	0.24	-	-	-	-
						Rese	Legal / Statutory Reserve	25.14	-	-	-	-
							Securities Premium	2,639.62	-	-	-	-
							Capital Reserve	7.78	-	-	-	-
								As at April 01, 2021	Profit for the year	Other Comprehensive Income / (Loss) for the year (net of taxes)	Total Comprehensive Income for the year	Dividend

196

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FINANCIAL STATEMENTS

Total	Total	(15.96)	250.00	(250.00)	5,774.18	646.21	(1.43)	644.78	102.60	(26.55)	(125.57)
Non- controlling interests		(16.30)	-	-	293.41	37.01	(0.03)	36.98	-	-	-
Equity attributable to the shareholders of the Company		0.34	250.00	(250.00)	5,480.77	609.20	(1.40)	607.80	102.60	(26.55)	(125.57)
Comprehensive / (Loss)	Exchange Differences on translating the financial statements of a foreign operations	-	-	-	41.46	-	2.89	2.89	-	-	-
Items of Other Income	Other items of other comprehen- sive income	-	-	-	(29.60)	-	(4.29)	(4.29)	-	-	-
	Retained Earnings	(0.67)	-	(250.00)	1,383.39	609.20	-	609.20	-	-	(125.57)
	General Reserve	(0.50)	250.00	-	1,384.68	-	-	-	-	-	-
urplus	Money received against share warrants (Refer note 17.5)	-	-	-	26.55	-	-	-	-	(26.55)	-
rves and S	Reserve Under Section 45 IC - RBI Act	-	-	-	0.24	-	-	-	-	-	-
Rese	Legal / Statutory Reserve	0.84	-	-	25.98	-	-	-	-	-	-
	Securities Premium	-	-	-	2,639.62	-	-	-	102.60	-	-
	Capital Reserve	0.67	-	-	8.45	-	-	-	-	-	-
		Adjustment on account of Consolidation / Foreign currency fluctuation	Transfer to General Reserve	Transfer from Retained Earnings	Balance at April 01, 2022	Profit for the year	Other Comprehensive Income / (Loss) for the year (net of taxes)	Total Comprehensive Income for the year	Premium on Issue of Share Capital	Proceeds received against share warrants	Dividend

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Total	Total	(9.55)	350.00	(350.00)	6,359.89
Non- controlling interests		(11.76)	-	-	318.63
Equity attributable to the shareholders of the Company		2.21	350.00	(350.00)	6,041.26
Comprehensive / (Loss)	Exchange Differences on translating the financial statements of a foreign operations	-	-	-	44.35
Items of Other Income	Other items of other comprehen- sive income	-	-	-	(33.89)
	Retained Earnings	-	-	(350.00)	1,517.02
	General Reserve	-	350.00	-	1,734.68
urplus	Money received against share warrants (Refer note 17.5)	-	-	-	-
rves and S	Reserve Under Section 45 IC - RBI Act	-	-	-	0.24
Rese	Legal / Statutory Reserve	2.21	-	-	28.19
	Securities Premium	-	-	-	2,742.22
	Capital Reserve	-	-	-	8.45
		Adjustment on account of Consolidation / Foreign currency fluctuation	Transfer to General Reserve	Transfer from Retained Earnings	Balance at March 31, 2023

198

NCC LIMITED

FINANCIAL STATEMENTS

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2023

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----- Start of picture text -----

(` in crores)
Year ended Year ended
March 31, 2023 March 31, 2022
A. Cash flows from operating activities
Profit before tax 884.85 634.68
Adjustments for:
Depreciation and amortisation expenses 202.61 186.74
Share of loss from associate companies (10.47) (1.40)
(Profit)/loss on sale of Property, Plant and Equipment and Investment Property (47.33) 3.97
Finance costs 515.22 478.07
Interest income (80.10) (38.64)
Profit on sale of current & Non-Current investments (net) (0.17) (2.06)
Gain on remeasuring investment at FVTPL (net) (0.48) (1.72)
Trade Receivables / Advances written off 3.53 1.01
Provision for doubtful trade receivables / advances / others 5.00 13.66
Expected credit loss for Unbilled revenue 29.45 30.01
Exceptional items (net) 14.37 (203.57)
Rental income from investment properties (13.56) (3.71)
618.07 462.36
Operating profit before working capital changes 1,502.92 1,097.04
Changes in working capital:
Adjustments for (Increase) / Decrease in operating assets:
In Inventories (220.69) (263.53)
In Trade receivables (692.19) 212.65
In other financial assets 28.46 34.36
In other current assets (1,011.46) (699.94)
Adjustments for Increase / (Decrease) in operating liabilities:
In Trade payables 905.48 568.34
In Other financial liabilities 12.23 (13.19)
In Other current liabilities 866.43 704.77
In Provisions 13.14 (39.08)
(98.60) 504.38
Cash generated from operations 1,404.32 1,601.42
Income tax refund received / (paid) net (304.21) (185.87)
Net cash flows from operating activities (A) 1,100.11 1,415.55
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Annual Report 2022-23

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2023 (contd.)

(` in crores)

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----- Start of picture text -----

Year ended Year ended
March 31, 2023 March 31, 2022
B. Cash flows from investing activities
Capital expenditure for property, plant and equipment, Investment property, (346.95) (218.78)
Intangible Assets including Capital Work in Progress
Proceeds from disposal of Property, Plant and Equipment, Investment Property 124.03 51.62
Movement in Margin Money Deposits / Other Deposits (41.52) (89.44)
Sale / (Purchase) of Non current / current investments 5.14 91.44
Loans realised / (given) - Associates and others (6.48) (4.70)
Proceeds from sale of a subsidiary - 47.50
Interest received 55.59 53.00
Rental income from investment property 13.56 3.71
Foreign Exchange translation adjustment (arising on consolidation) 5.07 (0.39)
Net cash flows (used) in investing activities (B) (191.56) (66.04)
C. Cash flow from financing activities
Proceeds from Issue of Shares (pursuant to conversion of warrants) 79.65 -
Redemption of debentures - (61.00)
Proceeds from long term borrowings 131.62 115.65
Repayment of long term borrowings (139.06) (313.02)
Short term borrowings borrowed / repaid (net) (321.18) (487.64)
Finance costs paid (506.40) (464.86)
Payment made to Non-Controlling Interests (11.76) (14.95)
Dividend paid (125.57) (48.79)
Net cash flows (used) in financing activities (C) (892.70) (1,274.61)
Net Increase in Cash and cash equivalents (A+B+C) 15.85 74.90
Cash and cash equivalents at the beginning of the year 266.54 191.64
Cash and cash equivalents at the end of the year 282.39 266.54
Reconciliation of Cash and cash equivalents with the Balance Sheet:
Cash and cash equivalents 282.39 266.54
Cash and cash equivalents at the end of the year 282.39 266.54
----- End of picture text -----

Note: Figures in brackets represents cash outflows.

The accompanying notes are an integral part of the financial statements

In terms of our report attached

For S.R. BATLIBOI & ASSOCIATES LLP

For and on behalf of the Board

ICAI Firm Registration No. 101049W/E300004 CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA

Partner Membership No. 102328

K. KRISHNA RAO

E.V.P (F&A) / CFO

A.A.V. RANGA RAJU

Managing Director / CEO (DIN No: 00019161)

M.V. SRINIVASA MURTHY

Company Secy. & Sr. E.V.P (Legal)

A.G.K. RAJU

Executive Director (DIN No: 00019100)

Hyderabad, May 26, 2023

200

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

1 Corporate information:

NCC Limited, (“NCCL”/“the Company”) was established as a Partnership firm in 1978, which was subsequently converted into a limited Company in 1990. The shares of the Company, was listed on the stock exchanges in India, in 1992 pursuant to Public offer of equity shares. The registered office of the Company is located at NCC House, Madhapur, Hyderabad - 500 081, Telangana, India. The Company, its subsidiaries, and Associates collectively referred to as the “Group” is engaged in the infrastructure sector and undertaking turnkey EPC contracts as well as BOT projects on Public-Private Partnership basis. The Group’s range of verticals comprises of Buildings & Housing, Roads, Railways, Mining, Water & Environment, Irrigation, Power, Electrical, Metals, Oil & Gas and International business.

2 Significant accounting policies:

2.1 Statement of Compliance:

These consolidated financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time).

2.2 Basis of preparation and presentation:

These consolidated financial statements are prepared in accordance with Ind AS under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 ('Act'), including presentation requirements of Division II of Schedule III to the Companies Act, 2013 (Ind AS Compliant Schedule III), as applicable to the consolidated financial statements (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time). Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account

when pricing the asset or liability at the measurement date. Fair value for measurement and / or disclosure purposes in these consolidated financial statements is determined on such a basis and measurements that have some similarities to fair value but are not fair value, such as a net realisable value in Ind AS 2 or value in use in Ind AS 36.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
Level 2 inputs are other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.

2.3 Basis of consolidation:

These consolidated financial statements incorporate the financial statements of the Company and entities controlled by the parent Company and its subsidiaries. Control is achieved when the Company:

Has power over the investee;
Is exposed, or has rights, to variable returns from its involvement with the investee; and
Has the ability to use its power to affect its returns.

The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated Statement of profit and loss from the date the Company gains control until the date when the Company ceased to control the subsidiary.

Profit and loss and each component of other comprehensive income are attributed to the shareholders of the Company and to the non-controlling interests. Total comprehensive

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Annual Report 2022-23

Notes forming part of the consolidated financial statements

income of subsidiaries is attributed to the shareholders of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies.

All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

2.4 Principles of Consolidation:

The consolidated financial statements have been prepared on the following basis:

a) NCCL consolidates entities which it owns or controls. The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as disclosed in Note 39. Subsidiaries are consolidated from the date control commences until the date control ceases. Subsidiary companies are consolidated on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses, after fully eliminating intragroup balances, intra-group transactions and resulting unrealised profits or losses on intra-group transactions as per Indian Accounting Standard 110.
b) Associates are entities over which the Group has significant influence but not control. Investments in associates are accounted for using the equity method of accounting. The investment is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor’s share of the profit or loss of the investee after the acquisition date. The Group’s investment in associates includes goodwill identified on acquisition.
c) A Joint Venture is a joint arrangement whereby the parties that have joint control of the arrangement, have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. Investments in Joint Venture are accounted for using the equity method of accounting. The investment is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor’s

share of the profit or loss of the investee after the acquisition date. The Group’s investment in joint venture includes goodwill identified on acquisition.

d) The financial statements of the Subsidiaries, Joint ventures and the Associates used in the consolidation are drawn up to the same reporting date as that of the Company, i.e. March 31, 2023.
e) The excess of cost to the Group, of its investment in the subsidiaries over the Group’s share of equity is recognised in the consolidated financial statements as Goodwill and tested for impairment annually.
f) Non-controlling interests in the net assets of the consolidated subsidiaries is identified and presented in consolidated balance sheet under the Total Equity group.
g) Non-controlling interests in the net assets of consolidated subsidiaries consists of:
i) The amount of equity attributable to Noncontrolling holders at the date on which investment in a subsidiary is made; and
ii) The Non-controlling holders share of movements in the equity since the date the parent subsidiary relationship came into existence.
h) The consolidated financial statements are prepared to the extent possible using uniform accounting policies for like transactions and other events in similar circumstances and are presented to extent possible, in the same manner as the Company’s separate financial statements.
The Subsidiaries and Associate Companies are considered for consolidated financial statements are given in Note 39.

2.5 Changes in the Group’s ownership interests in existing subsidiaries:

Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interest and the noncontrolling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to shareholders of the Company.

202

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

When the Group loses control of a subsidiary, a gain or loss is recognised in Statement of Profit and Loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interest. All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to the statement of profit and loss or transferred to another category of equity as specified / permitted by applicable Ind AS). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under Ind AS 109, or when applicable, the cost on initial recognition of an investment in an associate or a joint venture.

2.6 Goodwill:

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.

The Group’s policy for goodwill arising on the acquisition of an associate and a joint venture is described at note 2.4.

2.7 Revenue Recognition :

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services.

Project division

A single performance obligation is identified in the construction projects that the Group engages in, owing to the high degree of integration and customisation of the various goods and services to provide a combined output which is transferred to the customer over time and not at a specific point in time, since the entity's performance creates or enhances as asset that the customer controls as the asset is created or enhanced.

With respect to the method for recognising revenue over time (i.e. the method for measuring progress towards complete satisfaction of a performance obligation), the Group has established certain criteria that are applied consistently for similar performance obligations. In this regard, the method chosen by the Group to measure the value of goods or services for which control is transferred

to the customer over time is the output method based on surveys of performance completed to date (or measured unit of work), according to which revenue is recognised corresponding to the units of work performed and on the basis of the price allocated thereto. In cases where the work performed till the reporting date has not reached the milestone specified in the contract, the Group recognises revenue only to the extent that it is highly probable that the customer will acknowledge the same. This method is applied as the progress of the work performed can be measured during its performance on the basis of the contract. Under this method, on a regular basis, the work completed under each contract is measured and the corresponding output is recognised as revenue.

Contract modifications are accounted for when additions, deletions or changes are approved either to the scope or price or both. Goods / Services added that are not distinct are accounted for on a cumulative catch up basis. Goods / Services those that are distinct are accounted for prospectively as a separate contract, if the additional goods / services are priced at the standalone selling price else as a termination of the existing contract and creation of a new contract. In cases where the additional work has been approved but the corresponding change in price has not been determined, the recognition of revenue is made for an amount with respect to which it is highly probable that a significant reversal will not occur.

Real Estate

The Group has assessed and determined that the performance obligation for all its revenue streams are performed at a point in time.

Contract costs

Costs related to work performed in projects are recognised on an accrual basis. Costs incurred in connection with the work performed are recognised as an expense.

Cost to fulfill the contract

The Group recognises asset from the cost incurred to fulfill the contract such as set up and mobilisation costs and amortises it over the contract period on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates.

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Notes forming part of the consolidated financial statements

Provision for future losses

Provision for future losses are recognised as soon as it becomes evident that the total costs expected to be incurred in a contract exceed the total expected revenue from that contract.

Contract balances

i) Contract assets

A contract asset is recognised for amount of work done but pending billing / acknowledgement by customer or amounts billed but payment is due on completion of future performance obligation, since it is conditionally receivable. The provision for Expected Credit Loss on contract assets is made on the same basis as financial assets as stated in note no. 2.21.

ii) Trade receivables

A receivable represents the Group’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section Financial instruments – initial recognition and subsequent measurement.

iii) Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Group has received advance payments from the customer. If a customer pays consideration before the Group transfers goods or services to the customer, a contract liability is recognised when the consideration received.

2.8 Other Income:

a) Dividend Income: Dividend income from Investments is recognised when the shareholder's right to receive payment has been established.
b) Interest income: Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.
c) Rental income: Rental income from operating leases is generally recognised over the term of the relevant lease.

2.9 Foreign exchange translation and foreign currency transactions:

These financial statements are presented in Indian rupees (rounded off to crores).

In preparing the financial statements of each individual group entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at that date. Nonmonetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Nonmonetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognised in Statement of Profit and Loss in the period in which they arise except for exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised initially in other comprehensive income and reclassified from equity to Statement of Profit and Loss on repayment of the monetary items.

For the purposes of presenting these consolidated financial statements, the assets and liabilities of the Group’s foreign operations including foreign branches are translated into Indian Rupees using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising if any, are recognised in other comprehensive income and accumulated in equity (and attributed to non-controlling interests as appropriate).

204

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

On the disposal of a foreign operation (i.e. disposal of the Group’s entire interest in a foreign operation, a disposal involving loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in an associate that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to Statement of Profit and Loss.

2.10 Borrowing Costs:

Borrowing costs include interest and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset up to the date of capitalisation of such asset are included in the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

2.11.2 2.11 Employee Benefits:

2.11.1 Retirement benefit costs and termination benefits:

Payment to defined contribution retirement benefit plans are recognised as an expenses when employees have rendered service entitling them to the contributions.

Superannuation

The Group’s contribution to Superannuation fund is considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are 2.12 rendered by the employees.

Provident Fund

Contribution to Provident fund made to Regional Provident Fund Commissioner are recognised as expense.

2.12.1 Defined Benefit Plans

For defined post benefit retirement benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to Statement of Profit and Loss. Past service cost is recognised in the Statement of Profit and Loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.

In respect of employees of overseas subsidiaries and branches, contribution to defined benefit contribution retirement plans, is determined in accordance with the respective state laws.

Compensated Absences:

The employees are entitled to accumulate leave subject to certain limits, for future encashment and availment, as per the policy of the Group.

The liability towards such unutilized leave as at the end of each balance sheet date is determined based on independent actuarial valuation and recognised in the Statement of Profit and Loss.

In respect of employees of overseas subsidiaries and branches, end of service benefit is accrued in accordance with the terms of employment. Employees entitlements to annual leave is recognised on actual basis and charged to the Statement of Profit and Loss.

Taxes on Income:

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current Tax:

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the

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Notes forming part of the consolidated financial statements

Income-tax Act, 1961 and other applicable tax laws that have been enacted or substantively enacted by the end of the reporting period in the countries where the Group operates and generates taxable income.

2.12.2 Deferred Tax:

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary differences arise from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax for the year. The deferred tax asset is recognised for MAT credit available only to the extent that it is probable that the concerned company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the company recognises MAT credit as an asset, it is created by way of credit to the Statement of Profit and Loss and shown as part of deferred tax asset. The company reviews the “MAT credit entitlement” asset at each reporting date and writes down the asset to

the extent that it is no longer probable that it will pay normal tax during the specified period.

2.12.3 Current and deferred tax for the year:

Current and deferred tax are recognised in Statement of Profit and Loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

Property, plant and equipment:

2.13

Property, plant and equipment (PPE) are carried at cost less accumulated depreciation and impairment losses, if any. The cost of Property, plant and equipment comprises of purchase price, applicable duties and taxes, any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition / construction of qualifying PPE, that takes a substantial period of time to get ready for its intended use, up to the date the asset is ready for its intended use. The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located is required to be included in the cost of the respective item of property plant and equipment and Cost of major inspections is recognised in the carrying amount of property, plant and equipment as a replacement, if recognition criteria are satisfied and any remaining carrying amount of the cost of previous inspection is derecognised.

PPE retired from active use and held for sale are stated at the lower of their net book value and net realisable value and are disclosed separately.

206

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

2.14 Depreciation and Amortisation:

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost less its estimated residual value.

Depreciation on Property, Plant and equipment in joint venture operations provided on Straight Line Method / Written Down Value Method based on useful life prescribed in Schedule II of the Companies Act, 2013.

Intangible Assets are amortised on straight line method based on the useful life as assessed by the Management. The amortisation method, the residual value and amortisation period for intangible assets shall be reviewed at least at each financial year-end.

2.15 Investment property: Investment properties are properties held to earn rentals and / or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured in accordance with the Ind AS16’s requirement for cost model.

An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no further economic benefits expected from disposal. Any gain or loss arising on derecognition of the property is included in the Statement of Profit and Loss in the period in which the property is derecognised.

2.16 Intangible Assets:

Identifiable intangible assets are recognised when the Group controls the asset, it is probable that future economic benefits attributed to the asset will flow to the Group and the cost of the asset can be reliably measured. At initial recognition, the separately acquired intangible assets are recognised at cost. Following initial recognition, the intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any. The estimated useful life and amortization method reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

2.17 Inventories:

Raw Materials:

Properties Under Development:

Properties under development are valued at cost or net realisable value, whichever is lower. Cost comprises all direct development expenditure, administrative expenses and borrowing costs.

Real Estate projects:

Completed properties held for sale are stated at the actual cost or net realizable value, whichever is lower. Construction Work-in-progress is valued at cost. Cost is sale value less profit margin.

2.18 Provisions, Contingent Liabilities and Contingent Assets :

The Group recognises provisions when there is present obligation as a result of past event and it is probable that there will be an outflow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for Contingent liabilities is made in the notes on accounts when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Contingent assets are disclosed in the financial statements when flow of economic benefit is probable.

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Notes forming part of the consolidated financial statements

2.19 Financial instruments:

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument.

2.20 Financial assets:

Financial asset is

Cash / Equity Instrument of another Entity,
Contractual right to –
a) receive Cash / another Financial Asset from another Entity, or
b) exchange Financial Assets or Financial Liabilities with another Entity under conditions that are potentially favourable to the Entity.

2.21 Subsequent measurement of the financial assets:

(i) Financial assets carried at amortised cost

(ii) Financial assets at fair value through other comprehensive income

terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Further, in case where the Group has made an irrevocable selection based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognised in other comprehensive income.

(iii) Financial assets at fair value through Profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair valued through Profit or loss.

(iv) The Group recognises loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognised as an impairment gain or loss in Statement of Profit and Loss.

Financial liabilities:

2.22

Financial liability is Contractual Obligation to

a) deliver Cash or another Financial Asset to another Entity, or
b) exchange Financial Assets or Financial Liabilities with another Entity under conditions that are potentially unfavourable to the Entity.

The Group’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.

2.23 Subsequent measurement of the financial liabilities:

Financial liabilities are subsequently carried at amortised cost using the effective interest method. For trade and other payables maturing within one year

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Notes forming part of the consolidated financial statements

from the balance sheet date, the carrying amounts approximate the fair value due to the short maturity of these instruments.

2.24 Derecognition of financial instruments:

The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognised from the Group's balance sheet when the obligation specified in the contract is discharged or cancelled or expires.

2.25 Fair value of financial instruments:

In determining the fair value of its financial instruments, the Group uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may or may not actually be realised.

2.26 Receivable under Service concession arrangement:

These arrangements are accounted for based on the nature of the consideration. The intangible asset model is used to the extent that the Group bears the demand risk. The financial asset model is used when the Group has an unconditional contractual right to receive cash or another financial asset from or at the direction of the grantor for the construction services. When the unconditional right to receive cash covers only part of the service, the two models are combined to account separately for each component.

If the Group performs more than one service (i.e., construction or upgrade services and operation services) under a single contract or arrangement, consideration received or receivable is allocated by reference to the relative fair values of the services delivered, when the amounts are separately identifiable.

In the financial asset model, the amount due from the grantor meets the definition of a receivable which is measured at fair value. It is subsequently measured at amortised cost. The amount initially recognised plus the cumulative interest on that amount is calculated using the effective interest method. Any asset carried under

concession arrangements is derecognised on disposal or when no future economic benefits are expected from its future use or disposal or when the contractual rights to the financial asset expire.

2.27 Impairment of Assets:

Intangible assets and property, plant and equipment: Intangible assets and property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognised in the Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortisation or depreciation) had no impairment loss been recognised for the asset in prior years.

Fair value measurement:

2.28

The Group measures certain financial instruments at fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

a. In the principal market for the asset or liability, or
b. In the absence of principal market, in the most advantageous market for the asset or liability.

The fair value of an asset or a liability is measured using the assumptions that market participants would use

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when pricing the asset or liability, assuming that market participants act in their economic best interest.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

2.29 Leases:

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the date of commencement of the lease, the Group recognises a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except short-term leases and low value leases.

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Group makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Group considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to the Group’s operations taking into account the location of the underlying asset and the availability of suitable alternatives.

The Group applies the short-term lease recognition exemption to its short-term leases of premises and construction equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date or the adoption of Ind AS 116 and do not contain a purchase option). Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

2.30 Earnings Per Share :

Basic earnings per equity share is computed by dividing the net profit for the year attributable to the Equity Shareholders by the weighted average number of equity

shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit for the year, adjusted for the effects of dilutive potential equity shares, attributable to the Equity Shareholders by the weighted average number of the equity shares and dilutive potential equity shares outstanding during the year except where the results are anti-dilutive.

2.31 Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of noncash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Group are segregated based on the available information.

2.32 Critical judgments in applying accounting policies:

The following are the critical judgments, apart from those involving estimations, that the directors have made in the process of applying the Group's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

(i) Revenue recognition: The Group uses the stage of completion method using survey method and /or on completion of physical proportion of the contract work to measure progress towards completion in respect of construction contracts. This method is followed when reasonably dependable estimates of costs applicable to various elements of the contract can be made. Key factors that are reviewed in estimating the future costs to complete include estimates of future labour costs and productivity efficiencies. Because the financial reporting of these contracts depends on estimates that are assessed continually during the term of these contracts, recognised revenue and profit are subject to revisions as the contract progresses to completion. When estimates indicate that a loss will be incurred, the loss is provided for in the period in which the loss becomes probable.

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FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

(ii) Key sources of estimation uncertainty: The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

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Items requiring significant estimate Assumption and estimation uncertainty
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Items requiring significant estimate	Assumption and estimation uncertainty

Review of property, plant and equipment	The Group reviews the estimated useful lives, depreciation method and residual value of property, plant and equipment at the end of each reporting period. During the current year, there has been no change in life, depreciation method and residual value considered for the assets.
Fair value measurements and valuation processes	Some of The Group's assets and liabilities are measured at fair value for the financial reporting purposes. The valuation committee which is headed by the Chief Financial Officer determines the appropriate valuation techniques and inputs for fair value measurements.
	In estimating the fair value of an asset or a liability, the Group uses market- observable data to the extent it is available. Where Level 1 inputs are not available, the Group engages third party / internal qualified valuers to perform the valuation. Finance team works closely with the qualified external / internal valuers to establish the appropriate valuation techniques and inputs to the model. The Chief Financial Officer reports the valuation committee's findings to the Board of Directors about the cause of fluctuations in the fair value of the assets and liabilities.
Provision for doubtful receivables and contract assets	In assessing the recoverability of the trade receivables and contracts assets, management’s judgement involves consideration of aging status, evaluation of litigations and the likelihood of collection based on the terms of the contract.
Estimation of net realisable value of inventories	Inventories are stated at the lower of cost and Fair value. In estimating the net realisable value / Fair value of Inventories, the Group makes an estimate of future selling prices and costs necessary to make the sale.
Provision for employee benefits	The Group uses actuarial assumptions to determine the obligations for employee benefits at each reporting period. These assumptions include the discount rate, expected long-term rate of return on plan assets, rate of increase in compensation levels and mortality rates.
Provision for taxes	Significant judgments are required in determining the provision for income taxes, including the amount expected to be paid / recovered for uncertain tax positions. The company reviews the “MAT credit entitlement” asset at each reporting date and writes down the asset to the extent that it is no longer probable that it will pay normal tax during the specified period.
Provision for onerous contracts	The Company reviews contracts periodically to assess provisions to be made for onerous contract by estimating future costs and quantities.
Indirect tax litigations	The Group is subjected to VAT assessments in various states where projects were executed. Basing on applicable VAT rules of various states the Group estimated the VAT liability and provided in the book of accounts. The VAT assessments in different states are at different stages and on some of the assessment orders, the Group made appeals and they are at various tribunals and courts.

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2.33 Exceptional Items:

Exceptional Items represents the nature of transactions which are not in recurring nature during the ordinary course of business but lead to increase / decrease in profit / loss for the year.

2.34 Operating cycle:

The Group adopts operating cycle based on the project period (including Defect Liability Period) and accordingly all project related assets and liabilities are classified into current and non current. Other than project related assets and liabilities, 12 months period is considered as normal operating cycle.

2.35 Recent accounting pronouncements:

March 31, 2023, the MCA, issued certain amendments to Ind AS. The amendments relate to the following standards:

Ind AS 101, First-time Adoption of Indian Accounting Standards
Ind AS 1, Presentation of Financial Statements
Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors
Ind AS 12, Income Taxes

These amendments are effective from April 01, 2023. The Company believes that the aforementioned amendments will not materially impact the financial statements of the Company.

Standards issued but not yet effective and not early adopted by the Group

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards. On

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FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

Note 3

Property, Plant, Equipment and Capital Work-in-Progress:

(` in crores)

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Construc-
Plant and Furniture Construc- Office Lease Hold
Office tion
Land Buildings Equip- and tion Equip- Improve- Total
Vehicles Accesso-
ment Fixtures Vehicles ment ments
ries
Cost:
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	Land	Buildings	Plant and Equip- ment	Furniture and Fixtures	Construc- tion Vehicles	Office Vehicles	Office Equip- ment	Lease Hold Improve- ments	Construc- tion Accesso- ries	Total
Cost:
Balance as at April 01, 2021	67.74	68.36	956.58	15.43	226.74	95.72	67.55	17.13	812.01	2,327.26
Additions	7.25	8.31	85.83	1.18	24.04	17.47	8.00	-	76.77	228.85
Disposals / Adjustments	-	(3.25)	115.11	1.32	22.29	6.39	10.35	-	34.07	186.28
Effect of Foreign Currency Exchange Differences	-	-	1.67	0.02	0.05	0.07	0.26	-	0.22	2.29
As at March 31, 2022	74.99	79.92	928.97	15.31	228.54	106.87	65.46	17.13	854.93	2,372.12
Additions	-	8.54	131.52	2.20	12.22	19.34	9.37	-	137.48	320.67
Disposals / Adjustments	-	0.74	28.69	0.76	22.26	5.30	4.66	-	30.26	92.67
Effect of Foreign Currency Exchange Differences	-	-	0.47	0.01	-	0.02	0.01	-	0.01	0.52
As at March 31, 2023	74.99	87.72	1,032.27	16.76	218.50	120.93	70.18	17.13	962.16	2,600.64
Depreciation:
Balance as at April 01, 2021	-	20.74	470.19	8.99	92.24	49.74	55.46	15.75	484.94	1,198.05
Depreciation	-	5.80	61.95	1.05	22.84	9.24	4.57	0.58	79.97	186.00
Disposals / Adjustments	-	(0.03)	85.06	1.24	20.44	5.26	9.81	-	30.13	151.91
Effect of Foreign Currency Exchange Differences	-	-	1.31	0.02	0.04	0.06	0.25	-	0.19	1.87
As at March 31, 2022	-	26.57	448.39	8.82	94.68	53.78	50.47	16.33	534.97	1,234.01
Depreciation	-	5.64	64.69	1.08	26.15	11.01	5.80	0.13	87.52	202.02
Disposals / Adjustments	-	0.71	24.02	0.68	13.36	4.71	4.49	-	26.33	74.30
Effect of Foreign Currency Exchange Differences	-	-	0.73	0.04	0.01	0.04	0.08	-	0.15	1.05
As at March 31, 2023	-	31.50	489.79	9.26	107.48	60.12	51.86	16.46	596.31	1,362.78
Net Block
As at March 31, 2022	74.99	53.35	480.58	6.49	133.86	53.09	14.99	0.80	319.96	1,138.11
As at March 31, 2023	74.99	56.22	542.48	7.50	111.02	60.81	18.32	0.67	365.85	1,237.86

Capital work in progress **15.07 crores** (31.03.2022: 7.35 crores).

(` in crores)

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As at As at
March 31, 2023 March 31, 2022
Opening 7.35 21.86
Additions during the year 11.14 4.67
Capitilisation 3.42 19.18
Closing 15.07 7.35
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Note 3.1

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Investment property & Investment property under construction: (` in crores)
Land - Freehold Buildings Total
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	Land - Freehold	Buildings*	Total

Cost:
Balance as at April 01, 2021	110.99	112.20	223.19
Additions	-	3.20	3.20
Disposals/Adjustments	2.74	18.78	21.52
As at March 31, 2022	108.25	96.62	204.87
Additions	7.99	7.28	15.27
Disposals/Adjustments	0.37	57.96	58.33
As at March 31, 2023	115.87	45.94	161.81
Depreciation:
Balance as at April 01, 2021	-	4.85	4.85
Depreciation	-	0.73	0.73
Disposals/Adjustments	-	0.33	0.33
As at March 31, 2022	-	5.25	5.25
Depreciation	-	0.57	0.57
Disposals/Adjustments	-	-	-
As at March 31, 2023	-	5.82	5.82
Net Block
As at March 31, 2022	108.25	91.37	199.62
As at March 31, 2023	115.87	40.12	155.99

*Cost includes given under operating lease **30.25 crores** (31.03.2022: 27.95 crores).

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Investment property under construction 107.65 crores (31.03.2022: 103.47 crores). (` in crores)
As at As at
March 31, 2023 March 31, 2022
Opening 103.47 68.10
Additions during the year 4.18 35.37
Capitilisation - -
Closing 107.65 103.47
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Note: Refer note 19 and 22 for details of assets pledged and Note 29 for the details of Rental income.

Fair value of the investment property and investment property under construction

Details of the investment property and information about the fair value hierarchy as at March 31, 2023 and March 31, 2022 are as follows:

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(` in crores)
Fair value Fair value as at Fair value as at
hierarchy March 31, 2023 March 31, 2022
Land Level 3 208.18 213.89
Buildings Level 3 105.64 182.27
Investment property under construction Level 3 127.85 127.85
Total 441.67 524.01
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The internal technical team of the Company has valued for some of the properties at 251.40 crores (31.03.2022: 364.55 crores) and the balance properties have been valued by independent valuer at 190.27 crores (31.03.2022: 159.46 crores). The valuation is based on Government rates, market research, market trend and comparable values as considered appropriate.

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Notes forming part of the consolidated financial statements

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3.2 Other Intangible Assets (` in crores)
Intangible Assets Total
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	Intangible Assets	Total

Cost:
Balance as at April 01, 2021	13.16	13.16
Additions	0.02	0.02
Disposals / Adjustments	-	-
As at March 31, 2022	13.18	13.18
Additions	0.04	0.04
Disposals / Adjustments	0.12	0.12
As at March 31, 2023	13.10	13.10
Amortisation:
Balance as at April 01, 2021	12.45	12.45
Amortisation	0.01	0.01
Disposals / Adjustments	-	-
As at March 31, 2022	12.46	12.46
Amortisation	0.02	0.02
Disposals / Adjustments	0.12	0.12
As at March 31, 2023	12.36	12.36
Net Block
As at March 31, 2022	0.72	0.72
As at March 31, 2023	0.74	0.74

3.3 Intangible Assets - under development **6.91 crores** (31.03.2022: Nil)

(` in crores)

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As at
March 31, 2023
Opening -
Additions during the year 6.91
Capitilisation -
Closing 6.91
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3.4 The Group uses both internal technical team and independent valuers for fair valuation of the investment properties.
3.5 No proceeding has been initiated or pending against the Group for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

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(in crores) As at March 31, 2023 As at March 31, 2022 Number of Shares Amount Number of Shares Amount 4 Investments 4.1 Non Current Investments a In Associates (Equity method) Unquoted Instruments at Cost i) Investment in equity instruments In Shares of 10 each, fully paid up
Paschal Form Work (India) Private Limited 6,549,892 - 6,549,892 -
Himalayan Green Energy Private Limited 1,000,000 - 1,000,000 -
Ekana Sportz City Private Limited (Refer note 2,268,000 23.19 2,268,000 23.19
19.1)
Brindavan Infrastructure Company Limited 8,643,036 12.44 8,643,036 12.44
Pondicherry Tindivanam Tollway Private Limited 3,388,040 - 3,388,040 -
(Refer note 4.3)
Varapradha Real Estates Private Limited 13,344,973 90.69 13,344,973 80.22
In Shares of one USD each fully paid up
Apollonius Coal and Energy Pte Limited 3,808,757 16.10 3,778,757 15.86
Less: Provision for Impairment in value of 15.86 15.86
Investments
0.24 -
In Shares of 1000 Dirham each fully paid up
Nagarjuna Facilities Management Services, 147 - 147 -
L.L.C., Dubai
Total aggregate investments in Associates 126.56 115.85
b In Subsidiaries (Refer note 39.1)
Unquoted Instruments at Cost
Investment in equity instruments
In Equity Shares of “LKR” 10 each, fully paid up
NCC Urban Lanka Private Limited (Value in 7) 2 - 2 - c In Other entities Investment at Fair Value through Profit and Loss SNP Developers and Projects LLP (Valued at - -  35,500 )
SNP Property Developers LLP 0.01 0.01
NAC Quippo Equipment Services Limited 1,499,900 1.50 1,499,900 1.50
In Shares of ` 25 each, fully paid up
Akola Urban Co-operative Bank Limited 4,040 0.01 4,040 0.01
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FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

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(in crores) As at March 31, 2023 As at March 31, 2022 Number of Shares Amount Number of Shares Amount d Investment in debentures (Fair value through Profit and Loss) 0% Compulsory Convertible Debentures Gayatri Energy Ventures Private Limited (each 1,619,928 209.73 1,619,928 209.73  1,483)
Total aggregate investments in Other entities 211.25 211.25
Total 337.81 327.10
4.2 Current Investments
Investment at Fair Value through Profit and
Loss Account
In Mutual Funds (Quoted)
L&T Mutual Fund - Debt Funds 1,869,129 13.13 10,221,912 17.65
Trust MF Banking & PSU Debt Fund 10,093 1.10 10,093 1.07
Total 14.23 18.72
Grand Total 352.04 345.82
Aggregate market value of current Quoted 14.23 18.72
Investments
Aggregate amount of Unquoted Investments 353.67 342.96
Aggregate amount of impairment in value of 15.86 15.86
investments
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4.3 Of these 1,853,656 shares (31.03.2022: 1,853,656 shares) are pledged with Axis Bank Limited & WITCO as security for term loans availed by Pondicherry Tindivanam Tollway Private Limited.

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(` in crores)
As at March 31, 2023 As at March 31, 2022
5 Loans
Unsecured, Considered good
Other Body Corporates 150.00 150.00
Loans and Advances to Related Parties
Associate
Considered Good - -
Significant increase in credit risk 13.91 13.91
13.91 13.91
Less : Allowance for significant increase in credit risk 13.91 13.91
- -
Other Loans and Advances
Considered Good - -
Significant increase in credit risk 26.67 26.67
26.67 26.67
Less : Allowance for significant increase in credit risk 26.67 26.67
- -
Total 150.00 150.00
6 Trade Receivables
Unsecured (Refer note 11.1 to 11.3 & 11.5)
Considered Good 161.99 109.90
Considered Doubtful 10.00 10.00
171.99 119.90
Less : Allowance for doubtful trade receivables 14.94 11.94
Total 157.05 107.96
7 Other Financial Assets
Unsecured, Considered good
Other Receivables - 0.50
Margin Money Deposits (Refer note 12.4) 88.34 139.49
In Deposit Accounts with remaining maturity more than 12 months 0.34 0.46
Deposits with Customers and Others 6.93 0.83
Deposits - Joint Development (Refer note 7.1) 61.69 58.04
Receivable under service concession arrangement 43.11 86.26
Total 200.41 285.58
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7.1 Deposits-Joint Development represents deposits with respective land owners against registered Joint Development Agreements (JDAs)/Memorandum of Understanding(MOU). The lands under respective JDA's /MOU are in the possession of NCC Urban. NCC Urban is assessing the market scenario and accordingly initiate execution of the project/s at an appropriate time. Deposits - Joint development are interest free, refundable deposits.

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(` in crores)
As at March 31, 2023 As at March 31, 2022
8 Deferred Tax Assets (Net) (Refer note 52)
Deferred Tax 48.04 55.15
MAT - Minimum Alternate Tax 13.31 9.11
61.35 64.26
9 Other Non - Current Assets
Advance for Purchase of Land (Refer note 9.1) 2.24 2.24
GST / Sales Tax / Value Added Tax credit receivable 95.16 113.70
Contract Asset
Due on performance of future obligations
Retention Money
Considered Good 152.13 70.65
Considered Doubtful - -
152.13 70.65
Less : Allowance for doubtful retention money - -
152.13 70.65
Unbilled revenue (Refer note 16.3)
Considered Good 99.27 48.75
Considered Doubtful 8.00 4.00
107.27 52.75
Less : Expected credit loss for unbilled revenue 8.00 4.00
99.27 48.75
Advances to Suppliers, Sub-contractors, Capital Advances and 233.60 233.60
Others (Refer note 9.2)
582.40 468.94
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9.1 Advances for Purchase of Land includes 2.24 crores (31.03.2022: 2.24 crores) paid towards two properties during the years from 2005-2006 to 2008-2009, by NCC Urban Infrastructure Limited (NCC Urban) in respect of which agreements were expired. NCC Urban is confident of negotiating with the respective vendors for extension of the agreements and / or registration as per mutually agreed terms or for recovery of advances.
9.2 Advances to Suppliers, Sub–contractors and others, includes advance to enterprises owned are significantly influenced by key management personnel or their relatives 233.60 crores (31.03.2022: 233.60 crores).

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(` in crores)
As at March 31, 2023 As at March 31, 2022
10 Inventories
Raw Materials 1,069.16 795.26
Raw Material in Transit 17.03 0.87
Work-in-progress 199.05 268.40
Property Development Cost 88.79 88.81
Total 1,374.03 1,153.34
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(` in crores)
As at March 31, 2023 As at March 31, 2022
11 Trade Receivables
Unsecured (Refer note 11.1 to 11.4 & 11.6)
Considered Good 3,192.03 2,559.68
Considered Doubtful 15.26 23.26
3,207.29 2,582.94
Less : Allowance for doubtful trade receivables 31.78 37.78
Total 3,175.51 2,545.16
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11.1 Trade receivables are generally realisable from customers within a period of 30 days from the date of submission of bill / invoice.
11.2 In determining the allowance for trade receivables, the Group has used practical expedients based on financial condition of the customer, ageing of the customer receivables and overdues, availability of collaterals and historical experience of collections from customers. The concentration of risk with respect to trade receivables is reasonably low as most of the customers are Government organisations though there may be normal delays in collections.

11.3 Movement in the allowance for doubtful trade receivables:

(` in crores)

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As at As at
March 31, 2023 March 31, 2022
Balance at beginning of the year 49.72 45.14
Add: Allowance for doubtful trade receivables 5.00 13.66
Less: Allowance written off during the year (8.00) (9.08)
Balance at the end of the year 46.72 49.72
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11.4 Trade receivables includes 29.22 crores (31.03.2022: 29.22 crores) from associates.

11.5 Ageing of Non-current Trade receivables as on 31.03.2023:

(` in crores)

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Outstanding from the due date of payment
Particulars Not yet Less than 6 months - 1-2 2-3 More than
Total
Due 6 months 1 year years years 3 years
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Particulars	Outstanding from the due date of payment	Outstanding from the due date of payment	Outstanding from the due date of payment	Outstanding from the due date of payment	Outstanding from the due date of payment	Outstanding from the due date of payment	Outstanding from the due date of payment
	Not yet Due	Less than 6 months	6 months - 1 year	1-2 years	2-3 years	More than 3 years	Total

Unsecured
Undisputed Trade receivables
Considered Good	0.07	2.51	0.10	3.43	10.19	73.70	90.00
Considered Doubtful	-	-	-	-	-	-	-
Disputed Trade receivables
Considered Good	-	8.84	-	0.64	0.30	62.21	71.99
Considered Doubtful	-	-	-	-	-	10.00	10.00
Total	0.07	11.35	0.10	4.07	10.49	145.91	171.99
Less : Allowance for doubtful trade receivables							14.94
Total							157.05

220

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

Ageing of Non-current Trade receivables as on 31.03.2022:

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Outstanding from the due date of payment
Particulars Not yet Less than 6 months - 1-2 2-3 More than
Total
Due 6 months 1 year years years 3 years
Unsecured
Undisputed Trade receivables
Considered Good - - 0.81 1.78 30.90 4.96 38.45
Considered Doubtful - - - - - - -
Disputed Trade receivables
Considered Good - - 0.36 0.50 46.42 24.17 71.45
Considered Doubtful - - - - 5.00 5.00 10.00
Total - - 1.17 2.28 82.32 34.13 119.90
Less : Allowance for doubtful trade receivables 11.94
Total 107.96
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11.6 Ageing of Current Trade receivables as on 31.03.2023:

	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment
Particulars	Not yet Due	Less than 6 months	6 months - 1year	1-2 years	2-3 years	More than 3years	Total
Unsecured
Undisputed Trade receivables
Considered Good	1,209.45	1,264.66	289.08	187.02	65.07	149.46	3,164.74
Considered Doubtful	-	-	-	-	-	10.26	10.26
Disputed Trade receivables
Considered Good	-	-	-	1.18	-	26.11	27.29
Considered Doubtful	-	-	-	-	-	5.00	5.00
Total	1,209.45	1,264.66	289.08	188.20	65.07	190.83	3,207.29
Less : Allowance for doubtful trade receivables							31.78
Total							3,175.51

Ageing of Current Trade receivables as on 31.03.2022:

Particulars	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment
	Not yet Due	Less than 6 months	6 months - 1year	1-2 years	2-3 years	More than 3years	Total
Unsecured
Undisputed Trade receivables
Considered Good	1,040.26	747.98	179.34	217.41	199.15	92.37	2,476.51
Considered Doubtful	-	-	-	-	5.26	13.00	18.26
Disputed Trade receivables
Considered Good	-	1.18	-	-	8.58	73.41	83.17
Considered Doubtful	-	-	-	-	1.00	4.00	5.00
Total	1,040.26	749.16	179.34	217.41	213.99	182.78	2,582.94
Less : Allowance for doubtful trade receivables							37.78
Total							2,545.16

221

Annual Report 2022-23

Notes forming part of the consolidated financial statements

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(` in crores)
As at March 31, 2023 As at March 31, 2022
12 Cash and Bank Balances
12.1 Cash and Cash Equivalents
Cash on hand (Refer note 12.3) 0.93 1.16
Balances with Banks :
In Current Accounts 281.28 242.25
In Deposit Accounts with original maturity less than 3 months 0.18 23.13
Total 282.39 266.54
12.2 Other Bank Balances
In Deposit Accounts
Margin Money Deposits (Refer note 12.4, 12.6 & 12.7) 388.95 307.16
In Deposit Accounts with remaining maturity less than 12 32.80 15.01
months
421.75 322.17
Earmarked balances with Banks
Unpaid dividend accounts (Refer note 12.5) 0.62 0.52
Long Term Deposits 0.21 6.07
Escrow accounts (Refer note 37 (i) (a)) 3.07 3.07
Un-spent CSR account 1.23 2.16
5.13 11.82
Total 426.88 333.99
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12.3 Cash on hand includes 0.13 crores (31.03.2022: 0.24 crores) held in foreign currency.
12.4 Margin Money Deposits have been lodged with Banks against Guarantees issued by them.
12.5 Represents Cash and Cash equivalents deposited in unpaid dividend account and are not available for use by the Group other than specific purpose.
12.6 Includes deposits for Debt Service Reserve Nil (31.03.2022: 0.69 crores), pursuant to the conditions of term loan agreement with Standard Chartered Bank.
12.7 Includes deposits for Debt Service Reserve ` 0.36 crores equal to three months interest as per the facility terms with ICICI Bank.

12.8 Changes in liabilities arising from financing activities


12.8 Changes in liabilities arising from financing activities	(`in crores)
	Balance As at April 01, 2022	Cash Flows	As at March 31, 2023
Current borrowings	1,078.19	(321.17)	757.02
Non-current borrowings(includingcurrent maturity)	224.24	(7.44)	216.80
	1,302.43	(328.61)	973.82
	(`in crores)
	Balance As at April 01, 2021	Cash Flows	As at March 31, 2022
Current borrowings	1,579.43	(501.24)	1,078.19
Non-current borrowings(includingcurrent maturity)	482.61	(258.37)	224.24
	2,062.04	(759.61)	1,302.43
Add: Borrowingmovement in Subsidiarysold duringtheyear(Refer note 45)	-	13.60	-
Movement asper Cash flow statement		(746.01)

222

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

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----- Start of picture text -----

(` in crores)
As at March 31, 2023 As at March 31, 2022
13 Loans
Secured, considered good
Loans to Other Body Corporates 199.16 184.23
Unsecured considered good
Security Deposits - 0.23
Loans to Other Body Corporate 17.36 25.81
Loans and Advances to Employees 8.37 6.79
Total 224.89 217.06
14 Other Financial Assets
Secured, considered good
Receivables 154.64 154.36
Unsecured, considered good
Receivables 113.86 120.22
Interest Accrued on Deposits and Others 41.78 17.27
Unbilled Annuity Receivable 46.13 39.09
Other Receivables 11.40 11.40
Total 367.81 342.34
15 Non Current Tax Assets (Net)
Advance Taxes and Tax Deducted at Source (Net of 290.53 151.66
Provisions for tax)
15.1 Current Tax Assets (Net)
Advance Taxes and Tax Deducted at Source (Net of 11.07 74.68
Provisions for tax)
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223

Annual Report 2022-23

Notes forming part of the consolidated financial statements

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----- Start of picture text -----

(` in crores)
As at March 31, 2023 As at March 31, 2022
16 Other Current Assets
Advances to Suppliers, Sub-contractors and Others (Refer
note 16.1)
Considered Good 1,417.36 1,248.75
Considered Doubtful 5.29 10.29
1,422.65 1,259.04
Less : Allowance for doubtful advances 5.29 10.29
1,417.36 1,248.75
Contract Asset
Due on performance of future obligations
Retention Money (Refer note 16.2) 1,873.09 1,980.09
Others 200.76 345.21
Project Facilities 101.50 39.97
Unbilled revenue (Refer note 16.3)
Considered Good 3,132.05 2,230.13
Considered Doubtful 103.61 138.16
3,235.66 2,368.29
Less : Expected credit loss for unbilled revenue 103.61 138.16
3,132.05 2,230.13
Prepaid Expenses 78.26 45.62
Balances with Government Authorities
Sales Tax / Value Added Tax credit receivable 76.65 91.49
Goods and Service Tax credit receivable 489.24 519.50
Total 7,368.91 6,500.76
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16.1 Advances to Suppliers, Sub–Contractors and Others, includes advances to related parties of 4.16 crores (31.03.2022: 4.14 crores).

16.2 Retention money receivable from associates for 21.03 crores (31.03.2022: 21.03 crores).

16.3 Movement in the Expected credit loss for unbilled revenue:

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16.3 Movement in the Expected credit loss for unbilled revenue: (` in crores)
As at As at
March 31, 2023 March 31, 2022
Balance at beginning of the year 142.16 112.15
Add: Expected credit loss for unbilled revenue during the year 29.45 30.01
Less: Utilisation during the current year 60.00 -
Balance at the end of the year 111.61 142.16
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224

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

(` in crores)

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----- Start of picture text -----

As at March 31, 2023 As at March 31, 2022
Number of Number of
Amount Amount
shares shares
17 Share Capital
Authorised :
Equity Shares of 2 each 807,500,000 161.50 807,500,000 161.50 Issued : Equity Shares of 2 each (Refer note 17.1) 627,846,588 125.57 609,846,588 121.97
Subscribed and Paid up :
Equity Shares of ` 2 each 627,846,588 125.57 609,846,588 121.97
Total 125.57 121.97
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17.1 Reconciliation of the number of equity shares and amount outstanding at beginning and at end of the year:

(` in crores)

	Year Ended March 31, 2023	Year Ended March 31, 2023	Year Ended March 31, 2022	Year Ended March 31, 2022
	Number of shares	Amount	Number of shares	Amount
Balance at beginning of the year	609,846,588	121.97	609,846,588	121.97
Add: Issue of Share Capital	18,000,000	3.60	-	-
Balance at end of the year	627,846,588	125.57	609,846,588	121.97

17.2 Details of shares held by each shareholder holding more than 5% shares:

	As at March 31, 2023	As at March 31, 2023	As at March 31, 2022	As at March 31, 2022
	Number of shares	% holding	Number of shares	% holding
Smt. Rekha Jhunjhunwala	70,580,932	11.24	66,733,266	10.94
A V S R Holdings Private Limited	66,636,225	10.61	63,556,225	10.42

17.3 Unclaimed equity shares of 25,454 (31.03.2022: 25,984) are held in "NCC Limited - Unclaimed suspense account" in trust.

17.4 Rights of the shareholders

17.5 The Company had issued and allotted 18,000,000 Convertible Warrants on February 12, 2021 at a price of 59.00 per Warrant on preferential basis to the specified Promoters / Promoter Group of the Company, as per the provision of the SEBI ICDR Regulations. The Company has received the part payment (25% of total consideration) of 26.55 crores. As per the said regulations the Warrants would be converted into equivalent number of equity shares of 2.00 each (at a premium of 57.00 per share) on payment of the balance amount prior to expiry of 18 months from the date of issue of convertible warrants.

225

Annual Report 2022-23

Notes forming part of the consolidated financial statements

17.6 Shares held by promoter group at the end of the year:

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As at 31.03.2021 Change during the As at 31.03.2022 Change during the As at 31.03.2023
S. FY 2021-22 FY 2022-23
Promoter Name
No No. of % of % of No. of % of No. of % of No. of % of
No. of shares
shares holding change shares holding shares change shares holding
1 Sri. A.A.V. Ranga 11,983,196 1.96% (10,000,000) (83.45%) 1,983,196 0.33% - 0.00% 1,983,196 0.32%
Raju
2 Sri. A.S.N. Raju 4,992,985 0.82% 4,992,985 0.82% (900,000) (18.03%) 4,092,985 0.65%
3 Sri. A.G.K. Raju 4,481,569 0.73% 4,481,569 0.73% (900,000) (20.08%) 3,581,569 0.57%
4 Sri. J.V. Ranga Raju 2,465,916 0.40% 2,465,916 0.40% - 0.00% 2,465,916 0.39%
5 AVSR Holdings 62,766,225 10.29% 790,000 1.26% 63,556,225 10.42% 3,080,000 4.85% 66,636,225 10.61%
Private Limited
6 Sirisha Projects 18,610,669 3.05% 18,610,669 3.05% 2,400,000 12.90% 21,010,669 3.35%
Private Limited
7 Sri. A. Srinivas 174,000 0.03% 174,000 0.03% 1,526,000 877.01% 1,700,000 0.27%
Ramaraju
8 Sri. N.R. Alluri 1,221,578 0.20% 1,221,578 0.20% (900,000) (73.68%) 321,578 0.05%
9 Sri. U. Sunil 55,000 0.01% 55,000 0.01% 7,000,000 12727.27% 7,055,000 1.12%
10 Smt. A. Bharathi 124,059 0.02% 124,059 0.02% 1,700,000 1370.32% 1,824,059 0.29%
11 Sri. A.V.N. Raju 5,730,740 0.94% (790,000) (13.79%) 4,940,740 0.81% (900,000) (18.22%) 4,040,740 0.64%
12 Smt. A. Shyama 563,902 0.09% 563,902 0.09% - 0.00% 563,902 0.09%
13 Smt. A. Subhadra 308,091 0.05% 308,091 0.05% - 0.00% 308,091 0.05%
Jyotirmayi
14 Smt. A. V. 7,288 0.00% 7,288 0.00% - 0.00% 7,288 0.00%
Satyanarayanamma
15 Smt. A. Arundhati 1,143,022 0.19% 1,143,022 0.19% 2,500,000 218.72% 3,643,022 0.58%
16 Smt. J. Sridevi 287,859 0.05% 287,859 0.05% 425,000 147.64% 712,859 0.11%
17 Smt. BH. Kaushalya 178,590 0.03% 178,590 0.03% - 0.00% 178,590 0.03%
18 Sri. J. Krishna 306,121 0.05% 306,121 0.05% 850,000 277.67% 1,156,121 0.18%
Chaitanya Varma
19 Smt. A. Sridevi 113,884 0.02% 113,884 0.02% - 0.00% 113,884 0.02%
20 Smt. M. Swetha 1,225,530 0.20% 1,225,530 0.20% - 0.00% 1,225,530 0.20%
21 Smt. A. Neelavathi 73,281 0.01% 73,281 0.01% (73,281) (100.00%) 0.00%
Devi
22 Sri. A. Sri Harsha 41,780 0.01% 41,780 0.01% 1,700,000 4068.93% 1,741,780 0.28%
Varma
23 Sri. A. Vishnu 15,100 0.00% 15,100 0.00% 1,700,000 11258.28% 1,715,100 0.27%
Varma
24 Smt. A. Sravani 416,950 0.07% 4,000 0.96% 420,950 0.07% - 0.00% 420,950 0.07%
25 Smt. J. Sowjanya 559,166 0.09% 559,166 0.09% 425,000 76.01% 984,166 0.16%
26 Smt. A. Suguna - 0.00% 7,000,000 100.00% 7,000,000 1.15% (1,800,000) (25.71%) 5,200,000 0.83%
27 Smt. U. Ramya - 0.00% 3,000,000 100.00% 3,000,000 0.49% 247,281 8.24% 3,247,281 0.52%
28 Narasimha 2,196,179 0.36% 2,196,179 0.36% - 0.00% 2,196,179 0.35%
Developers Private
Limited
Total 120,042,680 19.68% 4,000 120,046,680 19.68% 18,080,000 138,126,680 22.00%
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226

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

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----- Start of picture text -----

(` in crores)
As at March 31, 2023 As at March 31, 2022
18 Other Equity
18.1 Capital Reserve
Opening balance 8.45 7.78
Add / (Less) : Arising on account of Consolidation - 0.67
Closing balance 8.45 8.45
18.2 Securities Premium
Opening balance 2,639.62 2,639.62
Add : Premium on Issue of Share Capital 102.60 -
Closing balance 2,742.22 2,639.62
18.3 Legal / Statutory Reserve (Refer note 42)
Opening balance 25.98 25.14
Add / (Less): On account of Foreign Currency Fluctuation 2.21 0.84
Closing balance 28.19 25.98
18.4 Reserve Fund under Section 45 - IC of RBI Act, 1934 0.24 0.24
18.5 Money received against share warrants (Refer note 17.5) - 26.55
18.6 General Reserve
Opening balance 1,384.68 1,135.18
Add : Transfer from Retained Earnings 350.00 250.00
Less : Arising on account of Consolidation - (0.50)
Closing balance 1,734.68 1,384.68
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227

Annual Report 2022-23

Notes forming part of the consolidated financial statements

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----- Start of picture text -----

(in crores) As at March 31, 2023 As at March 31, 2022 18.7 Retained Earnings (Refer note 18.8.a) Opening balance 1,383.39 1,200.44 Add : Profit for the year 609.20 482.41 1,992.59 1,682.85 Less : Appropriations Dividend distributed to equity shareholders (2022-23: 2.00 125.57 48.79
per share (2021-22: ` 0.80 per share))
Transfer to General Reserve 350.00 250.00
Transfer to Capital Reserve - 0.67
475.57 299.46
Closing balance 1,517.02 1,383.39
18.8 Other Components of Equity
Remeasurement gains / (losses) of the defined benefit plans (Net (33.90) (29.61)
of tax)
Share of Other comprehensive income in Associates 0.01 0.01
Exchange differences in translating the financial statements 44.35 41.46
of foreign operations (Net of tax ) / Adjustment on account of
Foreign currency fluctuation
Total 6,041.26 5,480.77
----- End of picture text -----

18.8.a For the year ended March 31, 2023, the Board of Directors have proposed a dividend of 2.20 per share. The dividend payable on approval of the shareholders is 138.13 crores.

18.9 Nature of Reserves

18.9.a Securities premium

18.9.b Capital Reserve

Capital Reservere represents reserve balances which are not available for distribution as dividend to the company

18.9.c General reserve

18.9.d Retained Earnings

Retained earnings are the profits/(loss) that the Group has earned/incurred till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

228

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

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(` in crores)
As at March 31, 2023 As at March 31, 2022
Non Current Current Non Current Current
19 Borrowings (Refer to note 22.4 to 22.7)
Debentures
Secured - at amortised cost
0.01 % Optionally Convertible Debentures (Refer note 19.1) 5.00 - 5.00 -
Term Loans :
Secured - at amortised cost
From Banks and Financial Institutions (Refer note 19.2) 68.16 56.08 79.59 58.87
From Other Parties (Refer note 19.3) 10.23 66.55 29.93 41.22
Vehicle Loans
Secured - at amortised cost
From Banks (Refer note 19.4) 2.56 2.07 3.65 2.35
From Others (Refer note 19.4) 3.14 3.01 2.01 1.62
Total 89.09 127.71 120.18 104.06
----- End of picture text -----

Current maturities are included in Note 22 - Borrowings.

19.1 Optionally Convertible Debentures by NCC Infra Limited

NCC Infra Limited issued optionally convertible debentures in to Equity at the option of the issuer at a future date after a term of 3 years, however not exceeding 5 years and pledged the shares of Ekana Sportz of ` 5.00 crores as security.

19.2 Term Loans from Banks and Financial Institutions

(i) Axis Bank Limited / Kotak Mahindra Bank / IndusInd Bank Limited / YES Bank Ltd
Secured by hypothecation of specific assets purchased out of the loan.
(ii) Bank of Baharain & Kuwait
Exclusive charge on the entire equipment and machinery purchased out of the loan facility with a cover of minimum 1.15 times to be maintained throughout the tenor of the loan.
(iii) Karnataka Bank Ltd
Exclusive Hypothecation charge on the machineries/equipments/vehicles purchased out of the loan facility

229

Annual Report 2022-23

Notes forming part of the consolidated financial statements

The details of rate of interest and repayment terms of the loans are as under.

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----- Start of picture text -----

Number of Loans Outstanding balance Interest Balance number of Fre-
S. outstanding As at As at (` in crores) Range Installments as at quency Commencing
Particulars
No % per of Install- From- To
31.03.2023 31.03.2022 31.03.2023 31.03.2022 31.03.2023 31.03.2022
annum ments
October 10,
Axis Bank 8.26 to
(i) - 1 - 0.05 - 1 Monthly 2017 to April
Limited 9.60
20, 2022
Kotak December 20,
7.57 to
(ii) Mahindra 17 17 6.52 10.29 18 to 19 30 to 31 Monthly 2018 to October
8.10
Bank Limited 10, 2024
February 01,
IndusInd 8.96 to
(iii) 13 66 7.60 25.66 21 to 25 8 to 36 Monthly 2019 to April
Bank Limited 9.06
15, 2025
Bank of November 30,
7.05 to
(iv) Bahrain and 3 1 33.14 44.97 2 to 12 6 to 12 Quarterly 2020 to Jun 30,
9.15
Kuwait 2027
Karnataka 8.01 to June 30, 2022
(v) 23 2 66.82 6.89 21 to 30 21 to 30 Monthly
Bank Limited 9.57 to Mar 07, 2026
Yes Bank 8.05 to May 08, 2019 to
(vi) 22 34 5.75 9.38 20 to 21 1 to 33 Monthly
Limited 8.80 Dec 15, 2024
----- End of picture text -----

(iv) Loan of NCC Urban infrastructure Limited (NCC Urban) of Nil (March 31, 2022: 31.48 crores)
(a) The Company has entered into another Facility agreement with Standard Chartered Bank for a term loan aggregating to 0.95 crores with inner Over Draft limit of 26.00 crores.
(b) The Loan has a tenor of 46 months with moratorium of 27 months followed by equated quarterly repayments commencing from 24th April 2023.
(c) First and Exclusive charge on Developer's share of land and constructed property of the Project NCC Urban Mayfair situated at Puttenahalli Village, Yelhanka, Bengaluru North Taluk, Karnataka.
(d) Exclusive charge on cash flows (receivables) generated from developer's share of the Project
(e) Letter of Comfort from NCC Limited
(f) ISRA in the form of lien-marked Fixed Deposit of an amount equivalent to 1 month interest of the total facility.
(g) The Facility was closed during the Financial Year.
(v) Loan of NCC Urban infrastructure Limited (NCC Urban) of 4.41 crores (March 31, 2022: 9.74 crores)
(a) The Company has entered into a Facility agreement with ICICI Bank for a term loan aggregating to 15.00 crores with inner Over Draft limit of 2.00 crores towards general corporate purposes.
(b) The rate of interest 9.50%, repayable with 12 monthly installments from November 15, 2022.
(c) DSR equal to 3 months interest to be maintained.

230

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

19.3 i) Term Loans from Others Parties:

Secured by hypothecation of specific assets purchased out of loan, comprising Plant and Machinery and Construction equipment.

The details of rate of interest and repayment terms of term loans are as under.

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----- Start of picture text -----

Number of Loans Outstanding balance Interest Balance number of Fre-
Commenc-
S. outstanding As at As at (` in crores) Range Installments as at quency
Particulars ing From-
No. % per of Install-
31.03.2023 31.03.2022 31.03.2023 31.03.2022 31.03.2023 31.03.2022 To
annum ments
Tata Capital August 21,
Financial 7.60 to Monthly/ 2019 to
(i) 17 5 62.23 45.49 2 to 14 3 to 21
Services 11.50 Quarterly May 21,
Limited 2024
Volvo
February
Financial
7.10 to 07, 2021 to
(ii) Services 27 27 14.55 25.66 9 to 20 21 to 32 Monthly
8.04 November
(India) Private
15, 2024
Limited
----- End of picture text -----*

*Term Loan from Tata Capital Financial Services Limited, for March 31, 2023 62.23 crores (March 31, 2022 45.49 crores) is secured by:

Personal Guarantee of the promoters i.e., Sri. A.A.V. Ranga Raju
First and Exclusive Charge on the assets being procured / financed and Collateral Charge on two properties.

19.4 Vehicle Loans

Construction Equipment Loan ICICI Bank - Loans availed for purchase of Construction Equipments are secured by hypothecation of Construction Equipment acquired out of the said loans. These loans carry an interest rate of 7.30% and repayable in 34 structured monthly installments.

231

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Notes forming part of the consolidated financial statements

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(` in crores)
As at March 31, 2023 As at March 31, 2022
20 Trade Payables (Refer note 23.1)
Retention Money 22.90 25.64
21 Provisions
Provision for Employee Benefits
Compensated absences 1.65 1.53
Gratuity (Refer note 21.1) 60.19 56.35
Total 61.84 57.88
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21.1 In accordance with the Payment of Gratuity Act, 1972 the Group provides for gratuity covering eligible employees. The liability on account of gratuity is covered partially through a recognized Gratuity Fund managed by Life Insurance Corporation of India (LIC) and balance is provided on the basis of valuation of the liability by an independent actuary as at the year end. The management understands that LIC overall portfolio of assets is well diversified and as such, the long term return on the policy is expected to be higher than the rate of return on Central Government bonds.

A Defined benefit plans

(i) Liability for gratuity as on March 31, 2023 is 85.40 crores (31.03.2022: 73.93 crores) of which 2.88 crores (31.03.2022: 3.21 crores) is funded with the Life Insurance Corporation of India. The balance of 82.52 crores (31.03.2022: 70.72 crores) is included in Provision for Gratuity.
(ii) Details of the Group’s post-retirement gratuity plans for its employees including whole-time directors are given below, which is certified by the actuary.

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Amount to be recognised in Balance Sheet: (` in crores)
As at As at
March 31, 2023 March 31, 2022
Present Value of Funded Obligations 85.40 73.93
Fair Value of Plan Assets (2.88) (3.21)
Net Liability 82.52 70.72
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(iii) Expenses to be recognized in Statement of Profit and Loss under Employee Benefit Expenses: (` in crores)
Year Ended Year Ended March
March 31, 2023 31, 2022
Current Service Cost 7.03 6.29
Interest on Defined Benefit Obligation 5.09 4.34
Expected Return on Plan assets (0.22) (0.25)
Total included in "Employee Benefits Expense" 11.90 10.38
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232

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

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(iv) Expenses to be recognized in Statement of Profit and Loss under Other Comprehensive Income: (` in crores)
Year Ended Year Ended
March 31, 2023 March 31, 2022
Return on Plan Assets 0.22 0.08
Net Actuarial Losses / (Gains) Recognised in Year 5.56 2.76
Total included in "Other Comprehensive Income" 5.78 2.84
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(v) Reconciliation of benefit obligation and plan assets for the year:

(` in crores)

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Year Ended Year Ended
March 31, 2023 March 31, 2022
Change in Defined Benefit Obligation
Opening Defined Benefit Obligation 73.93 65.22
Current Service Cost 7.03 6.29
Interest Cost 5.09 4.34
Actuarial Losses / (Gain) 5.44 2.76
Benefits Paid (6.09) (4.68)
Closing Defined Benefit Obligation 85.40 73.93
Opening Fair Value of Plan assets 3.21 2.36
Expected Return on Plan Assets - 0.17
Contributions 5.76 5.36
Benefits Paid (6.09) (4.68)
Closing Fair Value of Plan Assets 2.88 3.21
Expected Employer's Contribution Next Year 6.00 15.00
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(vi) Asset information:

(` in crores)

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As at As at
March 31, 2023 March 31, 2022
Category of Assets
Insurer Managed Funds – Life Insurance Corporation of India 100% 100%
Amount - ` in crores 2.88 3.21
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(vii) Experience Adjustments: (` in crores)
2022 - 23 2021 - 22 2020 - 21 2019 - 20 2018 - 19
Defined Benefit Obligations (DBO) 85.40 73.93 65.22 59.72 46.18
Plan Assets 2.88 3.21 2.36 4.10 6.49
Surplus/(Deficit) (82.52) (70.72) (62.86) (55.62) (39.69)
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(viii) Sensitivity Analysis: (` in crores)
Gratuity Plan
As at As at
March 31, 2023 March 31, 2022
Assumptions
Discount rate 7.51% 7.33%
Estimated rate of return on plan assets 7.51% 7.35%
Expected rate of salary increase 7.00% 6.00%
Attrition rate 24.00% 14.60%
Sensitivity analysis – DBO at the end of the year
Discount rate + 100 basis points (2.91%) (4.10%)
Discount rate - 100 basis points 3.12% 4.50%
Salary increase rate +1% 3.10% 4.40%
Salary increase rate -1% (2.98%) (4.10%)
Attrition rate +1% 0.03% 0.20%
Attrition rate -1% (0.03%) (0.30%)
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234

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

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(` in crores)
As at As at
March 31, 2023 March 31, 2022
22 Borrowings
Loans repayable on demand
Secured Loans - Banks
Working Capital Demand Loan (Refer note 22.1) 719.96 1,004.96
Cash Credits and Overdrafts (Refer note 22.1) 0.45 2.77
Current maturities of Long Term Borrowings (Refer note 19) 127.71 104.06
From Others (Refer note 22.2) - 15.64
Unsecured Loans
From Others (Refer note 22.3) 36.61 54.82
Total 884.73 1,182.25
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22.1 Working Capital Demand Loans of 719.96 crores (March 31, 2022: 1,004.96 crores) and Cash Credit facilities of 0.45 crores (March 31, 2022: 2.77 crores) availed from consortium of banks are secured by:
a) Hypothecation against first charge on stocks, book debts and other current assets of the Company, (excluding specific projects) both present and future, ranking parri passu amongst consortium banks.
b) Collateral Security pari passu first charge (Hypothecation / Pledge) amongst the members of consortium on unencumbered movable fixed assets of the Company at WDV (specific assets) and equity Shares 444,600,000 (31.03.2022: 444,600,000) of NCC Infrastructure Holdings Limited and equity shares 100,000,000 (31.03.2022: 100,000,000) of NCC Urban Infrastructure Limited. These equity shares have been pledged with SBICAP Trustee Company Limited (Security trustee) on behalf of consortium of working capital lenders.
c) Equitable mortgage of sixteen properties (Land & Buildings).
d) Personal Guarantee of Sri. A A V Ranga Raju, Sri A G K Raju & Sri A S N Raju.
These facilities carry an interest rate of 8.00% to 11.50% per annum.
22.2 Loans of Nil (March 31, 2022: 15.64 crores) of NCC Urban Infrastructure Limited.
NCC Urban Infrastructure Limited during the Financial year 2020-21, entered into a Loan Agreement with Aditya Birla Finance Limited for availing term loan aggregating to 30.00 crores. Term Loan carry an interest rate of 11.50% by securing NCC Limited Shares held by the promoter group. Total outstanding was repaid during the prior period and the Company had requested for renewal for the term loan for 15.90 crores against which ` 15.64 crores were disbursed with an interest rate of 9.50% by securing NCC Limited Shares held by the promoter group. The validity of the said Facility is till October 31, 2022. The said Facility is repaid during the financial year.
22.3 Unsecured - term loans from Others:
Includes loans of NCC Urban Infrastructure Limited taken from Other Corporates and Directors having a maturity of less than one year and outstanding balance of 36.61 crores (31.03.2022: 54.82 crores) and carry interest rate of 11.00 % per annum.
22.4 The Group used the borrowings from banks and financial institutions for the specific purpose for which it was taken.
22.5 The Group has borrowings from banks on the basis of security of current assets, and the quarterly returns and statements of current assets filed by the Company with banks are in agreement with the books of accounts.
22.6 The Group has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries).
22.7 The Group is not declared as a wilful defaulter by any bank or financial Institution or other lender during the financial year.

235

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Notes forming part of the consolidated financial statements

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(` in crores)
As at March 31, 2023 As at March 31, 2022
23 Trade Payables (Refer note 23.2)
Micro and small enterprises 47.28 34.25
Other than micro and small enterprises
Acceptances 935.56 686.83
Other than Acceptances (includes retention money payable) 4,323.18 3,676.72
5,258.74 4,363.55
Total 5,306.02 4,397.80
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23.1 Ageing of Non-current Trade payables as on 31.03.2023: (` in crores)
Outstanding from the due date of payment
Particulars Less than More than
Not Due 1-2 years 2-3 years Total
1 year 3 years
(i) MSME - - - - - -
(ii) Others 22.19 0.71 - - - 22.90
(iii) Disputed dues - MSME - - - - - -
(iv) Disputed dues - Others - - - - - -
Total 22.19 0.71 - - - 22.90
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|Ageing of Non-current Tradepayables as|on 31.03.2022:
(in crores)|**on 31.03.2022:** (in crores)|on 31.03.2022:
(in crores)|**on 31.03.2022:** (in crores)|on 31.03.2022:
(in crores)|**on 31.03.2022:** (in crores)|
|---|---|---|---|---|---|---|
||Outstandingfrom the due date ofpayment||||||
|Particulars|Not Due|Less than
1year|1-2 years|2-3 years|More than
3years|Total|
|(i)
MSME|-|-|-|-|-|-|
|(ii)
Others|19.66|5.98|-|-|-|25.64|
|(iii) Disputed dues - MSME|-|-|-|-|-|-|
|(iv) Disputed dues - Others|-|-|-|-|-|-|
|Total|19.66|5.98|-|-|-|25.64|

236

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

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23.2 Ageing of Current Trade payables as on 31.03.2023: (` in crores)
Outstanding from the due date of payment
Particulars Less than More than
Not Due 1-2 years 2-3 years Total
1 year 3 years
(i) MSME - 47.28 - - - 47.28
(ii) Others 2,516.03 2190.88 18.86 11.90 45.67 4,783.34
(iii) Disputed dues - MSME - - - - - -
(iv) Disputed dues - Others 13.88 - - - 7.44 21.32
2,529.91 2,238.16 18.86 11.90 53.11 4,851.94
Accrued expenses 454.08
Total 5,306.02
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Ageing of Current Trade payables as on 31.03.2022:

(` in crores)

		Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment	Outstandingfrom the due date ofpayment
Particulars		Not Due	Less than 1year		1-2 years		2-3 years		More than 3years	Total
(i) MSME		-	34.25		-		-		-	34.25
(ii) Others		2,256.78	1,343.99		11.79		12.91		56.57	3,682.04
(iii) Disputed dues - MSME		-	-		-		-		-	-
(iv) Disputed dues - Others		13.32	-		-		-		7.89	21.21
		2,270.10	1,378.24		11.79		12.91		64.46	3,737.50
Accrued expenses										660.30
Total										4,397.80
										(`in crores)
				As at March 31, 2023				As at March 31, 2022
24	Other Financial Liabilities
	Interest Accrued but not due on borrowings and others					96.19				87.31
	Unpaid Dividend Accounts (Refer note 12.5)					0.62				0.52
	Book over draft					7.17				-
	Other Payables
	Interest Accrued on Trade Payables					0.04				0.10
	Other Liabilities					16.48				11.42
	Total					120.50				99.35

237

Annual Report 2022-23

Notes forming part of the consolidated financial statements

(` in crores)

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As at March 31, 2023 As at March 31, 2022
25 Provisions
Provision for Employee Benefits
Compensated absences 50.84 50.43
Gratuity (Refer note 21.1) 22.33 14.37
Provision for contractual obligations (Refer note 25.1) 21.00 14.41
Total 94.17 79.21
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25.1 In respect of subsidiary OB Infrastructure Limited provision has been made for contractual obligations based on its assessment of the amount it estimates to incur to meet such obligations, details of which are given below:

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(` in crores)
As at As at
March 31, 2023 March 31, 2022
Balance at beginning of the year 14.41 66.01
Additions (including Unwinding Interest) 21.00 23.80
Incurred during the year 14.41 75.40
Balance at the end of the year 21.00 14.41
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(` in crores)
As at As at
March 31, 2023 March 31, 2022
26 Current Tax Liabilities (Net)
Provision for Tax (Net of Advance Tax) 7.25 2.17
27 Other Current Liabilities
TDS / Service Tax / Other payable 49.70 31.98
Goods and Service Tax payable 10.28 4.84
Contract Liabilities
Mobilisation Advance from Customers 2,765.60 2,056.85
Advances from Customers 469.99 281.74
Advances from others 43.55 97.28
Other Liabilities 139.04 124.67
Total 3,478.16 2,597.36
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238

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

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(` in crores)
Year Ended Year Ended
March 31, 2023 March 31, 2022
28 Revenue from Operations
Income from Contracts and Services 15,123.88 10,786.80
Income from Real Estate Projects 266.22 280.45
Other Operating Income 163.31 70.71
Total 15,553.41 11,137.96
29 Other Income
Interest Income
On Deposits and Others 27.27 19.72
On Loans and Advances 41.63 5.82
On Income Tax refund 0.97 8.35
On Others 10.23 4.75
Profit on Sale of Investment (Net) 0.17 2.06
Gain on remeasuring investment at FVTPL (Net) 0.48 1.72
Net Gain / (loss) on foreign currency transactions 0.05 3.49
Other Non-Operating Income
Rental Income from operating lease on investment property 13.56 5.78
Profit on Sale of Property, Plant and Equipment / Investment Property (Net) 47.33 -
Miscellaneous Income 5.90 19.03
Total 147.59 70.72
30 Cost of Materials Consumed 4,855.11 3,484.62
31 Construction Expenses
Transport Charges 61.84 46.38
Operation and Maintenance
Machinery 336.03 383.39
Others 32.19 18.39
368.22 401.78
Hire Charges for Machinery and others 209.06 165.37
Power and Fuel 36.24 41.90
Technical Consultation 143.45 72.37
Royalties, Seigniorage and Cess 46.84 46.80
Property Development Cost 21.28 7.80
Other Expenses 513.98 433.01
Expected credit loss for unbilled revenue 29.45 30.01
1,000.30 797.26
Total 1,430.36 1,245.42
32 Changes in Inventories of Work in Progress
Opening Balance 268.40 373.89
Closing Balance 199.05 268.40
Total 69.35 105.49
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239

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Notes forming part of the consolidated financial statements

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(` in crores)
Year Ended Year Ended
March 31, 2023 March 31, 2022
33 Employee Benefits Expense
Salaries and Other Benefits 489.16 410.76
Contribution to Provident Fund and Other Funds 45.70 30.14
Staff Welfare Expenses 10.83 11.76
Total 545.69 452.66
33.1 Refer note 21.1 for expenses recognised for gratuity of employees.
34 Finance Costs
Interest Expense on
Borrowings
Debentures - 1.43
Term Loans 17.49 21.58
Working Capital Demand Loans and Cash Credit 153.75 159.30
Mobilisation Advance 109.70 117.78
Letter of Credit and Others 58.06 36.15
339.00 336.24
Other Borrowing Costs
Commission on - Bank Guarantees 127.53 107.83
- Letter of Credit 34.54 22.02
162.07 129.85
Bank and Other Financial Charges 14.15 11.98
Total 515.22 478.07
35 Other Expenses
Rent 65.99 60.61
Travelling and Conveyance 33.33 22.29
Office Maintenance 36.05 28.39
Electricity Charges 10.79 8.75
Rates and Taxes 9.51 7.22
Consultation Charges 15.58 13.94
Postage, Telegrams and Telephones 3.43 3.10
Insurance 13.87 10.25
Printing and Stationery 6.35 5.29
Legal and Professional Charges 33.37 24.11
Auditors' Remuneration 2.06 1.88
Directors' Sitting Fees 0.41 0.41
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240

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

(` in crores)

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Year Ended Year Ended
March 31, 2023 March 31, 2022
Trade Receivables / Advances Written off 3.53 1.01
Loss on Sale of Property, Plant and Equipment / Investment Property - 3.97
(Net)
Provision for Doubtful Trade Receivables / Advances / Others 5.00 13.66
Tender Schedule Expenses 1.70 1.38
Donations 41.36 3.55
CSR Expenditure (Refer note 49) 8.65 11.03
Software Acquisition Expenses 7.84 4.90
Repairs & Maintenance 8.97 7.34
Digitization Expenses 4.35 6.79
Miscellaneous Expenses 19.65 17.13
Total 331.79 257.00
36 Tax Expense
Current Tax (including earlier year taxes) 234.25 146.58
Deferred Tax 4.39 (5.93)
Total 238.64 140.65
36.1 Reconciliation of tax expense to the accounting profit is as follows: (` in crores)
Year ended Year ended
March 31, 2023 March 31, 2022
Accounting profit before tax 884.85 634.68
Tax expense at statutory tax rate at 25.168% 222.70 159.74
Adjustments:
Effect of income that is exempt from taxation (5.88) -
Adjustments recognised in the current year in relation to the current 14.61 (2.88)
tax of prior years
Effect of expenses that are not deductible in determining taxable 16.50 14.35
profit
Effect of capital gains set off with unused capital losses (7.99) (47.51)
Adjustments recognised in the current year in relation to the MAT (10.34) 0.93
credit / reversal of DTA of prior years
Losses and tax offsets not considered for deferred tax asset 10.05 13.49
Others including effect of differential tax rates in joint operations (1.01) 2.53
and Subsidiaries
15.94 (19.09)
Tax expense reported in the Statement of Profit and Loss 238.64 140.65
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241

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Notes forming part of the consolidated financial statements

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36.2 Income tax credit / (expense) recognized in Other Comprehensive Income: (` in crores)
Year ended Year ended
March 31, 2023 March 31, 2022
Tax effect on actuarial gains/losses on defined benefit obligations 1.46 0.72
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36.3 The Company does not have any transaction which is not recorded in the books of accounts that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

36.4 In the month of November 2022, the Income Tax Department carried out a survey under section 133A of the Income Tax Act requiring the Company to provide details of transactions, if any, with certain vendors. The Company has provided required documentary evidences related to such transactions to the department. Based on internal assessment and review, management does not expect any material impact arising thereof in this regard.

37 Contingent Liabilities and Commitments (to the extent not provided for)

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(i) Contingent Liability (in crores) As at As at March 31, 2023 March 31, 2022 (a) Matters under litigation Claims against the company not acknowledged as debt* - Disputed sales tax / entry tax liability for which the Group & associates 235.79 290.53 preferred appeal - Disputed central excise duty relating to clearance of goods of LED 0.46 0.46 division in favour of Developers of SEZ, for which the Company has filed an appeal to CESTAT, Bangalore - Disputed service tax liability for which the Group preferred appeal 93.94 96.31 - Others 34.59 40.50 (Includes claim by National Highway Authority of India (NHAI) towards certain operating non-compliances by a subsidiary. NHAI has written to the subsidiary’s Escrow Agent M/s. IDBI Bank Limited to hold 3.07 crores
(31.03.2022: 3.07 crores) in Escrow account pending recovery. The subsidiary has represented to NHAI for releasing the amount kept on hold and is confident of a favourable decision by the NHAI). * Interest, if any, not ascertainable after date of order. (b) Share of group in contingent liabilities of Associates. 0.02 0.02 The Group has filed claims and has also filed counter claims in several legal disputes related to construction contracts and same are pending before legal authorities. The Management does not expect any material adverse effect on its financial position. (ii) Commitments ( in crores)
As at As at
March 31, 2023 March 31, 2022
(a) Estimated amount of contracts remaining to be executed on capital account 1.74 108.59
and not provided for.
(b) Future Export commitments on account of import of machinery and - 1.76
equipments at concessional rate of duty under EPCG scheme.
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242

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

38. Related Party Transactions

i) Following is the list of related parties and relationships:

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S.No Particulars S.No Particulars
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S.No	Particulars	S.No	Particulars

A)	Associates(Refer note 39)	23	Smt. A. Subhadra Jyotirmayi
B)	Key Management Personnel	24	Smt. A. Shyama
1	Sri. A.A.V. Ranga Raju	25	Smt. A. Suguna
2	Sri. A.S.N. Raju	26	Sri. A. Sri Harsha Varma
3	Sri. A.G.K. Raju	27	Sri. S.R.K. Surya Srikrishna Raju
4	Sri. A.V.N. Raju	28	Sri. A. Vishnu Varma
5	Sri. J.V. Ranga Raju	29	Smt. A. Nikitha
6	Sri. Utpal Hemendra Sheth	30	Sri. U. Sunil
7	Smt. Renu Challu	31	Sri. P.ManojRaj
8	Sri. Hemant Madhusudan Nerurkar	32	Smt. A. Sravani
9	Dr. Durga Prasad Subramanyam Anapindi	33	Smt. U Ramya
10	Sri. Om Prakash Jagetiya	D)	Enterprises owned or significantly influenced by key managementpersonnel or their relatives
11	Sri. K. Krishna Rao	34	NCC Blue Water Products Limited
12	Sri. M.V. Srinivasa Murthy	35	Shyamala Agro Farms LLP##
C)	Relatives of Key Management Personnel	36	Ranga Agri Impex LLP
13	Dr. A.V.S. Raju	37	NCC Foundation
14	Smt. A. Satyanarayanamma	38	Sirisha Projects Private Limited
15	Sri. N.R. Alluri	39	Narasimha Developers Private Limited
16	Sri. A. Srinivasa Rama Raju	40	Arnesh Ventures Private Limited
17	Smt. BH. Kaushalya	41	AVSR Holdings Private Limited
18	Smt. J. Sridevi	42	Sridevi Properties
19	Smt. J. Sowjanya	43	Matrix Securityand Surveillance Private Limited
20	Smt. A. Arundhati	44	Jampana Constructions Private Limited
21	Smt. M. Swetha	45	NCC Urban Infrastructure CompanyLimited, Dubai
22	Sri. J. Krishna Chaitanya Varma

Converted into LLP with effect from June 28,2021.

243

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Notes forming part of the consolidated financial statements

(ii) Related Party transactions during the year are as follows:

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(ii) Related Party transactions during the year are as follows: (` in crores)
Enterprises owned and
Key Management significantly influenced
S. Associates
Particulars personnel and relatives by key management
No
personnel or their relatives
2022 - 23 2021 - 22 2022 - 23 2021 - 22 2022 - 23 2021 - 22
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S. No	Particulars	Associates	Associates	Key Management personnel and relatives	Key Management personnel and relatives	Enterprises owned and significantly influenced by key management personnel or their relatives	Enterprises owned and significantly influenced by key management personnel or their relatives
		2022 - 23	2021 - 22	2022 - 23	2021 - 22	2022 - 23	2021 - 22

1	Loan repaid	18.21	-	-	14.50	-	-
2	Advancesgranted	-	-	-	-	-	4.91
3	Advances repaid/adjusted	-	-	-	-	0.01	0.09
4	Remittance to Trade Payables	-	0.86	-	-	0.05	3.88
5	Material Purchase & Services	0.50	0.51	-	-	-	-
6	Interest Expense	4.83	5.91	-	-	-	-
7	Reimbursement of Expenses	-	-	0.02	0.02	0.12	0.24
8	Sub-Contractors work bills	-	-			0.26	12.83
9	Contribution towards Corporate Social Responsibility	-	-	-	-	3.16	5.41
10	Remuneration (Including commission)*
	Short-term employee benefits	-	-	33.34	23.83	-	-
	Post employee benefits	-	-	0.83	0.69	-	-
11	Directors sittingfee and commission	-	-	0.34	0.85	-	-
12	Rent expenses	-	-	0.70	0.70	12.51	10.65
13	Dividendpaid	-	-	9.26	2.89	17.95	6.69

As the future liabilities for gratuity and leave encashment is provided on actuarial basis for the Group as a whole, the amount pertaining to the Directors is not ascertainable, therefore not included above.

244

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

(iii) Related Party balances outstanding are as follows:

(` in crores)

==> picture [493 x 114] intentionally omitted <==

----- Start of picture text -----

Enterprises owned and
significantly influenced
Key Management
Associates by key management
personnel and relatives
S. personnel or their
Particulars relatives
No
As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
2023 2022 2023 2022 2023 2022
----- End of picture text -----

S. No	Particulars	Associates	Associates	Key Management personnel and relatives	Key Management personnel and relatives	Enterprises owned and significantly influenced by key management personnel or their relatives	Enterprises owned and significantly influenced by key management personnel or their relatives
		As at March 31, 2023	As at March 31, 2022	As at March 31, 2023	As at March 31, 2022	As at March 31, 2023	As at March 31, 2022

1	Debit Balances outstanding
	Paschal Form Work(India)Private Limited	0.02	-	-	-	-	-
	Ekana Sportz CityPrivate Limited	50.25	50.25	-	-	-	-
	NCC Urban Infrastructure Company Limited, Dubai	-	-	-	-	233.60	233.60
	Sridevi Properties	-	-	-	-	0.19	0.19
	Jampana Constructions Private Limited	-	-	-	-	3.57	3.57
	Sri. J.V. Ranga Raju	-	-	0.08	0.08	-	-
	Smt. J. Sowjanya	-	-	0.10	0.10	-	-
	Smt. J. Sridevi	-	-	0.08	0.08	-	-
	Sri. J. Krishna Chaitanya Varma	-	-	0.13	0.13	-	-
2	Credit Balances outstanding
	Nagarjuna Facilities Management Services L.L.C.	0.25	0.25	-	-	-	-
	Varaprada Real Estates Private Ltd	36.36	54.57	-	-	-	-
	Shyamala Agro Farms LLP	-	-	-	-	-	0.03
	Jampana Constructions Private Limited	-	-	-	-	0.98	0.75
	Sridevi Properties	-	-	-	-	0.26	0.12
	Matrix Security and Surveillance Private Limited	-	-	-	-	0.01	0.02
	Sri. A.A.V. Ranga Raju *	-	-	4.24	2.68	-	-
	Sri. A.S.N. Raju	-	-	2.27	1.42	-	-
	Sri. A.G.K. Raju *	-	-	2.27	1.42	-	-
	Sri. A.V.N. Raju	-	-	2.27	1.42	-	-
	Sri. J.V. Ranga Raju	-	-	0.59	0.34	-	-
	Sri. Alluri Narayana Raju	-	-	-	14.50	-	-
	Sri. Hemant Madhusudan Nerurkar	-	-	-	0.14	-	-
	Smt. Renu Challu	-	-	-	0.09	-	-
	Dr. Durga Prasad Subramanyam Anapindi	-	-	-	0.14	-	-

245

Annual Report 2022-23

Notes forming part of the consolidated financial statements

(iii) Related Party balances outstanding are as follows:


(iii) Related Party balances outstanding are a		s follows: (`in crores
S. No	Particulars	Associates		Key Management personnel and relatives		Enterprises owned and significantly influenced by key management personnel or their relatives
		As at March 31, 2023	As at March 31, 2022	As at March 31, 2023	As at March 31, 2022	As at March 31, 2023	As at March 31, 2022
	Sri. Om Prakash Jagetiya	-	-	-	0.09	-	-
	Sri. K. Krishna Rao	-	-	0.05	0.05	-	-
	Sri. M.V. Srinivasa Murthy	-	-	0.06	0.05	-	-
	Sri. S.R.K. Surya Srikrishna Raju	-	-	0.05	0.05	-	-
	Sri. A. Vishnu Varma	-	-	0.10	0.07	-	-
	Smt. A. Nikhita	-	-	0.02	0.05	-	-
	Sri. A. Sri Harsha Varma	-	-	0.07	0.04	-	-
	Sri. U. Sunil	-	-	0.05	0.07	-	-
	Sri. J. Krishna Chaitanya Varma	-	-	0.34	0.19	-	-
	Smt. J. Sowjanya	-	-	0.11	0.05	-	-
	Smt. J. Sridevi	-	-	0.06	0.03	-	-
	Smt. BH. Kaushalya	-	-	0.02	0.02	-	-
	Sri. P. ManojRaj	-	-	0.05	0.03	-	-

Refer note 19 and 22 for details of personal guarantee given by the Directors.

246

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

(iv) Disclosure in respect of significant transactions (which are more than 10% of the total transactions of the same type) with related parties during the year.

==> picture [494 x 33] intentionally omitted <==

----- Start of picture text -----

(` in crores)
Particulars 2022 - 23 2021 - 22
----- End of picture text -----

Particulars	2022 - 23	2021 - 22

Loan Repaid
- Sri. N.R. Alluri	-	14.50
Advances Granted
- Jampana Constructions Private Limited	-	4.91
Advances repaid/adjusted
- NCC Blue Water Products Limited	-	0.09
Remittance to Trade Payables
- Jampana Constructions Private Limited	0.05	3.86
- Paschal Form Work(India)Private Limited	-	0.86
Material Purchases & Services
- Paschal Form Work(India)Private Limited	0.50	0.51
Interest Expense
- Varaprada Real estates Private Limited	4.83	5.91
Reimbursement of Expenses
- Jampana Constructions Private Limited	-	0.10
- Sridevi Properties	0.11	0.10
- NCC Blue Water Products Limited	0.01	0.04
Sub Contract Work Bills
- Jampana Constructions Private Limited	0.26	12.83
Contribution towards Corporate Social Responsibility
- NCC Foundation	3.16	5.41
Remuneration(IncludingCommission)
- Sri. A.A.V. Ranga Raju	9.29	6.41
- Sri. A.S.N. Raju	4.78	3.28
- Sri. A.G.K. Raju	4.75	3.27
- Sri. A.V.N. Raju	4.70	3.22
Directors SittingFees
- Sri. Hemanth Madhusudan Nerurkar	0.07	0.23
- Smt. Renu Challu	0.06	0.17
- Dr. Durga Prasad Subramanyam Anapindi	0.09	0.24
- Sri Om Prakash Jagetiya	0.08	0.17
- Sri Utpal Hemendra Sheth$	0.04	-
Rent Expenses
- Sirisha Projects Private Limited	11.34	9.85
Dividend Paid
- AVSR Holdings Private Limited	13.31	5.02
- Sirisha Projects Private Limited	4.20	1.49

$ Transactions occurred during the previous year with the party do not exceed 10% of the total transaction value. Hence, amount not disclosed.

247

Annual Report 2022-23

Notes forming part of the consolidated financial statements

39 The Subsidiaries and Associate Companies considered for consolidated financial statements are:

==> picture [494 x 569] intentionally omitted <==

----- Start of picture text -----

Proportion of Ownership Interest and
Place of
voting power held by the Group
Name of Subsidiaries /Associates incorporation
As at As at
and operation
March 31, 2023 March 31, 2022
NCC Urban Infrastructure Limited India 80% 80%
NCC Infrastructure Holdings Limited India 62.84% 62.84%
NCC Vizag Urban Infrastructure Limited (Refer note 39.2) India - -
NCC International Convention Centre Limited [$] India - -
Pachhwara Coal Mining Private Limited India 51% 51%
Talaipalli Coal Mining Private Limited India 51% 51%
Nagarjuna Construction Company International L.L.C. Sultanate of 100% 100%
Oman
NCC Infrastructure Holdings Mauritius Pte Limited Mauritius 100% 100%
Nagarjuna Contracting Co. L.L.C. Dubai 100% 100%
Subsidiaries of NCC Urban Infrastructure Limited
Dhatri Developers & Projects Private Limited India 100% 100%
Sushanti Avenues Private Limited India 100% 100%
Sushrutha Real Estate Private Limited India 100% 100%
PRG Estates LLP India 100% 100%
Thrilekya Real Estates LLP India 100% 100%
Varma Infrastructure LLP India 100% 100%
Nandyala Real Estates LLP India 100% 100%
Kedarnath Real Estates LLP India 100% 100%
AKHS Homes LLP India 100% 100%
JIC Homes Private Limited India 100% 100%
Sushanti Housing Private Limited India 100% 100%
CSVS Property Developers Private Limited India 100% 100%
Vera Avenues Private Limited India 100% 100%
Sri Raga Nivas Property Developers LLP India 100% 100%
VSN Property Developers LLP India 100% 100%
M A Property Developers Private Limited India 100% 100%
Vara Infrastructure Private Limited [@] India - -
Sri Raga Nivas Ventures Private Limited ^ India - -
Mallelavanam Property Developers Private Limited India 100% 100%
Sradha Real Estates Private Limited [@] India - -
Siripada Homes Private Limited [@] India - -
Nagarjuna Suites Private Limited ^^ India - -
NCC Urban Homes Private Limited India 100% 100%
NCC Urban Ventures Private Limited India 100% 100%
NCC Urban Meadows Private Limited [@] India - -
NCC Urban Villas Private Limited [@] India - -
----- End of picture text -----

248

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

==> picture [494 x 349] intentionally omitted <==

$ Struck off from the register of companies w.e.f June 22, 2021.
@ Struck off from the register of companies w.e.f April 09,2021.
^ Struck off from the register of companies w.e.f December 02,2021.
^^ Struck off from the register of companies w.e.f January 31,2022.

Including holding by NCC Limited.

Percentage of ownership interest in step subsidiaries and associates reported above represents ownership interest of immediate holding company and not the effective interest of the Group.

39.1 List of entities not considered for consolidation

(a) In respect of a step subsidiary company, NCC Urban Lanka (Private) Limited, there are no transactions since incorporation, hence not considered for consolidation.

39.2 Change in the Group's ownership interest

Ceased to be Subsidiary with effect from March 31, 2022.

249

Annual Report 2022-23

Notes forming part of the consolidated financial statements

39.3 Disclosure of subsidiary having material non-controlling interests:

|(i)
Summarised statement of Profit and Loss for t|he year ended March 31, 2023:
(in crores)|**he year ended March 31, 2023:** (in crores)|he year ended March 31, 2023:
(in crores)|**he year ended March 31, 2023:** (in crores)|
|---|---|---|---|---|
|Particulars|NCC
Infrastructure
Holdings Limited|OB
Infrastructure
Limited|Pachhwara Coal
Mining Private
Limited|NCC Urban
Infrastructure
Limited|
|Revenue|0.48|89.64|1,779.61|361.53|
|Profit / (loss) for the year|(14.93)|9.94|52.51|44.04|
|Total comprehensive income|(14.93)|9.94|52.51|44.04|
|Non-controlling interest %|37.16%|59.77%|49.00%|20.00%|
|Profit / (loss) allocated to non-controlling interests|(5.55)|5.94|25.73|8.81|

Summarised statement of Profit and Loss for the year ended March 31, 2022:


Summarised statement of Profit and Loss for the year ended March 31, 2022: (`in crores)
Particulars	NCC Infrastructure Holdings Limited	OB Infrastructure Limited	Pachhwara Coal Mining Private Limited	NCC Urban Infrastructure Limited
Revenue	0.48	89.64	864.86	343.42
Profit/ (loss)for theyear	(17.01)	12.63	25.30	18.02
Total comprehensive income	(17.01)	12.63	25.30	18.02
Non-controllinginterest %	37.16%	59.77%	49.00%	20.00%
Profit/ (loss)allocated to non-controllinginterests	(6.32)	7.55	12.40	3.60

(ii) Summarised Balance Sheet for the year ended March 31, 2023:

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----- Start of picture text -----

(ii) Summarised Balance Sheet for the year ended March 31, 2023: (` in crores)
NCC OB Pachhwara Coal NCC Urban
Particulars Infrastructure Infrastructure Mining Private Infrastructure
Holdings Limited Limited Limited Limited
----- End of picture text -----

Particulars	NCC Infrastructure Holdings Limited	OB Infrastructure Limited	Pachhwara Coal Mining Private Limited	NCC Urban Infrastructure Limited

Current assets (a)	15.79	157.64	455.27	397.70
Current liabilities (b)	134.57	29.59	424.22	218.54
Net current Assets (c) = (a) - (b)	(118.78)	128.05	31.05	179.16
Non-current assets (d)	441.60	52.52	9.17	209.38
Non-current liabilities (e)	-	0.75	-	6.00
Net non-current Assets (f) = (d) - (e)	441.60	51.77	9.17	203.38
Net assets (g)=(c)+(f)	322.82	179.82	40.22	382.54
Non-controlling interest %	37.16%	59.77%	49.00%	20.00%
Accumulated non-controlling interests	119.96	107.48	19.71	76.51

250

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

Summarised Balance Sheet for the year ended March 31, 2022:

==> picture [493 x 54] intentionally omitted <==

----- Start of picture text -----

Summarised Balance Sheet for the year ended March 31, 2022: (` in crores)
NCC OB Pachhwara Coal NCC Urban
Particulars Infrastructure Infrastructure Mining Private Infrastructure
Holdings Limited Limited Limited Limited
----- End of picture text -----

Particulars	NCC Infrastructure Holdings Limited	OB Infrastructure Limited	Pachhwara Coal Mining Private Limited	NCC Urban Infrastructure Limited

Current assets(a)	16.40	101.48	61.06	459.86
Current liabilities(b)	120.29	17.24	51.38	275.77
Net current Assets(c)=(a)-(b)	(103.89)	84.24	9.68	184.09
Non-current assets(d)	441.64	91.45	2.03	191.99
Non-current liabilities(e)	-	5.80	-	37.42
Net non-current Assets(f)=(d)-(e)	441.64	85.65	2.03	154.57
Net assets(g)=(c)+(f)	337.75	169.89	11.71	338.66
Non-controllinginterest %	37.16%	59.77%	49.00%	20.00%
Accumulated non-controllinginterests	125.51	101.54	5.74	67.73

(iii) Summarised Cash Flow for the year ended March 31, 2023:


(iii) Summarised Cash Flow for the year ended March 31, 2023: (`in crores)
Particulars	NCC Infrastructure Holdings Limited	OB Infrastructure Limited	Pachhwara Coal Mining Private Limited	NCC Urban Infrastructure Limited
Cash flows from operating activities	(1.05)	41.51	55.34	104.52
Cash flows from investing activities	(0.03)	(38.31)	-	(7.42)
Cash flows from financing activities	(0.00)	(0.00)	(24.00)	(101.53)
Net increase/(decrease) in cash and cash equivalents	(1.08)	3.20	31.34	(4.43)

Summarised Cash Flow for the year ended March 31, 2022:


Summarised Cash Flow for the year ended March 31, 2022: (`in crores)
Particulars	NCC Infrastructure Holdings Limited	OB Infrastructure Limited	Pachhwara Coal Mining Private Limited	NCC Urban Infrastructure Limited
Cash flows from operatingactivities	(1.01)	(5.17)	22.33	204.32
Cash flows from investingactivities	5.12	74.45	-	(2.97)
Cash flows from financingactivities	(0.03)	(71.48)	(22.90)	(198.51)
Net increase/(decrease)in cash and cash equivalents	4.08	(2.20)	(0.57)	2.84

39.4 Financial information in respect of individually immaterial associates:


39.4 Financial information in respect of individually immaterial associates:	(`in crores)
Particulars	Year ended March 31, 2023	Year ended March 31, 2022
Aggregate carrying amount of investments in individually immaterial associates as at	126.56	115.85
Aggregate group share of
Profit for the year	10.47	1.40

251

Annual Report 2022-23

Notes forming part of the consolidated financial statements

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

==> picture [494 x 107] intentionally omitted <==

----- Start of picture text -----

All the numbers belong to the year March 31, 2023
Net Assets, i.e., total
Share in other Share in total
assets minus total Share in profit or loss
comprehensive income comprehensive income
liabilities
Name of the Entities in the Group
As % of As % of As % of
As % of
Consoli- Consolidated Consolidated
Consoli- Amount Amount Amount Amount
dated other compre- total compre-
dated net (crores) ( crores) (crores) ( crores)
profit or hensive hensive
assets
loss income income
----- End of picture text -----

Name of the Entities in the Group	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023
	Net Assets, i.e., total assets minus total liabilities		Share in profit or loss		Share in other comprehensive income		Share in total comprehensive income
	As % of Consoli- dated net assets	Amount (`crores)\|As % of<br>Consoli-<br>dated<br>profit or<br>loss\|Amount<br>(`crores)	As % of Consolidated other compre- hensive income	Amount (`crores)\|As % of<br>Consolidated<br>total compre-<br>hensive<br>income\|Amount<br>(`crores)

NCC Limited	102.49%	6,321.90	93.43%	569.21	325.71%	(4.56)	92.89%	564.65
Subsidiaries
Indian
NCC Urban Infrastructure Limited	6.20%	382.54	7.23%	44.04	11.43%	(0.16)	7.22%	43.88
NCC Infrastructure Holdings Limited	5.23%	322.82	(2.45%)	(14.93)	0.00%	-	(2.46%)	(14.93)
Samashti Gas Energy Limited	0.00%	-	0.00%	-	0.00%	-	0.00%	-
NCC Infra Limited	0.29%	17.70	0.00%	-	0.00%	-	0.00%	-
OB Infrastructure Limited	2.92%	179.82	1.63%	9.94	0.00%	-	1.64%	9.94
Pachhwara Coal Mining Private Limited	0.65%	40.22	8.62%	52.51	0.00%	-	8.64%	52.51
Talaipalli Coal Mining Private Limited	0.00%	(0.24)	0.00%	-	0.00%	-	0.00%	-
Savitra Agri Industrial Park Private Limited	1.02%	62.95	0.00%	-	0.00%	-	0.00%	-
CSVS Property Developers Private Limited	0.03%	1.83	0.00%	-	0.00%	-	0.00%	-
Dhatri Developers & Projects Private Limited	0.12%	7.55	0.00%	-	0.00%	-	0.00%	-
JIC Homes Private Limited	0.03%	1.84	0.00%	-	0.00%	-	0.00%	-
M A Property Developers Private Limited	0.03%	1.76	0.00%	-	0.00%	-	0.00%	-
Mallelavanam Property Developers Private Limited	0.02%	1.00	0.00%	-	0.00%	-	0.00%	-
Sushanti Housing Private Limited	0.03%	1.76	0.00%	-	0.00%	-	0.00%	-
Sushrutha Real Estate Private Limited	0.04%	2.30	0.00%	-	0.00%	-	0.00%	-
Sushanti Avenues Private Limited	0.09%	5.39	0.00%	-	0.00%	-	0.00%	-
Vera Avenues Private Limited	0.02%	1.42	0.00%	-	0.00%	-	0.00%	-
NCC Urban Ventures Private Limited	0.00%	0.02	0.00%	-	0.00%	-	0.00%	-
NCC Urban Homes Private Limited	0.00%	0.02	0.00%	-	0.00%	-	0.00%	-

252

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

==> picture [494 x 107] intentionally omitted <==

Name of the Entities in the Group	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023
	Net Assets, i.e., total assets minus total liabilities		Share in profit or loss		Share in other comprehensive income		Share in total comprehensive income
	As % of Consoli- dated net assets	Amount (`crores)\|As % of<br>Consoli-<br>dated<br>profit or<br>loss\|Amount<br>(`crores)	As % of Consolidated other compre- hensive income	Amount (`crores)\|As % of<br>Consolidated<br>total compre-<br>hensive<br>income\|Amount<br>(`crores)

Foreign				-
Nagarjuna Construction Company International L.L.C.	(0.04%)	(2.77)	(1.53%)	(9.30)	1650.00%	(23.10)	(5.33%)	(32.40)
NCC Infrastructure Holdings Mauritius Pte Limited	0.39%	23.89	(0.02%)	(0.12)	3326.43%	(46.57)	(7.68%)	(46.69)
Al Mubarakia Contracting Co. L.L.C.	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Nagarjuna Contracting Co. L.L.C.	0.00%	-	0.00%	-	5.71%	(0.08)	(0.01%)	(0.08)
NCCA International Kuwait General Contracts Company L.L.C.	0.06%	3.42	0.00%	-	15.71%	(0.22)	(0.04%)	(0.22)
Partnership Firm
AKHS Homes LLP	0.05%	3.11	0.00%	-	0.00%	-	0.00%	-
Kedarnath Real Estates LLP	0.02%	1.40	0.00%	-	0.00%	-	0.00%	-
Sri Raga Nivas Property Developers LLP	0.05%	3.35	0.00%	-	0.00%	-	0.00%	-
VSN Property Developers LLP	0.05%	3.35	0.00%	0.01	0.00%	-	0.00%	0.01
Nandyala Real Estates LLP	0.05%	2.79	0.00%	0.01	0.00%	-	0.00%	0.01
PRG Estates LLP	0.02%	1.45	0.00%	-	0.00%	-	0.00%	-
Thrilekya Real Estates LLP	0.03%	1.55	0.00%	-	0.00%	-	0.00%	-
Varma Infrastructure LLP	0.03%	1.71	0.00%	-	0.00%	-	0.00%	-
Non Controllling Interest	(5.17%)	(318.63)	(6.07%)	(37.01)	(2.14%)	0.03	(6.08%)	(36.98)
Associates
(Investment as per equity method)
Indian
Himalayan Green Energy Private Limited	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Paschal Form Work (India) Private Limited	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Ekana Sportz city Private Limited	0.38%	23.19	0.00%	-	0.00%	-	0.00%	-
Brindavan Infrastructure Company Limited	0.20%	12.44	0.00%	-	0.00%	-	0.00%	-
Pondicherry Tindivanam Tollway Private Limited	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Varapradha Real Estates Private Limited	1.47%	90.69	1.72%	10.47	0.00%	-	1.72%	10.47

253

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Notes forming part of the consolidated financial statements

	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023	All the numbers belong to the year March 31, 2023
	Net Assets, i.e., total assets minus total liabilities		Share in profit or loss		Share in other comprehensive income		Share in total comprehensive income
Name of the Entities in the Group	As % of Consoli- dated net assets	Amount (`crores)\|As % of<br>Consoli-<br>dated<br>profit or<br>loss\|Amount<br>(`crores)	As % of Consolidated other compre- hensive income	Amount (`crores)\|As % of<br>Consolidated<br>total compre-<br>hensive<br>income\|Amount<br>(`crores)
Foreign
Nagarjuna Facilities Management Services L.L.C.	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Apollonius Coal and Energy Pte. Ltd.	0.00%	0.24	0.00%	-	0.00%	-	0.00%	-
Total before CFS adjustments & eliminations		7,203.78		624.83		(74.66)		550.17
CFS adjustments & eliminations	(16.78%)	(1,036.95)	(2.55%)	(15.63)	(5232.86%)	73.26	9.49%	57.63
Total	100%	6,166.83	100%	609.20	100%	(1.40)	100%	607.80

	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022
	Net Assets, i.e., total assets minus total liabilities		Share in profit or loss		Share in other comprehensive income		Share in total comprehensive income
Name of the Entities in the Group	As % of Consoli- dated net assets	Amount (`crores)\|As % of<br>Consoli-<br>dated<br>profit or<br>loss\|Amount<br>(`crores)	As % of Consolidated other compre- hensive income	Amount (`crores)\|As % of<br>Consolidated<br>total compre-<br>hensive<br>income\|Amount<br>(`crores)
NCC Limited	103.58%	5,803.17	101.60%	490.12	111.90%	(2.82)	101.54%	487.30
Subsidiaries
Indian
NCC Urban Infrastructure Limited	6.04%	338.66	3.74%	18.02	2.78%	(0.07)	3.74%	17.95
NCC Infrastructure Holdings Limited	6.03%	337.75	(10.47%)	(17.01)	0.00%	-	(10.53%)	(50.52)
Samashti Gas Energy Limited	0.00%	-	0.00%	-	0.00%	-	0.00%	-
NCC Infra Limited	0.32%	17.70	0.00%	-	0.00%	-	0.00%	-
NCC Vizag Urban Infrastructure Limited	0.00%	-	(0.01%)	(0.05)	0.00%	-	(0.01%)	(0.05)
OB Infrastructure Limited	3.03%	169.89	2.68%	12.63	0.00%	-	2.70%	12.94
NCC International Convention Centre Limited	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Pachhwara Coal Mining Private Limited	0.21%	11.71	5.24%	25.30	0.00%	-	5.27%	25.30

254

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

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----- Start of picture text -----

All the numbers belong to the year March 31, 2022
Net Assets, i.e., total
Share in other Share in total
assets minus total Share in profit or loss
comprehensive income comprehensive income
liabilities
Name of the Entities in the Group As % of As % of As % of
As % of
Consoli- Consolidated Consolidated
Consoli- Amount Amount Amount Amount
dated other compre- total compre-
dated net (crores) ( crores) (crores) ( crores)
profit or hensive hensive
assets
loss income income
----- End of picture text -----

Name of the Entities in the Group	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022
	Net Assets, i.e., total assets minus total liabilities		Share in profit or loss		Share in other comprehensive income		Share in total comprehensive income
	As % of Consoli- dated net assets	Amount (`crores)\|As % of<br>Consoli-<br>dated<br>profit or<br>loss\|Amount<br>(`crores)	As % of Consolidated other compre- hensive income	Amount (`crores)\|As % of<br>Consolidated<br>total compre-<br>hensive<br>income\|Amount<br>(`crores)

Talaipalli Coal Mining Private Limited	0.00%	(0.25)	0.00%	-	0.00%	-	0.00%	-
Savitra Agri Industrial Park Private Limited	1.12%	62.95	0.00%	(0.02)	0.00%	-	0.00%	(0.02)
CSVS Property Developers Private Limited	0.03%	1.83	0.00%	-	0.00%	-	0.00%	-
Dhatri Developers & Projects Private Limited	0.11%	6.39	0.00%	-	0.00%	-	0.00%	-
JIC Homes Private Limited	0.03%	1.82	0.00%	-	0.00%	-	0.00%	-
M A Property Developers Private Limited	0.03%	1.74	0.00%	-	0.00%	-	0.00%	-
Mallelavanam Property Developers Private Limited	0.02%	0.98	0.00%	-	0.00%	-	0.00%	-
Sushanti Housing Private Limited	0.03%	1.74	0.00%	-	0.00%	-	0.00%	-
Sradha Real Estates Private Limited	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Sushrutha Real Estate Private Limited	0.04%	2.28	0.00%	-	0.00%	-	0.00%	-
Sri Raga Nivas Ventures Private Limited	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Sushanti Avenues Private Limited	0.08%	4.66	0.00%	-	0.00%	-	0.00%	-
Vera Avenues Private Limited	0.02%	1.40	0.00%	-	0.00%	-	0.00%	-
Vara Infrastructure Private Limited	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Siripada Homes Private Limited	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Nagarjuna Suites Private Limited	0.00%	-	0.00%	-	0.00%	-	0.00%	-
NCC Urban Ventures Private Limited	0.00%	0.01	0.00%	-	0.00%	-	0.00%	-
NCC Urban Homes Private Limited	0.00%	0.01	0.00%	-	0.00%	-	0.00%	-
NCC Urban Meadows Private Limited	0.00%	-	0.00%	-	0.00%	-	0.00%	-
NCC Urban Villas Private Limited	0.00%	-	0.00%	-	0.00%	-	0.00%	-

255

Annual Report 2022-23

Notes forming part of the consolidated financial statements

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Name of the Entities in the Group	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022
	Net Assets, i.e., total assets minus total liabilities		Share in profit or loss		Share in other comprehensive income		Share in total comprehensive income
	As % of Consoli- dated net assets	Amount (`crores)\|As % of<br>Consoli-<br>dated<br>profit or<br>loss\|Amount<br>(`crores)	As % of Consolidated other compre- hensive income	Amount (`crores)\|As % of<br>Consolidated<br>total compre-<br>hensive<br>income\|Amount<br>(`crores)

Foreign				-
Nagarjuna Construction Company International L.L.C.	0.11%	6.23	(14.85%)	(71.66)	374.60%	(9.44)	(16.90%)	(81.10)
NCC Infrastructure Holdings Mauritius Pte Limited	0.72%	40.28	(1.65%)	(7.97)	729.76%	(18.39)	(5.49%)	(26.36)
Al Mubarakia Contracting Co. L.L.C.	0.00%	-	0.00%	-	2.78%	(0.07)	(0.01%)	(0.07)
Nagarjuna Contracting Co. L.L.C.	0.00%	-	0.00%	-	0.79%	(0.02)	0.00%	(0.02)
NCCA International Kuwait General Contracts Company L.L.C.	0.06%	3.19	0.00%	-	4.37%	(0.11)	(0.02%)	(0.11)
Partnership Firm
AKHS Homes LLP	0.00%	0.03	0.00%	-	0.00%	-	0.00%	-
Kedarnath Real Estates LLP	0.03%	1.43	0.00%	-	0.00%	-	0.00%	-
Sri Raga Nivas Property Developers LLP	0.00%	0.03	0.00%	-	0.00%	-	0.00%	-
VSN Property Developers LLP	0.00%	0.03	0.00%	-	0.00%	-	0.00%	-
Nandyala Real Estates LLP	0.05%	2.84	0.00%	-	0.00%	-	0.00%	-
PRG Estates LLP	0.02%	1.34	0.00%	-	0.00%	-	0.00%	-
Thrilekya Real Estates LLP	0.03%	1.60	0.00%	-	0.00%	-	0.00%	-
Varma Infrastructure LLP	0.03%	1.41	0.00%	-	0.00%	-	0.00%	-
Non Controllling Interest	(5.24%)	(293.41)	(2.41%)	(11.62)	(0.79%)	0.02	(2.42%)	(11.60)
Associates
(Investment as per equity method)
Indian
Himalayan Green Energy Private Limited	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Paschal Form Work (India) Private Limited	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Ekana Sportz city Private Limited	0.41%	23.19	(0.03%)	(0.13)	0.00%	-	(0.03%)	(0.13)
Brindavan Infrastructure Company Limited	0.22%	12.44	0.00%	(0.02)	0.00%	-	0.00%	(0.02)

256

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022	All the numbers belong to the year March 31, 2022
	Net Assets, i.e., total assets minus total liabilities		Share in profit or loss		Share in other comprehensive income		Share in total comprehensive income
Name of the Entities in the Group	As % of Consoli- dated net assets	Amount (`crores)\|As % of<br>Consoli-<br>dated<br>profit or<br>loss\|Amount<br>(`crores)	As % of Consolidated other compre- hensive income	Amount (`crores)\|As % of<br>Consolidated<br>total compre-<br>hensive<br>income\|Amount<br>(`crores)
Pondicherry Tindivanam Tollway Private Limited	0.00%	-	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Varapradha Real Estates Private Limited	1.43%	80.22	0.32%	1.55	0.00%	-	0.32%	1.55
Foreign
Nagarjuna Facilities Management Services L.L.C.	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Apollonius Coal and Energy Pte. Ltd.	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Total before CFS adjustments & eliminations		6,645.29		439.14		(30.90)		375.04
CFS adjustments & eliminations	(18.61%)	(1,042.55)	15.85%	43.27	(1126.19%)	28.38	21.85%	104.85
Total	100.00%	5,602.74	100.00%	482.41	100.00%	(2.52)	100.00%	479.89

257

Annual Report 2022-23

Notes forming part of the consolidated financial statements

41 Financial instruments

41.1 Capital management

The Group’s capital management objective is to maximise the total shareholder return by optimising cost of capital through flexible capital structure that supports growth. Further, the Group ensures optimal credit risk profile to maintain/enhance credit rating.

The Group determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The funding requirements are met through internal accruals and long-term/short-term borrowings. The Group monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Group.

For the purpose of capital management, capital includes issued equity capital, non-controlling interest, securities premium and all other revenue reserves. Net debt includes all long and short-term borrowings as reduced by cash and cash equivalents.

The following table summarises the capital of the Group:

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The following table summarises the capital of the Group: (` in crores)
As at As at
March 31, 2023 March 31, 2022
Equity 6,485.46 5,896.15
Short-term borrowings and current portion of long-term borrowings 884.73 1,182.25
Long-term borrowings 89.09 120.18
Cash and cash equivalents (282.39) (266.54)
Net debt 691.43 1,035.89
Total capital (equity + net debt) 7,176.89 6,932.04
Gearing ratio 0.11 0.18
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41.2 Categories of financial instruments

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41.2 Categories of financial instruments (` in crores)
As at As at
March 31, 2023 March 31, 2022
Financial assets
Measured at fair value through profit or loss (FVTPL)
Mandatorily measured:
Equity investments in other entities 211.25 211.25
Investments in Mutual funds 14.23 18.72
Measured at amortised cost
Cash and bank balances 709.27 600.53
Other financial assets at amortised cost 4,275.67 3,648.10
Measured at cost
Investments in equity instruments in associates
Equity shares 126.56 115.85
5,336.98 4,594.45
Financial liabilities
Measured at amortised cost 6,423.24 5,825.22
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258

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

41.3 Financial risk management objectives

The Group’s business activities exposed to a variety of financial risk viz., market risk, credit risk and liquidity risk. The Group’s focus is to estimate a vulnerability of financial risk and to address the issue to minimize the potential adverse effects of its financial performance.

i) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Group’s exposure to market risk is primarily on account of the following:

Interest rate risk

Out of total borrowings, large portion represents short term borrowings (WCDL) and the interest rate primarily basing on the Group’s credit rating and also the changes in the financial market. Group continuously monitoring over all factors influence rating and also factors which influential the determination of the interest rates by the banks to minimize the interest rate risks.

The Group’s exposure to changes in interest rates relates primarily to the Group’s outstanding floating rate borrowings. Out of the total borrowings of 973.82 crores (31.03.2022: 1,302.43 crores) as of 31.03.2023, the floating rate borrowings are 878.07 crores (31.03.2022: 1,109.58 crores). For every 50 base points change in the interest rate when no change in other variables, it will affect the profit before tax by 4.39 crores for the year ended March 31, 2023 (31.03.2022: 5.55 crores).

• Foreign currency risk

The Group has several balances in foreign currency and consequently the group is exposed to foreign exchange risk. The exchange rate between the rupee and foreign currencies has changed substantially in recent years, which has affected the results of the Group, and may fluctuate substantially in the future. The Group evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

We summarise below the financial instruments which have the foreign currency risks as at March 31, 2023 and March 31, 2022.

(a) The carrying amounts of the Group's foreign currency denominated monetary assets and monetary liabilities based on gross exposure at the end of the reporting period is as under:

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Liabilities Assets
Currency As at As at As at As at
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
USD (crores) 4.31 4.23 5.26 5.26
INR (in crores) 354.60 320.60 432.66 399.07 EURO (crores) - 0.08 - - INR ( in crores) - 6.92 - -
GBP (crores) - 0.10 - -
INR (` in crores) - 10.20 - -
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The Group doesn't have any forex derivative instrument, hence all the above balances are unhedged.

259

Annual Report 2022-23

Notes forming part of the consolidated financial statements

(b) Foreign currency sensitivity analysis

The Group is not substantially exposed for business activities in foreign currency. Hence, the impact of any significant fluctuation in the exchange rates is not expected to have a material impact of the operating profits of the Group.

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(in crores) As at As at Currency USD impact on: March 31, 2023 March 31, 2022 Impact of1 strengthening against US Dollar on profit or (loss) for the year (0.95) (1.03)
Impact of 1 weakening against US Dollar on profit or (loss) for the year 0.95 1.03 Impact of1 strengthening against US Dollar on Equity as at the end of the (0.95) (1.03)
reporting period
Impact of `1 weakening against US Dollar on Equity as at the end of the 0.95 1.03
reporting period
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ii) Credit risk management

Credit Risk refers to the risk for a counter party default on its contractual obligation resulting a financial loss to the Group.

Credit risk on trade receivables and contract assets is limited as the customers of the Group mainly consists of the Government promoted entities having a strong credit worthiness. For doubtful receivables the company uses a provision matrix to compute the expected credit loss allowances for trade receivables and contract assets. In assessing the recoverability of the trade receivables and contracts assets, management’s judgement involves consideration of aging status, evaluation of litigations and the likelihood of collection based on the terms of the contract. Refer note 6, 9, 11.3 and 16.3 for provision made against trade receivable and contract assets.

Credit risk on account of investments, loans (including interest) and other receivables from related parties has been adequately provided in the books. The cash and bank balances (excluding cash on hand) are held with banks and financial institutions having good credit rating.

iii) Liquidity risk management

The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuous planning and monitoring of actual cash flows and by matching the maturity profiles of financial assets and liabilities.

The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at March 31, 2023:

(` in crores)

		Payable	Payable	Payable	Total contracted cash flows
	Carrying amount	Within 1year	1-3 year	Beyond 3years
Accountspayable and acceptances	5,328.92	5,075.25	206.40	47.27	5,328.92
Borrowings and interest accrued	1,070.01	985.92	82.07	2.02	1,070.01
Other financial liabilities	24.31	24.31	-	-	24.31
Total	6,423.24	6,085.48	288.47	49.29	6,423.24

260

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at March 31, 2022:

payments as at March 31, 2022:
		(`in crores
		Payable			Total contracted cash flows
	Carrying amount	Within 1year	1-3 year	Beyond 3years
Accountspayable and acceptances	4,423.44	4,205.00	176.37	42.07	4,423.44
Borrowings and interest accrued	1,389.74	1,269.56	118.15	2.03	1,389.74
Other financial liabilities	12.04	12.04	-	-	12.04
Total	5,825.22	5,486.60	294.52	44.10	5,825.22

41.4 Fair value measurements

Some of the Group’s financial assets and financial liabilities are measured at fair value at the end of the reporting period. The following table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular, the valuation techniques and inputs used):

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(` in crores)
Fair Value as at Valuation
Fair value
Financial assets / financial liabilities As at As at techniques & key
hierarchy
March 31, 2023 March 31, 2022 inputs used
Investments in Mutual funds at FVTPL 14.23 18.72 Level 1 Refer note 2
Investments in unquoted equity instruments at 1.52 1.52 Level 2 Refer note 3(a)
FVTPL
Investments in unquoted equity instruments at 209.73 209.73 Level 2 Refer note 3(b)
FVTPL
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*Positive value denotes financial asset (net) and negative value denotes financial liability (net).

Notes:

(1) There were no transfers between Level 1 and 2 in the year.
(2) The Level 1 financial instruments are measured using quotes in active market
(3) The following table shows the valuation technique and key input used for Level 2:

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Financial Instrument Key Inputs used
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Financial Instrument	KeyInputs used

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

261

Annual Report 2022-23

Notes forming part of the consolidated financial statements

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

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(` in crores)
As at As at
March 31, 2023 March 31, 2022
Carrying
Carrying amount Fair value Fair value
amount
Financial assets
Financial assets at amortised cost:
- Trade receivables 3,332.56 3,332.56 2,653.12 2,653.12
- Cash and cash equivalents 282.39 282.39 266.54 266.54
- Bank balances other than cash and cash equivalents 426.88 426.88 333.99 333.99
- Loans 374.89 374.89 367.06 367.06
- Other financial assets 568.22 568.22 627.92 627.92
Financial liabilities
Financial liabilities at amortised cost:
- Borrowings 973.82 973.82 1,302.43 1,302.43
- Trade payables 5,328.92 5,328.92 4,423.44 4,423.44
- Other financial liabilities 120.50 120.50 99.35 99.35
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Note:

The fair values of the financial assets and financial liabilities included above have been determined in accordance with generally accepted pricing models.

42 Legal / Statutory Reserve

As per Article 106 of the Commercial law of 1974 in the Sultanate of Oman, 10% of the Subsidiary Companies Net Profit is required to be transferred to a non-distributable legal reserve until the amount of the legal reserve equals one-third of the subsidiary’s issued share capital. Similarly, as per the provisions of the UAE Commercial Companies Act, 10% of the Subsidiary Companies Net Profit is required to be transferred to a non-distributable statutory reserve until the amount of the statutory reserve equals 50% of the subsidiary’s paid up share capital. During the year, the respective subsidiaries had incurred losses, hence no profit had been transferred to the legal reserve.

43 Himachal Sorang Power Limited:

NCC Infrastructure Holdings Limited (NCCIHL), a subsidiary during the year 2012-13, entered into a Share Purchase Agreement (SPA) with TAQA India Power Ventures Private Limited (TAQA), (formerly TAQA Jyothi Energy Ventures

Private Ltd) for sale of 4,144,300 equity shares of ` 10.00 each and 7,858,900 Zero Coupon Irredeemable Fully Convertible Debentures held by it in Himachal Sorang Power Limited (HSPL).

In terms of SPA, the sale of shares to be effected in two tranches viz initial sale and subsequent sale. Initial sale shares transferred and consideration realised in 2012-13. Against Subsequent sale of shares amount partly received in advance and shares transfer completed on January 22, 2019. Balance consideration receivable ` 9.00 crores against subsequent sale shown under Other Receivables.

During the year 2012-13, the management has estimated and made a provision of 51.96 crores towards its obligation to meet cost over runs, contingencies, etc. During 201415, TAQA invoked bank guarantee of 36.00 crores, submitted by NCCIHL as security and adjusted this with provision. During 2017-18 Receivable amounts on account of advances paid to HSPL for expenses ` 14.08 crores

262

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

adjusted with this provision. The net provision amount of ` 1.88 crores presented under ‘‘Other Current Liabilities”.

During the year 2014-15, TAQA and HSPL had invoked arbitration proceedings under the SPA, in Singapore International arbitration centre, detailing various disputes/ claims aggregating to 409.90 crores which is revised to 671.43 crores during the Arbitration Process. NCCIHL denied all the disputes/claims in its entirety and raised Counter Claims aggregating to 210.34 crores (subsequently revised to 78.50 crores). The Learned Arbitral Tribunal has while quashing the claims of TAQA, has allowed certain claims of HSPL amounting to ` 108.38 crores (after adjustments of receivables) together with interest commencing on varied dates.

TAQA/HSPL have filed a petition in Delhi High Court in Mar 2018 for enforcement of SIAC Award dt. January 24,2018 (First Award). NCCIHL filed an application stating Delhi High Court does not have jurisdiction since NCCIHL does not have any assets in Delhi. While several applications were made before the Court and Orders were also made on them, nothing concrete has been heard thus far on the main enforcement matter. The jurisdiction issue was heard substantially and the next hearing is scheduled on May 13, 2022. In the meanwhile, by way of an Interim Order dt. March 13, 2018, NCCIHL is restrained to sell, alienate, mortgage, or create any third-party interest in its assets, except in the ordinary course of business.

Further, TAQA/HSPL and NCCIHL have filed setting aside (of award) applications in Singapore High Court in April and June 2018 respectively. In Jan 2019, Singapore High Court has dismissed setting aside applications of both parties and grounds for setting aside were provided in November 2019. Both parties have challenged the Singapore High Court’s decisions in the Court of Appeal, Singapore. The applications in Court of Appeal were filed in February 2019 and by way of Judgement/Order dt. October 29, 2020, NCCIHL’s appeal was dismissed and TAQA/HSPL’s appeal was allowed in part and ordered for remission of part of Award to the Arbitral Tribunal for its decision. The hearings on this remitted matter are concluded and the decision on the same is awaited.

In the meanwhile, NCCIHL has invoked another arbitration in December, 2018 under the SIAC rules against HSPL/ TAQA for Incentive Payments payable under the provisions of Securities Purchase Agreement (SPA). TAQA has raised counter claims against NCCIHL and NCC (for payment of

awarded amount to HSPL from Award dt. January 24, 2018) and filed an application with the Arbitral Tribunal for joinder of NCC to the arbitration. The Tribunal has agreed for Joinder of NCC. By the Award dt. February 04, 2022 (Second Award), the Arbitral Tribunal has rejected claims of both the parties and only certain costs were awarded to the parties.

NCCIHL has also filed an application in National Company Law Tribunal (NCLT) at Chennai for recovery of 9.00 Crores (plus interest) from TAQA, as that portion of the Award dt. January 24, 2018 has become final since it was not challenged by TAQA in the Singapore High Court. NCLT has dismissed NCCIHL’s application citing couple of reasons including the reason that there are pending disputes between the parties. NCCIHL has filed an appeal in NCLAT (Chennai) and the matter is listed on July 20, 2022. NCCIHL has also filed a petition in Madras High Court against TAQA, for enforcement of Award for this 9.00 crores and after hearing both the parties the Court on January 11, 2022, has allowed this petition and pronounced a judgement stating that the Award is enforceable as a decree of this Court. TAQA has filed an appeal in the Supreme Court and the hearing is tentatively listed for May 10, 2023.

During the current Financial Year 2022-23, the Management reviewed various items of the claims of both the parties and also considering the in-house legal experts opinion, assessed the likely outcome of the claims and basing on such assessments a further amount of ` 14.37 crores is provided under “Other Current Liabilities” in addition to the provision made in previous years.

44 In respect of step subsidiary Savitra Agri Industrial Park Private Limited, certain cases were filed by the petitioners in Honourable High Court of Andhra Pradesh for setting aside alienation of land at Sompeta by Andhra Pradesh Industrial Corporation, setting aside Environmental Clearance for the project and certain other matters. The step subsidiary is a respondent to in all the cases. Besides these, certain individuals have filed cases in Civil Court for permanent injunctions restraining the subsidiary from possession and enjoyment of land admeasuring 1.78 acres. The matters are subjudice. The Management at this juncture do not foresee any adjustments to the carrying value of assets and liabilities on account of these cases at this juncture.

The step subsidiary has planned to develop Aquaculture in own lands (Patta) in Benkili-Baruva Village, Sompeta Mandal Jurisdiction. Accordingly, it has filed application

263

Annual Report 2022-23

Notes forming part of the consolidated financial statements

(Form-B) on February 24, 2018, for registration of Fresh Water Aquaculture Farm in 197.00 acres. A Sub-Committee consisting of the officials from Revenue, Irrigation, Ground Water and Agriculture Departments headed by JD-Fisheries visited the project site and made physical inspections. NOCs from all the individual departments have been received except from Agriculture Department which is also expected shortly.

44.A In respect of subsidiary Nagarjuna Contracting Co. L.L.C., as at March 31, 2023, the Entity has a law suit with the customer and the matter is pending before the courts. During the financial year 2018-19, the Management

has decided to cease the operations of the Entity, as the going concern assumption is not valid for the Entity, the financial statements have been prepared on the basis of the accounting convention of realisable /settlement values of assets and liabilities.

45 During the previous year ended March 31, 2022, NCC Limited had sold its entire stake in the Subsidiary company, NCC Vizag Urban Infrastructure Limited for a consideration amounting to 199.50 crores. On disposal of the subsidiary, gain of 191.19 crores is recognised as exceptional item in the consolidated Statement of Profit and Loss.

264

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

46 Service concession arrangement:

Below service concession arrangement has been accounted under financial asset model

Project Name	Orai-Bhognipur Infrastructure Limited
Type of Project	BOT(Annuity)
Concessionperiod	17.5years(from 19thOctober 2006 to 19thApril 2024, Including2.5years of construction)
Annuity collection	Fixed semi - annuity based :-`44.82 crores (in the month of April and October in a financialyear)
Investment grant from concession grantor	Nil
Project Description	Constructing, Operating and Maintaining road highway from 220 km to 255 km (i.e. 30 km)on NH-25 and from 421.20 to 449 km on NH-2 on Orai-Bhognipur in Uttar Pradesh.
Infrastructure return at the end of concessionperiod	Yes
Renewal and termination options	Nil

47 Segment Reporting:

a) Business segment: The Group has considered business segment as primary segment for disclosure. The Group's operations predominantly consist of construction / project activities, which in the context of Ind AS 108 "Operating Segments" is considered the only business segment.
b) Geographical segment: The Group has operations within India and outside India and the disclosures in respect of the geographical segment are given below:

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(` in crores)
Geographical Segment Revenue for the year ended Segment assets as at
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Geographical Segment	Revenue for theyear ended	Segment assets as at*

Within India
March 31, 2023	15,458.30	2,162.53
March 31, 2022	11,065.13	1,834.33
Outside India
March 31, 2023	95.11	235.25
March 31, 2022	72.83	236.17

Segment assets represents non current assets excluding financial assets and deferred tax asset.

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Annual Report 2022-23

Notes forming part of the consolidated financial statements

48 Earnings per share:

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Year Ended Year Ended
March 31, 2023 March 31, 2022
Net Profit after tax available for equity shareholders (in crores) 609.20 482.41 Weighted Average number of equity shares for Basic EPS (Nos) 623,389,054 609,846,588 Weighted Average number of equity shares for Diluted EPS (Nos) 623,726,137 614,097,235 Face value per share () 2.00 2.00
Basic EPS () 9.77 7.91 Diluted EPS () 9.77 7.86
49 Corporate Social Responsibility: (in crores) March 31, 2023 March 31, 2022 a) Gross amount required to be spent by the Company during the year 8.65 11.03 b) Amount approved by the Board to be spent during the year 8.65 11.04 c) Amount spent during the year ended: ( in crores)
March 31, 2023 March 31, 2022
Particulars Yet to be Yet to be
In cash Total In cash Total
paid paid
i) Construction/acquisition of any asset - - - - - -
ii) On purposes other than (i) above 8.36 - 8.36 8.90 - 8.90
Total 8.36 - 8.36 8.90 - 8.90
d) Details related to spent / unspent obligations: (` in crores)
Particulars March 31, 2023 March 31, 2022
i) Spent for CSR activities during the year 3.46 1.36
ii) Contribution 4.90 7.54
iii) Unspent amount in relation to:
- On going project 0.29 2.14
- Other than ongoing project - -
Total 8.65 11.04
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Unspent amount of 0.29 crores (31.03.2022: 2.14 crores is deposited in the separate bank account on April 30, 2022) deposited in the separate bank account on April 29, 2023.

266

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

e) Others:

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Particulars March 31, 2023 March 31, 2022
i) Reason for shortfall The shortfall of CSR expenditure is Identification of the Govt. schools and
on account of non identification of colleges for implementation of the project
activities by District Authorities. in the State of Uttar Pradesh was delayed
because of the state election.
ii) Nature of CSR activities Rural Development, Education, Rural Development, Education, Health
Health care and Skill development. care and Skill development.
iii) Details of related party transactions in
relation to CSR expenditure as per relevant
Accounting Standard
Contribution to NCC Foundation in relation to 3.16 5.41
CSR expenditure
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50 The exceptional items for the year ended March 31, 2023 is ` 14.37 crores towards provision made on obligation on sale of investment.

The exceptional items for the year ended March 31, 2022 is ` 203.57 crores, pertains to Profit on sale of stake in the Subsidiary Company, NCC Vizag Urban Infrastructure Limited, additional area allotted to NCC Limited on approval of revised plan as per the contractual terms in relation to Investment property under construction, provision made for impairment of investment and provision made on obligation on sale of investment.

51 Consequent to the encashment of Bank Guarantees (BGs) of 343.10 crores in the year 2017-18 by one of the customer (Sembcorp Energy India Limited), NCCL invoked the arbitration clause and submitted a claim of 1,571.41 crores towards refund of retention money, refund of BGs amount, payment of pending bills, additional works done and cost incurred on prolongation of the project by the customer. Against which, the customer has filed a counter claim of ` 1,071.46 crores towards liquidated damages, turbine replacement, balance works, etc. As per the management assessment and legal advise, no provision is required for the subject matter and arbitration proceedings are expected to be completed within a year.

267

Annual Report 2022-23

Notes forming part of the consolidated financial statements

52 Deferred tax assets (Net):

Significant components of deferred tax (liabilities) / assets for the year ended March 31, 2023:

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Significant components of deferred tax (liabilities) / assets for the year ended March 31, 2023: (` in crores)
As at As at
March 31, 2023 March 31, 2022
Deferred tax (liabilities) / assets in relation to:
Property, plant and equipment (3.17) (5.72)
Provision for doubtful trade receivables, contract assets, advances and others 38.18 50.41
Provision for employee benefits 35.25 32.68
MAT Credit entitlement 13.31 9.11
Deferment in recognisition of income (22.22) (22.22)
Total 61.35 64.26
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52.1 Unrecognised deductible temporary differences, unused tax losses and unused tax credits:

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52.1 Unrecognised deductible temporary differences, unused tax losses and unused tax credits: (` in crores)
As at As at
March 31, 2023 March 31, 2022
Deductible temporary differences, unused tax losses and unused tax credits
for which no deferred tax assets have been recognised are attributable to the
following:
- Long-term / Short-term capital loss 323.92 388.35
- Unused tax credits 105.61 123.09
Total 429.53 511.44
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53 Amounts included in contract liabilities at the beginning of the year recognised as revenue in the current year of 859.94 crores (31.03.2022: 582.05 crores).

Change in the contract assets and contract liabilities as at March 31, 2023 from March 31, 2022 is on account of increase in operations of the Company.

54 Reconciling the amount of revenue recognised in the statement of profit and loss with the contracted price:

55 Performance obligation:

The transaction price allocated to the remaining performance obligations is (excluding non-moving orders) 50,244 crores (31.03.2022: 39,361 crores), which will be recognised as revenue over the respective project durations. Generally the project duration of contracts with customers is ranging 1 to 3 years.

56 The trade receivables and contract assets includes an amount of 122.33 crores (31.03.2022: 189.52 crores) (net of mobilisation advance) relating to Amaravati Capital City projects in Andhra Pradesh. Execution of the work / payment in these projects has been slow since May, 2019. Management based on internal assessments and discussions with agencies is confident of recovering these balances.

268

NCC LIMITED

FINANCIAL STATEMENTS

Notes forming part of the consolidated financial statements

57 No transactions made with the Struck off Companies in the current year (31.03.2022: ` Nil).
58 Previous period’s figures have been regrouped wherever necessary to conform to current period's presentation.

59 Approval of financial statements:

The financial statements were approved for issue by the Board of Directors on May 26, 2023.

For S.R. BATLIBOI & ASSOCIATES LLP

For and on behalf of the Board

ICAI Firm Registration No. 101049W/E300004 CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA

Partner Membership No. 102328

K. KRISHNA RAO

E.V.P (F&A) / CFO

A.A.V. RANGA RAJU

Managing Director / CEO (DIN No: 00019161)

M.V. SRINIVASA MURTHY

Company Secy. & Sr. E.V.P (Legal)

A.G.K. RAJU

Executive Director (DIN No: 00019100)

Hyderabad, May 26, 2023

269

Annual Report 2022-23

Extent of shareholding (In percentage)	80%	62.84%	100%	100%	64.02%	51%	51%	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%
Profit/ (Loss) after Taxation	44.04	(14.93)	-	-	9.94	52.51	-	-	-	-	-	-	-	-	-	-	-	-
Provision for taxation	4.96	-	-	-	0.16	17.77	-	-	-	-	-	-	-	-	-	-	-	-
Profit/ (Loss) before Taxation	49.01	(14.93)	-	-	10.09	70.28	-	-	-	-	-	-	-	-	-	-	-	-
Turnover	361.53	0.48	-	-	89.64	1,779.61	-	-						-	-	-	-	-
Investments	115.11	441.41	-	22.68	-	-	-	-						-	-	-	-	-
Total Assets	607.08	457.39	0.05	22.70	210.16	464.44	0.01	62.95	1.83	7.55	1.84	1.76	1.00	1.76	2.30	5.39	1.42	0.02
Total Equity & Liabilities	607.08	457.39	0.05	22.70	210.16	464.44	0.01	62.95	1.83	7.55	1.84	1.76	1.00	1.76	2.30	5.39	1.42	0.02
Total Liabilities	224.54	134.57	-	5.00	30.34	424.22	0.25	-	-	-	-	-	-	-	-	-	-	-
Other Equity	132.54	(386.67)	-	(0.20)	166.48	40.02	(0.33)	62.83	1.78	7.45	1.79	1.71	0.95	1.71	2.20	5.29	1.37	0.01
Share Capital	250.00	709.49	0.05	17.90	13.34	0.20	0.09	0.12	0.05	0.10	0.05	0.05	0.05	0.05	0.10	0.10	0.05	0.01
Reporting currency	INR	INR	INR	INR	INR	INR	INR	INR	INR	INR	INR	INR	INR	INR	INR	INR	INR	INR
The Date since when subsidiary was acquired	8-Dec-2006	27-May-2005	29-Sep-2010	28-Nov-2011	31-Mar-2006	1-Jun-2016	25-Dec-2017	17-Feb-2017	13-Feb-2007	13-Feb-2006	12-Feb-2007	17-Feb-2007	15-Mar-2007	12-Feb-2007	13-Feb-2006	13-Feb-2006	13-Feb-2007	11-Sep-2012
Name of the Subsidiary	NCC Urban Infrastructure Limited	NCC Infrastructure Holdings Limited	Samashti Gas Energy Limited	NCC Infra Limited	OB Infrastructure Limited	Pachhwara Coal Mining Private Limited	Talaipalli Coal Mining Private Limited	Savitra Agri Industrial Park Private Limited	CSVS Property Developers Private Limited	Dhatri Developers & Projects Private Limited	JIC Homes Private Limited	M A Property Developers Private Limited	Mallelavanam Property Developers Private Limited	Sushanti Housing Private Limited	Sushrutha Real Estate Private Limited	Sushanti Avenues Private Limited	Vera Avenues Private Limited	NCC Urban Ventures Private Limited
Sl. No.	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18

270

NCC LIMITED

STATUTORY REPORTS

Extent of shareholding (In percentage)	100%	100%	100%	100%	100%	100%
Profit/ (Loss) after Taxation	-	(9.30)	(0.12)	-	-	-
Provision for taxation	-	-	-	-	-	-
Profit/ (Loss) before Taxation	-	(9.30)	(0.12)	-	-	-
Turnover	-	45.61	-	-	-	-
Investments	-	3.70	0.25	-	-	-
Total Assets	0.02	65.15	279.37	-	-	3.42
Total Equity & Liabilities	0.02	65.15	279.37	-	-	3.42
Total Liabilities	-	67.92	255.48	-	-	-
Other Equity	0.01	(276.37)	(366.23)	(2.24)	(0.67)	(3.28)
Share Capital	0.01	273.60	390.12	2.24	0.67	6.70
Reporting currency	INR	OMR	USD	AED	AED	KWD
The Date since when subsidiary was acquired	11-Sep-2012	17-Jan-2007	27-Apr-2006	7-Jul-1997	20-Jun-2005	10-Jan-2017
Name of the Subsidiary	NCC Urban Homes Private Limited	Nagarjuna Construction Company International L.L.C.	NCC Infrastructure Holdings Mauritius Pte Limited	Al Mubarakia Contracting Co. L.L.C.	Nagarjuna Contracting Co. L.L.C.	NCCA International Kuwait General Contracts Company L.L.C.
Sl. No.	19	20	21	22	23	24

271

Annual Report 2022-23

	Profit/Loss for the year Considered in consolidation	-	-	-	-	-		0.24	10.47
Net worth	attributable to shareholding as per latest audited Balance Sheet	12.44	0.22	-	-	-		23.28	87.97
	Reason for non- consolidation	NA	NA	NA	NA	NA	NA	NA	NA
	Description of significant influence	Significant influence due to % of Share capital	Significant influence due to % of Share capital	Significant influence due to % of Share capital	Significant influence due to % of Share capital	Significant influence due to % of Share capital	Significant influence due to % of Share capital	Significant influence due to % of Share capital	Significant influence due to % of Share capital
by	%	33.33%	23.35%	49.00%	50.00%	44.22%	47.80%	26.00%	40.00%
of Associate	Amount of Investment	3.46	6.91	0.17	-	0.24	-	22.68	71.50
Shares	No.	8,643,036	6,549,892	147	1,000,000	3,808,757	3,388,040	2,268,000	13,344,973
	Latest audited Balance Sheet Date	31-Mar-23	31-Mar-23	31-Mar-23	31-Mar-23	31-Mar-23	31-Mar-23	31-Mar-23	31-Mar-23
	Name of associates	Brindavan Infrastructure Company Limited	Paschal Form Work (India) Private Limited	Nagarjuna Facilities Management Services L.L.C.	Himalayan Green Energy Private Limited	Apollonius Coal and Energy Pte. Ltd.	Pondicherry Tindivanam Tollway Private Limited	Ekana Sportz City Private Limited	Varapradha Real Estates Private Limited
	S. No.	1	2	3	4	5	6	7	8

272

NCC LIMITED

REGIONAL OFFICES

1. AHMEDABAD

211-212, Sarthik - II Opp: Rajpath Club Sarkhej - Gandhinagar Highway Ahmedabad - 380 054 T : +91 79 26871478/69 E : [email protected]

6. LUCKNOW

House No: C-2-183 Ansal Golf City Shaheed Path Near SJ International School Lucknow - 226 030 T : +91 88 60075625 E : [email protected]

2. BENGALURU

301, Batavia Chambers 8, Kumara Krupa Road Kumara Park East, Bengaluru -560 001 T : +91 80 22258991/ 3309 E : [email protected]

3. CHENNAI

2A, 2nd Floor, J K Towers, Old No. 79, New No. 28, Bazullah Road, Opp. State Bank of India, T Nagar, Chennai - 600 017 T : +91 44 28143051/52 E : ro.chenn ~~ai@ncc~~ ltd.in

7. MUMBAI

A-914 kanakia wall street Andheri Kurla Road Chakala Andheri (East) Mumbai - 400 093 T : 022-62988000 E : [email protected]

8. PATNA

A/3, Road No.”A” 2nd Floor, Vivekanand Park Boring Patliputra Road Patna - 800 013 T : 06122571196 E : [email protected]

4. DELHI

PHD House 4/2 Siri Institutional Area August krant ~~i Marg~~ N ~~ew Delhi -110 016~~ T : +91 11 40325300 E : bldgs.rodelhi @nccltd.in

9. PUNE

Purushottam Plaza 3rd Floor, Office No.3 Baner-Balewadi Road, Pune - 411 045 T : 020-46504200 E : [email protected]

5. KOLKATA

ECO Space Business Park Block No-4A, 5th Floor New To ~~wn Action Area –~~ II Kolkata - 700 156 T :+ 91 33 40298888 E : [email protected]

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w w w . n c c l i m i t e d . c o m

AI assistant

NCC Limited — AGM Information 2023

62440_rns_2023-08-14_38e3109a-7d67-4096-a5e9-e95dc4a6b182.pdf

Code: 500294

Sub: Submission of Annual Report for the Financial Year 2022-23 along with the Notice of AGM

NCC LIMITED

Dear Members,

Invitation to attend the 33[rd] Annual General Meeting on Friday, 8[th] September 2023, at 3.00 P.M (IST)

NCC LIMITED

N O T I C E

A. ORDINARY BUSINESS:

5) To ratify the remuneration of the Cost Auditors for the financial year ended 31[st] March 2023

Registered Office

N O T E S:

ANNEXURE TO NOTICE

Item No. 5

Item No. 6

Registered Office

INSTRUCTIONS FOR REMOTE E-VOTING

Procedure to login through websites of Depositories

Procedure to login through their demat accounts / website of Depository Participant

INSTRUCTIONS FOR PARTICIPATING IN THE AGM THROUGH VC/OAVM

5. REGISTRATION AS A SPEAKER FOR THE AGM

TABLE OF CONTENTS

ENRICHING EXPANDING PROGRESSING

ABOUT THE COMPANY

FY23 HIGHLIGHTS

OUR MAJOR CLIENTS

MESSAGE FROM THE FOUNDER AND CHAIRMAN EMERITUS

Dear Shareholders,

Dr. AVS Raju

VISION

MISSION

VALUES

MESSAGE FROM THE CHAIRMAN

Dear Shareholders,

PERFORMANCE DURING FY23

GOVERNMENT OF INDIA’S POLICY INITIATIVES

ESG INITIATIVES: BUILDING A SUSTAINABLE FUTURE

CONCLUDING REMARKS

REVIEW BY THE MANAGING DIRECTOR

Dear Shareholders,

FINANCIAL PERFORMANCE:

ORDER BOOK:

ORDER BOOK HIGHLIGHTS:

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG):

GOING FORWARD/ OUTLOOK:

BOARD OF DIRECTORS

Mr. Hemant M Nerurkar

Mrs. Renu Challu

Mr. Utpal Sheth Non-executiveDirector

HOW WE CREATE VALUE

FINANCIAL CAPITAL

MANUFACTURED CAPITAL

INTELLECTUAL CAPITAL

VALUE CREATED HIGHLIGHTS:

VALUE CREATED HIGHLIGHTS:

VALUE CREATED HIGHLIGHTS:

SOCIAL AND RELATIONSHIP CAPITAL

VALUE CREATED HIGHLIGHTS:

NATURAL CAPITAL

VALUE CREATED HIGHLIGHTS:

HUMAN CAPITAL

VALUE CREATED HIGHLIGHTS:

OUR DIVISIONS

ORDER INFLOW & ORDER BOOK STATUS

KEY PERFORMANCE INDICATORS

BOOK VALUE PER SHARE ( ` )

HUMAN CAPITAL

A ROBUST TEAM OF QUALIFIED EXPERTS

A FAMILY-LIKE WORKPLACE

LEARNING AND DEVELOPMENT INITIATIVES

MUTUAL GROWTH

BUILDING A STRONG FUTURE TOGETHER

QUALITY MANAGEMENT SYSTEMS

DIGITAL AND IT INITIATIVES

NEXT-GENERATION ERP IMPLEMENTATION

ENHANCED ANALYTICS FOR STRATEGIC INSIGHTS

IMPROVED ESTIMATION WITH MARKET-LEADING TOOLS

STREAMLINED BID MANAGEMENT THROUGH AUTOMATION

NCC Limited AGM Information 2023