Ahluwalia Contracts

(India) Ltd

Strengthening health infrastructure.

Redefining the social landscape.
Navigating the new normal.

Ahluwalia Contracts (India) Limited

41st Annual Report 2019-20
CORPORATE INFORMATION
BOARD OF DIRECTORS BANKERS
Mr. Bikramjit Ahluwalia, Managing Director Indian Bank
Mr. Shobhit Uppal, Dy. Managing Director Bank of Maharashtra
Mr. Vikas Ahluwalia, Whole Time Director Axis Bank
Mr. Sanjiv Sharma, Whole Time Director IDBI Bank Ltd

Mr. Arun Kumar Gupta, Independent Director HDFC Bank Ltd

IDFC Bank Ltd
Dr. Sushil Chandra, Independent Director
Punjab & Sind Bank
Dr. Mohinder Sahlot, Independent Director
RBL Bank Limited
Mr. Rajendra Prashad Gupta, Independent Director
State Bank of India
Yes Bank Ltd
COMPANY SECRETARY / COMPLIANCE OFFICER
Union Bank of India
Mr.Vipin Kumar Tiwari
Indusind Bank
www.acilnet.com
cs.corpoffice@acilnet.com ICICI Bank Ltd

CHIEF FINANCIAL OFFICER (CFO) REGISTERED /CORPORATE OFFICE

Mr. Satbeer Singh A-177, Okhla Industrial Area,

www.acilnet.com Phase-I, New Delhi-110 020
Satbeersingh@acilnet.com Phone : 011-49410502, 517 & 599
Fax : 011-49410553 & 49410575
AUDITORS
M/s. Amod Agrawal & Associates Website: www.acilnet.com
Chartered Accountants
G-3, Block-C, Kailash Apartment, Email ID: mail@acilnet.com
Lala Lajpat Rai Marg,
New Delhi-110 048
CONTENTS
Board of Directors 02
Management Discussion and Analysis Report 03
Director’s Report 11
Report on Corporate Governance 57

FINANCIAL STATEMENTS (STANDALONE)

Independent Auditor’s Report 76
Balance Sheet 84
Statement of Profit and Loss 85
Statement of Cash Flow 86
Statement of Changes in Equity 87
Notes 88

FINANCIAL STATEMENTS (CONSOLIDATED)

Independent Auditor’s Report 139

Balance Sheet 144
Statement of Profit and Loss 145
Statement of Cash Flow 146
Statement of Changes in Equity 147
Notes 148

Notice 203
 Board of Directors

Mr. Bikramjit Ahluwalia

Chairman & Managing Director

Mr. Shobhit Uppal Mr. Vikas Ahluwalia Mr. Sanjiv Sharma

Dy. Managing Director Whole-Time Director Whole-Time Director

Mr. Arun Kumar Gupta Dr. Sushil Chandra Dr. Mohinder Sahlot Mr. Rajendra Prashad Gupta
Independent Director Independent Director Independent Director Independent Director

2 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Management Discussion
and Analysis Report
ECONOMIC OVERVIEW INDIAN ECONOMIC OVERVIEW
GLOBAL ECONOMY The Indian economy witnessed a cyclical slowdown in FY
Global economic growth continued to remain sluggish 2019-20 led by weak private consumption expenditure,
throughout FY 2019-20. Elevated US-China trade contraction in manufacturing, sluggish investments and slow
uncertainties, declining manufacturing activity and subdued credit growth. The Government of India addressed these
demand in key markets adversely impacted the economic cyclical challenges by announcing a series of measures,
activities. Further, crude oil prices remained volatile, while the RBI supported with monetary policy rate cuts
reflecting evolving demand-supply conditions and geopolitical and infusing liquidity into the economy. The Government
concerns. Although there were intermittent favorable news focused on structural policies to encourage investments such
on US-China trade negotiations, and diminished concerns as reduction of corporate tax rates, removal of the dividend
of a no-deal Brexit, the economic growth weakened further distribution tax, reduced income tax rate, among others. It
owing to the massive COVID-19 outbreak towards the end of announced higher spending on long-term initiatives such as
the year. The global output growth in 2019 was registered at infrastructure, rural roads, irrigation, and transportation.
2.9%, slowest since the global financial crisis of 2009. There was a strong hope of growth revival in the last quarter
The various isolating measures to control the spread of of the current fiscal. However, the inopportune outbreak of
the pandemic resulted in economic disruptions across the coronavirus (COVID-19) pandemic made this difficult in the
world. Governments and Central banks responded to the near to medium-term. Overall economic slowdown combined
crisis promptly by implementing various monetary and fiscal with the COVID-19 crisis at the end of the year led the GDP
support tools. The growth in advanced economies declined growth for FY 2019-20 to plunge to 4.2% as compared to
from 2.2% in 2018 to 1.9% in 2019. While the Emerging 6.1% in FY 2018-19.
Market and Developing Economies (EMDE) also saw a drop in A series of nationwide lockdowns were imposed by the
growth from 4.5% in 2018 to 3.7% in 2019. Government to curb the transmission, which brought
According to the International Monetary Fund (IMF) estimates, economic activities to a halt. Supportive monetary measures
the world GDP is estimated to grow negatively at (4.9)% in such as reduction of repo rates, lending to MSMEs and
2020 and rebound in 2021 with a modest uptick to 5.4%. enabling flexibility for banks as well as delaying classification
Stringent containment measures and social distancing of commercial real estate loans, are expected to provide relief
policies have led to a sharp contraction in economic activities to these sectors. Additionally, the Government announced a
and growth prospect of countries worldwide. However, it is `20 trillion stimulus package in May 2020, to help revive
expected that the strong policy support and fiscal reforms the economy from the turbulent conditions caused by the
will enable strong and sustainable growth recovery once the lockdown. Focusing on five pillars i.e. economy, infrastructure,
pandemic fades. system, demography and demand, this measure aims to
make India more self-reliant and competitive.
Post the lockdown, the economy is exposed to various
risks such as weakened export demand, reduced investor
confidence and non-availability of raw materials. The IMF
projects India’s GDP growth to shrink by (4.5)% in 2020
and rebounding at 6.0% in 2021. While there is slowdown
According to the International in the near-term with the challenging situation caused by
the outbreak, domestic demand will rebound strongly once
Monetary Fund (IMF) estimates,
the pandemic passes and normalcy is restored. Moreover,
the world GDP is estimated to significant measures taken by the RBI and the Government
grow negatively at (4.9)% in 2020 are expected to restore consumer and investor confidence.
and rebound in 2021 with a
modest uptick to 5.4%.

Annual Report 2019-20 3

CONSTRUCTION INDUSTRY OVERVIEW construction projects provide a huge impetus to the rising
GLOBAL CONSTRUCTION SECTOR Indian construction industry. Initiatives by the Government,
including creating 100 smart cities, world-class highways,
The industry experienced slowdown owing to liquidity crunch,
shipping infrastructure, railway expansion, housing and urban
weak economic activities and subdued consumer sentiments.
development has attracted large investments through FDI,
The unexpected COVID-19 crisis and the associated
private players, and Government budgets.
lockdown towards the end of 2019-20, added to the industry
woes. This led to a widespread disruption and temporary (Source: KPMG Research Report)
shut downs of construction sites across major countries. As
a result, the forecast growth for the construction industry As the Government plans to more than double the investment
in 2020 has been revised downward from 3.1% to 0.5%, in infrastructure sector to about `100 Lakh Crore over the
according to a Global Data report. Moreover, in the near-term, next five years, the construction companies are likely to
the industry will be heavily affected by the expected delay witness significant opportunities with key segments being
or cancellation of planned projects. With weak economic highways, railways, ports, urban infrastructure, metros and
activity and unemployment, the residential sector also is likely airports. In addition, the Government’s focus on healthcare
to struggle despite low interest rates and direct Government centers and educational institution are likely to push growth
support. of the construction industry.
In the railways segment, besides the core railway capex on
(Source: https://www.worldcement.com/special-reports/03042020/
globaldata-reports-on-the-global-construction-outlook-in-the-midst-of-covid-
doubling, new lines, signaling, electrification etc., various
19-outbreak/) station redevelopment is expected to provide significant
opportunities to the construction companies. With `72,216
It is expected that the Governments across economies
Crore being allocated to the Ministry of Railways, in the
will aim to increase spending on infrastructure projects
Union Budget 2020-21, the Government has set clear sights
as soon as normalcy returns, in order to reinvigorate the
to provide a fillip to the energy infrastructure and thereby
industry. However, with cash incentives to the economically
provide investment opportunities worth `21 Lakh Crore for
weaker segment, Governments’ capability to invest in the
the sector over the next decade.
infrastructure segment is likely to be constrained.
Between FY 2013-14 and FY 2018-19, India witnessed a
The future of the global construction industry looks positive in
highway construction growth of 20.57% on a CAGR basis,
the long-term with opportunities in residential, non-residential,
witnessing 10,855 kms of highways being built. Between
and infrastructure segment. The industry is expected to
2019 and 2023, NHAI is expected to generate an aggregate
reach an estimated USD 10.5 Trillion by 2023. Emerging
revenue of around `1 Lakh Crore. With the construction of
trends which impact the dynamics of the construction
more highways, it is only likely to boost the social infrastructure
industry include increasing demand for sustainable green
of the country, providing a massive boost to infrastructure
construction to reduce carbon footprint and usage of cost-
coming up in the vicinity of these highways.
efficient raw material. Emerging economies are expected to
remain the largest market fueled by increasing urbanisation, (Source: Indian Brand Equity Foundation (IBEF)
growing population, higher expenditure on infrastructural
development, and affordable housing projects. During the year, the infrastructure and construction sectors
faced headwinds from the COVID-19 pandemic. The lockdown
Source: https://www.researchandmarkets.com/reports/4439921/growth- imposed across the country led to low consumer sentiments,
opportunities-intheglobalconstruction#:~:text=The%20future%20of%20
the%20global,4.2%25%20from%202018%20to%202023.) loss of income as well as the diversion of Government funds
towards COVID-19 management. Investment in capital
INDIAN CONSTRUCTION INDUSTRY projects drives the demand side of the construction sector,
The construction industry in India is the second largest and hence the impact of the COVID-19 pandemic on Gross
employer after agriculture, and it is therefore, critical to the Value Added (GVA) and employment could be significant in
country’s economic stability. With an industry size of `10.5 the near to long term.
Trillion, it accounts for around 8% of the nation’s GDP and
employs close to 57.5 million people. The Governmental

4 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Management Discussion and Analysis report (Contd.)

Growth drivers for the Indian construction industry BUSINESS OVERVIEW

Growing Infrastructure Push Ahluwalia Contracts (India) Limited (ACIL) is one of India’s
The infrastructure sector has become the biggest focus area leading construction companies with over 4 decades of
for the Government. India plans to spend USD 1.4 Trillion on experience. Having a track record of delivering iconic and
infrastructure during 2019-23 for sustainable development challenging turnkey projects in a time bound manner while
of the country. Government initiatives such as construction of maintaining quality, the Company is a trusted player in the
concrete roads and highways through the Bharatmala Project, segment. The Company’s competencies in the field is backed
development of rural roads under the Pradhan Mantri Gram by its skilled manpower resources, technical knowledge and
Sadak Yojana and metro network in many cities are expected experience, investments in advanced construction and IT
to be crucial in driving the industry growth. In the Union technologies, and strong linkages with major channel partners.
Budget 2020-21, the Government has given a massive push This expertise has enabled the Company to move forward in
to the infrastructure sector by allocating `1,69,637 Crores the value chain to target more Engineering, Procurement and
(USD 24.27 Billion) to develop the transport infrastructure. Construction (EPC) projects. ACIL is the first construction
Moreover, the construction sector stands to benefit immensely Company in India to get Integrated Management System
from the National Infrastructure Pipeline (NIP) launched on (IMS) of ISO 9001, 14001 and 18001.
31st December, 2019 with `103 Lakh Crore pipeline. The
The Company has identified certain thrust areas and
projects under NIP include housing, safe drinking water,
strategies for growth. These include leveraging ongoing
affordable energy, healthcare, educational institutes, railway
digitalisation efforts, operational efficiencies, reducing
stations, airports, metro, railway transportation, logistics and
working capital levels, unlocking business values, forays into
warehousing, irrigation projects, among others.
new geographies, innovating business, inorganic growth and
(Source: IBEF) continuing ROE enhancement.

Leveraging on PPP Model ACIL project competencies – The Company has experience
of working on residential, commercial, institutional, corporate
The Government is focused on enhancing the Public-Private
offices, power plants, hospitals, hotels, IT parks, Metro
Partnership (PPP) model for effective liquidity management.
PPP model helps in attracting more private sector investment stations and depots, and automated car parking lots projects
in sectors like roads and highways, electricity, and many for Government and private clients.
more. It ensures easier funding for longer-term infrastructure COMPANY PERFORMANCE
projects. At the same time, it improves accountability and The Company continued its upward march through an
stimulates growth and development of the country. increase in its gross order book witnessing an increase of
‘Housing for All’ Initiative 15.88% over the previous financial year to `12,35,098.81
With initiatives like ‘Housing for All’ and ‘Smart Cities Mission’, Lakhs. The Company’s income from operations increased
the Government of India is working on reducing bottlenecks by 7.42% from `1,75,471.44 Lakhs in FY 2018-19 to
and impeding growth in the infrastructure sector. `1,88,492.69 Lakhs in FY 2019-20. EBITDA witnessed a
An outlay of `27,500 Crores (USD 3.93 Billion) has been dip of 29.32% from `21,648.01 Lakhs in FY 2018-19 to
envisaged under Pradhan Mantri `15,301.59 Lakhs in FY 2019-20. Subsequently, the PAT for
Awas Yojana in Union Budget 2020-21. A total of 15.4 the year decreased by 45.10% from `11,737.93 Lakhs in FY
Million rural homes were constructed in the last five years 2018-19 to `6,443.59 Lakhs in FY 2019-20.
under PMAY-G, and 19.5 Million houses are planned for Margins for the year were, under pressure as the Company
construction in the second phase of FY19-22E. Under incurred a hit on account of a one-off. As a result, EBITDA
PMAY-U, the Government has set a target of building about margin declined 422 basis points to 8.12% and PAT margin
10-11 Million houses by 2022 in developed areas. declined 327 basis points to 3.42%.

Annual Report 2019-20 5

Standalone Financial Performance SAFETY, HEALTH AND ENVIRONMENTAL PERFORMANCE
(` in Lakhs) Safety at work, employee health and environment protection
Particulars FY 2019-20 FY 2018-19 are of utmost importance to the business. The Company
Gross Order Book 12,35,098.81 10,65,837.55 continuously strives for a safety culture by organising various
Income from Operations 1,88,492.69 1,75,471.44
training and awareness programmes throughout the year.
EBITDA 15,3,01.59 21,648.01
Focused on scaling its safety initiative, the Company has
PAT 6,443.59 11,737.93
Earnings Per Share (in `) 9.62 17.52
started using virtual reality devices and training modules
for safety training. Various initiatives have been taken up
Key financial ratios and their development
to digitally monitor record and review all safety and quality
Details FY 2019- FY 2018- Change
20 19 in % related aspects at site.
Debtors Turnover 3.73 3.69 1.08% Further, the Company actively uses its intranet network to
Inventory Turnover 10.22 13.22 -22.69% regularly update employees on latest safety practices. Effective
Interest rate Coverage ratio* 3.46 9.83 -64.80% display of policies, instructions and precautionary measures
Current Ratio 1.54 1.66 -7.23%
through posters and digital boards is also practiced. These
Debt:Equity Ratio** 0.06 0.08 -25.00%
initiatives have substantially reduced work-related incidents
Operating Profit margin (%)*** 8.12 12.34 -34.20%
and enabled the Company in getting ISO 9001:2015, ISO
Net Profit Margin (%) 3.42 6.69 -48.88%
Return on Net Worth (%)# 8.36 17.42 52.01% 14001:2015 and ISO 45001:2018 certifications for Quality,
Environment, and Health & Safety respectively.
Net Profit Margin = Net Profit / Income from operations
Workmen Safety
* Interest coverage ratio as on 31st March, 2020 has
witnessed a dip as compared to 31st March, 2019 due to With construction work involving working in challenging
increase in Mobilisation advance and decrease in PAT levels conditions, the Company stresses on workmen safety.
due to debtor write-offs. The Company in the philosophy of more precaution, lower
accidents. The Company also has a robust SHE management
** Debt equity ratio in both years are very negligible, however,
system comprising commitment to SHE policy and objects,
the repayment of some part of debt during FY 2019-20, led
legal compliances, responsibilities, evaluation of risk,
to an improvement in the overall Debt: Equity Ratio
planning, monitoring, audit and management review. It
***The operating Profit margin, Net Profit margin and return has in place a comprehensive Safety manual and Standard
on net-worth dropped during the FY 2019-20 due to debtor Operating Procedures to prevent accidents. Mock drills are
write-offs and fixed cost incurred during the period owing to conducted to enhance awareness. Promoting a safety-focused
the halts on works because of the NGT ban and approvals, culture has also been of great assistance towards promoting a
cutting ban on saplings and floods in the eastern region of the positive mindset at workplace.
country etc.

Objectives Targets Methodology

Prevent accidents/harmful effects on Achieve zero tolerance for injuries Report and record all major/minor
health incidents
Comply with legislation/codes with
Analyse working conditions at sites respect to safety Constant review and up-gradation of
safety plans/techniques
Constant improvement Provide realistic training at all levels
Appoint nodal officers to address
safety/health concerns
Identify hazards in construction and
take preventive measures

6 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Management Discussion and Analysis report (Contd.)

Health
The Company is dedicated to ensuring the welfare and health of its employees. This ensures higher employee motivation as well
as contributes to enhanced productivity for the Company. ACIL has undertaken multiple preventive measures like ensuring clean
drinking water, regular garbage disposal and pest control to ensure healthy working conditions.
The Company further arranges for availability of adequate health and medical services both at sites and workplace. First aid is
made available and health check-up camps organised. The Company also practices identification of hospital nearby its sites as a
preparedness measure to avoid loss of time in case of emergencies.
The Company ensures all incidents, major or minor, are reported and necessary corrective actions taken. Feedback of employees are
taken on regular basis to sensitise them on their rights.
AWARDS AND RECOGNITION
ACIL’s continuous focus on quality, engineering excellence, health and safety, and environmental concern has won it several awards
during its existence. Key awards won by the Company in FY 2019-20 include the following:

Name of the Certificate Project / Site name Category Year

ET-Now - Star of the Industry Awards Ahluwalia Contracts (India) Limited Best Infrastructure company 2019
of the year - Buildings

ET-Now - Star of the Industry Awards Shri Bikramjit Ahluwalia MD of the year 2019

ET-Now - Star of the Industry Awards Shri Shobhit Uppal Most Influential leader of the 2019
year

GRIHA Exemplary Performance Award Indian Institute of Management, Site Management (during 2019
Nagpur construction)

GRIHA Exemplary Performance Award Indian Institute of Management, Construction Workers 2019
(GRIHA Council) Nagpur Health & Safety (During
Construction) under GRIHA
Rating

HSE Excellence Best CSR Initiative of Ahluwalia Contracts (India) Ltd. Best CSR Initiative of the 2019
the Year 2019 year-2019

Udyog Rattan Award 2019 Shri Bikramjit Ahluwalia Institute of Economics 2019

ET NOW Presents Real Estate Awards Income Tax at Bandra Kurla Complex Commercial Property of the 2019
2019 Year

BAM Honouring the Best in Real Estate PNB, Dwarka Building with Optimal Energy 2019
/ Architecture and Building Technology Consumption
Awards 2019

Annual Report 2019-20 7

RISKS AND CONCERNS
Identifying, managing and monitoring risks is a top priority at ACIL. It is critical to ensuring long-term business sustainability and
maximise value creation for the shareholders. Focused on this, the Company practices the policy of striking the right risk-return
balance. the Company has developed a robust Enterprise Risk Management (ERM) framework which facilitates in early detection
risks. These risks and their impact are regularly reviewed and any rising trend is immediately flagged off for management’s attention
for undertaking appropriate actions.
ACIL’s Risk Management Process

Develop a robust risk

monitoring system at
Identify Strategic, Risk assessment
Strategy development the enterprise level to
Operational, Financial prioritisation as per their
to counter risks maintain systematic
and Compliance risks criticality to businesses
review on mitigation
plans

Liquidity Risk Risk (CAR) Policy, and ESIC insurances to protect itself from
The liquidity crunch has been prevailing in the real estate any financial obligations.
market for over a year, and many owners / developers are Political Risk
financially stressed. The Regulatory compliance by developers A positive business scenario conducive to growth and
to arrange loans for projects is becoming stringent resulting in sustainability is dependent on the political stability of the
delays in financial closures / tie-ups by developers. country. Instable political environment and implementation of
Mitigation: negative policies can bring a slowdown and result in decline
The Company has a well laid down credit policy which it in new projects. This may negatively impact the Company’s
follows meticulously. It practices screening of customer performance.
profiles and their liquidity position before bidding for any Mitigation:
construction contract as well as during execution. It has a India’s democratic system of governance ensures a stable
robust billing and collection system that eliminate issues political scenario and ensures with implementation of policies
relating to liquidity. Stringent adherence to billing schedule where businesses can thrive. The system mandates all
minimises credit exposure and a focused and aggressive political parties to perform for being to be investor friendly.
receivables management system ensures timely collections In the current context, the re-election of the existing Central
through systematic follow-ups with the clients. Besides, the Government with a strong mandate is a precursor to a stable
Company focuses more on Government projects where risk political environment and would facilitate passage of critical
profile is low. bills. The track record of this Government for undertaking bold
Contractual Risk measures, reducing red-tapism and easing business scenario
Contractual obligations in terms of quality, timelines, is noteworthy. Their strong focus on driving infrastructure
protection of confidential information and other specific terms development in the country, evident in their election manifesto,
and conditions are key to EPC orders. Inability to adhere to is a positive sign for the construction industry.
them can attract legal actions, lead to losses and damage the Execution Risk
Company’s goodwill. The Company does business with several large industrial
Mitigation: houses, corporates, institutions and Government Authorities.
The Company employs professional and highly experienced These clienteles demand strict adherence to timely delivery,
project management and legal team. They meticulously quality and costs. Inability to meet their expectations may
evaluate project’s legal and contractual risks and work towards damage the Company’s reputation and prevent repeat orders.
limiting liabilities. The Company further tries to ensure that This may impact the revenues and future sustainability.
contract include a ‘No consequential losses’ clause to protect Mitigation:
from any downside risk. Additionally, the Company has ACIL has multiple decades of experience in the construction
subscribed to Workers Compensation Policy, Contractors All field over which it has built a robust business model. It

8 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Management Discussion and Analysis report (Contd.)

has an experienced and qualified team, and strong IT and Mitigation:

equipment infrastructure which facilitate high levels of The Company has implemented contingency plans for
automation resulting in operational efficiency. The Company’s insulating it and protecting its assets and inventory from
strong linkages with leading global network channel partners any unfortunate events. The Company on an ongoing basis
enables it to effectively manage and execute projects. This continues to implement loss prevention measures like high
has enabled the Company to gain competitive advantage in safety and security standards to be better prepared. The
the sector and become a preferred player with a proven track Company has also subscribed to several risk policies like
record that has been awarded. Active involvement of senior Workmen Compensation Insurance Policy/ Fidelity Insurance
management, project managers and process leaders across all Policy to minimise the impact of this risk.
project stages along with a proper intervention and escalation
systems ensures disciplined execution without any slippages. INFORMATION TECHNOLOGY
Competition Risk Information Technology has become an indispensable tool
Construction market is getting competitive with consolidations for the construction industry. It is crucial towards better
among existing players as well as due to emerging competition planning, project management and seamless integration
led by entry of new domestic and international players. between head office and sites. It has improved connectivity
Inability of the Company to match their quality and pricing and communication within the organisation and enhanced
may lead to loss of business, impacting its market share and automation which is leading to higher operational efficiencies
profitability. and costs savings.
Mitigation: The initial concentration has primarily been in the construction
The Company with its experience of working across diverse business, which is the Company’s largest segment. The
challenging projects across its five-decade existence has digital solutions here are aimed towards improving utilisation
created a strong differentiation in the market in terms of of equipment, enhance productivity, savings in fuel, reduction
project execution, quality and timely delivery. It has delivered in material wastage and real-time visibility of all aspects
multiple projects as per clients’ expectation, thereby earning of operations. This has facilitated in better monitoring and
a market reputation as well as building strong relationships effective data-based decision making, thereby removing
which ensures sustained orders, including repeat, and bottlenecks and improving timely completion.
resilience to rising competition. The Company’s strong Workmen availability and productivity
balance sheet position with free cash flows which not only Workmen are Key to a project site and their availability and
provides advantage of high pre-qualification criteria but productivity are critical to timely project completion. The
also capital to make sustained investment. This enables Company has implemented digital solutions for mobilising,
the Company to consistently enhance its competencies on-boarding and monitoring productivity of workmen.
by attracting and retaining better people and upgrading its
technology infrastructure. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES
Directors and Officers Liability Risks AND EMPLOYEE RELATIONS
The Company’s Directors and Officers are required to take In the five M’s of management i.e. men, money, machines,
decisions in its best interest. Negligence, errors, mistakes and materials & methods, Human Resource deals with the first
omissions on their part might lead to the Company getting M which is men. As ‘every human is different from other’,
sued by competition. so is the utilisation & career aspirations of every individual.
Mitigation: Hence, it becomes the foremost duty of an individual to align
an individual career goal with an organisational Vision for
The Company provides all necessary information to its
mutual growth.
Directors and Officers that is essential for enabling them to
diligently perform their duties. The Directors and Officers also Behind every product or service invention/ Innovation there
consult legal professionals and experts in relevant matter to is a human mind, effort and man hours (working hours). No
mitigate the impact of the risk. Further, the Company practices product or service can be produced without help of human
undertaking appropriate insurance coverage to protect itself being as he/she being is fundamental resource for making or
and limit the contractual liability resulting due to damages constructing anything. Every organisation’s desire is to have
caused by any negligence or error. skilled and competent people to make their organisation the
best.
Assets and Inventory Risk
Our professionals are our most important assets. We are
Unnatural events like fire, theft and accidents among others
committed to hiring and retaining the best talent and being
that are beyond the Company’s control may adversely impact
among the industry’s leading employers. For this, we focus
the Company’s operations and profitability.

Annual Report 2019-20 9

on promoting a collaborative, transparent and participative The Company does not tolerate any form of discrimination,
organisation culture, and rewarding individual contribution and its employment policies and practices focus on ensuring
and innovation. At ACIL, our goal has been to create an that all employment processes are free from unlawful
open and safe workplace where each and every employee discrimination on any grounds. Engagement studies have
feels empowered to contribute to the best of their abilities, shown that ACIL is a safe place to work for women. Both
irrespective of gender, sexual preferences or any other employment and retention of women is rapidly increasing due
classification that has no bearing on the employee’s work to this confidence. As on 31st March, 2020, the Company
output. has a total of 2093 staff on its rolls of which 35 are women.
Accordingly, POSH is implemented PAN India by ACIL and has The Company also nurtures a multi-generational workforce
constituted an Internal Committee (IC) in all the development and undertakes grooming young talent. Its efforts in sustaining
centers of the Company across India to consider and resolve a healthy association with top Engineering and MBA institutes
all sexual harassment complaints reported by women. The led to rich demographic dividend with 65% employees under
constitution of the IC is as per the Sexual Harassment of 45 years of age.
Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013, and the committee includes external members OUTLOOK
from NGOs or with relevant experience. Investigations are COVID-19 is one-of-a-kind event that has impacted not just
conducted and decisions are made by the IC at the respective construction, but also halted all major businesses linked
location, and a senior woman employee is the presiding within the project value chain. Full recovery from this downfall
officer over every case. Half of the total members of the IC is likely to be slow for the construction sector. It will depend
are women. The details of complaints pertaining to sexual majorly on short-term revival actions and medium to long-term
harassment that were filed, disposed of and pending during strategies implemented by various stakeholders. Government,
the financial year are provided in the Business responsibility developers and contractors will have to collectively play their
report of this Annual report. parts to ensure a revival in the overall construction ecosystem.
On Account of Staff, the Company has 2093 employees (on With a huge pipeline of projects to be awarded in the
a standalone basis) as of 31st March, 2020. The percentage infrastructure sector, the ratings agency ICRA expects the
increase in remuneration, ratio of remuneration of each new order inflows for construction companies to improve in
director and key managerial personnel (KMP) (as required 2020. The order inflows from non-infrastructure segments
under the Companies Act, 2013) to the median of employees’ like industrial and real estate (excluding affordable housing
remuneration, and the list of top 10 employees in terms of segment) are expected to remain muted, with weak private
remuneration drawn, as required under Section 197(12) of sector capex growth. On the execution front, ICRA expects
the Companies Act, 2013, read with Rule 5 of the Companies that the healthy order-book should support growth in
(Appointment and Remuneration of Managerial Personnel) operating income of construction companies in the second /
Rules, 2014, form part of Annexure 3 in this Board’s report. third quarter of 2020.
The statement containing particulars of employees employed
(Source: KPMG Research Report, The Economic Times)
throughout the year and in receipt of remuneration of `1.02
Crores or more per annum and employees employed for part We believe that with stable Government policies, the industry
of the year and in receipt of remuneration of `8.5 Lakhs or is likely to see scaling up of long-term projects once the
more per month, as required under Section 197(12) of the pandemic starts fading out. This will reduce competitive
Companies Act, 2013, read with Rule 5 of the Companies intensity in the market and lead to a pick-up in activities.
(Appointment and Remuneration of Managerial Personnel) Social infrastructure – metros, education and healthcare – is
Rules, 2014, is provided in a separate exhibit forming part of an area which will be in focus and witness an uptick.
this report and is available on the website of the Company at
These are areas where ACIL is present and has strong
https://www.acilnet.com
competencies. The Company already has a strong gross
The Annual Report and accounts are being sent to the order book position of `12,35,098.81 Lakhs as on 31st
shareholders excluding the aforesaid exhibit. Shareholders March, 2020 and expects these developments to have
interested in obtaining this information may access the same positive impact on its business. In the medium to long term
from the Company website. horizon. The Company has adequate manpower resources,
Employee diversity infrastructure and financial steadiness to execute its current
ACIL is committed to embedding a culture of diversity and order book position as well as take up more orders.
inclusion. This includes ensuring equal opportunity for all and
embracing the positive effect that its diverse workforce brings.

10 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Director’s Report
To the Members,
The Directors are pleased to present to you the 41st Annual Report on the business and operations of your Company along with the
Audited Financial Statements of Account for the year ended 31st March, 2020.

FINANCIAL HIGHLIGHTS
The Standalone and Consolidated Financial Results of the Company for the Year ended 31st March, 2020 is as summarised below:
(Amount ` in Lakhs)

Standalone Consolidated
Particulars Year Ended Year Ended Year Ended Year Ended
31st March, 31st March, 31st March, 31st March,
2020 2019 2020 2019
Revenue from Operations 1,88,492.69 1,75,471.44 1,88,492.69 1,75,471.44
Other Income 1,044.30 977.29 1,044.30 977.29
Total Income: 1,89,536.99 1,76,448.73 1,89,536.99 1,76,448.73
Total Expenditure other than Finance Cost and 1,73,191.10 1,53,823.43 1,73,195.54 1,53,829.81
Depreciation and Amortisation
Profit Before Finance Cost and Depreciation and 16,345.89 22,625.30 16,341.45 22,618.92
Amortisation and Tax
Depreciation and Amortisation Expenses 3,187.15 2,755.79 3,187.15 2,755.79
Profit Before Finance Cost and Tax 13,158.74 19,869.51 13,154.30 19,863.13
Finance Cost (Net) 3,499.77 1,922.40 3,499.77 1,922.40
Profit Before Tax 9,658.97 17,947.11 9,654.53 17,940.73
Provision for Current Tax 2,862.26 6,924.47 2,862.26 6,924.47
Provision for Deferred Tax 353.12 -715.29 353.12 -715.29
Profit after Tax 6,443.59 11,737.93 6,439.15 11,731.55
Re-measurement of Defined Benefits Plans 1.76 -183.12 1.76 -183.12
Total Comprehensive Income 6,445.35 11,554.81 6,440.91 11,548.43
Restated refer note 55 of Financial Statements
DIVIDEND 60-bed specially designed and developed AES ward, which
Your Board of Directors has not recommended any dividend has been built under Shrikrishna Medical College & Hospital
for the year ended 2019-20. (SKMCH) and handed over to the hospital administration for
the treatment of AES affected children.
COVID-19 – A GLOBAL PANDEMIC By completing the project in a very quick span of 234 days,
Project during the pandemic: the Project sets an example for the nation that pandemic
Even at this unprecedented situation of COVID-19, ACIL has can only affect the project emotionally. However, if projects
put its remarkable footprint by completing one of its hospital are well managed with full consideration of all risks and
projects, Pediatrics Intensive Care Unit (PICU) in Muzaffarpur, uncertainties at the pre-planning stage only, then this set
Bihar by following proper safety measures and norms laid up can still enable a trouble-free environment even at such
down by the Company. Consequently, not even a single case devastating juncture.
of COVID-19 was found during construction. One of the greatest learnings from this project entails a
PICU project was an essential need for the Bihar Government mutual understanding of client and contractor, which always
and was of utmost priority to them, as it was constructed results in faster approvals and permits, which can offset for
to fight with other deadly diseases, namely Japanese the delays as well. Hence, building relationships among the
Encephalitis and AES. It is a 100-bed PICU hospital, with stakeholders is absolutely necessary.

Annual Report 2019-20 11

We, at Ahluwalia Contracts are proud of our ‘CORONA HUMAN RESOURCES AND INDUSTRIAL RELATIONS
WARRIORS’, who without being daunted have faced this Human Resource Development is the framework for helping
unprecedented challenge on the ground, on projects sites and employees develop their skills, knowledge, and abilities, which
our various offices, to ensure that all workers & staff stay safe in turn improves an organisation’s effectiveness Attracting,
and work goes on even in face of this extreme adversity. enabling and retaining talent has been the cornerstone of
the Human Resource function and the results underscore the
OUTLOOK
important role that human capital plays in critical strategic
FY 2019-20 has been a challenging year with weakening activities such as growth.
Industry sentiment given the macro-economic conditions
A robust Talent Acquisition system enables the Company to
and finally, the COVID-19 outbreak and its terrible impact on
balance unpredictable business demands with a predictable
lives and livelihoods. The impact of virus and containment
resource supply through organic and inorganic growth. The
efforts have resulted in supply, demand disruptions and
Company had an addition of around 200 new joiner’s last
sharper growth deceleration. The situation remains volatile
financial year, taking its total employee count to 2093 Plus
with the trajectory of the virus undetermined, evolving hot
Staffers.
spot geographies, the success of containment measures
uncertain, the severity and duration of resulting economic An evolved onboarding model helped the Company to
crisis and the extent of structural damage unknown. There effectively integrate associates acquired through a strong
are many unknowns today and hence, the near-term outlook localisation focus. The diverse workforce represents workers
is extremely uncertain. We stand united with the nation in from PAN India with different roots & ethnicity working in
the fight against COVID-19 as we navigate our way through harmony & mutual coordination towards a common goal of
these dynamic uncertain times together. Our focus remains on development & productivity.
safety of our Employee, protecting supply lines, contributing The re-imagined focus on competency building of fresh
to the society and optimising cost and cash. recruits prior to joining through unique Digital Initial Learning
Despite the near-term ambiguity, we remain confident of the Program approach has enabled faster release of fresher’s to
medium to long-term growth prospects of the construction. We projects. Post-Offer engagement activities have also witnessed
are working closely with Governments and our clients to ensure increased focus & exposure for both Principal- Subordinate
that we overcome this global health crisis together. We have engagements towards their development goals.
naturally seen strong as well as challenging conditions over
Continual pursuit to connect with associates on a regular
the decades and your Company has maneuvered through all
basis, communicate in an open and transparent manner,
of these and come out stronger. Although the current situation
progressive HR policies and distinctive HR Business Partner
is much more uncertain than normal, we are confident about
model, guided by One Ahluwalia culture, are yielding desired
our ability to manage the immediate crisis and come out of it
results. The organisation develops its workforce through
in a strengthened competitive position. We remain focused on
employee training and career development which improves
delivering consistent, competitive, profitable and responsible
organisational effectiveness and performance.
growth through our fundamentals of growth and sustainable
business model.
CHANGE IN NATURE OF BUSINESS

COMPANY’S PERFORMANCE There was no change in the nature of Business of the Company
during the year under review.
The Standalone total Income for FY 2019-20 was
`1,89,536.99 Lakhs (Previous Year: `1,76,448.73) The
ANNUAL PERFORMANCE
Operating Profit stood at `15,301.59 Lakhs as against
`21,648.01 Lakhs in the Previous Year. The Net Profit for the Details of the Company’s annual financial performance as
year stood at `6,443.59 Lakhs against `11,737.93 Lakhs published on the Company’s website and presented during
reported in the Previous Year. the Analyst Meet, after declaration of annual results can be
accessed on the Company’s website at www.acilnet.com
The Consolidated total Income for FY 2019-20 was
`1,89,536.99 Lakhs (Previous Year: `1,76,448.73 Lakhs),
CURRENT BUSINESS AND PERFORMACE FROM
registering a growth of 7.42%. The Consolidated Operating
OPERATIONS
Profit stood at `15,297.15 Lakhs (Previous Year: `21,641.63
Lakhs). The Consolidated Profit after tax stood at `6,439.15 SHARE CAPITAL
Lakhs (Previous Year: `11,731.55 Lakhs). The paid-up Equity Share Capital as at 31st March, 2020

12 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Director’s Report (Contd.)

stood at `1,339.75 Lakhs. During the year under review, the THE DETAILS OF DIRECTORS AND KEY MANAGERIAL
Company has not issued shares or convertible securities or PERSONNEL APPOINTED/ RESIGNED DURING THE YEAR
shares with differential voting rights nor has granted any stock Mr. Shobhit Uppal, Dy. Managing Director (Whole Time
options or sweat equity or warrants. Director) is liable to retire by rotation in the ensuing Annual
TRANSFER TO RESERVE General Meeting and being eligible offer himself for re-
The Company did not transfer any amount to General Reserve appointment. Your Directors recommend his re-appointment
during the year. as Director in the fourth coming Annual General Meeting of
the Company.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Further, The Board of Director of the Company appointed Mr.
During the period under review and till the date of this Report,
Sanjeev Sharma (DIN: 08478247) as a Whole Time Director
the Board of the Company consists of the following Directors:
w.e.f 01.08.2019 and Mr. Rajendra Prashad Gupta (DIN:
Sl. Name of the Director/ KMP Category of Directorship/ 02537985) as Independent Director of the Company in the
Designation
2nd Board Meeting held on 24th July, 2019, and they were
1 Mr. Bikramjit Ahluwalia, Executive Managing Director regularised by the Members in the 40th Annual General
DIN:00304947 (Whole Time)
Meeting of the Company.
2 Mr. Shobhit Uppal, Executive (Whole Time)
DIN:00305264 The terms and conditions of appointment of the Independent
Directors are in compliance with the provisions of the
3 Mr. Vikas Ahluwalia, Executive (Whole Time)
DIN:00305175 Companies Act, 2013 and are placed on the website of the
Company http://acilnet.com/Listing-Compliance.aspx. The
4 Mr. Sanjiv Sharma, DIN: Executive (Whole Time)
08478247* Company has also disclosed on its website http:// acilnet.
com/Listing-Compliance.aspx details of the familiarisation
5 Mr. Arun Kumar Gupta, Independent Non-Executive
DIN:00371289 programs to educate the Directors regarding their roles, rights
and responsibilities in the Company and the nature of the
6 Dr. Sushil Chandra, Independent Non-Executive
DIN:00502167 industry in which the Company operates, the business model
of the Company, etc.
7 Dr. Mohinder Sahlot, Independent Non-Executive
DIN:01363530 DECLARATION OF INDEPENDENCE
8 Mr. Rajendra Prashad Independent Non-Executive Your Company has received declarations from all the
Gupta, DIN: 02537985**
Independent Directors confirming that they meet the criteria
9 Mr. Satbeer Singh Chief Financial Officer of independence as prescribed under the provisions of
10 Mr. Vipin Kumar Tiwari Company Secretary Companies Act, 2013 read with the Schedules and Rules
issued thereunder as well as the SEBI (Listing Obligations and
* Mr. Sanjiv Sharma was appointed as Whole time Director
Disclosures Requirement) Regulations, 2015
w.e.f. 01-08-2019
MEETINGS OF THE BOARD
** Mr. Rajendra Prashad Gupta was appointed as Independent
Director w.e.f. 24-07-2019 The Board of the Company and its Committees meet at
regular intervals to discuss, decide and supervise the various
KEY MANAGERIAL PERSONNEL: business policies, business strategy, Company’s performance
In terms of Section 203 of the Act, the following are the Key and other statutory matters. During the year under review, the
Managerial Personnel (KMP) of the Company as on 31st Board has met five times. The details of the meeting of the
March, 2020: Board and its Committees are given in Corporate Governance
Report. The intervening gap between two Board Meetings did
Sl. Name of the Director/ KMP Category of Directorship/ not exceed 120 days.
Designation
COMMITTEES OF THE BOARD
1 Mr. Bikramjit Ahluwalia, Executive Managing Director
DIN:00304947 (Whole Time) The Committees of the Board focus on certain specific areas
2 Mr. Satbeer Singh Chief Financial Officer and make informed decisions in line with the delegated
authority.
3 Mr. Vipin Kumar Tiwari Company Secretary

Annual Report 2019-20 13

The following statutory Committees constituted by the Board Board of Directors of the Company had accepted all the
function according to their respective roles and defined scope: recommendations of the Audit Committee.
Audit Committee of Directors NOMINATION AND REMUNERATION COMMITTEE
Nomination and Remuneration Committee The performance evaluation criteria for independent directors
Stakeholders Relationship Committee is determined by the Nomination and Remuneration
Committee. An indicative list of factors on which evaluation
Corporate Social Responsibility Committee
was carried out includes participation and contribution by
Risk Management Committee a Director, commitment, effective deployment of knowledge
Details of composition, terms of reference and number and expertise, integrity and maintenance of confidentiality
of meetings held for respective committees are given in and independence of behavior and judgment.
the Report on Corporate Governance, which forms a part REMUNERATION POLICY
of this Report. Further, during the year under review, all
Remuneration policy of the Company is designed to create a
recommendations made by the Audit Committee have been
high-performance culture. It enables the Company to attract,
accepted by the Board.
retain and motivate employees to achieve results.
AUDIT COMMITTEE
The Company pays remuneration by way of salary, benefits,
Your Company has a qualified and independent Audit perquisites and allowances (fixed component) to its Managing
Committee. The Audit Committee consists of the following Director and the Executive Directors. Annual increments
members as on date of this Report: are recommended by the Nomination and Remuneration
Name of the Directors Designation Nature of Directorship Committee within the salary scale approved by the Board and
Mr. Arun Kumar Gupta Chairman Non-executive Members and are effective April 1, each year.
Independent Director The Company pays sitting fees of `20,000 per meeting to its
Dr. Sushil Chandra Member Non-executive Non-Executive Directors for attending meetings of the Board
Independent Director and meetings of committees of the Board.
Dr. Mohinder Sahlot Member Non-executive The Company also reimburses the out-of-pocket expenses
Independent Director
incurred by the Directors for attending the meetings. The
Mr. Rajendra Prashad Member Non-executive Remuneration policy is available on https://www.acilnet.com
Gupta* Independent Director
The Nomination & Remuneration Committee consists of the
Mr. Shobhit Uppal Member Executive-Dy. Managing
Director following members as on date of this Report:

Mr. Vikas Ahluwalia Member Executive-Whole Time Name of the Directors Designation Category
Director Mr. Arun Kumar Gupta Member Non-executive
Independent Director
* Mr. Rajendra Prashad Gupta was appointed as Independent
Dr. Sushil Chandra Chairman Non-executive
Director w.e.f. 24-07-2019 and inducted as a new member Independent Director
w.e.f. 24-07-2019 Dr. Mohinder Sahlot Member Non-executive
The constitution of the Committee is in compliance with the Independent Director

provisions of the Act and the SEBI (Listing Obligations and STAKEHOLDER’S RELATIONSHIP COMMITTEE
Disclosure Requirements) Regulations, 2015 as amended The Stakeholders Relationship Committee consists of the
time to time. The detailed description & terms of reference of following members as on date of this Report:
the Audit Committee has been given in Corporate Governance
Name of the Directors Designation Nature of Directorship
Report. The terms of reference and role of the Committee
Dr. Sushil Chandra Member Non-executive
are as per the guidelines set out in the Listing Regulations Independent Director
and Section 177 of the Act and rules made thereunder and Mr. Shobhit Uppal Member Dy. Managing Director
includes such other functions as may be assigned to it by the Dr. Mohinder Sahlot Chairman Non-executive
Board from time to time. Independent Director

The Committee has adequate powers to play an effective CORPORATE SOCIAL RESPONSIBILITY (CSR)
role as required under the provisions of the Act and As a part of its initiative under the “Corporate Social
Listing Regulations. During the year under review, the

14 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Director’s Report (Contd.)

Responsibility” (CSR) drive, the Company has undertaken Environmental Management System (HSEMS) at Ahluwalia’s,
projects in the areas of environment sustainability, preventive has evolved over the years into a robust management system
health care, eradication of hunger, education, women guided by requirements from multiple stakeholders, including
empowerment, health, Poor Child Transportation, School clients, internal customers, vendor partners, law enforcement
Building Construction and hygiene. These projects are in and regulatory bodies, and the communities in which we
accordance with Schedule VII of the Act and the Company’s operate. There is an increased focus globally on the needs
CSR policy. and environmental issues and occupational health and
Eradicating hunger, poverty and malnutrition; safety, and greater emphasis on compliance with legislations
and other requirements. Systems have been established
Promotion of healthcare including preventive healthcare;
in accordance with internationally recognised standards /
Promotion of education and employment-enhancing specifications and Ahluwalia’s is certified to ISO 9001:2015,
vocational skills; ISO 14001:2015 and ISO 45001:2018 in India locations.
Ensuring environmental sustainability and animal Protecting the environment, providing the right workplace
welfare including measures for reducing inequalities ambience and safeguarding health and safety of personnel,
faced by socially & economically backward groups; including employees, contract workers and visitors, are
Other areas approved by the CSR Committee within the strategic priorities for us.
ambit of CSR Rules as amended from time-to-time. The HSEMS includes well-defined policies and procedures
The Corporate Social Responsibility Committee, consists of and also strives to keep interested parties well-informed,
the following Members as on date of this report: trained and committed to our HSE process.
PARTICULARS OF EMPLOYEES
Name of the Directors Designation Nature of Directorship
The details required under Section 197(12) of the Act
Dr. Sushil Chandra Chairman Non-executive
Independent Director read with Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, are
Mr. Shobhit Uppal Member Dy. Managing Director
annexed as Annexure-“B” and forms part of this report.
Mr. Arun Kumar Gupta Member Non-executive Further, as required under the provisions of Rule 5(2) of the
Independent Director
Companies (Appointment and Remuneration of Managerial
The Report on CSR activities as required under the Companies Personnel) Rules, 2014, the name and other particulars of
(Corporate Social Responsibility Policy) Rules, 2014 is employees are set out in Annexure B and forms part of this
annexed as Annexure ‘A’ and forms an integral part of this report.
Report. The Policy has been uploaded on the Company’s
PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
website at www.acilnet.com
As per the requirement of the Sexual Harassment of Women
RISK MANAGEMENT COMMITTEE
at Workplace (Prevention, Prohibition & Redressal) Act, 2013
The Board of Directors of the Company has formed a Risk (‘POSH Act’) and Rules made thereunder, your Company
Management Committee to frame, implement and monitor
has constituted Internal Committees (IC). While maintaining
the risk management plan for the Company.
the highest governance norms, the Company has appointed
The Committee is responsible for monitoring and reviewing external independent persons who worked in this area and
the risk management plan and ensuring its effectiveness. have the requisite experience in handling such matters, as
The Audit Committee has additional oversight in the area of Chairpersons of each of the Committees. To build awareness
financial risks and controls. The major risks identified by the in this area, the Company has been conducting induction /
businesses and functions are systematically addressed through refresher programmes in the organisation on a continuous
mitigating actions on a continuing basis. The development basis. Your Company has also engaged with Government
and implementation of risk management policy has been Authority and made suggestions to make POSH Act more
covered in the Management Discussion and Analysis, which enabling and easier to administer so that matters under this
forms part of this report. Act can be dealt with more efficiently.
HEALTH, SAFETY AND ENVIRONMENT VIGIL MECHANISM / WHISTLE BLOWER POLICY
Health, safety and environment: One of the prerequisites In order to provide a mechanism to employees of the
for conducting business responsibly is a safe, healthy, and Company to disclose any unethical and improper practices
environment-friendly workplace. Ozone, the Health, Safety and
or any other alleged wrongful conduct in the Company and to

Annual Report 2019-20 15

prohibit managerial personnel from taking any adverse action invited nor accepted any public deposits from the public.
against those employees, the Company has laid down a Vigil Pursuant to the Ministry of Corporate Affairs (MCA)
Mechanism also known as Whistle Blower Policy to deal with notification dated 22nd January, 2019 amending the
instance of fraud and mismanagement, if any. The details of Companies (Acceptance of Deposits) Rules, 2014, the
the Vigil Mechanism or Whistle Blower Policy is explained Company is required to file with the Registrar of Companies
in the Corporate Governance Report and also posted on the (ROC) requisite returns in Form DPT-3 for outstanding receipt
website of the Company. i.e. www.acilnet.com
of money/loan by the Company, which is not considered as
CORPORATE GOVERNANCE deposits. The Company has complied the requirement within
Maintaining high standards of Corporate Governance has prescribed timeline.
been fundamental to the business of your Company since FAMILIARIZATION PROGRAMME FOR INDEPENDENT
its inception. A separate report on Corporate Governance DIRECTORS
is provided together with a Certificate from the Practicing
Familiarisation Program of Independent Directors In
Company Secretary regarding compliance of conditions of
compliance with the requirements of SEBI Listing
Corporate Governance as stipulated under Listing Regulations.
Regulations, the Company has put in place a familiarisation
A Certificate of the MD and CFO of the Company in terms of
programme for Independent Directors to familiarise them
Listing Regulations, inter-alia, confirming the correctness of
with their role, rights and responsibility as Directors, the
the financial statements and cash flow statements, adequacy
operations of the Company, business overview etc. The
of the internal control measures and reporting of matters to
details of the familiarisation programme are explained in the
the Audit Committee, is also annexed.
Corporate Governance Report and the same is also available
CODE OF CONDUCT FOR PREVENTION OF INSIDER
on the website of the Company and can be accessed on the
TRADING
Company’s website at www.acilnet.com
Your Company’s Code of Conduct for Prevention of Insider
CREDIT RATING
Trading covers all the Directors, Senior Management Personnel,
The Company’s financial discipline and prudence is reflected
persons forming part of promoter(s)/promoter group(s) and
in the strong credit ratings ascribed by rating agencies as
such other designated employees of the Company, who
given below:
are expected to have access to unpublished price sensitive
information relating to the Company. The Directors, their Facilities Rating Rating Action
relatives, senior management personnel, persons forming part Long Term CARE A+;Stable (Single A Plus; Reaffirmed
of promoter(s)/promoter group(s), designated employees etc. Bank Facilities Outlook; Stable

are restricted in purchasing, selling and dealing in the shares Long term / CARE A+;Stable/ CARE A1 Reaffirmed
of the Company while in possession of unpublished price short term (Single A Plus; Outlook; Stable/A
Bank Facilities One)
sensitive information about the Company as well as during
the closure of trading window. CRITERIA FOR SELECTION OF CANDIDATES FOR
MEMBERSHIP ON THE BOARD OF DIRECTORS AND THE
The Board of Directors has approved and adopted the revised
REMUNERATION POLICY
Code of Conduct to regulate, fair disclosure, Monitor and
As per the provisions of Section 178 of the Act and other
Report trading by Insiders in line with SEBI (Prohibition of
relevant provisions and on the recommendation of Nomination
Insider Trading) Amendment Regulation, 2018 and the same
& Remuneration Committee, the Board has framed a
can be accessed on the website: http://www.acilnet.com/
criteria for selection of Directors, a policy for remuneration
about/code-of-conduct
of Directors, key managerial personnel (“KMP”), senior
MANAGEMENT DISCUSSION AND ANALYSIS REPORT management personnel (“SMP”) and other employees. The
In terms of SEBI (Listing Obligations and Disclosure Criteria for selection of candidates for Membership on the
Requirements) Regulations, 2015, a separate section Board of Directors and the remuneration policy are stated in
on Management Discussion & Analysis report has been the Corporate Governance Report.
incorporated in the Annual Report for the information of the BOARD EVALUATION
shareholders.
DEPOSITS
During the year under review, your Company has neither

16 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Director’s Report (Contd.)

Pursuant to the provisions of the Act and the Listing management personnel have affirmed compliance with their
Regulations, the Board has carried out an annual performance respective codes. The CEO & Managing Director, Whole Time
evaluation of its own performance, its committees and the Directors / Independent Director have also confirmed and
individual Directors. The manner in which the evaluation certified the same, which certification is provided at the end
has been carried out has been explained in the Corporate of the Report on Corporate Governance.
Governance Report. SUBSIDIARIES COMPANIES
RELATED PARTY DISCLOSURE As on 31st March, 2020, the Company had Five (5)
All the related party transactions entered during the year subsidiaries i.e. 100% wholly-owned subsidiaries the details
were in the ordinary course of business and on an arm’s are as under:
length basis. The related party transactions attracting the
Premsagar Merchants Pvt. Ltd Dipesh Mining Pvt. Ltd
compliance under Section 177 of the Act and/or SEBI Listing Regd. office: KB-25, Regd. office: KB-25,
Regulations were placed before the Audit Committee for Salt lake City, Sector-iii, Salt lake City, Sector-iii,
Kolkata- 700 098 Kolkata- 700 098
necessary approval/review.
CIN: CIN:
The routine related party transactions were placed before U51109WB2007PTC119814 U13100WB2007PTC115150
the Audit Committee for their approval. A statement of all Splendor Distributors Pvt. Ltd Jiwanjyoti Traders Pvt. Ltd
related party transactions entered was presented before the Regd. office: KB-25, Regd. office: KB-25,
Salt lake City, Sector-iii, Salt lake City, Sector-iii,
Audit Committee on a quarterly basis, specifying the nature, Kolkata- 700 098 Kolkata- 700 098
value and any other related terms and conditions of the CIN: CIN:
transactions. U51909WB2007PTC119832 U51109WB2007PTC119680

Transactions to be reported in Form AOC-2 in terms of Section Paramount Dealcomm Pvt. Ltd
Regd. office: KB-25,
134 of the Act read with Companies (Accounts) Rules, 2014. Salt lake City, Sector-iii,
Further, the details of the transactions with related parties are Kolkata- 700 098
provided in the Company’s financial statements in accordance CIN:
U51109WB2007PTC119813
with the Indian Accounting Standards. As per Annexure-“C”
Pursuant to provisions of section 129(3) of the Act, a statement
The Related Party Transactions Policy approved by the Board
containing salient features of the financial statements of
of Directors of the Company, as amended on 30th May,
the Company’s subsidiaries in Form AOC-1 is annexed as
2019 in line with the requirements of the SEBI (LODR)
Annexure-“D” to the Boards report of the Company.
(Amendment) Regulations, 2018 has been uploaded on the
website of the Company at www.acilnet.com PARTICULARS OF LOAN S, INVESTMENTS AND
GUARANTEES
BUSINESS RESPONSIBILITY STATEMENT
The details of Loans, guarantees and investments covered
As per SEBI Listing Regulations, a Business Responsibility
under Section 186 of the Companies Act, 2013 form part of
Report, prepared on a voluntary basis covering the
the Notes to the financial statements provided in this Annual
performance of the Company on the nine principles as per
Report.
National Voluntary Guidelines (NVGs) is attached to this
Annual Report. EXTRACT OF ANNUAL RETURN

CODES OF CONDUCT FOR DIRECTORS AND SR. Pursuant to Section 92 of the Act and Rule 12 of The
MANAGEMENT PERSONNEL Companies (Management and Administration) Rules, 2014,
the extract of Annual Return in Form MGT-9, is provided as
The Company has adopted a Code of Conduct for its Executive
Annexure-“E”.
Directors including a code of conduct for Independent Directors
which suitably incorporates the duties of Independent STATUTORY AUDITORS
Directors as laid down in the Act. The Company has also At the 38th Annual General Meeting (AGM) held on
adopted the ACIL Code of Conduct for its Sr. Management 28th September 2017, the Members had approved the
personnel (GM and above) employees including the Managing appointment of M/s. Amod Agrawal & Associates, Chartered
and Executive Directors. Accountants (ICAI Firm Registration No.005780N) as the
The above codes can be accessed on the Company’s website Statutory Auditors for a period of 3 years commencing to hold
at www.acilnet.com office till the conclusion of the 41st AGM to be held in the year
2020. Their term to hold office will be expired at the ensuing
In terms of the Listing Regulations, all Directors and senior

Annual Report 2019-20 17

Annual General Meeting. The Board has recommended for ADEQUACY
their re-appointment for another period of 5 year commencing Your Company has an effective internal control and risk-
from the conclusion of this 41st Annual General Meeting until mitigation system, which are constantly assessed and
the conclusion of the 46th Annual General Meeting. Also, The strengthened with new/revised standard operating procedures.
Statutory Auditors have consented to the said appointment The Company’s internal control system is commensurate with
and confirmed that their appointment, if made, would be its size, scale and complexities of its operations. The main
within the limits mentioned under Section 143(3)(g) of the thrust of internal audit is to test and review controls, appraisal
Companies Act 2013 and the Companies (Audit and Auditors) of risks and business processes, besides benchmarking
Rules, 2014. controls with best practices in the industry.
During the period under review, no incident of frauds was The Audit Committee of the Board of Directors actively
reported by the Statutory Auditors pursuant to Section reviews the adequacy and effectiveness of the internal control
143(12) of the Companies Act 2013. systems and suggests improvements to strengthen the same.
The standalone and the consolidated financial statements of The Company has a robust Management Information System,
the Company have been prepared in accordance with Indian which is an integral part of the control mechanism.
Accounting Standards (Ind AS) notified under Section 133 of The Audit Committee of the Board of Directors, Statutory
the Act. The Statutory Auditor’s report does not contain any Auditors and the cluster heads are periodically apprised of the
qualifications, reservations, adverse remarks or disclaimers. internal audit findings and corrective actions taken. Audit plays
The Statutory Auditors was present at the last Annual General a key role in providing assurance to the Board of Directors.
Meeting (AGM) Significant audit observations and corrective actions taken by
COST AUDITORS the management are presented to the Audit Committee of
Your Board has appointed M/s. N. M & Co., Cost Accountants, the Board. To maintain its objectivity and independence, the
(FRN 000545) as Cost Auditors of the Company for conducting Internal Audit function reports to the Chairman of the Audit
the cost audit for FY 2020-21. A resolution seeking ratification Committee.
of remuneration payable to the Cost Auditors for FY 2020-21 COMPLIANCE WITH SECRETARIAL STANDARDS
is provided in the Notice of the ensuing AGM. The Company confirms compliance with the applicable
The Cost Audit Report and the Compliance Report of your requirements of Secretarial Standards 1 and 2 prescribed by
Company for FY 2018-19, was filed on 24th January 2020 the Institute of Company Secretaries of India (ICSI)
with the Ministry of Corporate Affairs through Extensive CONSERVATION OF ENERGY
Business Reporting Language (XBRL). Further, the cost
The Company’s core activities are civil construction which is
accounts and records as required to be maintained under
not power intensive. The Company is every effort to conserve
Section 148 of the Act are duly made and maintained by the
the usages of Power.
Company.
RESEARCH & DEVELOPMENT AND TECHNOLOGY
SECRETARIAL AUDIT
ABSORPTION
Mr. Santosh Kumar Pradhan, Company Secretaries, has been
The Company has not incurred significant amount in R&D
appointed by the Board of Directors of the Company to carry
and Technology Absorption.
out the Secretarial Audit under the provision of Section 204
FOREIGN EXCHANGE - EARNINGS AND OUTGO
of the Act for the financial year ended 31st March, 2020.
The Secretarial Audit report for financial year ended on 31st (Amount ` in Lakhs)
March, 2020 is enclosed as Annexure “F”. Particulars – Standalone FY 2019-20 FY 2018-19
Further, the Secretarial Auditors’ Report being self- Foreign Exchange Earnings NIL NIL
explanatory, does not call for any further comments by the
Foreign Exchange Outflow
Board of Directors as there are no qualifications, reservation mainly on account of
or adverse remark or disclaimer made in the Audit Report for
Raw Material - 1,085.73
the financial year ended 31st March, 2020.
Capital Goods 391.41 NIL
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR
Advance Payment for Raw 72.39 64.60
Material

18 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Director’s Report (Contd.)

(Amount ` in Lakhs)
MATERIAL CHANGES AND COMMITMENTS AFFECTING
FINANCIAL POSITION BETWEEN THE END OF THE
Particulars – Standalone FY 2019-20 FY 2018-19
FINANCIAL YEAR AND DATE OF THE REPORT
Advance Payment for Capital NIL NIL
Goods
There have been no material changes and commitments,
which affect the financial position of the Company, that have
Travelling Expenses 11.72 11.50
occurred between the end of the financial year to which the
Consultancy Charges / Technical NIL NIL financial statements relate and the date of this report.
Fee
STOCK EXCHANGE LISTING
DIRECTORS’ RESPONSIBILITY STATEMENT
The shares of the Company are listed on BSE Limited (BSE),
During the FY 2019-20, accordingly, pursuant to Section
National Stock Exchange of India Limited and Calcutta Stock
134(5) of the Act, the Board of Directors, to the best of its
Exchange Association (CSE). The listing fee for the financial
knowledge and ability, confirm that based on the framework
year 2020-21 has been paid to BSE, CSE and National Stock
of IFC and compliance systems established and maintained
Exchange of India Limited.
by the Company, work performed by the internal, statutory,
TRANSFER TO INVESTOR EDUCATION AND PROTECTION
cost auditors, secretarial auditors and external consultants
FUND (IEPF)
including audit of IFC for financial reporting by the statutory
auditors and the reviews performed by management and the The Company has transferred to IEPF, a sum of ` NIL to
relevant Board Committees, including the Audit Committee, Investor Education and protection fund, in compliance with
the Board is of the opinion that the Company’s IFC were provisions of the Companies Act, 2013. The said amount
adequate and effective represents dividend for the year 2011-12 which remained
unclaimed by the shareholders of the Company for period
a) in the preparation of the annual accounts, the applicable
exceeding 7 years from its due date of payment.
accounting standards had been followed and there are
no material departures; ACKNOWLEDGEMENTS

b) the Directors had selected such accounting policies and On behalf of the Directors of the Company, I would like to
applied them consistently and made judgments and place on record our deep appreciation to our shareholders,
estimates that are reasonable and prudent so as to give clients, business partners, vendors - both international and
a true and fair view of the state of affairs of the Company domestic, bankers, financial institutions and others for all the
at the end of the financial year and of the profit of the support rendered during the year under review.
Company for that period; The Directors are thankful to the Government of India, the
c) the Directors had taken proper and sufficient care for various ministries of the State Governments, the central and
the maintenance of adequate accounting records in state electricity regulatory authorities, municipal authorities
accordance with the provisions of the Companies Act, of Mumbai and Delhi and local authorities in areas where
2013 for safeguarding the assets of the Company and for we are operational in India; and for all the support rendered
preventing and detecting fraud and other irregularities; during the year under review.

d) the Directors had prepared the annual accounts on a Finally, we appreciate and value the contributions made by
going concern basis; all our employees and their families for making the Company
what it is.
e) the Directors had laid down internal financial controls
to be followed by the Company and that such internal
financial controls are adequate and were operating On behalf of the Board of Directors
effectively (refer section 10); Ahluwalia Contracts (India) Ltd
f) the Directors had devised proper systems to ensure Sd/-
compliance with the provision of all applicable laws (Bikramjit Ahluwalia)
and that such systems were adequate and operating Chairman & Managing Director
effectively. DIN: 00304947

Date: 14-08-2020
Place: New Delhi

Annual Report 2019-20 19

Director’s Report (Contd.)

Annexure- A
Annual Report on Corporate Social Assist in skill development by providing direction and
Responsibility (CSR) Activities technical expertise to the vulnerable thereby empowering
[Pursuant to clause (o) of sub-section (3) of section 134 them towards a dignified life.
of the Act and Rule 9 of the Companies (Corporate Social Emphasize on providing basic nutrition/health care
Responsibility) Rules, 2014] facilities with special focus on establishing health
A brief outline of the Company’s CSR Policy, including centres for the mother and child as well as the elderly.
overview of projects or programs proposed to be undertaken Facilitate water conservation by reducing water consumption
and a reference to the web-link to the CSR Policy and projects at the plants and taking up rain water harvesting projects.
or programs. The CSR projects are headed by the Executive Director of the
Projects and programs undertaken by the Company Company and the progress in implementation of the projects
with respect to CSR are covered under Corporate Social are presented before the CSR Committee and the Board from
Responsibility Section of Annual Report. time to time.
The CSR Policy of Ahluwalia Contracts (India) Limited is Web-link of CSR Policy at www.acilnet.com
aimed to direct CSR Programs, inter alia, towards promotion I. Composition of the CSR committee:
of education, providing preventive healthcare and providing
sanitation and drinking water to those from disadvantaged Name Designation
sections of society, especially in the Company’ local vicinity Dr. Sushil Chandra Chairman
in Remote Area as well as to promote Education for poor Mr. Shobhit Uppal Member
children.
Mr. Arun Kumar Gupta Member
The Committee has approved a Corporate Social Responsibility
II. Average net profit of the Company for last three
policy and the major guiding principle to attain the CSR
financial years: `16,398 Lakhs
objectives in a professional and integrated manner, are as
under:- III. Prescribed CSR expenditure (Two percent of the
average net profit as calculated above):
Undertake proactive engagement with stakeholders to
actively contribute to the socio-economic development Particulars Amount in ` Lakhs
of the periphery/community in which it operates.
Average Net Profit for the `16,397.94
Using environment friendly and safe processes in preceding three years
production. Prescribed CSR @2% `327.96
Create a positive footprint within the society by creating
IV. Details of CSR spend for the financial year:
inclusive and enabling infrastructure/ environment for
livable communities. Descriptions Amount in ` Lakhs

Ensure environmental sustainability by adopting best Total amount spent for the `68.07
ecological practices and encouraging conservation/ FY 2019-20
judicious use of natural resources. Amount unspent during `259.89
Work towards mainstreaming the marginalized FY 2019-20
segments of the society by striving towards providing
equal opportunities and making meaningful difference
in their lives.
Focus on educating the poor (BPL) child and the
underprivileged by providing appropriate infrastructure,
and groom them as future value creators.

20 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Manner in which Amount spent during the financial year 2019-20 is detailed as under:

Sr. CSR Project or Sector in which Specify the area Budget project Amount spent Amount spent:
No Activity identified Project is covered where projects or programs on the projects direct or through
or programs was wise or program implementing
undertaken (` in Lakhs) agency
1 Shiv Shakti Education Health and Promoting Education -- 26.31 Direct
Society Education & Skill Sector
development
Training Institute
2 Santhigiri Preventive Skill development Promoting Health -- 20.00 Direct
Health Care Research Training Institute Care including
Centre preventive health care
3 India Vision Realty & Skilled Labour Promoting Education -- 21.76 Direct
Infrastructure Pvt. Co. Education & Training including
skill development
Total -- 68.07
In case the Company has failed to spend the two per cent of the average net profit of the last three financial years or any part thereof,
the Company shall provide the reasons for not spending the amount in its Board Report:
Some of the Company’s CSR initiatives are multiyear projects and hence the spent may vary from year to year.
The CSR Committee confirms that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and
Policy of the Company:
V. Reason for not spending the amount specialized in item no. (IV)
During the year, the budget outlay of `327.96 Lakhs has been approved by the Board of Directors. As per the programme,
the Company has started implementation of CSR activities. However, during the year, it was considered pragmatic to spend
`68.07 Lakhs in health care and Education sector. The Company has a stringent process for selecting CSR projects. Only these
projects that yield maximum impact are selected and supported. During the year the Company has not been able to find right
projects to spend the balance amount of `259.89 Lakhs wisely and effectively on CSR. The Company is actively looking to
identify additional projects to increase its CSR spending.
VI. Responsibility Statement
The implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the Company.
We hereby declare that implementation and monitoring of the CSR Policy are in compliance with CSR objectives.

Regd. Office:
Plot No. A-177, Okhla Industrial Area
Phase-I, New Delhi-110020

(Sushil Chandra) (Bikramjit Ahluwalia)

Chairman of CSR Committee Chairman & Managing Director
DIN: 00502167 DIN No. 00304947

Dated: 14-08-2020
Place: New Delhi

Annual Report 2019-20 21

Director’s Report (Contd.)

Annexure - B
A. Disclosures pursuant to Section 197(12) of the
Sr. Name of the Designation Increase*
Companies Act, 2013 and rule 5(1) of the Companies No Directors / KMP
(Appointment and Remuneration of Managerial
5 Vipin Kumar Company NIL
Personnel) Rules, 2014 are given below:
Tiwari Secretary
1. The ratio of the remuneration of each Director to the
6 Satbeer Singh Chief Financial NIL
median remuneration of the employees of the Company Officer
for the year 2019-20:
* % increase does not include payment made towards
Sr. Name of the Designation Ratio leave encashment, payment of past arrears and
No Directors perquisites yet to be claimed after the date of balance
1 Bikramjit Chairman & 35.79:1 sheet pertaining to financial year.
Ahluwalia Managing
3. The percentage increase in the median remuneration of
Director
employees in the financial year was 11.05%
2 Shobhit Uppal Dy.Managing 47.73:1
4. The number of permanent employees on the rolls of the
Director
Company: 2,093
3 Vikas Whole Time 17.05:1
Ahluwalia Director 5. The average Increase in percentage of salaries of
employees other than managerial personnel in FY 2019-
4 Sanjiv Sharma Whole Time 11.59:1
20 was 11% (Approx.), whereas there was no change in
Director
Managerial remuneration for the same financial year.
2. The percentage increase in remuneration of each
6. We affirmed that the remuneration is as per the
director, chief executive officer, chief financial officer,
Remuneration Policy of the Company.
company secretary in the financial year:

Sr. Name of the Designation Increase*

No Directors / KMP
1 Bikramjit Chairman & NIL
Ahluwalia Managing
Director
2 Shobhit Uppal Dy. Managing NIL
Director
3 Vikas Ahluwalia Whole Time NIL
Director
4 Sanjiv Sharma Whole Time NIL
Director

22 Ahluwalia Contracts (India) Limited

 (B) The Information required under Section 197 of the Act read with rule 5(2) & 5(3) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 amended vide notification dated 30th June, 2016 are given below:
(i) Name of top Ten employees
Sr. Name of Designation Remuneration Nature of Qualification Date of Com- Age Last employ- % of Equity Whether any such
No Employees (` in Lakhs) employment and Experi- mencement of ment before shares held employee is a rela-
Per Annum (Contractual ence employment joining the by such tive of any director
or otherwise) Company employee or manager of the
Company
1 Bikramjit Ahluwalia Chairman & 126.00 Business Civil Engineer 02.06.1979 81 Since Incor- 11.93% Father in law of Dy.
Managing 53 Years poration Managing Director
Director
2 Shobhit Uppal Dy. Managing 168.00 Business Electrical 25.03.1994 53 Business 6.43% Son in law of Man-
Director Engineer aging Director
25 Years
3 Vikas Ahluwalia Whole Time 60.00 Business Civil Engineer 01.04.2018 46 Business 0.05% Son of Managing
Director 20 Years Director
4 Sanjiv Sharma Whole Time 27.20* Service M. Tech 01-08-2019 51 Private Co. - Employee of the
Director 22 Years as Director Company
5 Avtar Singh Saini Vice President 54.95 Regular Civil Engineer 15.05.2008 58 Private Co - --
(Projects) 33 Years
6 Bharat Srivastava Vice President 50.66 Regular Icwa 22.11.1999 53 Private Co. - -
(F & A) 30 Years
7 Sunil Kumar Senior Vice 47.15 Regular Civil Engineer 10.02.2016 51 Private Co - -
Saxena President 26 Years
(Project)
8 Harpal Singh Asst. Vice 41.79 Regular Civil Engineer 01.12.1995 59 Private Co -
President-Proj- 32 Years
ects
Corporate Overview

9 Mohan Prabhakar Asst. Vice 37.80 Regular Be Civil Engi- 07-10-2019 29 Private Co - -
Achalkar President neer
Projects 29 Years
10 Rakesh Kumar Assistant Vice 36.30 Regular Civil Engineer 13.06.1989 53 Private Co - -
Sharma President-Proj- 29 Years
ects
Statutory Reports

*Mr. Sanjiv Sharma was appointed as Whole Time Director w.e.f. 01-08-2019 (Part of the Year) his remuneration is `3.40 Lakhs per Months for the part
of the year.
Employed throughout the financial year, was in receipt of remuneration for that year which, in the aggregate, was not less than ` One Crores Two Lakhs.

Annual Report 2019-20

Financial Statements

23
24
Sr. Name of Designation Remuneration Nature of Qualification Date of Com- Age Last employ- % of Whether any such
No Employees Rs. in Lakhs employment and Experi- mencement of ment before Equity employee is a rela-
(Contractual ence employment joining the shares held tive of any director
or otherwise) Company by such or manager of the
employee Company
1 Bikramjit Ahluwalia Managing 126.00 Business Civil Engineer 02-06-1979 80 Business 11.93% Father in law
Director of Dy.Managing
Director
One Crores Two Lakhs.

2 Shobhit Uppal Dy. Managing 168.00 Business Electrical 25.03.1994 52 Business 6.43% Son in law of Man-
Director Engineer aging Director
Annexure - B (Contd.)

(ii) Employed throughout the financial year or part thereof, was in receipt of remuneration in that year which, in the aggregate, or as the case may be, at a
Director’s Report (Contd.)

rate which, in the aggregate, is in excess of that drawn by the managing director or whole time director or manager and holds by himself or along with

Ahluwalia Contracts (India) Limited

his spouse and dependent children, not less than 2% of the equity shares of the Company.
Sr. Name of Designation Remuneration Nature of Qualification Date of Com- Age Last employ- % of Equity Whether any such
No Employees Rs. in Lakh employment and Experi- mencement of ment before shares held employee is a rela-
(Contractual ence employment joining the by such tive of any director
or otherwise) Company employee or manager of the
Company
1 Vinay Pal Whole Time 10.90 Service Graduate Resigned on 59 Private Co. - Employee of the
Director 31-05-2019 Company
(iii) Mr. Vinay Pal has Resigned as Whole Time Director w.e.f. 31-05-2019 and his remuneration is 5.45 Lakhs per months

Regd. Office: On behalf of the Board of Directors

Plot No. A-177, Okhla Industrial Area
Phase-I, New Delhi-110020 (Bikramjit Ahluwalia)
Chairman & Managing Director
DIN No. 00304947
Dated: 14-08-2020
Employed throughout the financial year, was in receipt of remuneration for that year which, in the aggregate, was not less than Rs.
 Corporate Overview Statutory Reports Financial Statements

Annexure - C
Form No. AOC-2
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)
Disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in sub-section
(1) of section 188 of the Companies Act, 2013 including certain arm’s length transactions under third proviso thereto
1) Details of Contract or arrangements or transactions not at Arm’s Length basis
There were no contracts or arrangements or transactions entered into during the year ended on 31st March, 2020 which were
not at arm’s length basis.
2) Details of Material contracts or arrangements or transactions at Arm’s Length basis

Sl. Particulars Details

1 Name(s) of the related party and nature of relationship Mrs. Sudershan Walia wife of Mr. Bikramjit
Ahluwalia, Chairman & Managing Director

2 Nature of contracts / arrangements / transactions Rent paid `4.50 Lakhs P.M.

3 Duration of the contracts / arrangements / transactions Continuous

4 Salient terms of the contracts or arrangements or transactions As per Agreement

including the value, if any

5 Date(s) of approval by the Board 30-05-2014

6 Amount paid as advances, if any Nil

Sl. Particulars Details

1 Name(s) of the related party and nature of relationship Mrs. Rachna Uppal Wife of Mr. Shobhit Uppal,
Dy. Managing Director

2 Nature of contracts / arrangements / transactions Rent paid `1 Lakh p.m.

3 Duration of the contracts / arrangements / transactions Continuous

4 Salient terms of the contracts or arrangements or transactions As per Agreement

including the value, if any

5 Date(s) of approval by the Board 30-05-2014

6 Amount paid as advances, if any Nil

Sl. Particulars Details

1 Name(s) of the related party and nature of relationship Ahluwalia Construction Group, Mr. Bikramjit
Ahluwalia, Proprietor of the firm

2 Nature of contracts / arrangements /transactions Rent paid `0.25 Lakh p.m.

3 Duration of the contracts / arrangements / transactions Continuous

4 Salient terms of the contracts or arrangements or transactions As per Agreement

including the value, if any

5 Date(s) of approval by the Board 30-05-2014

6 Amount paid as advances, if any Nil

Annual Report 2019-20 25

Director’s Report (Contd.)

Annexure - C (Contd.)
Sl. Particulars Details

1 Name(s) of the related party and nature of relationship Mrs. Mukta Ahluwalia Daughter of Mr. Bikramjit
Ahluwalia, Chairman & Managing Director

2 Nature of contracts / arrangements / transactions Rent paid of `0.50 Lakhs p.m.

3 Duration of the contracts / arrangements / transactions Continuous

4 Salient terms of the contracts or arrangements or transactions As per Agreement

including the value, if any

5 Date(s) of approval by the Board 22-08-2017

6 Amount paid as advances, if any Nil

Regd. Office: On behalf of the Board of Directors

Plot No. A-177, Okhla Industrial Area
Phase-I, New Delhi-110020 (Bikramjit Ahluwalia)
Chairman & Managing Director
Dated: 14-08-2020 DIN No. 00304947

26 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Annexure - D
Form No. AOC-1
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures
Part “A”: Subsidiaries
(Information in respect of each subsidiary to be presented with amount in Lakhs `)
1. Sl. No. 1
2. Name of the Subsidiary Dipesh Mining Pvt. Ltd
3. Reporting period for the subsidiary concerned, if different from the holding 31st March, 2020
Company’s reporting period
4. The date since when subsidiary was acquired 31.07.2008
5. Reporting currency and Exchange rate as on the last date of the relevant ` in Lakhs
Financial Year in the case of foreign subsidiaries.
6. Share Capital ` 103.25
7. Reserves & Surplus ` (30.73)
8. Total Assets ` 81.43
9. Total Liabilities ` 8.91
10. Investments ` NIL
11. Turnover ` NIL
12. Profit before taxation ` (0.89)
13. Provision for taxation ` NIL/-
14. Profit after taxation ` (0.89)
15. Proposed Dividend ` NIL
16. % of Shareholding 100%

1. Sl. No. 2
2. Name of the Subsidiary Jiwanjyoti Traders Pvt. Ltd.
3. Reporting period for the subsidiary concerned, if different from the holding 31st March, 2020
Company’s reporting period
4. The date since when subsidiary was acquired 31.07.2008
5. Reporting currency and Exchange rate as on the last date of the relevant ` in Lakhs
Financial Year in the case of foreign subsidiaries.
6. Share Capital ` 98.50/-
7. Reserves & Surplus ` (23.13)/-
8. Total Assets ` 81.30/-
9. Total Liabilities ` 5.93/-
10. Investments ` NIL
11. Turnover ` NIL
12. Profit before taxation ` (0.89)/-
13. Provision for taxation ` NIL/-
14. Profit after taxation ` (0.89)/-
15. Proposed Dividend ` NIL
16. % of Shareholding 100%

1. Sl. No. 3
2. Name of the Subsidiary Paramount Dealcomm Pvt. Ltd.
3. Reporting period for the subsidiary concerned, if different from the holding 31st March, 2020
Company’s reporting period
4. The date since when subsidiary was acquired 31.07.2008
5. Reporting currency and Exchange rate as on the last date of the relevant ` in Lakhs
Financial Year in the case of foreign subsidiaries.
6. Share Capital ` 99.50/-
7. Reserves & Surplus ` (22.87)/-
8. Total Assets ` 81.81/-
9. Total Liabilities ` 5.18/-
10. Investments ` NIL
11. Turnover ` NIL
12. Profit before taxation ` (0.89)/-

Annual Report 2019-20 27

Director’s Report (Contd.)

Annexure - D (Contd.)
1. Sl. No. 3
13. Provision for taxation ` NIL/-
14. Profit after taxation ` (0.89)/-
15. Proposed Dividend ` NIL
16. % of Shareholding 100%

1. Sl. No. 4
2. Name of the Subsidiary Premsagar Merchants Pvt. Ltd.
3. Reporting period for the subsidiary concerned, if different from the holding 31st March, 2020
Company’s reporting period
4. The date since when subsidiary was acquired 31.07.2008
5. Reporting currency and Exchange rate as on the last date of the relevant ` in Lakhs
Financial Year in the case of foreign subsidiaries.
6. Share Capital ` 88.75/-
7. Reserves & Surplus ` (20.42)/-
8. Total Assets ` 75.50/-
9. Total Liabilities ` 7.17/-
10. Investments ` NIL
11. Turnover ` NIL
12. Profit before taxation ` (0.89)/-
13. Provision for taxation ` NIL/-
14. Profit after taxation ` (0.89)/-
15. Proposed Dividend ` NIL
16. % of Shareholding 100%

1. Sl. No. 5
2. Name of the Subsidiary Splendor Distributors Pvt. Ltd.
3. Reporting period for the subsidiary concerned, if different from the holding 31st March, 2020
Company’s reporting period
4. The date since when subsidiary was acquired 31.07.2008
5. Reporting currency and Exchange rate as on the last date of the relevant ` in Lakhs
Financial Year in the case of foreign subsidiaries.
6. Share Capital ` 100.00/-
7. Reserves & Surplus ` (22.94)/-
8. Total Assets ` 83.01/-
9. Total Liabilities ` 5.95/-
10. Investments ` NIL
11. Turnover ` NIL
12. Profit before taxation ` (0.89)/-
13. Provision for taxation ` NIL/-
14. Profit after taxation ` (0.89)/-
15. Proposed Dividend ` NIL
16. % of Shareholding 100%

Regd. Office: on behalf of the Board of Directors

Plot No. A-177, Okhla Industrial Area
Phase-I, New Delhi-110020
Date: 14.08.2020

(Bikramjit Ahluwalia) (Shobhit Uppal) (Satbeer Singh)

Chairman & Managing Director Deputy MD CFO
DIN No. 00304947 DIN:00305264 PAN: ARLPS6573L

(Vipin Kumar Tiwari)

G.M. (Corporate) & Company Secretary
ACS: 10837

28 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Annexure - E
Form No. MGT-9
EXTRACT OF ANNUAL RETURN
As on the financial year ended on 31st March, 2020
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies Management and Administration) Rules,
2014]
I. REGISTRATION AND OTHER DETAILS

Sl. No. Particulars Details

i CIN L45101DL1979PLC009654

ii Registration Date 02-06-1979

iii Name of the Company AHLUWALIA CONTRACTS (INDIA) LIMITED

iv Category / Sub-Category of the Company Public Company/Limited By Shares

v Address of the Registered office and contact details A-177, Okhla Industrial Area
Phase-I, New Delhi-110 020
Tel.: +91-11-49410502, 517, 599
Fax.: +91-11-49410553
Email: cs.corpoffice@acilnet.com

vi Whether listed company Yes

vii Name, Address and Contact details of Registrar and Transfer LINK INTIME INDIA PVT. LTD. (RTA)
Agent Noble Heights, 1st Floor, Plot NH 2,
C-1, Block LSC, Near Savitri Market,
Janakpuri, New Delhi – 110058,
Phone: +91 11 - 414 10592, 93, 94;
Fax: +91 11 - 414 10591
Email: delhi@linkintime.co.in
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10% or more of the total turnover of the company shall be stated

Sl. No. Name & description of the main products/services NIC Code of product/service % to total turnover of the Company

1 Contract work Receipts 410 99.14

III. Particulars of Holding, Subsidiary and Associate Companies

Sl. No. Company’s Name CIN/GLN Holding %age Section

1 Premsagar Merchants Private U51109WB2007PTC119814 Subsidiary 100 2(87)(ii)

Limited

2 Splendor Distributors Private U51909WB2007PTC119832 Subsidiary 100 2(87)(ii)

Limited

3 Jiwanjyoti Traders Private U51109WB2007PTC119680 Subsidiary 100 2(87)(ii)

Limited

4 Dipesh Mining Private Limited U13100WB2007PTC115150 Subsidiary 100 2(87)(ii)

5 Paramount Dealcomm Private U51109WB2007PTC119813 Subsidiary 100 2(87)(ii)

Limited

Annual Report 2019-20 29

 IV. Shareholding Pattern (Equity Share Capital Breakup as percentage of Total Equity)

30
(i) Category-wise shareholding
Sr. Category of Shareholders Shareholding at the beginning of the year - 2019 Shareholding at the end of the year - 2020 % Change
No Demat Physical Total % of Demat Physical Total % of during the year
Total Shares Total Shares
(A) Shareholding of Promoter and
Promoter Group
[1] Indian
(a) Individuals / Hindu Undivided 38797918 0 38797918 57.9181 38830977 0 38830977 57.9674 0.0493
Family
Director’s Report (Contd.)

(b) Central Government / State Gov- 0 0 0 0.0000 0 0 0 0.0000 0.0000

ernment(s)

Ahluwalia Contracts (India) Limited

(c) Financial Institutions / Banks 0 0 0 0.0000 0 0 0 0.0000 0.0000
(d) Any Other (Specify)
Bodies Corporate 25000 0 25000 0.0373 25000 0 25000 0.0373 0.0000
Sub Total (A)(1) 38822918 0 38822918 57.9554 38855977 0 38855977 58.0048 0.0494
[2] Foreign
(a) Individuals (Non-Resident Individ- 0 0 0 0.0000 0 0 0 0.0000 0.0000
uals / Foreign Individuals)
(b) Government 0 0 0 0.0000 0 0 0 0.0000 0.0000
(c) Institutions 0 0 0 0.0000 0 0 0 0.0000 0.0000
(d) Foreign Portfolio Investor 0 0 0 0.0000 0 0 0 0.0000 0.0000
(e) Any Other (Specify)
Sub Total (A)(2) 0 0 0 0.0000 0 0 0 0.0000 0.0000
Total Shareholding of Promoter 38822918 0 38822918 57.9554 38855977 0 38855977 58.0048 0.0494
and Promoter Group(A)=(A)
(1)+(A)(2)
(B) Public Shareholding
[1] Institutions
(a) Mutual Funds / UTI 13623324 0 13623324 20.3371 15376998 0 15376998 22.9550 2.6179
(b) Venture Capital Funds 0 0 0 0.0000 0 0 0 0.0000 0.0000
(c) Alternate Investment Funds 378752 0 378752 0.5654 175000 0 175000 0.2612 -0.3042
(d) Foreign Venture Capital Investors 0 0 0 0.0000 0 0 0 0.0000 0.0000
(e) Foreign Portfolio Investor 11288090 0 11288090 16.8510 10394478 0 10394478 15.5170 -1.3340
(f) Financial Institutions / Banks 5861 0 5861 0.0087 6787 0 6787 0.0101 0.0014
(g) Insurance Companies 0 0 0 0.0000 34340 0 34340 0.0513 0.0513
(h) Provident Funds/ Pension Funds 0 0 0 0.0000 0 0 0 0.0000 0.0000
(i) Any Other (Specify)
Sub Total (B)(1) 25296027 0 25296027 37.7623 25987603 0 25987603 38.7947 1.0324
 Sr. Category of Shareholders Shareholding at the beginning of the year - 2019 Shareholding at the end of the year - 2020 % Change
No Demat Physical Total % of Demat Physical Total % of during the year
Total Shares Total Shares
[2] Central Government/ State Gov-
ernment(s)/ President of India
Sub Total (B)(2) 0 0 0 0.0000 0 0 0 0.0000 0.0000
[3] Non-Institutions
(a) Individuals
(i) Individual shareholders holding 1150684 77980 1228664 1.8342 973285 65265 1038550 1.5504 -0.2838
nominal share capital upto ` 1
Lakh.
(ii) Individual shareholders holding 819815 0 819815 1.2238 684015 0 684015 1.0211 -0.2027
nominal share capital in excess of
` 1 Lakh
(b) NBFCs registered with RBI 29783 0 29783 0.0445 0 0 0 0.0000 -0.0445
(c) Overseas Depositories(holding 0 0 0 0.0000 0 0 0 0.0000 0.0000
DRs) (balancing figure)
(d) Any Other (Specify)
IEPF 39827 0 39827 0.0595 27827 0 27827 0.0415 -0.0180
Trusts 2000 0 2000 0.0030 0 0 0 0.0000 -0.0030
Hindu Undivided Family 171853 0 171853 0.2565 22590 0 22590 0.0337 -0.2228
Non Resident Indians (Non Repat) 19042 0 19042 0.0284 17979 0 17979 0.0268 -0.0016
Non Resident Indians (Repat) 34887 0 34887 0.0521 32231 0 32231 0.0481 -0.0040
Clearing Member 5721 0 5721 0.0085 2332 0 2332 0.0035 -0.0050
Bodies Corporate 517023 0 517023 0.7718 318456 0 318456 0.4754 -0.2964
Sub Total (B)(3) 2790635 77980 2868615 4.2823 2078715 65265 2143980 3.2006 -1.0817
Total Public Shareholding(B)=(B) 28086662 77980 28164642 42.0446 28066318 65265 28131583 41.9952 -0.0494
(1)+(B)(2)+(B)(3)
Corporate Overview

Total (A)+(B) 66909580 77980 66987560 100.0000 66922295 65265 66987560 100.0000 0.0000
(C) Non Promoter - Non Public
(C1) Shares Underlying DRs
[1] Custodian/DR Holder 0 0 0 0.0000 0 0 0 0.0000 0.0000
(C2) Shares Held By Employee
Trust
Statutory Reports

[2] Employee Benefit Trust (under 0 0 0 0.0000 0 0 0 0.0000 0.0000

SEBI (Share based Employee
Benefit) Regulations, 2014)
Total (A)+(B)+(C) 66909580 77980 66987560 100.0000 66922295 65265 66987560 100.0000

Annual Report 2019-20

Financial Statements

31
 (ii) Shareholding of Promoters

32
Sr. Shareholder’s Name Shareholding at the beginning of the year - 2019 Shareholding at the end of the year - 2020 % change in
No No.of % of total %of Shares No.of % of total %of Shares shareholding
Shares Shares of the Pledged Shares Shares of the Pledged/ during the
Held company /encumbered to Held company encumbered to year
total shares total shares
1 SUDERSHAN WALIA 22252380 '33.2187 '17.1306 22252380 '33.2187 '17.1306 '0.0000
2 BIKRAMJIT AHLUWALIA 7961198 '11.8846 '6.5535 7994257 '11.9339 '6.5535 '0.0493
3 SHOBHIT UPPAL 4308000 '6.4310 '0.0000 4308000 '6.4310 '0.0000 '0.0000
4 ROHINI AHLUWALIA 2981840 '4.4513 '0.0000 2981840 '4.4513 '0.0000 '0.0000
Director’s Report (Contd.)

5 RACHNA UPPAL 1227500 '1.8324 '0.0000 1227500 '1.8324 '0.0000 '0.0000

Ahluwalia Contracts (India) Limited

6 MUKTA AHLUWALIA 33500 '0.0500 '0.0000 33500 '0.0500 '0.0000 '0.0000
7 VIKAS AHLUWALIA 33500 '0.0500 '0.0000 33500 '0.0500 '0.0000 '0.0000
8 TIDAL SECURITIES PRIVATE LIMITED 25000 '0.0373 '0.0000 25000 '0.0373 '0.0000 '0.0000
Total 38822918 '57.9554 '23.6841 38855977 '58.0048 '23.6841 '0.0494
 (iii) Shareholding Pattern of Top Ten Shareholders
Sr. Name & Type of Transaction Shareholding at the beginning of the Transactions during the year Cumulative Shareholding at the end of
No year - 2019 the year - 2020
No. of % of Total Shares Date of No. of No. of % of Total Shares
Shares Held of The Company Transaction Shares Shares Held of The Company
1 DSP EQUITY & BOND FUND 6284417 9.3815 6284417 9.3815
Purchase 05 Apr 2019 35879 6320296 9.4350
Purchase 01 Apr 2019 9324 6329620 9.4489
Purchase 19 Apr 2019 13653 6343273 9.4693
AT THE END OF THE YEAR 6343273 9.4693
2 NALANDA INDIA EQUITY FUND LIMITED 3870102 5.7773 3870102 5.7773
AT THE END OF THE YEAR 3870102 5.7773
3 FRANKLIN INDIA SMALLER COMPANIES 3223420 4.8120 3223420 4.8120
FUND
Purchase 10 Jan 2020 39193 3262613 4.8705
Purchase 20 Mar 2020 891 3263504 4.8718
Purchase 27 Mar 2020 7409 3270913 4.8829
AT THE END OF THE YEAR 3270913 4.8829
4 NALANDA INDIA FUND LIMITED 2765372 4.1282 2765372 4.1282
AT THE END OF THE YEAR 2765372 4.1282
5 AXIS MUTUAL FUND TRUSTEE LIMITED 58393 0.0872 58393 0.0872
A/C AXIS MUTUAL FUND A/C AXIS SMALL
CAP FUND
Purchase 05 Apr 2019 5242 63635 0.0950
Purchase 19 Apr 2019 3492 67127 0.1002
Purchase 26 Apr 2019 22 67149 0.1002
Purchase 03 May 2019 116 67265 0.1004
Corporate Overview

Purchase 24 May 2019 2079 69344 0.1035

Purchase 07 Jun 2019 475 69819 0.1042
Purchase 14 Jun 2019 29041 98860 0.1476
Purchase 21 Jun 2019 20487 119347 0.1782
Purchase 29 Jun 2019 25369 144716 0.2160
Purchase 05 Jul 2019 29304 174020 0.2598
Statutory Reports

Purchase 19 Jul 2019 9146 183166 0.2734

Purchase 26 Jul 2019 12311 195477 0.2918
Purchase 02 Aug 2019 340756 536233 0.8005
Purchase 09 Aug 2019 4239 540472 0.8068
Purchase 16 Aug 2019 21223 561695 0.8385

Annual Report 2019-20

Purchase 23 Aug 2019 17851 579546 0.8652
Financial Statements

33
Purchase 30 Aug 2019 218839 798385 1.1918
34
Sr. Name & Type of Transaction Shareholding at the beginning of the Transactions during the year Cumulative Shareholding at the end of
No year - 2019 the year - 2020
No. of % of Total Shares Date of No. of No. of % of Total Shares
Shares Held of The Company Transaction Shares Shares Held of The Company
Purchase 20 Sep 2019 24723 823108 1.2287
Purchase 27 Sep 2019 2874 825982 1.2330
Purchase 30 Sep 2019 5404 831386 1.2411
Purchase 04 Oct 2019 23288 854674 1.2759
Purchase 11 Oct 2019 87191 941865 1.4060
Purchase 18 Oct 2019 30000 971865 1.4508
Purchase 25 Oct 2019 4518 976383 1.4576
Director’s Report (Contd.)

Ahluwalia Contracts (India) Limited

Purchase 01 Nov 2019 6365 982748 1.4671
Purchase 08 Nov 2019 17797 1000545 1.4936
Purchase 15 Nov 2019 10571 1011116 1.5094
Purchase 06 Dec 2019 1198 1012314 1.5112
Purchase 13 Dec 2019 31749 1044063 1.5586
Purchase 20 Dec 2019 238939 1283002 1.9153
Purchase 27 Dec 2019 62237 1345239 2.0082
Purchase 31 Dec 2019 252432 1597671 2.3850
Purchase 03 Jan 2020 11227 1608898 2.4018
Purchase 10 Jan 2020 173225 1782123 2.6604
Purchase 17 Jan 2020 1527 1783650 2.6627
Purchase 24 Jan 2020 6626 1790276 2.6725
Purchase 31 Jan 2020 17505 1807781 2.6987
Purchase 07 Feb 2020 18574 1826355 2.7264
Purchase 14 Feb 2020 115374 1941729 2.8986
Purchase 28 Feb 2020 27502 1969231 2.9397
Purchase 06 Mar 2020 279927 2249158 3.3576
Purchase 13 Mar 2020 152159 2401317 3.5847
Purchase 20 Mar 2020 28191 2429508 3.6268
Purchase 27 Mar 2020 110884 2540392 3.7923
AT THE END OF THE YEAR 2540392 3.7923
6 FIL INVESTMENTS(MAURITIUS)LTD 1852221 2.7650 1852221 2.7650
AT THE END OF THE YEAR 1852221 2.7650
7 SBI LARGE & MIDCAP FUND 1457428 2.1757 1457428 2.1757
Sale 20 Dec 2019 (220900) 1236528 1.8459
AT THE END OF THE YEAR 1236528 1.8459
 Sr. Name & Type of Transaction Shareholding at the beginning of the Transactions during the year Cumulative Shareholding at the end of
No year - 2019 the year - 2020
No. of % of Total Shares Date of No. of No. of % of Total Shares
Shares Held of The Company Transaction Shares Shares Held of The Company
8 HSBC GLOBAL INVESTMENT FUNDS 1991591 2.9731 1991591 2.9731
- ASIA EX JAPAN EQUITY SMALLER
COMPANIES
Sale 31 Dec 2019 (249777) 1741814 2.6002
Sale 10 Jan 2020 (168429) 1573385 2.3488
Sale 06 Mar 2020 (252220) 1321165 1.9723
Sale 13 Mar 2020 (124862) 1196303 1.7859
Sale 20 Mar 2020 (102339) 1093964 1.6331
AT THE END OF THE YEAR 1093964 1.6331
9 CANARA ROBECO MUTUAL FUND 1008923 1.5061 1008923 1.5061
A/C CANARA ROBECO EQUITY
HYBRID FUND
Purchase 19 Apr 2019 2378 1011301 1.5097
Purchase 26 Apr 2019 4251 1015552 1.5160
Purchase 24 May 2019 6480 1022032 1.5257
Purchase 31 May 2019 15000 1037032 1.5481
Sale 26 Jul 2019 (100000) 937032 1.3988
Sale 02 Aug 2019 (308672) 628360 0.9380
Sale 04 Oct 2019 (35866) 592494 0.8845
Sale 08 Nov 2019 (19805) 572689 0.8549
Sale 06 Dec 2019 (93500) 479189 0.7153
Sale 13 Dec 2019 (26710) 452479 0.6755
Corporate Overview

AT THE END OF THE YEAR 452479 0.6755

Statutory Reports

Annual Report 2019-20

Financial Statements

35
36
Sr. Name & Type of Transaction Shareholding at the beginning of the Transactions during the year Cumulative Shareholding at the end of
No year - 2019 the year - 2020
No. of % of Total Shares Date of No. of No. of % of Total Shares
Shares Held of The Company Transaction Shares Shares Held of The Company
10 INVESCO TRUSTEE PRIVATE 17278 0.0258 17278 0.0258
LIMITED-A/C INVESCO INDIA
SMALLCAP FUND
Purchase 03 May 2019 4783 22061 0.0329
Purchase 17 May 2019 6239 28300 0.0422
Purchase 26 Jul 2019 102896 131196 0.1959
Director’s Report (Contd.)

Purchase 13 Sep 2019 3334 134530 0.2008

Ahluwalia Contracts (India) Limited

Purchase 20 Sep 2019 57011 191541 0.2859
Purchase 06 Dec 2019 137737 329278 0.4916
Purchase 07 Feb 2020 3078 332356 0.4961
Purchase 28 Feb 2020 3355 335711 0.5012
Purchase 06 Mar 2020 34478 370189 0.5526
Purchase 13 Mar 2020 47362 417551 0.6233
AT THE END OF THE YEAR 417551 0.6233
11 L&T MUTUAL FUND TRUSTEE 462365 0.6902 462365 0.6902
LIMITED-L&T BUSINESS CYCLES
FUND
Sale 04 Oct 2019 (24900) 437465 0.6531
Sale 28 Feb 2020 (20300) 417165 0.6227
Sale 06 Mar 2020 (49156) 368009 0.5494
AT THE END OF THE YEAR 368009 0.5494
12 IDFC INFRASTRUCTURE FUND 458554 0.6845 458554 0.6845
Sale 29 Jun 2019 (698) 457856 0.6835
Sale 05 Jul 2019 (27856) 430000 0.6419
Sale 02 Aug 2019 (29591) 400409 0.5977
Sale 30 Aug 2019 (50000) 350409 0.5231
Sale 18 Oct 2019 (55409) 295000 0.4404
Sale 20 Dec 2019 (30000) 265000 0.3956
Sale 28 Feb 2020 (8163) 256837 0.3834
Sale 06 Mar 2020 (60446) 196391 0.2932
AT THE END OF THE YEAR 196391 0.2932
Note: 1. Paid up Share Capital of the Company (Face Value ` 2.00) at the end of the year is 66987560 Shares.
2. The details of holding has been clubbed based on PAN.
3. % of total Shares of the Company is based on the paid up Capital of the Company at the end of the Year.
 (iv) Shareholding of Directors & KMP
Sl. For Each of the Directors & KMP Shareholding at the beginning/ending Date Increase / Reasons Cumulative Shareholding during the
No of the Year Decrease in year
No. of Shares % of total shares Shareholding No. of Shares % of total shares
of the Company of the Company
1 RAJENDRA PRASHAD GUPTA
-Director
At the beginning of the year 0 0 - No Change - 0 0
At the end of the year 0 0 - No Change - 0 0
2 BIKRAMJIT AHLUWALIA -
Managing Director
At the beginning of the year 79,61,198 11.88 23-08-19 21613 Purchase from 79,94,257 11.93
30-08-19 10981 market
06-09-19 465
At the end of the year 79,94,257 11.93 - - - 79,94,257 11.93
3 VIKAS AHLUWALIA - Whole-Time
Director
At the beginning of the year 33500 0.05 - No Change - 33500 0.05
At the end of the year 33500 0.05 - No Change - 33500 0.05
4 SHOBHIT UPPAL - Whole-Time
Director
At the beginning of the year 43,08,000 6.43 - No Change - 43,08,000 6.43
At the end of the year 43,08,000 6.43 - - - 43,08,000 6.43
5 ARUN KUMAR GUPTA - Director
At the beginning of the year 0 0 - No Change - 0 0
At the end of the year 0 0 - - - 0 0
6 SUSHIL CHANDRA - Director
At the beginning of the year 0 0 - No Change - 0 0
At the end of the year 0 0 - - - 0 0
7 MOHINDER SAHLOT - Director
At the beginning of the year 0 0 - No Change - 0 0
Corporate Overview

At the end of the year 0 0 - - - 0 0

8 SANJIV SHARMA - Whole-Time
Director
At the beginning of the year 0 0 - No Change - 0 0
At the end of the year 0 0 - - - 0 0
9 VIPIN KUMAR TIWARI -
Company secretary
Statutory Reports

At the beginning of the year 0 0 - No Change - 0 0

At the end of the year 0 0 - - - 0 0
10 SATBEER SINGH -
Chief Financial Officer
At the beginning of the year 0 0 - No Change - 0 0

Annual Report 2019-20

At the end of the year 0 0 - - - 0 0
Financial Statements

37
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
(` in Lakhs)
Secured Loans Unsecured Deposits Total
Excluding Loans Indebtedness
Deposits
Indebtness at the beginning of the financial year
i) Principal Amount 3,113.84 2,997.13 - 6,110.97
ii) Interest due but not paid 0.67 - 0.67
iii) Interest accrued but not due - - - -
Total (i+ii+iii) 3,114.51 2,997.13 - 6,111.64
Change in Indebtedness during the financial year
Additions - - - -
Reduction 626.16 747.13 - 1,373.29
Net Change - - - -
Indebtedness at the end of the financial year
i) Principal Amount 2,487.77 2,250.00 - 4,737.77
ii) Interest due but not paid 0.58 - - 0.58
iii) Interest accrued but not due - - - -
Total (i+ii+iii) 2,488.35 2,250.00 - 4,738.35

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
(Amount ` in Lakhs)
Particulars of Remuneration Name of MD/WTD/Manager
Gross salary Bikramjit Shobhit Sanjiv Vikas Vinay Pal
Ahluwalia- Uppal-WTD Sharma-WTD Ahluwalia - WTD
CMD/CEO WTD
Salary as per ` 126.00 ` 168.00 ` 27.20 ` 60.00 ` 10.90
Provisions contained in section 17(1) Per Annum (Per Annum) (8 Months)* (Per Annum) (2 Months)**
of the Income-tax Act, 1961
Value of perquisites u/s 17(2) of the - - - -
Income-tax Act, 1961
Profits in lieu of salary under section - - - -
17(3) of the Income-Tax Act, 1961
Stock Option - - - -
Sweat Equity - - - -
Commission - - - -
Others - - - -
TOTAL ` 126.00 ` 168.00 ` 27.20 ` 60.00 ` 10.90
Ceiling as per the Act ` 126.00 ` 168.00 ` 27.20 ` 60.00 ` 10.90
(being 10% of the net profits of the Company calculated as per Section 198 of the Companies Act, 2013)
*Mr. Sanjiv Sharma was appointed as Whole Time Director w.e.f. 01-08-2019 and his remuneration is ` 3.40 Lakhs
per Month
**Mr. Vinay Pal has resigned as Whole Time Director w.e.f. 31-05-2019 and his remuneration is ` 5.45 Lakhs per
Month

38 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

B. Remuneration to other Directors

(Amount ` in Lakhs)
Sl. Particulars of Remuneration Name of the Directors
No
1 Independent Directors Mr. Arun Kumar Mr. Rajendra Dr. Sushil Dr. Mohinder
Gupta Prashad Gupta Chandra Sahlot
(a) Fee for attending board committee meetings ` 2.40 ` 1.00 ` 2.40 ` 2.20
(b) Commission - - - -
(c) Others, please specify - - - -
Total (1) ` 2.40 ` 1.00 ` 2.40 ` 2.20
2 Other Non-Executive Directors - - - -
(a) Fee for attending board committee meetings - - - -
(b) Commission - - - -
(c) Others, please specify. - - - -
Total (2) - - - -
Total (B)=(1+2)
Total Managerial Remuneration ` 2.40 ` 1.00 ` 2.40 ` 2.20
Ceiling as per the Act (@ 11% of profits - - - -
calculated under Section 198 of the Companies
Act, 2013)

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD

(Amount ` in Lakhs)
Sl. Particulars of Remuneration Name of the Directors
No.
Gross Salary Chief Financial Company
Officer (CFO) Secretary (CS)
(Satbeer Singh) (Vipin Kumar
Tiwari)
(a) S
 alary as per provisions contained in section 17(1) of the Income- ` 29.98 ` 21.47
tax Act, 1961 Per Annum Per Annum
(b) Value of perquisites u/s 17(2) of the Income-tax Act, 1961 - -
(c) P
 rofits in lieu of salary under section 17(3) of the Income-tax - -
Act, 1961
Stock Option - -
Sweat Equity - -
Commission - -
Others - Medical – Cars ` 0.32 ` 0.32
- Interest Concession on loan - -

Annual Report 2019-20 39

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES
(Amount ` in Lakhs)
Type Section of the Brief Details of Penalty/ Authority Appeal
Companies Description Punishment/ (RD/NCLT/ made if
Act Compounding Fees Court) any (give
imposed details)
A. COMPANY - - - - -
Penalty
Punishment
Compounding
B. DIRECTORS - - - - -
Penalty
Punishment
Compounding
C. OTHER OFFICERS IN DEFAULT - - - - -
Penalty
Punishment
Compounding

On behalf of the Board

For Ahluwalia Contracts (India) Ltd
Sd/-
Bikramjit Ahluwalia
Date: 14-08-2020 Chairman & Managing Director
Place: New Delhi DIN: 00304947

40 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Annexure - F
Form No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31st MARCH, 2020
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and Remuneration
Personnel) Rules, 2014]

To
The Members,
Ahluwalia Contracts (India) Limited
(CIN: L45101DL1979PLC009654)
A-177, Okhla Industrial Area, Phase I,
New Delhi- 110049.

I have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate
practices by Ahluwalia Contracts (India) Limited (CIN:L45101DL1979PLC009654) (hereinafter called the Company). Secretarial
Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts /statutory compliances
and expressing my opinion thereon.
Based on my verification of the Company’s books, papers, minute books, forms and returns filed and other 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, I hereby report that in my opinion, the Company has during the audit period covering the financial year
ended on 31st March, 2020 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:
I have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the
financial year ended on 31st March, 2020, according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the Rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):-
(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 on Insider Trading) Regulations, 1992;
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009; (Not
Applicable as the Company has not issued any securities);
(d) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee stock Purchase Scheme)
Guidelines, 1999; (Not Applicable as the Company has not issued any Employee Stock Option securities during the financial
year);
(e) The Securities and Exchange Board of India (Issue and listing of Debt Securities) Regulations, 2008 (Not Applicable as
the Company has not issued any debt securities);
(f) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (Not Applicable as the
Company has not de-listed its securities during the Financial Year); and
(g) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998 (Not Applicable as the Company
has not bought back any security during the Financial Year);

Annual Report 2019-20 41

Director’s Report (Contd.)

I have also examined compliance with the applicable clauses of the following:
(a) Secretarial Standards issued by The Institute of Company Secretaries of India.
(b) The SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015 and the Listing Agreements entered into
by the Company with the Stock Exchanges.
I report that, during the period under review, the Company has complied with the provisions of the Acts, Rules, Regulations,
Guidelines, standards, etc. mentioned above.
I further report that the Board of Directors of the Company is duly constituted with proper balance of Executive Directors,
Non-Executive Directors, Women Director and Independent Directors. However, the composition of the Audit Committee of the
Company was not proper for the period from 1st April, 2019 to 23rd July, 2019.
Adequate notice is 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.
All decisions at Board Meetings and Committee meetings were carried out unanimously as recorded in the minutes of the
meetings of the Board of Directors or Committee of the Board respectively.
I further report that, based on the information provided by the Company, its’ officers and Authorized Representatives during
the conduct of the Audit, in my opinion, adequate systems, processes and control mechanism exist in the Company to monitor
& ensure compliance with applicable General laws like Labour Laws, Competition law & Environmental laws.
I further report that, the compliance by the Company of applicable financial laws, like Direct & Indirect Tax laws, has not been
reviewed in this Audit since the same have been subject to review by Statutory Auditor and other designated professionals.
I further report that there are adequate systems and processes in the Company commensurate with the size and operations of
the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
I further report that during the period under review, the Company has taken the following decisions which have major bearing
on the Company’s affair in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc.:
1. Mr. Arun Kumar Gupta (DIN: 00371289) and Mr. Sushil Chandra (DIN: 00502167) were re-appointed as Independent
Directors of the Company for another period of 5 years w.e.f. 1st April, 2019 to 31st March, 2024.
2. Dr. Mohinder Sahlot (DIN: 01363530) was reappointed as an Independent Director of the Company for another period
of 1 year subject to the approval of Members in the ensuing Annual General Meeting of the Company.

For Santosh Kumar Pradhan

(Company Secretaries)
Santosh Kumar Pradhan
FCS No.: 6973
Date:13/08/2020 C P No.: 7647
Place: Ghaziabad UDIN: F006973B000577213

Note: This report is to be read with our letter of even date which is annexed as ‘ANNEXURE A’ and forms an integral part of this
report

42 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Annexure - A

To
The Members,
Ahluwalia Contracts (India) Limited
(CIN: L45101DL1979PLC009654)
A-177, Okhla Industrial Area, Phase I,
New Delhi- 110049.

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

1. Maintenance of secretarial record is the responsibility of the management of the Company. My responsibility is to express an
opinion on these Secretarial records based on our audit.
2. I have followed the audit practices and processes 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. I believe that the processes and practices I followed provide a reasonable basis for my opinion.
3. I have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
4. The Compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of
management. My examination was limited to the verification of procedures on test basis.
5. 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.

For Santosh Kumar Pradhan

(Company Secretaries)
Santosh Kumar Pradhan
FCS No.: 6973
Date:13/08/2020 C P No.: 7647
Place: Ghaziabad UDIN: F006973B000577213

Annual Report 2019-20 43

Business Responsibility Report (Brr)
Ahluwalia Contracts (India) Limited (“ACIL” or the “Company”) is aware of and committed to fulfilling its economic, environmental,
and social responsibilities while conducting its business. ACIL emphasizes on improving social relations with the community in
which it operates and generating economic value.
Regulation 34(2)(f ) of the Securities and Exchange Board of India (“SEBI”) ( Listing Obligations and Disclosure Requirements)
Regulations, 2015 prescribes that the annual report of top one thousand (1,000) companies based on market capitalization
(calculated as on March 31 of every financial year) as per BSE/ NSE shall contain a Business Responsibility Report (“BRR”)
describing the initiatives taken by them from an environmental, social and governance perspective, in the format as specified by
SEBI from time to time.
This Report provides a broad overview of the activities carried out by ACIL against the nine principles outlined in the format as
specified by SEBI.

SECTION A: GENERAL INFORMATION ABOUT THE COMPANY

Disclosures Information Reference sections

Corporate Identity Number (CIN) of the Company L45101DL1979PLC009654
Name of the Company Ahluwalia Contracts (India) Ltd
Registered Address: A-177, Okhla Industrial Area
Phase-1, New Delhi 110020, India
Website: www.acilnet.com
E-mail id: cs.corpoffice@acilnet.com
Financial Year Reported 1st April, 2019 to 31st March, 2020
Sector(s) that the Company is engaged in (industrial ACIL is an Engineering, Procurement and Construction (EPC) Company,
activity code-wise) engaged in the business of Construction of Buildings (Residential and
Commercial complexes, Information Technology (IT) Parks, Institutional
Buildings, Hospitals and Corporate metro station and depot, power
plants and automated car parking lot, townships, BOT projects, urban
infrastructure, etc.)

Industrial Group* Description

410 Construction of Building
* As per National Industrial Classification - The Ministry of Statistics and Programme Implementation.

Disclosures Information Reference sections

List three key products/services that the Company Construction of Buildings (Residential and Commercial complexes,
manufactures/ provides (as in balance sheet) Information Technology (IT) Parks, Institutional Buildings, Hospitals and
Corporate metro station and depot, power plants and automated car
parking lot, townships, BOT projects, urban infrastructure, etc.)
Total number of locations where business activity Number of International Locations: Nil
is undertaken by the Company: Number of National Locations: Presently the Company is executing
various projects across PAN India in around 10 states
Markets served by the Company: Local as well as State, ACIL executes projects PAN India - National
National / International

44 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Business Responsibility Report (Brr) (Contd.)

SECTION B: FINANCIAL DETAILS OF THE COMPANY

No Disclosures Information Reference sections

1 Paid up Capital ` 13.39 Crores
2 Total Turnover (INR) ` 1,895.37 Crores
3 Total profit after taxes (INR) ` 64.45 Crores
4 Total Spending on Corporate Social Responsibility The Company’s total expenditure on CSR activities for the year
(CSR) as percentage of profit after tax (%) ended 31st March, 2020 is ` 68.06 Lakhs, which is less than the
prescribed 2% of average net profit of last three years computed
as per the provision of the Companies Act, 2013 .
During the year, it was considered pragmatic to spend CSR
amount in the healthcare, education sector and skill development
program, however, the Company has not been able to find the
right and able projects to deploy the balance amount as per
the provisions of Companies Act, 2013, wisely and effectively.
The Company is actively looking to identify additional projects to
increase its CSR spending.
5 List the activities as per Schedule VII of Company The Company undertook various activities during the year under
Act, 2013 in which expenditure in 4 above has been review in line with its CSR Policy and as prescribed in Schedule
incurred VII of the Companies Act, 2013. During the year under review,
the major CSR activities were carried out in the following field:
a. Education;
b. Health Promotion;
c. Skill Development; and
d. Covid-19 – Disaster

SECTION C: OTHER DETAILS

No Disclosures Information Reference sections

1 Does the Company have any Subsidiary Company/ Yes, the Company has 5 Subsidiary Companies.
Companies
2 Do the Subsidiary Company/ Companies participate Yes, BR initiatives of the Parent Company are applicable to the
in the Business Responsibility (BR) Initiatives of the subsidiary companies to the extent that they are material in
parent company? If yes, then indicate the number of relation to the business operations of the Subsidiaries.
such subsidiary company’s
3 Do any other entity/entities (e.g. suppliers, distributors No other entities are required to participate in the BR initiative
etc.) that the Company does business with, participate of the Company.
in the BR initiatives of the Company? If yes, then
indicate the percentage of such entity/entities? [Less
than 30%, 30-60%, More than 60%]

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Business Responsibility Report (Brr) (Contd.)

SECTION D: BR INFORMATION - Details of Directors/ Directors responsible for BR

No. Particulars Details

(a) Details of the Director/ Directors responsible for
implementation of the BR policy / policies
1 DIN Number 00305175
2 Name Mr. Vikas Ahluwalia
3 Designation Whole Time Director
(b) Details of the BR head
1 Din Number Not Applicable
2 Name Mr. Sanjay Kumar Agarwal
3 Designation Addl. General Manager (F & A)
4 Telephone Number +91-9830879309
5 E-mail ID sanjayagrawal@acilnet.com

Principle-wise (as per NVGs) BR Policy/policies

a) Details of compliance (Reply in Y/N)
Sr. Questions
vulnerable and marginalized
Interests of all stakeholders,
Well-being of all employees

Protection of Environment
Sustainable & Safe Goods

especially disadvantaged,

equitable development
Ethics, Transparency and

Inclusive growth and

Promote Human Rights

Provide value to
customers and
Policy Advocacy
Accountability

and Services

stakeholders

Consumers
P1 P2 P3 P4 P5 P6 P7 P8 P9
1 Do you have a policy / policies Y Y Y Y Y Y Y Y Y
for
2 Has the policy being Y Y Y Y Y Y Y Y Y
formulated in consultation with
the relevant stakeholders?
3 Does the policy conform to Y Y Y Y Y Y Y Y Y
any national / international
standards? If yes, specify? (50
words)*
4 Has the policy been approved Y Y Y Y Y Y Y Y Y
by the Board? If yes, has it
been signed by MD/ owner/
CEO/ Appropriate Board
Director?
5 Does the company have a N N N N N N N N N
specified committee of the
Board/ Director/ Official to
oversee the implementation of
the policy?

46 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Business Responsibility Report (Brr) (Contd.)

Sr. Questions

vulnerable and marginalized

Interests of all stakeholders,
Well-being of all employees

Protection of Environment
Sustainable & Safe Goods

especially disadvantaged,

equitable development
Ethics, Transparency and

Inclusive growth and

Promote Human Rights

Provide value to
customers and
Policy Advocacy
Accountability

and Services

stakeholders

Consumers
P1 P2 P3 P4 P5 P6 P7 P8 P9
6 Indicate the link for the policy Y Y Y Y Y Y Y Y Y
to be viewed online?
7 Has the policy been formally Y Y Y Y Y Y Y Y Y
communicated to all relevant
internal and external
stakeholders?
8 Does the company have in- Y Y Y Y Y Y Y Y Y
house structure to implement
the policy /policies
9 Does the Company have Y Y Y Y Y Y Y Y Y
a grievance Redressal
mechanism related to the
policy/ policies to address
stakeholders’ grievances
related to the policy / policies?
10 Has the company carried out Y Y Y Y Y Y Y Y Y
independent audit /evaluation
of the working of this policy by
an internal or external agency?
* The policies confirms to the provisions of the Companies Act, 2013. In addition, relevant policies are also in conformity with
international standards such as ISO 14001, ISO 45001: 2018.

b. If answer to the question at serial number 1 against any principle, is ‘No’, please explain why: (Tick up to 2 options): Not
Applicable
Principle-wise (as per NVGs) BR Policy/policies

No. Question Details

1 Do you have a policy /policies for Yes, the Company has adopted Code of Business Conduct and
Ethics for Directors and Senior Management Personnel, which
sets out the principle and practices that must be observed towards
our Business Partner and third Party agencies.

2 Has the policy being formulated in consultation with Yes, rights and obligations of concerned stakeholders are analysed
the relevant stakeholders? in view of best Industry Practices, while formulating the policy
documents.

3 Does the policy conform to any national/ international The policies confirms to the provisions of the Companies Act,
standards? If yes, specify? 2013. In addition, relevant policies are also in conformity with
international standards such as ISO 14001, ISO 45001: 2018,

4 Has the policy been approved by the Board? If yes, has All Statutory Policies and Codes are adopted considering prevailing
it been signed by MD/ Owner/ CEO/ appropriate Board Legal requirements and approvals of respective authority levels i.e.
Director? Board of Directors, its Committees and Company Management.

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Business Responsibility Report (Brr) (Contd.)

No. Question Details

5 Does the Company have a specified committee of the There is no specific committee for implementation of policy, But it
Board/ Director/ Official to oversee the implementation is proposed to set up such committees in near future.
of the policy?

6 Indicate the link for the policy to be viewed online? www.acilnet.com

7 Has the policy been formally communicated to all Yes, the policies are communicated to all the relevant stakeholders
relevant internal and external stakeholders? and awareness programmes, workshops and e-learning modules
including tests and certification are administered which are
mandatory for all relevant employees.

8 Does the Company have in-house structure to Yes

implement the policy/ policies

9 Does the Company have a grievance redressal Compliance Management System of ACIL with Vigil Mechanism
mechanism related to the policy/policies to address / Whistle-Blower Policies are effective tool towards grievance
stakeholders’ grievances related to the policy/ policies? redressal mechanism

10 Has the Company carried out independent audit/ The Company has carried out audits as applicable for the
evaluation of the working of this policy by an internal respective policies.
or external agency?

Government Related to BR

No. Particulars Details

a Indicate the frequency with which the Board of Annually

Directors, Committee of the Board or CEO to assess the
BR performance of the Company. Within 3 months/ 3-6
months/ Annually/ More than 1 year

b Does the Company publish a BR or a Sustainability This Report comprises the Company’s Business Responsibility
Report? What is the hyperlink for viewing this report? Report as per the NVGs* and as required under the SEBI (Listing
How frequently it is published? Obligations and Disclosure Requirements) Regulations, 2015
which is published as a part of Annual Report. The Company will
publishes BR Report annually. The Company currently does not
publish a separate Sustainability Report.
The Hyperlink for viewing the Report is www.acilnet.com
*National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business released by the Ministry of
Corporate Affairs, Government of India

48 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Business Responsibility Report (Brr) (Contd.)

SECTION E: PRINCIPLE-WISE PERFORMANCE

Principle 1: Businesses should conduct and govern themselves with Ethics, Transparency and Accountability:
No. Particulars Details
1 Does the policy relating to ethics, bribery and corruption Yes. The Company has adopted Code of Business Conduct and
cover only the Company. Does it extend to the Group / Ethics (the “Code”) for Directors, Senior and other Managerial
Suppliers / Contractors / Others? Personnel and staff of its divisions, and subsidiaries. The Code
serves as a roadmap across all levels and grades for conducting
business in accordance with the highest standards of business
ethics and complying with applicable laws, rules and regulations.
The Code also prescribes these adequate control measures in place
to address the issues relating to ethics, bribery and corruption.
The Code intends to further strengthen transparent business
governance across the Company and how the Company’s
personnel conduct themselves with each other (including
colleagues), its customers, its shareholders, its competitors, its
suppliers, its sub-contractors and other stakeholders.
Further, the Company also has in place Whistle Blower Policy
which serves as a mechanism for its personnel to report any
genuine concerns and to freely communicate their concerns about
illegal or unethical practices, actual or suspected fraud.
2 How many stakeholder complaints have been received The Company has a well-designed mechanism for its stakeholders
in the past financial year. What percentage was to communicate / inform for any inappropriate behaviour /conduct.
satisfactorily resolved by the management During the reporting period, the Company did not receive any
complaints from any of the stakeholders in this matter, hence no
complaint was outstanding as on 31st March, 2020.
Since there were no such complaints received during the period
under review, therefore the question of its resolution does not
arise.

Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle

No. Particulars Details

1 List up to 3 of your products or services whose design Since inception, sustainability has remained at the core of
has incorporated social or environmental concerns, our business strategy. Besides economic performance, safe
risks and/or opportunities operations, environment conservation and social well-being have
always been at the core of our philosophy of sustainable business.
One of the recent project of the Company was awarded a “Five
Star” GRIHA LD rating from Griha Secretariat, an initiative of the
Ministry of New and Renewable Energy, Government of India in the
field of environmentally friendly construction. ACIL complied with
all the mandatory criteria of GRIHA and additional conditions as
were be applicable for Green Building Practices which included:
A. Preserving and protecting the landscape during construction.
B.  ompliance with National Building Code (NBC) norms on
C
construction safety, health and sanitation.
C. Carrying out construction activity in a befitting manner.
D. Adopting measures to prevent Air Pollution at site.
The Company has invested and allocated resources to proactively
adopt and implement business processes to increase its
adherence to environmental standards and pollution control
measures and enhance the safety levels. The Company has
adopted an Environmental Plan, which encourages the Company
to consolidate and improve environmental performance through
formulation and implementation of environment protection
procedures and practices in its operations.

Annual Report 2019-20 49

Business Responsibility Report (Brr) (Contd.)

No. Particulars Details

Our continuous endeavor to go beyond compliance and conserve
natural resources helps to march towards attaining excellence
in environment management and efficient and sustainable
operations.
In providing the services in Construction, Engineering, Integrated
Designs and Project Management System, etc., the Company
ensures reduction in wastes, effective utilization of material and
conservation of energy and water.
2 For each such product, provide the following details The Company, while undertaking any project of Building
in respect of resource use (energy, water, raw material Construction, Engineering Design, etc., it undertakes the
etc.) per unit of product (optional) following key initiatives to achieve cost efficiency and reduce the
consumption of energy and other raw materials:
 eduction during sourcing/ production/ distribution a. Raw Material Consumption
i. R
achieved since the previous year throughout the 
The Company has strictly followed the concept of 3R’s
value chain? (Reduce, Reuse and Recycle) at its various project sites to
ensure effective utilization of Raw Material and minimize the
wastages.
 he first R (Reduce) focusses on environmental aspects during
T
the conception and design development phase, accuracy
in estimation at this phase reduces excess construction
material, leading to lower costs and waste.
Second R (Reuse) focusses on reusing the material, which
involves repeated use of products and components for the
same purpose at other building projects in different locations,
subject to acceptance by / approval of the client.
Lastly the recycling of the material, as and when raw
materials can be recycled major resources are saved.
Recycling is done usually when the material is returned to
its pure state to use for something else.
Most importantly, all of this remains the guiding factor in our
Environment Health and Safety (EHS) Policy, wherein each
site has their respective waste control plan to ensure the
stringent monitoring and controlling of solid wastes.
b. Energy Conservation
Following are some of the initiatives taken by the Company
to achieve cost efficiency and reduce the consumption of
energy:
• Replace incandescent lights with Compact Fluorescent
Lights (CFLs) or Light-Emitting Diodes (LEDs) for
desk lamps and overhead lighting. Using CFLs / LEDs
instead of incandescent bulbs can save about 50% to
80% of the lighting costs.
• Switch off all unnecessary lights, use dimmers, motion
sensors, or occupancy sensors to automatically turn
off lighting when not in use to reduce energy use and
costs.
• Use natural lighting or day lighting. When feasible, turn
off lights near windows
• Use task lighting; instead of brightly lighting an entire
room, focus the light where you need it, to directly
illuminate work areas.

50 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Business Responsibility Report (Brr) (Contd.)

No. Particulars Details

• Use ENERGY STAR products.
• Close or adjust window blinds to block direct sunlight to
reduce cooling needs during warm months. Overhangs
or exterior window covers are most effective to block
sunlight on south-facing windows.
• In winters, open blinds on south-facing windows
during the day to allow sunlight to naturally heat your
workspace. At night, close the blinds to reduce heat
loss.
• Unplug equipment that drains energy when not in use
(i.e. cell phone chargers, fans, coffeemakers, desktop
printers, radios, etc.).
• Replace desktop computers with LCD Monitor or
notebook computers with docking stations.
• Replace Cathode Ray Tube (CRT) monitors with LED or
Liquid Crystal Display (LCD) monitors.
• Coordinate with the vending machine vendor to turn off
advertising lights.
• Install low-flow toilets, urinals, faucets and shower
heads.
• Verify the energy management system switches into
setback mode during unoccupied hours. Also, time
clocks and computer controls may need adjustments
after power outages or seasonal time changes.
• Install meters to track energy use.
c. Water Conservation
At every project site, IMS (Inficon Monitoring System)
for 4R (Reduce Reuse Recycle, Recharge) is followed.
Sedimentation tanks are provided at each batching plant
where the supernatant water is reused for dust suppression.
Desalination plant and waste water treatment plants are
also provided wherever appropriate.
ii. R
 eduction during usage by consumers (energy, Not Applicable. ACIL is not in the business of manufacturing
water) has been achieved since the previous goods or consumable products. Hence savings during the usage
year? by the consumer/ end user is not applicable.
3 Does the Company have procedures in place for The Company has procedures in place for sustainable sourcing.
sustainable sourcing (including transportation). If In fact, the Company encourages its vendors, contractors and
yes, what percentage of your inputs was sourced suppliers for effective implementation of the same. As part
sustainably? of sourcing strategy, priority is given to sourcing of local raw
materials like sand, aggregate, etc., [unless specified otherwise
by client] for construction activity.
In addition, subject to the client’s requirements, the Company
strives to design and construct sustainable projects which
incorporate conservation measures, continuous monitoring of
environment and use of resources that are environment friendly,
adoption of green technologies and deployment of fuel efficient
plants and machineries. The Company’s aim is to make efficient
use of natural resources, eliminating waste, recycling and reusing
the material to the extent possible without compromising quality
and safety. The Company’s priority is to use locally available raw
materials and engage local labour for construction and O&M
activities.

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Business Responsibility Report (Brr) (Contd.)

No. Particulars Details

Around 30% to -40%of inputs which included items like aggregate
sand, wire, bricks and tools etc., were sourced locally.
4 Has the company taken any steps to procure goods The Company strives to establish an effective business relationship
and services from local & small producers, including for sourcing the goods and services from the local community.
communities surrounding their place of work. If yes, Apart from approx. 40% of major raw materials, the remaining
what steps have been taken to improve their capacity items like aggregates, sand etc. are procured locally (except for
and capability of local and small vendors Steel and Cement). Further, general stores materials required for
sites are procured locally which impacts local market’s positively.
The Company regularly interacts with vendors and educates them
about quality standards and their importance to enhance their
approach and understanding of support functions. The Company
also provides opportunities to enhance the capability of local
contractors / service providers.
At the Company’s project sites, steps are undertaken to award
small / petty contracts to local and small contractors pertaining to
job work, equipment hiring (including vehicle), material supplies,
manpower etc., thereby building the capacity / capability at the
local level.
5 Does the company have a mechanism to recycle Yes, the Company has a Waste Management Plan which lays
products and waste out the process of segregation of wastes into Biodegradable,
Hazardous and other Metal and plastic wastes. It also lays out
how to handle, store and dispose of each type of wastes.
Hazardous waste is recycled or disposed of as per statutory
regulations. Used oil is being disposed through authorized
recyclers and batteries are being sent back to the supplier under
buy back option.
Empty tins / Containers / barrels are washed and given to scrap
dealers or returned to the Company from where the material was
purchased.
Scrap and general recyclable materials are disposed through
authorized vendors for recycling.
If yes what is the percentage of recycling of products Material Quantity disposed in FY 2018-19
and waste (separately as <5%, 5-10%, >10%).
Material % Quantity Disposed / Recycled

Reinforcement Steel 3%

Structural Steel 5%

Cement Bags 80%

MS Drums 80%

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Business Responsibility Report (Brr) (Contd.)

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

No. Particulars Details

1 Please indicate the Total number of employees The Company has a total 2,093 number of employees as on
31st March, 2020

2 Please indicate the Total number of employees hired NIL

on temporary/ contractual /casual basis

3 Please indicate the Number of permanent women 35

employees

4 Please indicate the Number of permanent employees NIL

with disabilities

5 Do you have an employee association that is There is no employee association in the Company.
recognized by management

6 What percentage of your permanent employees is Not Applicable

members of this recognized employee association

7 Please indicate the Number of complaints relating to The Company does not employ child labour, forced labour and
child labour, forced labour, involuntary labour, sexual involuntary labour. The Company did not receive any complaint
harassment in the last financial year and pending, as of sexual harassment and discriminatory employment during the
on the end of the financial year period under review

Sr. Category No of complaints filed during No of complaints pending as

No. the financial year on end of the financial year

1 Child labour /forced labour/ involuntary labour NIL NIL

2 Sexual harassment NIL NIL

3 Discriminatory employment NIL NIL

No. Particulars Details

1 What percentage of your under mentioned employees

were given safety & skill up-gradation training in the
last year:

a. Permanent Employees / Workers 100%

b. Permanent Women Employees / Workers 100%

c. Casual/Temporary/Contractual Employees Not Applicable

d. Employees with Disabilities Not Applicable

Annual Report 2019-20 53

Business Responsibility Report (Brr) (Contd.)

Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are
disadvantaged, vulnerable and marginalized:

No. Particulars Details

1 Has the company mapped its internal and external Yes. The Company has mapped the internal and external
stakeholders stakeholders i.e. clients, shareholders, employees, suppliers,
banks and financial institutions, government and regulatory
bodies and the local community.
Whenever the Company sets up a project, it surveys the surrounding
communities and identifies additional key stakeholders.
2 Out of the above, has the company identified the Yes, the Company has identified the disadvantaged, vulnerable
disadvantaged, vulnerable & marginalized stakeholders and marginalized stakeholders, and it works with them towards
inclusive growth.
3 Are there any special initiatives taken by the company The Company is focused on benefiting the disadvantaged,
to engage with the disadvantaged, vulnerable and vulnerable and marginalized communities at or near its project
marginalized stakeholders sites. During the period under review, the Company has through
its projects worked towards the betterment of the communities
with main focus on Rural development, promotion of education,
healthcare and skill development.

Principle 5: Businesses should respect and promote human rights:

No. Particulars Details

1 Does the policy of the company on human rights Yes. The policy of the Company on human rights covers not only
cover only the company or extend to the / Suppliers/ the Company, but also extends to the / Suppliers / Contractors
Contractors/ Others / Others. The Company is committed to complying with all
human rights, practices across all group companies and other
stakeholders associated with the Company
2 How many stakeholder complaints have been received The Company has not received any complaint pertaining to
in the past financial year and what percent was human rights during the year under review.
satisfactorily resolved by the management

Principle 6: Business should respect, protect, and make efforts to restore the environment:

No. Particulars Details

1 Does the policy related to Principle 6 cover only the Yes the policy extends to the Company, as well as the Group,
company or extends to the Group/Joint Ventures/ Subsidiaries and Contractors.
Suppliers/ Contractors/ NGOs/ others
The Group companies, suppliers, contractors dealing with the
Company are encouraged to maintain ethical standards in all
their practices and adhere to the best environmental practices.
The occupational health, safety of employees and protection
of environment is the prime focus of the Company and the
Company at all levels endeavours to preserve and maintain the
health, safety and reduce the harmful effect on the environment
at its construction sites and its neighbourhood.
Moreover, the Company has adopted an Environment
Plan, which encourages the Company to consolidate and
improve environmental performance through formulation and
implementation of environment protection procedures and
practices in its operations.

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No. Particulars Details

2 Does the company have strategies/ initiatives to address Yes, the Company takes initiatives to address environmental
global environmental issues such as climate change, issues.
global warming, etc. If yes, please give hyperlink for Moreover, the Environment Plan adopted by the Company
webpage etc. outlines various measures that are taken in execution of projects
to prevent air pollution, dust and smoke, noise pollution, etc.

3 Does the Company identify and assess potential Yes, the Company identifies and assess risks including
environmental risks. environmental risks. The Company conforms to the ISO
14001:2015 certification for its environmental management
systems and ISO 45001-2018 for occupational health and safety
management.

4 Does the Company have any project related to No

Clean Development Mechanism If Yes, whether any
environmental compliance report is filed

5 Has the company undertaken any other initiatives – Yes. The Company understands the importance of achieving
clean technology energy, efficiency, renewable energy energy efficiency, and effectively utilizes the available clean
etc. technology and renewable energy resources in its business.
If yes, please give hyperlink for web page etc. With specific focus on reducing carbon footprint by reducing
cement content, making portland cement concrete as a
sustainable choice by replacing part of cement with Industrial
by-product (Fly ash / GGBS).
This helps to produce more durable structures with less carbon
footprint and conserves energy.

6 Are the Emissions/Waste generated by the company Yes, the emissions/waste generated by the Company are within
within the permissible limits given by CPCB/SPCB for the permissible limits given by CPCB/SPCB for the financial year
the financial year being reported being reported.

7 Number of show cause/ legal notices received from The Company has not received any show cause or legal notices
CPCB/SPCB which are pending (i.e. not resolved to from CPCB/SPCB. Hence the question of its pendency as on end
satisfaction) as on end of Financial Year of Financial Year does not arise.

Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner:

No. Particulars Details

1 Is your Company a member of any trade and Chamber Yes.

or Association, If Yes, Name only those major ones that National Safety Council
your business deals with.
Indian Building Congress

2 Have you advocated/lobbied through above associations No

for the advancement or improvement of public good? If
Yes, specify the broad areas

Annual Report 2019-20 55

Business Responsibility Report (Brr) (Contd.)

Principle 8: Businesses should support inclusive growth and equitable development:

No. Particulars Details

1 Does the company have specified programmes/ Yes. The Company has a well-crafted Corporate Social
initiatives/ projects in pursuit of the policy related to Responsibility (CSR) policy.
Principle 8. If yes, details thereof. The Company works with the communities surrounding its
business operations with a vision to make a sustainable impact
on the human development of under-served communities through
various initiatives. Based on the needs of the community around
the projects either observed or requested, programs are initiated,
chosen and implemented for the benefit of society.
2 Are the programmes/projects undertaken through in- Platforms are initiated by in-house team and external agencies
house team/own foundation /external NGO/ government for Skill development programs.
structures/ any other organization
3 Have you done any impact assessment of your The Company undertakes impact assessment on a continuous
initiative basis and assess the benefits gained to the community through
its CSR initiatives
4 What is your company’s direct contribution to Presently, the Company do not have any direct contribution to
community development projects- Amount in INR and community development projects
the details of the projects undertaken
5 Have you taken steps to ensure that this community The CSR initiatives are carried out in accordance with the CSR
development initiative is successfully adopted by the Policy of the Company. The Company will take steps according to
community CSR policy in near future.

Principle 9: Businesses should engage with and provide value to their clients and consumers in a responsible manner:

No. Particulars Details

1 What percentage of customer complaints/ consumer Nil
cases are pending as on the end of financial year
2 Does the company display product information on the Not Applicable as the Company is the field of EPC/construction
product label, over and above what is mandated as and provides its services to B2B customers
per local laws
3 Is there any case filed by any stakeholder against the There is no case filed by any stakeholder against the Company
company regarding unfair trade practices, irresponsible regarding unfair trade practices, irresponsible advertising and/or
advertising and/or anti-competitive behaviour during anti-competitive behaviour during the last five years and pending
the last five years and pending as on end of financial as on end of financial year
year
4 Did your Company carry out any client survey/ Yes. Clients Satisfaction surveys are conducted regularly and
consumer satisfaction trends? being carried out as the compliance of QMS (ISO 9001- IMS).

56 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Report on Corporate Governance

OUR CORPORATE GOVERNANCE PHILOSOPHY
Our Corporate Governance is a reflection of our value system encompassing our culture, policies, and relationships with our
stakeholders. Integrity and transparency is Key to our corporate governance practices to ensure that we gain and retain the trust of
our stakeholders at all times. Ahluwalia Contracts (India) Ltd (ACIL), good corporate governance is a way of life and the way we do
our business, encompassing every day’s activities and is enshrined as a part of our way of working.
Our Corporate Governance framework ensures that we make timely disclosures and share accurate information regarding our
financials and performance, as well as disclosures related to the leadership and governance of the Company
As on 31st March, 2020, the Board comprised eight Members, Consisting of one Non-executive and Non-independent chairman,
four executive directors, and four independent directors. An independent director is the chairperson of each of the Board committees
– namely audit committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee and Corporate Social
Responsibility (CSR) committee.
The Company has put in place a good Corporate Governance Policy and confirms its compliance with the applicable regulations of
the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) as amended time to time.
This philosophy is reflected and practiced through the ACIL Code of Conduct (ACILCOC) and the ACIL Code of Conduct for Prevention
of Insider Trading and Code of Corporate Disclosure Practices. Further, these codes allow the Board to make decisions that are
independent of the management. The Company is committed to focus its energies and resources in creating and positively leveraging
shareholders’ wealth and, at the same time, safeguarding the interests of all stakeholders. This is our path to sustainable and
profitable existence and growth.

BOARD OF DIRECTORS Responsibilities of the Board Leadership

Role of the Board of Directors The responsibilities and authority of the Chairman, the CEO
The primary role of the Board is that of trusteeship – to protect & MD, the DMD, WTD, and the lead independent Directors
and enhance shareholder value through strategic direction to are as follows :
the Company. The Chairman leads the Board. As Chairman, he is responsible
• As trustees, the Board has a fiduciary responsibility to ensure for fostering and promoting the integrity of the Board while
that the Company has clear goals aligned to shareholder value nurturing a culture where the Board works harmoniously for
and its growth. the long-term benefit of the Company and all its stakeholders.

• It also directs and exercises appropriate control to ensure The Chairman is primarily responsible for ensuring that the
that the Company is managed in a manner that fulfills Board provides effective governance to the Company. In doing
stakeholders’ aspirations and societal expectations. so, the Chairman presides over meetings of the Board and of
the shareholders of the Company.
• It monitors the effectiveness of the Company’s governance
practices and makes changes as needed. The Chairman takes a lead role in managing the Board and
facilitates effective communication among directors. He is
• It provides strategic guidance to the Company, ensures
responsible for overseeing matters pertaining to governance,
effective monitoring of the Management and is accountable
including the organisation, composition and effectiveness
to the Company and the shareholders. of the Board and its committees, and individual Directors
• It exercises independent judgment on corporate affairs. in fulfilling their responsibilities. The Chairman provides
• It assigns sufficient number of non-executive members of independent leadership to the Board, identifies guidelines
the Board of Directors capable of exercising independent for the conduct and performance of Directors, and oversees
judgment in tasks where there is a potential for conflict of the management of the Board’s administrative activities,
interest. such as meetings, schedules, agendas, communication and
• It reviews and guides corporate strategy, major plans of documentation. The Chairman is also responsible for the
action, risk policy, annual budgets and business plans, overall strategy of the Company.
setting performance objectives, monitoring implementation The composition of the Board is in compliance with the
and corporate performance, and overseeing major capital requirements of the Companies Act, 2013 (Act) and
expenditures, acquisitions and divestments. Regulation 17 of the Listing Regulations, 2015 as amended

Annual Report 2019-20 57

time to time. The profile of the Directors can be accessed on the Company’s management while discharging its fiduciary
the Company’s website at https://www.acilnet.com responsibilities, thereby ensuring that the management
The Board is satisfied that the current composition reflects an adheres to high standards of ethics, transparency and
appropriate mix of knowledge, skills, experience, expertise, disclosure. The Board periodically evaluates the need for
diversity and independence. The Board provides leadership, change in its composition and size.
strategic guidance, an objective and independent view to

The details of the Board of Directors as on as on date of this Report are provided herein below:

Sl. Name of the Category of No. of other No. of Positions No. of Directorship Relationship
Director/ DIN Directorship Directorships Committee held shares in other with other
held in the listed entities Directors
Company (category of
directorship)
Chairperson Member
1 Mr. Bikramjit Executive 3 - - 7994257 - Related to
Ahluwalia Managing Mr. Vikas
DIN:00304947 Director Ahluwalia &
Mr. Shobhit
Uppal
2 Mr. Shobhit Executive NIL - 4 4308000 - Related to
Uppal (whole Time) Mr. Bikramjit
DIN:00305264 Ahluwalia
3 Mr. Vikas Executive 9 - 2 33500 - Related to
Ahluwalia (whole Time) Mr. Bikramjit
DIN:00305175 Ahluwalia
4 Mr. Sanjiv Executive 5 - - - - No
Sharma, (Whole Time)
DIN: 08478247
5 Mr. Arun Kumar Non- 3 2 4 0 Satia No
Gupta Executive Industries
DIN:00371289 Independent Limited
6 Dr. Sushil Non- 1 2 4 0 - No
Chandra Executive
DIN:00502167 Independent
7 Dr. Mohinder Non- 8 1 3 0 - No
Sahlot Executive
DIN:01363530 Independent
8 Mr. Rajendra Non- 3 - 1 0 - No
Prashad Gupta Executive
DIN: 02537985 Independent

CHANGES IN BOARD COMPOSITION

Changes in Board composition during Financial Year 2019-20 and upto the date of this report, are tabled below:

Sl. Name of Directors Nature of Changes Date

1 Mr. Vinay Pal Resigned as Whole time Director 31-May-2019
2 Mr. Rajendra Prashad Gupta Appointed as an Independent Director 24-July-2019
3 Mr. Sanjiv Sharma Appointed as Whole Time Director 01-August-2019

58 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Report on Corporate Governance (Contd.)

BOARD MEETINGS
Six Board meetings were held during the year under review and the gap between two meetings did not exceed 120 days.
Attendance of directors at Annual General Meeting (AGM) and Board Meetings during Financial Year 2020:

Sl. Name of Directors 30-05- 24-07- 14-08- 13-11- 23-01- 14-02- Attendance Attendance
2019 2019 2019 2019 2020 2020 in Board in last AGM
Meeting
1 Mr. Bikramjit Ahluwalia P P P P P P 6/6 Yes
DIN:00304947
2 Mr. Shobhit Uppal P P P P P P 6/6 Yes
DIN:00305264
3 Mr. Vikas Ahluwalia P P P P P P 6/6 Yes
DIN:00305175
4 Mr. Arun Kumar Gupta P P P P P P 6/6 Yes
DIN:00371289
5 Dr. Sushil Chandra P P P P P P 6/6 No
DIN:00502167
6 Dr. Mohinder Sahlot P P P P A P 6/5 Yes
DIN:01363530
7 Mr. Rajendra Prashad Gupta, - P P P A A 5/3 N.A
DIN: 02537985
8 Mr. Sanjiv Sharma, - P P A A A 4/1 N.A
DIN: 08478247

DETAILS OF FAMILIARISATION PROGRAMMES FOR quarterly progress in various operating units, projects under
DIRECTORS INCLUDING INDEPENDENT DIRECTORS construction, etc. Details of the familiarisation program on
The Companies Act, 2013 and the Listing Regulations define cumulative basis are available on the Company’s website
an ‘Independent Director’ as a person who is not a promoter www.acilnet.com
or employee or one of the key managerial personnel of the
CHART SETTING OUT THE SKILLS / EXPERTISE /
Company or its subsidiaries. Further, the person should not
COMPETENCE OF THE BOARD OF DIRECTORS
have a material pecuniary relationship or transactions with
the Company or its subsidiaries, during the two immediate As stipulated under Schedule V of the SEBI Listing Regulations,
preceding financial years or during the current financial year, core skills/expertise/competencies, as required in the context
apart from receiving sitting fee as an independent director. of the business and sector for it to function effectively and
those actually available with the Board have been identified
Based on the disclosures received from all the Independent
by the Board of Directors.
Directors and in the opinion of the Board, the Independent
Directors fulfill the conditions specified in the Companies Act, Sl. Core Skills/Expertise/Competencies
2013, the Listing Regulations, NSE listing manual and are 1 Corporate Management and Leadership Quality
independent of the Management. The Board includes four 2 Knowledge of Construction industry
Independent Directors, out of which one is women. 3 Knowledge of Corporate Finance, Accounting and
Internal Financial Controls
In addition to the above, the Company has an exclusive internal
4 Banking, investment and Forex Management
web-based information portal, which is made available to
5 Experience in Corporate law and Regulatory
all the Directors. This has sections on Company matters,
Compliances in India
Laws & Regulations, Sustainability aspects, Company’s
6 Corporate Governance

Annual Report 2019-20 59

While evaluating the performance of Board as a whole, it experience required for the Board as a whole and for
was ensured that the core skills/competencies of the Board individual members. Board members are expected to possess
Member match with the Core Skills/Competencies matrix set the required qualifications, integrity, expertise and experience
by the Company for running its business effectively and in a for the position. They also possess expertise and insights in
transparent manner: sectors/areas relevant to the Company, and have ability to
Name of the Director Expertise in specific functional area contribute to the Company’s growth.
Mr. Bikramjit Industrialist, Industry Knowledge, APPOINTMENT AND TENURE OF DIRECTORS
Ahluwalia Management skills, Leadership in the
The Directors of the Company are appointed / re-appointed
field of construction industry
by the Board on the recommendations of the Nomination
Mr. Shobhit Uppal Industrialist, Industry Knowledge in
the field of construction, Banking, and Remuneration Committee and approval of the Members
finance, IT at the General Meetings. In accordance with the Articles of
Mr. Vikas Ahluwalia Industrialist, Industry Knowledge in Association of the Company and provisions of the Act, all
the field of construction and Banking, Directors, except the Managing Director and Independent
Finance Directors of the Company, are liable to retire by rotation at
Mr. Sanjiv Sharma Industry Knowledge, Management
the Annual General Meeting (AGM) each year and, if eligible,
skills, Leadership in the field of
construction industry offer themselves for re-election. The Executive Directors on
Mr. Arun Kumar Knowledge in Accounts, Finance, the Board have been appointed as per the provisions of the
Gupta Income Tax, Regulatory Compliances Act and serve in accordance with the terms of their resolution
Mr. R.P.Gupta Knowledge in Construction Industry, passed by the Members of the Company.
Engineering. None of the Independent Director(s) of the Company resigned
Dr. Sushil Chandra Management Skills, Human Resources
before the expiry of their tenure.
Department and Regulatory issues.
Dr. Mohinder Sahlot Knowledge in Legal Matters and As regards the appointment and tenure of Independent
Regulatory Compliances. Directors, following is the policy adopted by the Board:
The Company has adopted the provisions with respect to
BOARD INDEPENDENCE
appointment and tenure of Independent Directors which are
Independent Directors are non-executive directors as defined consistent with the Act and Listing Regulations.
under Regulation 16(1)(b) of the SEBI Listing Regulations
The Independent Directors can serve a maximum of two
read with Section 149(6) of the Act along with rules framed
terms of five years each, after the introduction of the Act.
thereunder. In terms of Regulation 25(8) of SEBI Listing
The Company would not have any upper age limit of
Regulations, they have confirmed that they are not aware
retirement of Independent Directors from the Board and their
of any circumstance or situation which exists or may be
appointment and tenure will be governed by provisions of the
reasonably anticipated that could impair or impact their
Act and the Listing Regulations.
ability to discharge their duties. Based on the declarations
received from the Independent Directors, the Board of The Company shall ensure that the appointment of any Non-
Directors has confirmed that they meet the criteria of Executive Director who has attained the age of 75 years
independence as mentioned under Regulation 16(1)(b) of the is approved by the Members of the Company by way of a
SEBI Listing Regulations and that they are independent of the Special Resolution.
Management. Any person who becomes Director or Officer, including
INDEPENDENT DIRECTOR DATABANK REGISTRATION an employee who is acting in a managerial or supervisory
capacity, shall be covered under Directors’ and Officers’
Pursuant to a notification dated 22nd October, 2019 issued
Liability Insurance Policy. The Policy shall also cover those
by the Ministry of Corporate Affairs, all Independent Directors
who serve as a Director, Officer or equivalent of an outside
have completed the registration with the Independent
entity at Company’s request. The Company has provided
Directors Databank. Requisite disclosures have been received
insurance cover in respect of legal action against its Directors
from the Directors in this regard.
under the Directors’ and Officers’ Liability Insurance.
TERM OF BOARD MEMBERSHIP
PROCEDURE OF BOARD
The Nomination and Remuneration Committee (NRC)
Meetings Schedule, Agenda and participation thereat: The
determines the appropriate characteristics, skills and
Board/Committee meetings are pre-scheduled and a tentative

60 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Report on Corporate Governance (Contd.)

annual calendar of the Board and Committee meetings Mr. Shobhit Uppal, Member
is circulated to the Directors well in advance to help them Mr. Vikas Ahluwalia, Member
plan their schedule and ensure meaningful participation in
Dr. Sushil Chandra, Member
the meetings. The Company Secretary, in consultation with
Dr. Mohinder Sahlot, Member
the Chairman, drafts the agenda for meetings, along with
notes and the same is made available at least seven days in Mr. Rajendra Prashad Gupta, Member
advance to all the Directors for facilitating fruitful and focused All members are well qualified and bring in expertise in
discussions at the meeting. Only in case of urgent business, the fields of finance, accounting, engineering, strategy and
if the need arises, the Board’s/ Committee’s approval is taken management.
by passing resolutions through circulation or by calling Board The Committee met 4 times during the year under review.
Meeting These meetings were held on 30th May 2019, 14th August
COMPLIANCE REPORTS 2019, 13th November 2019 and 14th February 2020, with
The Board periodically reviews the compliance report of the the requisite quorum.
laws applicable to the Company as well as steps taken by the The attendance details of meetings of this Committee are as
Company to rectify the instances of non-compliances, if any. follows:
INFORMATION PROVIDED TO THE BOARD Name of the Director No. of No. of
Meetings held Meetings
The Board has unrestricted access to all Company-related
during tenure Attended
information. At Board/Committee meetings, departmental Mr. Arun Kumar Gupta, 4 4
heads and other technical heads who can provide additional Chairman Audit Committee
insights into the items being discussed, are invited. The Mr. Shobhit Uppal, Member 4 4
Company provides the following information inter alia to the Mr. Vikas Ahluwalia, Member 3 3
Board, which is given either as part of the agenda or by way Dr. Sushil Chandra, Member 4 4
Dr. Mohinder Sahlot, Member 4 4
of presentations during the meetings, as deemed appropriate.
Mr. Rajendra Prashad Gupta, Member 3 2
BOARD COMMITTEES
The CS/ CFO assists the Committee in discharge of its
The Board of Directors have constituted Board Committees responsibilities.
to deal with specific areas and activities which concern the
The Committee invites such employees or advisors as it
Company and requires a closer review. The Board Committees
considers appropriate to attend the meetings. The CFO, the
are formed with approval of the Board and function under their
head of internal audit and Statutory Auditors are generally
respective Charters. These Committees play an important
invited to attend all meetings unless the Committee considers
role in the overall Management of day-to-day affairs and
otherwise. The Company Secretary acts as the Secretary of
governance of the Company. The Board Committees meet
the Committee.
at regular intervals and take necessary steps to perform its
duties entrusted by the Board. The Minutes of the Committee The Chief Internal Auditors and Statutory Auditors of the
Meetings are placed before the Board for noting. Company discuss their audit findings and updates with the
Committee and submit their views directly to the Committee.
STATUTORY COMMITTEES
Separate discussions are held with the Internal Auditors to
The Board has constituted the following statutory Committees focus on compliance issues and to conduct detailed reviews
as on 31-03-2019 of the processes and internal controls in the Company. The
Audit Committee of Directors (AC) permissible non-audit related services undertaken by the
Nomination and Remuneration Committee (NRC) Statutory Auditors are also pre-approved by the Committee.

Corporate Social Responsibility Committee (CSR) The Board has approved the charter of the Audit Committee
defining inter alia its composition, role, responsibilities,
Stakeholders Relationship Committee (SRC)
powers and processes. The Charter is available on the
Risk Management Committee of Directors (RMC)
Company’s Website at www.acilnet.com
AUDIT COMMITTEE OF DIRECTORS
The terms of reference of Audit Committee is as below:
The Committee comprises the following as on date of this
Oversight of the Company’s financial reporting process
Report:
and the disclosure of its financial information to ensure
Mr. Arun Kumar Gupta, Chairman that the financial statement is correct, sufficient and

Annual Report 2019-20 61

 credible; findings and follow-up thereon;
Recommending the appointment, remuneration and Reviewing the findings of any internal investigations by
terms of appointment of statutory auditors, including cost the internal auditors into matters where there is suspected
auditors of the Company; fraud or irregularity or a failure of internal control systems
Approving payment to statutory auditors, including cost of a material nature and reporting the matter to the Board;
auditors, for any other services rendered by them; Discussion with statutory auditors before the audit
Reviewing with the management, the annual financial commences, about the nature and scope of audit as well
statements and auditors report thereon before submission as post audit discussion to ascertain any area of concern;
to the Board for approval, with particular reference to: To look into the reasons for substantial defaults, if
any, in the payment to depositors, debenture holders,
a. Matters required to be included in the Directors’
shareholders (in case of non-payment of declared
Responsibility Statement to be included in the Board’s
dividends) and creditors;
Report in terms of clause (c) of sub-section 3 of Section
134 of the Companies Act, 2013; To review the functioning of the Vigil Mechanism and
Whistle Blower mechanism;
b. Changes, if any, in accounting policies and practices and
reasons for the same; Approval of appointment of CFO (i.e. the whole-time
Finance Director or any other person heading the finance
c. Major accounting entries involving estimates based on the
function or discharging that function) after assessing
exercise of judgement by the management;
qualifications, experience and background, etc. of the
d. Significant adjustments made in financial statements candidate;
arising out of audit findings;
Carrying out any other function as is mentioned in the
e. Compliance with listing and other legal requirements terms of reference of the Audit Committee;
relating to financial statements;
To review the utilisation of loans and/or advances from/
f. Disclosure of any related party transactions; and investment by the holding company in the subsidiary
g. Modified opinion(s) in the draft audit report. exceeding `100 Crores or 10 percent of the asset size of
Reviewing, with the management, the quarterly financial the subsidiary, whichever is lower. The thresholds would
statements before submission to the Board for approval; include existing loans/advances/investments existing as
on 1st April, 2019.
Reviewing and monitoring the auditors’ independence
and performance, and effectiveness of audit process; Reviewing financial statements, in particular the
investments made by the Company’s unlisted subsidiaries;
Approval or any subsequent modification of transactions
of the Company with related parties; Reviewing the following information:

Scrutiny of inter-corporate loans and investments; a. The Management Discussion and Analysis of financial
condition and results of operations;
Valuation of undertakings or assets of the Company,
wherever it is necessary; b. Statement of significant related party transactions
(as defined by the Audit Committee), submitted by
Evaluation of internal financial controls and risk
management;
management systems;
c. Management letters/letters of internal control weaknesses
Reviewing, with the management, the performance of
issued by the statutory auditors;
statutory auditors and internal auditors, adequacy of
internal control systems; d. Internal audit reports relating to internal control
Formulating the scope, functioning, periodicity and weaknesses;
methodology for conducting the internal audit; e. Reviewing the appointment, removal and terms of
Reviewing the adequacy of internal audit function, if any, remuneration of the Chief internal auditor / internal
including the structure of the internal audit department, auditor(s); and statement of deviations:
staffing and seniority of the official heading the (a) quarterly statement of deviation(s) including report
department, reporting structure coverage and frequency of monitoring agency, if applicable, submitted to stock
of internal audit; exchange(s) in terms of Regulation 32(1) of the Securities and
Discussion with internal auditors of any significant Exchange Board of India (Listing Obligations and Disclosure

62 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Report on Corporate Governance (Contd.)

Requirements) Regulations, 2015. (3) devising a policy on diversity of Board of Directors;

(b) Annual statement of funds utilised for purposes other (4) identifying persons who are qualified to become Directors
than those stated in the offer document / prospectus / and who may be appointed in senior management in
notice in terms of Regulation 32(7) of the Securities and accordance with the criteria laid down, and recommend to
Exchange Board of India (Listing Obligations and Disclosure the Board of Directors their appointment and removal.
Requirements) Regulations, 2015. (5) whether to extend or continue the term of appointment
All the recommendations made by the Audit Committee of the Independent Director, on the basis of the report of
during the year under review were accepted by the Board. performance evaluation of Independent Directors.
NOMINATION AND REMUNERATION COMMITTEE (NRC) (6) recommend to the board, all remuneration, in whatever
The Committee comprises the following directors as on date form, payable to senior management.
of this Report: PERFORMANCE EVALUATION CRITERIA FOR
Dr. Sushil Chandra, Chairman INDEPENDENT DIRECTORS

Mr. Arun Kumar Gupta, Member The performance evaluation criteria for Independent Directors
are determined by the Nomination and Remuneration
Dr. Mohinder Sahlot, Member
Committee. An indicative list of factors on which evaluation
The Committee met 3 times during the year under review. was carried out includes participation and contribution by the
These meetings were held on 30th May, 2019, 24th July Director, commitment, effective deployment of knowledge
2019 & 14th August, 2019 with the presence of requisite and expertise, integrity and maintenance of confidentiality
quorum. and independence of behaviour and judgments.
The attendance details of meetings of this Committee are as CORPORATE SOCIAL RESPONSIBILITY COMMITTEE (CSR)
follows:
The Committee comprises the following as on 31st March,
Name of the Director No. of No. of
2020:
Meetings held Meetings
during tenure Attended Dr. Sushil Chandra, Chairman
Dr. Sushil Chandra, Chairman 3 3
Mr. Arun Kumar Gupta, Member
Mr. Arun Kumar Gupta, Member 3 3
Dr. Mohinder Sahlot, Member 3 3 Mr. Shobhit Uppal, Member
In terms of the provisions of Section 178(3) of the Act and During the year under review, no meeting of CSR Committee
Regulation 19(4) read with Part D of Schedule II to the was held.
Listing Regulations, the Committee is responsible for inter alia The Company has adopted a CSR policy which indicates the
formulating the criteria for determining qualification, positive activities to be undertaken by the Company as specified in
attributes and independence of a Director. The Committee Schedule VII to the Act. The policy, including overview of
is also responsible for recommending to the Board a policy projects or programs proposed to be undertaken, is provided
relating to the remuneration of the Directors, Key Managerial on the Company website at www.acilnet.com
Personnel and other employees.
Brief Terms of Reference/Roles and responsibilities:
The Board has also approved the charter of the NRC
Formulate and recommend to the Board, a CSR Policy
defining its composition, powers, responsibilities, reporting,
which shall indicate the activities to be undertaken by
evaluation, etc. The Charter is available on the Company’s
the Company as specified in Schedule VII to the Act or
website at www.acilnet.com
may be prescribed in the rules thereto.
THE BRIEF OF TERMS OF REFERENCE IS AS BELOW
Recommend the amount of expenditure to be incurred
(1) formulation of the criteria for determining qualifications, on the activities referred to in the above clause.
positive attributes and Independence of a Director and
Monitor the CSR Policy of the Company from time to
recommend to the Board of Directors a policy relating to, the
time.
remuneration of the Directors, key managerial personnel and
other employees; STAKEHOLDERS RELATIONSHIP COMMITTEE:

(2) formulation of criteria for evaluation of performance of The Committee comprises the following Directors as on Date
Independent Directors and the Board of Directors; of this Report:

Annual Report 2019-20 63

Dr. Mohinder Sahlot, Chairman development and implementation of risk management
Dr. Sushil Chandra, Member policy has been covered in the Management Discussion and
Analysis, which forms part of this report. The Committee
Mr. Shobhit Uppal, Member
comprises the following Directors as on Date of this Report:
The Committee met 1 times during the year under review.
Mr. Arun Kumar Gupta, Chairman
The meeting was held on 14-08-2019 with the presence of
requisite quorum. Mr. Shobhit Uppal, Member

The attendance details of meetings of this Committee are as Mr. Vikas Ahluwalia, Member
follows: The Committee met 1 times during the year under review.
Name of the Director No. of No. of The meeting was held on 30-06-2020 with the presence of
Meetings held Meetings requisite quorum. (Delay Due to COVID-19)
during tenure Attended
GLOBAL HEALTH PANDEMIC FROM COVID-19
Dr. Mohinder Sahlot, Chairman 1 1
Dr. Sushil Chandra, Member 1 1 The World Health Organisation declared a global pandemic of
Mr. Shobhit Uppal, Member 1 1 the Novel Coronavirus disease (COVID-19) on 11th February,
The Committee specifically discharges duties of servicing and 2020. In enforcing social distancing to contain the spread of
protecting the various aspects of interest of shareholders, the disease, our offices and client offices all over the country
debenture holders and other security holders. have been operating with minimal or no staff for extended
periods of time. To effectively respond to and manage our
The Board has approved the charter of the Committee defining
operations through this crisis, the Company triggered its
its composition, powers, responsibilities, etc. The charter is
business continuity management program, chaired by the Dy.
available on the Company’s website at www.acilnet.com
Managing Director. In keeping with its employee-safety first
The terms of the charter broadly include:
approach, the Company quickly instituted measures to trace
(i) Resolving the grievances of the security holders of all employees and be assured of their well-being.
the listed entity including complaints related to transfer/
Proactive preparations were done in our work locations during
transmission of shares, non-receipt of annual report, non-
this transition to ensure our offices and sites were safe.
receipt of declared dividends, issue of new/duplicate
Approximately 90% of the sites / workforce were enabled in
certificates, general meetings etc.
a rapid manner to work remotely and securely, thus ensuring
(ii) Review of measures taken for effective exercise of voting that client commitments were not materially compromised.
rights by shareholders.
Several initiatives were rolled out to make teams and managers
(iii) Review of adherence to the service standards adopted by effective while working from different locations. Our Health
the listed entity in respect of various services being rendered Safety & Environment Program (HSE) has also launched a
by the Registrar & Share Transfer Agent. ACIL Team of initiatives related to COVID-19 awareness and
(iv) Review of the various measures and initiatives taken the new remote way of working, with a focus on the health
by the listed entity for reducing the quantum of unclaimed and wellness of employees. We have extended support to the
dividends and ensuring timely receipt of dividend warrants/ employees impacted by this pandemic, including those who
annual reports/statutory notices by the shareholders of the tested positive for COVID-19. The Company would implement
Company. a phased and safe return-to-work plan as and when lockdown
restrictions are relaxed.
RISK MANAGEMENT COMMITTEE:
The Company’s focus on liquidity, supported by a strong
The Board of Directors of the Company has formed a Risk
balance sheet and acceleration in cost optimisation initiatives,
Management Committee to frame, implement and monitor
would help in navigating any near-term challenges in the
the risk management plan for the Company.
demand environment.
The Committee is responsible for monitoring and reviewing
HEALTH, SAFETY AND ENVIRONMENT
the risk management plan and ensuring its effectiveness.
The Audit Committee has additional oversight in the area of Health, safety and environment: One of the prerequisites
for conducting business responsibly is a safe, healthy, and
financial risks and controls. The major risks identified by
environment-friendly workplace. Ozone, the Health, Safety and
the businesses and functions are systematically addressed
Environmental Management System (HSEMS) at Ahluwalia’s,
through mitigating actions on a continuing basis. The

64 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Report on Corporate Governance (Contd.)

has evolved over the years into a robust management GENERAL BODY MEETINGS:
system guided by requirements from multiple stakeholders, The details of the last three AGMs of the Company
including clients, vendor partners, law enforcement and
F.Y. Venue Date Time
regulatory bodies, and the communities in which we operate.
2016- Ahlcon Public School 28th September, 4.00 p.m.
There is an increased focus globally on the needs and 17 Auditorium, Mayur Vihar, 2017
environmental issues and occupational health and safety, and Phase-I, Delhi-110091
greater emphasis on compliance with legislations and other 2017- Ahlcon Public School 22nd September, 2.00 p.m.
18 Auditorium, Mayur Vihar, 2018
requirements. Systems have been established in accordance Phase-I, Delhi-110091
with internationally recognised standards / specifications 2018- Ahlcon Public School 25th September, 4.00 p.m.
and Ahluwalia’s is certified to ISO14001:2015 and OHSAS 19 Auditorium, Mayur Vihar, 2019
Phase-I, Delhi-110091
18001:2007 in India locations. Protecting the environment,
providing the right workplace ambience and safeguarding The following Special Resolutions were passed by the
health and safety of personnel, including employees, contract shareholders of the Company in the last years as under:
workers and visitors, are strategic priorities for us. Date of General Relevant Details of Special
Meeting/ Postal ballot/ section Resolutions
The HSE includes well-defined policies and procedures and
12.05.2018 u/s Section Re-Appointment of Mr.
also strives to keep interested parties well-informed, trained 196 & 197 Bikramjit Ahluwalia, as
and committed to our HSE process. Managing Director for three
Years through postal ballot
REMUNERATION OF DIRECTORS 25.09.2019 u/s Section Re-appointment of Mr.
Details of remuneration paid to Non-Executive Director 149 Arun Kumar Gupta, as
Independent Director for
(NEDs) during the financial year 2019-20 are as mentioned five Years
below: 25.09.2019 u/s Section Re-appointment of Mr.
Amount in ` Lakhs 149 Sushil Chandra, as
Independent Director for
Sl. Name of Directors Sitting Fee Paid during the five Years
FY 2019-20
Whether any special resolution passed last year through
1 Mr. Arun Kumar Gupta 2.40
postal ballot and details of voting pattern:
2 Dr. Sushil Chandra 2.40
3 Mr. R.P.Gupta 1.00 One Special Resolution was passed through postal ballot
4 Dr. Mohinder Sahlot 2.20 during the year 2017-18 on 28th March 2018.The Company
Details of remuneration of Managing Director, Dy. Managing followed the procedure for Postal Ballot as per Section 110
Director & Whole Time Directors during FY 2019-20: of the Companies Act, 2013 read with the Rule 22 of the
Companies (Management and Administration) Rule 2014.
Amount in ` Lakhs
The Scrutinizer submitted his report to the Chairman stating
Sl. Name of Directors Salary and Total
that the resolution has been dully passed by the Members
Allowance
1 Mr. Bikramjit Ahluwalia 126.00 126.00 with the requisite majority for re-appointment of Mr. Bikramjit
2 Mr. Shobhit Uppal 168.00 168.00 Ahluwalia, Managing Director of the Company for next three
3 Mr. Vikas Ahluwalia 60.00 60.00 Years.
4 Mr. Sanjiv Sharma 27.20 27.20 The result of the Postal Ballot was declared on 12th May
5 Mr. Vinay Pal 10.90 10.90
2018. Detail of the voting pattern was as under:
STATUS OF INVESTORS COMPLAINTS:
Description of No. of total valid Votes Cast
Status of Investors’ complaints for the financial year 2019-20 Resolution Postal Ballot (No. of shares)
Forms / e-votes For Against
is as under:-
received
Particulars Opening Received Resolved Pending
during the during the (31.03.2020) Re-appointment of Mr. 80 41084257 Nil
year year Bikramjit Ahluwalia,
Managing Director of
Complaints - - - -
the Company for a
period of three Years
Person who conducted the postal ballot exercise: Mr. Santosh

Annual Report 2019-20 65

Kumar Pradhan was appointed as the scrutinizer to conduct QUARTERLY RESULTS
the postal ballot exercise. Quarterly, half yearly and annual financial results of the
Whether any special resolution is proposed to be conducted Company are published in widely circulated national
through postal ballot: No Newspapers as per details given below:
MEANS OF COMMUNICATION: Name of News Paper Region Language
The Company follows April-March as the financial year. Financial Express and Jansatta – 1st Quarter Delhi English
editions and Hindi
The meetings of the Board of Directors for approval of Financial Express and Jansatta – 2nd Quarter Delhi English
quarterly financial results for the financial year ended 31st editions and Hindi
March, 2020 were held on the following dates: Financial Express and Jansatta – 3rd Quarter Delhi English
editions and Hindi
Particulars Date
Financial Express and Jansatta – 4th Quarter Delhi English
Quarter ended 30th June 2019 14-August-2019 (Relaxation By SEBI) editions and Hindi
Quarter/half year ended 30th September 13-November-2019
2019 Post quarterly results, an Investor Conference call is held where
Quarter/nine months ended 31st December 14-February-2020 members of the financial community are invited to participate
2019 in the Q&A session with the Company’s management. The
Quarter/year ended 31st March 2020 30-June-2020 key highlights are discussed and investor/ analyst queries are
(Relaxation By SEBI resolved in this forum. The quarterly results are also uploaded
due to COVID-19)
on the website at www.acilnet.com

GENERAL SHAREHOLDER INFORMATION:

a Details of Annual General Meeting (AGM) Wednesday, 30th day of September 2020 at 3 p.m.
Last date for receipt of Proxy Through Video Conferencing
b Financial Year 2019-20
c Stock Code BSE: 532811, NSE: AHLUCONT, CSE: 011134
d Book Closure From 21st September, 2020 to 30th September, 2020
e E-voting Date 27-09-2020 to 29-09-2020
f International Securities Identification Number (ISIN): INE758C01029
g Corporate Identity Number (CIN): L45101DL1979PLC009654
h Listing on Stock Exchanges NSE, BSE and CSE. This is to confirm that the listing fees
has been paid to all the Stock Exchanges for the Financial
Year 2021-21
Listing of Equity Shares: The Company’s Equity Shares BSE Limited
are listed on two Stock Exchanges in India viz. Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001
National Stock Exchange of India Limited,
Exchange Plaza, Bandra Kurla Complex, Bandra (E),
Mumbai 400 051
Calcutta Stock Exchange Ltd,
7 Lyons Range, Kolkata-700001

66 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Report on Corporate Governance (Contd.)

Market Price Data: Month wise High and Low of the Company’s Equity shares during the last financial year 2019-20 at BSE and
NSE are given below:

Stock Exchanges BSE NSE

Months High Low High Low
April 2019 368.00 311.30 346.55 316.50
May 2019 385.00 300.00 379.95 299.65
June 2019 359.00 320.00 352.00 318.10
July 2019 359.95 288.00 359.00 287.15
August 2019 313.15 266.75 315.00 264.95
September 2019 341.00 265.20 339.00 280.00
October 2019 304.50 264.70 304.40 261.20
November 2019 344.95 266.00 347.60 269.05
December 2019 303.50 268.20 305.00 263.70
January 2020 345.00 281.10 346.00 281.50
February 2020 369.30 304.00 370.00 310.00
March 2020 365.00 166.20 366.00 153.90

Registrars and Share Transfer Agents

Name and Address of Registrar and Share Transfer Agent (RTA)
Link Intime India Private Limited
Noble Heights, 1st Floor, Plot NH 2, C-1, Block LSC, Near Savitri Market, Janakpuri, New Delhi – 110058,
Phone: 011 - 414 10592, 93, 94; Fax : 011 - 414 10591
Email: delhi@linkintime.co.in

SHARE TRANSFER SYSTEM

Effective 1st April, 2019, SEBI has amended Regulation 40 of the Listing Regulations, which deals with transfer or transmission
or transposition of securities. According to this amendment, the requests for effecting the transfer of listed securities shall not be
processed unless the securities are held in dematerialised form with a Depository. Therefore, for effecting any transfer, the securities
shall mandatorily be required to be in demat form. According to SEBI, this amendment will bring the following benefits:
It shall curb fraud and manipulation risk in physical transfer of securities by unscrupulous entities.
Transfer of securities only in demat form will improve ease, convenience and safety of transactions for investors.

COMPLIANCE OF SHARE TRANSFER FORMALITIES

As per the requirement of Regulation 40(9) of the Listing Regulations, the Company has obtained the half yearly certificates from
the Company Secretary in practice for due compliance of share transfer formalities.

Annual Report 2019-20 67

DISTRIBUTION OF SHAREHOLDING DETAILS OF THE COMPANY

DISTRIBUTION OF SHAREHOLDING (SHARES) as on 31-03-2020

Sr. Shareholding Shareholder Percentage Total shares Percentage
no. of Shares of Total of Total
1 1 to 500 5602 93.1803 418091 0.6241
2 501 to 1000 167 2.7778 127899 0.1909
3 1001 to 2000 89 1.4804 130774 0.1952
4 2001 to 3000 34 0.5655 88004 0.1314
5 3001 to 4000 19 0.316 70572 0.1054
6 4001 to 5000 10 0.1663 47219 0.0705
7 5001 to 10000 18 0.2994 128665 0.1921
8 10001 to ********** 73 1.2142 65976336 98.4904
Total 6012 100 66987560 100
SHAREHOLDING PATTERN OF THE COMPANY AS ON 31ST MARCH, 2020:

Particulars No. of Shares as on 31-03-2020 %

Promoter & Promoter Group 38855977 58.004
Foreign Portfolio Investor 10394478 15.517
Financial Institutions / Banks 6787 0.01
Mutual Fund 15376998 22.955
IEPF 27827 0.041
Bodies Corporate 318456 0.475
Hindu Undivided Family 22590 0.033
Non Resident Indians 50210 0.074
Public (Any Others) 1934237 2.887
Total 66987560 100
LIST OF PROMOTERS AND PROMOTERS GROUP HOLDING AS ON 31-03-2020 (% of total Shares of the Company)

Name of Promoters Equity % Equity Pledged %

Sudershan Walia 22252380 33.2187 11475380 17.13
Bikramjit Ahluwalia 7994257 11.9339 4390000 6.55
Shobhit Uppal 4308000 6.4310 - -
Rohini Ahluwalia 2981840 4.4513 - -
Rachna Uppal 1227500 1.8324 - -
Mukta Ahluwalia 33500 0.0500 - -
Vikas Ahluwalia 33500 0.0500 - -
Tidal Securities Private Limited 25000 0.0373 - -

68 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Report on Corporate Governance (Contd.)

OTHER TOTAL TOP 10 SHAREHOLDERS OF THE COMPANY AS ON 31ST MARCH, 2020:

SL. Name of Top 10 Shareholders as on 31-03-2020 Equity %

1 Nalanda India Equity Fund Limited 3870102 5.7773
2 Franklin India Smaller Companies Fund 3270913 4.8829
3 Nalanda India Fund Limited 2765372 4.1282
4 Axis Mutual Fund Trustee Limited A/C Axis Mutual Fund A/C Axis Small Cap Fund 2540392 3.7923
5 DSP Equity & Bond Fund 1864461 2.7833
6 Fil Investments (Mauritius) Ltd 1852221 2.765
7 SBI Large & Midcap Fund 1214084 1.8124
8 DSP Equity Opportunities Fund 1137225 1.6977
9 HSBC Global Investment Funds - Asia Ex Japan Equity Smaller Companies 1093964 1.6331
10 DSP Tax Saver Fund 1002626 1.4967
DETAILS OF EQUITY SHARES IN DEMATERIALISED AND PHYSICAL FORM AS ON 31ST MARCH, 2020
The Company’s shares are compulsorily traded in dematerialised form and are available for trading through both the Depositories in
India viz. NSDL and CDSL. The details of number of equity shares of the Company which are in dematerialised and physical form
are given below:

Particulars Number of shares % to total number of shares Number of shareholders

Dematerialised form
NSDL (A) 63764354 95.19 3747
CDSL (B) 3157941 4.71 2109
Total 66922295* 99.90 5856
Physical form (C) 65265 0.10 156
Total A+B+C 66987560 100 6012
*includes entire shareholding of promoter and promoter group.
Address for correspondence
For any assistance regarding dematerialisation of shares, share transfers, transmissions, change of address, non-receipt of dividend
or any other query relating to shares:
Registrar and Share Transfer Agent (RTA)
Link Intime India Pvt. Limited
Noble Heights, 1st Floor, Plot NH 2, C-1, Block LSC, Near Savitri Market, Janakpuri, New Delhi – 110058,
Phone: 011 - 414 10592, 93, 94; Fax: 011 - 414 10591
Email: delhi@linkintime.co.in
For general correspondence:
Ahluwalia Contracts (India) Limited
Regd. Office: A-177, Okhla Industrial Area
Phase-1, New Delh-110020
Ph.: 91-11-49410502, 517, 599 Fax: 91-11-49410553
Email ID. Cs.corpoffice@acilnet.com

Annual Report 2019-20 69

CREDIT RATING last 3 years on any matter related to capital markets.
The Company’s financial discipline and prudence is reflected POLICY ON DISCLOSURE OF MATERIAL EVENTS
in the strong credit ratings ascribed by rating agencies as The Company has also adopted policies on determination of
given below: material events and policy for preservation of documents.
Facilities Rating Rating Action CERTIFICATE FROM PRACTISING COMPANY SECRETARY
Long Term Bank CARE A+;Stable (Single Reaffirmed The Company has received a certificate from Santosh Kumar
Facilities A Plus; Outlook; Stable Pradhan, Practising Company Secretary to the effect that
Long term / short term CARE A+;Stable/ CARE Reaffirmed none of the Directors on the Board of the Company has been
Bank Facilities A1 (Single A Plus; debarred or disqualified from being appointed or continuing
Outlook; Stable/A One)
as Directors of the Company by the Securities and Exchange
OTHER DISCLOSURES: Board of India (SEBI), Ministry of Corporate Affairs or any
RELATED PARTY TRANSACTIONS & POLICY: other statutory authority. The same forms part of this report.
In compliance with the provisions of Regulation 23 of PREVENTION OF SEXUAL HARASSMENT POLICY
SEBI (Listing Obligations and Disclosure Requirements)
In order to comply with provisions of the Sexual Harassment
Regulations, 2015, the Company has formulated a Policy
of Women at Workplace (Prevention, Prohibition and
on Materiality of Related Party Transactions and dealing with
Redressal) Act, 2013 and Rules framed thereunder, the
Related Party Transaction, duly approved by the Board of
Company has formulated and implemented a policy on
Directors and the same has come into force with effect from
prevention, prohibition and redressal of complaints related to
1st October 2014.
sexual harassment of women at the workplace. All women
All contracts/ arrangements/ transactions entered by the employees are covered under the above policy. The said policy
Company during the financial year with related parties were has been uploaded on the internal portal of the Company
in the ordinary course of business and on arm’s length basis. for information of all employees. An Internal Complaint
During the year the Company had not entered into any Committee (ICC) has been set up in compliance with the said
contract/ arrangement/ transaction with related parties, which Act. During the year under review, no Complaint was reported
could be considered material in accordance with the policy of pertaining to sexual harassment of women at workplace.
the Company on materiality of related party transactions or
DETAILS OF COMPLIANCE WITH MANDATORY
provisions of SEBI (LODR) Regulations, 2015.
REQUIREMENTS AND ADOPTION OF NON-MANDATORY
The Policy on Materiality of Related Party Transactions and REQUIREMENTS
dealing with Related Party Transaction has been disclosed on
The Company has duly complied with all the mandatory
website of the Company and may be accessed at following
provisions of SEBI / Listing Regulations as amended from
web link: www.acilnet.com
time to time.
VIGIL MECHANISM /WHISTLE BLOWER COMMITTEE
Adoption of non-mandatory requirements as stipulated under
The Company has a Whistle Blower Policy and has established Listing Regulations are being reviewed by the Board from
the necessary vigil mechanism for Directors and Employees in Time to Time.
confirmation with Section 177(9) of the Act and Regulation
All the recommendations made by the Audit/ Nomination &
22 of Listing Regulations, to report concerns about unethical
Remuneration Committee during the year under review were
behavior. The details of the policy have been disclosed in the
accepted and adopted by the Board.
Corporate Governance Report, which is a part of this report
and is also available on www.acilnet.com Statutory Auditors and their Fee: M/s Amod Agrawal &
Associates the Chartered Accountants are the Statutory
The Composition of Whistle Blower Committee is given
Auditors of the Company. During the FY 2019-20, the total
hereunder:
fees paid by the Company to them on a consolidated basis is
The Company has adopted the Whistleblower mechanism as below:
for Directors and employees to report concerns about
a) Statutory Audit `28.00 Lakhs
unethical behavior, actual or suspected fraud, or violation
of the Company’s Code of Conduct and Ethics. b) Other Services `6.25 Lakhs
In accordance with the requirements of the Listing
Agreement, the Company has formulated Policies on CODE OF CONDUCT
related party transactions and material subsidiaries. The The Company has adopted the Code of Conduct for NEDs
policies, including the Whistleblower Policy, are available which includes details as laid down in Schedule IV to the
on our website: www.acilnet.com Act. The Company has also adopted a Code of Conduct for
Details of non-compliance by the listed entity, penalties, all its employees including Executive Director(s). All Board
strictures imposed on the listed entity by stock exchange(s) or members and senior management personnel have affirmed
the board or any statutory authority, on any matter related to compliance with their respective Code of Conduct. The CEO &
capital markets, during the last three years: Managing Director has also confirmed and certified the same.
This certification is reproduced at the end of this Report and
There is no non-compliance made by the Company during the marked as Annexure I.

70 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Report on Corporate Governance (Contd.)

ACIL CODE OF CONDUCT FOR PREVENTION OF INSIDER News Releases, Presentations etc.: Official news releases,
TRADING & CODE OF CORPORATE DISCLOSURE detailed presentations made to media, analysts, institutional
PRACTICES investors etc. are displayed on the Company’s website at
In accordance with the Securities and Exchange Board of www.acilnet.com
India (Prohibition of Insider Trading) Regulations, 2015, as Website: Comprehensive information about the Company,
amended from time to time, the Board of Directors of the its business and operations, Press Releases and investor
Company has adopted the revised ACIL Code of Conduct information can be viewed at the Company’s website at
for Prevention of Insider Trading and Code of Corporate www.acilnet.com. The ‘Investor Relations’ section serves to
Disclosure Practices (the Code). All the Promoters, Directors, inform the investors by providing key and timely information
Employees of the Company and its material subsidiaries, like financial results, annual reports, shareholding pattern,
who are Designated Persons, and their Immediate Relatives quarterly Corporate Governance report, presentations made
and other Connected Persons such as Auditors, Consultants, to analysts, etc.
Bankers, etc., who could have access to the unpublished NSE Electronic Application Processing System (NEAPS)
price sensitive information of the Company, are governed and BSE Online Portal: NSE has provided online platform
under this Code. NEAPS wherein the Company submits all the compliances/
Mr. Vipin Kumar Tiwari (CS) of the Company is the ‘Compliance disclosures to the Exchange in the SEBI prescribed format.
Officer’ in terms of this Code Similar filings are made with BSE on their online Portal viz.
BSE Corporate Compliance & Listing Centre.
INSIDER TRADING CODE Extensible Business Reporting Language (XBRL): XBRL is a
The Company has adopted an ‘Internal Code of Conduct for standardized and structured way of communicating business
Regulating, Monitoring and Reporting of Trades by Designated and financial data in an electronic form. XBRL provides a
Persons’ (“the Code”) in accordance with the SEBI (Prohibition language containing various definitions (tags) which uniquely
of Insider Trading) Regulations, 2015 (The PIT Regulations). represent the contents of each piece of financial statements
The Code is applicable to Promoters, Member of Promoter’s or other kinds of compliance and business reports. BSE and
Group, all Directors and such Designated Employees who NSE provide XBRL based compliance reporting featuring
are expected to have access to unpublished price sensitive identical and homogeneous compliance data structures
information relating to the Company. The Company Secretary between Stock Exchanges and Ministry of Corporate Affairs.
is the Compliance Officer for monitoring adherence to the said The XBRL filings are done on the NEAPS portal as well as the
PIT Regulations. BSE online portal.
The Company has also formulated ‘The Code of Practices and Web-based Query Redressal System: Members also have the
Procedures for Fair Disclosure of Unpublished Price Sensitive facility of raising their queries/complaints on share related
Information (UPSI)’ in compliance with the PIT Regulations. matters through an option provided on the Company’s website
This Code is displayed on the Company’s website viz. at www.acilnet.com
www.acilnet.com. The Company has also formulated “Policy SEBI Complaints Redressal System (SCORES): A centralised
on Inquiry” in case of leak of UPSI. web-based complaints redressal system which serves as a
centralised database of all complaints received, enables
Name, Designation and Address of the Compliance Officer:
uploading of Action Taken Reports by the concerned company
Mr. Vipin Kumar Tiwari, and online viewing by the investors of actions taken on the
GM (Corporate) & Company Secretary complaint and its current status www.acilnet.com
Regd. Office: A-177, Okhla Industrials Area, Phase-1, Dedicated e-mail ID for communication with Investor Education
New Delhi-110020 and Protection Fund Authority: The Company has a dedicated
Phone:+91-11-49410502, 517, 599 e-mail id cs.corpoffice@acilnet.com or communication with
Fax: :+91-11-49410553 the IEPF Authorities. Stakeholders are requested to send their
IEPF claim documents at cs.corpoffice@acilnet.com.
Email ID: cs.corpoffice@acilnet.com
Reminder to investors: Reminders to collect unclaimed
In accordance with Regulation 6 of the Listing Regulations, dividend on shares or debenture redemption/interest are sent
the Board has appointed Mr. Vipin Kumar Tiwari, Company to the concerned shareholders and debenture holders.
Secretary as the Compliance Officer. He is authorised to
approve share transfers/ transmissions, in addition to the For on behalf of the Board
powers with the members of the Committee. Share transfer Ahluwalia Contracts (India) Ltd
formalities are regularly attended to and at least once a Sd/-
fortnight.
(Bikramjit Ahluwalia)
Annual Reports and Annual General Meetings: The Annual Managing Director
Reports are e-mailed/posted to Members and others entitled DIN: 00304947
to receive them. The Annual Report is also available on the
Company’s website at www.acilnet.com Date: 14-08-2020
Place: New Delhi

Annual Report 2019-20 71

Annexure - 1

DECLARATION REGARDING COMPLIANCE BY BOARD MEMBERS AND

SENIOR MANAGEMENT PERSONNEL WITH THE COMPANY’S CODE OF CONDUCT

This is to confirm that the Company has adopted a Code of Conduct for its employees including the Managing Director and Executive
Directors. In addition, the Company has adopted a Code of Conduct for its Non-Executive Directors and Independent Directors.
These Codes are available on the Company’s website i.e. www.acilnet.com
I confirm that the Company has in respect of the year ended 31st March, 2020, received from the Senior Management Team of the
Company and the Members of the Board a declaration of compliance with the Code of Conduct as applicable to them.

For and on behalf of Board of Directors

Ahluwalia Contracts (India) Ltd
Sd/-
(Bikramjit Ahluwalia)
Place: New Delhi Chairman & Managing Director
Dated: 14-08-2020 DIN No. 00304947

72 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Report on Corporate Governance (Contd.)

Certificate in Pursuant to Regulation 17(8) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 as amended time to time for the year ended 31st March, 2020

The Board of Directors

Ahluwalia Contracts (India) Ltd
We the undersigned, in our respective capacities as Managing Director and Chief Financial Officer of Ahluwalia Contracts (India) Ltd
to the best of our knowledge and belief certify that:
a) We have reviewed the Audited Financial Results of Ahluwalia Contracts (India) Ltd. for the year ended 31st March, 2020 and
that to the best of our knowledge and belief, we state that:
(i) these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading.
(ii) these statements together present a true and fair view of the Company’s affairs and are in compliance with existing
Accounting standards, applicable laws and regulations.
b) To the best of our Knowledge and belief, no transactions entered into by the Company during the year ended 31st March, 2020
are fraudulent, illegal or violative of the Company’s code of conduct.
c) We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated
the effectiveness of internal control systems of the Company pertaining to financial reporting. Deficiencies in the design or
operation of such internal controls, if any, of which we are aware, have been disclosed to the auditors and Audit Committee
and steps have been taken to rectify these deficiencies.
d) We have indicated to the Auditors and the Audit Committee:
a. Significant changes in internal control over financial reporting during the year.
b. Significant changes in accounting policies made during the year and that the same have been disclosed in the notes to
the financial statements; and
c. Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or
an employee having a significant role in the Company’s internal control system over financial reporting.

(Bikramjit Ahluwalia) (Satbeer Singh)

Managing Director Chief Financial Officer
(CEO) (CFO)
Date: 30-06-2020

Annual Report 2019-20 73

Report on Corporate Governance (Contd.)

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(Pursuant to regulation 34(3) and Schedule V Para C clause (10)(i) of SEBI (Listing obligation and Disclosure Requirement)
Regulations, 2015)

To,
The Members of,
AHLUWALIA CONTRACTS (INDIA) LIMITED,
A-177, Okhla Industrial Area,
Phase-I New Delhi South Delhi
DL 110020 IN.

I have examined the relevant registers, records, forms, returns and disclosures received from the Directors of AHLUWALIA
CONTRACTS (INDIA) Limited having CIN L45101DL1979PLC009654 and having registered office at A-177, Okhla Industrial
Area, Phase-I, New Delhi South Delhi DL 110020 IN (hereinafter referred to as the Company), produced before me by the Company
for the purpose of issuing the Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C sub clause 10(i) of
Security Exchange Board of India (Listing obligation and Disclosure Requirement) Regulations, 2015)
In my opinion and to the best of my information and according to the verifications (including Directors Identifications Number (DIN)
status at the portal www.mca.gov.in ) as considered necessary and explanations furnished to me by the Company & its Officers, I
Hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending on 31St March,
2020 have been debarred or disqualified from being appointed or continuing as Directors of companies by the Security Exchange
Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.

Sr. Name of Director DIN Date of appointment in Company

No.
1. Mr. Bikramjit Ahluwalia 00304947 02/06/1979
2. Mr. Shobhit Uppal 00305264 25/03/1994
3. Mr. Vikas Ahluwalia 00305175 01/04/2018
4. Mr. Sanjiv Sharma 08478247 01/08/2019
5. Mr. Arun Kumar Gupta 00371289 28/08/2000
6. Dr. Sushil Chandra 00502167 08/03/2010
7. Dr. Mohinder Kaur Sahlot 01363530 30/03/2015
8. Mr. Rajendra Prashad Gupta 02537985 24/07/2019
Ensuring the eligibility of for the appointment / continuity of every Director on the Board is the responsibility of the management of
the Company. My 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 Santosh Kumar Pradhan
(Company Secretaries)
Santosh Kumar Pradhan
(Proprietor)
FCS No. 6973
Place: Ghaziabad C.P. No. 7647
Date: 13/08/2020 UDIN: F006973B000577257

74 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

COMPLIANCE CERTIFICATE
CERTIFICATE ON COMPLIANCE WITH THE CONDITIONS OF CORPORATE GOVERNANCE

The Members,
AHLUWALIA CONTRACTS (INDIA) LIMITED,
(CIN: L45101DL1979PLC009654)
A-177, Okhla Industrial Area,
Phase-I, New Delhi - 110020

We have reviewed the records concerning the Company’s compliance of conditions of Corporate Governance as stipulated in Chapter
IV of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 pursuant to the Uniform Listing Agreement of the said
Company with the Stock Exchanges, for the year ended 31st March 2020.
The Compliance of conditions of corporate governance is the responsibility of the management. Our Examination was limited to
procedures and implementation thereof, adopted by the Company ensuring the Compliance of the conditions of the corporate
Governance as stipulated in said regulations. It is neither an audit nor an expression of opinion on the financial statements of the
Company.
We have conducted our review on the basis of the relevant records and documents maintained by the Company and furnished to us
for the review, and the information and explanations given to us by the Company.
Based on such a review, in our opinion, we certify that the Company has complied with the conditions of Corporate Governance as
stipulated in Chapter IV of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 pursuant to the Uniform Listing
Agreement of the said Company with the Stock Exchanges except for the composition of the Audit Committee for the period from
1st April, 2019 to 23rd July, 2019.
We further state that such compliance is neither an assurance as the future viability of the Company nor as to the efficiency or
effectiveness with which the management has conducted the affairs of the Company.

For Santosh Kumar Pradhan

(Company Secretaries)
Santosh Kumar Pradhan
(Proprietor)
FCS No. 6973
Place: Ghaziabad C.P. No. 7647
Date: 13/08/2020 UDIN: F006973B000577257

Annual Report 2019-20 75

Independent Auditor’s Report
To The Members of
Ahluwalia Contracts (India) Limited

Report on the Audit of Standalone Financial Statements

Opinion
We have audited the accompanying standalone financial Statements of Ahluwalia Contracts (India) Limited (‘the Company’), which comprise the
Balance Sheet as at March 31, 2020, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flow and
the Statement of Changes in Equity for the year ended on that date, and a summary of the significant accounting policies and other explanatory
information (hereinafter referred to as the standalone financial statements).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give
the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the
Companies (Indian Accounting Standards) Rules, 2015, as amended, (“IND AS”) and other accounting principles generally accepted in India, of
the state of affairs of the Company as at March 31, 2020, the profit and total comprehensive income, changes in equity and its cash flows for the
year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our
responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India(ICAI)
together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Companies
Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s
Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone
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 financial statements
of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit
matters to be communicated in our report.

S. No. Key Audit Matters Auditor’s Response

1 Revenue recognition for long term construction contracts: Our audit procedures include the following:
The Company’s significant portion of business is undertaken through • Reading the Company’s revenue recognition accounting
long term construction contracts. Revenue from these contracts is policies and assessing compliance with the policies in terms of
recognised over a period of time in accordance with the requirements Ind AS 115.
of Ind AS 115, Revenue from Contracts with Customers. Due to • We performed test of controls over revenue recognition with
the nature of the contracts, revenue recognition involves usage of specific focus on determination of progress of completion and
percentage of completion method which is determined based on recording of costs incurred .
output method such as surveys of performance completed to date, • We performed tests of details, on a sample basis, and read
appraisal of results achieved, milestones reached, units produced or the underlying customer contracts and its amendments, if any,
units delivered which involves significant judgements, identification key contract terms and milestones etc. for verifying estimation
of contractual obligations and the Company’s rights to receive of contract revenue and cost and /or any change in such
payments for performance completed till date, changes in scope and estimation.
consequential revised contract price and recognition of the liability • We reviewed the management’s evaluation process to
for loss making contracts.(Note No. 2.3) recognize revenue over a period of time, status of completion
for projects and total cost estimates.
• We tested contracts with exceptions including contracts with
low or negative margins, contracts with significant changes
in planned cost estimates, contracts with significant contract
assets and liabilities, and significant overdue net receivable
positions for contracts and tested these exceptions with its
correlation with the underlying contracts, documents for the
triggers during the period.
• We tested that the contractual positions and revenue for the
year are presented and disclosed in compliance of Ind AS 115
in the Standalone Ind AS financial statements.

76 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

2. Trade Receivables and contract assets Our Audit procedures amongst other included the following:
Trade receivables and contract assets amounting to • We understood and tested on a sample basis the design
`5,97,26,46,245 and `2,94,83,16,837 respectively represent and operating effectiveness of management control over the
approximately 50.69 % of the total assets of the Company as at recognition and the recoverability of the trade receivables and
March 31, 2020. In assessing the recoverability of the aforesaid contract assets.
balance management’s judgement involves consideration of aging • We performed test of details and tested relevant contracts,
status, evaluation of litigations and the likelihood of collection documents and subsequent settlements for material trade
based on the terms of the contract. Management estimation is receivable balances and amounts included in contract assets
required in the measurement of work completed during the period that are due on performance of future obligations.
for recognition of unbilled revenue. We considered this as key • We tested the aging of trade receivables at year end.
audit matter due to the materiality of the amounts and significant • We performed test of details and tested relevant contracts
estimates and judgements as stated above. and documents with specific focus on measurement of work
completed during the period 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 and legal advice
obtained by the management on litigations from legal experts.
• We assessed the allowance for impairment made by
management.

3 Disputed Indirect Tax and other Contingent Liabilities Our audit procedures amongst others included the following:
The Company is subject to assessments by tax authorities on • Obtained list of indirect tax litigations as at March 31, 2020
various indirect tax matters resulting into litigations/disputes(refer from management.
note 40(i)(a) to the standalone Ind AS financial Statements). The • We analysed the completed assessments for pending cases of
tax matters involve significant amounts which are at various stages similar nature.
and the proceedings take significant time to resolve. Management
• Discussed the matters with the management to understand the
exercises significant judgement in assessing the financial impact of
possible outcome of these disputes.
tax matters due to the complexity of the cases and involvement of
various tax authorities. Accordingly, we have identified this as a key • We have also considered legal precedence and other rulings
matter. in evaluating management position on these uncertain tax
litigations.
• Obtained experts opinion in major cases to review the
management’s assessment of the possible outcome of the
disputes relating to indirect tax and other litigation.
• Assessed contingent liability disclosure in note 40(i)(a) to the
accompanying standalone Ind AS financial statements.

4 Accounting for leases as discussed in note no. 2.11 of standalone As part of our audit procedures we assessed the assumptions
financial statements, the Company has adopted Ind AS 116 contained within the calculations including growth assumptions
Leases, in current financial year. The application on transition to & discount rates. In addition, we have examined fair value
this standard is complex and is in an area of focus in our audit. certificate from independent valuer who holds relevant professional
Ind AS 116 introduces a new lease accounting model, wherein qualification and has relevant valuation experience to evaluate
lessees are required to recognise a right-of-use (ROU) asset and a whether any change was required to the management position in
lease liability arising from a lease on the balance sheet. assessing fair value of the investment property.
The lease liabilities are initially measured by discounting future • Assessed the Company’s evolution on the identification
lease payments during the lease term as per the contract/ of leases based on the contractual agreements and our
arrangement. Adoption of the standard involves significant knowledge of the business;
judgements and estimates including, determination of the discount • Assessed to evaluate the reasonableness of the discount rates
rates and the lease term. applied in determining the lease liabilities;
Additionally, the standard mandates detailed disclosures in respect • Upon transition as at 1 April 2019:
of transition. Refer Note 2.11 and 45 of the financial statements. Evaluated the method or transition and related adjustments:
The determination of the fair value of investment property & Tested completeness of the lease data by reconciling the
impairment provision requires the use of estimates such as future Company’s lease commitments to data used in computing
cash flows from the assets(such as lettings, future revenue streams ROU assets and the lease liabilities.
and the overall repair and condition of the property and property • On a sample basis , we performed the following procedures:
operating expenses) and discount rates applicable to those assets. Assessed the key terms and conditions of each lease with the
The assessment of the recoverable amount requires significant underlying lease contracts, and
judgment, in particular relating to estimated case flow projections Evaluated computation of lease liabilities and challenged the
and discount rate. Therefore, this is considered to be a key audit key estimates such as discount rates and the lease term.
matter. • Assessed and tested the presentation and disclosures relating
to Ind AS 116 including, disclosures relating to transition.

Annual Report 2019-20 77

Independent Auditor’s Report (Contd.)

Other Information The Board of Directors are responsible for overseeing the Company’s
The Company’s Board of Directors is responsible for the other financial reporting process.
information. The other information comprises the information Auditor’s Responsibility for the Audit of the Standalone Financial
included in the Management Discussion and Analysis, Board’s Report Statements
including Annexures to Board’s Report, Business Responsibility Our objectives are to obtain reasonable assurance about whether the
Report, Corporate Governance and Shareholder’s Information, standalone financial statements as a whole are free from material
but does not include the standalone financial statements and our misstatement, whether due to fraud or error, and to issue an auditor’s
auditor’s report thereon. The above-mentioned report is expected to report that includes our opinion. Reasonable assurance is a high
be made available to us after the date of this auditor’s report. level of assurance, but is not a guarantee that an audit conducted
Our opinion on the financial statements does not cover the other in accordance with SAs will always detect a material misstatement
information and we will not express any form of assurance conclusion when it exists. Misstatements can arise from fraud or error and are
thereon. considered material if, individually or in the aggregate, they could
In connection with our audit of the financial statements, our reasonably be expected to influence the economic decisions of users
responsibility is to read the other information identified above when taken on the basis of these standalone financial statements.
it becomes available and, in doing so, consider whether the other As part of an audit in accordance with SAs, we exercise professional
information is materially inconsistent with the financial statements judgment and maintain professional skepticism throughout the audit.
or our knowledge obtained in the audit, or otherwise appears to be We also:
materially misstated. • Identify and assess the risks of material misstatement of the
When we read the Annual Report, if we conclude that there is a standalone financial statements, whether due to fraud or error,
material misstatement therein, we are required to communicate the design and perform audit procedures responsive to those risks,
matter to those charged with governance. and obtain audit evidence that is sufficient and appropriate to
Management’s Responsibility for the standalone Financial provide a basis for our opinion. The risk of not detecting a material
Statements misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional
The Company’s Board of Directors is responsible for the matters
omissions, misrepresentations, or the override of internal control.
stated in Section 134(5) of the Companies Act, 2013 (‘the Act’)
with respect to the preparation of these standalone financial • Obtain an understanding of internal financial controls relevant to
statements to give a true and fair view of the financial position, the audit in order to design audit procedures that are appropriate
financial performance (including other comprehensive income), cash in the circumstances. Under section 143(3)(i) of the Act, we
flows and changes in equity of the Company in accordance with are also responsible for expressing our opinion on whether the
the accounting principles generally accepted in India, including the Company has adequate internal financial controls system in
Indian Accounting Standards specified in the Companies (Indian place and the operating effectiveness of such controls.
Accounting Standards) Rules, 2015 (as amended) under Section 133 • Evaluate the appropriateness of accounting policies used and the
of the Act. This responsibility also includes maintenance of adequate reasonableness of accounting estimates and related disclosures
accounting records in accordance with the provisions of the Act for made by management.
safeguarding of the assets of the Company and for preventing and • Conclude on the appropriateness of management’s use of the
detecting frauds and other irregularities; selection and application of going concern basis of accounting and, based on the audit
appropriate accounting policies; making judgments and estimates evidence obtained, whether a material uncertainty exists
that are reasonable and prudent; and design, implementation and related to events or conditions that may cast significant doubt
maintenance of adequate internal financial controls, that were on the Company’s ability to continue as a going concern. If we
operating effectively for ensuring the accuracy and completeness of conclude that a material uncertainty exists, we are required to
the accounting records, relevant to the preparation and presentation draw attention in our auditor’s report to the related disclosures
of the standalone financial statements that give a true and fair view in the standalone financial statements or, if such disclosures are
and are free from material misstatement, whether due to fraud or inadequate, to modify our opinion. Our conclusions are based on
error. the audit evidence obtained up to the date of our auditor’s report.
In preparing the standalone financial statements, management is However, future events or conditions may cause the Company to
responsible for assessing the Company’s ability to continue as a going cease to continue as a going concern.
concern, disclosing, as applicable, matters related to going concern • Evaluate the overall presentation, structure and content of the
and using the going concern basis of accounting unless management standalone financial statements, including the disclosures,
either intends to liquidate the Company or to cease operations, or has and whether the standalone financial statements represent the
no realistic alternative but to do so. underlying transactions and events in a manner that achieves fair
presentation.

78 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Materiality is the magnitude of misstatements in the standalone f) With respect to the adequacy of the internal financial controls
financial statements that, individually or in aggregate, makes it over financial reporting of the Company and the operating
probable that the economic decisions of a reasonably knowledgeable effectiveness of such controls, refer to our separate Report in
user of the financial statements may be influenced. We consider “Annexure A”. Our report expresses an unmodified opinion on the
quantitative materiality and qualitative factors in (i) planning the adequacy and operating effectiveness of the Company’s internal
scope of our audit work and in evaluating the results of our work; financial controls over financial reporting.
and (ii) to evaluate the effect of any identified misstatements in the g) With respect to the other matters to be included in the
financial statements. Auditor’s Report in accordance with the requirements of section
We communicate with those charged with governance regarding, 197(16) of the Act, as amended:
among other matters, the planned scope and timing of the audit and In our opinion and to the best of our information and according
significant audit findings, including any significant deficiencies in to the explanations given to us, the remuneration paid by the
internal control that we identify during our audit. Company to its directors during the year is in accordance with
We also provide those charged with governance with a statement the provisions of section 197 of the Act.
that we have complied with relevant ethical requirements regarding h) With respect to the other matters to be included in the
independence, and to communicate with them all relationships Auditor’s Report in accordance with Rule 11 of the Companies
and other matters that may reasonably be thought to bear on our (Audit and Auditors) Rules, 2014, as amended in our opinion and
independence, and where applicable, related safeguards. to the best of our information and according to the explanations
From the matters communicated with those charged with governance, given to us:
we determine those matters that were of most significance in the i. The Company has disclosed the impact of pending litigations
audit of the standalone financial statements of the current period and on its financial position in its standalone financial statements-
are therefore the key audit matters. We describe these matters in our Refer Note-40(i)(a) to the standalone financial statement.
auditor’s report unless law or regulation precludes public disclosure
ii. The Company has made provision, as required under the
about the matter or when, in extremely rare circumstances, we
applicable law or accounting standards, for material foreseeable
determine that a matter should not be communicated in our report
losses, if any, on long-term contracts. The Company has no
because the adverse consequences of doing so would reasonably
derivative contracts.
be expected to outweigh the public interest benefits of such
communication. iii. There has been no delay in transferring amounts, required to
be transferred, to the Investor Education and Protection Fund by
Report on Other Legal and Regulatory Requirements
the Company.
1. As required by Section 143(3) of the Act, based on our audit we
2. As required by the Companies (Auditor’s Report) Order, 2016
report that:
(“the Order”) issued by the Central Government in terms of
a) We have sought and obtained all the information and Section 143(11) of the Act, we give in “Annexure B” a statement
explanations which to the best of our knowledge and belief were on the matters specified in paragraphs 3 and 4 of the Order.
necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law
For Amod Agrawal & Associates
have been kept by the Company so far as it appears from our
examination of those books. Chartered Accountants

c) The Balance Sheet, the Statement of Profit and Loss Firm Registration No.005780N
including Other Comprehensive Income, Statement of Changes in
Equity and the Statement of Cash Flow dealt with by this Report SMITA GUPTA
are in agreement with the relevant books of account.
Partner
d) In our opinion, the aforesaid standalone financial statements
Place: New Delhi Membership No.- 087061
comply with the Ind AS specified under Section 133 of the Act,
Dated: 30-06-2020 UDIN: 20087061AAAAAB4187
read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, none of
the directors is disqualified as on March 31, 2020 from being
appointed as a director in terms of Section 164 (2) of the Act.

Annual Report 2019-20 79

Annexure-A to the Independent Auditor’s Report
(Referred to in paragraph 1 (f) under “Report on Other Legal and Regulatory Requirements” section of our report to the Members of Ahluwalia
Contracts (India) Limited of even date)

Report on the Internal Financial Controls Over Financial Meaning of Internal Financial Controls Over Financial
Reporting UnderClause (i) of Sub-section 3 of Section 143 Reporting
of the Companies Act, 2013 (“the Act”) A Company’s internal financial control over financial reporting is
We have audited the internal financial controls over financial reporting a process designed to provide reasonable assurance regarding the
of Ahluwalia Contracts (India) Limited (“the Company”) as of March reliability of financial reporting and the preparation of standalone
31, 2020 in conjunction with our audit of the standalone financial financial statements for external purposes in accordance with
statements of the Company for the year ended on that date. generally accepted accounting principles. A Company’s internal
Management’s Responsibility for Internal Financial Controls financial control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in
The Company’s management is responsible for establishing and
reasonable detail, accurately and fairly reflect the transactions and
maintaining internal financial controls based on the internal
dispositions of the assets of the Company; (2) provide reasonable
control over financial reporting criteria established by the Company
assurance that transactions are recorded as necessary to permit
considering the essential components of internal control stated
preparation of standalone financial statements in accordance with
in the Guidance Note on Audit of Internal Financial Controls over
generally accepted accounting principles, and that receipts and
Financial Reporting issued by the Institute of Chartered Accountants
expenditures of the Company are being made only in accordance
of India. These responsibilities include the design, implementation
with authorisations of management and directors of the Company;
and maintenance of adequate internal financial controls that were
and (3) provide reasonable assurance regarding prevention or timely
operating effectively for ensuring the orderly and efficient conduct
detection of unauthorised acquisition, use, or disposition of the
of its business, including adherence to the Company’s policies, the
Company’s assets that could have a material effect on the standalone
safeguarding of its assets, the prevention and detection of frauds and
financial statements.
errors, the accuracy and completeness of the accounting records, and
the timely preparation of reliable financial information, as required Inherent Limitations of Internal Financial Controls over
under the Companies Act, 2013. Financial Reporting
Auditors’ Responsibility Because of the inherent limitations of internal financial controls over
financial reporting, including the possibility of collusion or improper
Our responsibility is to express an opinion on the Company’s internal
management override of controls, material misstatements due to
financial controls over financial reporting based on our audit. We
error or fraud may occur and not be detected. Also, projections of any
conducted our audit in accordance with the Guidance Note on Audit
evaluation of the internal financial controls over financial reporting to
of Internal Financial Controls over Financial Reporting (the “Guidance
future periods are subject to the risk that the internal financial control
Note”) and the Standards on Auditing, issued by ICAI and deemed to
over financial reporting may become inadequate because of changes
be prescribed under section 143(10) of the Companies Act, 2013,
in conditions, or that the degree of compliance with the policies or
to the extent applicable to an audit of internal financial controls,
procedures may deteriorate.
both applicable to an audit of Internal Financial Controls and, both
issued by the Institute of Chartered Accountants of India. Those Opinion
Standards and the Guidance Note require that we comply with ethical In our opinion, the Company has, in all material respects, an adequate
requirements and plan and perform the audit to obtain reasonable internal financial controls system over financial reporting and such
assurance about whether adequate internal financial controls over internal financial controls over financial reporting were operating
financial reporting was established and maintained and if such effectively as at March 31, 2020, based on the internal control over
controls operated effectively in all material respects. financial reporting criteria established by the Company considering
Our audit involves performing procedures to obtain audit evidence the essential components of internal control stated in the Guidance
about the adequacy of the internal financial controls system over Note on Audit of Internal Financial Controls Over Financial Reporting
financial reporting and their operating effectiveness. Our audit of issued by the Institute of Chartered Accountants of India.
internal financial controls over financial reporting included obtaining
an understanding of internal financial controls over financial reporting, For Amod Agrawal & Associates
assessing the risk that a material weakness exists, and testing and Chartered Accountants
evaluating the design and operating effectiveness of internal control Firm Registration No.005780N
based on the assessed risk. The procedures selected depend on the
auditor’s judgement, including the assessment of the risks of material SMITA GUPTA
misstatement of the standalone financial statements, whether due to Partner
fraud or error.
Place: New Delhi Membership No.- 087061
We believe that the audit evidence we have obtained is sufficient and Dated: 30-06-2020 UDIN: 20087061AAAAAB4187
appropriate to provide a basis for our audit opinion on the Company’s
internal financial controls system over financial reporting.

80 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Annexure-B to the Independent Auditor’s Report

(Referred to in paragraph 2under “Report on Other Legal and Regulatory Requirements” section of our report to the Members of Ahluwalia Contracts
(India ) Limited of even date)

(i) (a) The Company is maintaining proper records showing full particulars, including quantitative details of fixed assets except for shuttering
material & scaffolding. A separate record for movement of fixed assets showing situation is maintained. As the unit value of shuttering material
and scaffoldings is very small and volumes are very large, it is not technically feasible to maintain unit records and movement of the same
between various projects/sites.
(b) There is a regular programme of verification of fixed assets which, in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. In accordance with the said programme part of the fixed assets have been physically verified by the management
during the year. As informed, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title
deeds of the immovable properties included in fixed assets are held in the name of the Company except given below:
LAND:

Total Number Whether leasehold/ Gross Block (as at Balance Net Block (as at Balance Remarks, if any.
of cases freehold Sheet date) (` in Lakhs) Sheet date) (` in Lakhs)

1 Leasehold - (Chattarpur, 13.60 13.60 Registration is pending as per Bye

New Delhi) Laws prevailing thereon.

BUILDING (KOLKATA):

Total Number Gross Block (as at Balance Sheet date) Net Block (as at Balance Remarks, if any.
of cases (` in Lakhs) Sheet date) (` in Lakhs)

1 345.60 285.50 Registration is pending as per State Government

Directives /Bye Laws prevailing thereon.

(ii) In our opinion, the management has conducted physical verification of major items of inventory at reasonable intervals. No material
discrepancies were noticed on physical verification of such stocks.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered
in the register maintained under section 189 of the Companies Act, 2013. Therefore, the provisions of clause3(iii),(iii)(a),(iii)(b),(iii)(c) of the
said order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, provisions of section 186 of the Companies Act 2013 in respect
of investments made have been complied by the Company. There are no other loans, guarantees and securities granted in respect of which
provisions of section 185 & 186 of the Companies Act, 2013 are applicable.
(v) The Company has not accepted any deposits from the public within the meaning of Section 73 to 76 of the Act and the Companies (Acceptance
of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(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, and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. However, we have not carried out detailed examination of such accounts and records
with a view to determining whether they are accurate or complete.
(vii) a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees’ State Insurance,
Income Tax, Customs Duty, Cess and other material statutory dues applicable to it with the appropriate authorities except for Goods & Service
Tax. There has been slight delays in Provident Fund, ESI, & Income Tax in few cases.
b) There were no undisputed amounts payable in respect of Provident Fund, Employees’ State Insurance, Income Tax, Goods and Service
Tax, Customs Duty, Cess and other material statutory dues in arrears as at March 31, 2020 for a period of more than six months from the date
they became payable.

Annual Report 2019-20 81

Annexure-B to the Independent Auditor’s Report (Contd.)

c) According to the records of the Company, the dues outstanding of sales-tax, income-tax, duty of custom , duty of excise , service tax,
value added tax, goods & service tax and cess on account of any dispute, are as follows:

Name of the Statute Nature of Dues Amount (` in Lakhs) Period to which the Forum where dispute is
amount relates pending

Central Excise Act, 1944 Demand for Excise Duty 27.10 Mar.11 to Nov.12 Commissioner (Appeal),
Central Excise, Bangalore

Central Excise Act, 1944 Demand for Excise Duty 610.16 2011-12 to 2015-16 Commissioner (Appeal),
Central Excise, Gr. Noida

Value Added Tax Act, Delhi VAT Demand 69.88 2013-14 Asst. commissioner Delhi VAT

Value Added Tax Act, Delhi VAT Demand 5.30 2014-15 Special Commissioner Delhi
VAT

Value Added Tax Act, Delhi VAT Demand 16.77 2015-16 Delhi, VAT

Value Added tax act, VAT Demand 236.45 2014-15 Haryana VAT Tribunal,
Haryana Chandigarh

Value Added Tax Act VAT Demand 21.63 2011-13 Dy Commissioner ,Vadodara
(Gujarat)

Value Added Tax Act, VAT Demand 16.43 2005-06 Dy Commissioner (Audit)
Maharashtra ,Mumbai

Commercial Taxes, VAT Demand 61.25 19.02.08 to 31.03.12 Additional Commissioner, sales
Jharsuguda tax, Orissa

Value Added Tax Act, UP VAT Demand 66.20 2008-09 Add. Commissioner(Appeal)-
IV, GZB

Value Added Tax Act, UP VAT Demand 6.94 2005-06 & 2006-07 Appellate Tribunal, Ghaziabad

Value Added Tax Act, West VAT Demand 3.01 1998-99 Appellate Tribunal, Kolkata
Bengal

Value Added Tax Act, West VAT Demand 1.54 1997-98 Settlement Commission,
Bengal Kolkata

Value Added Tax Act, West VAT Demand 45.19 2005-06 & 2006-07 Directorate of Commercial Tax
Bengal /Sr. Jt. Commissioner, Kolkata

Value Added Tax Act, West VAT Demand 102.31 2008-09 Appellate Revisional Board of
Bengal West Bengal Commercial Tax,
Kolkata

Value Added Tax Act, West VAT Demand 106.47 2013-14 Appellate Revisional Board of
Bengal West Bengal Commercial Tax,
Kolkata

Value Added Tax Act, West VAT Demand 86.44 2014-15 Appellate Revisional Board of
Bengal West Bengal Commercial Tax,
Kolkata

Value Added Tax Act, West VAT Demand 5.94 2016-17 Additional Commissioner of
Bengal sales tax

Value Added Tax Act, West VAT Demand 3.00 2017-18 Additional Commissioner of
Bengal sales tax

The Finance Act, 2004 and Service Tax Demand 210.83 2007-08 to 2011-12 Commissioner of Service Tax,
the Service Tax Rules Delhi

Service Tax Demand 174.71 2007-08 to 2011-12 Commissioner of Service Tax,

Delhi

Service Tax Demand 765.06 2011-12 Commissioner of Service Tax,

Delhi

Service Tax Demand 13.22 2011-12 Applied for SABKA VISWAS

SHCEME, 2019

82 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Name of the Statute Nature of Dues Amount (` in Lakhs) Period to which the Forum where dispute is
amount relates pending

Service Tax Demand 1,298.42 2012-13 Commissioner of Service Tax,

Delhi

Service Tax Demand 36.49 2006-09 Asst. Commissioner, Jamnagar

Service Tax Demand 2.51 Apr.07 to Feb.08 Asst. Commissioner, Jamnagar

Service Tax Demand 6.20 Apr.07 to Feb.08 Asst. Commissioner, Jamnagar

Service Tax Demand 870.41 2005-06 to 2008-09 Appellate Tribunal, Mumbai

Service Tax Demand 573.60 2012-13 CESTAT, Mumbai

Service Tax Demand 8.74 oct.10 to Nov.11

Adjudication Authority,
Bhuvneshwar

Service Tax Demand 739.67 Apr.06 to Mar. 08 CESTAT, Chandigarh

Service Tax Demand 45.95 Oct. 10 to Feb. 12 CESTAT, Allahabad

Service Tax Demand 31.44 Mar.12 to Mar.13 Commissioner Appeal, Noida

Service Tax Demand 103.48 Oct.05 to Jan.08 CESTAT,Kolkata

Employees Provident Fund Provident Fund Demand 5457.34 2006-07 to 20008-09 Employees Provident Fund
& Miscellaneous Provision Appellate Tribunal, New Delhi
Act,1952 and High Court, New Delhi

Indian Stamp Act Stamp Duty on Real 57.42 1990-91 Allahabad High Court
Estate Project
(viii) According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in
repayment of dues to any financial institution and banks. The Company does not have any dues outstanding to debenture holders.
(ix) Based on the audit procedures applied by us and according to the information & explanations provided by the management, the Company has
not raised any moneys by further public offer (including debt instruments) during the year. Term loans taken by the Company during the year
have been applied for the purpose for which the loans were obtained.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the
information and explanations given by the management, we report that no fraud by the Company or no fraud/material fraud on the Company
by the officers and employees of the Company has been noticed or reported during the year.
(xi) According to the records of the Company examined by us and the information and explanation given to us, the Company has paid and provided
managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the
Companies Act, 2013.
(xii) In our opinion & according to the information & explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii)
of the Order is not applicable.
(xiii) According to the records of the Company examined by us and the information and explanation given to us, the Company has complied with
section 177 and 188 of the Companies Act 2013 in relation to transaction with related parties and the details have been disclosed in the
financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not
made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not
entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For Amod Agrawal & Associates
Chartered Accountants
Firm Registration No.005780N
SMITA GUPTA
Partner
Place: New Delhi Membership No.- 087061
Dated: 30-06-2020 UDIN: 20087061AAAAAB4187

Annual Report 2019-20 83

Balance Sheet as at 31st March, 2020
(` in Lacs)
Particulars Note As at As at
No. March 31, 2020 March 31, 2019
ASSETS
Non-current assets
(a) Property, plant and equipment 3 10,411.17 9,920.24
(b) Capital work-in-progress 3 20.74 43.57
(c) Right of Use Assets 4 331.50 -
(d) Investment property 5 11,236.52 8,602.47
(e) Other Intangible assets 6 98.88 95.95
(f) Financial assets
(i) Investments 7 628.00 628.00
(ii) Loans 8 687.05 675.44
(iii) Trade Receivables 9 10,392.18 7,717.50
(iv) Other financial assets 10 2,464.41 1,301.64
(g) Deferred tax assets (net) 11 2,357.77 2,832.72
(h) Non-current tax assets (Net) 12 2,015.55 175.19
(i) Other non-current assets 13 6,801.63 3,493.64
Total Non-Current Assets 47,445.40 35,486.36
Current Assets
(a) Inventories 14 22,080.11 14,811.10
(b) Financial Assets
(i) Trade receivables 15 49,334.28 51,781.75
(ii) Cash and cash equivalents 16 16,498.68 13,758.19
(iii) Bank Balances Other than Cash & cash equivalents mentioned above 17 7,886.53 7,156.88
(iv) Loans 18 113.78 53.07
(v) Other financial assets 19 1,120.90 1,767.40
(c) Other current assets 20 31,521.05 23,818.14
Total Current Assets 1,28,555.33 1,13,146.53
Total Assets 1,76,000.73 1,48,632.89
EQUITY AND LIABILITIES
Equity
(a) Equity share capital 21 1,339.75 1,339.75
(b) Other Equity 22 79,063.32 72,499.76
Total Equity 80,403.07 73,839.51
Liabilities
Non-Current Liabilities
(a) Financial Liabilities
(i) Borrowings 23 54.59 62.92
(ii) Lease Liabilities 4,186.04 -
(iii) Other financial liabilities 24 312.01 1,790.57
(b) Provisions 25 649.28 469.41
(c) Other non-current liabilities 26 6,801.27 4,473.79
Total Non-Current Liabilities 12,003.19 6,796.68
Current Liabilities
(a) Financial Liabilities
(i) Borrowings 27 4,650.28 6,023.79
(ii) Lease Liabilities 182.50 -
(iii) Trade payables 28
- Total outstanding dues of Micro Enterprises and Small Enterprises 499.94 436.67
- Total outstanding dues of creditors other than Micro Enterprises and Small Enterprises 51,809.79 42,415.82
(iv) Other financial liabilities 29 4,270.09 3,687.31
(b) Other current liabilities 30 21,904.27 15,188.83
(c) Provisions 31 277.60 244.28
Total Current Liabilities 83,594.47 67,996.70
Total Equity and Liabilities 1,76,000.73 1,48,632.89
Summary of Significant Accounting Policies 2
The accompanying notes are an integral part of the financial statements.
As per our report of even date annexed For and on behalf of the Board of Directors
For AMOD AGRAWAL & ASSOCIATES BIKRAMJIT AHLUWALIA SHOBHIT UPPAL
ICAI Firm Registration No. 005780N Chairman & Managing Director (Chief Executive Officer) Dy. Managing Director
Chartered Accountants DIN 00304947 DIN 00305264
SMITA GUPTA VIPIN KUMAR TIWARI SATBEER SINGH
Partner G.M. (Corporate) & Company Secretary Chief Financial Officer
Membership No. 087061 ACS. 10837 PAN : ARLPS6573L
Place : New Delhi
Date : 30-06-2020

84 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Statement of Profit and Loss for the Year Ended 31st March, 2020
(` in Lacs)

Particulars Notes For Year Ended 31-03-2020 For Year Ended 31-03-2019
INCOME
Revenue from operations 32 1,88,492.69 1,75,471.44
Other Income 33 1,044.30 977.29
Total Income (A) 1,89,536.99 1,76,448.73
EXPENSES
Cost of Material Consumed 34 90,467.66 80,065.85
Construction Expenses 35 59,908.88 54,936.58
Employee benefit expenses 36 15,431.84 14,328.07
Finance costs 37 3,499.77 1,922.40
Depreciation and Amortisation expense 38 3,187.15 2,755.79
Other expenses 39 7,382.72 4,492.93
Total Expenses (B) 1,79,878.02 1,58,501.62
PROFIT BEFORE EXCEPTIONAL 9,658.97 17,947.11
ITEMS AND TAX (A-B)
Exceptional Items - -
PROFIT BEFORE TAX 9,658.97 17,947.11
Tax Expenses :
Current Tax 11 2,862.26 6,924.47
Deferred Tax charge/(credit) 11 353.12 (715.29)
Profit After Tax 6,443.59 11,737.93
OTHER COMPREHENSIVE INCOME/(LOSS)
A (i) Items to be reclassified to profit or loss - -
(ii) Income tax relating to items to be reclassified to profit - -
or loss

B (i) Items not to be reclassified to profit or loss

- Re-measurement of defined benefit plans 2.35 (281.49)
- Equity instruments through Other Comprehensive - -
Income
(ii) Income tax relating to items not to be reclassified to 11 (0.59) 98.36
profit or loss
Other Comprehensive Income (Net of Taxes) 1.76 (183.12)
TOTAL COMPREHENSIVE INCOME 6,445.35 11,554.81
Earning per equity share (Basic in `) 9.62 17.52
Earning per equity share (Diluted in `) 9.62 17.52
(Face Value `2/- each)
Summary of Significant Accounting Policies 2
The accompanying notes are an integral part of the financial statements.

As per our report of even date annexed For and on behalf of the Board of Directors
For AMOD AGRAWAL & ASSOCIATES BIKRAMJIT AHLUWALIA SHOBHIT UPPAL
ICAI Firm Registration No. 005780N Chairman & Managing Director (Chief Executive Officer) Dy. Managing Director
Chartered Accountants DIN 00304947 DIN 00305264
SMITA GUPTA VIPIN KUMAR TIWARI SATBEER SINGH
Partner G.M. (Corporate) & Company Secretary Chief Financial Officer
Membership No. 087061 ACS. 10837 PAN : ARLPS6573L
Place : New Delhi
Date : 30-06-2020

Annual Report 2019-20 85

Statement of Cash Flow for the Year Ended 31st March, 2020
(` in Lacs)
31.03.2020 31.03.2019
A. Cash Flow from Operating Activities
Net Profit/(Loss) before Tax 9,658.97 17,947.11
Adjustment for :
Depreciation & amortisation expense 3,187.15 2,755.79
Interest Income (986.56) (789.28)
Interest Expense 2,311.58 1,017.94
Interest on Income Tax 4.74 47.92
Doubtful advances/debts written off 4,231.70 1,339.74
Liabilities written back (51.57) (166.71)
(Gain) / Loss on Sale of Property, Plant and Equipment (net) (6.17) (17.37)
Operating Profit before working Capital Changes : 18,349.84 22,135.15
Movements in Working Capital :
(Increase)/decrease in Trade Receivables (4,360.15) (9,258.66)
(Increase)/decrease in Inventories (7,286.54) (3,316.02)
Increase/(decrease) in Trade payables, Financial and Other liabilities and 19,429.29 9,362.53
Provisions
(Increase)/decrease in Other financial assets and Other assets (10,459.58) (2,441.70)
Cash generated from Operations : 15,672.86 16,481.29
Direct Taxes Paid (Net of refunds) (4,707.35) (7,912.08)
Net Cash flow from/(used in) Operating Activities (A) 10,965.50 8,569.21
B. Cash Flow from Investing Activities
Purchase of property, plant and equipment including capital work-in-progress (3,675.18) (2,980.87)
Movement in Fixed Deposits with Banks (1,860.24) (2,022.30)
Movement in Unpaid Dividend Account - 0.37
Proceeds from sale of property, plant and equipment 50.39 51.51
Interest Received 896.17 690.19
Net Cash flow from/(used in) Investing Activities (B) (4,588.87) (4,261.10)
C. Cash Flow from Financing Activities
Proceeds from/ (repayment of) Long term borrowings 0.32 (4.44)
Proceeds from/ (repayment of) Short term borrowings (1,373.51) 3,135.21
Dividend paid (200.96) (200.96)
Dividend Distribution Tax paid (41.31) (41.31)
Payment of Lease Liabilities (154.24) -
Interest Paid (1,866.44) (978.56)
Net Cash flow from/(used) in Financing Activities (C) (3,636.14) 1,909.94
Net Increase/(Decrease) in Cash & Cash Equivalents (A+B+C) 2,740.49 6,218.05
Cash & Cash equivalents at the beginning of the year 13,758.19 7,540.14
Cash & Cash equivalents at the end of the year 16,498.68 13,758.19
Components of Cash and Cash Equivalents
Cash in Hand 63.19 48.25
Deposits with original maturity of less than 3 months 670.68 -
Balance with Scheduled Banks :
Current Accounts 15,764.81 13,709.94
16,498.68 13,758.19
Add:- Term Deposits pledged with Scheduled banks not considered as cash and 10,034.27 8,174.03
cash equivalents (refer note 17)
Add :- Unpaid Dividend Accounts (refer note 17) 0.32 0.17
Less:- Fixed Deposits having remaining maturity period more than 12 months 2,148.06 1,017.32
(refer note 10)
Cash and Bank Balances 24,385.21 20,915.07
The accompanying notes are an integral part of the financial statements.

As per our report of even date annexed For and on behalf of the Board of Directors
For AMOD AGRAWAL & ASSOCIATES BIKRAMJIT AHLUWALIA SHOBHIT UPPAL
ICAI Firm Registration No. 005780N Chairman & Managing Director (Chief Executive Officer) Dy. Managing Director
Chartered Accountants DIN 00304947 DIN 00305264
SMITA GUPTA VIPIN KUMAR TIWARI SATBEER SINGH
Partner G.M. (Corporate) & Company Secretary Chief Financial Officer
Membership No. 087061 ACS. 10837 PAN : ARLPS6573L
Place : New Delhi
Date : 30-06-2020

86 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Statement of Changes in Equity for the Year Ended 31st March, 2020

A. Equity Share Capital

Equity shares of `2/- each issued, subscribed and fully paid (refer note 21) Number of shares Amount (` in Lakhs)
As at 01.04.2018 6,69,87,560 1,339.75
Increase/(decrease) during the year - -
As at 31.03.2019 6,69,87,560 1,339.75
Increase/(decrease) during the year - -
As at 31.03.2020 6,69,87,560 1,339.75

B. Other Equity
For the Year Ended 31st March 2020 and Year Ended 31st March 2019
(` in Lacs)

Reserves and Surplus Items of Other Total

Comprehensive Income
Securities General Retained Equity Instruments
Premium Reserve Earnings through Other
(Restated) Comprehensive Income
Balance as at 01.04.2018 5,061.00 3,272.97 52,547.20 22.35 60,903.52
Impact of Ind AS -115 (effective from 283.70 283.70
01.04.2018)
Balance as at 01.04.2018 (Restated) 5,061.00 3,272.97 52,830.91 22.35 61,187.22
Profit for the year ended - - 11,737.93 - 11,737.93
Less :- Cash Dividend (Final) (200.96) (200.96)
Less :- Dividend Distribution Tax (41.31) (41.31)
Other Comprehensive Income :
Re-measurement of defined benefit plans (net (183.12) (183.12)
of tax)
Total Comprehensive Income for the year - - 11,312.54 - 11,312.54
Balance as at 31.03.2019 5,061.00 3,272.97 64,143.44 22.35 72,499.76
Impact on account of adoption of Ind AS-116 360.49 360.49
(Refer note 45)
Restated Balance as at 01.04.2019 5,061.00 3,272.97 64,503.93 22.35 72,860.25
Profit for the year ended - - 6,443.59 - 6,443.59
Less :- Cash Dividend (Final) (200.96) (200.96)
Less :- Dividend Distribution Tax (41.31) (41.31)
Other Comprehensive Income :
Re-measurement of defined benefit plans (net - - 1.76 - 1.76
of tax)
Total Comprehensive Income for the year - - 6,203.07 - 6,203.07
Balance as at 31.03.2020 5,061.00 3,272.97 70,707.00 22.35 79,063.32

i) Refer note No. 22 for nature and purpose of reserves

Summary of Significant Accounting Policies 2
The accompanying notes are an integral part of the financial statements.

As per our report of even date annexed For and on behalf of the Board of Directors
For AMOD AGRAWAL & ASSOCIATES BIKRAMJIT AHLUWALIA SHOBHIT UPPAL
ICAI Firm Registration No. 005780N Chairman & Managing Director (Chief Executive Officer) Dy. Managing Director
Chartered Accountants DIN 00304947 DIN 00305264
SMITA GUPTA VIPIN KUMAR TIWARI SATBEER SINGH
Partner G.M. (Corporate) & Company Secretary Chief Financial Officer
Membership No. 087061 ACS. 10837 PAN : ARLPS6573L
Place : New Delhi
Date : 30-06-2020

Annual Report 2019-20 87

Notes to the financial statements for the year ended 31st March, 2020
1. Corporate information The principal or the most advantageous market must be
Ahluwalia Contracts (India) Limited (hereinafter referred to as accessible by the Company. The fair value of an asset or
“the Company”) is a Public Ltd. Company domiciled in India, a liability is measured using the assumptions that market
having its registered office located at A-177, Okhla Industrial participants would use when pricing the asset or liability,
Area, Phase-I, New Delhi-110020, India and incorporated under assuming that market participants act in their economic
the provisions of the Companies Act, 1956. The Company is best interest.
primarily engaged in the business of civil construction activities. A fair value measurement of a non-financial asset takes
The Company has also diversified into developing and operating into account a market participant’s ability to generate
commercial complex under license arrangement and is also economic benefits by using the asset in its highest and
engaged in the real estate trading business. The Company has best use or by selling it to another market participant that
its primary listings on BSE Limited, National Stock Exchange of would use the asset in its highest and best use.
India Limited (NSE) and Calcutta Stock Exchange Ltd. The Company uses valuation techniques that are
These financial statements were authorised by Board of appropriate in the circumstances and for which sufficient
Directors for issuing accordance with a resolution passed on data is available to measure fair value, maximising the
30th June, 2020. use of relevant observable inputs and minimising the use
of unobservable inputs.
2. Significant accounting policies Where required/appropriate, external valuers are involved.
The significant accounting policies applied by the Company All financial assets and liabilities for which fair value is
in the preparation of its financial statements are listed below. measured or disclosed in the financial statements are
Such accounting policies have been applied consistently to all categorised within the fair value hierarchy established by
the periods presented in these financial statements. Ind AS-113, that categorises into three levels, the inputs
to valuation techniques used to measure fair value. These
2.1 Basis of preparation are based on the degree to which the inputs to the fair
value measurements are observable and the significance
a) Statement of compliance with Ind AS:
of the inputs to the fair value measurement in its entirety:
These financial statements are prepared in accordance
Level 1 inputs are quoted prices (unadjusted) in active
with the Indian Accounting Standards (hereinafter referred
markets for identical assets or liabilities that the entity
to as the ‘Ind AS’) under the historical cost convention on
can access at the measurement date.
the accrual basis except for certain financial instruments
which are measured at fair values, the provisions of the Level 2 inputs are inputs other than quoted prices
Companies Act 2013 (“The Act”) and guidelines issued included within Level 1 that are observable for the asset
by the Securities and Exchange Board of India (SEBI). or liability, either directly(i.e. as prices) or indirectly(i.e.
The Ind AS are prescribed under section 133 of the derived from prices).
Companies Act, 2013 read with rule 3 of the Companies Level 3 inputs are unobservable inputs for the asset or
(Indian Accounting Standards) Rules, 2015 as amended liability.
and other relevant provisions of the Act.
The fair value hierarchy gives the highest priority to
b) Basis of measurement quoted prices (unadjusted) in active markets for identical
assets or liabilities (Level 1 inputs) and the lowest priority
These financial statements are prepared under the
to unobservable inputs (Level 3 inputs).
historical cost convention except for the following material
items those have been measured at fair value as required For financial assets and liabilities maturing within one
by relevant Ind AS : year from the Balance Sheet date and which are not
carried at fair value, the carrying amount approximates
- certain financial assets and liabilities that are
fair value due to the short maturity of these instruments.
measured at fair value;
The Company recognises transfers between levels of fair
- defined benefit plans - plan assets measured at fair
value hierarchy at the end of reporting period during
value;
which change has occurred.
Also, the fair values of financial instruments measured
at amortised cost are required to be disclosed in the said c) Current non-current classification:
financial statements. The Company presents assets and liabilities in the balance
Historical cost is generally based on the fair value of the sheet based on current/ non-current classification. An
consideration given in exchange for assets. asset is treated as current when it is:
• Expected to be realised or intended to be sold or
Fair value measurement:
consumed in normal operating cycle
Fair value is the price that would be received on sale of an
• Held primarily for the purpose of trading
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date • Expected to be realised within twelve months after
(that is, an exit price). It is a market-based measurement, the reporting period, or
not an entity-specific measurement. The fair value • Cash or cash equivalent unless restricted from
measurement is based on the presumption that the being exchanged or used to settle a liability for at
transaction to sell the asset or transfer the liability takes least twelvemonths after the reporting period
place either: All other assets are classified as non-current.
• In the principal market for the asset or liability, or A liability is current when:
• In the absence of a principal market, in the most • It is expected to be settled in normal operating cycle
advantageous market for the asset or liability

88 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

• It is held primarily for the purpose of trading With respect to the method for recognising revenue over time
• It is due to be settled within twelve months after the (i.e. the method for measuring progress towards complete
reporting period, or satisfaction of a performance obligation), the Company has
established certain criteria that are applied consistently for
• There is no unconditional right to defer the similar performance obligations. In this regard, the method
settlement of the liability for at least twelve months chosen by the Company to measure the value of goods or
after the reporting period services for which control is transferred to the customer over
The Company classifies all other liabilities as non-current. time is the output method based on surveys of performance
Deferred tax assets and liabilities are classified as non- completed to date (or measured unit of work), according to
current assets and liabilities. which revenue is recognised corresponding to the units of work
performed and on the basis of the price allocated thereto. In
Operating cycle for the business activities of the Group
cases where the work performed till the reporting date has not
covers the duration of the specific project/contract/
reached the milestone specified in the contract, the Company
product line/service including the defect liability period,
recognises revenue only to the extent that it is highly probable
wherever applicable and extends up to the realisation
that the customer will acknowledge the same. This method is
of receivables (including retention monies) within the
applied as the progress of the work performed can be measured
agreed credit period normally applicable to the respective
during its performance on the basis of the contract. Under
projects/lines of business.
this method, on a regular basis, the work completed under
d) Functional and presentation currency each contract is measured and the corresponding output is
recognised as revenue.
Items included in the financial statements of the
Company are measured using the currency of the primary Contract modifications are accounted for when additions,
economic environment in which the Company operates deletions or changes are approved either to the scope or price or
(i.e. the “functional currency”). The financial statements both. Goods/services added that are not distinct are accounted
are presented in Indian Rupee, the national currency of for on a cumulative catch up basis. Goods / services that are
India, which is the functional currency of the Company. distinct are accounted for prospectively as a separate contract,
if the additional goods/services are priced at the standalone
e) Rounding of amounts: selling price else as a termination of the existing contract and
All amounts disclosed in the financial statements and creation of a new contract. In cases where the additional work
notes are in Indian Rupees in Lakhs rounded off to has been approved but the corresponding change in price has
two decimal places as permitted by Schedule III to the not been determined, the recognition of revenue is made for
Companies Act, 2013, unless otherwise stated. an amount with respect to which it is highly probable that a
significant reversal will not occur.
2.2 Use of estimates
If the consideration promised in a contract includes a variable
The preparation of financial statements in conformity with the amount, this amount is recognised only to the extent that it
recognition and measurement principles of the Ind AS requires is highly probable that a significant reversal in the amount
management to make judgements, estimates and assumptions recognised will not occur.
that affect the application of the accounting policies and the
In some circumstances (for example, in the early stages of a
reported amounts of assets and liabilities, the disclosure of
contract), an entity may not be able to reasonably measure the
contingent assets and liabilities at the date of the financial
outcome of a performance obligation, but the entity expects
statements, and the reported amounts of revenues, expenses
to recover the costs incurred in satisfying the performance
and the results of operations during the reporting period. Actual
obligation. In those circumstances, the entity recognise revenue
results could differ from those estimates. The estimates and
only to the extent of the costs incurred until such time that
underlying assumptions are reviewed on an ongoing basis. Such
it can reasonably measure the outcome of the performance
estimates & assumptions are based on management evaluation
obligation.
of relevant facts & circumstances as on date of financial
statements. Revisions to accounting estimates are recognised Contract costs
in the period in which the estimate is revised if the revision
Costs related to work performed in projects are recognised on
affects only that period; they are recognised in the period of the
an accrual basis. Costs incurred in connection with the work
revision and future periods if the revision affects both current
performed are recognised as an expense.
and future periods.
Provision for future losses
2.3 Revenue recognition
Provision for future losses are recognised as soon as it becomes
Revenue from construction/project related activity is recognised
evident that the total costs expected to be incurred in a contract
as follows:
exceed the total expected revenue from that contract.
Revenue from contracts with customers is recognised when
control of the goods or services are transferred to the customer Contract balances
at an amount that reflects the consideration to which the
i) Contract assets
Company expects to be entitled in exchange for those goods or
services. A contract asset is recognised for amount of work done
but pending billing/acknowledgement by customer or
A single performance obligation is identified in the construction
amounts billed but payment is due on completion of
projects that the Company engages in, owing to the high degree
future performance obligation, since it is conditionally
of integration and customisation of the various goods and
receivable. The provision for Expected Credit Loss on
services to provide a combined output which is transferred to
contract assets is made on the same basis as financial
the customer over time and not at a specific point in time since
assets as stated in note No. 2.7.
the entity’s performance creates or enhances as asset that the
customer controls as the asset is created or enhanced.

Annual Report 2019-20 89

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

ii) Trade receivables iii. borrowing cost directly attributable to the qualifying asset
A receivable represents the Company’s right to an in accordance with accounting policy on borrowing cost.
amount of consideration that is unconditional (i.e., only iv. the costs of dismantling, removing the item and restoring
the passage of time is required before payment of the the site on which it is located.
consideration is due). Refer to accounting policies of PPE in the course of construction for production, supply
financial assets in section Financial instruments – Initial or administrative purposes are carried at cost, less any
recognition and subsequent measurement. recognised impairment loss. Cost includes direct costs,
related pre-operational expenses and for qualifying assets
iii) Contract liabilities
applicable borrowing costs to be capitalised in accordance
A contract liability is the obligation to transfer goods with the Company’s accounting policy. Administrative, general
or services to a customer for which the Company has overheads and other indirect expenditure (including borrowing
received advance payments from the customer. If a costs) incurred during the project period which are not directly
customer pays consideration before the Company related to the project nor are incidental thereto, are expensed.
transfers goods or services to the customer, a contract
Property, plant and equipment which are not ready for intended
liability is recognised when the consideration received.
use as on the date of Balance Sheet are disclosed as “Capital
Revenue (other than sale) work-in-progress”. They are classified to the appropriate
Revenue (other than sale) is recognised to the extent that it is categories of property, plant and equipment when completed
probable that the economic benefits will flow to the Company and ready for intended use. Depreciation of these assets, on the
and the revenue can be reliably measured. same basis as other items of PPE, commences when the assets
Claim on insurance companies and others, where quantum of are ready for their intended use.
accrual cannot be ascertained with reasonable certainty, are Capital work-in-progress are carried at cost, comprising direct
accounted for on acceptance basis. cost, related incidental expenses and attributable borrowing
Claim on clients: Claims are accounted as income in the cost, less impairment losses if any.
period of receipt of arbitration award or acceptance by client An item of property, plant and equipment is derecognised upon
or evidence of acceptance received. Interest awarded, being in disposal or when no future economic benefits are expected to
the nature of additional compensation under the terms of the arise from the continued use of asset. Any gain or loss arising
contract, is accounted as other operating revenue on receipt of on the disposal or retirement of an item of property, plant
favourable arbitration award. and equipment is determined as the difference between the
Rental Income : sales proceeds and the carrying amount of the asset and is
recognised in the Statement of Profit and Loss.
Rental Income from investment property is recognised in
statement of profit and loss on straight-line basis over the term When significant parts of an item of property, plant and
of the lease. equipment have materially different useful lives, they are
accounted for as separate items (major components) of property,
Interest Income plant and equipment. Such items, if any, are depreciated
Interest income from financial assets is recognised when it is separately.
probable that the economic benefits will flow to the Company Machinery spares which meets the criteria of PPE is capitalised
and the amount of income can be measured reliably. Interest and depreciated over the useful life of the respective asset.
income is accrued on a time basis by reference to the principal
outstanding and at the effective interest rate (EIR) applicable, Deemed cost on transition to Ind AS:
which is the rate that exactly discounts estimated future cash Under the Previous GAAP, all property, plant and equipment
receipts through the expected life of the financial asset to that were carried at in the Balance Sheet on basis of historical cost.
asset’s net carrying amount on initial recognition. Depreciation:
Dividend Depreciation on fixed assets (other than freehold land and
Dividend income is recognised when the Company’s right to capital work in progress) is provided on the straight line
receive dividend is established by the reporting date, which is method, based on their respective estimate of useful lives, as
generally when shareholders approve the dividend. given below. Estimated useful lives of assets are determined
based on internal assessment estimated by the management
2.4 Property, plant and equipment (PPE) of the Company and supported by technical advice wherever
Property, plant and equipment is stated at acquisition cost net of so required. The management believes that useful lives
accumulated depreciation and accumulated impairment losses, currently used, which is as prescribed under Schedule II to the
if any. Subsequent costs are included in the asset’s carrying Companies Act, 2013, fairly reflect its estimate of the useful
amount or recognised as a separate asset, as appropriate, only lives and residual values of fixed assets ( considered at 5%
when it is probable that future economic benefits associated of the original cost), though these lives in certain cases are
with the item will flow to the Company and the cost of the item different from lives prescribed under Schedule II.
can be measured reliably. All other repairs and maintenance are
charged to the Statement of Profit and Loss during the period in Type of assets Useful life in years
which they are incurred. Buildings
Cost of an item of property, plant and equipment comprises: Non Factory Building 60 years
i. its purchase price, including import duties and non –
Plant and Machinery * 4 - 15years
refundable purchase taxes (net of duty/ tax credit availed),
after deducting trade discounts and rebates. Furniture and Fixtures 10 years
ii. any costs directly attributable to bringing the asset to the Office Equipment 5 years
location and condition necessary for it to be capable of Vehicles 8 - 10 years
operating in the manner intended by management.

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 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

Type of assets Useful life in years Type of assets Useful life in years
Computers 3 years Computer software, license fees 5 years
*In respect of these assets, the management estimate of useful The amortisation period and the amortisation method for finite-
lives, based on technical assessment is different than the useful life intangible assets is reviewed at each financial year end.
lives prescribed under Part C of Schedule II to the Companies Changes in the expected useful life or the expected pattern of
Act, 2013. However, based on internal technical evaluation consumption of future economic benefits embodied in the asset
and external advice received, the management believes that are considered to modify the amortisation period or method,
the useful lives as considered for arriving at the depreciation as appropriate, and are treated as changes in accounting
rates, best represent the period over which management expect estimates and adjusted prospectively.
to use these assets.
2.6 Investment properties
Assets individually costing ` 5,000 or less are fully depreciated
in the year of acquisition. Properties including those under construction (land or a
building-or part of a building-or both) held (by the owner or by
Depreciation of an asset begins when it is available for use, i.e., the lessee under a finance lease) to earn rentals or for capital
when it is in the location and condition necessary for it to be appreciation or both, rather than for: (a) use in the production
capable of operating in the manner intended by management. or supply of goods or services or for administrative purposes;
Depreciation of an asset ceases at the earlier of the date that or (b) sale in the ordinary course of business; are classified as
the asset is retired from active use and is held for disposal and investment property.
the date that the asset is derecognised.
Investment properties are measured initially at cost, including
Depreciation methods, useful lives and residual values are transaction costs. Subsequent to initial recognition, investment
reviewed periodically including at the end of each financial properties are stated at cost less accumulated depreciation and
year. Any changes in depreciation method, useful lives and accumulated impairment loss, if any.
residual values are treated as a change in accounting estimate
and applied/adjusted prospectively, if appropriate. The Company has developed a building (being Bus Terminal and
Depot and Commercial Complex at Kota) for Rajasthan State
2.5 Intangible assets Road Transport Corporation (RSRTC) under an “Agreement to
Identifiable intangible assets are recognised when the Company develop”/ License Agreement on the land belonging to RSRTC
controls the asset, it is probable that future economic benefits under finance lease arrangement. The expenditure (construction
attributed to the asset will flow to the Company and the cost of cost) incurred has been shown in Balance Sheet under the
the asset can be reliably measured. main head “Investment Property” and sub-head Right of Use
Assets (Building) meeting the definition of Investment Property
At initial recognition, the separately acquired intangible assets as defined in Ind As 40. The Company has a right to sub-
with finite useful lives are recognised at cost of acquisition. lease Right of Use Asset (Commercial Complex). The primary
Following initial recognition, the intangible assets are carried lease period of Commercial complex is 30 years which can be
at cost less any accumulated amortisation and accumulated extended for a further period of 10 years at the option of the
impairment losses, if any. Company from the date of completion of the project. Thereafter,
Intangible assets not ready for the intended use on the date the Commercial Complex will be handed over to RSRTC. The
of the balance sheet are disclosed as ‘intangible assets under Management expects to use the said property in primary period
development’. of lease of 30 years.
An intangible asset should be derecognised (eliminated from Depreciation is recognised using straight line method so as to
the balance sheet) on disposal or when no future economic write off the cost of the investment property less their residual
benefits are expected from its use and subsequent disposal. values over their estimated useful lives.
Gains or losses arising from the retirement or disposal of The Company depreciates building held as investment property
an intangible asset should be determined as the difference over the period of 30 years having zero residual value.
between the net disposal proceeds and the carrying amount of Estimated useful life of the asset and residual value thereof
the asset and should be recognised as income or expense in the is determined based on internal assessment estimated by the
statement of profit and loss. management of the Company and supported by technical
Deemed cost on transition to Ind AS: advice wherever so required. Based on such assessment and
Under the Previous GAAP, all Intangible assets were carried at in advice, the management believes that useful life and residual
the Balance Sheet on basis of historical cost. The Company has value currently used is different from the useful life and residual
elected to continue with the carrying value of all of its intangible value prescribed in Schedule II to the Companies Act, 2013.
assets recognised as of 1st April, 2016 (the transition date) However, based on internal technical evaluation and external
measured as per the previous GAAP and use such carrying advice received, the management believes that the estimated
value as its deemed cost as of the transition date. useful life and residual value is realistic and reflect fair
approximation of the period over which the asset is likely to be
Amortisation:
used.
Intangible assets are amortised on a straight line basis over the
Depreciation method is reviewed at each financial year end to
estimated useful lives of respective assets from the date when
reflect the expected pattern of consumption of the future benefits
the asset are available for use, on pro-rata basis. Estimated
embodied in the investment property. The estimated useful life
useful lives by major class of finite-life intangible assets are as
and residual values are also reviewed at each financial year
follows:
end and the effect of any change in the estimates of useful life/
residual value is accounted on prospective basis. Freehold land
and properties under construction are not depreciated.
Though the Company measures investment property using

Annual Report 2019-20 91

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

cost-based measurement, the fair value of investment property flows from the asset.
is disclosed in the notes. Fair values are determined based Impairment of Financial Asset:
on an annual evaluation performed by an accredited external
independent valuer. In accordance with Ind AS 109, the Company applies the
expected credit loss (“ECL”) model for measurement and
An investment property is derecognised upon disposal or recognition of impairment loss on financial assets and credit
when the investment property is permanently withdrawn from risk exposures. The Company follows ‘simplified approach’ for
use/ expiry of lease term and no future economic benefits recognition of impairment loss allowance on trade receivables
are expected from the disposal. Any gain or loss arising on or contract revenue receivables. Simplified approach does not
derecognition of property is recognised in the Statement of require the Company to track changes in credit risk. Rather, it
Profit and Loss in the same period. recognises impairment loss allowance based on lifetime ECL
On transition to Ind AS, the Company has opted to continue at each reporting date, right from its initial recognition. This
with the carrying values measured under the previous GAAP involves use of provision matrix constructed on the basis of
as at 1st April 2016 of its investment properties and used that historical credit loss experience and adjusted for forward looking
carrying value as the deemed cost of the investment properties information. The expected credit loss allowance is based on the
on the date of transition i.e. 1st April, 2016. ageing of the receivables that are due and the rates used in the
provision matrix.
2.7 Financial instruments
For recognition of impairment loss on other financial assets
Financial Assets: and risk exposure, the Company determines that whether
Initial recognition and measurement: there has been a significant increase in the credit risk since
initial recognition. If credit risk has not increased significantly,
Financial assets are recognised when the Company becomes a 12-month ECL is used to provide for impairment loss. However,
party to the contractual provisions of the instrument. if credit risk has increased significantly, lifetime ECL is used.
On initial recognition, a financial asset is recognised at fair If, in a subsequent period, credit quality of the instrument
value, except for trade receivables which are initially measured improves such that there is no longer a significant increase in
at transaction price. In case of financial assets which are credit risk since initial recognition, then the entity reverts to
recognised at fair value through profit and loss (FVTPL), its recognising impairment loss allowance based on 12-month
transaction costs are recognised in the statement of profit ECL.
and loss. In other cases, the transaction costs are added to or ECL is the difference between all contractual cash flows that
deducted from the fair value of the financial assets. are due to the group in accordance with the contract and all
Financial assets are subsequently classified as measured at the cash flows that the entity expects to receive (i.e., all cash
• amortised cost (if it is held within a business model shortfalls),discounted at the original EIR. Lifetime ECL are the
whose objective is to hold the asset in order to collect expected credit losses resulting from all possible default events
contractual cash flows and the contractual terms of the over the expected life of a financial instrument. The 12-month
financial asset give rise on specified dates to cash flows ECL is a portion of the lifetime ECL which results from default
that are solely payments of principal and interest on the events that are possible within 12 months after the reporting
principal amount outstanding) date.
• fair value through profit and loss (FVTPL) The Company measures the expected credit loss associated
with its assets based on historical trend, industry practices and
• fair value through other comprehensive income (FVOCI).
the business environment in which the entity operates or any
Equity Instruments: other appropriate basis. The impairment methodology applied
Investment in subsidiaries are measured at cost less impairment depends on whether there has been a significant increase in
losses, if any. credit risk.
All investments in equity instruments in scope of Ind AS 109 ECL impairment loss allowance (or reversal) recognised during
classified under financial assets are initially measured at fair the period is recognised as income/ expense in the Statement
value. of Profit and Loss.
If the equity investment is not held for trading, the Company Financial Liabilities and equity instruments:
may, on initial recognition, irrevocably elect to measure the same
Classification as debt or equity
either at FVOCI or FVTPL. The Company makes such election
on an instrument-by-instrument basis. Equity Instruments Debt and equity instruments issued by the Company are
which are held for trading are classified as measured at FVTPL. classified as either financial liabilities or as equity in accordance
with the substance of the contractual arrangements and the
Fair value changes on an equity instrument is recognised as
definitions of a financial liability and an equity instrument.
other income in the Statement of Profit and Loss unless the
Company has elected to measure such instrument at FVOCI. Equity instruments
Fair value changes excluding dividends, on an equity instrument An equity instrument is any contract that evidences a residual
measured at FVOCI are recognised in OCI. Amounts recognised interest in the assets of an entity after deducting all of its
in OCI are not subsequently reclassified to the Statement of liabilities. Equity instruments issued by a company entity are
Profit and Loss. Dividend income on the investments inequity recognised at the proceeds received, net of direct issue costs.
instruments are recognised as ‘other income’ in the Statement
Financial liabilities
of Profit and Loss.
Initial recognition and measurement:
Derecognition:
Financial liabilities are recognised when the Company becomes
The Company derecognises a financial asset when the
a party to the contractual provisions of the instrument.
contractual rights to the cash flows from the financial asset
expire, or it transfers the contractual rights to receive the cash

92 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

Financial liabilities are classified, at initial recognition, as 2.8 Impairment of Non-financial assets
financial liabilities at fair value through profit or loss, loans and The carrying amounts of non-financial assets other than
borrowings, payables, or as derivatives designated as hedging inventories are assessed at each reporting date to ascertain
instruments in an effective hedge, as appropriate. All financial whether there is any indication of impairment. If any such
liabilities are recognised initially at fair value and, in the case of indication exists then the asset’s recoverable amount is
loans and borrowings and payables, net of directly attributable estimated. An impairment loss is recognised, as an expense
transaction costs. in the Statement of Profit and Loss, for the amount by which
The fair value of a financial instrument at initial recognition is the asset’s carrying amount exceeds its recoverable amount.
normally the transaction price. If the Company determines that The recoverable amount is the higher of an asset’s fair value
the fair value at initial recognition differs from the transaction less cost to sell and value in use. Value in use is ascertained
price, difference between the fair value at initial recognition and through discounting of the estimated future cash flows using
the transaction price shall be recognised as gain or loss unless a discount rate that reflects the current market assessments
it qualifies for recognition as an asset or liability. of the time value of money and the risk specific to the assets.
In accordance with Ind AS 113, the fair value of a financial For the purpose of assessing impairment, assets are grouped at
liability with a demand feature is not less than the amount the lowest levels into cash generating units for which there are
payable on demand, discounted from the first date that the separately identifiable cash flows.
amount could be required to be paid. Impairment losses recognised in prior years are reversed when
The Company’s financial liabilities include trade and other there is an indication that the impairment losses recognised no
payables and loans and borrowings including bank overdrafts. longer exist or have decreased. Such reversals are recognised
as an increase in carrying amounts of assets to the extent
Subsequent measurement
that it does not exceed the carrying amounts that would have
The measurement of financial liabilities depends on their been determined (net of amortisation or depreciation) had no
classification, as described below: impairment loss been recognised in previous years.
Loans and borrowings
2.9 Borrowing costs
After initial recognition, interest-bearing loans and borrowings
Borrowing costs comprises interest expense on borrowings
are subsequently measured at amortised cost using the EIR
calculated using the effective interest method and exchange
method. Gains and losses are recognised in profit or loss when
differences arising from foreign currency borrowings to the
the liabilities are derecognised as well as through the EIR
extent that they are regarded as an adjustment to interest costs.
amortisation process.
The effective interest method is a method of calculating the
Amortised cost is calculated by taking into account any
amortised cost of a financial asset or a financial liability and
discount or premium on acquisition and fees or costs that are
of allocating the interest income or interest expense over the
an integral part of the EIR. The EIR amortisation is included as
relevant period.
finance costs in the statement of profit and loss, unless and to
the extent capitalised as part of costs of an asset. The effective interest rate (EIR) is the rate that exactly discounts
estimated future cash payments or receipts through the
The effective interest method is a method of calculating the
expected life of the financial instrument or, when appropriate, a
amortised cost of a financial liability and of allocating interest
shorter period to the net carrying amount of the financial asset
expense over the relevant period. The effective interest rate is
or financial liability. EIR calculation does not include exchange
the rate that exactly discounts estimated future cash payments
differences.
(including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and Borrowing costs that are directly attributable to the acquisition,
other premiums or discounts) through the expected life of the construction or production of a qualifying asset, which are
financial liability, or (where appropriate) a shorter period, to the assets that necessarily take a substantial period of time to get
net carrying amount on initial recognition. ready for their intended use or sale, are included in the cost of
those assets. Such borrowing costs are capitalised as part of
Trade and other payables
the cost of the asset when it is probable that they will result
For trade and other payables maturing within one year from in future economic benefits to the entity and the costs can be
the balance sheet date, the carrying amounts approximate fair measured reliably. Other borrowing costs are recognised as an
value due to the short maturity of these instruments. expense in the period in which they are incurred.
Derecognition The capitalisation of borrowing costs as part of the cost of a
A financial liability is derecognised when the obligation under qualifying asset commences when expenditure for the asset is
the liability is discharged or cancelled or expires. When an being incurred, borrowing costs are being incurred and activities
existing financial liability is replaced by another from the same that are necessary to prepare the asset for its intended use or
lender on substantially different terms, or the terms of an sale are in progress.
existing liability are substantially modified, such an exchange Capitalisation of borrowing costs is suspended or ceases
or modification is treated as the derecognition of the original when substantially all the activities necessary to prepare
liability and the recognition of a new liability. The difference in the qualifying asset, if any, for its intended use or sale are
the respective carrying amounts is recognised in the statement interrupted or completed.
of profit or loss.
Investment income earned on the temporary investment of
Off setting of Financial Instruments specific borrowings pending their expenditure on qualifying
Financial assets and financial liabilities are offset and the net assets is deducted from the borrowing costs eligible for
amount is reported in the Balance Sheet if there is currently capitalisation.
enforceable legal right to offset the recognised amount and
there is an intention to settle on a net basis, to realise the assets 2.10 Foreign currency transactions
and settle the liabilities simultaneously. The financial statements are presented in Indian Rupees (INR),

Annual Report 2019-20 93

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

the functional currency of the Company. Items included in the lease liability comprise the following:
financial statements of the Company are recorded using the – Fixed payments, including in-substance fixed
currency of the primary economic environment in which the payments;
Company operates (the ‘functional currency’).
– Variable lease payments that depend on an index or
Foreign currency transactions are translated into the functional a rate, initially measured using the index or rate as
currency using exchange rates at the date of the transaction. at the commencement date;
Foreign exchange gains and losses from settlement of these
transactions, and from translation of monetary assets and – Amounts expected to be payable under a residual
liabilities at the reporting date exchange rates are recognised in value guarantee; and
the Statement of Profit and Loss. – The exercise price under a purchase option that
Non-monetary assets and liabilities denominated in a foreign the Company is reasonably certain to exercise,
currency and measured at historical cost are translated at the lease payments in an optional renewal period if
exchange rate prevalent at the date of transaction. the Company is reasonably certain to exercise an
extension option, and penalties for early termination
2.11 Leases of a lease unless the Company is reasonably certain
The determination of whether an arrangement is (or contains) not to terminate early.
a lease is based on the substance of the arrangement at the The lease liability is measured at amortised cost using the
inception of the lease. The arrangement is, or contains, a lease effective interest method. It is remeasured when there is
if fulfillment of the arrangement is dependent on the use of a a change in future lease payments arising from a change
specific asset or assets and the arrangement conveys a right in an index or rate, if there is a change in the Company’s
to use the asset or assets, even if that right is not explicitly estimate of the amount expected to be payable under
specified in an arrangement. a residual value guarantee, or if Company changes its
assessment of whether it will exercise a purchase,
(a) Company as a Lessee extension or termination option.
The Company’s lease asset classes primarily consist of When the lease liability is remeasured in this way, a
leases for commercial complex, land and buildings. The corresponding adjustment is made to the carrying amount
Company assesses whether a contract contains a lease, of the right-of-use asset, or is recorded in profit or loss if
at inception of a contract. A contract is, or contains, a the carrying amount of the right-of-use asset has been
lease if the contract conveys the right to control the use reduced to zero.
of an identified asset for a period of time in exchange for
The Company presents right-of-use assets that do not
consideration. To assess whether a contract conveys the
right to control the use of an identified asset, the Company meet the definition of investment property in ‘property,
plant and equipment’ and lease liabilities separately in
assesses whether: (i) the contract involves the use of an
balance sheet.
identified asset (ii) the Company has substantially all of
the economic benefits from use of the asset through the Short-term leases and leases of low-value assets
period of the lease and (iii) the Company has the right to
The Company has elected not to recognise right-of-use
direct the use of the asset.
assets and lease liabilities for short term leases that
The Company recognises a right-of-use asset and a lease have a lease term of 12 months or less. The Company
liability at the lease commencement date. The right-of- recognises the lease payments associated with these
use asset is initially measured at cost, which comprises leases as an expense on a straight-line basis over the
the initial amount of the lease liability adjusted for any lease term.
lease payments made at or before the commencement
date, plus any initial direct costs incurred and an estimate (b) Group as a Lessor
of costs to dismantle and remove the underlying asset or Leases for which the Company is a lessor is classified as
to restore the underlying asset or the site on which it is a finance or operating lease. Whenever the terms of the
located, less any lease incentives received. lease transfer substantially all the risks and rewards of
The right-of-use asset is subsequently depreciated using ownership to the lessee, the contract is classified as a
the straight-line method from the commencement date finance lease. All other leases are classified as operating
to the earlier of the end of the useful life of the right-of- leases.
use asset or the end of the lease term. The estimated
useful lives of right-of-use assets are determined on the
Finance lease
same basis as those of property, plant and equipment. Amounts due from lessees under finance leases are
In addition, the right-of-use asset is periodically reduced recorded as receivables at the Company’s net investment
by impairment losses, if any, and adjusted for certain re- in the leases. Finance lease income is allocated to
measurements of the lease liability. accounting periods so as to reflect a constant periodic
rate of return on the net investment outstanding in respect
The lease liability is initially measured at the present
of the lease.
value of the lease payments that are not paid at the
commencement date, discounted using the interest rate Operating lease
implicit in the lease or, if that rate cannot be readily
Rental income from operating sub lease of Right of Use
determined, Company’s incremental borrowing rate.
(ROU) Asset is recognised on a straight-line basis over the
Generally, the Company uses its incremental borrowing term of the relevant lease unless either another systematic
rate as the discount rate. basis is more representative of the time pattern in which
Lease payments included in the measurement of the use benefit derived from the leased asset is diminished,
even if the payments to the lessor are not on that basis.

94 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

Where the Company provides incentives for the lessee to 2.12 (a) Inventories
enter into the agreement such as an up-front cash payment Inventories are valued at the lower of cost and net
to the lessee or the reimbursement or assumption by the realisable value.
lessor of costs of the lessee (such as relocation costs,
leasehold improvements and costs associated with a pre- Costs incurred in bringing each product to its present
existing lease commitment of the lessee), such incentives location and condition, are accounted for as follows:
are recognised as an integral part of the net consideration • Construction materials, stores and spares: cost
agreed for the use of the leased asset, irrespective of the includes cost of purchase (viz. the purchase price,
incentive’s nature or form or the timing of payments. import duties and other taxes (other than those
subsequently recoverable by the entity from the
Transition taxing authorities), and transport, handling and
Effective 1st April 1, 2019, the Company adopted Ind other costs directly attributable to the acquisition
AS 116 “Leases” and applied the standard to all lease and is net of trade discounts, rebates and other
contracts existing on 1st April, 2019 using the modified similar items) and other costs incurred in bringing
retrospective method and has taken the cumulative the inventories to their present location and
adjustment to retained earnings, on the date of initial condition. Cost is determined on first in first out
application. Consequently, the Company recorded the (FIFO) basis.
lease liability at the present value of the lease payments • Traded goods: cost includes cost of purchase and
discounted at the incremental borrowing rate and the other costs incurred in bringing the inventories
right of use asset at its carrying amount as if the standard to their present location and condition. Cost is
had been applied since the commencement date of the determined on first in first out basis.
lease, but discounted at the Company’s incremental
borrowing rate at the date of initial application. The Net realisable value is the estimated selling price in
comparative information as at and for the year ended the ordinary course of business, less estimated costs of
31st March, 2019 have not been retrospectively adjusted completion and the estimated costs necessary to make
and therefore will continue to be reported under Ind AS- the sale.
17 included as part of our Annual Report for year ended Assessment of net realisable value is made in each
31st March, 2019. subsequent period and when the circumstances that
On transition as at 1st April, 2019 the Company has previously caused inventories to be written-down below
recognised: cost no longer exist or when there is clear evidence of
an increase in net realisable value because of changed
(i) License fee payable to Rajasthan State Road economic circumstances, the write-down, if any, in the
Transport Corporation (RSRTC) under an past period is reversed to that extent of the original amount
“Agreement to Develop” / “License agreement” written-down so that the resultant carrying amount is the
with regard to Commercial Complex of ` 2,992.77 lower of the cost and the revised net realisable value.
Lakhs as Investment Property (Right of Use Assets
meeting the definition of Investment Property as Obsolete, slow moving and defective inventories are
defined in Ind AS-40) and a corresponding lease identified from time to time and, where necessary, a
liability of ` 2,511.04 Lakhs by credit to retained provision is made for such inventories.
earnings of ` 360.49 Lakhs (net of deferred tax of (b) Inventory property
` 121.24 Lakhs),
Properties (including under construction) acquired for
(ii) Reclassification of Lease Hold Land shown under sale in the ordinary course of business, rather than to be
Property, Plant & Equipment of ` 336.82 Lakhs to held for rental or capital appreciation, is held as inventory
Right of Use Assets. property and is measured at the lower of cost and net
The following is the summary of practical expedients realisable value (NRV).
elected on initial application: Cost includes: Freehold and leasehold rights for land,
1. Applied a single discount rate to a portfolio of leases amounts paid to contractors/builders for construction
of similar assets in similar economic environment linked payments for flats acquired by allotment from
with a similar end date. builders, property transfer taxes, and other related costs.
2. Applied the exemption not to recognise right-of- Non-refundable commissions paid to sales or marketing
use assets and liabilities for leases with less than agents on the sale of real estate units are expensed when
12 months of lease term on the date of initial paid.
application. NRV is the estimated selling price in the ordinary course
3. Excluded the initial direct costs from the of the business, based on market prices at the reporting
measurement of the right-of-use asset at the date date and discounted for the time value of money if
of initial application. material, less estimated costs of completion and the
4. Applied the practical expedient to grandfather estimated costs necessary to make the sale.
the assessment of which transactions are leases. The cost of inventory property recognised in profit or loss
Accordingly, Ind AS 116 is applied only to contracts on disposal is determined with reference to the specific
that were previously identified as leases under Ind costs incurred on the property sold.
AS 17.
2.13 Employee benefits
The weighted average incremental borrowing rate applied
to lease liabilities as at 1st April, 2019 is 9.7% Short- term employee benefits:
All employee benefits payable wholly within twelve months
of rendering the service are classified as short-term employee

Annual Report 2019-20 95

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

benefits. Benefits such as salaries, wages, social security minimum alternate tax is applicable) and tax credits computed
contributions, short term compensated absences (paid annual in accordance with the provisions of the Income Tax Act 1961,
leaves) etc. are measured on an undiscounted basis at the and based on the expected outcome of assessments/appeals.
amounts expected to be paid when the liabilities are settled Current income tax assets and liabilities are measured at the
and are expensed in the period in which the employee renders amount expected to be recovered from or paid to the taxation
the related service. authorities. The tax rates and tax laws used to compute the
Post-employment benefits: amount are those that are enacted or substantively enacted, at
i) Defined contribution plan the reporting date in the countries where the Group operates
and generates taxable income.
The defined contribution plan is postemployment
benefit plan under which the Company contributes Current income tax relating to items recognised outside profit
fixed contribution to a government administered fund or loss is recognised outside profit or loss (either in other
and will have no obligation to pay further contribution. comprehensive income or in equity). Current tax items are
The Company’s defined contribution plan comprises of recognised in correlation to the underlying transaction either in
Provident Fund and Employee State Insurance Scheme. other comprehensive income or directly in equity. Management
The Company’s contribution to defined contribution plans periodically evaluates positions taken in the tax returns with
are recognised in the Statement of Profit and Loss in the respect to situations in which applicable tax regulations are
period in which employee renders the related service. subject to interpretation and establishes provisions where
appropriate.
ii) Defined benefit plan
Current tax assets and current tax liabilities are offset when
The Company’s obligation towards gratuity liability is there is a legally enforceable right to set off the recognised
funded to an approved gratuity fund, which fully covers amounts and there is an intention to settle the asset and the
the said liability under Group Gratuity Cash Accumulation liability on a net basis.
Policy of Life Insurance Corporation of India (LIC).
The present value of the defined benefit obligations Deferred tax:
is determined based on actuarial valuation using the Deferred tax is provided using the liability method on temporary
projected unit credit method. The rate used to discount differences between the tax bases of assets and liabilities and
defined benefit obligation is determined by reference their carrying amounts for financial reporting purposes at the
to market yields at the Balance Sheet date on Indian reporting date.
Government Bonds for the estimated term of obligations. Deferred tax liabilities are recognised for all taxable temporary
The amount recognised as ‘Employee benefit expenses’ in differences, except:
the Statement of Profit and Loss is the cost of accruing • When the deferred tax liability arises from the initial
employee benefits promised to employees over the recognition of goodwill or an asset or liability in a
current year and the costs of individual events such as transaction that is not a business combination and, at
past/future service benefit changes and settlements (such the time of the transaction, affects neither the accounting
events are recognised immediately in the Statement of profit nor taxable profit or loss
Profit and Loss).
• In respect of taxable temporary differences associated
The amount of net interest expense calculated by with investments in subsidiaries, associates and interests
applying the liability discount rate to the net defined in joint arrangements, when the timing of the reversal
benefit liability or asset is charged or credited to ‘Finance of the temporary differences can be controlled and it is
costs’ in the Statement of Profit and Loss. probable that the temporary differences will not reverse
Re-measurement of net defined benefit liability/ asset in the foreseeable future
pertaining to gratuity comprise of actuarial gains/ losses Deferred tax assets are recognised for all deductible temporary
(i.e. changes in the present value of the defined benefit differences, the carry forward of unused tax credits and any
obligation resulting from experience adjustments and unused tax losses &unabsorbed tax depreciation. Deferred
effects of changes in actuarial assumptions), the return tax assets are recognised to the extent that it is probable that
on plan assets (excluding interest) and the effect of the taxable profit will be available against which the deductible
asset ceiling (if any, excluding interest)and is recognised temporary differences, and the carry forward of unused tax
immediately in the balance sheet with a charge or credit credits and unused tax losses can be utilised, except:
recognised in other comprehensive income in the period
in which they occur. Re-measurements are not reclassified • When the deferred tax asset relating to the deductible
to profit or loss account in subsequent periods. temporary difference arises from the initial recognition of
an asset or liability in a transaction that is not a business
Other long-term employee benefit obligations: combination and, at the time of the transaction, affects
No provision for Leaves is made as accumulation and neither the accounting profit nor taxable profit or loss
payment/encashment of unused leaves is not allowed to • In respect of deductible temporary differences associated
employees. with investments in subsidiaries, associates and interests
2.14 Taxation in joint arrangements, deferred tax assets are recognised
only to the extent that it is probable that the temporary
Tax expense comprises of current and deferred tax and includes differences will reverse in the foreseeable future and
any adjustments related to past periods in current and/or taxable profit will be available against which the
deferred tax adjustments that may become necessary due to temporary differences can be utilised
certain developments or reviews during the relevant period.
The carrying amount of deferred tax assets is reviewed at each
Current income tax: reporting date and reduced to the extent that it is no longer
Tax on income for the current period is determined on the basis probable that sufficient taxable profit will be available to allow
of taxable income (or on the basis of book profits wherever all or part of the deferred tax asset to be utilised. Unrecognised

96 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

deferred tax assets are re-assessed at each reporting date and Contingent assets
are recognised to the extent that it has become probable that A contingent asset is a possible asset that arises from
future taxable profits will allow the deferred tax asset to be past events and whose existence will be confirmed only
recovered. by the occurrence or non-occurrence of one or more
Deferred tax assets and liabilities are measured at the tax rates uncertain future events not wholly within the control of
that are expected to apply in the year when the asset is realised the Company.
or the liability is settled, based on tax rates (and tax laws) that Contingent assets are not recognised but are disclosed
have been enacted or substantively enacted at the reporting when the inflow of economic benefits is probable. When
date. inflow is virtually certain, an asset is recognised.
Deferred tax relating to items recognised outside profit or loss
is recognised outside profit or loss. Deferred tax items are 2.16 Segment Reporting
recognised in correlation to the underlying transaction either in Operating segments are defined as components of an enterprise
OCI or directly in equity. for which discrete financial information is available that is
Deferred tax assets and deferred tax liabilities are offset if a evaluated regularly by the chief operating decision maker, in
legally enforceable right exists to set off current tax assets deciding how to allocate resources and assessing performance.
against current tax liabilities and the deferred taxes relate to the Operating Segments are reported in a manner consistent with
same taxable entity and the same taxation authority. the internal reporting provided to the chief operating decision
maker.
Deferred Tax Assets include Minimum Alternative Tax (MAT)
paid in accordance with the tax laws in India, which is likely The Company has identified two operating segments in which it
to give future economic benefits in the form of availability of is primarily engaged i.e. the business of providing construction
set off against future income tax liability. Accordingly, MAT is related activities where risks and returns in all the cases are
recognised as deferred tax assets in the Balance sheet when the similar and income from investment properties (lease rentals).
asset can be measured reliably and it is probable that the future They have been considered as the reportable segments.
economic benefit associated with the asset will be realised. Others segment comprises real estate trading business. None
of the business(es) reported as part of others segment meet
2.15 Provisions and contingencies aggregation criteria or any of the quantitative thresholds for
Provisions: determining reportable segments in the year ended 31st March,
Provisions are recognised when the Company has a present 2020 and for the year ended 31st March, 2019.
obligation (legal or constructive) as a result of a past event, it The Company’s Chief Operating Decision Maker (CODM) is the
is probable that an outflow of resources embodying economic Managing Director who evaluates the Company’s performance
benefits will be required to settle the obligation and a reliable and allocates resources based on analysis of various
estimate can be made of the amount of the obligation. performance indicators.
Provisions are measured at the best estimate of the expenditure Geographical information:
required to settle the present obligation at the Balance Sheet
date. The Company operates only within India having similar: (i)
economic and political conditions, (ii) activities at all project
If the effect of the time value of money is material, provisions locations and (iii) risk associated with the operations. As such
are discounted to reflect its present value using a current pre- the risks and returns at all project locations are similar. Hence,
tax rate that reflects the current market assessments of the time the geographical information considered for disclosure is not
value of money and the risks specific to the obligation. When applicable to the Company.
discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost. 2.17 Related party
Where the Company expects some or all of a provision to be A related party is a person or entity that is related to the
reimbursed, the reimbursement is recognised as a separate reporting entity and it includes:
asset but only when the reimbursement is virtually certain. The (a) A person or a close member of that person’s family if that
expense relating to any provision is presented in the income person:
statement net of any reimbursement.
(i) has control or joint control over the reporting entity;
Contingencies:
(ii) has significant influence over the reporting entity; or
Contingent liabilities
(iii) is a member of the key management personnel of
A contingent liability is: the reporting entity or of a parent of the reporting
• a possible obligation arising from past events, the existence entity.
of which will be confirmed only by the occurrence or non- (b) An entity is related to the reporting entity if any of the
occurrence of one or more uncertain future events not following conditions apply:
wholly within the control of the Company, or
(i) The entity and the reporting entity are members of
• a present obligation that arises from past events but is not the same Group.
recognised because:
(ii) One entity is an associate or joint venture of the
– it is not probable that an outflow of resources other entity.
embodying economic benefits will be required to
(iii) Both entities are joint ventures of the same third
settle the obligation; or
party.
– the amount of the obligation cannot be measured
(iv) One entity is a joint venture of a third entity and the
with sufficient reliability.
other entity is an associate of the third entity.
Contingent liabilities are not recognised but disclosed
(v) The entity has a post-employment benefit plan for
unless the contingency is remote.
the benefit of employees of either the reporting

Annual Report 2019-20 97

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

entity or an entity related to the reporting entity. shareholders. A corresponding amount is recognised directly in
(vi) The entity is controlled or jointly controlled by a equity.
person identified in (a). 2.20 Cash Flow Statement
(vii) A person identified in (a) (i) has significant Statement of Cash Flows is prepared segregating the cash
influence over the entity or is a member of the key flows into operating, investing and financing activities. Cash
management personnel of the entity (or of a parent flow from operating activities is reported using indirect method
of the entity). as set out in Ind AS 7 ‘Statement of Cash Flows’, adjusting the
(viii) The entity, or any member of a Group of which net profit for the effects of:
it is a part, provides key management personnel i. changes during the period in inventories and operating
services to the reporting entity or to the parent of receivables and payables transactions of a non-cash
the reporting entity. nature;
Close members of the family of a person are those family ii. non-cash items such as depreciation, provisions, deferred
members who may be expected to influence, or be taxes, unrealised foreign currency gains and losses, and
influenced by, that person in their dealings with the entity
including: iii. all other items for which the cash effects are investing or
financing cash flows.
(a) that person’s children, spouse or domestic partner,
brother, sister, father and mother; 2.21 Earnings per share
(b) children of that person’s spouse or domestic The Basic Earnings per equity share (‘EPS’) is computed
partner; and by dividing the net profit or loss after tax before other
(c) dependents of that person or that person’s spouse comprehensive income for the year attributable to the equity
or domestic partner. shareholders of the Company by weighted average number of
equity shares outstanding during the year.
Key management personnel are those persons having
authority and responsibility for planning, directing and Diluted earnings per equity share are computed by dividing
controlling the activities of the entity, directly or indirectly, the net profit or loss before OCI attributable to equity holders
including any director (whether executive or otherwise) of of the Company by the weighted average number of equity
that entity. shares considered for deriving basic earnings per equity
share and also the weighted average number of equity shares
Related party transactions and outstanding balances that could have been issued upon conversion of all dilutive
disclosed in the financial statements are in accordance potential equity shares (including options and warrants). The
with the above definition as per Ind AS 24. dilutive potential equity shares are adjusted for the proceeds
2.18 Cash and cash equivalents receivable had the equity shares been actually issued at fair
value. Dilutive potential equity shares are deemed converted
Cash and cash equivalents in the Balance Sheet comprise cash
as of the beginning of the period unless issued at a later date.
at banks &in hand and short-term deposits/investments with
Anti-dilutive effects are ignored.
an original maturity of three months or less from the date of
acquisition, which are subject to an insignificant risk of changes 2.22 Events after Reporting date
in value. These exclude bank balances (including deposits) held Where events occurring after the Balance Sheet date provide
as margin money or security against borrowings, guarantees evidence of conditions that existed at the end of the reporting
etc. being not readily available for use by the Company. period, the impact of such events is adjusted within the financial
For the purpose of the Statement of cash flows, cash and cash statements. Where the events are indicative of conditions that
equivalents consist of cash and short term deposits and exclude arose after the reporting period, the amounts are not adjusted,
items which are not available for general use as on the date of but are disclosed if those non-adjusting events are material.
Balance Sheet, as defined above, net of bank overdrafts which
are repayable on demand where they form an integral part of an 2.23 Corporate Social Responsibility (CSR) expenditure
entity’s cash management. The Company charges its CSR expenditure during the year to
the statement of profit & loss.
2.19 Dividend to equity holders of the Company
The Company recognises a liability to make dividend 2.24 Recent Indian Accounting Standards (Ind AS)
distributions to equity holders of the Company when the Ministry of Corporate Affairs (“MCA”) notifies new standard
distribution is authorised and the distribution is no longer at or amendments to the existing standards. There is no such
the discretion of the Company. As per the corporate laws in notification which would have been applicable from 1st April,
India, a distribution is authorised when it is approved by the 2020.

98 Ahluwalia Contracts (India) Limited

 3 PROPERTY, PLANT & EQUIPMENT
As at 31st March, 2020
(` in Lakhs)
Cost or Deemed Cost Land-Lease- Land-Free- Building Plant & Shuttering Earth Vehicles Commercial Furniture Office Air Condi- Computers Total Property, Capital
hold hold Machinery Material Movers Vehicles & Fixtures Equipments tioners Plant & Work In
Equipment Progress
Balance as at 352.77 24.74 366.70 8,797.39 3,102.34 64.21 558.37 326.13 82.60 135.73 44.14 107.71 13,962.84 30.61
01.04.2018
Additions - - - 839.86 1,377.85 - 150.68 80.66 52.56 59.38 23.42 83.94 2,668.35 43.57
Sales / Adjustments - - - 1.02 - - 78.30 21.59 - - - - 100.92 30.61
Balance as at 352.77 24.74 366.70 9,636.23 4,480.19 64.21 630.75 385.21 135.15 195.11 67.56 191.65 16,530.27 43.57
31.03.2019
Additions 952.73 2,081.32 108.37 192.36 18.70 11.09 64.65 27.91 93.81 3,550.95 20.74
Reclassification on (352.77) (352.77)
account of Ind AS-116
Sales / Adjustments 11.47 0.49 11.96 43.57
Balance as at - 24.74 366.70 10,588.96 6,561.51 172.59 811.64 403.91 146.24 259.27 95.47 285.47 19,716.49 20.74
31.03.2020
Accumulated Land-Lease- Land-Free- Building Plant & Shuttering Earth Vehicles Commercial Furniture Office Air Condi- Computers Total Property, Capital
Depreciation hold hold Machinery Material Movers Vehicles & Fixtures Equipments tioners Plant & Work In
Equipment Progress
Balance as at 10.63 - 11.36 2,469.23 1,327.67 18.08 117.33 174.60 29.30 65.12 18.24 47.63 4,289.20 -
01.04.2018
Depreciation Expenses 5.32 - 6.93 1,218.04 903.36 10.20 103.40 57.89 22.14 34.97 12.19 43.79 2,418.22 -
Deductions / - - - 0.08 - - 75.72 21.59 - - - - 97.39 -
Adjustments
Balance as at 15.95 - 18.29 3,687.20 2,231.03 28.28 145.02 210.90 51.44 100.08 30.43 91.42 6,610.04 -
31.03.2019
Depreciation Expenses 6.93 1,307.69 1,113.77 15.85 102.06 46.54 17.65 37.07 14.20 60.79 2,722.55 -
Reclassification on (15.95) (15.95)
Corporate Overview

account of Ind AS-116

Deductions / 10.95 0.36 11.31
Adjustments
Balance as at - - 25.22 4,994.88 3,344.80 44.13 236.12 257.44 69.09 136.79 44.63 152.21 9,305.32 -
31.03.2020
Net Carrying Value Land-Lease- Land-Free- Building Plant & Shuttering Earth Vehicles Commercial Furniture Office Air Condi- Computers Total Property, Capital
hold hold Machinery Material Movers Vehicles & Fixtures Equipments tioners Plant & Work In
Statutory Reports

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

Equipment Progress
Net carrying Value as 336.82 24.74 348.41 5,949.03 2,249.17 35.93 485.73 174.31 83.71 95.03 37.13 100.24 9,920.24 43.57
on 31.03.2019
Net carrying Value as - 24.74 341.49 5,594.08 3,216.71 128.46 575.52 146.46 77.15 122.47 50.84 133.26 10,411.17 20.74
on 31.03.2020
NOTE :- i) Land-Leasehold includes ` Nil (previous year `13.60 Lakhs) pending registration in the name of the company.

Annual Report 2019-20

ii) Building includes `345.60 Lakhs (previous year `345.60 Lakhs) pending registration in the name of the company.
Financial Statements

iii) CWIP represents Plant & machinery in transit `20.74 Lakhs (previous year `43.57 Lakhs)

99
iv) Refer note No. 23 & 27 for hypothecation/ pledge of assets.
Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

4 RIGHT OF USE ASSETS

(` in Lakhs)
LANDS
Gross Carrying Value as at 01.04.2018 -
Additions -
Disposals -
Gross Carrying Value as at 31.03.2019 -
Reclassification on account of Ind AS-116 as on 01.04.2019 336.82
Additions -
Disposals -
Gross Carrying Value as at 31.03.2020 336.82
LANDS
Depreciation (Accumulated depreciation)
Balance as at 01.04.2018 -
Charge for the year -
Disposals -
Balance as at 31.03.2019 -
Charge for the year 5.32
Disposals -
Balance as at 31.03.2020 5.32
LANDS
Net carrying Value as on 31.03.2019 -
Net carrying Value as on 31.03.2020 331.50
NOTE: (i) Right of Use Assets include `13.60 Lakhs (previous year ` Nil) pending registration in the name of the company.
(ii) Also refer note No. 45 of leases.

5 INVESTMENT PROPERTIES
(` in Lakhs)
RIGHT OF USE ASSETS
(BUILDING)
Cost or Deemed Cost
Balance as at 01.04.2018 9,203.13
Additions 223.82
Disposals -
Balance as at 31.03.2019 9,426.95
Impact an account of adoption of Ind AS-116 as on 01.04.2019 2,992.77
Additions 68.17
Disposals -
Balance as at 31.03.2020 12,487.89
RIGHT OF USE ASSETS
(BUILDING)
Depreciation (Accumulated depreciation)
Balance as at 01.04.2018 514.26
Charge for the year 310.22
Disposals -
Balance as at 31.03.2019 824.48
Charge for the year 426.89
Disposals -
Balance as at 31.03.2020 1,251.37
RIGHT OF USE ASSETS
(BUILDING)
Net carrying Value as on 31.03.2019 8,602.47
Net carrying Value as on 31.03.2020 11,236.52

100 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

(i) Pursuant to an Agreement to Develop / License agreement with Rajasthan State Road Transport Corporation (RSRTC) the Company has
developed a building (being Bus Terminal and Depot and Commercial Complex at Kota) on the land belonging to RSRTC. The license fee
payable to RSRTC are as follows :
Details of area/space to be used for shops/stalls or other License fee upto License fee after 36 License fee after 30 years for
occupants 36 months months upto the license a further period of 10 years
period of 30 years
For the space area 15 Sqm or more area `10/- per Sqm `50/- per Sqm per month License fee effective as on
per month with 10% cumulative Completion of 30 years and
increase every year. others terms & conditions will
remain unchanged.
For space less than 15 Sqm `150/- per `750/- per month in License fee effective as on
month in each each case with 10% completion of 30 years and
case. cumulative increase every others terms & conditions will
year. remain unchanged.
The expenditure (construction cost) incurred has been shown above under the main head “Investment Property” and sub-head "Right of Use
Assets (Building)”. The Company has a right to Lease Right of Use Asset (Commercial Complex). The primary lease period of Commercial
complex is 30 years which can be extended for a further period of 10 years at the option of the Company from the date of completion of the
project. Thereafter, the Commercial Complex will be handed over to RSRTC. The Company does not have any right to sell the building but
only to sub-lease. The Company has no further contractual obligations to purchase, construct or develop the said investment property.
There is a contractual obligation on the Company to maintain the commercial complex. The actual maintenance charges will be recovered
from the occupants of the commercial complex. Revenue from advertisement, outside the building shall be shared between RSRTC & the
Company in 50:50 ratio.
(ii) Information regarding income and expenditure of investment properties
(` in Lakhs)
Year Ending Year Ending
31.03.2020 31.03.2019
Rental Income 617.94 448.77
Less: direct operating expenses(including repairs and maintenance) that did not generate 418.62 559.02
rental income
Less: direct operating expenses(including repairs and maintenance) that generated rental 404.75 418.45
income
Profit/(loss) from investment properties before depreciation (205.42) (528.70)
Less: depreciation expense 426.89 310.22
Profit/ (loss) from investment properties after depreciation (632.31) (838.92)
(iii) Fair Value:
(` in Lakhs)
31.03.2020 31.03.2019
Right of Use Assets 11,571.77 11,265.47
Fair value hierarchy and valuation technique
The fair value of investment property, being Building at Kota, has been determined by external, accredited independent registered valuer
having appropriate recognized professional qualification and recent experience in the location and category of the property being valued.
Fair value has been arrived at by using discounted cash flow method. The fair value measurement has been categorised as Level 3.
(iv) Also refer note No. 45 of leases.

Annual Report 2019-20 101

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

6 OTHER INTANGIBLE ASSETS

(` in Lakhs)
COST OR DEEMED COST COMPUTER SOFTWARE
Balance as at 01.04.2018 123.69
Additions 45.12
Sales / Adjustments -
Balance as at 31.03.2019 168.81
Additions 35.32
Sales / Adjustments -
Balance as at 31.03.2020 204.13
ACCUMULATED DEPRECIATION COMPUTER SOFTWARE
Balance as at 01.04.2018 45.51
Depreciation Expenses 27.35
Deductions / Adjustments -
Balance as at 31.03.2019 72.86
Depreciation Expenses 32.39
Deductions / Adjustments -
Balance as at 31.03.2020 105.25
NET CARRYING VALUE COMPUTER SOFTWARE
Net carrying Value as on 31.03.2019 95.95
Net carrying Value as on 31.03.2020 98.88

7 NON-CURRENT INVESTMENT
(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
INVESTMENTS IN EQUITY INSTRUMENTS
Unquoted
In Subsidiaries (fully paid up) (at cost /deemed cost)
(1) 8,87,500 (Previous Year 8,87,500) Equity shares of `10/- each 116.35 116.35
M/s. Premsagar Merchants Pvt. Ltd. (wholly owned subsidiary)
(2) 9,95,000 (Previous Year 9,95,000) Equity shares of `10/- each 127.10 127.10
M/s. Paramount Dealcomm Pvt. Ltd. (wholly owned subsidiary)
(3) 10,00,000 (Previous Year 10,00,000) Equity shares of `10/- each 127.60 127.60
M/s. Splendor Distributors Pvt. Ltd. (wholly owned subsidiary)
(4) 10,32,500 (Previous Year 10,32,500) Equity shares of `10/- each 130.85 130.85
M/s. Dipesh Mining Pvt. Ltd. (wholly owned subsidiary)
(5) 9,85,000 (Previous Year 9,85,000) Equity shares of `10/- each 126.10 126.10
M/s. Jiwanjyoti Traders Pvt. Ltd. (wholly owned subsidiary)
Total investment in Subsidiary companies 628.00 628.00
Less: Impairment in the value of investments - -
Total 628.00 628.00
Aggregate amount of Quoted Investments - -
Aggregate amount of Unquoted Investments 628.00 628.00
Aggregate market value of Quoted Investments - -
Aggregate amount of impairment in value of Investments - -
Investments carried at fair value through Profit & Loss - -
Investments carried at fair value through Other Compreshensive Income - -
Investments carried at Amortised Cost 628.00 628.00

102 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

8 NON-CURRENT FINANCIAL ASSETS - LOANS

(Unsecured, considered good unless otherwise stated)

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Security Deposits 686.55 672.47
Employee Loans and Advances 0.50 2.97
Loan receivables which have significant increase in credit risk - -
Loan receivables - credit impaired - -
Total 687.05 675.44

9 TRADE RECEIVABLES (NON CURRENT)

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Trade receivables considered good - unsecured 10,392.18 7,717.50
Trade receivables which have significant increase in credit risk - -
Trade receivables - credit credit impaired 608.14 610.79
Total Trade Receivables 11,000.32 8,328.29
Less: Allowances for expected credit loss (608.14) (610.79)
10,392.18 7,717.50
(i) Refer Note 49 for details pertaining to ECL
(ii) No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other person. Nor any
trade or other receivables are due from firms or private companies in which any director is a partner, a director or a member.
(iii) Trade receivables have been hypothecated/pledged as security for borrowings/ working capital facilities, refer note 27 for details.

10 OTHER NON-CURRENT FINANCIAL ASSETS

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Unsecured, considered good:
Non-current deposits with banks (Refer note 17) 2,148.06 1,017.32
Interest accrued but not due on non-current bank deposits 106.62 74.59
Earnest Money Deposit 44.30 44.30
Other advances 165.43 165.43
Sub-total (A) 2,464.41 1,301.64
Unsecured, considered doubtful:
Advance others 27.51 27.51
Less: Provision for doubtful advances (27.51) (27.51)
Sub-total (B) - -
Total 2,464.41 1,301.64

Annual Report 2019-20 103

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

11 INCOME TAX AND DEFERRED TAX

A. COMPONENTS OF INCOME TAX EXPENSE
I. Tax Expense recognized to Statement of Profit and Loss:

(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
a. Current tax
Current Year Income Tax Expense 2,885.57 6,480.42
Adjustments/(credits) related to previous years - Value Added Tax - 529.24
Adjustments/(credits) related to previous years - Others(net) (23.31) (85.19)
Total (a) 2,862.26 6,924.47
a. Deferred Tax Charge / (Credit)
Relating to origination and reversal of temporary differences 353.12 (186.05)
Adjustments/(credits) related to previous years - Value Added Tax - (529.24)
Total (b) 353.12 (715.29)
Income tax expense reported in the Statement of Profit and Loss (a+b) 3,215.38 6,209.18

II. Tax on Other Comprehensive Income:

(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
Deferred Tax Charge / (Credit)
(Gain)/loss on remeasurement of net defined benefit plans 0.59 (98.36)
Income tax expense reported in Other Comprehensive Income 0.59 (98.36)

B. RECONCILIATION OF TAX EXPENSE AND THE ACCOUNTING PROFIT MULTIPLIED BY INDIA’S DOMESTIC TAX RATE
(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
Accounting profit before income tax 9,658.97 17,947.11
Enacted tax rate (%) 25.168% 34.944%
Tax on accounting profit at above rate 2,430.97 6,271.44
Adjustments in respect of current income tax of previous years (23.31) (85.19)
Non-deductible/(deductible) expenses for tax purposes 807.73 22.93
- CSR expenditure 17.13 3.87
- Depreciation on leasehold land 1.34 1.86
- Interest on Income tax provision 1.19 16.74
- Donation 1.59 0.84
- Effect of deferred tax balances due to the changes in Income tax rate from 34.944% to 792.49 -
25.168% *
- Other Adjustments 1.98 -
- Deductible expenses for donation paid (7.99) (0.38)
Income tax expense reported in the Statement of Profit and Loss 3,215.38 6,209.18
* The Company elected the option of lower tax rates allowed under section 115BAA of the Income Tax Act,1961 as introduced by the Taxation
Laws (Amendment) Ordinance 2019. Accordingly the re-measurement of accumulated deferred tax asset has resulted one-time additional charge of
`792.49 Lakhs which has been recognized in the statement of Profit and Loss in the financial year 2019-2020.

104 Ahluwalia Contracts (India) Limited

 C. MOVEMENT IN DEFERRED TAX ASSETS AND LIABILITIES
(` in Lakhs)
Particulars As at Charge/ Charge/(Credit) As at Effect of Ind Charge/ Charge/(Credit) As at
01.04.2018 (Credit) in the in Other 31.03.2019 AS 116 as on (Credit) in the in Other 31.03.2020
Statement of Comprehensive 01.04.2019 Statement of Comprehensive
Profit and Loss Income Profit and Loss Income
Deferred tax liabilities
On Security Deposit 0.83 0.27 1.09 (0.49) 0.60
On Unbilled Revenue 152.39 6.10 158.49 (44.34) 114.15
Total deferred tax liabilities 153.21 6.37 - 159.58 - (44.83) - 114.75
Deferred tax assets
On property, plant and equipment including Right of Use 618.27 (83.37) - 534.90 (1,045.79) 172.71 (338.18)
On provision for doubtful debts and advances 400.12 43.54 - 443.65 (124.12) 319.54
On provision for compensated absences (Bonus) 301.07 59.63 - 360.70 (7.82) 352.88
On Gratuity and other employee benefits 186.85 (35.82) 98.36 249.39 (15.52) (0.59) 233.28
On Interest payable on VAT demand 305.64 - - 305.64 (85.51) - 220.13
On VAT demand - 529.24 - 529.24 (148.06) - 381.18
On discounting of Reliance Project (Ind AS) - - - - 189.11 - 189.11
On CCTV Project Warranty - - - - 15.10 - 15.10
On license fees of Kota Project 360.34 208.44 - 568.78 (568.78) - - -
On lease liabilities as per Ind AS 116 - - - - 1,493.33 (393.85) - 1,099.48
Total deferred tax assets 2,172.29 721.65 98.36 2,992.30 (121.24) (397.95) (0.59) 2,472.52
Deferred tax assets (Net) 2,019.07 715.29 98.36 2,832.72 (121.24) (353.12) (0.59) 2,357.77
Corporate Overview
Statutory Reports

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

Annual Report 2019-20

Financial Statements

105
Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

12 NON-CURRENT TAX ASSETS

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Advance Income tax /TDS (net of provisions) 2,015.55 175.19
Total 2,015.55 175.19

13 OTHER NON-CURRENT ASSETS

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Contract Assets
Due on performance of future obligations
Retention money 6,014.25 3,043.27
Retention money - credit impaired 260.07 214.86
Less: Allowances for expected credit loss (260.07) (214.86)
Sub-total (A) 6,014.25 3,043.27
Unsecured, considered good:
Prepaid Expenses 573.56 291.88
Others 213.82 158.49
Sub-total (B) 787.38 450.37
Unsecured, considered doubtful:
Capital Advance 50.00 50.00
Less: Provision for doubtful advance (50.00) (50.00)
Sub-total (C) - -
Total 6,801.63 3,493.64
(i) Refer Note 49 for details pertaining to ECL
(ii) Retention money have been hypothecated/ pledged as security for borrowings/ working capital facilities, refer note 27 for details.

14 INVENTORIES (AT LOWER OF COST OR NET REALIZABLE VALUE)

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Raw Material (includes in transit `608.70 Lakhs Previous Year `1,194.53 Lakhs) 16,751.78 9,738.76
Inventory Properties (refer note (ii) below) 5,566.81 5,284.95
Less:Loss in value (252.74) (235.20)
Sub-total 5,314.08 5,049.75
Scrap 14.25 22.59
Total 22,080.11 14,811.10
(i) Inventories have been hypothecated/ pledged as security for borrowings, refer note 27 for details.
(ii) Inventory Properties :
Represents Properties/Flats (including under construction) acquired for sale in the ordinary course of business. Refer note 2.12 (b) of
Accounting Policies.
(a) Comprises (` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Opening Stock 5,284.95 5,499.55
Purchases (Payment to contractors/ builders) 835.41 2,381.53
Irrecoverable amount writen off / Loss in value 252.74 235.20
Cost of sales of Inventory property 553.55 2,596.13
Closing Stock 5,314.08 5,049.75
(b) Comprises flats (` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Registered in the name of the Company 3,164.79 2,258.40
Pending registration in the name of the Company 2,149.28 2,564.36
Under construction - 227.00
Total 5,314.08 5,049.75

106 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

15 TRADE RECEIVABLES (CURRENT)

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Trade receivables considered good - unsecured 49,334.28 51,781.75
Trade receivables which have significant increase in credit risk - -
Trade receivables - credit impaired 291.89 252.45
Total Trade Receivables 49,626.17 52,034.20
Less: Allowances for expected credit loss (291.89) (252.45)
49,334.28 51,781.75
(i) Refer Note 49 for details pertaining to ECL
(ii) Trade Receivables have been hypothecated/pledged as security for borrowings, refer note 27 for details.

16 CASH AND CASH EQUIVALENTS

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Cash-on-hand 63.19 48.25
Deposits with original maturity of less than 3 months 670.68 -
Balance with banks
- In current accounts 15,764.81 13,709.94
Total 16,498.68 13,758.19

17 BANK BALANCES OTHER THAN CASH & CASH EQUIVALENTS MENTIONED ABOVE
(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Balance with banks (A)
- In unpaid dividend account (i) 0.32 0.17
Bank Deposits (B)
Deposits with remaining maturity for less than 12 months 7,886.21 7,156.71
Deposits with remaining maturity for more than 12 months 2,148.06 1,017.32
10,034.27 8,174.03
Less : Amount disclosed under non current financial assets (Refer note 10) 2,148.06 1,017.32
Sub-total (B) 7,886.21 7,156.71
Total (A+B) 7,886.53 7,156.88
(i) These balances are not available for use by the Company as they represent corresponding unpaid dividend liabilities.
(ii) Deposits of `9,909.27 Lakhs (Previous year `5,637.24 Lakhs) are pledged with banks as margin for bank guarantees, letters of credit &
working capital loan, deposited with the court for legal case against the company and against earnest money with Clients.

18 CURRENT FINANCIAL ASSETS - LOANS

(Unsecured, considered good unless otherwise stated)

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Employee Loans and Advances* 113.78 53.07
Loan receivables which have significant increase in credit risk - -
Loan receivables - credit impaired - -
Total 113.78 53.07
* Includes `0.95 Lakhs (previous year `1.70 Lakhs) due from related party (refer note 46).

Annual Report 2019-20 107

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

19 OTHER CURRENT FINANCIAL ASSETS

(Unsecured, considered good unless otherwise stated)

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Earnest Money Deposit 674.58 1,365.84
Interest receivable on bank deposits 241.06 263.93
Other Receivables 205.26 137.63
Total 1,120.90 1,767.40

20 OTHER CURRENT ASSETS

(Unsecured, considered good unless otherwise stated)

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Contract Assets
Unbilled Revenue * 12,035.62 7,872.37
Due on performance of future obligations -
Retention money 11,433.30 13,118.65
Retention money - credit impaired 32.01 114.00
Less: Allowances for expected credit loss (32.01) (114.00)
Sub-total 23,468.92 20,991.02
Advance to Suppliers & Petty Contractors 1,500.45 703.47
Prepaid Expenses 768.15 621.16
Balance with Government Authority 5,781.29 1,496.99
Others 2.24 5.50
Total 31,521.05 23,818.14
* Classified as non financial asset as the contractual right to consideration is dependent on completion of contractual milestones.
(i) Refer Note 49 for details pertaining to ECL
(ii) Retention money have been hypothecated/ pledged as security for borrowings/ working capital facilities, refer note 27 for details.

21 EQUITY SHARE CAPITAL

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Authorised Capital
10,00,00,000, Equity Share of `2/- each 2,000.00 2,000.00
(Previous Year 10,00,00,000 Equity Share of `2/- each)
Issued, Subscribed & Paidup
6,69,87,560 Equity Shares of `2/- each fully paid up 1,339.75 1,339.75
(Previous Year 6,69,87,560 Equity Shares of `2/- each fully paid up)
Total 1,339.75 1,339.75

(ii) Reconciliation of the number of Equity shares outstanding at the beginning and at the end of the reporting period

Particulars As at 31.03.2020 As at 31.03.2019

No. of Shares ` in Lakhs No. of Shares ` in Lakhs
At the beginning of the period 66987560 1,339.75 66987560 1,339.75
Add : Shares issued during the year - - - -
Outstanding at the end of the year 66987560 1,339.75 66987560 1,339.75

108 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

(ii) Terms / Rights attached to equity shares

The Company has only one class of equity share having a par value of `2/- per share. Each equity shareholder is entitled for one vote per share.
The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors of the Company is subject to the
approval of the Members/Shareholders of the Company in the ensuing Annual General Meeting.
As per records of the Company, including its register of Shareholders/Members and other declarations received from shareholders regarding
beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after
distribution of all preferential amounts. This distribution will be in proportion to the number of equity shares held by the shareholder.

(iii) Details of shareholders holding more than 5% shares in the Company

Particulars As at 31.03.2020 As at 31.03.2019

No. of %age No. of %age
Shares of Holdings Shares of Holdings
Equity shares of ₹ 2/- each fully paid up
Mr. Bikramjit Ahluwalia Promoter 7994257 11.93 7961198 11.88
Mrs. Sudershan Walia Promoter 22252380 33.22 22252380 33.22
DSP Equity & Bond Fund Mutual Fund 6343273 9.47 6284417 9.38
Mr. Shobhit Uppal Promoter 4308000 6.43 4308000 6.43
Nalanda India Equity Fund Limited Body Corporate 3870102 5.78 3870102 5.78
As per records of the Company including its register of shareholders/ members, the above share holding represents both legal and beneficial
ownership of shares.
(iv) Distribution made and proposed
(` in Lakhs)
Particulars For 31.03.2020 For 31.03.2019
Cash dividend on equity shares declared and paid:
Final dividend for the year ended on 31st March, 2019 @ `0.30 per share of face value of `2 200.96 200.96
each [31st March, 2018 : @ `0.30 per share of face value of `2 each]
Dividend Distribution Tax (DDT) on final dividend 41.31 41.31

(` in Lakhs)
Particulars For 31.03.2020 For 31.03.2019
Proposed dividend on equity shares:
Final dividend for the year ended on 31st March, 2020 NIL [31st March, 2019 @ `0.30 per - 200.96
share of face value of `2 each]
Dividend Distribution Tax (DDT) on proposed dividend - 41.31
Proposed dividend on equity shares is subject to approval at the annual general meeting and is not recognised as a liability (including DDT thereon)
as at balance sheet date.

(v) Shares held by holding company or its subsidiaries/their associates Nil Nil

22 OTHER EQUITY
(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Reserve and Surplus :
Securities Premium 5,061.00 5,061.00
General Reserve 3,272.97 3,272.97
Retained Earnings 70,949.27 64,385.71
Less :- Cash Dividend (Final) (Refer note 21 (iv)) (200.96) (200.96)
Less :- Dividend Distribution Tax (41.31) (41.31)
Total reserve and surplus 79,040.97 72,477.41
Other Comprehensive Income :
Equity Instruments through Other Comprehensive Income (net of tax) 22.35 22.35
Total Other Comprehensive Income 22.35 22.35
Total 79,063.32 72,499.76

Annual Report 2019-20 109

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

Nature and purpose of reserves

(i) Securities Premium
The amount received in excess of face value of the equity shares is recognised in Securities Premium. This can be utilized in accordance with
the provisions of the Companies Act, 2013.
(ii) General Reserve
This Reserve is created by an appropriation from one component of equity (generally retained earnings) to another, not being an item of Other
Comprehensive Income. The same can be utilized by the Company in accordance with the provisions of the Companies Act, 2013.
(iii) Retained Earnings
Retained earnings are the profits that the Company has earned till date, less any transfer to General Reserve, dividends or other distributions
paid to the shareholders.

23 NON CURRENT BORROWINGS

(` in Lakhs)
Particulars AS AT 31.03.2020 AS AT 31.03.2019
Term Loans
From Banks 69.37 79.76
Less : Current maturity (Refer note 29) 26.01 43.36 17.44 62.32
Vehicle Loans
From Banks 18.13 7.42
Less : Current maturity (Refer note 29) 6.90 11.23 6.82 0.60
Total 54.59 62.92
As at 31st March, 2020 - Security details
(i) Term Loan outstanding from HDFC Bank of `51.16 Lakhs against Machinery is secured by way of hypothecation of specified Machinery/
Equipment. The term loan bear interest rate 8.40%. The same is repayable in 59 monthly installments that commenced from 01.05.2018.
(ii) Term Loan outstanding from HDFC Bank of `11.16 Lakhs against Machinery is secured by way of hypothecation of specified Machinery/
Equipment. The term loan bear interest rate 8.40%. The same is repayable in 59 monthly installments that commenced from 05.06.2018.
(iii) Term Loan outstanding from HDFC Bank of `3.31 Lakhs against Machinery is secured by way of hypothecation of specified Machinery/
Equipment. The term loan bear interest rate 9.51%. The same is repayable in 12 monthly installments that commenced from 01.06.2019.
(iv) Term Loan outstanding from HDFC Bank of `3.73 Lakhs against Machinery is secured by way of hypothecation of specified Machinery/
Equipment. The term loan bear interest rate 9.51%. The same is repayable in 12 monthly installments that commenced from 01.06.2019.
(v) Vehicle Loan outstanding from HDFC Bank of `0.60 Lakhs is secured by way of hypothecation of specified vehicle. The term loan bear interest
rate 8.40%. The same is repayable in 36 monthly installments that commenced from 07.05.2017.
(vi) Vehicle loan outstanding from HDFC Bank of `17.53 Lakhs against Bus is secured by hypothecation of specified vehicle. The term loan bear
interest rate is 9.00%. The same is repayable in 36 monthly installments that commenced 05.11.2019.

As at 31st March, 2019 - Security details

(i) Term Loan outstanding from HDFC Bank of `65.55 Lakhs against Machinery is secured by way of hypothecation of specified Machinery/
Equipment. The term loan bear interest rate 8.40%. The same is repayable in 59 monthly installments that commenced from 01.05.2018.
(ii) Term Loan outstanding from HDFC Bank of `14.20 Lakhs against Machinery is secured by way of hypothecation of specified Machinery/
Equipment. The term loan bear interest rate 8.40%. The same is repayable in 59 monthly installments that commenced from 05.06.2018.
(iii) Vehicle Loan outstanding from HDFC Bank of `7.42 Lakhs is secured by way of hypothecation of specified vehicle. The term loan bear interest
rate 8.40%. The same is repayable in 36 monthly installments that commenced from 07.05.2017.

24 OTHER NON-CURRENT FINANCIAL LIABILITIES

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Security deposits (Lease rent) 312.01 284.20
Lease License equalization - 1,506.37
Total 312.01 1,790.57

25 NON CURRENT PROVISIONS

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Provision for Gratuity (Refer note 43) 649.28 469.41
Total 649.28 469.41

110 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

26 OTHER NON-CURRENT LIABILITIES

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Contract Liability-
Mobilisation Advance 6,795.56 4,455.53
Deferred revenue - rental 5.71 18.26
Total 6,801.27 4,473.79

27 CURRENT BORROWINGS
(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Secured
Working Capital Loan from Banks 2,400.28 3,026.66
Unsecured
From related party (Refer note 46) 2,250.00 2,997.13
Total 4,650.28 6,023.79
Working Capital loans From various banks are secured by way of
- First pari-passu charge on all existing and future current assets of the company.
- Pari-passu charge on current assets / fixed assets to IDFC Bank Limited so as to provide 1.0x cover.
- Equitable mortgage of properties situated as B-21, Geetanjali Enclave, New Delhi owned by promoter director with Yes Bank Limited.
- Pledge of 1,02,71,380 No. of equity shares to Punjab & Sind bank, 20,00,000 equity shares to Bank of Maharashtra, 22,99,000 equity shares
with Yes Bank Limited, 7,55,000 equity shares with RBL Bank Limited and 5,40,000 equity shares with IDFC Bank Limited by promoter directors
and their relatives.
- Personal Guarantees of directors (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit Uppal (iii) Mr. Vikas Ahluwalia, and relative of the directors (iv) Mrs.
Sudershan Walia.
- The working capital loan from Banks bear floating interest rate ranging from MCLR plus 0.75% to 2.90%.
- Loan against FDR from HDFC Bank amounting to `800 Lakhs carrying interest rate @ 8%.
- Unsecured loan is interest free and payable on demand.

28 TRADE PAYABLES
(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Total outstanding dues of Micro Enterprises and Small Enterprises (Refer note 42) 499.94 436.67
Total outstanding dues of creditors other than Micro Enterprises and Small Enterprises 51,809.79 42,415.82
Total 52,309.73 42,852.49

29 OTHER CURRENT FINANCIAL LIABILITIES

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Current maturities of term loan from banks (Refer note 23) 26.01 17.44
Current maturities of vehicle loan from banks (Refer note 23) 6.90 6.82
Interest accrued on borrowings 0.58 0.67
Unpaid Dividend * 0.32 0.17
Lease License equalization - 112.94
Others
Interest payable on tax demands 894.77 894.66
Other payables to related parties(Refer note 46) 258.18 305.05
Other payables 3,083.33 2,349.56
Total 4,270.09 3,687.31
* To be transferred to Investor Education and Protection Fund as and when due.

Annual Report 2019-20 111

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

30 OTHER CURRENT LIABILITIES

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Contract Liabilities
(i) Mobilisation Advance 13,918.71 10,097.05
(ii) Advance Against Material at Site 5,462.94 3,197.53
Sub-total 19,381.65 13,294.58
Advance from customers 58.80 -
Dues to Statutory Authorities 2,448.25 1,872.53
Deferred revenue - rental 15.57 21.72
Total 21,904.27 15,188.83

31 CURRENT PROVISIONS
(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
For Gratuity (Refer note 43) 277.60 244.28
Total 277.60 244.28

32 REVENUE FROM OPERATIONS

(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
Construction Contract Revenue (A) 1,86,867.01 1,72,288.12
Other Operating Revenue (B)
Lease Rental Income [refer note 45(c)] 617.94 448.77
Sale of Scrap 547.75 707.44
Sale of Inventory Properties (Flats) 459.99 2,027.11
Total (B) 1,625.68 3,183.32
Total (A+B) 1,88,492.69 1,75,471.44

33 OTHER INCOME
(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
Interest Income on
Financial assets held at amortised cost
- Fixed deposits with banks (Tax deducted at source `80.00 Lakhs Previous Year `52.40 Lakhs) 805.76 537.98
- Others 180.80 251.29
Other non operating income
Rent - 3.94
Liabilities written back 51.57 166.71
Gain on sale of property, plant & equipment [Net of loss of `0.13 Lakhs (Previous Year `0.25 6.17 17.37
Lakhs)]
Total 1,044.30 977.29

34 COST OF MATERIAL CONSUMED

(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
Inventories at the beginning of the year 8,544.22 5,474.56
Add : Purchases 97,512.97 80,539.38
Less : Inventories at the end of the year 16,143.08 8,544.22
Cost of material consumed 89,914.11 77,469.72
Cost of sale of inventory property (Refer note 14) 553.55 2,596.13
Total 90,467.66 80,065.85

112 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

35 CONSTRUCTION EXPENSES
(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Sub-Contracts 50,363.68 47,017.55
Professional Charges 1,018.71 826.61
Power & Fuel 3,102.52 3,125.13
Machinery & Shuttering Hire Charges 2,351.00 1,584.76
Machinery Repair & Maintenance 1,151.04 857.76
Commercial Vehicle Running & Maintenance 51.34 47.89
Testing Expenses 245.76 107.30
Insurance Expenses 345.62 332.58
Watch & Ward Expenses 1,129.16 1,010.52
Site Maintenance Expenses 150.05 26.48
Total 59,908.88 54,936.58

36 EMPLOYEE BENEFIT EXPENSES

(` in Lakhs)
Particulars AS AT 31.03.2020 AS AT 31.03.2019
Staff Cost
Salaries and other benefits (Including Directors Remuneration 10,662.33 9,291.84
`392.10 Lakhs Previous Year `417.19 Lakhs)
Employees Welfare 451.33 461.48
Employer's Contribution to Provident and Other Funds 463.08 323.21
Gratuity Expenses (Refer note 43) 235.33 11,812.07 208.08 10,284.61
Labour Cost
Labour Wages & other benefits 2,338.86 2,495.94
Contribution to Provident & Other Funds 179.33 226.60
Labour Welfare 1,101.58 3,619.77 1,320.92 4,043.46
Total 15,431.84 14,328.07

37 FINANCE COSTS
(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
i. On Financial liabilities measured at amortised cost:
- on Term Loans 8.02 7.17
- on Working Capital & Others 308.25 416.17
- on Mobilisation Advance 1,526.65 535.59
ii. Interest on lease liability 392.43 -
iii. On Unwinding of discount resulting in increase in financial liabilities (Security deposit) 23.43 19.98
iv. On net defined benefit liability 52.81 39.03
v. On Income Tax 4.74 47.92
vi. Interest on Tax demand (Indirect tax) - 14.07
b. Other borrowing costs:
i. Upfront/Processing fee 128.51 117.16
ii. Bank Charges and guarantee commission 1,054.93 725.31
Total 3,499.77 1,922.40

38 DEPRECIATION AND AMORTISATION EXPENSES

(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
Depreciation on Property, Plant & Equipment 2,722.55 2,418.22
Depreciation on Investment Property 426.89 310.22
Depreciation on Right of Use Assets 5.32 -
Amortisation of Intangible Assets 32.39 27.35
Total 3,187.15 2,755.79

Annual Report 2019-20 113

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

39 OTHER EXPENSES
(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
Electricity & Water Charges 66.10 53.64
Rent 588.79 427.73
Travelling & Conveyance Expenses 374.31 321.89
Professional Charges 817.92 650.75
Repairs & Maintenance :
Building 1.30 13.26
Others 314.40 221.12
Vehicle Running & Maintenance 259.73 212.21
Postage, Telegram and Telephone Expenses 67.07 61.29
Printing and Stationery 153.05 144.99
Advertisement 54.30 25.77
Business Promotion 64.11 28.35
Charity & Donation (other than political parties) 6.32 2.41
Insurance Charges 53.32 47.35
Watch & Ward Expenses 57.53 48.64
Rates & Taxes 64.94 46.31
Workman Compensation 7.00 4.10
Exchange Fluctuation (Net) 18.13 28.31
Auditor's Remuneration (refer note 44) 34.25 26.36
Bad Debts Written off 4,214.16 979.95
Provision for doubtful debts - 124.59
License fee RSRTC - 643.74
CSR Expenditure (refer note 51) 68.07 11.07
Irrecoverable amount writen off / Loss in value 17.54 235.20
Directors Sitting Fees 8.00 12.60
Miscellaneous Expenses 72.38 121.30
Total 7,382.72 4,492.93

40 Contingent liabilities and commitments (to the extent not provided for)
(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
i) Contingent liabilities
a) Claims against the company not Acknowledged as debts
(i) Value Added Tax liability 987.29 1,092.17
(ii) Excise duty demand 665.75 474.01
(iii) Service tax demand on alleged :-
- Wrong availment of abatement on account of free supply of material by the Client 598.98 598.98
- Composition scheme 1,193.76 1,193.76
- Exempted projects 2,076.70 2,076.70
- Others 1,013.09 1,269.37
(iv) Provident fund demand 5,457.34 5,457.34
(v) Demand of stamp duty on Real Estate Project 57.42 57.42
(vi) Other Claims not Acknowledged as debts against the company 3,604.33 3,594.99
b) Guarantees
Guarantees given by the bankers on behalf of the company :-
Performance 53,276.89 42,806.68
Other 56,289.49 45,605.10
Indemnity Bonds/Performance Bonds/ Surety Bonds / Corporate guarantees given to 2,172.72 2,199.80
clients
c) Other money for which the company is contingently liable - -

114 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

The Company does not expect any reimbursement in respect of the above contingent liabilities and it is not practicable to estimate the timings
of the cash outflows, if any. In respect of the matters above resolution of the arbitration/ appellate proceedings are pending and it is not
probable that an outflow of resources will be required to settle the above obligations/claims.
Based on discussions with the advocates & consultants, the Company believes that there are fair chance of decisions in its favour in respect
of all items listed in (a)(i) to (a)(vi) above. The replies/appeals have been filed before appropriate authorities/Courts. Disposal is awaited. The
Company does not expect any outflow of economic resources in respect of the above and therefore no provision is made in respect thereof.
ii) There are numerous interpretative issues relating to the Supreme Court Judgement on Provident Fund (PF) dated 28th February, 2019. As a
matter of caution, the Company recognise liability on a prospective basis effective from April 2019. The Company will update its provision,
on receiving further clarity on the subject.
iii) Commitments
(` in Lakhs)
Particulars As at 31st As at 31st
March, 2020 March, 2019
Estimated amount of contracts remaining to be executed on capital account and not 0.71 424.91
provided for
Estimated amount of contracts remaining to be executed on other than capital account 2,107.42 239.78
and not provided for

41 ‘Non-current trade receivables’ and retention money include `7,910.72 Lakhs (31 March 2019: `8,829.49 Lakhs) outstanding as at 31
March 2020 based on the terms and conditions implicit in the contracts and other receivables in respect of closed/suspended projects.
These claims are mainly in respect of cost over-run arising due to additional work, caused delays, suspension of projects, deviation in design
and change in scope of work and other aspects; for which Company is at various stages of negotiation/discussion with the clients or under
arbitration. In certain cases customers have lodged counter claims against the Company. Considering the contractual tenability, progress of
negotiation/ discussion with the client, the management is confident of recovery of these receivables.

42 The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small
Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on the information available with the Company, the balance due
to Micro Small Enterprises as defined under the MSMED Act, 2006 is as under:
(` in Lakhs)
Details of dues to Micro Small & As at 31st As at 31st
Medium Enterprises Development (MSMED) Act, 2006 March, 2020 March, 2019
i) The principal amount & the interest due thereon remaining unpaid at the end of the
year :
Principal Amount 499.94 436.67
Interest Due thereon 44.72 6.42
ii) Payments made to suppliers beyond the appointed day during the year :
Principal Amount 88.76 829.47
Interest Due thereon 1.19 19.80
iii) The amount of interest due and payable for the period of delay in making payment - -
(which have been paid but beyond the appointed day during the year) but without
adding the interest specified under Micro Small and Medium Enterprise Development
Act, 2006
The amount of interest accrued and remaining unpaid at the end of the year; and 45.90 26.22
The amount of 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
enterprise for the purpose of disallowance as a deductible expenditure under section
23 of the Micro Small and Medium Enterprise Development Act, 2006.
The information has been given in respect of such vendor to the extent they could be identified as Micro and Small Enterprises as per MSMED
Act, 2006 on the basis of information available with the company and in cases of confirmation from vendors, interest for delayed payments
has not been provided amounting to `45.90 Lakhs (31st March, 2019 - `26.22 Lakhs).

Annual Report 2019-20 115

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

43 Employee Benefits
Refer note 2.13 for accounting policy on Employee Benefits.
A. Defined contribution plans
i. Provident Fund/Employees’ Pension Fund
ii. Employees’ State Insurance
The Company has recognised following amounts as expense in the Statement of Profit and Loss :
(` in Lakhs)
Particulars For the Year ended For the Year ended
31st March, 2020 31st March, 2019
Included in contribution to Provident and Other Funds (Refer Note 36)
Employer’s contribution to Provident Fund/Employees’ Pension Fund 642.42 549.81
Included in Employee and Labour Welfare (Refer Note 36)
Contribution paid in respect of Employees’ State Insurance Scheme 58.56 145.89
B. Defined Benefit Plan
Gratuity: The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity
on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded.
(i) Balance Sheet
The assets, liabilities and surplus/(deficit) position of the defined benefit plans at the Balance Sheet date were:
(` in Lakhs)
Defined Benefit Plan- Gratuity (Funded)
As at 31st As at 31st
March, 2020 March, 2019
Present value of obligation 2,285.91 2,020.41
Fair value of plan assets 1,359.03 1,306.72
(Asset)/Liability recognised in the Balance Sheet 926.88 713.69
Net liability-current (Refer Note 31 ) 277.60 244.28
Net liability-non-current (Refer Note 25) 649.28 469.41
926.88 713.69
(ii) Movements in Present Value of Obligation and Fair Value of Plan Assets
(` in Lakhs)
Plan Assets Plan Obligation Total
As at April 01, 2018 920.04 1,454.76 534.71
Current service cost - 208.08 208.08
Past service cost - - -
Interest cost - 106.20 106.20
Interest income 67.16 - (67.16)
Return on plan assets excluding interest income 22.97 - (22.97)
Actuarial (gain)/loss arising from changes in demographic assumptions - - -
Actuarial (gain)/loss arising from changes in financial assumptions - (12.46) (12.46)
Actuarial (gain)/loss arising from experience adjustments - 316.91 316.91
Employer contributions 349.62 - (349.62)
Employee contributions - - -
Assets acquired/ (settled) - - -
Benefit payments (53.09) (53.09) -
As at 31st March, 2019 1,306.72 2,020.41 713.69
As at April 01, 2019 1,306.72 2,020.41 713.69
Current service cost - 235.33 235.33
Past service cost - - -
Interest cost - 149.51 149.51
Interest income 96.70 - (96.70)
Return on plan assets excluding interest income 0.14 - (0.14)
Actuarial (gain)/loss arising from changes in demographic assumptions - (11.71) (11.71)
Actuarial (gain)/loss arising from changes in financial assumptions - (390.60) (390.60)
Actuarial (gain)/loss arising from experience adjustments - 400.11 400.11
Employer contributions 72.61 - (72.61)
Employee contributions - - -
Assets acquired/ (settled) - - -
Benefit payments (117.13) (117.13) -
As at 31st March, 2020 1,359.03 2,285.91 926.88

116 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

(iii) Statement of Profit and Loss

The charge to the Statement of Profit and Loss comprises: (` in Lakhs)
Defined Benefit Plan- Gratuity (Funded)
Year ended Year ended
31st March, 2020 31st March, 2019
Expenses recognised in the Statement of Profit and Loss for the year
Employee Benefit Expenses :
Current service cost 235.33 208.08
Past service cost - -
Finance costs :
Interest cost 149.51 106.20
Interest income (96.70) (67.16)
Net impact on profit (before tax) 288.15 247.12
Recognised in other comprehensive income for the year
Remeasurement of the net defined benefit plans:
Actuarial (gain)/loss arising from changes in demographic assumptions (11.71) -
Actuarial (gain)/loss arising from changes in financial assumptions (390.60) (12.46)
Actuarial (gain)/loss arising from experience adjustments 400.11 316.91
Return (gain)/loss on plan assets excluding interest income (0.14) (22.97)
Net impact on other comprehensive income (before tax) (2.35) 281.49
(iv) Assets
The fair value of plan assets at the Balance Sheet date for the defined benefit plans for each category are as follows:
Defined Benefit Plan- Gratuity (Funded)
As at As at
31st March, 2020 31st March, 2019
The major categories of plan assets as a percentage of total
Insurer managed funds 100% 100%
The Trustees have taken policy from Life Insurance Corporation of India (LIC) and
pays premium. LIC in turn manages the assets which is within the permissible
limits prescribed in the insurance regulations. The Company does not forsee any
material risk from these investments.
(v) Assumptions
Defined Benefit Plan- Gratuity (Funded)
As at As at
31st March, 2020 31st March, 2019
Financial/Economic Assumptions
Discount rate (per annum) 6.70% 7.40%
Salary escalation rate (per annum) 5.00% 8.00%
Demographic Assumptions
Retirement age 85 years- 80 years-
For Bikramjit Ahluwalia For Bikramjit Ahluwalia
60 years- For all others 60 years- For all others
Mortality table Indian Assured Lives Indian Assured Lives
Mortality (2012-14) Mortality (2006-08)
Ult. Ult.
Withdrawal Rates
Ages (years)
All ages 7% per annum 8% per annum
Notes:-
(i) The actuarial valuation of plan assets and the present value of the defined benefit obligation were carried out as at 31st March,
2020. The present value of the defined benefit obligation and the related current service cost and past service cost, were measured using
the Projected Unit Credit Method.
(ii) Discount rate is based on the prevailing market yields of Indian Government securities as at the Balance Sheet date for the
estimated term of the obligations.
(iii) The salary escalation rate is arrived after taking into consideration the inflation, seniority, promotion and other relevant factors on
long term basis.

Annual Report 2019-20 117

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

(vi) Sensitivity Analysis

The sensitivity of the overall plan obligations to changes in the key assumptions are:
(` in Lakhs)
Defined Benefit Plan- Gratuity
As at 31st March, 2020 As at 31st March, 2019
Change in Change in Change in Change in
assumption Defined Benefit assumption Defined Benefit
Obligation Obligation
Discount rate (per annum) - Increase 1.00% (140.32) 1.00% (116.87)
- Decrease 1.00% 1.00%
157.70 131.58
Salary escalation rate (per annum) - Increase 1.00% 1.00%
158.81 129.53
- Decrease 1.00% (143.75) 1.00% (117.28)
The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the
end of the year and may not be representative of the actual change. It is based on a change in the key assumption while holding all other
assumptions constant. When calculating the sensitivity to the assumption, the same method used to calculate the liability recognised in the
Balance Sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared
with the previous year.
(vii) Maturity profile of defined benefit obligation
(` in Lakhs)
As at As at
31st March, 2020 31st March, 2019
Weighted average duration of the defined benefit obligation Expected benefit payments 10 years 10 years
within next-
I year 217.60 422.14
II year 233.67 140.67
III year 178.10 156.51
IV year 169.30 119.76
V year 297.35 114.95
thereafter 1,189.89 1,066.38
Expected contribution to the defined benefit plan (Gratuity) for the next annual reporting period `277.60 Lakhs (31st March, 2019 : `244.28 Lakhs)

44 STATUTORY AUDITORS’ REMUNERATION (Net of GST)

The charge to the Statement of Profit and Loss comprises: (` in Lakhs)

Particulars For the year ended For the year ended
31st March, 2020 31st March, 2019
(i) Statutory Audit / Limited Review Fee 28.00 20.00
(ii) Tax Audit Fee 4.00 4.00
(iii) Certification & other matters 0.73 0.98
(iv) Out of pocket expenses 1.52 1.39
Total 34.25 26.36

45 Leases
(a) Change in Accounting Policy
Except as specified below, the company has consistently applied the accounting policies to all periods presented in this financial statement.
The company has applied Ind AS 116 with the date of initial application of 1st April, 2019. As a result, the company has changed its
accounting policy for lease contracts as detailed below.
The company has applied Ind AS 116 using the modified retrospective approach, under which the cumulative effect of initial application
is recognized in retained earnings as at 1st April, 2019. The impact of change in accounting policy on account on adoption of Ind AS
116 is as follows :
Particulars (` in Lakhs)
Increase in lease liability by 1,580.14
Increase in rights of use by 3,292.00
Increase/(Decrease) in Deferred tax assets by (121.24)
Increase/(Decrease) in Retained Earnings by 360.49
Increase in finance cost by 930.90
Increase in depreciation by 299.22

118 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

Particulars (` in Lakhs)
Lease commitments as at 31 March 2019 1,619.32
Add/(less): Contracts reassessed as lease contracts 2,511.04
Add/(less): adjustments on account of extension/termination -
Lease liabilities as on 1 April 2019 4,130.36
Current Lease Liabilities 165.91
Non-Current Lease Liabilities 3,964.45
Right of use assets of `2,992.77 Lakhs and lease liabilities of `2,511.04 Lakhs have been recognised as on 1st April, 2019.

(b) Company as a Lessee

(i) The Company has developed Commercial Complex (Right of Use) under license arrangement with RSRTC- (Refer Note No. 5). The
Company has a right to Sub-lease Commercial Complex.
(ii) The Company has taken various residential, office and warehouse premises under operating lease agreements. These are generally not
non-cancellable and are renewable by mutual consent. There are no restrictions imposed by Lease Agreement. There are no subleases.
The disclosure with respect to the said non-cancellable lease are as follows :
i) Carrying value of right of use assets at the end of the reporting period by class :
(` in Lakhs)
Particulars Lands Investment Properties Total
Balance as at 1st April 2019 - 8,602.47 8,602.47
Impact on account of adoption of Ind AS-116 (Refer note 3, 4 & 5) 336.82 2,992.77 3,329.59
Additions during the year - 68.17 68.17
Depreciation Charge for the year 5.32 426.89 432.20
Balance as at 31st March 2020 331.50 11,236.52 11,568.03

ii) The following is the movement in lease liabilities during the year ended 31st March, 2020 :
(` in Lakhs)
Particulars Total
Lease liabilities as on 1 April 2019 4,130.36
Add : Additions -
Add : Finance cost accrued during the period 392.43
Less : Deletions -
Less : Payment of lease liabilities 154.24
Lease liabilities as on 31 March 2020 4,368.55
Current Lease Liabilities 182.50
Non-Current Lease Liabilities 4,186.05

iii) Maturity analysis of lease liabilities :

(` in Lakhs)
Maturity analysis – Contractual undiscounted cash flows As at 31st As at 31st
March, 2020 March, 2019
Not later than one year 182.51 121.09
Later than one year and not later than five years 931.71 770.01
More than five years 17,334.54 17,844.66
Total undiscounted lease liabilities 18,448.75 18,735.75

iv) Amounts recognised in Statement of profit or loss :

(` in Lakhs)
Particulars As at 31st As at 31st
March, 2020 March, 2019
Interest on lease liabilities 392.43 -
Expenses relating to short-term leases (Rent) 588.79 427.73
Expenses relating to leases of low-value assets, excluding short-term leases of low value assets - -

Annual Report 2019-20 119

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

v) The Company has entered into leases for lands. These leases are generally for a period ranging 90 years to 99 years. No part of the land
has been sub leased. Except for the initial payment, there are no material annual payments for the aforesaid leases. Refer Note 3 & 4
for carrying value.

(c) Company as a Lessor

Operating Lease:
The Company has given Right of Use Asset (Commercial Complex) on sublease under non-cancellable operating lease agreements. The
disclosure with respect to the said non-cancellable lease are as follows :
(` in Lakhs)
Particulars As at 31st As at 31st
March, 2020 March, 2019
(i) Operating sub-lease receipts recognised in the Statement of Profit and Loss 366.59 448.77
(ii) Operating lease income relating to variable lease payments that do not depend on an index or a rate 251.35 -
Total operating lease revenue 617.94 448.77
(iii) Future minimum rental receivables under non-cancellable operating lease
[Contractual undiscounted cash flows]
Not later than one year 595.27 543.78
Later than one year and not later than five years 2,507.48 2,460.82
More than five years 7,596.21 7,562.75

46 Related Party Disclosures

(i) Names of related parties and nature of relationships: (as ascertained by management)
a) Wholly owned Subsidiary Companies :
M/s. Dipesh Mining Pvt. Ltd.
M/s. Jiwanjyoti Traders Pvt. Ltd.
M/s. Paramount Dealcomm Pvt. Ltd.
M/s. Prem Sagar Merchants Pvt. Ltd.
M/s. Splendor Distributors Pvt. Ltd.

b) Key managerial personnel:

Mr. Bikramjit Ahluwalia Chairman & Managing Director
Mr. Shobhit Uppal Deputy Managing Director
Mr. Vinay Pal Whole time Director (resigned w.e.f. 31.05.2019)
Mr. Vikas Ahluwalia Whole time Director
Mr. Sanjiv Sharma Whole time Director (w.e.f. 01.08.2019)
Mrs. Mohinder Sahlot Independent Non-Executive Director
Mr. Arun Kumar Gupta Independent Non-Executive Director
Mr. S.K. Chawla Independent Non-Executive Director
Mr. Rajender Prashad Gupta Independent Non-Executive Director (w.e.f. 24.07.2019)
Dr. Sushil Chandra Independent Non-Executive Director
Mr. Satbeer Singh Chief Financial Officer
Mr. Vipin Kumar Tiwari Company Secretary

c) Relative of key managerial personnel & Relationship :

Mrs. Sudershan Walia Wife of Chairman & Managing Director
Mrs. Rohini Ahluwalia Daughter of Chairman & Managing Director
Mrs. Rachna Uppal Wife of Deputy Managing Director
Mr. Vikas Ahluwalia Son of Chairman & Managing Director
Mrs. Mukta Ahluwalia Daughter of Chairman & Managing Director

d) Enterprises owned and controlled by Key management personnel and by their relatives :
M/s. Ahluwalia Construction Group (Proprietor Mr. Bikramjit Ahluwalia)
M/s. Tidal Securities Private Limited

120 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

(ii) Transactions with related parties during the year :

(` in Lakhs)
Nature of Transactions Nature of Relationship For the year ended For the year ended
31st March, 2020 31st March, 2019
Rent paid
Sudershan Walia 54.00 54.00
Relative of Key
Rachna Uppal 12.00 12.00
Management Personnel
Rohini Ahluwalia - 7.20
Mukta Ahluwalia 6.00 6.00
Ahluwalia Construction Group Enterprises owned and 3.00 3.00
controlled by management
personnel and by their
relatives
Dividend paid
Bikramjit Ahluwalia Key Management 23.98 23.88
Shobhit Uppal Personnel 12.92 12.92
Vikas Ahluwalia 0.10 0.10
Sudershan Walia 66.76 66.76
Rachna Uppal Relative of Key 3.68 3.68
Rohini Ahluwalia Management Personnel 8.95 8.95
Mukta Ahluwalia 0.10 0.10
Tidal Securities Private Limited Enterprises owned and 0.08 0.08
controlled by management
personnel and by their
relatives
Unsecured Loan taken and interest paid
Bikramjit Ahluwalia
Unsecured Loan Taken Key Management - 1,620.00
Repaid Personnel 747.13 300.00
Interest Paid - -
Loan given and interest received
Vipin Kumar Tiwari
Loan Given Key Management 3.02 1.60
Repaid Personnel 3.02 2.90
Interest received 0.03 0.07
Satbeer Singh
Loan Given 1.55 5.06
Key Management
Repaid 2.30 4.03
Personnel
Interest received 0.16 0.15
Managerial Remuneration
Bikramjit Ahluwalia
- Short-term employee benefits 126.00 126.00
- Post-employment benefits - -
- Other long-term benefits - -
- Termination benefits* 234.79 243.57
Shobhit Uppal
- Short-term employee benefits 168.00 168.00
Key Management
- Post-employment benefits - -
Personnel
- Other long-term benefits - -
- Termination benefits* 192.83 208.44
Vinay Pal
- Short-term employee benefits 10.90 63.19
- Post-employment benefits - -
- Other long-term benefits - -
- Termination benefits* - 28.45

Annual Report 2019-20 121

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

(` in Lakhs)
Nature of Transactions Nature of Relationship For the year ended For the year ended
31st March, 2020 31st March, 2019
Vikas Ahluwalia - -
- Short-term employee benefits 60.00 60.00
- Post-employment benefits - -
- Other long-term benefits - -
- Termination benefits* 3.92 2.20
Sanjiv Sharma
- Short-term employee benefits 27.20 -
- Post-employment benefits - -
- Other long-term benefits - -
- Termination benefits* 1.28 -
Mohinder Kaur Sahlot
- Director Sitting Fees 2.20 3.20
Arun Kumar Gupta
- Director Sitting Fees 2.40 3.20
S.K. Chawla
- Director sitting fees Key Management - 3.00
Sushil Chandra Personnel
- Director Sitting Fees 2.40 3.20
Rajender Prasad Gupta
- Director Sitting Fees 1.00 -
Satbeer Singh
- Short-term employee benefits 30.31 29.30
- Post-employment benefits - -
- Other long-term benefits - -
- Termination benefits* 6.89 5.85
Vipin Kumar Tiwari
- Short-term employee benefits 20.64 18.26
- Post-employment benefits 1.15 1.17
- Other long-term benefits - -
- Termination benefits* 9.32 7.11
* Termination benefits (Gratuity are considered as per
Actuarial Valuation Report)

122 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

(iii) Balances Outstanding :

(` in Lakhs)
Particulars Nature of As at 31st As at 31st
Relationship March, 2020 March, 2019
Investments
Premsagar Merchants Pvt. Ltd. 116.35 116.35
Paramount Dealcomm Pvt. Ltd. 127.10 127.10
Subsidiary
Splendor Distributors Pvt. Ltd. 127.60 127.60
Companies
Dipesh Mining Pvt. Ltd. 130.85 130.85
Jiwan Jyoti Traders Pvt. Ltd. 126.10 126.10
Loan due to Directors
Bikramjit Ahluwalia Key Management 2,250.00 2,997.13
Personnel
Loan due from Key Management Personnel
Satbeer Singh Key Management 0.95 1.70
Personnel
Due to related parties (Remuneration, Rent & Interest)
Bikramjit Ahluwalia - Remuneration 97.35 50.42
Shobhit Uppal - Remuneration Key Management 59.38 50.61
Vinay Pal - Remuneration Personnel - 2.95
Vikas Ahluwalia - Remuneration 16.01 23.76
Sudershan Walia - Rent 43.74 150.00
Sanjiv Sharma - Remuneration Relative of Key 2.25 -
Management
Rachna Uppal - Rent Personnel 26.82 13.86
Rohini Ahluwalia - Rent 12.62 13.45
Pledge of Shares
Bikramjit Ahluwalia 87.80 87.80
Key Management
43,90,000 No. of shares of `2 each
Personnel
[31st March, 2019- 43,90,000 No. of shares of `2 each]
Sudershan Walia Relative of Key 229.51 229.51
1,14,75,380 No. of shares of `2 each Management
[31st March, 2019 - 1,14,75,380 No. of shares of `2 each] Personnel
- No amount has been written off or provided for in respect of transactions with the related parties.
(iv) Also refer note 23 & 27 as regards guarantees & mortgage of their immovable property received from key management personnel and their
relatives in respect of borrowings availed by the company.

47 Earnings per share (EPS)

(` in Lakhs)
Particulars For the year ended For the year ended
31st March, 2020 31st March, 2019
Net Profit/(Loss) for calculation of Basic/Diluted EPS (`in Lakhs) 6,443.59 11,737.93
Weighted average number of shares in calculating Basic EPS and Diluted EPS 6,69,87,560 6,69,87,560
Nominal Value of each share 2 2
Earning Per Share:
Basic (`) 9.62 17.52
Diluted (`) 9.62 17.52
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the company by the weighted average number of
equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the company by
the weighted average number of equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued
on conversion of all the dilutive potential Equity shares into Equity Shares.

Annual Report 2019-20 123

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

48 Disclosure pursuant to Ind AS 115 “Revenue from Contracts with Customers”

(a) Disaggregation of revenue into operating segments and geographical areas for the year ended 31st March, 2020:
(` in Lakhs)
Segment Revenue as per Ind AS 115 Total as per Profit and loss /
Domestic Foreign Total Segment Reporting
Construction Contract* 1,87,414.76 - 1,87,414.76 1,87,414.76
Lease Rental 617.94 - 617.94 617.94
Others (Inventory property) 459.99 - 459.99 459.99
Total 1,88,492.69 - 1,88,492.69 1,88,492.69
* Includes scrap sale of `547.75 lakhs
Disaggregation of revenue into operating segments and geographical areas for the year ended 31st March, 2019:
(` in Lakhs)
Segment Revenue as per Ind AS 115 Total as per Profit and loss /
Domestic Foreign Total Segment Reporting
Construction Contract* 1,72,995.56 - 1,72,995.56 1,72,995.56
Lease Rental 448.77 - 448.77 448.77
Others (Inventory property) 2,027.11 - 2,027.11 2,027.11
Total 1,75,471.44 - 1,75,471.44 1,75,471.44
* Includes scrap sale of `707.44 Lakhs.
(b) Out of the total revenue recognised under Ind AS 115 during the year, `1,86,867.00 Lakhs (P.Y. `1,72,288.12 Lakhs) is recognised over a
period of time and `1,625.69 Lakhs (P.Y. `3,183.33 Lakhs) is recognised at a point in time.

(c) Movement in Expected Credit Loss during the year:

Provision on Trade Receivables covered under Ind AS 115

(` in Lakhs)
Particulars 31st March, 2020 31st March, 2019
Opening balance 1,192.10 1,067.52
Ind AS 115 transition impact - -
Changes in allowance for expected credit loss :
Provision /(reversal) of allowance for expected credit loss 4,214.16 1,104.54
Write off as bad debts (4,214.16) (979.95)
Closing balance 1,192.10 1,192.10

(d) Contract Balances :

(i) Movement in Contract Balances during the year:
(` in Lakhs)
Particulars 31st March, 2020 31st March, 2019 Net Increase/(Decrease)
Contract Assets 29,483.17 24,034.29 5,448.88
Contract Liabilities 26,177.22 17,750.12 8,427.10
Net Contract Balances 3,305.95 6,284.17 (2,978.22)
(ii) Revenue recognised during the year from opening balance of contract liabilities amounts to `16,101.74 Lakhs (P.Y. `9,312.24
Lakhs).
(e) Cost to obtain the contract :
(i) Amount of amortisation recognised in Profit and Loss during the year `Nil (P.Y. `Nil).
(ii) Amount recognised as assets as at 31st March, 2020: `Nil (P.Y. `Nil).

124 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

(f) Reconciliation of contracted price with revenue during the year :

(` in Lakhs)
Particulars 31st March, 2020 31st March, 2019
Opening contracted price of orders* 10,65,837.55 8,30,466.21
Add :
Fresh orders/change orders received (net) 3,57,805.83 4,69,981.38
Increase due to additional consideration recognised as per contractual terms 4,737.31 27,855.14
Increase due to exchange rate movements (net) - -
Less :
Orders completed during the year 1,33,715.95 2,27,769.77
Projects suspended/stopped during the year 59,565.93 34,695.40
Closing contracted price of orders* 12,35,098.81 10,65,837.55
Total Revenue recognised during the year 1,86,867.01 1,72,288.12
Less: Revenue out of orders completed during the year 11,820.11 11,731.88
Revenue out of orders under execution at the end of the year (I) 1,75,046.90 1,60,556.24
Revenue recognised upto previous year (from orders pending completion at the end of 3,50,695.41 3,14,404.92
the year) (II)
Decrease due to exchange rate movements (net) (III) - -
Balance revenue to be recognised in future viz. Order book (IV) 7,09,356.49 5,90,876.39
Closing contracted price of orders* (I+II+III+IV) 12,35,098.81 10,65,837.55
*including full value of partially executed contracts.

(g) Remaining performance obligations: The aggregate amount of transaction price allocated to remaining performance obligations and expected
conversion (as estimated by the management) of the same into revenue is as follows:

(` in Lakhs)
Particulars Total Expected conversion in revenue
Upto 1 Year From 1 to 2 From 2 to 3 From 3 to 4 Beyond 4 years
years years years
Transaction price
allocated to the remaining
performance obligation
31st March, 2020 7,09,356.49 1,32,952.79 2,22,061.02 2,30,264.22 1,24,078.46 -
31st March, 2019 5,90,876.39 1,83,732.04 1,77,291.45 1,66,666.20 63,186.70 -

49 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT POLICIES AND OBJECTIVES
I Financial Instruments - Accounting classification, fair values and fair value hierarchy :
The category wise details as to the carrying value and fair value of the Company’s financial assets and financial liabilities including their levels
in the fair value hierarchy are as follows:
(` in Lakhs)
Particulars Levels Carrying values as at Fair values as at
31st March, 2020 31st March, 2019 31st March, 2020 31st March, 2019
1. Financial assets at
a. Fair value through Profit & Loss - - - -
b. Fair value through other comprehensive - - - -
income
c. Amortised cost
Trade receivables Level 2 59,726.46 59,499.25 59,726.46 59,499.25
Cash & cash equivalents Level 1 16,498.68 13,758.19 16,498.68 13,758.19
Bank balances other than Cash & cash Level 1 7,886.53 7,156.88 7,886.53 7,156.88
equivalents
Loans Level 2 800.82 728.51 800.82 728.51
Other financial assets Level 2 3,585.31 3,069.04 3,585.31 3,069.04

Annual Report 2019-20 125

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

(` in Lakhs)
Particulars Levels Carrying values as at Fair values as at
31st March, 2020 31st March, 2019 31st March, 2020 31st March, 2019
2. Financial liabilities
a. Fair value through Profit & Loss - - - -
b. Fair value through other comprehensive - - - -
income
c. Amortised cost
Borrowings Level 2 4,704.86 6,086.70 4,704.86 6,086.70
Trade payables Level 2 52,309.73 42,852.49 52,309.73 42,852.49
Lease liabilities Level 2 4,368.54 - 4,368.54 -
Other financial liabilities Level 2 4,582.09 5,477.88 4,582.09 5,477.88
Methods and assumptions used to estimate the fair values are consistent with those used for the year ended 31st March, 2019.The following
methods / assumptions were used to estimate the fair values:
1. The carrying value of Cash and cash equivalents, trade receivables, trade payables, short-term borrowings, other current financial assets
and financial liabilities approximate their fair value mainly due to the short-term maturities of these instruments.
2. Borrowings have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated future
cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.
3. Security deposits received against leases and lease liabilities are fair valued at initial recognition. Valuation technique used and key inputs
thereto for these Level 2 financial liabilities are determined using Discounted Cash Flow method using appropriate discounting rates. After
initial recognition, they are carried at amortised cost.
4. There has been no change in the valuation methodology for Level 3 inputs during the year. There were no transfers between Level 1 and
Level 2 during the year and no transfer into and out of Level 3 fair value measurements
II. Financial Risk Management Objectives and Policies
The Company’s activities expose it to a variety of financial risks namely market risk, credit risk and liquidity risk. The Company’s primary
risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company’s risk management
assessment & policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and
controls, and to monitor such risks and compliance with the same.
Risk assessment & management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s
activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company’s risk assessment & management policies
and processes.
The Company’s financial risk management policy is set by the management. Market risk is the risk of loss of future earnings, fair values or
future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a
result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive
instruments. The Company manages market risk which evaluates and exercises independent control over the entire process of market risk
management. The management recommends risk management objectives and policies, which are approved by Senior Management and the
Audit Committee.
a. Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Company’s receivables from customers. Credit risk arises from cash held with banks as well as
credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of
the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the
credit quality of the counterparties, taking into account their financial position, past experience and other factors. The Company establishes an
allowance for impairment that represents its expected credit losses in respect of trade and other receivables. The management uses a simplified
approach for the purpose of computation of expected credit loss for trade receivables.
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the
customer, including the default risk of the industry and country, in which the customer operates, also has an influence on credit risk assessment.
Credit risk is managed through credit approvals, establishing credit limits, continuously monitoring the credit worthiness of customers to which
the Company grants credit terms in the normal course of business and through regular monitoring of conduct of accounts.
An impairment analysis is performed at each reporting date on an individual basis for major customers. The history of trade receivables
shows a negligible provision for bad and doubtful debts. The management believes that no further provision is necessary in respect of trade
receivables based on historical trends of these customers. Further, the Company’s exposure to customers is diversified.
The Company had one Customer (Central Govt. and State Govt. both) that owned the company more than `45,093.61 Lakhs (31st March,
2019 : `33,215.75 Lakhs) and accounted for approximately 57% (31st March, 2019 : 43%) of all the receivables outstanding.

126 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

The movement in the loss allowance in respect of trade and other receivables during the year was as follows:
(` in Lakhs)
Particulars As at 31st As at 31st
March, 2020 March, 2019
Opening Balance 1,192.10 1,067.52
Impairment loss recognised 4,214.16 1,104.54
Amount written off as bad debts (4,214.16) (979.95)
Closing Balance 1,192.10 1,192.10

The credit risk on liquid funds such as banks in current and deposit accounts is limited because the counterparties are banks with high credit-
ratings.
b) Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its
liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk
management framework for the management of the Company’s short-term, medium-term and long-term funding and liquidity management
requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and committed borrowing facilities,
by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities and by
monitoring rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient
headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants
(where applicable) on any of its borrowing facilities.
The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments based on
contractual undiscounted payments.
(` in Lakhs)
Particulars Carrying upto 1 year 1-3 year 3-5 year More than Total contracted
amount 5 year cash flows
As at 31st March, 2020
Borrowings and interest thereon * 4,738.35 4,889.77 58.85 - - 4,948.62
Trade payables 52,309.73 52,309.73 - - - 52,309.73
Lease Liabilities 4,368.54 182.50 421.59 510.12 17,334.54 18,448.75
Other financial liabilities (excluding 4,548.61 4,236.60 312.01 - - 4,548.61
current maturities of Long term
borrowings)
Total Non-Derivative Liabilities 65,965.23 61,618.60 792.44 510.12 17,334.54 80,255.71
Derivatives
Other financial liabilities - - - - - -
Total Derivative Liabilities - - - - - -

(` in Lakhs)
Particulars Carrying upto 1 year 1-3 year 3-5 year More than Total contracted
amount 5 year cash flows
As at 31st March, 2019
Borrowings and interest thereon * 6,111.64 6,323.14 47.54 23.81 - 6,394.50
Trade payables 42,852.49 42,852.49 - - - 42,852.49
Other financial liabilities (excluding 5,452.94 3,662.38 632.62 421.59 736.37 5,452.95
current maturities of Long term
borrowings)
Total Non-Derivative Liabilities 54,417.07 52,838.01 680.16 445.40 736.37 54,699.94
Derivatives
Other financial liabilities - - - - - -
Total Derivative Liabilities - - - - - -
* The table has been drawn up based on the undiscounted contractual maturities of the financial liabilities including interest that will be paid
on those liabilities upto the maturity of the instruments, ignoring the call and refinancing options available with the Company, if any. The
amounts included above for variable interest rate instruments for non-derivative liabilities is subject to change if changes in variable interest
rates differ to those estimates of interest rates determined at the end of the reporting period.
The above excludes any financial liabilities arising out of financial guarantee contract.
In respect of financial guarantees provided by the company to banks and finacial instituitions, the maximum exposure which the company is
exposed to is the maximum amount which the company would have to pay if the guarantee is called upon. Based on the expectation at the
end of the reporting period, the company considers that is more likely than not that such an amount will not be payable under the guarantees
provided.

Annual Report 2019-20 127

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

Financing facilities :
The Company has access to financing facilities as described in below Note. The Company expects to meet its obligations from operating cash
flows and proceeds of maturing financial assets.
(` in Lakhs)
Particulars As at 31st As at 31st
March, 2020 March, 2019
Secured bank loan facilities with various maturity dates through to 31st March, 2021
and which may be extended by mutual agreement:
- amount used 87.50 87.18
- amount unused - -
Unsecured loans from promoter
- amount used 2,250.00 2,997.13
- amount unused - -
Secured bank overdraft facility :
- amount used 2,400.28 3,026.66
- amount unused 6,899.72 4,473.34
9,300.00 7,500.00

Other Risk – Impact of COVID-19

Financial assets carried at fair values as at 31st March, 2020 is Nil and financial assets carried at amortised cost as at 31st March,
2020 is `88,497.81 Lakhs. Financial assets classified as Level 1 and Level 2 are having fair value of `88,497.81 Lakhs as
at 31st March, 2020. The fair value of these assets have been determined considering uncertainties arising out of COVID-19.
Financial assets of `24,385.22 Lakhs as at 31st March, 2020 carried at amortised cost is in the form of cash and cash equivalents,
bank deposits and earmarked balances with banks where the Company has assessed the counterparty credit risk. Trade receivables of
`59,726.46 Lakhs as at 31st March, 2020 forms a significant part of the financial assets carried at amortised cost which are valued
considering provision for allowance using expected credit loss method. In addition to the historical pattern of credit loss, we have
considered the likelihood of increased credit risk and consequential default considering emerging situations due to COVID-19.
This assessment is not based on any mathematical model but an assessment considering the financial strength of the customers in respect of
whom amounts are receivable. The Company has specifically evaluated the potential impact with respect to customers in Domestic segment
which could have an immediate impact. The Company closely monitors its customers who are going through financial stress and assesses
actions such as change in payment terms, recognition of revenue on collection basis etc., depending on severity of each case. Basis this
assessment, the allowance for doubtful trade receivables of `1,192.10 Lakhs as at 31st March, 2020 is considered adequate.
c) Market Risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and
prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as a
result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments and all
short term and long-term debt. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity
price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTOCI investments,
trade payables, trade receivables and other financial instruments. The Company is exposed to market risk primarily related to foreign exchange
rate risk, interest rate risk and the market value of its investments. Thus, the Company’s exposure to market risk is a function of investing and
borrowing activities.
i. Foreign exchange risk
Foreign exchange risk is the risk that the fair value of future cash flows of financial instrument will fluctuate because of changes in foreign
exchange rate. The Company has no material exposure to foreign exchange risk as it does not generally have any financial assets or liabilities
which are denominated in a currency other than INR.
However, the following table sets forth information relating to foreign currency exposure (Unhedged) as on balance sheet dates:

Foreign Currency Liabilities / Assets As at 31st March, 2020 As at 31st March, 2019
Foreign Indian Rupees Foreign Indian Rupees
currency (In lakhs) currency (In lakhs)
Currency
Trade Payables & other liabilities
USD 4,58,274.15 345.45 74,895.00 51.81
Euro 29,065.00 24.14 12,187.50 9.47

128 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

a. Foreign currency sensitivity analysis :

The following tables demonstrate the sensitivity to a reasonably possible change in exchange rates of USD, JPY and Euro with INR, with
all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and
liabilities including non-designated foreign currency derivatives. The Company’s exposure to foreign currency changes for all other currencies
is not material.
(` in Lakhs)
Particulars 31st March, 2020 31st March, 2019
Effect on Profit before tax Gain/(Loss) Effect on Profit before tax Gain/(Loss)
5% movement Strengthening of Weakening of Strengthening of Weakening of
Foreign Currency Foreign Currency Foreign Currency Foreign Currency
On Foreign Currency Liability :
USD 17.27 (17.27) 2.59 (2.59)
Euro 1.21 (1.21) 0.47 (0.47)
ii. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest
rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations
with floating interest rates.
The Company’s investments in term deposits (i.e., margin money) with banks are for short durations, and therefore do not expose the Company
to significant interest rates risk.
a. Interest rate risk exposure
The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period are as follows:
(` in Lakhs)
Particulars As at 31st As at 31st
March, 2020 March, 2019
Floating rate instruments :
INR Borrowings 2,487.77 3,113.83

The table excludes non interest bearing/fixed rate of interest borrowings ` 2,250.00 Lakhs (31st March, 2019 : ` 2,997.13 Lakhs).
b. Interest rate sensitivity :
The sensitivity analysis below have been determined based on exposure to interest rates for borrowings at the end of the reporting period
and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in case of
borrowings that have floating rates.
If the interest rates had been 50 basis points higher or lower and all the other variables were held constant, the effect on interest expense for
the respective financial years and consequent effect on Company’s profit in that financial year would have been as below:

(` in Lakhs)
Particulars Impact on Profit Before Tax
Year ended 31st Year ended 31st
March, 2020 March, 2019
Floating rate instruments :
50 basis points increase (12.44) (15.57)
50 basis points decrease 12.44 15.57

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.
III Capital Risk Management Policies and Objectives
The Company’s objective while managing capital is to safeguard its ability to continue as a going concern (so that it is enabled to provide
returns and create value for its shareholders, and benefits for other stakeholders), support business stability and growth, ensure adherence
to the covenants and restrictions imposed by lenders and / or relevant laws and regulations, and maintain an optimal and efficient capital
structure so as to reduce the cost of capital and to maximise shareholders value. In order to maintain or adjust the capital structure, the
Company may adjust the dividend payment to shareholders, return capital to shareholders, issue new shares, obtain new borrowings or sell
assets to reduce debt, etc.
The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its business requirements
and the requirements of the financial covenants.
The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Net debt is calculated as interest
bearing loans and borrowings less cash and cash equivalents.

Annual Report 2019-20 129

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

The gearing ratio at the end of the reporting period was as follows:
(` in Lakhs)
Particulars As at 31st As at 31st
March, 2020 March, 2019
Debt 4,737.77 6,110.96
Lease liabilities 4,368.54 -
Cash and cash equivalents (16,498.68) (13,758.19)
Net debt (7,392.37) (7,647.23)
Total Equity 80,403.07 73,839.51
Capital and net debt 73,010.70 66,192.28
Gearing Ratio (%) -10.13% -11.55%

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial
covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial
covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any
interest-bearing loans and borrowings in the current period.

IV Changes in liabilities arising from financing activities

With effect from 01.04.2017, the Company adopted the amendments to Ind AS 7 - Statement of cash flows.The amendments require entities
to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both
changes arising from cash flows and non-cash changes. To the extent necessary to satisfy this requirement, an entity discloses the following
changes in liabilities arising from financing activities:
• Changes from financing cash flows
• Changes arising from obtaining or losing control of subsidiaries or other businesses
• The effect of changes in foreign exchange rates
• Changes in fair values
• Other changes
Paragraph 44C of Ind AS 7 states that liabilities arising from financing activities are liabilities for which cash flows were, or future cash flows
will be, classified in the statement of cash flows as cash flows from financing activities. In addition, the disclosure requirement in paragraph
44A also applies to changes in financial assets (for example, assets that hedge liabilities arising from financing activities) if cash flows from
those financial assets were, or future cash flows will be, included in cash flows from financing activities.
The Company disclosed information about its interest-bearing loans and borrowings.
The amendments suggest that the disclosure requirement may be met by providing a reconciliation between the opening and closing balances
in the statement of financial position for liabilities arising from financing activities. Where an entity discloses such a reconciliation, it shall
provide sufficient information to enable users of the financial statements to link items included in the reconciliation to the statement of financial
position and the statement of cash flows. The Company decided to provide information in a reconciliation format. The major changes in the
Company’s liabilities arising from financing activities are due to financing cash flows and accrual of financial liabilities. The Company did
not acquire any liabilities arising from financing activities during business combinations effected in the current period or comparative period.

130 Ahluwalia Contracts (India) Limited

 (` in Lakhs)
01.04.2019 Cash Flows Non-cash changes 31.03.2020
(Opening balance Arising from Foreign Fair value Others (Closing
of current year) obtaining or exchange changes balance of
losing control of movement current year)
subsidiaries or
other businesses
i. Current loans and borrowings 6,023.79 (1,373.51) - - - - 4,650.28
ii. Current maturities of Long term borrowings 24.26 - - - 32.91 32.91
(24.26)
iii. Non-current loans and borrowings (excluding current 62.92 - 54.59
maturities) 24.58 - - (32.91)
iv. Interest accrued on borrowings 0.67 - - - 1,866.34 * 0.58
(1,866.44)
Total liabilities from financing activities 6,111.64 (3,239.63) - - - 1,866.34 4,738.35
* Represents interest expenses recognised in Statement of Profit & Loss.

(` in Lakhs)
01.04.2018 Cash Flows Non-cash changes 31.03.2019
(Opening balance (Closing
of comparative balance of
period) comparative
period)
Arising from Foreign Fair value Others
obtaining or exchange changes
losing control of movement
subsidiaries or
other businesses
i. Current loans and borrowings 2,888.57 3,135.21 - - - - 6,023.79
ii. Current maturities of Long term borrowings 18.64 (18.64) - - - 24.26 24.26
iii. Non-current loans and borrowings (excluding current 72.97 14.20 - - - (24.26) 62.92
maturities)
Corporate Overview

iv. Interest accrued on borrowings 0.33 (978.56) - - - 978.91 * 0.67

Total liabilities from financing activities 2,980.51 2,152.22 - - - 978.91 6,111.64
* Represents interest expenses recognised in Statement of Profit & Loss.
The ‘Other’ column includes the effect of reclassification of current portion (current maturities) of non-current interest-bearing loans and borrowings.
Statutory Reports

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

Annual Report 2019-20

Financial Statements

131
 50 Segment information- Disclosure pursuant to Ind AS 108 “Operating Segment”
A. Information about reportable segment
(` in Lakhs)
Particulars Construction Contract Investment Property Other Unallocated Total
(Lease Rental)
31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March,
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Revenue
External revenue 1,87,414.76 1,72,995.56 617.94 448.77 459.99 2,027.11 - - 1,88,492.69 1,75,471.44
Inter segment revenue - - - - - - - - - -
Total segment revenue 1,87,414.76 1,72,995.56 617.94 448.77 459.99 2,027.11 - - 1,88,492.69 1,75,471.44
Segment results 14,249.21 21,883.02 (608.88) (818.94) (111.10) (804.22) 13,529.23 20,259.86

132 Ahluwalia Contracts (India) Limited

Less:
a. Finance costs 3,499.77 1,922.40 3,499.77 1,922.40
b. Other unallocable expense 370.49 390.35 370.49 390.35
net of unallocable income
(Loss)/Profit before tax 9,658.97 17,947.11
Tax expenses 3,215.38 6,209.18
(Loss)/Profit after tax 6,443.59 11,737.93

(` in Lakhs)
Other Information Construction Contract Investment Property Other Unallocated Total
(Lease Rental)
31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March,
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Segment Assets 1,38,311.70 1,16,470.86 11,355.11 8,761.94 5,314.08 5,049.75 21,019.84 18,350.34 1,76,000.73 1,48,632.89
Segment Liabilities 85,999.34 66,576.88 4,948.04 2,192.71 - - 4,650.28 6,023.79 95,597.66 74,793.38
Capital Employed 52,312.36 49,893.98 6,407.07 6,569.23 5,314.08 5,049.75 16,369.57 12,326.56 80,403.07 73,839.51
Notes to the financial statements for the year ended 31st March, 2020 (Contd.)
 (` in Lakhs)
Particulars Depreciation, amortisation Other non-cash expenses Interest expense included in Additions to Non-Current
and impairment include in included in segment segment expense Assets
segment expense expense
For the year ended For the year ended For the year ended For the year ended
31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March,
2020 2019 2020 2019 2020 2019 2020 2019
Construction Contract 2,760.26 2,445.57 4,214.16 1,104.54 1,526.65 535.59 3,944.02 2,897.54
Investment Property (Lease Rental) 426.89 310.23 - - - - 68.17 223.82
Others - - 17.54 235.20 - - - -
Segment Total 3,187.15 2,755.79 4,231.70 1,339.74 1,526.65 535.59 4,012.19 3,121.36
Unallocated - - - - (1,526.65) (535.59) - -
Total 3,187.15 2,755.79 4,231.70 1,339.74 - - 4,012.19 3,121.36

Reconciliation to amounts reflected in the financial statements

Reconciliation of assets
(` in Lakhs)
Particulars 31st March, 2020 31st March, 2019
Segment assets 1,54,980.88 1,30,282.55
Deferred tax assets (net) 2,357.77 2,832.72
Non-current tax assets (net) 2,015.55 175.19
Cash and Bank Balances 16,646.52 15,342.43
Total assets 1,76,000.73 1,48,632.89

Reconciliation of liabilities
(` in Lakhs)
Particulars 31st March, 2020 31st March, 2019
Segment liabilities 90,947.38 68,769.59
Current Borrowings 4,650.28 6,023.79
Total liabilities 95,597.66 74,793.38
Corporate Overview
Statutory Reports

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

Annual Report 2019-20

Financial Statements

133
Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

B. Geographic Information
(` in Lakhs)
Particulars Segment revenue* Non-current assets**
31st March, 2020 31st March, 2019 31st March, 2020 31st March, 2019
Within India 1,88,492.69 1,75,471.44 28,900.44 22,155.87
Outside India - - - -
Total 1,88,492.69 1,75,471.44 28,900.44 22,155.87
*Revenues by geographical area are based on the geographical location of the client.
**Non-current assets for this purpose consists of Property, plant & equipment, Capital Work in progress, Right of Use Assets, Investment
Property, Intangible assets and other non current assets.
C. Basis of identifying operating segments, reportable segments, segment profit and definition of each reportable segment and segment
composition:
(i) Basis of identifying operating segments:
Operating segments are identified as those components of the Company (a) that engage in business activities to earn revenues and incur
expenses (including transactions with any of the Company’s other components) (b) whose operating results are regularly reviewed by the
Company’s Chief Executive Officer to make decisions about resource allocation and performance assessment and (c) for which discrete
financial information is available.
The accounting policies consistently used in the preparation of the financial statements are also applied to record revenue and expenditure
in individual segments. Assets, liabilities, revenues and direct expenses in relation to segments are categorised based on items that are
individually identifiable to that segment, while other items, wherever allocable, are apportioned to the segments on an appropriate basis.
Certain items are not specifically allocable to individual segments as the underlying services are used interchangeably. The Company therefore
believes that it is not practical to provide segment disclosures relating to such items, and accordingly such items are separately disclosed as
‘unallocated’.
(ii) Reportable segments:
An operating segment is classified as reportable segment if reported revenue (including inter-segment revenue) or absolute amount of result or
assets exceed 10% or more of the combined total of all the operating segments.
(iii) Segment profit:
Performance of a segment is measured based on segment profit (before interest and tax), as included in the internal management reports that
are reviewed by the Company’s Chief Executive Officer.
(iv) Segment composition:
a) Revenue from construction contract
b) Lease Rental from Investment Property (Bus Terminal & Depot and Commercial Complex) at Kota
c) Other comprises Inventory Property
D. Revenue from one customer (Central Govt. and State Govt. both) in Construction Contract segment amounting to `1,30,324.31 Lakhs (31st
March, 2019 : `1,03,603.05 Lakhs) and accounted for approximately 69.74% (31st March, 2019 : 60.22%) contributed to more than 10%
of the entity’s total revenue.

51 In light of Section 135 of the Companies Act, 2013, the Company has incurred expenses on Corporate Social
responsibility (CSR) aggregating to `68.07 Lakhs (previous year `11.07 Lakhs).
The disclosure in respect of CSR expenditure is as follows:
(` in Lakhs)
Particulars For the year ended For the year ended
31st March, 2020 31st March, 2019
a. Gross amount required to be spent by the Company during the year 327.96 285.07
b. Amount spent during the year on the following: - -
1. Construction/acquisition of asset - -
2. On purposes other than 1 above 68.07 11.07

52 The Company has claimed Delhi VAT Credit balance as on 01.07.2017 in Trans I filed under GST regime which includes `1,783.64 Lakhs
related to period from 2009 to 2013. The Company has availed Amnesty Scheme 2013 of Delhi Government for the period from 2009 to
2013. The Company is not entitled to VAT Input credit for the period for which amnesty scheme was availed as per the order of Commissioner
VAT, New Delhi dated 17.01.2018. The Company has accordingly not recognised VAT Credit balance for the said period in the books.

134 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

53 Particulars of loans given, guarantee given or security provided and investment made during the year as
mandated by section 186 (4) of the Companies Act, 2013
(a) Loan given: Nil
(b) Guarantee given: Nil
(c) Security provided: Nil
(d) Investments made/(sold): Refer note no. 7 for the details of investments made/ (sold) by the Company as at the reporting dates.

54 Use of estimates and judgements

The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting period end. Although these estimates are based upon management’s
best knowledge of current events and actions, historical experience and other factors, including expectations of future events that are believed
to be reasonable, actual results could differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the
period of the revision and future periods if the revision affects both current and future periods.
A. Significant Judgements in applying accounting policies
The judgements, apart from those involving estimations (see note below), that the Company has made in the process of applying its accounting
policies and that have a significant effect on the amounts recognised in these financial statements pertain to :
(i) Kota Project : Investment Property :
The Company has developed (Bus Depot and Commercial Complex at Kota) for Rajasthan State Road Transport Corporation (RSRTC) under
an “Agreement to Develop” / License agrement at a cost of `12,487.90 Lakhs spent till 31.03.2020 including discounted value of license
fees of `2,992.77 lacs recognised on application of Ind AS 116 effective from 01.04.2019 (upto 31.03.2019 `9,426.95 Lakhs) on the
land belonging to RSRTC under license arrangement. The expenditure (construction cost) incurred has been shown in Balance Sheet under
the main head “Investment Property” and sub-head “Right of Use Assets (Building)”. The Company has a right to Lease Right of Use Asset
(Commercial Complex). The primary lease period of Commercial complex is 30 years which can be extended for a further period of 10 years
at the option of the Company from the date of completion of the project. Thereafter, the Commercial Complex will be handed over to RSRTC
Determination of applicability of Appendix A of Service Concession Arrangement (‘SCA’), under Ind AS - 115 ‘Revenue from Contracts with
Customers’:
This Interpretation applies to public-to-private service concession arrangements if:
(a) the grantor controls or regulates what services the operator must provide with the infrastructure, to whom it must provide them, and at what price; and
(b) the grantor controls through ownership, beneficial entitlement or otherwise any significant residual interest in the infrastructure at the
end of the term of the arrangement.
In the given case, though RSRTC controls/ regulates what services the Company must provide with the infrastructure, rental of commercial
complex in the given case. However it does not regulate: to whom the Company must provide them and at what price. Since the first condition
is not met, the management has concluded that SCA does not apply in this case.
Determination of applicability of Ind As 40 – Investment Property:
In view of the fact that the Company constructed the building at its own cost and in view of the substantial rights entrusted with the Company,
the substance of the legal agreements with RSRTC, in the judgement of the management, is that the Company is the beneficial owner of the
Building though legal title vests with RSRTC and the license fees payable by the Company to RSRTC is in effect for use of land.
The cost of construction represents building held by the Company to earn rentals rather than for use in the production or supply of goods
or services or for administrative purposes; or for sale in the ordinary course of business. The commercial complex is not intended for sale in
ordinary course of business of the Company.
Accordingly, the management has concluded that Ind As 40 shall apply in its case and the cost of construction shall be accounted for as
investment property under Ind AS 40.
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 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 Company’s operations taking into account the
location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the
lease term reflects the current economic circumstances. After considering current and future economic conditions, the Company has concluded
that no changes are required to lease period relating to the existing lease contracts.

Annual Report 2019-20 135

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

B. 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
(i) Impairment of trade receivables:
The impairment provisions for trade receivables are based on lifetime expected credit loss based on a provision matrix. Lifetime expected credit
losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument. The provision
matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance
is based on the ageing of the receivables that are due and the rates used in the provision matrix.
(ii) Fair value measurements of financial instruments:
In estimating the fair value of a financial asset or a financial liability, the Company uses market-observable data to the extent it is available.
Where active market quotes are not available, the management applies valuation techniques to determine the fair value of financial instruments.
This involves developing estimates, assumptions and judgements consistent with how market participants would price the instrument.
(iii) Valuation of investment property :
Investment property is stated at cost. However, as per Ind AS 40 there is a requirement to disclose fair value as at the balance sheet date. The
Company engaged independent valuer to determine the fair value of its investment property as at reporting date.
Right of Use Assets (Building) :
The determination of the fair value of investment property, viz. right of use assets (Building) at Kota requires the use of estimates such as
future cash flows from the assets (such as lettings, future revenue streams and the overall repair and condition of the property and property
operating expenses etc.) and discount rates applicable to those assets. As at 31st March, 2020 and As at 31st March, 2019, the property is
fair valued based on valuations performed by an independent valuer who holds a recognised and relevant professional qualification and has
relevant valuation experience.
(iv) Estimation of net realisable value for inventory property
Inventory is stated at the lower of cost and net realisable value (NRV).
NRV for inventory property is assessed by reference to market conditions and prices existing at the reporting date and is determined by the
Company after taking suitable external advice and in the light of recent market transactions, as well as the estimated cost to be incurred for
completion of the construction.
(v) Actuarial Valuation:
The determination of Company’s liability towards defined benefit obligation viz. gratuity to employees is made through independent actuarial
valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in other comprehensive income. Such
valuation depend upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors such as
supply and demand factors in the employment market. Information about such valuation is provided in notes to the financial statements.
(vi) Claims, Provisions and Contingent Liabilities:
The Company has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to be probable
and a reliable estimate of the outcome of the dispute can be made based on management’s assessment of specific circumstances of each
dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals are by nature complex and can
take number of years to resolve and can involve estimation uncertainty. These estimates could change substantially over time as new facts
emerge and each dispute progresses. Information about such litigations is provided in notes to the financial statements.
(vii) Useful lives of property, plant and equipment, investment property and intangible assets:
As described in the significant accounting policies, the Company determines and also reviews the estimated useful lives of property, plant and
equipment, investment property and intangible assets at the end of each reporting period. Such lives are dependent upon an assessment of
both the technical life of the assets and also their likely economic life, based on various internal and external factors including relative efficiency
and operating costs. Accordingly, depreciable lives are reviewed annually using the best information available to the Management.
(vii) Retention money
The payment terms followed by the Company are generally followed by the most of the companies (customers as well as contracts) in the
construction contracts and are customary in the construction industry. The customer pays advance before start of the project and retains
a specified percentage of the contract value as retention money to ensure successful completion of the construction activities. These are
generally accepted industry practice. Moreover, these contracts are generally based on competitive bidding and are awarded based on the
lowest evaluated price. The retention money is contractually due for payment by customer on completion of the project / after a specified defect
liability period which is generally 1-3 years and to fulfill the customer’s satisfaction of conditions specified and adequate protection to meet
obligations in the contract. Similarly, customer also pays advances before start of the execution of the project which reflects commitment from
the customer and the same is being adjusted against running bills. The retention money in a contract does not have any financing component
as the same is for protecting/ensuring the performance commitment Therefore, the management believes that there is no time value of money
involved.

136 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

55 Correction of errors
A. During the year ended 31 March 2020, the management undertook a detailed review of its financial statements and observed an
inadvertent error in application of Ind AS-115, effective from 01-04-2018.
i) The change in inventory of work in progress has been disclosed in the statement of profit and loss account as a line item instead of unbilled
revenue under the head revenue from operation.
ii) The inventory of Work-in-progress had been disclosed under the head inventories instead of unbilled revenue under Other Current Assets in
previous financial statements.
iii) Further, retention money had been disclosed under the head trade receivables instead of other assets. The amount of retention money held
by the customers is due on future performance obligation.
Therefore, for the financial year ended 31 March, 2020 the error has been corrected by restating each of the affected financial statement line
items for the prior period as follows :

(` in Lakhs)
Balance Sheet As at 31st March, 2019
As previously Changes due to As Restated
Reported correction of error
Change in Assets
Non-Current Trade Receivables 10,760.77 (3,043.27) 7,717.50
Deferred Tax Assets 2,991.21 (158.49) 2,832.72
Other Non-Current Assets 450.37 3,043.27 3,493.64
Inventories 22,229.92 (7,418.82) 14,811.10
Current Trade Receivables 64,900.40 (13,118.65) 51,781.75
Other Current Assets 2,827.12 20,991.02 23,818.14
Total Items Change in Assets 1,04,159.79 295.06 1,04,454.85
Change in Equity & Liabilities
Other Equity 72,204.70 295.06 72,499.76
Other Non Current Liability 5,980.16 (1,506.37) 4,473.79
Other Non Current Financial Liability 284.19 1,506.37 1,790.57
Total Items Change in Equity & Liabilities 78,469.06 295.06 78,764.12

(` in Lakhs)
Statement of Profit & Loss As at 31st March, 2019
As previously Changes due to As Restated
Reported correction of error
Revenue from Operations (Construction Contract Revenue) 1,75,218.32 253.12 1,75,471.44
Change in inventory of Work in Progress (235.66) 235.66 -
Profit before tax 17,929.65 17.46 17,947.11
Tax expense 6,203.08 6.10 6,209.18
Profit after tax 11,726.57 11.36 11,737.93
Impact on EPS (Increase/(Decrease) (Basic & Diluted) 17.506 0.017 17.523

It has no impact on previously reported cash flows from operating, investing and financing activities.

Annual Report 2019-20 137

Notes to the financial statements for the year ended 31st March, 2020 (Contd.)

B. The amount of work done but pending acknowledgment by contractee was recognised as “Work-in-progress” (disclosed under
“Inventories”) and valued at cost until year 2017-18 by the Company for construction contracts. Under Ind AS 115, the same is treated as
“Unbilled Revenue” (disclosed under “Other Current Assets”) which is valued at the contracted rates amounting to `7,872.37 Lakhs as at 31st
March, 2019 (April 1, 2018 : `7,619.25 Lakhs) and thereby it includes profit element of `453.55 Lakhs as at 31st March, 2019) (April 1,
2018 : `436.09 Lakhs). This has resulted in increase in revenue for the year March 2019 by `253.12 Lakhs which otherwise would have
been disclosed as changes in work in progress. The cumulative effect of the above adjustment on the year 2018-19 profit is `11.36 Lakhs
(Net of Tax of `6.10 Lakhs) and on the opening balance of retained earnings upto 31st March, 2018 is `283.70 Lakhs (Net of Tax of `152.39
Lakhs).
The cumulative impact of Ind AS 115 during the year 2018-19 has resulted in increase of `0.02 to the Earning per shares of the Company.

56 Estimation of uncertainties relating to the global health pandemic from COVID-19 (COVID-19):
The COVID-19 pandemic is an evolving human tragedy declared a global pandemic by the World Health Organisation with adverse impact on
economy and business. Supply Chain disruptions in India as a result of the outbreak started with restrictions on movement of goods, closure of
borders etc., in several states followed by a nationwide lockdown from the 25th of March 2020 announced by the Indian government, to stem
the spread of COVID-19. Due to this, the operations of the Company’s at all locations got temporarily disrupted. In light of these circumstances,
the Company has considered the possible effects that may result from COVID-19 on the carrying amounts of financials assets,inventory,
receivables, property plant and equipment, Intangibles, Investment Property etc., as well as liabilities accrued. In developing the assumptions
relating to the possible future uncertainties in the economic conditions because of this pandemic, the Company has used internal and external
information such as financial strength of partners, investment profile, future volume estimates from the business etc. Having reviewed the
underlying data and based on current estimates the Company expects the carrying amount of these assets will be recovered and there is no
significant impact on liabilities accrued. The impact of COVID-19 on the Company’s financial statements may differ from that estimated as at
the date of approval of these financial statements and the Company will continue to closely monitor any material changes to future economic
conditions.

57 There are no significant subsequent events that would require adjustments or disclosures in the financial
statements as on the balance sheet date.

58 The figures for the previous year have been regrouped and / or reclassified wherever necessary to conform
with the current year presentation.

As per our report of even date annexed For and on behalf of the Board of Directors
For AMOD AGRAWAL & ASSOCIATES BIKRAMJIT AHLUWALIA SHOBHIT UPPAL
ICAI Firm Registration No. 005780N Chairman & Managing Director (Chief Executive Officer) Dy. Managing Director
Chartered Accountants DIN 00304947 DIN 00305264
SMITA GUPTA VIPIN KUMAR TIWARI SATBEER SINGH
Partner G.M. (Corporate) & Company Secretary Chief Financial Officer
Membership No. 087061 ACS. 10837 PAN : ARLPS6573L
Place : New Delhi
Date : 30-06-2020

138 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Independent Auditor’s Report

To The Members of
Ahluwalia Contracts (India) Limited

Report on the Audit of Consolidated Financial Statements

Opinion
We have audited the accompanying consolidated financial statements of Ahluwalia Contracts (India) Limited (‘the Holding Company’) and its
subsidiaries(collectively referred as “the Group”), which comprise the Consolidated Balance Sheet as at March 31, 2020, the Consolidated Statement
of Profit and Loss (including other comprehensive income), the consolidated Statement of Cash Flows and the Consolidated Statement of Changes in
Equity for the year ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred
to as the consolidated 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 report of other
auditors on separate financial statements as it was audited by other auditors, the aforesaid consolidated financial statements give the information
required by the Companies Act,2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Companies( Indian
Accounting Standards) Rules, 2015, as amended, (“IND AS”) and other accounting principles generally accepted in India, of the state of affairs of
the Group as at March 31, 2020, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the consolidated financial statements in accordance with the Standards on Auditing (SAs) specified under section
143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit
of the Financial Statements section of our report. We are independent of the Group in accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India(ICAI) together with the ethical requirements that are relevant to our audit of the consolidated financial statements
under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion on the consolidated 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 financial statements
of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key
audit matters to be communicated in our report.

S. No. Key Audit Matter Auditor’s Response

1 Revenue recognition for long term construction contracts: Our audit procedures include the following:
The Group’s significant portion of business is undertaken through • Reading the group’s revenue recognition accounting policies
long term construction contracts. Revenue from these contracts is and assessing compliance with the policies in terms of Ind AS
recognised over a period of time in accordance with the requirements 115.
of Ind AS 115, Revenue from Contracts with Customers. Due to • We performed test of controls over revenue recognition with
the nature of the contracts, revenue recognition involves usage specific focus on determination of progress of completion and
of percentage of completion method which is determined based recording of costs incurred.
on output method such as surveys of performance completed to • We performed tests of details, on a sample basis, and read the
date, appraisal of results achieved, milestones reached, units underlying customer contracts and its amendment , if any ,
produced or units delivered which involves significant judgements, key contract terms and milestones etc. for verifying estimation
identification of contractual obligations and the Group’s rights to of contract revenue and cost and /or any change in such
receive payments for performance completed till date, changes in estimation.
scope and consequential revised contract price and recognition of • We reviewed the management’s evaluation process to
the liability for loss making contracts. (Note No. 2.3) recognise revenue over a period of time, status of completion
for projects and total cost estimates.
• We tested contracts with exceptions including contracts with
low or negative margins, contracts with significant changes
in planned cost estimates, contracts with significant contract
assets and liabilities, and significant overdue net receivable
positions for contracts and tested these exceptions with its
correlation with the underlying contracts, documents for the
triggers during the period.
• We tested that the contractual positions and revenue for the
year are presented and disclosed in compliance of Ind AS 115
in the Consolidated Ind AS financial statements.

Annual Report 2019-20 139

Independent Auditor’s Report (Contd.)

2. Trade Receivables and contract assets Our Audit procedures amongst other included the following:
Trade receivables and contract assets amounting to • We understood and tested on a sample basis the design
` 597,26,46,245 and ` 2,94,83,16,837 respectively represent and operating effectiveness of management control over the
approximately 50.69 % of the total assets of the Group as at recognition and the recoverability of the trade receivables and
March 31, 2020. In assessing the recoverability of the aforesaid contract assets.
balance management’s judgement involves consideration of aging • We performed test of details and tested relevant contracts,
status, evaluation of litigations and the likelihood of collection documents and subsequent settlements for material trade
based on the terms of the contract. Management estimation is receivable balances and amounts included in contract assets
required in the measurement of work completed during the period that are due on performance of future obligations.
for recognition of unbilled revenue. We considered this as key • We tested the aging of trade receivables at year end.
audit matter due to the materiality of the amounts and significant • We performed test of details and tested relevant contracts
estimates and judgements as stated above. and documents with specific focus on measurement of work
completed during the period 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 and legal advice
obtained by the management on litigations from legal experts.
• We assessed the allowance for impairment made by
management.

3 Disputed Indirect Tax and other Contingent Liabilities Our audit procedures amongst others included the following:
The Group is subject to assessments by tax authorities on various • Obtained list of indirect tax litigations as at March 31, 2020
indirect tax matters resulting into litigations/disputes (refer note from management.
40(i)(a) to the Consolidated Ind AS financial Statements). The tax • We analysed the completed assessments for pending cases of
matters involve significant amounts which are at various stages similar nature.
and the proceedings take significant time to resolve. Management
• Discussed the matters with the management to understand the
exercises significant judgement in assessing the financial impact of
possible outcome of these disputes.
tax matters due to the complexity of the cases and involvement of
various tax authorities. Accordingly, we have identified this as a key • We have also considered legal precedence and other rulings
matter. in evaluating management position on these uncertain tax
litigations.
• Obtained experts opinion in major cases to review the
management’s assessment of the possible outcome of the
disputes relating to indirect tax and other litigation.
• Assessed contingent liability disclosure in note 40(i)(a) to the
accompanying consolidated Ind AS financial statements.

4 Accounting for leases as discussed in note no. 2.11 of As part of our audit procedures we assessed the assumptions
Consolidated financial statements, the Group has adopted Ind AS contained within the calculations including growth assumptions
116 Leases, in current financial year. The application on transition & discount rates. In addition, we have examined fair value
to this standard is complex and is in an area of focus in our audit. certificate from independent valuer who holds relevant professional
Ind AS 116 introduces a new lease accounting model, wherein qualification and has relevant valuation experience to evaluate
lessees are required to recognise a right-of-use (ROU) asset and a whether any change was required to the management position in
lease liability arising from a lease on the balance sheet. assessing fair value of the investment property.
The lease liabilities are initially measured by discounting future • Assessed the group’s evolution on the identification of leases
lease payments during the lease term as per the contract/ based on the contractual agreements and our knowledge of the
arrangement. Adoption of the standard involves significant business;
judgements and estimates including, determination of the discount
rates and the lease term. • Assessed to evaluate the reasonableness of the discount rates
Additionally, the standard mandates detailed disclosures in respect applied in determining the lease liabilities;
of transition. Refer Note 2.11 and 45 of the Consolidated financial • Upon transition as at 1 April 2019:
statements. Evaluated the method or transition and related adjustments:
The determination of the fair value of investment property &
Tested completeness of the lease data by reconciling the group’s
impairment provision requires the use of estimates such as future
lease commitments to data used in computing ROU assets and
cash flows from the assets (such as lettings, future revenue
the lease liabilities.
streams and the overall repair and condition of the property and
property operating expenses) and discount rates applicable to • On a sample basis , we performed the following procedures:
those assets. Assessed the key terms and conditions of each lease with the
The assessment of the recoverable amount requires significant underlying lease contracts, and
judgment, in particular relating to estimated case flow projections  valuated computation of lease liabilities and challenged the key
E
and discount rate. Therefore this is considered to be a key audit estimates such as discount rates and the lease term.
matter.
• Assessed and tested the presentation and disclosures relating to
Ind AS 116 including, disclosures relating to transition.

140 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Independent Auditor’s Report (Contd.)

Other Information when it exists. Misstatements can arise from fraud or error and are
The Holding Company’s Board of Directors is responsible for the considered material if, individually or in the aggregate, they could
other information. The other information comprises the information reasonably be expected to influence the economic decisions of users
included in the Management Discussion and Analysis, Board’s Report taken on the basis of these consolidated financial statements.
including Annexures to Board’s Report, Business Responsibility As part of an audit in accordance with SAs, we exercise professional
Report, Corporate Governance and Shareholder’s Information, but judgment and maintain professional skepticism throughout the audit.
does not include the consolidated financial statements and our We also:
auditor’s report thereon. The above-mentioned report is expected to • Identify and assess the risks of material misstatement of the
be made available to us after the date of this auditor’s report. consolidated financial statements, whether due to fraud or error,
Our opinion on the consolidated financial statements does not cover design and perform audit procedures responsive to those risks,
the other information and we will not express any form of assurance and obtain audit evidence that is sufficient and appropriate
conclusion thereon. to provide a basis for our opinion. The risk of not detecting a
In connection with our audit of the consolidated financial statements, material misstatement resulting from fraud is higher than for
our responsibility is to read the other information identified above one resulting from error, as fraud may involve collusion, forgery,
when it becomes available and, in doing so, consider whether the intentional omissions, misrepresentations, or the override of
other information is materially inconsistent with the consolidated internal control.
financial statements or our knowledge obtained in the audit, or • Obtain an understanding of internal financial controls relevant
otherwise appears to be materially misstated. to the audit in order to design audit procedures that are
When we read the Annual Report, if we conclude that there is a appropriate in the circumstances. Under section 143(3)(i) of
material misstatement therein, we are required to communicate the the Act, we are also responsible for expressing our opinion on
matter to those charged with governance whether the Group has adequate internal financial controls
system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used
Management’s Responsibility for the Consolidated
and the reasonableness of accounting estimates and related
Financial Statements disclosures made by management.
The Holding Company’s Board of Directors is responsible for the • Conclude on the appropriateness of management’s use of the
matters stated in Section 134(5) of the Companies Act, 2013 (‘the going concern basis of accounting and, based on the audit
Act’) with respect to the preparation of these consolidated financial evidence obtained, whether a material uncertainty exists
statements to give a true and fair view of the financial position, related to events or conditions that may cast significant doubt
financial performance (including other comprehensive income), on the Group’s ability to continue as a going concern. If we
cash flows and changes in equity of the Group in accordance with conclude that a material uncertainty exists, we are required to
the accounting principles generally accepted in India, including the draw attention in our auditor’s report to the related disclosures
Indian Accounting Standards specified in the Companies (Indian in the consolidated financial statements or, if such disclosures
Accounting Standards) Rules, 2015 (as amended) under Section are inadequate, to modify our opinion. Our conclusions are
133 of the Act. This responsibility also includes maintenance of based on the audit evidence obtained up to the date of our
adequate accounting records in accordance with the provisions of the auditor’s report. However, future events or conditions may
Act for safeguarding of the assets of the Group and for preventing and cause the Group to cease to continue as a going concern.
detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates • Evaluate the overall presentation, structure and content of the
that are reasonable and prudent; and design, implementation and consolidated financial statements, including the disclosures,
maintenance of adequate internal financial controls, that were and whether the consolidated financial statements represent
operating effectively for ensuring the accuracy and completeness of the underlying transactions and events in a manner that
the accounting records, relevant to the preparation and presentation achieves fair presentation.
of the consolidated financial statements that give a true and fair view • Obtain sufficient audit evidence regarding the financial
and are free from material misstatement, whether due to fraud or information of the entity to express an opinion on the
error. consolidated financial statements. We are the responsible for
In preparing the consolidated financial statements, management is direction, supervision and performance of the audit of financial
responsible for assessing the Group’s ability to continue as a going statement of such entities included in consolidated financial
concern, disclosing, as applicable, matters related to going concern statements of which we are the independent auditor. For the
and using the going concern basis of accounting unless management entities included in the consolidated financial statements,
either intends to liquidate the Group or to cease operations, or has no which have been audited by other auditors, such other auditors
realistic alternative but to do so. responsible for the direction, supervision and performance of
the audit carried out by them. We remain solely responsible for
The respective Board of Directors of the Companies included in the our audit opinion.
Group are responsible for overseeing the financial reporting process
of the Group. Materiality is the magnitude of misstatements in the consolidated
financial statements that, individually or in aggregate, makes it
probable that the economic decisions of a reasonably knowledgeable
Auditor’s Responsibility for the Audit of the user of the financial statements may be influenced. We consider
Consolidated Financial Statements quantitative materiality and qualitative factors in (i) planning the
Our objectives are to obtain reasonable assurance about whether the scope of our audit work and in evaluating the results of our work;
consolidated financial statements as a whole are free from material and (ii) to evaluate the effect of any identified misstatements in the
misstatement, whether due to fraud or error, and to issue an auditor’s financial statements.
report that includes our opinion. Reasonable assurance is a high We communicate with those charged with governance regarding,
level of assurance, but is not a guarantee that an audit conducted among other matters, the planned scope and timing of the audit and
in accordance with SAs will always detect a material misstatement significant audit findings, including any significant deficiencies in

Annual Report 2019-20 141

Independent Auditor’s Report (Contd.)

internal control that we identify during our audit. e) On the basis of the written representations received from
We also provide those charged with governance with a statement the directors of the Holding Company and taken on record
that we have complied with relevant ethical requirements regarding by the Board of Directors of the Holding Company, none
independence, and to communicate with them all relationships of the directors is disqualified as on March 31, 2020
and other matters that may reasonably be thought to bear on our from being appointed as a director in terms of Section
independence, and where applicable, related safeguards. 164 (2) of the Act.
From the matters communicated with those charged with governance, f) With respect to the adequacy of the internal financial
we determine those matters that were of most significance in the audit controls over financial reporting and the operating
of the consolidated financial statements of the current period and are effectiveness of such controls, refer to our separate Report
therefore the key audit matters. We describe these matters in our in “Annexure A” which is based on the auditor’s reports
auditor’s report unless law or regulation precludes public disclosure of the Holding Company and its subsidiary companies
about the matter or when, in extremely rare circumstances, we incorporated in India. Our report express an unmodified
determine that a matter should not be communicated in our report opinion on the adequacy and operating effectiveness of
because the adverse consequences of doing so would reasonably the internal financial control over financial reporting of
be expected to outweigh the public interest benefits of such those companies, for reasons stated therein.
communication. g) With respect to the other matters to be included in the
Auditor’s Report in accordance with the requirements of
section 197(16) of the Act, as amended:
Other Matters
In our opinion and to the best of our information
We did not audit the financial statements of Five wholly owned
and according to the explanations given to us, the
subsidiaries namely Dipesh Mining Private Ltd, Jiwanjyoti Traders
remuneration paid by the Group to its directors during the
Pvt Ltd, Paramount Dealcomm Pvt ltd, PremSagar Merchants Pvt Ltd
year is in accordance with the provisions of section 197
& Splendor Distributors Pvt Ltd whose financial statement reflects
of the Act.
total assets of ` 403.04lakhs, total revenue of ` 0.00 lakhs, total
comprehensive loss of ` 4.43 lakhs& cash flows from operating h) With respect to the other matters to be included in
activities of Rs (2.01) lakhs for the year ended on that date. These the Auditor’s Report in accordance with Rule 11 of
financial statements has been audited by other auditors whose the Companies (Audit and Auditors) Rules, 2014, as
reports has been furnished to us by the Management and our opinion amended in our opinion and to the best of our information
on the consolidated financial statement, in so far as it relates to the and according to the explanations given to us:
amounts and disclosures included in respect of the subsidiaries, and i. The Consolidated Financial Statements disclose the
our report in terms of sub-sections (3) and (11) of Section 143 of the impact, if any, of pending litigations as at March
Act, in so far as it relates to the aforesaid subsidiaries, is based solely 31, 2020, on the consolidated financial position of
on the report of the other auditors. Our opinion on the consolidated the Group - Refer Note 41(i)(a) to the consolidated
financial statements, and our report on Other Legal and Regulatory financial statements.
Requirements below, is not modified in respect of the above matters
ii. The Group has made provision as at March 31,
with respect to our reliance on the work done and the reports of the
2020, as required under the applicable law or
other auditors.
accounting standards, for material foreseeable
Our opinion on the consolidated financial statements & our report on losses, if any, on long-term contracts. The Group
other Legal and Regulatory Requirements below is not modified in has no derivative contracts.
respect of the above matters with respect to our reliance on the work
iii. There has been no delay in transferring amounts,
done and other reports of other auditors.
required to be transferred, to the Investor Education
and Protection Fund by the Holding Company.
Report on Other Legal and Regulatory Requirements There were no amounts which were required to be
1. As required by Section 143(3) of the Act, based on our audit transferred to the Investor Education and Protection
we report that: Fund by the subsidiary Companies.
a) We have sought and obtained all the information and
explanations which to the best of our knowledge and For Amod Agrawal& Associates
belief were necessary for the purposes of our audit of the
aforesaid consolidated financial statements. Chartered Accountants
b) In our opinion, proper books of account as required by Firm Registration No.005780N
law to preparation of the aforesaid consolidated financial
statements have been kept so far as it appears from our
examination of those books. SMITA GUPTA
c) The Consolidated Balance Sheet, the Consolidated Partner
Statement of Profit and Loss (including Other
Comprehensive Income), the Consolidated Statement of Place: New Delhi Membership No.- 087061
Changes in Equity and the Consolidated Statement of
Dated: 30-06-2020 UDIN : 20087061AAAAAC9469
Cash Flow dealt with by this Report are in agreement
with the relevant books of account for the purpose of
preparation of the consolidated financial statements.
d) In our opinion, the aforesaid consolidated financial
statements comply with the Ind AS specified under
Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.

142 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Annexure-A to the Independent Auditor’s Report

Report on the Internal Financial Controls under Clause (i) of reporting is a process designed to provide reasonable assurance
Sub-section 3 of Section 143 of the Companies Act, 2013 regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with
(“the Act”)
generally accepted accounting principles. A Holding Company’s
In conjunction with our audit of the consolidated financial statements internal financial control over financial reporting includes those
of the Company as of and for the year ended 31 March 2020, we policies and procedures that (1) pertain to the maintenance of
have audited the internal financial controls over financial reporting of records that, in reasonable detail, accurately and fairly reflect the
Ahluwalia Contracts (India) Limited (“the Holding Company”) and its transactions and dispositions of the assets of the Holding Company;
subsidiary companies which are companies incorporated in India, as (2) provide reasonable assurance that transactions are recorded as
of that date. necessary to permit preparation of financial statements in accordance
Management’s Responsibility for Internal Financial Controls with generally accepted accounting principles, and that receipts
and expenditures of the Holding Company are being made only in
The Respective Board of Directors of the Holding Company and its
accordance with authorisations of management and directors of the
subsidiary companies, which are companies incorporated in India,
Holding Company; and (3) provide reasonable assurance regarding
are responsible for establishing and maintaining internal financial
prevention or timely detection of unauthorised acquisition, use,
controls based on the internal control over financial reporting criteria
or disposition of the Holding Company’s assets that could have a
established by the respective Companies considering the essential
material effect on the financial statements.
components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls over Financial Reporting issued Inherent Limitations of Internal Financial Controls Over
by the Institute of Chartered Accountants of India (“ICAI’). These
Financial Reporting
responsibilities include the design, implementation and maintenance
of adequate internal financial controls that were operating effectively Because of the inherent limitations of internal financial controls over
for ensuring the orderly and efficient conduct of its business, including financial reporting, including the possibility of collusion or improper
adherence to respective Company’s policies, the safeguarding of management override of controls, material misstatements due to
its assets, the prevention and detection of frauds and errors, the error or fraud may occur and not be detected. Also, projections of any
accuracy and completeness of the accounting records, and the timely evaluation of the internal financial controls over financial reporting to
preparation of reliable financial information, as required under the future periods are subject to the risk that the internal financial control
Companies Act, 2013. over financial reporting may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or
Auditors’ Responsibility procedures may deteriorate.
Our responsibility is to express an opinion on the Holding Company’s
Opinion
and its subsidiary companies, which are companies incorporated in
India, internal financial controls with reference to financial statements In our opinion and to the best of our information and according to
based on our audit. We conducted our audit in accordance with the the explanations given to us, the Holding Company and its subsidiary
Guidance Note on Audit of Internal Financial Controls over Financial companies, which are companies incorporated in India, have, in all
Reporting (the “Guidance Note”) issued by ICAI and the Standards on material respects, an adequate internal financial controls system over
Auditing, issued by ICAI and deemed to be prescribed under section financial reporting and such internal financial controls over financial
143(10) of the Companies Act, 2013, to the extent applicable to reporting were operating effectively as at 31 March 2020, based
an audit of internal financial controls, both issued by the Institute of on the internal control over financial reporting criteria established
Chartered Accountants of India. Those Standards and the Guidance by the respective Companies considering the essential components
Note require that we comply with ethical requirements and plan and of internal control stated in the Guidance Note on Audit of Internal
perform the audit to obtain reasonable assurance about whether Financial Controls Over Financial Reporting issued by the ICAI.
adequate internal financial controls over financial reporting was Other Matters
established and maintained and if such controls operated effectively
in all material respects. Our aforesaid report under Section 143(3)(i) of the Act on the
adequacy and operating effectiveness of the internal financial controls
Our audit involves performing procedures to obtain audit evidence over financial reporting insofar as it relates to 5 subsidiary companies,
about the adequacy of the internal financial controls system over which are companies incorporated in India, is based solely on the
financial reporting and their operating effectiveness. Our audit of corresponding reports of the auditors of such companies incorporated
internal financial controls over financial reporting included obtaining in India.
an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and Our opinion is not modified in respect of the above matter.
evaluating the design and operating effectiveness of internal control
based on the assessed risk. The procedures selected depend on the
For Amod Agrawal& Associates
auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or Chartered Accountants
error.
Firm Registration No.005780N
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’ is sufficient and appropriate to SMITA GUPTA
provide a basis for our audit opinion on the Holding Company’s and
its subsidiaries companies, which are incorporated in India, internal Partner
financial controls system over financial reporting.
Place: New Delhi Membership No.- 087061
Meaning of Internal Financial Controls over Financial Dated: 30-06-2020 UDIN : 20087061AAAAAC9469
Reporting
A Holding Company’s internal financial control over financial

Annual Report 2019-20 143

Consolidated Balance Sheet as at 31st March, 2020
(` in Lacs)
Particulars Note As at As at
No. 31.03.2020 31.03.2019
(Restated)
ASSETS
Non-current assets
(a) Property, plant and equipment 3 10,411.17 9,920.24
(b) Capital work-in-progress 3 20.74 43.57
(c) Right of Use Assets 4 331.50 -
(d) Investment property 5 11,628.15 8,994.09
(e) Goodwill 6 138.00 138.00
(f) Other Intangible assets 7 98.88 95.95
(f) Financial assets
(i) Loans 8 687.05 675.44
(ii) Trade Receivables 9 10,392.18 7,717.50
(iii) Other financial assets 10 2,464.41 1,301.64
(g) Deferred tax assets (net)
(h) Deferred tax assets (net) 11 2,357.77 2,832.72
(i) Non-current tax assets (Net) 12 2,015.55 175.19
(j) Other non-current assets 13 6,801.63 3,493.64
Total Non-Current Assets 47,347.03 35,387.99
Current Assets
(a) Inventories 14 22,080.11 14,811.10
(b) Financial Assets
(i) Trade receivables 15 49,334.28 51,781.75
(ii) Cash and cash equivalents 16 16,507.44 13,768.96
(iii) Bank balances other than cash & cash equivalents mentioned above 17 7,886.53 7,156.88
(iv) Loans 18 113.78 53.07
(v) Other financial assets 19 1,120.90 1,767.40
(c) Other current assets 20 31,521.05 23,818.14
Total Current Assets 1,28,564.08 1,13,157.30
TOTAL ASSETS 1,75,911.11 1,48,545.29
EQUITY AND LIABILITIES
Equity
(a) Equity share capital 21 1,339.75 1,339.75
(b) Other Equity 22 78,943.23 72,384.11
Total Equity 80,282.98 73,723.86
LIABILITIES:
Non-Current Liabilities
(a) Financial Liabilities
(i) Borrowings 23 54.59 62.92
(ii) Lease Liabilities 4,186.04 -
(iii) Other financial liabilities 24 312.01 1,790.57
(b) Provisions 25 649.28 469.41
(c) Other non-current liabilities 26 6,801.27 4,473.79
Total Non-Current Liabilities 12,003.19 6,796.68
Current Liabilities
(a) Financial Liabilities
(i) Borrowings 27 4,650.28 6,023.79
(ii) Lease Liabilities 182.50 -
(iii) Trade payables 28
- Total outstanding dues of Micro Enterprises and Small Enterprises 499.94 436.67
- Total outstanding dues of creditors other than Micro Enterprises and Small Enterprises 51,809.79 42,415.82
(iv) Other financial liabilities 29 4,298.59 3,715.36
(b) Other current liabilities 30 21,906.24 15,188.83
(c) Provisions 31 277.60 244.28
Total Current Liabilities 83,624.94 68,024.75
TOTAL EQUITY AND LIABILITIES 1,75,911.11 1,48,545.29
Summary of Significant Accounting Policies 2
The accompanying notes are an integral part of the financial statements.

As per our report of even date annexed For and on behalf of the Board of Directors
For AMOD AGRAWAL & ASSOCIATES BIKRAMJIT AHLUWALIA SHOBHIT UPPAL
ICAI Firm Registration No. 005780N Chairman & Managing Director (Chief Executive Officer) Dy. Managing Director
Chartered Accountants DIN 00304947 DIN 00305264
SMITA GUPTA VIPIN KUMAR TIWARI SATBEER SINGH
Partner G.M. (Corporate) & Company Secretary Chief Financial Officer
Membership No. 087061 ACS. 10837 PAN : ARLPS6573L
Place : New Delhi
Date : 30-06-2020

144 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Consolidated Statement of Profit and Loss for the year ended 31st
March, 2020
(` in Lacs)
Particulars Notes For Year Ended 31-03-2020 For Year Ended 31-03-2019
(Restated)
INCOME
Revenue from operations 32 1,88,492.69 1,75,471.44
Other Income 33 1,044.30 977.29
Total Income (A) 1,89,536.99 1,76,448.73
EXPENSES
Cost of Material Consumed 34 90,467.66 80,065.85
Construction Expenses 35 59,908.88 54,936.58
Employee benefit expenses 36 15,431.84 14,328.07
Finance costs 37 3,499.77 1,922.40
Depreciation and Amortisation expense 38 3,187.15 2,755.79
Other expenses 39 7,387.16 4,499.31
Total Expenses (B) 1,79,882.46 1,58,508.00
PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX (A-B) 9,654.53 17,940.73
Exceptional Items - -
PROFIT BEFORE TAX 9,654.53 17,940.73
Tax Expenses :
Current Tax 11 2,862.26 6,924.47
Deferred Tax charge/(credit) 11 353.12 (715.29)
Profit After Tax 6,439.15 11,731.55
OTHER COMPREHENSIVE INCOME/(LOSS)
A (i) Items to be reclassified to profit or loss - -
(ii) Income tax relating to items to be reclassified to profit - -
or loss

B (i) Items not to be reclassified to profit or loss

- Re-measurement of defined benefit plans 2.35 (281.49)
- Equity instruments through Other Comprehensive - -
Income
(ii) Income tax relating to items not to be reclassified to 11 (0.59) 98.36
profit or loss
Other Comprehensive Income (Net of Taxes) 1.76 (183.12)
TOTAL COMPREHENSIVE INCOME 6,440.91 11,548.43
Earning per equity share (Basic in `) 9.61 17.51
Earning per equity share (Diluted in `) 9.61 17.51
(Face Value ` 2/- each)
Summary of Significant Accounting Policies 2
The accompanying notes are an integral part of the financial statements.

As per our report of even date annexed For and on behalf of the Board of Directors
For AMOD AGRAWAL & ASSOCIATES BIKRAMJIT AHLUWALIA SHOBHIT UPPAL
ICAI Firm Registration No. 005780N Chairman & Managing Director (Chief Executive Officer) Dy. Managing Director
Chartered Accountants DIN 00304947 DIN 00305264
SMITA GUPTA VIPIN KUMAR TIWARI SATBEER SINGH
Partner G.M. (Corporate) & Company Secretary Chief Financial Officer
Membership No. 087061 ACS. 10837 PAN : ARLPS6573L
Place : New Delhi
Date : 30-06-2020

Annual Report 2019-20 145

Consolidated Statement of Cash Flow for the year ended 31st March,
2020
(` in Lacs)
31.03.2020 31.03.2019
(Restated)
A. Cash Flow from Operating Activities
Net Profit/(Loss) before Tax 9,654.53 17,940.73
Adjustment for :
Depreciation & amortisation expense 3,187.15 2,755.79
Interest Income (986.56) (789.28)
Interest Expense 2,311.58 1,017.94
Interest on Income Tax 4.74 47.92
Doubtful advances/debts written off 4,231.70 1,339.74
Liabilities written back (51.57) (166.71)
(Gain) / Loss on Sale of Property, Plant and Equipment (net) (6.17) (17.37)
Operating Profit before working Capital Changes : 18,345.40 22,128.77
Movements in Working Capital :
(Increase)/decrease in Trade Receivables (4,360.15) (9,258.66)
(Increase)/decrease in Inventories (7,286.54) (3,316.02)
Increase/(decrease) in Trade payables, Financial and Other liabilities and 19,431.72 9,373.44
Provisions
(Increase)/decrease in Other financial assets and Other assets (10,459.58) (2,441.70)
Cash generated from Operations : 15,670.85 16,485.82
Direct Taxes Paid (Net of refunds) (4,707.35) (7,912.08)
Net Cash flow from/(used in) Operating Activities (A) 10,963.49 8,573.74
B. Cash Flow from Investing Activities
Purchase of property, plant and equipment including capital work-in-progress (3,675.18) (2,980.87)
Movement in Fixed Deposits with Banks (1,860.24) (2,022.30)
Movement in Unpaid Dividend Account - 0.37
Proceeds from sale of property, plant and equipment 50.39 51.51
Interest Received 896.17 690.19
Net Cash flow from/(used in) Investing Activities (B) (4,588.87) (4,261.10)
C. Cash Flow from Financing Activities
Proceeds from/ (repayment of) Long term borrowings 0.32 (4.44)
Proceeds from/ (repayment of) Short term borrowings (1,373.51) 3,135.21
Dividend paid (200.96) (200.96)
Dividend Distribution Tax paid (41.31) (41.31)
Payment of Lease Liabilities (154.24) -
Interest Paid (1,866.44) (978.56)
Net Cash flow from/(used) in Financing Activities (C) (3,636.14) 1,909.94
Net Increase/(Decrease) in Cash & Cash Equivalents (A+B+C) 2,738.48 6,222.58
Cash & Cash equivalents at the beginning of the year 13,768.96 7,546.38
Cash & Cash equivalents at the end of the year 16,507.44 13,768.96
Components of Cash and Cash Equivalents
Cash in Hand 63.33 48.30
Deposits with original maturity of less than 3 months 670.69 -
Balance with Scheduled Banks :
Current Accounts 15,773.42 13,720.66
16,507.44 13,768.96
Add:- Term Deposits pledged with Scheduled banks not considered as cash and 10,034.27 8,174.03
cash equivalents (refer note 17)
Add :- Unpaid Dividend Accounts (refer note 17) 0.32 0.17
Less:- Fixed Deposits having remaining maturity period more than 12 months 2,148.06 1,017.32
(refer note 10)
Cash and Bank Balances 24,393.97 20,925.84
The accompanying notes are an integral part of the financial statements.

As per our report of even date annexed For and on behalf of the Board of Directors
For AMOD AGRAWAL & ASSOCIATES BIKRAMJIT AHLUWALIA SHOBHIT UPPAL
ICAI Firm Registration No. 005780N Chairman & Managing Director (Chief Executive Officer) Dy. Managing Director
Chartered Accountants DIN 00304947 DIN 00305264
SMITA GUPTA VIPIN KUMAR TIWARI SATBEER SINGH
Partner G.M. (Corporate) & Company Secretary Chief Financial Officer
Membership No. 087061 ACS. 10837 PAN : ARLPS6573L
Place : New Delhi
Date : 30-06-2020

146 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Consolidated Statement of Changes in Equity for the year ended

31st March, 2020

A. Equity Share Capital

Equity shares of `2/- each issued, subscribed and fully paid (refer note 21) Number of shares Amount (` in Lakhs)
As at 01.04.2018 6,69,87,560 1,339.75
Increase/(decrease) during the year - -
As at 31.03.2019 6,69,87,560 1,339.75
Increase/(decrease) during the year - -
As at 31.03.2020 6,69,87,560 1,339.75

B. Other Equity
For the Year Ended 31st March 2020 and Year Ended 31st March 2019
(` in Lacs)

Reserves and Surplus Items of Other Total

Comprehensive Income
Securities General Retained Equity Instruments
Premium Reserve Earnings through Other
(Restated) Comprehensive Income
Balance as at 01.04.2018 5,061.00 3,272.97 52,437.93 22.35 60,794.25
Impact of Ind AS -115 (effective from 283.70 283.70
01.04.2018)
Balance as at 01.04.2018 (Restated) 5,061.00 3,272.97 52,721.63 22.35 61,077.95
Profit for the year ended - - 11,731.55 - 11,731.55
Less :- Cash Dividend (Final) (200.96) (200.96)
Less :- Dividend Distribution Tax (41.31) (41.31)
Other Comprehensive Income :
Re-measurement of defined benefit plans (net (183.12) (183.12)
of tax)
Total Comprehensive Income for the year - - 11,306.16 - 11,306.16
Balance as at 31.03.2019 5,061.00 3,272.97 64,027.79 22.35 72,384.11
Impact on account of adoption of Ind AS-116 360.49 360.49
(Refer note 45)
Restated Balance as at 01.04.2019 5,061.00 3,272.97 64,388.28 22.35 72,744.60
Profit for the year ended - - 6,439.15 - 6,439.15
Less :- Cash Dividend (Final) (200.96) (200.96)
Less :- Dividend Distribution Tax (41.31) (41.31)
Other Comprehensive Income :
Re-measurement of defined benefit plans (net - - 1.76 - 1.76
of tax)
Total Comprehensive Income for the year - - 6,198.64 - 6,198.64
Balance as at 31.03.2020 5,061.00 3,272.97 70,586.91 22.35 78,943.23

i) Refer note No. 22 for nature and purpose of reserves

Summary of Significant Accounting Policies 2
The accompanying notes are an integral part of the financial statements.

As per our report of even date annexed For and on behalf of the Board of Directors
For AMOD AGRAWAL & ASSOCIATES BIKRAMJIT AHLUWALIA SHOBHIT UPPAL
ICAI Firm Registration No. 005780N Chairman & Managing Director (Chief Executive Officer) Dy. Managing Director
Chartered Accountants DIN 00304947 DIN 00305264
SMITA GUPTA VIPIN KUMAR TIWARI SATBEER SINGH
Partner G.M. (Corporate) & Company Secretary Chief Financial Officer
Membership No. 087061 ACS. 10837 PAN : ARLPS6573L
Place : New Delhi
Date : 30-06-2020

Annual Report 2019-20 147

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020
1. Group information
Ahluwalia Contracts (India) Limited (hereinafter referred to as “the Holding Company”) domiciled in India, having its registered office located
at A-177, Okhla Industrial Area, Phase-I, New Delhi-110020, India together with its subsidiaries (collectively referred to as the ‘Group’) is
primarily engaged in the business of civil construction activities. The Group has also diversified into developing and operating commercial
complex under license arrangement and is also engaged in the real estate trading business. The Holding Company has its primary listings on
BSE Limited, National Stock Exchange of India Limited (NSE) and Calcutta Stock Exchange Ltd.
List of subsidiary companies which are considered in these Consolidated Financial Statements are as under:

S. Name of the Subsidiary Company Country of Percentage of Percentage of

No. Incorporation ownership ownership
interest (%) as on interest (%) as on
31st March, 2020 31st March, 2019
1. Dipesh Mining Pvt. Ltd. India 100 100
2. Jiwan Jyoti Traders Pvt. Ltd. India 100 100
3. Paramount Dealcomm Pvt. Ltd. India 100 100
4. Premsagar Merchants Pvt. Ltd. India 100 100
5. Splendor Distributors Pvt. Ltd. India 100 100
These consolidated financial statements were authorised for issue in accordance with a resolution of the directors passed on 30th June, 2020.

2. Significant accounting policies measurement is based on the presumption that the

The significant accounting policies applied by the Group in the transaction to sell the asset or transfer the liability takes
preparation of its consolidated financial statements are listed place either:
below. Such accounting policies have been applied consistently • In the principal market for the asset or liability, or
to all the periods presented in these consolidated financial • In the absence of a principal market, in the most
statements. advantageous market for the asset or liability
2.1 Basis of preparation The principal or the most advantageous market must be
accessible by the Group. The fair value of an asset or a
a) Statement of compliance with Ind AS: liability is measured using the assumptions that market
These Consolidated Financial Statements are prepared participants would use when pricing the asset or liability,
in accordance with the Indian Accounting Standards assuming that market participants act in their economic
(hereinafter referred to as the ‘Ind AS’) under the historical best interest.
cost convention on the accrual basis except for certain A fair value measurement of a non-financial asset takes
financial instruments which are measured at fair values, into account a market participant’s ability to generate
the provisions of the Companies Act 2013 (“The Act”) economic benefits by using the asset in its highest and
and guidelines issued by the Securities and Exchange best use or by selling it to another market participant that
Board of India (SEBI). The Ind AS are prescribed under would use the asset in its highest and best use.
section 133 of the Companies Act, 2013 read with Rule
3 of the Companies (Indian Accounting Standards) Rules, The Group uses valuation techniques that are appropriate
2015 as amended and other relevant provisions of the in the circumstances and for which sufficient data is
Act. available to measure fair value, maximising the use of
relevant observable inputs and minimising the use of
b) Basis of measurement unobservable inputs.
These consolidated financial statements are prepared Where required/appropriate, external valuers are involved.
under the historical cost convention except for the All financial assets and liabilities for which fair value
following material items those have been measured at is measured or disclosed in the consolidated financial
fair value as required by relevant Ind AS : statements are categorised within the fair value hierarchy
- certain financial assets and liabilities that are established by Ind AS-113, that categorises into three
measured at fair value; levels, the inputs to valuation techniques used to
- defined benefit plans - plan assets measured at fair measure fair value. These are based on the degree to
value; which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair
Also, the fair values of financial instruments measured value measurement in its entirety:
at amortised cost are required to be disclosed in the said
Consolidated financial statements. Level 1 inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that the entity
Historical cost is generally based on the fair value of the can access at the measurement date.
consideration given in exchange for assets.
Level 2 inputs are inputs other than quoted prices
Fair value measurement: included within Level 1 that are observable for the asset
Fair value is the price that would be received on sale of an or liability, either directly(i.e. as prices) or indirectly(i.e.
asset or paid to transfer a liability in an orderly transaction derived from prices).
between market participants at the measurement date Level 3 inputs are unobservable inputs for the asset or
(that is, an exit price). It is a market-based measurement, liability.
not an entity-specific measurement. The fair value

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Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

The fair value hierarchy gives the highest priority to the bargain purchase gain is recognised in other
quoted prices (unadjusted) in active markets for identical comprehensive income (OCI) and accumulated
assets or liabilities (Level 1 inputs) and the lowest priority in equity as capital reserve. However, if there is
to unobservable inputs (Level 3 inputs). no clear evidence of bargain purchase, the entity
For financial assets and liabilities maturing within one recognises the gain directly in equity as capital
year from the Balance Sheet date and which are not reserve, without routing the same through other
carried at fair value, the carrying amount approximates comprehensive income.
fair value due to the short maturity of these instruments. ii) Subsidiaries:
The Group recognises transfers between levels of fair A subsidiary is an entity controlled by the Group.
value hierarchy at the end of reporting period during Control exists when the parent has power over
which change has occurred. the entity, is exposed, or has rights to variable
c) Basis of consolidation returns from its involvement with the entity and
has the ability to affect those returns by using its
i) Business combinations: power over entity. Power is demonstrated through
A business combination is transaction or other existing rights that give the ability to direct relevant
event which requires that the assets acquired activities, those which significantly affect the
and liabilities assumed constitute a business. entity’s returns. Subsidiaries are fully consolidated
Business combinations are accounted for using from the date on which Group obtains control
the acquisition method from the acquisition date, over the subsidiary and ceases when the Group
which is the date on which control is transferred to loses control of the subsidiary. Where necessary,
the Group. The cost of an acquisition is measured adjustments are made to the Consolidated financial
as the aggregate of the consideration transferred, statements of subsidiaries to bring their accounting
which is measured at acquisition date fair value, policies in line with those used by the Group.
and the amount of any non-controlling interests iii) Non-controlling interests:
in the acquiree. The interest of non-controlling
shareholders in the acquiree is initially measured Non-controlling interests at the end of the reporting
at the non-controlling shareholders proportionate period, being the equity in a subsidiary not
share of the acquiree’s identifiable net assets. attributable directly or indirectly to equity holders
Acquisition-related costs are expensed as incurred. of the Company, are presented in the consolidated
statement of financial position and statement of
Goodwill is an asset representing the future changes in equity within equity, separately from
economic benefits arising from other assets equity attributable to the owners of the Company.
acquired in a business combination that are not Non-controlling interests in the results of the
individually identified and separately recognised. Group is presented in the consolidated statement
The Group measures the cost of goodwill at the of profit or loss and other comprehensive income
acquisition date (which is the date on which control as an allocation of the profit or loss and the
is transferred to the Group) as: comprehensive income for the year between non-
1. The fair value of the consideration transferred; controlling interests and owners of the Company.
plus Profit or loss and other comprehensive income
2. The recognised amount of any non-controlling or loss are attributed to the controlling and non-
interests in the acquiree; plus controlling interests in proportion to their ownership
3. If the business combinations is achieved in interests. Total comprehensive income is attributed
stages, the fair value of the existing equity to the controlling and non-controlling interests even
interest in the acquiree; less if this results in the non-controlling interests having
a deficit balance.
4. The net fair value of the identifiable assets
acquired and the liabilities assumed. iv) Changes in non-controlling interests:
Thus, the excess of cost to the Group of its A change in the ownership interest of a subsidiary,
investment in subsidiaries, on the acquisition without a change of control, is accounted for as an
dates over and above the Group’s share of equity equity transaction. Acquisitions of non-controlling
in the subsidiaries, is recognised as ‘Goodwill on interests are accounted for as transactions with
Consolidation’ being an asset in the consolidated owners in their capacity as owners and therefore no
financial statements. The said Goodwill is not goodwill is recognised as a result. Adjustments to
amortised, however, it is tested for impairment at non-controlling interests arising from transactions
each Balance Sheet date and the impairment loss, that do not involve the loss of control are based
if any, is provided for. on a proportionate amount of the net assets of the
If the fair value of the net assets acquired is in subsidiary. Any difference between the Group’s
excess of the aggregate consideration transferred, share of net assets in relation to the acquisition and
the Group re-assesses whether it has correctly the fair value of consideration paid is recognised
identified all of the assets acquired and all of the directly in the Group’s reserves.
liabilities assumed and reviews the procedures
v) Loss of control
used to measure the amounts to be recognised at
the acquisition date. If the reassessment still results Upon the loss of control of a subsidiary, the
in an excess of the fair value of net assets acquired Group derecognises the assets and liabilities of
over the aggregate consideration transferred, then the subsidiary, any non-controlling interests and
the other components of equity related to the

Annual Report 2019-20 149

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

subsidiary. Any surplus or deficit arising on the f) Functional and presentation currency
loss of control is recognised in profit or loss. Items included in the consolidated financial statements of
If the Group retains any interest in the previous the Group are measured using the currency of the primary
subsidiary, then such interest is measured at fair economic environment in which the Group operates (i.e.
value at the date that control is lost. Subsequently, the “functional currency”). The consolidated financial
it is accounted for as an equity accounted investee statements are presented in Indian Rupee, the national
or as an available-for-sale financial asset depending currency of India, which is the functional currency of the
on the level of influence retained. Group.
vi) Transactions eliminated on consolidation: g) Rounding of amounts:
Intra-group balances and transactions, and any All amounts disclosed in the Consolidated financial
unrealised income and expenses arising from intra- statements and notes are in Indian Rupees in Lakhs
group transactions between subsidiaries in the rounded off to two decimal places as permitted by
Group, are eliminated in preparing the consolidated Schedule III to the Companies Act, 2013, unless
financial statements. otherwise stated.
d) Current non-current classification: 2.2 Use of estimates
The Group presents assets and liabilities in the balance The preparation of Consolidated financial statements in
sheet based on current/ non-current classification. An conformity with the recognition and measurement principles
asset is treated as current when it is: of the Ind AS requires management to make judgements,
• Expected to be realised or intended to be sold or estimates and assumptions that affect the application of the
consumed in normal operating cycle accounting policies and the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities
• Held primarily for the purpose of trading
at the date of the Consolidated financial statements, and the
• Expected to be realised within twelve months after reported amounts of revenues, expenses and the results of
the reporting period, or operations during the reporting period. Actual results could
• Cash or cash equivalent unless restricted from differ from those estimates. The estimates and underlying
being exchanged or used to settle a liability for at assumptions are reviewed on an ongoing basis. Such estimates
least twelve months after the reporting period & assumptions are based on management evaluation of relevant
All other assets are classified as non-current. facts & circumstances as on date of Consolidated financial
statements. Revisions to accounting estimates are recognised
A liability is current when: in the period in which the estimate is revised if the revision
• It is expected to be settled in normal operating cycle affects only that period; they are recognised in the period of the
• It is held primarily for the purpose of trading revision and future periods if the revision affects both current
and future periods.
• It is due to be settled within twelve months after the
reporting period, or 2.3 Revenue recognition
• There is no unconditional right to defer the 
Revenue from construction/project related activity is
settlement of the liability for at least twelve months recognised as follows:
after the reporting period Revenue from contracts with customers is recognised when
The Group classifies all other liabilities as non-current. control of the goods or services are transferred to the customer
Deferred tax assets and liabilities are classified as non- at an amount that reflects the consideration to which the Group
current assets and liabilities. expects to be entitled in exchange for those goods or services.
Operating cycle for the business activities of the Group A single performance obligation is identified in the construction
covers the duration of the specific project/contract/ projects that the Group engages in, owing to the high degree
product line/service including the defect liability period, of integration and customisation of the various goods and
wherever applicable and extends up to the realisation services to provide a combined output which is transferred to
of receivables (including retention monies) within the the customer over time and not at a specific point in time since
agreed credit period normally applicable to the respective the entity’s performance creates or enhances as asset that the
projects/lines of business. customer controls as the asset is created or enhanced.
With respect to the method for recognising revenue over time
e) Preparation of financial statements : (i.e. the method for measuring progress towards complete
The Consolidated Balance Sheet and the Consolidated satisfaction of a performance obligation), the Group has
Statement of Profit and Loss are prepared and presented established certain criteria that are applied consistently for
in the format prescribed in the Schedule III to the similar performance obligations. In this regard, the method
Companies Act, 2013 (“the Act”). The Statement of chosen by the Group to measure the value of goods or services
Cash Flows has been prepared and presented as per the for which control is transferred to the customer over time is the
requirements of Ind AS 7 “Statement of Cash Flows”. output method based on surveys of performance completed to
The disclosure requirements with respect to items in the date (or measured unit of work), according to which revenue is
Consolidated Balance Sheet and Consolidated Statement recognised corresponding to the units of work performed and on
of Profit and Loss, as prescribed in the Schedule III to the the basis of the price allocated thereto. In cases where the work
Act, are presented by way of notes forming part of the performed till the reporting date has not reached the milestone
financial statements along with the other notes required specified in the contract, the Group recognises revenue only
to be disclosed under the notified Accounting Standards to the extent that it is highly probable that the customer will
and the SEBI (Listing Obligations and Disclosure acknowledge the same. This method is applied as the progress
Requirements) Regulations, 2015 as amended.

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Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

of the work performed can be measured during its performance Revenue (other than sale)
on the basis of the contract. Under this method, on a regular Revenue (other than sale) is recognised to the extent that it is
basis, the work completed under each contract is measured probable that the economic benefits will flow to the group and
and the corresponding output is recognised as revenue. the revenue can be reliably measured.
Contract modifications are accounted for when additions, Claim on insurance companies and others, where quantum of
deletions or changes are approved either to the scope or price or accrual cannot be ascertained with reasonable certainty, are
both. Goods/services added that are not distinct are accounted accounted for on acceptance basis.
for on a cumulative catch up basis. Goods / services that are
distinct are accounted for prospectively as a separate contract, Claim on clients: Claims are accounted as income in the
if the additional goods/services are priced at the standalone period of receipt of arbitration award or acceptance by client
selling price else as a termination of the existing contract and or evidence of acceptance received. Interest awarded, being in
creation of a new contract. In cases where the additional work the nature of additional compensation under the terms of the
has been approved but the corresponding change in price has contract, is accounted as other operating revenue on receipt of
not been determined, the recognition of revenue is made for favourable arbitration award.
an amount with respect to which it is highly probable that a Rental Income :
significant reversal will not occur. Rental Income from investment property is recognised in
If the consideration promised in a contract includes a variable consolidated statement of profit and loss on straight-line basis
amount, this amount is recognised only to the extent that it over the term of the lease.
is highly probable that a significant reversal in the amount Interest Income
recognised will not occur.
Interest income from financial assets is recognised when it
In some circumstances (for example, in the early stages of a is probable that the economic benefits will flow to the Group
contract), an entity may not be able to reasonably measure the and the amount of income can be measured reliably. Interest
outcome of a performance obligation, but the entity expects income is accrued on a time basis by reference to the principal
to recover the costs incurred in satisfying the performance outstanding and at the effective interest rate (EIR) applicable,
obligation. In those circumstances, the entity recognise revenue which is the rate that exactly discounts estimated future cash
only to the extent of the costs incurred until such time that receipts through the expected life of the financial asset to that
it can reasonably measure the outcome of the performance asset’s net carrying amount on initial recognition.
obligation.
Dividend
Contract costs Dividend income is recognised when the group’s right to receive
Costs related to work performed in projects are recognised on dividend is established by the reporting date, which is generally
an accrual basis. Costs incurred in connection with the work when shareholders approve the dividend.
performed are recognised as an expense.
2.4 Property, plant and equipment (PPE)
Provision for future losses Property, plant and equipment is stated at acquisition cost net of
Provision for future losses are recognised as soon as it becomes accumulated depreciation and accumulated impairment losses,
evident that the total costs expected to be incurred in a contract if any. Subsequent costs are included in the asset’s carrying
exceed the total expected revenue from that contract. amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated
Contract balances with the item will flow to the Group and the cost of the item
can be measured reliably. All other repairs and maintenance are
i) Contract assets
charged to the Consolidated Statement of Profit and Loss during
A contract asset is recognised for amount of work done the period in which they are incurred.
but pending billing/acknowledgement by customer or
Cost of an item of property, plant and equipment comprises –
amounts billed but payment is due on completion of
future performance obligation, since it is conditionally i. its purchase price, including import duties and non –
receivable. The provision for Expected Credit Loss on refundable purchase taxes (net of duty/ tax credit availed),
contract assets is made on the same basis as financial after deducting trade discounts and rebates.
assets as stated in note No. 2.7. ii. any costs directly attributable to bringing the asset to the
location and condition necessary for it to be capable of
ii) Trade receivables operating in the manner intended by management.
A receivable represents the Group’s right to an amount of
iii. borrowing cost directly attributable to the qualifying asset
consideration that is unconditional (i.e., only the passage
in accordance with accounting policy on borrowing cost.
of time is required before payment of the consideration
is due). Refer to accounting policies of financial assets iv. the costs of dismantling, removing the item and restoring
in section Financial instruments – Initial recognition and the site on which it is located.
subsequent measurement. PPE in the course of construction for production, supply or
administrative purposes are carried at cost, less any recognised
iii) Contract liabilities impairment loss. Cost includes direct costs, related pre-
A contract liability is the obligation to transfer goods or operational expenses and for qualifying assets applicable
services to a customer for which the Group has received borrowing costs to be capitalised in accordance with the
advance payments from the customer. If a customer Group’s accounting policy. Administrative, general overheads
pays consideration before the Group transfers goods or and other indirect expenditure (including borrowing costs)
services to the customer, a contract liability is recognised incurred during the project period which are not directly related
when the consideration received. to the project nor are incidental thereto, are expensed.

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Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

Property, plant and equipment which are not ready for intended Depreciation of an asset begins when it is available for use, i.e.,
use as on the date of Balance Sheet are disclosed as “Capital when it is in the location and condition necessary for it to be
work-in-progress”. They are classified to the appropriate capable of operating in the manner intended by management.
categories of property, plant and equipment when completed Depreciation of an asset ceases at the earlier of the date that
and ready for intended use. Depreciation of these assets, on the the asset is retired from active use and is held for disposal and
same basis as other items of PPE, commences when the assets the date that the asset is derecognised.
are ready for their intended use. Depreciation methods, useful lives and residual values are
Capital work-in-progress are carried at cost, comprising direct reviewed periodically including at the end of each financial
cost, related incidental expenses and attributable borrowing year. Any changes in depreciation method, useful lives and
cost, less impairment losses if any. residual values are treated as a change in accounting estimate
An item of property, plant and equipment is derecognised upon and applied/adjusted prospectively, if appropriate.
disposal or when no future economic benefits are expected to 2.5 Intangible assets
arise from the continued use of asset. Any gain or loss arising
on the disposal or retirement of an item of property, plant Identifiable intangible assets are recognised when the Group
and equipment is determined as the difference between the controls the asset, it is probable that future economic benefits
sales proceeds and the carrying amount of the asset and is attributed to the asset will flow to the Group and the cost of the
recognised in the Consolidated Statement of Profit and Loss. asset can be reliably measured.
When significant parts of an item of property, plant and At initial recognition, the separately acquired intangible assets
equipment have materially different useful lives, they are with finite useful lives are recognised at cost of acquisition.
accounted for as separate items (major components) of property, Following initial recognition, the intangible assets are carried
plant and equipment. Such items, if any, are depreciated at cost less any accumulated amortisation and accumulated
separately. impairment losses, if any.
Machinery spares which meets the criteria of PPE is capitalised Intangible assets not ready for the intended use on the date
and depreciated over the useful life of the respective asset. of the balance sheet are disclosed as ‘intangible assets under
development’.
Deemed cost on transition to Ind AS:
An intangible asset should be derecognised (eliminated from
Under the Previous GAAP, all property, plant and equipment the balance sheet) on disposal or when no future economic
were carried at in the Consolidated Balance Sheet on basis of benefits are expected from its use and subsequent disposal.
historical cost.
Gains or losses arising from the retirement or disposal of
Depreciation: an intangible asset should be determined as the difference
Depreciation on fixed assets (other than freehold land and between the net disposal proceeds and the carrying amount of
capital work in progress) is provided on the straight line method, the asset and should be recognised as income or expense in the
based on their respective estimate of useful lives, as given Consolidated statement of profit and loss.
below. Estimated useful lives of assets are determined based on Deemed cost on transition to Ind AS:
internal assessment estimated by the management of the Group
and supported by technical advice wherever so required. The Under the Previous GAAP, all Intangible assets were carried at
management believes that useful lives currently used, which is in the Consolidated Balance Sheet on basis of historical cost.
as prescribed under Schedule II to the Companies Act, 2013, The Group has elected to continue with the carrying value of
fairly reflect its estimate of the useful lives and residual values all of its intangible assets recognised as of 1st April, 2016 (the
of fixed assets ( considered at 5% of the original cost), though transition date) measured as per the previous GAAP and use
these lives in certain cases are different from lives prescribed such carrying value as its deemed cost as of the transition date.
under Schedule II. Amortisation:
Intangible assets are amortised on a straight line basis over the
Type of assets Useful life in years
estimated useful lives of respective assets from the date when
Buildings the asset are available for use, on pro-rata basis. Estimated
Non Factory Building 60 years useful lives by major class of finite-life intangible assets are as
follows:
Plant and Machinery * 4 - 15years
Furniture and Fixtures 10 years Type of assets Useful life in years

Office Equipment 5 years Computer software, license fees 5 years

Vehicles 8 - 10 years The amortisation period and the amortisation method for finite-
life intangible assets is reviewed at each financial year end.
Computers 3 years
Changes in the expected useful life or the expected pattern of
*In respect of these assets, the management estimate of useful consumption of future economic benefits embodied in the asset
lives, based on technical assessment is different than the useful are considered to modify the amortisation period or method,
lives prescribed under Part C of Schedule II to the Companies as appropriate, and are treated as changes in accounting
Act, 2013. However, based on internal technical evaluation estimates and adjusted prospectively.
and external advice received, the management believes that
2.6 Investment properties
the useful lives as considered for arriving at the depreciation
rates, best represent the period over which management expect Properties including those under construction (land or a
to use these assets. building—or part of a building—or both) held (by the owner or
by the lessee under a finance lease) to earn rentals or for capital
Assets individually costing ` 5,000 or less are fully depreciated
appreciation or both, rather than for: (a) use in the production
in the year of acquisition.
or supply of goods or services or for administrative purposes;

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Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

or (b) sale in the ordinary course of business; are classified as disclosed in the notes. Fair values are determined based on
investment property. Investment property includes land held for an annual evaluation performed by an accredited external
a currently undetermined future use. independent valuer.
Investment properties are measured initially at cost, including An investment property is derecognised upon disposal or
transaction costs. Subsequent to initial recognition, investment when the investment property is permanently withdrawn from
properties are stated at cost less accumulated depreciation and use/ expiry of lease term and no future economic benefits
accumulated impairment loss, if any. are expected from the disposal. Any gain or loss arising on
Costs include costs incurred initially to acquire an investment derecognition of property is recognised in the Consolidated
property, being purchase price and any directly attributable Statement of Profit and Loss in the same period.
expenditure and costs incurred subsequently to add to, replace 2.7 Financial instruments
part of, or service a property. Costs of the day-to-day servicing
of such a property primarily being the cost of labour and Financial Assets:
consumables, and may include the cost of minor parts (the Initial recognition and measurement:
purpose of these expenditures whereof is often described as for
the ‘repairs and maintenance’ of the property) are recognised in Financial assets are recognised when the Group becomes a
Consolidated Statement of profit or loss as incurred. party to the contractual provisions of the instrument.

The Holding Company has developed a building (being Bus On initial recognition, a financial asset is recognised at fair
Terminal and Depot and Commercial Complex at Kota) for value, except for trade receivables which are initially measured
Rajasthan State Road Transport Corporation (RSRTC) under at transaction price. In case of financial assets which are
an “Agreement to develop”/ License Agreement on the land recognised at fair value through profit and loss (FVTPL), its
belonging to RSRTC under finance lease arrangement. The transaction costs are recognised in the consolidated statement
expenditure (construction cost) incurred has been shown in of profit and loss. In other cases, the transaction costs are
Consolidated Balance Sheet under the main head “Investment added to or deducted from the fair value of the financial assets.
Property” and sub-head Right of Use Assets (Building) meeting Financial assets are subsequently classified as measured at
the definition of Investment Property as defined in Ind As 40. • amortised cost (if it is held within a business model
The Holding Company has a right to sub-lease Right of Use whose objective is to hold the asset in order to collect
Asset (Commercial Complex). The primary lease period of contractual cash flows and the contractual terms of the
Commercial complex is 30 years which can be extended for a financial asset give rise on specified dates to cash flows
further period of 10 years at the option of the Holding Company that are solely payments of principal and interest on the
from the date of completion of the project. Thereafter, the principal amount outstanding)
Commercial Complex will be handed over to RSRTC. The
• fair value through profit and loss (FVTPL)
Management expects to use the said property in primary period
of lease of 30 years. • fair value through other comprehensive income (FVOCI).
Depreciation on investment property (other than freehold land, Equity Instruments:
properties under construction and capital work in progress) is All investments in equity instruments in scope of Ind AS 109
provided on the straight line method so as to write off the cost classified under financial assets are initially measured at fair
of the investment property less their residual values over their value.
estimated useful lives, as given below. If the equity investment is not held for trading, the Group may,
Estimated useful lives of assets are determined based on on initial recognition, irrevocably elect to measure the same
internal assessment estimated by the management of the either at FVOCI or FVTPL. The Group makes such election on
Group and supported by technical advice wherever so required. an instrument-by-instrument basis. Equity Instruments which
Based on such assessment and advice, the management are held for trading are classified as measured at FVTPL.
believes that useful lives and residual values currently used Fair value changes on an equity instrument is recognised as
are different from the useful lives and residual value prescribed other income in the Consolidated Statement of Profit and Loss
in Schedule II to the Companies Act, 2013. However, based unless the Group has elected to measure such instrument at
on internal technical evaluation and external advice received, FVOCI. Fair value changes excluding dividends, on an equity
the management believes that the estimated useful lives and instrument measured at FVOCI are recognised in OCI. Amounts
residual values are realistic and reflect fair approximation of the recognised in OCI are not subsequently reclassified to the
period over which the assets are likely to be used. Consolidated Statement of Profit and Loss. Dividend income on
the investments in equity instruments are recognised as ‘other
Type of assets Useful life in years
income’ in the Consolidated Statement of Profit and Loss.
Building at Kota Primary lease period of 30 years
Derecognition:
having zero residual value
The Group derecognises a financial asset when the contractual
Temporary Building 6 years rights to the cash flows from the financial asset expire, or it
Structures transfers the contractual rights to receive the cash flows from
Depreciation method is reviewed at each financial year end to the asset.
reflect the expected pattern of consumption of the future benefits Impairment of Financial Asset:
embodied in the investment property. The estimated useful life In accordance with Ind AS 109, the Group applies the expected
and residual values are also reviewed at each financial year credit loss (”ECL”) model for measurement and recognition of
end and the effect of any change in the estimates of useful life/ impairment loss on financial assets and credit risk exposures.
residual value is accounted on prospective basis. Freehold land The Group follows ‘simplified approach’ for recognition of
and properties under construction are not depreciated. impairment loss allowance on trade receivables or contract
Though the Group measures investment property using cost revenue receivables. Simplified approach does not require
based measurement, the fair value of investment property is

Annual Report 2019-20 153

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

the Group to track changes in credit risk. Rather, it recognises transaction price shall be recognised as gain or loss unless it
impairment loss allowance based on lifetime ECL at each qualifies for recognition as an asset or liability.
reporting date, right from its initial recognition. This involves use In accordance with Ind AS 113, the fair value of a financial
of provision matrix constructed on the basis of historical credit liability with a demand feature is not less than the amount
loss experience and adjusted for forward looking information. payable on demand, discounted from the first date that the
The expected credit loss allowance is based on the ageing of amount could be required to be paid.
the receivables that are due and the rates used in the provision
matrix. The Group’s financial liabilities include trade and other payables
and loans and borrowings including bank overdrafts.
For recognition of impairment loss on other financial assets and
risk exposure, the Group determines that whether there has been Subsequent measurement
a significant increase in the credit risk since initial recognition. The measurement of financial liabilities depends on their
If credit risk has not increased significantly, 12-month ECL is classification, as described below:
used to provide for impairment loss. However, if credit risk has Loans and borrowings
increased significantly, lifetime ECL is used. If, in a subsequent
After initial recognition, interest-bearing loans and borrowings
period, credit quality of the instrument improves such that
are subsequently measured at amortised cost using the EIR
there is no longer a significant increase in credit risk since initial
method. Gains and losses are recognised in profit or loss when
recognition, then the entity reverts to recognising impairment
the liabilities are derecognised as well as through the EIR
loss allowance based on 12-month ECL.
amortisation process.
ECL is the difference between all contractual cash flows that
Amortised cost is calculated by taking into account any discount
are due to the group in accordance with the contract and all
or premium on acquisition and fees or costs that are an integral
the cash flows that the entity expects to receive (i.e., all cash
part of the EIR. The EIR amortisation is included as finance
shortfalls),discounted at the original EIR. Lifetime ECL are the
costs in the consolidated statement of profit and loss, unless
expected credit losses resulting from all possible default events
and to the extent capitalised as part of costs of an asset.
over the expected life of a financial instrument. The 12-month
ECL is a portion of the lifetime ECL which results from default The effective interest method is a method of calculating the
events that are possible within 12 months after the reporting amortised cost of a financial liability and of allocating interest
date. expense over the relevant period. The effective interest rate is
the rate that exactly discounts estimated future cash payments
The Group measures the expected credit loss associated with
(including all fees and points paid or received that form an
its assets based on historical trend, industry practices and
integral part of the effective interest rate, transaction costs and
the business environment in which the entity operates or any
other premiums or discounts) through the expected life of the
other appropriate basis. The impairment methodology applied
financial liability, or (where appropriate) a shorter period, to the
depends on whether there has been a significant increase in
net carrying amount on initial recognition.
credit risk.
Trade and other payables
ECL impairment loss allowance (or reversal) recognised during
the period is recognised as income/ expense in the Consolidated For trade and other payables maturing within one year from
Statement of Profit and Loss. the balance sheet date, the carrying amounts approximate fair
value due to the short maturity of these instruments.
Financial Liabilities and equity instruments: Derecognition
Classification as debt or equity A financial liability is derecognised when the obligation under
Debt and equity instruments issued by the Group are classified the liability is discharged or cancelled or expires. When an
as either financial liabilities or as equity in accordance with the existing financial liability is replaced by another from the same
substance of the contractual arrangements and the definitions lender on substantially different terms, or the terms of an
of a financial liability and an equity instrument. existing liability are substantially modified, such an exchange
Equity instruments or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference
An equity instrument is any contract that evidences a residual
in the respective carrying amounts is recognised in the
interest in the assets of an entity after deducting all of its
consolidated statement of profit or loss.
liabilities. Equity instruments issued by a group entity are
recognised at the proceeds received, net of direct issue costs. Off setting of Financial Instruments
Financial liabilities Financial assets and financial liabilities are offset and the net
amount is reported in the Consolidated Balance Sheet if there is
Initial recognition and measurement:
currently enforceable legal right to offset the recognised amount
Financial liabilities are recognised when the Group becomes a and there is an intention to settle on a net basis, to realise the
party to the contractual provisions of the instrument. assets and settle the liabilities simultaneously.
Financial liabilities are classified, at initial recognition, as
financial liabilities at fair value through profit or loss, loans and 2.8 Impairment of Non-financial assets
borrowings, payables, or as derivatives designated as hedging The carrying amounts of non-financial assets other than
instruments in an effective hedge, as appropriate. All financial inventories are assessed at each reporting date to ascertain
liabilities are recognised initially at fair value and, in the case of whether there is any indication of impairment. If any such
loans and borrowings and payables, net of directly attributable indication exists then the asset’s recoverable amount is
transaction costs. estimated. An impairment loss is recognised, as an expense in
The fair value of a financial instrument at initial recognition is the Consolidated Statement of Profit and Loss, for the amount
normally the transaction price. If the Group determines that the by which the asset’s carrying amount exceeds its recoverable
fair value at initial recognition differs from the transaction price, amount. The recoverable amount is the higher of an asset’s
difference between the fair value at initial recognition and the fair value less cost to sell and value in use. Value in use is

154 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

ascertained through discounting of the estimated future cash the Consolidated Statement of Profit and Loss.
flows using a discount rate that reflects the current market Non-monetary assets and liabilities denominated in a foreign
assessments of the time value of money and the risk specific currency and measured at historical cost are translated at the
to the assets. For the purpose of assessing impairment, assets exchange rate prevalent at the date of transaction.
are grouped at the lowest levels into cash generating units for
which there are separately identifiable cash flows. 2.11 Leases
Impairment losses recognised in prior years are reversed when The determination of whether an arrangement is (or contains)
there is an indication that the impairment losses recognised no a lease is based on the substance of the arrangement at the
longer exist or have decreased. Such reversals are recognised inception of the lease. The arrangement is, or contains, a lease
as an increase in carrying amounts of assets to the extent if fulfillment of the arrangement is dependent on the use of a
that it does not exceed the carrying amounts that would have specific asset or assets and the arrangement conveys a right
been determined (net of amortisation or depreciation) had no to use the asset or assets, even if that right is not explicitly
impairment loss been recognised in previous years. specified in an arrangement.

2.9 Borrowing costs (a) Group as a Lessee

Borrowing costs comprises interest expense on borrowings The Group’s lease asset classes primarily consist of
calculated using the effective interest method and exchange leases for commercial complex, land and buildings. The
differences arising from foreign currency borrowings to the Group assesses whether a contract contains a lease,
extent that they are regarded as an adjustment to interest costs. at inception of a contract. A contract is, or contains, a
The effective interest method is a method of calculating the lease if the contract conveys the right to control the use
amortised cost of a financial asset or a financial liability and of an identified asset for a period of time in exchange for
of allocating the interest income or interest expense over the consideration. To assess whether a contract conveys the
relevant period. right to control the use of an identified asset, the Group
assesses whether: (i) the contract involves the use of
The effective interest rate (EIR) is the rate that exactly discounts an identified asset (ii) the Group has substantially all of
estimated future cash payments or receipts through the the economic benefits from use of the asset through the
expected life of the financial instrument or, when appropriate, a period of the lease and (iii) the Group has the right to
shorter period to the net carrying amount of the financial asset direct the use of the asset.
or financial liability. EIR calculation does not include exchange
differences. The Group recognises a right-of-use asset and a lease
liability at the lease commencement date. The right-of-
Borrowing costs that are directly attributable to the acquisition, use asset is initially measured at cost, which comprises
construction or production of a qualifying asset, which are the initial amount of the lease liability adjusted for any
assets that necessarily take a substantial period of time to get lease payments made at or before the commencement
ready for their intended use or sale, are included in the cost of date, plus any initial direct costs incurred and an estimate
those assets. Such borrowing costs are capitalised as part of of costs to dismantle and remove the underlying asset or
the cost of the asset when it is probable that they will result to restore the underlying asset or the site on which it is
in future economic benefits to the entity and the costs can be located, less any lease incentives received.
measured reliably. Other borrowing costs are recognised as an
expense in the period in which they are incurred. The right-of-use asset is subsequently depreciated using
the straight-line method from the commencement date
The capitalisation of borrowing costs as part of the cost of a to the earlier of the end of the useful life of the right-of-
qualifying asset commences when expenditure for the asset is use asset or the end of the lease term. The estimated
being incurred, borrowing costs are being incurred and activities useful lives of right-of-use assets are determined on the
that are necessary to prepare the asset for its intended use or same basis as those of property, plant and equipment.
sale are in progress. In addition, the right-of-use asset is periodically reduced
Capitalisation of borrowing costs is suspended or ceases by impairment losses, if any, and adjusted for certain re-
when substantially all the activities necessary to prepare the measurements of the lease liability.
qualifying asset for its intended use or sale are interrupted or The lease liability is initially measured at the present
completed. value of the lease payments that are not paid at the
Investment income earned on the temporary investment of commencement date, discounted using the interest rate
specific borrowings pending their expenditure on qualifying implicit in the lease or, if that rate cannot be readily
assets is deducted from the borrowing costs eligible for determined, group’s incremental borrowing rate.
capitalisation. Generally, the group uses its incremental borrowing rate
2.10 Foreign currency transactions as the discount rate.
The Consolidated financial statements are presented in Indian Lease payments included in the measurement of the
Rupees (INR), the functional currency of the Group. Items lease liability comprise the following:
included in the Consolidated financial statements of the Group – Fixed payments, including in-substance fixed
are recorded using the currency of the primary economic payments;
environment in which the Group operates (the ‘functional – Variable lease payments that depend on an index or
currency’). a rate, initially measured using the index or rate as
Foreign currency transactions are translated into the functional at the commencement date;
currency using exchange rates at the date of the transaction. – Amounts expected to be payable under a residual
Foreign exchange gains and losses from settlement of these value guarantee; and
transactions, and from translation of monetary assets and
liabilities at the reporting date exchange rates are recognised in – The exercise price under a purchase option that
the group is reasonably certain to exercise, lease

Annual Report 2019-20 155

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

payments in an optional renewal period if the existing on April 1, 2019 using the modified retrospective
group is reasonably certain to exercise an extension method and has taken the cumulative adjustment to
option, and penalties for early termination of a retained earnings, on the date of initial application.
lease unless the group is reasonably certain not to Consequently, the Group recorded the lease liability at
terminate early. the present value of the lease payments discounted at the
The lease liability is measured at amortised cost using incremental borrowing rate and the right of use asset at its
the effective interest method. It is remeasured when carrying amount as if the standard had been applied since
there is a change in future lease payments arising from the commencement date of the lease, but discounted at
a change in an index or rate, if there is a change in the the Group’s incremental borrowing rate at the date of
group’s estimate of the amount expected to be payable initial application. The comparative information as at
under a residual value guarantee, or if group changes and for the year ended 31st March, 2019 have not been
its assessment of whether it will exercise a purchase, retrospectively adjusted and therefore will continue to be
extension or termination option. reported under Ind AS- 17 included as part of our Annual
Report for year ended 31st March, 2019.
When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying amount On transition as at 1st April, 2019 the Group has
of the right-of-use asset, or is recorded in Consolidated recognised:
Statement of profit or loss if the carrying amount of the (i) License fee payable to Rajasthan State Road
right-of-use asset has been reduced to zero. Transport Corporation (RSRTC) under an
The group presents right-of-use assets that do not “Agreement to Develop” / “License agreement”
meet the definition of investment property in ‘property, with regard to Commercial Complex of ` 2,992.77
plant and equipment’ and lease liabilities separately in Lakhs as Investment Property (Right of Use Assets
Consolidated balance sheet. meeting the definition of Investment Property as
defined in Ind AS-40) and a corresponding lease
Short-term leases and leases of low-value assets liability of ` 2,511.04 Lakhs by credit to retained
The group has elected not to recognise right-of-use assets earnings of ` 360.49 Lakhs (net of deferred tax of
and lease liabilities for short term leases that have a lease ` 121.24 Lakhs),
term of 12 months or less. The group recognises the lease (ii) Reclassification of Lease Hold Land shown under
payments associated with these leases as an expense on Property, Plant & Equipment of ` 336.82 Lakhs to
a straight-line basis over the lease term. Right of Use Assets.
(b) Group as a Lessor The following is the summary of practical expedients
elected on initial application:
Leases for which the Group is a lessor is classified as a
finance or operating lease. Whenever the terms of the 1. Applied a single discount rate to a portfolio of leases
lease transfer substantially all the risks and rewards of of similar assets in similar economic environment
ownership to the lessee, the contract is classified as a with a similar end date.
finance lease. All other leases are classified as operating 2. Applied the exemption not to recognise right-of-
leases. use assets and liabilities for leases with less than
12 months of lease term on the date of initial
Finance lease application.
Amounts due from lessees under finance leases are 3. Excluded the initial direct costs from the
recorded as receivables at the Group’s net investment measurement of the right-of-use asset at the date
in the leases. Finance lease income is allocated to of initial application.
accounting periods so as to reflect a constant periodic
rate of return on the net investment outstanding in respect 4. Applied the practical expedient to grandfather
of the lease. the assessment of which transactions are leases.
Accordingly, Ind AS 116 is applied only to contracts
Operating lease that were previously identified as leases under Ind
Rental income from operating sub lease of Right of Use AS 17.
(ROU) Asset is recognised on a straight-line basis over the The weighted average incremental borrowing rate applied
term of the relevant lease unless either another systematic to lease liabilities as at 1st April, 2019 is 9.70%
basis is more representative of the time pattern in which
use benefit derived from the leased asset is diminished, 2.12 (a) Inventories
even if the payments to the lessor are not on that basis. Inventories are valued at the lower of cost and net
Where the Group provides incentives for the lessee to enter realisable value.
into the agreement such as an up-front cash payment to Costs incurred in bringing each product to its present
the lessee or the reimbursement or assumption by the location and condition, are accounted for as follows:
lessor of costs of the lessee (such as relocation costs, • Construction materials, stores and spares: cost
leasehold improvements and costs associated with a pre- includes cost of purchase (viz. the purchase price,
existing lease commitment of the lessee), such incentives import duties and other taxes (other than those
are recognised as an integral part of the net consideration subsequently recoverable by the entity from the
agreed for the use of the leased asset, irrespective of the taxing authorities), and transport, handling and
incentive’s nature or form or the timing of payments. other costs directly attributable to the acquisition
and is net of trade discounts, rebates and other
Transition
similar items) and other costs incurred in bringing
Effective 1st April, 2019, the Group adopted Ind AS 116 the inventories to their present location and
“Leases” and applied the standard to all lease contracts

156 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

condition. Cost is determined on first in first out and Employee State Insurance Scheme. The Group’s
(FIFO) basis. contribution to defined contribution plans are recognised
• Traded goods: cost includes cost of purchase and in the Consolidated Statement of Profit and Loss in the
other costs incurred in bringing the inventories period in which employee renders the related service.
to their present location and condition. Cost is ii) Defined benefit plan
determined on first in first out basis. The Group’s obligation towards gratuity liability is funded
Net realisable value is the estimated selling price in to an approved gratuity fund, which fully covers the said
the ordinary course of business, less estimated costs of liability under Group Gratuity Cash Accumulation Policy
completion and the estimated costs necessary to make of Life Insurance Corporation of India (LIC). The present
the sale. value of the defined benefit obligations is determined
Assessment of net realisable value is made in each based on actuarial valuation using the projected unit
subsequent period and when the circumstances that credit method. The rate used to discount defined benefit
previously caused inventories to be written-down below obligation is determined by reference to market yields at
cost no longer exist or when there is clear evidence of the Balance Sheet date on Indian Government Bonds for
an increase in net realisable value because of changed the estimated term of obligations.
economic circumstances, the write-down, if any, in the The amount recognised as ‘Employee benefit expenses’ in
past period is reversed to that extent of the original amount the Consolidated Statement of Profit and Loss is the cost
written-down so that the resultant carrying amount is the of accruing employee benefits promised to employees over
lower of the cost and the revised net realisable value. the current year and the costs of individual events such as
Obsolete, slow moving and defective inventories are past/future service benefit changes and settlements (such
identified from time to time and, where necessary, a events are recognised immediately in the Consolidated
provision is made for such inventories. Statement of Profit and Loss).
The amount of net interest expense calculated by
(b) Inventory property applying the liability discount rate to the net defined
Properties (including under construction) acquired for benefit liability or asset is charged or credited to ‘Finance
sale in the ordinary course of business, rather than to be costs’ in the Consolidated Statement of Profit and Loss.
held for rental or capital appreciation, is held as inventory Re-measurement of net defined benefit liability/ asset
property and is measured at the lower of cost and net pertaining to gratuity comprise of actuarial gains/ losses
realisable value (NRV). (i.e. changes in the present value of the defined benefit
Cost includes: Freehold and leasehold rights for land, obligation resulting from experience adjustments and
amounts paid to contractors/builders for construction effects of changes in actuarial assumptions), the return
linked payments for flats acquired by allotment from on plan assets (excluding interest) and the effect of the
builders, property transfer taxes, and other related costs. asset ceiling (if any, excluding interest)and is recognised
Non-refundable commissions paid to sales or marketing immediately in the Consolidated balance sheet with a
agents on the sale of real estate units are expensed when charge or credit recognised in other comprehensive income
paid. in the period in which they occur. Re-measurements are
not reclassified to profit or loss account in subsequent
NRV is the estimated selling price in the ordinary course
periods.
of the business, based on market prices at the reporting
date and discounted for the time value of money if Other long-term employee benefit obligations:
material, less estimated costs of completion and the No provision for Leaves is made as accumulation and
estimated costs necessary to make the sale. payment/encashment of unused leaves is not allowed to
The cost of inventory property recognised in Consolidated employees.
Statement of profit or loss on disposal is determined with 2.14 Taxation
reference to the specific costs incurred on the property
sold. Tax expense comprises of current and deferred tax and includes
any adjustments related to past periods in current and/or
2.13 Employee benefits deferred tax adjustments that may become necessary due to
Short- term employee benefits: certain developments or reviews during the relevant period.
All employee benefits payable wholly within twelve months Current income tax:
of rendering the service are classified as short-term employee Tax on income for the current period is determined on the basis
benefits. Benefits such as salaries, wages, social security of taxable income (or on the basis of book profits wherever
contributions, short term compensated absences (paid annual minimum alternate tax is applicable) and tax credits computed
leaves) etc. are measured on an undiscounted basis at the in accordance with the provisions of the Income Tax Act 1961,
amounts expected to be paid when the liabilities are settled and based on the expected outcome of assessments/appeals.
and are expensed in the period in which the employee renders Current income tax assets and liabilities are measured at the
the related service. amount expected to be recovered from or paid to the taxation
Post-employment benefits : authorities. The tax rates and tax laws used to compute the
i) Defined contribution plan amount are those that are enacted or substantively enacted, at
the reporting date in the countries where the Group operates
The defined contribution plan is postemployment benefit
and generates taxable income.
plan under which the Group contributes fixed contribution
to a government administered fund and will have no Current income tax relating to items recognised outside profit
obligation to pay further contribution. The Group’s or loss is recognised outside profit or loss (either in other
defined contribution plan comprises of Provident Fund comprehensive income or in equity). Current tax items are

Annual Report 2019-20 157

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

recognised in correlation to the underlying transaction either in recognised in correlation to the underlying transaction either in
other comprehensive income or directly in equity. Management OCI or directly in equity.
periodically evaluates positions taken in the tax returns with Deferred tax assets and deferred tax liabilities are offset if a
respect to situations in which applicable tax regulations are legally enforceable right exists to set off current tax assets
subject to interpretation and establishes provisions where against current tax liabilities and the deferred taxes relate to the
appropriate. same taxable entity and the same taxation authority.
Current tax assets and current tax liabilities are offset when Deferred Tax Assets include Minimum Alternative Tax (MAT)
there is a legally enforceable right to set off the recognised paid in accordance with the tax laws in India, which is likely
amounts and there is an intention to settle the asset and the to give future economic benefits in the form of availability of
liability on a net basis. set off against future income tax liability. Accordingly, MAT is
Deferred tax: recognised as deferred tax assets in the Consolidated Balance
Deferred tax is provided using the liability method on temporary sheet when the asset can be measured reliably and it is
differences between the tax bases of assets and liabilities and probable that the future economic benefit associated with the
their carrying amounts for financial reporting purposes at the asset will be realised.
reporting date. 2.15 Provisions and contingencies
Deferred tax liabilities are recognised for all taxable temporary Provisions:
differences, except:
Provisions are recognised when the Group has a present
• When the deferred tax liability arises from the initial obligation (legal or constructive) as a result of a past event, it
recognition of goodwill or an asset or liability in a is probable that an outflow of resources embodying economic
transaction that is not a business combination and, at benefits will be required to settle the obligation and a reliable
the time of the transaction, affects neither the accounting estimate can be made of the amount of the obligation.
profit nor taxable profit or loss Provisions are measured at the best estimate of the expenditure
• In respect of taxable temporary differences associated required to settle the present obligation at the Balance Sheet
with investments in subsidiaries, associates and interests date.
in joint arrangements, when the timing of the reversal If the effect of the time value of money is material, provisions
of the temporary differences can be controlled and it is are discounted to reflect its present value using a current pre-
probable that the temporary differences will not reverse tax rate that reflects the current market assessments of the time
in the foreseeable future value of money and the risks specific to the obligation. When
Deferred tax assets are recognised for all deductible temporary discounting is used, the increase in the provision due to the
differences, the carry forward of unused tax credits and any passage of time is recognised as a finance cost.
unused tax losses &unabsorbed tax depreciation. Deferred Where the Group expects some or all of a provision to be
tax assets are recognised to the extent that it is probable that reimbursed, the reimbursement is recognised as a separate
taxable profit will be available against which the deductible asset but only when the reimbursement is virtually certain. The
temporary differences, and the carry forward of unused tax expense relating to any provision is presented in the income
credits and unused tax losses can be utilised, except: statement net of any reimbursement.
• When the deferred tax asset relating to the deductible Contingencies:
temporary difference arises from the initial recognition of
an asset or liability in a transaction that is not a business Contingent liabilities
combination and, at the time of the transaction, affects A contingent liability is:
neither the accounting profit nor taxable profit or loss • a possible obligation arising from past events, the
• In respect of deductible temporary differences associated existence of which will be confirmed only by the
with investments in subsidiaries, associates and interests occurrence or non-occurrence of one or more uncertain
in joint arrangements, deferred tax assets are recognised future events not wholly within the control of the Group,
only to the extent that it is probable that the temporary or
differences will reverse in the foreseeable future and • a present obligation that arises from past events but is not
taxable profit will be available against which the recognised because :
temporary differences can be utilised
– it is not probable that an outflow of resources
The carrying amount of deferred tax assets is reviewed at each embodying economic benefits will be required to
reporting date and reduced to the extent that it is no longer settle the obligation; or
probable that sufficient taxable profit will be available to allow
– the amount of the obligation cannot be measured
all or part of the deferred tax asset to be utilised. Unrecognised
with sufficient reliability.
deferred tax assets are re-assessed at each reporting date and
are recognised to the extent that it has become probable that Contingent liabilities are not recognised but disclosed unless
future taxable profits will allow the deferred tax asset to be the contingency is remote.
recovered. Contingent assets
Deferred tax assets and liabilities are measured at the tax rates A contingent asset is a possible asset that arises from past
that are expected to apply in the year when the asset is realised events and whose existence will be confirmed only by the
or the liability is settled, based on tax rates (and tax laws) that occurrence or non-occurrence of one or more uncertain future
have been enacted or substantively enacted at the reporting events not wholly within the control of the Group.
date.
Contingent assets are not recognised but are disclosed when
Deferred tax relating to items recognised outside profit or loss the inflow of economic benefits is probable. When inflow is
is recognised outside profit or loss. Deferred tax items are virtually certain, an asset is recognised.

158 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

2.16 Segment Reporting services to the reporting entity or to the parent of

Operating segments are defined as components of an enterprise the reporting entity.
for which discrete financial information is available that is Close members of the family of a person are those family
evaluated regularly by the chief operating decision maker, in members who may be expected to influence, or be
deciding how to allocate resources and assessing performance. influenced by, that person in their dealings with the entity
Operating Segments are reported in a manner consistent with including:
the internal reporting provided to the chief operating decision (a) that person’s children, spouse or domestic partner,
maker. brother, sister, father and mother;
The Group has identified two operating segments in which it (b) children of that person’s spouse or domestic
is primarily engaged i.e. the business of providing construction partner; and
related activities where risks and returns in all the cases are
(c) dependents of that person or that person’s spouse
similar and income from investment properties (lease rentals).
or domestic partner.
They have been considered as the reportable segments.
Key management personnel are those persons having
Others segment comprises real estate trading business. None
authority and responsibility for planning, directing and
of the business(es) reported as part of others segment meet
controlling the activities of the entity, directly or indirectly,
aggregation criteria or any of the quantitative thresholds for
including any director (whether executive or otherwise) of
determining reportable segments in the year ended 31st March,
that entity.
2020 and for the year ended 31st March, 2019.
Related party transactions and outstanding balances
The Group’s Chief Operating Decision Maker (CODM) is the
disclosed in the consolidated financial statements are in
Managing Director who evaluates the Group’s performance and
accordance with the above definition as per Ind AS- 24.
allocates resources based on analysis of various performance
indicators. 2.18 Cash and cash equivalents
Geographical information : Cash and cash equivalents in the Consolidated Balance Sheet
The Group operates only within India having similar: (i) comprise cash at banks & in hand and short term deposits/
economic and political conditions, (ii) activities at all project investments with an original maturity of three months or
locations and (iii) risk associated with the operations. As such less from the date of acquisition, which are subject to an
the risks and returns at all project locations are similar. Hence, insignificant risk of changes in value. These exclude bank
the geographical information considered for disclosure is not balances (including deposits) held as margin money or security
applicable to the Group. against borrowings, guarantees etc. being not readily available
for use by the Group.
2.17 Related party
For the purpose of the Consolidated Statement of cash
A related party is a person or entity that is related to the flows, cash and cash equivalents consist of cash and short
reporting entity and it includes: term deposits and exclude items which are not available for
(a) A person or a close member of that person’s family if that general use as on the date of Consolidated Balance Sheet, as
person: defined above, net of bank overdrafts which are repayable on
(i) has control or joint control over the reporting entity; demand where they form an integral part of an entity’s cash
management.
(ii) has significant influence over the reporting entity; or
(iii) is a member of the key management personnel of 2.19 Dividend to equity holders of the Group
the reporting entity or of a parent of the reporting The Group recognises a liability to make dividend distributions to
entity. equity holders of the Group when the distribution is authorised
(b) An entity is related to the reporting entity if any of the and the distribution is no longer at the discretion of the Group.
following conditions apply: As per the corporate laws in India, a distribution is authorised
when it is approved by the shareholders. A corresponding
(i) The entity and the reporting entity are members of amount is recognised directly in equity.
the same Group.
(ii) One entity is an associate or joint venture of the 2.20 Cash Flow Statement
other entity. Consolidated Statement of Cash Flows is prepared segregating
(iii) Both entities are joint ventures of the same third the cash flows into operating, investing and financing activities.
party. Cash flow from operating activities is reported using indirect
method as set out in Ind AS 7 ‘Statement of Cash Flows’,
(iv) One entity is a joint venture of a third entity and the
adjusting the net profit for the effects of:
other entity is an associate of the third entity.
i. changes during the period in inventories and operating
(v) The entity has a post-employment benefit plan for
receivables and payables transactions of a non-cash
the benefit of employees of either the reporting
nature;
entity or an entity related to the reporting entity.
ii. non-cash items such as depreciation, provisions, deferred
(vi) The entity is controlled or jointly controlled by a
taxes, unrealised foreign currency gains and losses, and
person identified in (a).
iii. all other items for which the cash effects are investing or
(vii) A person identified in (a) (i) has significant
financing cash flows.
influence over the entity or is a member of the key
management personnel of the entity (or of a parent 2.21 Earnings per share
of the entity). The Basic Earnings per equity share (‘EPS’) is computed
(viii) The entity, or any member of a Group of which by dividing the net profit or loss after tax before other
it is a part, provides key management personnel

Annual Report 2019-20 159

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

comprehensive income for the year attributable to the equity 2.22 Events after Reporting date
shareholders of the Parent by weighted average number of Where events occurring after the Balance Sheet date provide
equity shares outstanding during the year. evidence of conditions that existed at the end of the reporting
Diluted earnings per equity share are computed by dividing the period, the impact of such events is adjusted within the
net profit or loss before OCI attributable to equity holders of Consolidated financial statements. Where the events are
the Group by the weighted average number of equity shares indicative of conditions that arose after the reporting period,
considered for deriving basic earnings per equity share and the amounts are not adjusted, but are disclosed if those non-
also the weighted average number of equity shares that could adjusting events are material.
have been issued upon conversion of all dilutive potential equity
shares (including options and warrants). The dilutive potential 2.23 Corporate Social Responsibility (CSR) expenditure
equity shares are adjusted for the proceeds receivable had the The Group charges its CSR expenditure during the year to the
equity shares been actually issued at fair value. Dilutive potential Consolidated statement of profit & loss.
equity shares are deemed converted as of the beginning of the
period unless issued at a later date. Anti-dilutive effects are 2.24 Recent Indian Accounting Standards (Ind AS)
ignored. Ministry of Corporate Affairs (“MCA”) notifies new standard
or amendments to the existing standards. There is no such
notification which would have been applicable from 1st April,
2020.

160 Ahluwalia Contracts (India) Limited

 3 PROPERTY, PLANT & EQUIPMENT
As at 31st March, 2020

Cost Or Deemed Cost Land-Lease- Land- Free- Building Plant & Shuttering Earth Vehicles Commercial Furniture & Office Equip- Air Condi- Computers Total Property, Capital
hold hold Machinery Material Movers Vehicles Fixtures ments tioners Plant & Equip- Work In
ment Progress
Balance as at 352.77 24.74 366.70 8,797.39 3,102.34 64.21 558.37 326.13 82.60 135.73 44.14 107.71 13,962.84 30.61
01.04.2018
Additions - - - 839.86 1,377.85 - 150.68 80.66 52.56 59.38 23.42 83.94 2,668.35 43.57
Sales / Adjustments - - - 1.02 - - 78.30 21.59 - - - - 100.92 30.61
Balance as at 352.77 24.74 366.70 9,636.23 4,480.19 64.21 630.75 385.21 135.15 195.11 67.56 191.65 16,530.27 43.57
31.03.2019
Additions 952.73 2,081.32 108.37 192.36 18.70 11.09 64.65 27.91 93.81 3,550.95 20.74
Reclassification on (352.77) (352.77)
account of Ind AS-116
Sales / Adjustments 11.47 0.49 11.96 43.57
Balance as at - 24.74 366.70 10,588.96 6,561.51 172.59 811.64 403.91 146.24 259.27 95.47 285.47 19,716.49 20.74
31.03.2020
Accumulated Land-Lease- Land- Free- Building Plant & Shuttering Earth Vehicles Commercial Furniture & Office Equip- Air Condi- Computers Total Property, Capital
Depreciation hold hold Machinery Material Movers Vehicles Fixtures ments tioners Plant & Equip- Work In
ment Progress
Balance as at 10.63 - 11.36 2,469.23 1,327.67 18.08 117.33 174.60 29.30 65.12 18.24 47.63 4,289.20 -
01.04.2018
Depreciation Expenses 5.32 - 6.93 1,218.04 903.36 10.20 103.40 57.89 22.14 34.97 12.19 43.79 2,418.22 -
Deductions / - - - 0.08 - - 75.72 21.59 - - - - 97.39 -
Adjustments
Balance as at 15.95 - 18.29 3,687.20 2,231.03 28.28 145.02 210.90 51.44 100.08 30.43 91.42 6,610.04 -
31.03.2019
Depreciation Expenses 6.93 1,307.69 1,113.77 15.85 102.06 46.54 17.65 37.07 14.20 60.79 2,722.55 -
Reclassification on (15.95) (15.95)
account of Ind AS-116
Corporate Overview

Deductions / 10.95 0.36 11.31

Adjustments
Balance as at - - 25.22 4,994.88 3,344.80 44.13 236.12 257.44 69.09 136.79 44.63 152.21 9,305.32 -
31.03.2020
Net Carrying Value Land-Lease- Land- Free- Building Plant & Shuttering Earth Vehicles Commercial Furniture & Office Equip- Air Condi- Computers Total Property, Capital
hold hold Machinery Material Movers Vehicles Fixtures ments tioners Plant & Equip- Work In
ment Progress
Statutory Reports

Net carrying Value as 336.82 24.74 348.41 5,949.03 2,249.17 35.93 485.73 174.31 83.71 95.03 37.13 100.24 9,920.24 43.57
on 31.03.2019
Net carrying Value as - 24.74 341.49 5,594.08 3,216.71 128.46 575.52 146.46 77.15 122.47 50.84 133.26 10,411.17 20.74
on 31.03.2020
NOTE :- NOTE :- i) Land-Leasehold includes ` Nil (previous year ` 13.60 Lakhs) pending registration in the name of the holding company.
ii) Building includes ` 345.60 Lakhs (previous year ` 345.60 Lakhs) pending registration in the name of the holding company.

Annual Report 2019-20

iii) CWIP represents Plant & machinery in transit ` 20.74 Lakhs (previous year ` 43.57 Lakhs)
Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)
Financial Statements

iv) Refer note No. 23 & 27 for hypothecation/ pledge of assets.

161
Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

4 RIGHT OF USE ASSETS

(` in Lakhs)
LANDS
Gross Carrying Value as at 01.04.2018 -
Additions -
Disposals -
Gross Carrying Value as at 31.03.2019 -
Reclassification on account of Ind AS-116 as on 01.04.2019 336.82
Additions -
Disposals -
Gross Carrying Value as at 31.03.2020 336.82
LANDS
Depreciation (Accumulated depreciation)
Balance as at 01.04.2018 -
Charge for the year -
Disposals -
Balance as at 31.03.2019 -
Charge for the year 5.32
Disposals -
Balance as at 31.03.2020 5.32
LANDS
Net carrying Value as on 31.03.2019 -
Net carrying Value as on 31.03.2020 331.50
NOTE: (i) Right of Use Assets include ` 13.60 Lakhs (previous year ` Nil) pending registration in the name of the holding company.
(ii) Also refer note No. 45 of leases.

5 INVESTMENT PROPERTIES
(` in Lakhs)
RIGHT OF USE FREEHOLD LAND TEMPORARY TOTAL
ASSETS (BUILD- BUILDING
ING) STRUCTURE
Cost or Deemed Cost
Balance as at 01.04.2018 9,203.13 387.76 3.87 9,594.75
Additions 223.82 - - 223.82
Disposals - - - -
Balance as at 31.03.2019 9,426.95 387.76 3.87 9,818.58
Impact an account of adoption of Ind AS-116 as on 01.04.2019 2,992.77 - - 2,992.77
Additions 68.17 - - 68.17
Disposals - - - -
Balance as at 31.03.2020 12,487.89 387.76 3.87 12,879.52
RIGHT OF USE FREEHOLD LAND TEMPORARY TOTAL
ASSETS (BUILD- BUILDING
ING) STRUCTURE
Depreciation (Accumulated depreciation)
Balance as at 01.04.2018 514.26 - - 514.26
Charge for the year 310.22 - - 310.22
Disposals - - - -
Balance as at 31.03.2019 824.48 - - 824.48
Charge for the year 426.89 - - 426.89
Disposals - - - -
Balance as at 31.03.2020 1,251.37 - - 1,251.37

162 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

RIGHT OF USE FREEHOLD LAND TEMPORARY TOTAL

ASSETS (BUILD- BUILDING
ING) STRUCTURE
Net carrying Value as on 31.03.2019 8,602.47 387.76 3.87 8,994.09
Net carrying Value as on 31.03.2020 11,236.52 387.76 3.87 11,628.15
(i) Pursuant to an Agreement to Develop / License agreement with Rajasthan State Road Transport Corporation (RSRTC) the Holding Company
has developed a building (being Bus Terminal and Depot and Commercial Complex at Kota) on the land belonging to RSRTC. The license fee
payable to RSRTC are as follows :
Details of area/space to be used for shops/stalls or other License fee upto License fee after 36 License fee after 30 years for
occupants 36 months months upto the license a further period of 10 years
period of 30 years
For the space area 15 Sqm or more area ` 10/- per Sqm ` 50/- per Sqm per License fee effective as on
per month month with 10% Completion of 30 years and
cumulative increase every others terms & conditions will
year. remain unchanged.
For space less than 15 Sqm ` 150/- per ` 750/- per month in License fee effective as on
month in each each case with 10% completion of 30 years and
case. cumulative increase every others terms & conditions will
year. remain unchanged.
The expenditure (construction cost) incurred has been shown above under the main head “Investment Property” and sub-head “Right of
Use Assets (Building)”. The Holding Company has a right to Lease Right of Use Asset (Commercial Complex). The primary lease period of
Commercial complex is 30 years which can be extended for a further period of 10 years at the option of the Holding Company from the
date of completion of the project. Thereafter, the Commercial Complex will be handed over to RSRTC. The Holding Company does not have
any right to sell the building but only to sub-lease. The Holding Company has no further contractual obligations to purchase, construct or
develop the said investment property.
There is a contractual obligation on the Holding Company to maintain the commercial complex. The actual maintenance charges will be
recovered from the occupants of the commercial complex. Revenue from advertisement, outside the building shall be shared between
RSRTC & the Company in 50:50 ratio.
(ii) Information regarding income and expenditure of investment properties
(` in Lakhs)
Year Ending Year Ending
31.03.2020 31.03.2019
Rental Income 617.94 448.77
Less: direct operating expenses(including repairs and maintenance) that did not generate 420.53 562.84
rental income
Less: direct operating expenses(including repairs and maintenance) that generated rental 404.75 418.45
income
Profit/(loss) from investment properties before depreciation (207.34) (532.52)
Less: depreciation expense 426.89 310.22
Profit/ (loss) from investment properties after depreciation (634.22) (842.74)
(iii) Fair Value:
(` in Lakhs)
31.03.2020 31.03.2019
Freehold Land (Held by Subsidiary Companies) 1,928.50 1,948.50
Right of Use Assets 11,571.77 11,265.47
Fair value hierarchy and valuation technique
The fair value of investment property, being Building at Kota, has been determined by external, accredited independent registered valuer
having appropriate recognized professional qualification and recent experience in the location and category of the property being valued.
Fair value has been arrived at by using discounted cash flow method. The fair value measurement has been categorised as Level 3.
(iv) Also refer note No. 45 of leases.

Annual Report 2019-20 163

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

6 GOODWILL
(` in Lakhs)
COST OR DEEMED COST GOODWILL
Balance as at 01.04.2018 138.00
Additions -
Sales / Adjustments -
Balance as at 31.03.2019 138.00
Additions -
Sales / Adjustments -
Balance as at 31.03.2020 138.00
ACCUMULATED DEPRECIATION GOODWILL
Balance as at 01.04.2018 -
Depreciation Expenses -
Deductions / Adjustments -
Balance as at 31.03.2019 -
Depreciation Expenses -
Deductions / Adjustments -
Balance as at 31.03.2020 -
NET CARRYING VALUE GOODWILL
Net carrying Value as on 31.03.2019 138.00
Net carrying Value as on 31.03.2020 138.00

7 OTHER INTANGIBLE ASSETS

(` in Lakhs)
COST OR DEEMED COST COMPUTER SOFTWARE
Balance as at 01.04.2018 123.69
Additions 45.12
Sales / Adjustments -
Balance as at 31.03.2019 168.81
Additions 35.32
Sales / Adjustments -
Balance as at 31.03.2020 204.13
ACCUMULATED DEPRECIATION COMPUTER SOFTWARE
Balance as at 01.04.2018 45.51
Depreciation Expenses 27.35
Deductions / Adjustments -
Balance as at 31.03.2019 72.86
Depreciation Expenses 32.39
Deductions / Adjustments -
Balance as at 31.03.2020 105.25
NET CARRYING VALUE COMPUTER SOFTWARE
Net carrying Value as on 31.03.2019 95.95
Net carrying Value as on 31.03.2020 98.88

164 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

8 NON-CURRENT FINANCIAL ASSETS - LOANS

(Unsecured, considered good unless otherwise stated)

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Security Deposits 686.55 672.47
Employee Loans and Advances 0.50 2.97
Loan receivables which have significant increase in credit risk - -
Loan receivables - credit impaired - -
Total 687.05 675.44

9 TRADE RECEIVABLES (NON CURRENT)

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Trade receivables considered good - unsecured 10,392.18 7,717.50
Trade receivables which have significant increase in credit risk - -
Trade receivables - credit impaired 608.14 610.79
Total Trade Receivables 11,000.32 8,328.29
Less: Allowances for expected credit loss (608.14) (610.79)
10,392.18 7,717.50
(i) Refer Note 49 for details pertaining to ECL
(ii) No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other person. Nor any
trade or other receivables are due from firms or private companies in which any director is a partner, a director or a member.
(iii) Trade receivables have been hypothecated/pledged as security for borrowings/ working capital facilities, refer note 27 for details.

10 OTHER NON-CURRENT FINANCIAL ASSETS

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Unsecured, considered good:
Non-current deposits with banks (Refer note 17) 2,148.06 1,017.32
Interest accrued but not due on non-current bank deposits 106.62 74.59
Earnest Money Deposit 44.30 44.30
Other advances 165.43 165.43
Sub-total (A) 2,464.41 1,301.64
Unsecured , considered doubtful:
Advance others 27.51 27.51
Less: Provision for doubtful advances (27.51) (27.51)
Sub-total (B) - -
Total 2,464.41 1,301.64

Annual Report 2019-20 165

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

11 INCOME TAX AND DEFERRED TAX

A. COMPONENTS OF INCOME TAX EXPENSE
I. Tax Expense recognized to Statement of Profit and Loss:

(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
a. Current tax
Current Year Income Tax Expense 2,885.57 6,480.42
Adjustments/(credits) related to previous years - Value Added Tax - 529.24
Adjustments/(credits) related to previous years - Others(net) (23.31) (85.19)
Total (a) 2,862.26 6,924.47
a. Deferred Tax Charge / (Credit)
Relating to origination and reversal of temporary differences 353.12 (186.05)
Adjustments/(credits) related to previous years - Value Added Tax - (529.24)
Total (b) 353.12 (715.29)
Income tax expense reported in the Statement of Profit and Loss (a+b) 3,215.38 6,209.18

II. Tax on Other Comprehensive Income

(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
Deferred Tax Charge / (Credit)
(Gain)/loss on remeasurement of net defined benefit plans 0.59 (98.36)
Income tax expense reported in Other Comprehensive Income 0.59 (98.36)

B. RECONCILIATION OF TAX EXPENSE AND THE ACCOUNTING PROFIT MULTIPLIED BY INDIA’S DOMESTIC
TAX RATE :
(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
Accounting profit before income tax 9,654.53 17,940.73
Enacted tax rate (%) 25.168% 34.944%
Tax on accounting profit at above rate 2,429.85 6,269.21
Adjustments in respect of current income tax of previous years (23.31) (85.19)
Effect of different tax rate of subsidiaries 0.10 0.57
Non-deductible/(deductible) expenses for tax purposes 808.74 24.59
-CSR expenditure 17.13 3.87
-Depreciation on leasehold land 1.34 1.86
-Interest on Income tax provision 1.19 16.74
-Donation 1.59 0.84
-Effect of deferred tax balances due to the changes in Income tax rate from 34.944% to 792.49 -
25.168% *
- Other non-deductible/(deductible) expenses 2.99 1.66
-Deductible expenses for donation paid (7.99) (0.38)
Income tax expense reported in the Statement of Profit and Loss 3,215.38 6,209.18
* The Holding Company elected the option of lower tax rates allowed under section 115BAA of the Income Tax Act,1961 as introduced by the
Taxation Laws (Amendment) Ordinance 2019. Accordingly the re-measurement of accumulated deferred tax asset has resulted one-time additional
charge of ` 792.49 Lakhs which has been recognized in the statement of Profit and Loss in the financial year 2019-20.

166 Ahluwalia Contracts (India) Limited

 C. MOVEMENT IN DEFERRED TAX ASSETS AND LIABILITIES
(` in Lakhs)
Particulars As at Charge/ Charge/(Credit) As at Effect of Ind Charge/ Charge/(Credit) As at
01.04.2018 (Credit) in the in Other 31.03.2019 AS 116 as on (Credit) in the in Other 31.03.2020
Statement of Comprehensive 01.04.2019 Statement of Comprehensive
Profit and Loss Income Profit and Loss Income
Deferred tax liabilities
On Security Deposit 0.83 0.27 1.09 (0.49) 0.60
On Unbilled Revenue 152.39 6.10 158.49 (44.34) 114.15
Total deferred tax liabilities 153.21 6.37 - 159.58 - (44.83) - 114.75
Deferred tax assets
On property, plant and equipment including Right of Use 618.27 (83.37) - 534.90 (1,045.79) 172.71 (338.18)
On provision for doubtful debts and advances 400.12 43.54 - 443.65 (124.12) 319.54
On provision for compensated absences (Bonus) 301.07 59.63 - 360.70 (7.82) 352.88
On Gratuity and other employee benefits 186.85 (35.82) 98.36 249.39 (15.52) (0.59) 233.28
On Interest payable on VAT demand 305.64 - - 305.64 (85.51) - 220.13
On VAT demand - 529.24 - 529.24 (148.06) - 381.18
On discounting of Reliance Project (Ind AS) - - - - 189.11 - 189.11
On CCTV Project Warranty - - - - 15.10 - 15.10
On license fees of Kota Project 360.34 208.44 - 568.78 (568.78) - - -
On lease liabilities as per Ind AS 116 - - - - 1,493.33 (393.85) - 1,099.48
Total deferred tax assets 2,172.29 721.65 98.36 2,992.30 (121.24) (397.95) (0.59) 2,472.52
Deferred tax assets (Net) 2,019.07 715.29 98.36 2,832.72 (121.24) (353.12) (0.59) 2,357.77
Corporate Overview
Statutory Reports

Annual Report 2019-20

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)
Financial Statements

167
Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

12 NON-CURRENT TAX ASSETS

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Advance Income tax /TDS (net of provisions) 2,015.55 175.19
Total 2,015.55 175.19

13 OTHER NON-CURRENT ASSETS

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Contract Assets
Due on performance of future obligations
Retention money 6,014.25 3,043.27
Retention money - credit impaired 260.07 214.86
Less: Allowances for expected credit loss (260.07) (214.86)
Sub-total (A) 6,014.25 3,043.27
Unsecured, considered good:
Prepaid Expenses 573.56 291.88
Others 213.82 158.49
Sub-total (B) 787.38 450.37
Unsecured, considered doubtful:
Capital Advance 50.00 50.00
Less: Provision for doubtful advance (50.00) (50.00)
Sub-total (C) - -
Total 6,801.63 3,493.64
(i) Refer Note 49 for details pertaining to ECL
(ii) Retention money have been hypothecated/ pledged as security for borrowings/ working capital facilities, refer note 27 for details.

14 INVENTORIES (AT LOWER OF COST OR NET REALIZABLE VALUE)

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Raw Material (includes in transit ` 608.70 Lakhs Previous Year ` 1,194.53 Lakhs) 16,751.78 9,738.76
Inventory Properties (refer note (ii) below) 5,566.81 5,284.95
Less:Loss in value (252.74) (235.20)
Sub-total 5,314.08 5,049.75
Scrap 14.25 22.59
Total 22,080.11 14,811.10
(i) Inventories have been hypothecated/ pledged as security for borrowings, refer note 27 for details.
(ii) Inventory Properties :
Represents Properties/Flats (including under construction) acquired for sale in the ordinary course of business. Refer note 2.12 (b) of
Accounting Policies.
(a) Comprises (` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Opening Stock 5,284.95 5,499.55
Purchases (Payment to contractors/ builders) 835.41 2,381.53
Irrecoverable amount writen off / Loss in value 252.74 235.20
Cost of sales of Inventory property 553.55 2,596.13
Closing Stock 5,314.08 5,049.75
(b) Comprises flats (` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Registered in the name of the Company 3,164.79 2,258.40
Pending registration in the name of the Company 2,149.28 2,564.36
Under construction - 227.00
Total 5,314.08 5,049.75

168 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

15 TRADE RECEIVABLES (CURRENT)

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Trade receivables considered good - unsecured 49,334.28 51,781.75
Trade receivables which have significant increase in credit risk - -
Trade receivables - credit credit impaired 291.89 252.45
Total Trade Receivables 49,626.17 52,034.20
Less: Allowances for expected credit loss (291.89) (252.45)
49,334.28 51,781.75
(i) Refer Note 49 for details pertaining to ECL
(ii) Trade Receivables have been hypothecated/pledged as security for borrowings, refer note 27 for details.

16 CASH AND CASH EQUIVALENTS

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Cash-on-hand 63.33 48.30
Deposits with original maturity of less than 3 months 670.69 -
Balance with banks
-In current accounts 15,773.42 13,720.66
Total 16,507.44 13,768.96

17 BANK BALANCES OTHER THAN CASH & CASH EQUIVALENTS MENTIONED ABOVE
(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Balance with banks (A)
-In unpaid dividend account (i) 0.32 0.17
Bank Deposits (B)
Deposits with remaining maturity for less than 12 months 7,886.21 7,156.71
Deposits with remaining maturity for more than 12 months 2,148.06 1,017.32
Total (ii) 10,034.27 8,174.03
Less : Amount disclosed under non current financial assets (Refer note 10) 2,148.06 1,017.32
Sub-total (B) 7,886.21 7,156.71
Total (A+B) 7,886.53 7,156.88
(i) These balances are not available for use by the Holding Company as they represent corresponding unpaid dividend liabilities.
(ii) Deposits of ` 9,909.27 Lakhs (Previous year ` 5,637.24 Lakhs) are pledged with banks as margin for bank guarantees, letters of credit &
working capital loan, deposited with the court for legal case against the holding company and against earnest money with Clients.

18 CURRENT FINANCIAL ASSETS - LOANS

(Unsecured, considered good unless otherwise stated)

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Employee Loans and Advances* 113.78 53.07
Loan receivables which have significant increase in credit risk - -
Loan receivables - credit impaired - -
Total 113.78 53.07
* Includes ` 0.95 Lakhs (previous year ` 1.70 Lakhs) due from related party (refer note 46).

Annual Report 2019-20 169

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

19 OTHER CURRENT FINANCIAL ASSETS

(Unsecured, considered good unless otherwise stated)

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Earnest Money Deposit 674.58 1,365.84
Interest receivable on bank deposits 241.06 263.93
Other Receivables 205.26 137.63
Total 1,120.90 1,767.40

20 OTHER CURRENT ASSETS

(Unsecured, considered good unless otherwise stated)

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Contract Assets
Unbilled Revenue * 12,035.62 7,872.37
Due on performance of future obligations -
Retention money 11,433.30 13,118.65
Retention money - credit impaired 32.01 114.00
Less: Allowances for expected credit loss (32.01) (114.00)
Sub-total 23,468.92 20,991.02
Advance to Suppliers & Petty Contractors 1,500.45 703.47
Prepaid Expenses 768.15 621.16
Balance with Government Authority 5,781.29 1,496.99
Others 2.24 5.50
Total 31,521.05 23,818.14
* Classified as non financial asset as the contractual right to consideration is dependent on completion of contractual milestones.
(i) Refer Note 49 for details pertaining to ECL
(ii) Retention money have been hypothecated/ pledged as security for borrowings/ working capital facilities, refer note 27 for details.

21 EQUITY SHARE CAPITAL

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Authorised Capital
10,00,00,000, Equity Share of ` 2/- each 2,000.00 2,000.00
(Previous Year 10,00,00,000 Equity Share of ` 2/- each)
Issued, Subscribed & Paidup
6,69,87,560 Equity Shares of ` 2/- each fully paid up 1,339.75 1,339.75
(Previous Year 6,69,87,560 Equity Shares of ` 2/- each fully paid up )
Total 1,339.75 1,339.75

(i) Reconciliation of the number of Equity shares outstanding at the beginning and at the end of the reporting period

Particulars As at 31.03.2020 As at 31.03.2019

No. of Shares ` in Lakhs No. of Shares ` in Lakhs
At the beginning of the period 66987560 1,339.75 66987560 1,339.75
Add : Shares issued during the year - - - -
Outstanding at the end of the year 66987560 1,339.75 66987560 1,339.75

170 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

(ii) Terms / Rights attached to equity shares

The Holding Company has only one class of equity share having a par value of ` 2/- per share. Each equity shareholder is entitled for one vote
per share.
The Holding Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors of the Holding Company
is subject to the approval of the Members/Shareholders of the Holding Company in the ensuing Annual General Meeting.
As per records of the Holding Company, including its register of Shareholders/Members and other declarations received from shareholders
regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.
In the event of liquidation of the Holding Company, the holders of equity shares will be entitled to receive remaining assets of the Holding
Company, after distribution of all preferential amounts. This distribution will be in proportion to the number of equity shares held by the
shareholder.

(iii) Details of shareholders holding more than 5% shares in the Holding Company

Particulars As at 31.03.2020 As at 31.03.2019

No. of %age No. of %age
Shares of Holdings Shares of Holdings
Equity shares of ` 2/- each fully paid up
Mr. Bikramjit Ahluwalia Promoter 7994257 11.93 7961198 11.88
Mrs. Sudershan Walia Promoter 22252380 33.22 22252380 33.22
DSP Equity & Bond Fund Mutual Fund 6343273 9.47 6284417 9.38
Mr. Shobhit Uppal Promoter 4308000 6.43 4308000 6.43
Nalanda India Equity Fund Limited Body Corporate 3870102 5.78 3870102 5.78
As per records of the Holding Company including its register of shareholders/ members, the above share holding represents both legal and beneficial
ownership of shares.
(iv) Distribution made and proposed
(` in Lakhs)
Particulars For 31.03.2020 For 31.03.2019
Cash dividend on equity shares declared and paid:
Final dividend for the year ended on 31st March, 2019 @ ` 0.30 per share of face value of 200.96 200.96
` 2 each [31st March, 2018 : @ ` 0.30 per share of face value of ` 2 each]
Dividend Distribution Tax (DDT) on final dividend 41.31 41.31

(` in Lakhs)
Particulars For 31.03.2020 For 31.03.2019
Proposed dividend on equity shares:
Final dividend for the year ended on 31st March, 2020 NIL [31st March, 2019 @ ` 0.30 per - 200.96
share of face value of ` 2 each]
Dividend Distribution Tax (DDT) on proposed dividend - 41.31
Proposed dividend on equity shares is subject to approval at the annual general meeting and is not recognised as a liability (including DDT thereon)
as at balance sheet date.

22 OTHER EQUITY
(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Reserve and Surplus :
Securities Premium 5,061.00 5,061.00
General Reserve 3,272.97 3,272.97
Retained Earnings 70,829.18 64,270.06
Less :- Cash Dividend (Final) (Refer note 21 (iv)) (200.96) (200.96)
Less :- Dividend Distribution Tax (41.31) (41.31)
Total reserve and surplus 78,920.88 72,361.76
Other Comprehensive Income :
Equity Instruments through Other Comprehensive Income (net of tax) 22.35 22.35
Total Other Comprehensive Income 22.35 22.35
Total 78,943.23 72,384.11

Annual Report 2019-20 171

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

Nature and purpose of reserves

(i) Securities Premium
The amount received in excess of face value of the equity shares is recognised in Securities Premium. This can be utilized in accordance with
the provisions of the Companies Act, 2013.
(ii) General Reserve
This Reserve is created by an appropriation from one component of equity (generally retained earnings) to another, not being an item of Other
Comprehensive Income.
(iii) Retained Earnings
Retained earnings are the profits that has earned till date, less any transfer to General Reserve, dividends or other distributions paid to the
shareholder

23 NON CURRENT BORROWINGS

(` in Lakhs)
Particulars AS AT 31.03.2020 AS AT 31.03.2019
SECURED :-
Term Loans
From Banks 69.37 79.76
Less : Current maturity (Refer note 29) 26.01 43.36 17.44 62.32
Vehicle Loans
From Banks 18.13 7.42
Less : Current maturity (Refer note 29) 6.90 11.23 6.82 0.60
Total 54.59 62.92
As at March 31, 2020 - Security details
(i) Term Loan outstanding from HDFC Bank of ` 51.16 Lakhs against Machinery is secured by way of hypothecation of specified Machinery/
Equipment. The term loan bear interest rate 8.40%. The same is repayable in 59 monthly installments that commenced from 01.05.2018.
(ii) Term Loan outstanding from HDFC Bank of ` 11.16 Lakhs against Machinery is secured by way of hypothecation of specified Machinery/
Equipment. The term loan bear interest rate 8.40%. The same is repayable in 59 monthly installments that commenced from 05.06.2018.
(iii) Term Loan outstanding from HDFC Bank of ` 3.31 Lakhs against Machinery is secured by way of hypothecation of specified Machinery/
Equipment. The term loan bear interest rate 9.51%. The same is repayable in 12 monthly installments that commenced from 01.06.2019.
(iv) Term Loan outstanding from HDFC Bank of ` 3.73 Lakhs against Machinery is secured by way of hypothecation of specified Machinery/
Equipment. The term loan bear interest rate 9.51%. The same is repayable in 12 monthly installments that commenced from 01.06.2019.
(v) Vehicle Loan outstanding from HDFC Bank of ` 0.60 Lakhs is secured by way of hypothecation of specified vehicle. The term loan bear interest
rate 8.40%. The same is repayable in 36 monthly installments that commenced from 07.05.2017.
(vi) Vehicle loan outstanding from HDFC Bank of ` 17.53 Lakhs against Bus is secured by hypothecation of specified vehicle. The term loan bear
interest rate is 9.00%. The same is repayable in 36 monthly installments that commenced 05.11.2019.

As at March 31, 2019 - Security details

(i) Term Loan outstanding from HDFC Bank of ` 65.55 Lakhs against Machinery is secured by way of hypothecation of specified Machinery/
Equipment. The term loan bear interest rate 8.40%. The same is repayable in 59 monthly installments that commenced from 01.05.2018.
(ii) Term Loan outstanding from HDFC Bank of ` 14.20 Lakhs against Machinery is secured by way of hypothecation of specified Machinery/
Equipment. The term loan bear interest rate 8.40%. The same is repayable in 59 monthly installments that commenced from 05.06.2018.
(iii) Vehicle Loan outstanding from HDFC Bank of ` 7.42 Lakhs is secured by way of hypothecation of specified vehicle. The term loan bear interest
rate 8.40%. The same is repayable in 36 monthly installments that commenced from 07.05.2017.

24 OTHER NON-CURRENT FINANCIAL LIABILITIES

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Security deposits (Lease rent) 312.01 284.20
Lease License equalization - 1,506.37
Total 312.01 1,790.57

172 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

25 NON CURRENT PROVISIONS

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Provision for Gratuity (Refer note 43) 649.28 469.41
Total 649.28 469.41

26 OTHER NON-CURRENT LIABILITIES

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Contract Liability-
Mobilisation Advance 6,795.56 4,455.53
Deferred revenue - rental 5.71 18.26
Total 6,801.27 4,473.79

27 CURRENT BORROWINGS
(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Secured
Working Capital Loan from Banks 2,400.28 3,026.66
Unsecured
From related party (Refer note 46) 2,250.00 2,997.13
Total 4,650.28 6,023.79
Working Capital loans From various banks are secured by way of
- First pari-passu charge on all existing and future current assets of the holding company.
- Pari-passu charge on current assets / fixed assets to IDFC Bank Limited so as to provide 1.0x cover.
- Equitable mortgage of properties situated as B-21, Geetanjali Enclave, New Delhi owned by promoter director with Yes Bank Limited.
-P
 ledge of 1,02,71,380 No. of equity shares to Punjab & Sind bank, 20,00,000 equity shares to Bank of Maharashtra, 22,99,000 equity shares
with Yes Bank Limited, 7,55,000 equity shares with RBL Bank Limited and 5,40,000 equity shares with IDFC Bank Limited by promoter directors
and their relatives.
-P
 ersonal Guarantees of directors (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit Uppal (iii) Mr. Vikas Ahluwalia, and relative of the directors (iv) Mrs.
Sudershan Walia
- The working capital loan from Banks bear floating interest rate ranging from MCLR plus 0.75% to 2.90%.
- Loan against FDR from HDFC Bank amounting to ` 800 Lakhs carrying interest rate @ 8%.
- Unsecured loan is interest free and payable on demand.

28 TRADE PAYABLES
(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Total outstanding dues of Micro Enterprises and Small Enterprises (Refer note 42) 499.94 436.67
Total outstanding dues of creditors other than Micro Enterprises and Small Enterprises 51,809.79 42,415.82
Total 52,309.73 42,852.49

Annual Report 2019-20 173

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

29 OTHER CURRENT FINANCIAL LIABILITIES

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Current maturities of term loan from banks (Refer note 23) 26.01 17.44
Current maturities of vehicle loan from banks (Refer note 23) 6.90 6.82
Interest accrued on borrowings 0.58 0.67
Unpaid Dividend [Refer point(i)] 0.32 0.17
Lease License equalization - 112.94
Others
Interest payable on tax demands 894.77 894.66
Other payables to related parties(Refer note 46) 258.18 305.05
Other payables [Refer point(ii)] 3,111.84 2,377.61
Total 4,298.59 3,715.36
(i) To be transferred to Investor Education and Protection Fund as and when due.
(ii) Includes ` 23.93 Lakhs (previous year ` 23.93 Lakhs) due to related party (refer note 46).

30 OTHER CURRENT LIABILITIES

(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
Contract Liabilities
(i) Mobilisation Advance 13,918.71 10,097.05
(ii) Advance Against Material at Site 5,462.94 3,197.53
Sub-total 19,381.65 13,294.58
Advance from customers 58.80 -
Dues to Statutory Authorities 2,450.22 1,872.53
Deferred revenue - rental 15.57 21.72
Total 21,906.24 15,188.83

31 CURRENT PROVISIONS
(` in Lakhs)
Particulars As at 31.03.2020 As at 31.03.2019
For Gratuity (Refer note 43) 277.60 244.28
Total 277.60 244.28

32 REVENUE FROM OPERATIONS

(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
Construction Contract Revenue (A) 1,86,867.01 1,72,288.12
Other Operating Revenue (B)
Lease Rental Income [refer note 45(c)] 617.94 448.77
Sale of Scrap 547.75 707.44
Sale of Inventory Properties (Flats) 459.99 2,027.11
Total (B) 1,625.68 3,183.32
Total (A+B) 1,88,492.69 1,75,471.44

174 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

33 OTHER INCOME
(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
Interest Income on
Financial assets held at amortised cost
- Fixed deposits with banks (Tax deducted at source ` 80.00 Lakhs Previous Year ` 52.40 805.76 537.98
Lakhs)
- Others 180.80 251.29
Other non operating income
Rent - 3.94
Liabilities written back 51.57 166.71
Gain on sale of property, plant & equipment [Net of loss of ` 0.13 Lakhs (Previous Year ` 0.25 6.17 17.37
Lakhs)]
Total 1,044.30 977.29

34 COST OF MATERIAL CONSUMED

(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
Inventories at the beginning of the year 8,544.22 5,474.56
Add : Purchases 97,512.97 80,539.38
Less : Inventories at the end of the year 16,143.08 8,544.22
Cost of material consumed 89,914.11 77,469.72
Cost of sale of inventory property (Refer note 14) 553.55 2,596.13
Total 90,467.66 80,065.85

35 CONSTRUCTION EXPENSES
(` in Lakhs)
Particulars YEAR ENDING YEAR ENDING
31-03-2020 31-03-2019
Sub-Contracts 50,363.68 47,017.55
Professional Charges 1,018.71 826.61
Power & Fuel 3,102.52 3,125.13
Machinery & Shuttering Hire Charges 2,351.00 1,584.76
Machinery Repair & Maintenance 1,151.04 857.76
Commercial Vehicle Running & Maintenance 51.34 47.89
Testing Expenses 245.76 107.30
Insurance Expenses 345.62 332.58
Watch & Ward Expenses 1,129.16 1,010.52
Site Maintenance Expenses 150.05 26.48
Total 59,908.88 54,936.58

Annual Report 2019-20 175

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

36 EMPLOYEE BENEFIT EXPENSES

(` in Lakhs)
Particulars AS AT 31.03.2020 AS AT 31.03.2019
Staff Cost
Salaries and other benefits
(Including Directors Remuneration
` 392.10 Lakhs Previous Year ` 417.19 Lakhs) 10,662.33 9,291.84
Employees Welfare 451.33 461.48
Employer’s Contribution to Provident and Other Funds 463.08 323.21
Gratuity Expenses (Refer note 43) 235.33 11,812.07 208.08 10,284.61
Labour Cost
Labour Wages & other benefits 2,338.86 2,495.94
Contribution to Provident & Other Funds 179.33 226.60
Labour Welfare 1,101.58 3,619.77 1,320.92 4,043.46
Total 15,431.84 14,328.07

37 FINANCE COSTS
(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
a. Interest
i. On Financial liabilities measured at amortised cost:
- on Term Loans 8.02 7.17
- on Working Capital & Others 308.25 416.17
- on Mobilisation Advance 1,526.65 535.59
ii. Interest on lease liability 392.43 -
iii. On Unwinding of discount resulting in increase in financial liabilities (Security deposit) 23.43 19.98
iv. On net defined benefit liability 52.81 39.03
v. On Income Tax 4.74 47.92
vi. Interest on Tax demand (Indirect tax) - 14.07
b. Other borrowing costs:
i. Upfront/Processing fee 128.51 117.16
ii. Bank Charges and guarantee commission 1,054.93 725.31
Total 3,499.77 1,922.40

38 DEPRECIATION AND AMORTISATION EXPENSES

(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
Depreciation on Property, Plant & Equipment 2,722.55 2,418.22
Depreciation on Investment Property 426.89 310.22
Depreciation on Right of Use Assets 5.32 -
Amortisation of Intangible Assets 32.39 27.35
Total 3,187.15 2,755.79

176 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

39 OTHER EXPENSES
(` in Lakhs)
Particulars Year Ending Year Ending
31.03.2020 31.03.2019
Electricity & Water Charges 66.38 53.82
Rent 588.79 427.73
Travelling & Conveyance Expenses 374.31 321.89
Professional Charges 818.27 651.10
Repairs & Maintenance : -
Building 1.30 13.26
Others 314.40 221.12
Vehicle Running & Maintenance 259.73 212.21
Postage, Telegram and Telephone Expenses 67.07 61.29
Printing and Stationery 153.05 144.99
Advertisement 54.30 25.77
Business Promotion 64.11 28.35
Charity & Donation (other than political parties) 6.32 2.41
Insurance Charges 53.32 47.35
Watch & Ward Expenses 57.53 48.64
Rates & Taxes 66.72 50.09
Workman Compensation 7.00 4.10
Exchange Fluctuation (Net) 18.13 28.31
Auditor's Remuneration (refer note 44) 35.60 26.96
Bad Debts Written off 4,214.16 979.95
Provision for doubtful debts - 124.59
License fee RSRTC - 643.74
CSR Expenditure (refer note 51) 68.07 11.07
Irrecoverable amount writen off / Loss in value 17.54 235.20
Directors Sitting Fees 8.00 12.60
Miscellaneous Expenses 73.06 122.76
Total 7,387.16 4,499.31

40 Contingent liabilities and commitments (to the extent not provided for)
(` in Lakhs)
Particulars As at As at
31st March, 2020 31st March, 2019
i) Contingent liabilities
a) Claims against the company not Acknowledged as debts
(i) Value Added Tax liability 987.29 1,092.17
(ii) Excise duty demand 665.75 474.01
(iii) Service tax demand on alleged :-
-Wrong availment of abatement on account of free supply of material by the Client 598.98 598.98
-Composition scheme 1,193.76 1,193.76
-Exempted projects 2,076.70 2,076.70
-Others 1,013.09 1,269.37
(iv) Provident fund demand 5,457.34 5,457.34
(v) Demand of stamp duty on Real Estate Project 57.42 57.42
(vi) Other Claims not Acknowledged as debts against the company 3,604.33 3,594.99
b) Guarantees
Guarantees given by the bankers on behalf of the Group :-
Performance 53,276.89 42,806.68
Other 56,289.49 45,605.10
Indemnity Bonds/Performance Bonds/ Surety Bonds / Corporate guarantees given to 2,172.72 2,199.80
clients
c) Other money for which the company is contingently liable - -

Annual Report 2019-20 177

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

The Group does not expect any reimbursement in respect of the above contingent liabilities and it is not practicable to estimate the timings of
the cash outflows, if any. In respect of the matters above resolution of the arbitration/ appellate proceedings are pending and it is not probable
that an outflow of resources will be required to settle the above obligations/claims.
Based on discussions with the advocates & consultants, the Group believes that there are fair chance of decisions in its favour in respect of all
items listed in (a)(i) to (a)(vi) above. The replies/appeals have been filed before appropriate authorities/Courts. Disposal is awaited. The Group
does not expect any outflow of economic resources in respect of the above and therefore no provision is made in respect thereof.
ii) There are numerous interpretative issues relating to the Supreme Court Judgement on Provident Fund (PF) dated 28th February, 2019. As
a matter of caution, the Group recognise liability on a prospective basis effective from April 2019. The Group will update its provision, on
receiving further clarity on the subject.
iii) Commitments
(` in Lakhs)
Particulars As at 31st As at 31st
March, 2020 March, 2019
Estimated amount of contracts remaining to be executed on capital account and not 0.71 424.91
provided for
Estimated amount of contracts remaining to be executed on other than capital account and 2,107.42 239.78
not provided for

41 ‘Non-current trade receivables’ and retention money include ` 7,910.72 Lakhs (31st March 2019: ` 8,829.49 Lakhs) outstanding as at 31st
March 2020 based on the terms and conditions implicit in the contracts and other receivables in respect of closed/suspended projects. These
claims are mainly in respect of cost over-run arising due to additional work, caused delays, suspension of projects, deviation in design and
change in scope of work and other aspects; for which Group is at various stages of negotiation/discussion with the clients or under arbitration.
In certain cases customers have lodged counter claims against the Group. Considering the contractual tenability, progress of negotiation/
discussion with the client, the management is confident of recovery of these receivables.

42 The Group has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium
Enterprises Development Act, 2006 (MSMED Act, 2006). Based on the information available with the Group, the balance due to Micro Small
Enterprises as defined under the MSMED Act, 2006 is as under:

Details of dues to Micro Small & Medium Enterprises Development (MSMED) Act, 2006 As at 31st As at 31st
March, 2020 March, 2019
i) The principal amount & the interest due thereon remaining unpaid at the end of the
year :
Principal Amount 499.94 436.67
Interest Due thereon 44.72 6.42
ii) Payments made to suppliers beyond the appointed day during the year:
Principal Amount 88.76 829.47
Interest Due thereon 1.19 19.80
iii) The amount of interest due and payable for the period of delay in making payment - -
(which have been paid but beyond the appointed day during the year) but without
adding the interest specified under Micro Small and Medium Enterprise Development
Act, 2006
iv) The amount of interest accrued and remaining unpaid at the end of the year; and 45.90 26.22
v) The amount of 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
enterprise for the purpose of disallowance as a deductible expenditure under section
23 of the Micro Small and Medium Enterprise Development Act, 2006.

The information has been given in respect of such vendor to the extent they could be identified as Micro and Small Enterprises as per MSMED
Act, 2006 on the basis of information available with the Group and in cases of confirmation from vendors, interest for delayed payments has
not been provided amounting to ` 45.90 Lakhs (31st March, 2019 - ` 26.22 Lakhs).

178 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

43 Employee Benefits
Refer note 2.13 for accounting policy on Employee Benefits.

A. Defined contribution plans

i. Provident Fund/Employees’ Pension Fund
ii. Employees’ State Insurance
The Group has recognised following amounts as expense in the Statement of Profit and Loss :
(` in Lakhs)
Particulars For the Year ended For the Year ended
31st March, 2020 31st March, 2019
Included in contribution to Provident and Other Funds (Refer Note 36)
Employer’s contribution to Provident Fund/Employees’ Pension Fund 642.42 549.81
Included in Employee and Labour Welfare (Refer Note 36)
Contribution paid in respect of Employees’ State Insurance Scheme 58.56 145.89
B. Defined Benefit Plan
Gratuity: The Group has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on
departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded.
(i) Balance Sheet
The assets, liabilities and surplus/(deficit) position of the defined benefit plans at the Balance Sheet date were:
(` in Lakhs)
Defined Benefit Plan- Gratuity (Funded)
As at 31st As at 31st
March, 2020 March, 2019
Present value of obligation 2,285.91 2,020.41
Fair value of plan assets 1,359.03 1,306.72
(Asset)/Liability recognised in the Balance Sheet 926.88 713.69
Net liability-current (Refer Note 31 ) 277.60 244.28
Net liability-non-current (Refer Note 25) 649.28 469.41
926.88 713.69

(ii) Movements in Present Value of Obligation and Fair Value of Plan Assets
(` in Lakhs)
Plan Assets Plan Obligation Total
As at April 01, 2018 920.04 1,454.76 534.71
Current service cost - 208.08 208.08
Past service cost - - -
Interest cost - 106.20 106.20
Interest income 67.16 - (67.16)
Return on plan assets excluding interest income 22.97 - (22.97)
Actuarial (gain)/loss arising from changes in demographic assumptions - - -
Actuarial (gain)/loss arising from changes in financial assumptions - (12.46) (12.46)
Actuarial (gain)/loss arising from experience adjustments - 316.91 316.91
Employer contributions 349.62 - (349.62)
Employee contributions - - -
Assets acquired/ (settled) - - -
Benefit payments (53.09) (53.09) -
As at 31st March, 2019 1,306.72 2,020.41 713.69
As at April 01, 2019 1,306.72 2,020.41 713.69
Current service cost - 235.33 235.33
Past service cost - - -
Interest cost - 149.51 149.51
Interest income 96.70 - (96.70)
Return on plan assets excluding interest income 0.14 - (0.14)
Actuarial (gain)/loss arising from changes in demographic assumptions - (11.71) (11.71)
Actuarial (gain)/loss arising from changes in financial assumptions - (390.60) (390.60)

Annual Report 2019-20 179

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

Actuarial (gain)/loss arising from experience adjustments - 400.11 400.11

Employer contributions 72.61 - (72.61)
Employee contributions - - -
Assets acquired/ (settled) - - -
Benefit payments (117.13) (117.13) -
As at 31st March, 2020 1,359.03 2,285.91 926.88
(iii) Statement of Profit and Loss
The charge to the Statement of Profit and Loss comprises: (` in Lakhs)
Defined Benefit Plan- Gratuity (Funded)
Year ended Year ended
31st March, 2020 31st March, 2019
Expenses recognised in the Statement of Profit and Loss for the year
Employee Benefit Expenses :
Current service cost 235.33 208.08
Past service cost - -
Finance costs :
Interest cost 149.51 106.20
Interest income (96.70) (67.16)
Net impact on profit (before tax) 288.15 247.12
Recognised in other comprehensive income for the year
Remeasurement of the net defined benefit plans:
Actuarial (gain)/loss arising from changes in demographic assumptions (11.71) -
Actuarial (gain)/loss arising from changes in financial assumptions (390.60) (12.46)
Actuarial (gain)/loss arising from experience adjustments 400.11 316.91
Return (gain)/loss on plan assets excluding interest income (0.14) (22.97)
Net impact on other comprehensive income (before tax) (2.35) 281.49
(iv) Assets
The fair value of plan assets at the Balance Sheet date for the defined benefit plans for each category are as follows:
Defined Benefit Plan- Gratuity (Funded)
As at As at
31st March, 2020 31st March, 2019
The major categories of plan assets as a percentage of total
Insurer managed funds 100% 100%
The Trustees have taken policy from Life Insurance Corporation of India (LIC) and pays premium. LIC in turn manages the assets
which is within the permissible limits prescribed in the insurance regulations. The Group does not forsee any material risk from these
investments.
(v) Assumptions
Defined Benefit Plan- Gratuity (Funded)
As at As at
31st March, 2020 31st March, 2019
Financial/Economic Assumptions
Discount rate (per annum) 6.70% 7.40%
Salary escalation rate (per annum) 5.00% 8.00%
Demographic Assumptions
Retirement age 85 years- For Bikramjit 80 years- For Bikramjit
Ahluwalia Ahluwalia
60 years- For all others 60 years- For all others
Mortality table Indian Assured Lives Indian Assured Lives
Mortality (2012-14) Mortality (2006-08) Ult.
Ult.
Withdrawal Rates
Ages (years)
All ages 7% per annum 8% per annum

180 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

Notes:-
(i) The actuarial valuation of plan assets and the present value of the defined benefit obligation were carried out as at 31st March,
2020. The present value of the defined benefit obligation and the related current service cost and past service cost, were measured
using the Projected Unit Credit Method.
(ii) Discount rate is based on the prevailing market yields of Indian Government securities as at the Balance Sheet date for the
estimated term of the obligations.
(iii) The salary escalation rate is arrived after taking into consideration the inflation, seniority, promotion and other relevant factors on
long term basis.

(vi) Sensitivity Analysis

The sensitivity of the overall plan obligations to changes in the key assumptions are: (` in Lakhs)
Defined Benefit Plan- Gratuity
As at 31st March, 2020 As at 31st March, 2019
Change in Change in Change in Change in Defined
assumption Defined Benefit assumption Benefit Obligation
Obligation
Discount rate (per annum) -Increase 1.00% (140.32) 1.00% (116.87)
-Decrease 1.00% 157.70 1.00% 131.58
Salary escalation rate (per annum) -Increase 1.00% 158.81 1.00% 129.53
-Decrease 1.00% (143.75) 1.00% (117.28)
The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at
the end of the year and may not be representative of the actual change. It is based on a change in the key assumption while holding
all other assumptions constant. When calculating the sensitivity to the assumption, the same method used to calculate the liability
recognised in the Balance Sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did
not change compared with the previous year.

(vii) Maturity profile of defined benefit obligation

(` in Lakhs)
As at As at
31st March, 2020 31st March, 2019
Weighted average duration of the defined benefit obligation Expected benefit 10 years 10 years
payments within next-
I year 217.60 422.14
II year 233.67 140.67
III year 178.10 156.51
IV year 169.30 119.76
V year 297.35 114.95
thereafter 1,189.89 1,066.38
Expected contribution to the defined benefit plan (Gratuity) for the next annual reporting period ` 277.60 Lakhs (31st March, 2019 : ` 244.28
Lakhs)

44 STATUTORY AUDITORS’ REMUNERATION

(Net of GST)
The charge to the Statement of Profit and Loss comprises: (` in Lakhs)
S. Particulars For the year ended For the year ended
No. 31st March, 2020 31st March, 2019

(i) Statutory Audit / Limited Review Fee 29.35 20.60

(ii) Tax Audit Fee 4.00 4.00
(iii) Certification & other matters 0.73 0.98
(iv) Out of pocket expenses 1.52 1.39
Total 35.60 26.96

Annual Report 2019-20 181

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

45 Leases
(a) Change in Accounting Policy
Except as specified below, the Group has consistently applied the accounting policies to all periods presented in this financial statement.
The Group has applied Ind AS 116 with the date of initial application of 1st April, 2019. As a result, the Group has changed its
accounting policy for lease contracts as detailed below.
The Group has applied Ind AS 116 using the modified retrospective approach, under which the cumulative effect of initial application is
recognized in retained earnings as at 1st April, 2019. The impact of change in accounting policy on account on adoption of Ind AS 116
is as follows :
(` in Lakhs)
Increase in lease liability by 1,580.14
Increase in rights of use by 3,292.00
Increase/(Decrease) in Deferred tax assets by (121.24)
Increase/(Decrease) in Retained Earnings by 360.49
Increase in finance cost by 930.90
Increase in depreciation by 299.22
(` in Lakhs)
Lease commitments as at 31 March 2019 1,619.32
Add/(less): Contracts reassessed as lease contracts 2,511.04
Add/(less): adjustments on account of extension/termination -
Lease liabilities as on 1 April 2019 4,130.36
Current Lease Liabilities 165.91
Non-Current Lease Liabilities 3,964.45
Right of use assets of ` 2,992.77 Lakhs and lease liabilities of ` 2,511.04 Lakhs have been recognised as on 1st April 2019.

(b) Group as a Lessee

(i) T
 he Holding Company has developed Commercial Complex (Right of Use) under license arrangement with RSRTC- (Refer Note No.
5). The Holding Company has a right to Sub-lease Commercial Complex.
(ii) The Group has taken various residential, office and warehouse premises under operating lease agreements. These are generally
not non-cancellable and are renewable by mutual consent. There are no restrictions imposed by Lease Agreement. There are no
subleases.
The disclosure with respect to the said non-cancellable lease are as follows :
i) Carrying value of right of use assets at the end of the reporting period by class :-
(` in Lakhs)
Particulars Lands Investment Properties Total
Balance as at 1st April 2019 - 8,602.47 8,602.47
Impact on account of adoption of Ind AS-116 (Refer note 3, 4 & 5) 336.82 2,992.77 3,329.59
Additions during the year - 68.17 68.17
Depreciation Charge for the year 5.32 426.89 432.20
Balance as at 31st March 2020 331.50 11,236.52 11,568.03

ii) The following is the movement in lease liabilities during the year ended March 31, 2020:
(` in Lakhs)
Particulars Total
Lease liabilities as on 1 April 2019 4,130.36
Add : Additions -
Add : Finance cost accrued during the period 392.43
Less : Deletions -
Less : Payment of lease liabilities 154.24
Lease liabilities as on 31 March 2020 4,368.55
Current Lease Liabilities 182.50
Non-Current Lease Liabilities 4,186.05

iii) Maturity analysis of lease liabilities :

(` in Lakhs)
Maturity analysis – Contractual undiscounted cash flows As at 31st As at 31st
March, 2020 March, 2019
Not later than one year 182.51 121.09
Later than one year and not later than five years 931.71 770.01
More than five years 17,334.54 17,844.66
Total undiscounted lease liabilities 18,448.75 18,735.75

182 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

iv) Amounts recognised in Statement of profit or loss :

(` in Lakhs)
Particulars As at 31st As at 31st
March, 2020 March, 2019
Interest on lease liabilities 392.43 -
Expenses relating to short-term leases (Rent) 588.79 427.73
Expenses relating to leases of low-value assets, excluding short-term leases of low value assets - -

v) 
The Group has entered into leases for lands. These leases are generally for a period ranging 90 years to 99 years. No part of the land
has been sub leased. Except for the initial payment, there are no material annual payments for the aforesaid leases. Refer Note 3 & 4
for carrying value.

(c) Group as a Lessor

Operating Lease:
The Group has given Right of Use Asset (Commercial Complex) on sublease under non-cancellable operating lease agreements. The disclosure
with respect to the said non-cancellable lease are as follows :
(` in Lakhs)
Particulars As at 31st As at 31st
March, 2020 March, 2019
(i) Operating sub-lease receipts recognised in the Statement of Profit and Loss 366.59 448.77
(ii) Operating lease income relating to variable lease payments that do not depend on an index or a rate 251.35 -
Total operating lease revenue 617.94 448.77
(iii) Future minimum rental receivables under non-cancellable operating lease
[Contractual undiscounted cash flows]
Not later than one year 595.27 543.78
Later than one year and not later than five years 2,507.48 2,460.82
More than five years 7,596.21 7,562.75

46 Related Party Disclosures

(i) Names of related parties and nature of relationships: (as ascertained by management)

a) Key managerial personnel:

Mr. Bikramjit Ahluwalia Chairman & Managing Director
Mr. Shobhit Uppal Deputy Managing Director
Mr. Vinay Pal  Whole time Director in Holding Company till 31.05.2019 and Director in Subsidiary
Companies
Mr. Vikas Ahluwalia Whole time Director in Holding Company and Director in Subsidiary Companies
Mr. Sanjiv Sharma Whole time Director in Holding Company (w.e.f. 01.08.2019)
Mrs. Mohinder Sahlot Independent Non-Executive Director
Mr. Arun Kumar Gupta Independent Non-Executive Director
Mr. S.K. Chawla Independent Non-Executive Director
Mr. Rajender Prashad Gupta Independent Non-Executive Director (w.e.f. 24.07.2019)
Dr. Sushil Chandra Independent Non-Executive Director
Mr. Satbeer Singh Chief Financial Officer
Mr. Vipin Kumar Tiwari Company Secretary

b) Relative of key managerial personnel & Relationship :

Mrs. Sudershan Walia Wife of Chairman & Managing Director
Mrs. Rohini Ahluwalia Daughter of Chairman & Managing Director
Mrs. Rachna Uppal Wife of Deputy Managing Director
Mr. Vikas Ahluwalia Son of Chairman & Managing Director
Mrs. Mukta Ahluwalia Daughter of Chairman & Managing Director

c) Enterprises owned and controlled by Key management personnel and by their relatives :
M/s. Ahluwalia Construction Group (Proprietor Mr. Bikramjit Ahluwalia)
M/s. Tidal Securities Private Limited

Annual Report 2019-20 183

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

(ii) Transactions with related parties during the year :

(` in Lakhs)
Nature of Transactions Nature of Relationship For the year ended For the year ended
31st March, 2020 31st March, 2019
Rent paid
Sudershan Walia Relative of Key 54.00 54.00
Rachna Uppal Management Personnel 12.00 12.00
Rohini Ahluwalia - 7.20
Mukta Ahluwalia 6.00 6.00
Ahluwalia Construction Group Enterprises owned and 3.00 3.00
controlled by management
personnel and by their
relatives
Dividend paid
Bikramjit Ahluwalia Key Management 23.98 23.88
Shobhit Uppal Personnel 12.92 12.92
Vikas Ahluwalia 0.10 0.10
Sudershan Walia Relative of Key 66.76 66.76
Rachna Uppal Management Personnel 3.68 3.68
Rohini Ahluwalia 8.95 8.95
Mukta Ahluwalia 0.10 0.10
Tidal Securities Private Limited Enterprises owned and 0.08 0.08
controlled by management
personnel and by their
relatives
Unsecured Loan taken and interest paid

Bikramjit Ahluwalia
Unsecured Loan Taken Key Management - 1,620.00
Repaid Personnel 747.13 300.00
Interest Paid - -
Vikas Ahluwalia

Unsecured Loan Key Management Per- - 19.00

sonnel
Loan given and interest received
Vipin Kumar Tiwari
Loan Given Key Management 3.02 1.60
Repaid Personnel 3.02 2.90
Interest received 0.03 0.07
Satbeer Singh
Loan Given Key Management 1.55 5.06
Repaid Personnel 2.30 4.03
Interest received 0.16 0.15
Managerial Remuneration
Bikramjit Ahluwalia Key Management Per-
- Short-term employee benefits sonnel 126.00 126.00
- Post-employment benefits - -
- Other long-term benefits - -
- Termination benefits* 234.79 243.57
Shobhit Uppal
- Short-term employee benefits 168.00 168.00
- Post-employment benefits - -
- Other long-term benefits - -
- Termination benefits* 192.83 208.44
Vinay Pal
- Short-term employee benefits 10.90 63.19
- Post-employment benefits - -
- Other long-term benefits - -
- Termination benefits* - 28.45

184 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

(` in Lakhs)
Nature of Transactions Nature of Relationship For the year ended For the year ended
31st March, 2020 31st March, 2019
Vikas Ahluwalia Key Management - -
Personnel
- Short-term employee benefits 60.00 60.00
- Post-employment benefits - -
- Other long-term benefits - -
- Termination benefits* 3.92 2.20
Sanjiv Sharma
- Short-term employee benefits 27.20 -
- Post-employment benefits - -
- Other long-term benefits - -
- Termination benefits* 1.28 -
Mohinder Kaur Sahlot
- Director Sitting Fees 2.20 3.20
Arun Kumar Gupta
- Director Sitting Fees 2.40 3.20
S.K. Chawla
- Director sitting fees - 3.00
Sushil Chandra
- Director Sitting Fees 2.40 3.20
Rajender Prasad Gupta
- Director Sitting Fees 1.00 -
Satbeer Singh
- Short-term employee benefits 30.31 29.30
- Post-employment benefits - -
- Other long-term benefits - -
- Termination benefits* 6.89 5.85
Vipin Kumar Tiwari
- Short-term employee benefits 20.64 18.26
- Post-employment benefits 1.15 1.17
- Other long-term benefits - -
- Termination benefits* 9.32 7.11
* Termination benefits (Gratuity are considered as per
Actuarial Valuation Report)

Annual Report 2019-20 185

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

(iii) Balances Outstanding :

(` in Lakhs)
Particulars Nature of As at 31st As at 31st
Relationship March, 2020 March, 2019
Loan due to Directors
Bikramjit Ahluwalia Key Management 2,250.00 2,997.13
Vikas Ahluwalia Personnel 23.93 23.93
Loan due from Key Management Personnel
Satbeer Singh Key Management 0.95 1.70
Personnel
Due to related parties (Remuneration, Rent & Interest)
Bikramjit Ahluwalia - Remuneration Key Management 97.35 50.42
Shobhit Uppal - Remuneration Personnel 59.38 50.61
Vinay Pal - Remuneration - 2.95
Vikas Ahluwalia - Remuneration 16.01 23.76
Sudershan Walia - Rent Relative of Key 43.74 150.00
Sanjiv Sharma - Remuneration Management 2.25 -
Personnel
Rachna Uppal - Rent 26.82 13.86
Rohini Ahluwalia - Rent 12.62 13.45
Pledge of Shares
Bikramjit Ahluwalia Key Management 87.80 87.80
43,90,000 No. of shares of ` 2 each Personnel
[March 31, 2019- 43,90,000 No. of shares of ` 2 each]
Sudershan Walia Relative of Key 229.51 229.51
1,14,75,380 No. of shares of ` 2 each Management
[March 31, 2019- 1,14,75,380 No. of shares of ` 2 each] Personnel
-No amount has been written off or provided for in respect of transactions with the related parties.
(iv) Also refer note 23 & 27 as regards guarantees & mortgage of their immovable property received from key management personnel and their
relatives in respect of borrowings availed by the Group.

47 Earnings per share (EPS)

(` in Lakhs)
Particulars For the year ended For the year ended
31st March, 2020 31st March, 2019
Net Profit/(Loss) for calculation of Basic/Diluted EPS (` in Lakhs) 6,439.15 11,731.55
Weighted average number of shares in calculating Basic EPS and Diluted EPS 6,69,87,560 6,69,87,560
Nominal Value of each share 2 2
Earning Per Share:
Basic (`) 9.61 17.51
Diluted (`) 9.61 17.51
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Group by the weighted average number of
equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Group by
the weighted average number of equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued
on conversion of all the dilutive potential Equity shares into Equity Shares.

186 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

48 Disclosure pursuant to Ind AS 115 “Revenue from Contracts with Customers”

(a) Disaggregation of revenue into operating segments and geographical areas for the year ended 31st March, 2020:
(` in Lakhs)
Segment Revenue as per Ind AS 115 Total as per Profit and loss /
Domestic Foreign Total Segment Reporting
Construction Contract* 1,87,414.76 - 1,87,414.76 1,87,414.76
Lease Rental 617.94 - 617.94 617.94
Others (Inventory property) 459.99 - 459.99 459.99
Total 1,88,492.69 - 1,88,492.69 1,88,492.69
* Includes scrap sale of ` 547.75 Lakhs.
Disaggregation of revenue into operating segments and geographical areas for the year ended 31st March, 2019:
(` in Lakhs)
Segment Revenue as per Ind AS 115 Total as per Profit and loss /
Domestic Foreign Total Segment Reporting
Construction Contract* 1,72,995.56 - 1,72,995.56 1,72,995.56
Lease Rental 448.77 - 448.77 448.77
Others (Inventory property) 2,027.11 - 2,027.11 2,027.11
Total 1,75,471.44 - 1,75,471.44 1,75,471.44
* Includes scrap sale of ` 707.44 Lakhs.
(b) Out of the total revenue recognised under Ind AS 115 during the year, ` 1,86,867.00 Lakhs (P.Y. ` 1,72,288.12 Lakhs) is recognised over a
period of time and ` 1,625.69 Lakhs ( P.Y. ` 3,183.33 Lakhs) is recognised at a point in time.
(c) Movement in Expected Credit Loss during the year:
Provision on Trade Receivables covered under Ind AS 115

(` in Lakhs)
Particulars 31st March, 2020 31st March, 2019
Opening balance 1,192.10 1,067.52
Ind AS 115 transition impact - -
Changes in allowance for expected credit loss :
Provision /(reversal) of allowance for expected credit loss 4,214.16 1,104.54
Write off as bad debts (4,214.16) (979.95)
Closing balance 1,192.10 1,192.10

(d) Contract Balances :

(i) Movement in Contract Balances during the year:
(` in Lakhs)
Particulars 31st March, 2020 31st March, 2019 Net Increase/(Decrease)
Contract Assets 29,483.17 24,034.29 5,448.88
Contract Liabilities 26,177.22 17,750.12 8,427.10
Net Contract Balances 3,305.95 6,284.17 (2,978.22)
(ii) Revenue recognised during the year from opening balance of contract liabilities amounts to ` 16,101.74 Lakhs (P.Y. ` 9,312.24
Lakhs).
(e) Cost to obtain the contract :
(i) Amount of amortisation recognised in Profit and Loss during the year ` Nil (P.Y. ` Nil).
(ii) Amount recognised as assets as at March 31, 2020: ` Nil (P.Y. ` Nil).

Annual Report 2019-20 187

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

(f) Reconciliation of contracted price with revenue during the year :

(` in Lakhs)
Particulars 31st March, 2020 31st March, 2019
Opening contracted price of orders* 10,65,837.55 8,30,466.21
Add :
Fresh orders/change orders received (net) 3,57,805.83 4,69,981.38
Increase due to additional consideration recognised as per contractual terms 4,737.31 27,855.14
Increase due to exchange rate movements (net) - -
Less :
Orders completed during the year 1,33,715.95 2,27,769.77
Projects suspended/stopped during the year 59,565.93 34,695.40
Closing contracted price of orders* 12,35,098.81 10,65,837.55
Total Revenue recognised during the year 1,86,867.01 1,72,288.12
Less: Revenue out of orders completed during the year 11,820.11 11,731.88
Revenue out of orders under execution at the end of the year (I) 1,75,046.90 1,60,556.24
Revenue recognised upto previous year (from orders pending completion at the end of 3,50,695.41 3,14,404.92
the year) (II)
Decrease due to exchange rate movements (net) (III) - -
Balance revenue to be recognised in future viz. Order book (IV) 7,09,356.49 5,90,876.39
Closing contracted price of orders* (I+II+III+IV) 12,35,098.81 10,65,837.55
*including full value of partially executed contracts.

(g) Remaining performance obligations: The aggregate amount of transaction price allocated to remaining performance obligations and expected
conversion (as estimated by the management) of the same into revenue is as follows:

(` in Lakhs)
Particulars Total Expected conversion in revenue
Upto 1 Year From 1 to 2 From 2 to 3 From 3 to 4 Beyond 4 years
years years years
Transaction price
allocated to the remaining
performance obligation
31st March, 2020 7,09,356.49 1,32,952.79 2,22,061.02 2,30,264.22 1,24,078.46 -
31st March, 2019 5,90,876.39 1,83,732.04 1,77,291.45 1,66,666.20 63,186.70 -

49 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT POLICIES AND OBJECTIVES

I Financial Instruments - Accounting classification, fair values and fair value hierarchy :
The category wise details as to the carrying value and fair value of the Group’s financial assets and financial liabilities including their levels in
the fair value hierarchy are as follows:
(` in Lakhs)
Particulars Levels Carrying values as at Fair values as at
31st March, 2020 31st March, 2019 31st March, 2020 31st March, 2019
1. Financial assets at
a. Fair value through Profit & Loss - - - -
b. Fair value through other comprehensive - - - -
income
c. Amortised cost
Trade receivables Level 2 59,726.46 59,499.25 59,726.46 59,499.25
Cash & cash equivalents Level 1 16,507.44 13,768.96 16,507.44 13,768.96
Bank balances other than Cash & cash Level 1 7,886.53 7,156.88 7,886.53 7,156.88
equivalents

188 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

(` in Lakhs)
Particulars Levels Carrying values as at Fair values as at
31st March, 2020 31st March, 2019 31st March, 2020 31st March, 2019
Loans Level 2 800.82 728.51 800.82 728.51
Other financial assets Level 2 3,585.31 3,069.04 3,585.31 3,069.04
2. Financial liabilities
a. Fair value through Profit & Loss - - - -
b. Fair value through other comprehensive - - - -
income
c. Amortised cost
Borrowings Level 2 4,704.86 6,086.70 4,704.86 6,086.70
Trade payables Level 2 52,309.73 42,852.49 52,309.73 42,852.49
Lease liabilities Level 2 4,368.54 - 4,368.54 -
Other financial liabilities Level 2 4,610.60 5,505.93 4,610.60 5,505.93
Methods and assumptions used to estimate the fair values are consistent with those used for the year ended 31st March, 2019.The following
methods / assumptions were used to estimate the fair values:
1. The carrying value of Cash and cash equivalents, trade receivables, trade payables, short-term borrowings, other current financial assets
and financial liabilities approximate their fair value mainly due to the short-term maturities of these instruments.
2. Borrowings have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated future
cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.
3. Security deposits received against leases and lease liabilities are fair valued at initial recognition. Valuation technique used and key inputs
thereto for these Level 2 financial liabilities are determined using Discounted Cash Flow method using appropriate discounting rates.
After initial recognition, they are carried at amortised cost.
4. There has been no change in the valuation methodology for Level 3 inputs during the year. There were no transfers between Level 1 and
Level 2 during the year and no transfer into and out of Level 3 fair value measurements
II. Financial Risk Management Objectives and Policies
The Group’s activities expose it to a variety of financial risks namely market risk, credit risk and liquidity risk. The Group’s primary risk
management focus is to minimize potential adverse effects of market risk on its financial performance. The Group’s risk management
assessment & policies and processes are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and
controls, and to monitor such risks and compliance with the same.
Risk assessment & management policies and processes are reviewed regularly to reflect changes in market conditions and the Group’s
activities. The Board of Directors and the Audit Committee is responsible for overseeing the Group’s risk assessment & management policies
and processes.
The Group’s financial risk management policy is set by the management. Market risk is the risk of loss of future earnings, fair values or future
cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result
of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive
instruments. The Group manages market risk which evaluates and exercises independent control over the entire process of market risk
management. The management recommends risk management objectives and policies, which are approved by Senior Management and the
Audit Committee.
a.) Credit Risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Group’s receivables from customers. Credit risk arises from cash held with banks as well as
credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value
of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Group assesses the
credit quality of the counterparties, taking into account their financial position, past experience and other factors. The Group establishes
an allowance for impairment that represents its expected credit losses in respect of trade and other receivables. The management uses
a simplified approach for the purpose of computation of expected credit loss for trade receivables.
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the
customer, including the default risk of the industry and country, in which the customer operates, also has an influence on credit risk
assessment. Credit risk is managed through credit approvals, establishing credit limits, continuously monitoring the credit worthiness
of customers to which the Group grants credit terms in the normal course of business and through regular monitoring of conduct of
accounts.
An impairment analysis is performed at each reporting date on an individual basis for major customers. The history of trade receivables
shows a negligible provision for bad and doubtful debts. The management believes that no further provision is necessary in respect of
trade receivables based on historical trends of these customers. Further, the Group’s exposure to customers is diversified.
The Group had one Customer (Central Govt. and State Govt. both) that owned the Group more than ` 45,093.61 Lakhs (31st March,
2019 : ` 33,215.75 Lakhs) and accounted for approximately 57% (31st March, 2019 : 43%) of all the receivables outstanding.

Annual Report 2019-20 189

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

The movement in the loss allowance in respect of trade and other receivables during the year was as follows:
(` in Lakhs)
Particulars As at 31st As at 31st
March, 2020 March, 2019
Opening Balance 1,192.10 1,067.52
Impairment loss recognised 4,214.16 1,104.54
Amount written off as bad debts (4,214.16) (979.95)
Closing Balance 1,192.10 1,192.10
The credit risk on liquid funds such as banks in current and deposit accounts is limited because the counterparties are banks with high credit-
ratings.
b) Liquidity Risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they become due. The Group manages its
liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk
management framework for the management of the Group’s short-term, medium-term and long-term funding and liquidity management
requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and committed borrowing facilities,
by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities and
by monitoring rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining
sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or
covenants (where applicable) on any of its borrowing facilities.
The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments based
on contractual undiscounted payments.
(` in Lakhs)
Particulars "Carrying upto 1 year 1-3 years 3-5 years More than 5 Total contracted
amount" years cash flows
As at 31st March, 2020
Borrowings and interest thereon * 4,738.35 4,889.77 58.85 - - 4,948.62
Trade payables 52,309.73 52,309.73 - - - 52,309.73
Lease Liabilities 4,368.54 182.50 421.59 510.12 17,334.54 18,448.75
Other financial liabilities (excluding 4,577.11 4,265.11 312.01 - - 4,577.11
current maturities of Long term
borrowings)
Total Non-Derivative Liabilities 65,993.74 61,647.11 792.44 510.12 17,334.54 80,284.21
Derivatives
Other financial liabilities - - - - - -
Total Derivative Liabilities - - - - - -

(` in Lakhs)
Particulars Carrying upto 1 year 1-3 years 3-5 years More than 5 Total contracted
amount years cash flows
As at 31st March, 2019
Borrowings and interest thereon * 6,111.64 6,323.14 47.54 23.81 - 6,394.50
Trade payables 42,852.49 42,852.49 - - - 42,852.49
Other financial liabilities (excluding 5,480.99 3,690.42 632.62 421.59 736.37 5,480.99
current maturities of Long term
borrowings)
Total Non-Derivative Liabilities 54,445.12 52,866.05 680.16 445.40 736.37 54,727.98
Derivatives
Other financial liabilities - - - - - -
Total Derivative Liabilities - - - - - -
* The table has been drawn up based on the undiscounted contractual maturities of the financial liabilities including interest that will be
paid on those liabilities upto the maturity of the instruments, ignoring the call and refinancing options available with the Group, if any.
The amounts included above for variable interest rate instruments for non-derivative liabilities is subject to change if changes in variable
interest rates differ to those estimates of interest rates determined at the end of the reporting period.
The above excludes any financial liabilities arising out of financial guarantee contract.
In respect of financial guarantees provided by the Group to banks and finacial instituitions, the maximum exposure which the Group
is exposed to is the maximum amount which the Group would have to pay if the guarantee is called upon. Based on the expectation
at the end of the reporting period, the Group considers that is more likely than not that such an amount will not be payable under the
guarantees provided.

190 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

Financing facilities :
The Group has access to financing facilities as described in below Note. The Group expects to meet its obligations from operating cash
flows and proceeds of maturing financial assets.
(` in Lakhs)
Particulars As at 31st As at 31st
March, 2020 March, 2019
Secured bank loan facilities with various maturity dates through to March 31,
2021 and which may be extended by mutual agreement:
- amount used 87.50 87.18
- amount unused - -
87.50 87.18
Unsecured loans from promoter
- amount used 2,250.00 2,997.13
- amount unused - -
2,250.00 2,997.13
Secured bank overdraft facility :
- amount used 2,400.28 3,026.66
- amount unused 6,899.72 4,473.34
9,300.00 7,500.00

Other Risk – Impact of COVID-19

Financial assets carried at fair values as at 31st March, 2020 is Nil and financial assets carried at amortised cost as at 31st
March, 2020 is ` 88,506.56 lakhs. Financial assets classified as Level 1 and Level 2 are having fair value of ` 88,506.56 Lakhs
as at 31st March,2020. The fair value of these assets have been determined considering uncertainties arising out of COVID-19.
Financial assets of ` 24,393.97 Lakhs as at 31st March, 2020 carried at amortised cost is in the form of cash and cash equivalents,
bank deposits and earmarked balances with banks where the Group has assessed the counterparty credit risk. Trade receivables of
` 59,726.46 Lakhs as at 31st March, 2020 forms a significant part of the financial assets carried at amortised cost which are valued
considering provision for allowance using expected credit loss method. In addition to the historical pattern of credit loss, we have
considered the likelihood of increased credit risk and consequential default considering emerging situations due to COVID-19.
This assessment is not based on any mathematical model but an assessment considering the financial strength of the customers
in respect of whom amounts are receivable. The Group has specifically evaluated the potential impact with respect to customers in
Domestic segment which could have an immediate impact. The Group closely monitors its customers who are going through financial
stress and assesses actions such as change in payment terms, recognition of revenue on collection basis etc., depending on severity
of each case. Basis this assessment, the allowance for doubtful trade receivables of ` 1,192.10 Lakhs as at 31st March, 2020 is
considered adequate.
c) Market Risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and
prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments
as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments
and all short term and long-term debt. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such
as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTOCI
investments, trade payables, trade receivables and other financial instruments. The Group is exposed to market risk primarily related
to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Group’s exposure to market risk is a
function of investing and borrowing activities.
i.) Foreign exchange risk
Foreign exchange risk is the risk that the fair value of future cash flows of financial instrument will fluctuate because of changes in foreign
exchange rate. The Group has no material exposure to foreign exchange risk as it does not generally have any financial assets or liabilities
which are denominated in a currency other than INR.
However, the following table sets forth information relating to foreign currency exposure (Unhedged) as on balance sheet dates:

Foreign Currency Liabilities / Assets As at 31st March, 2020 As at 31st March, 2019
Foreign Indian Rupees Foreign Indian Rupees
currency (In lakhs) currency (In lakhs)
Currency
Trade Payables & other liabilities
USD 4,58,274.15 345.45 74,895.00 51.81
Euro 29,065.00 24.14 12,187.50 9.47

Annual Report 2019-20 191

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

a. Foreign currency sensitivity analysis :

The following tables demonstrate the sensitivity to a reasonably possible change in exchange rates of USD, JPY and Euro with INR, with
all other variables held constant. The impact on the Group’s profit before tax is due to changes in the fair value of monetary assets and
liabilities including non-designated foreign currency derivatives. The Group’s exposure to foreign currency changes for all other currencies
is not material.
(` in Lakhs)
Particulars 31st March, 2020 31st March, 2019
Effect on Profit before tax Gain/(Loss) Effect on Profit before tax Gain/(Loss)
5% movement Strengthening of Weakening of Strengthening of Weakening of
Foreign Currency Foreign Currency Foreign Currency Foreign Currency
On Foreign Currency Liability :
USD 17.27 (17.27) 2.59 (2.59)
Euro 1.21 (1.21) 0.47 (0.47)

ii.) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term debt
obligations with floating interest rates.
The Group’s investments in term deposits (i.e., margin money) with banks are for short durations, and therefore do not expose the Group
to significant interest rates risk.
a. Interest rate risk exposure
The exposure of the Group’s borrowing to interest rate changes at the end of the reporting period are as follows:
(` in Lakhs)
Particulars As at 31st As at 31st
March, 2020 March, 2019
Floating rate instruments :
INR Borrowings 2,487.77 3,113.83

The table excludes non interest bearing/fixed rate of interest borrowings ` 2,250.00 Lakhs (March 31, 2019 : ` 2,997.13 Lakhs).
b. Interest rate sensitivity :
The sensitivity analysis below have been determined based on exposure to interest rates for borrowings at the end of the reporting period
and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in case
of borrowings that have floating rates.
If the interest rates had been 50 basis points higher or lower and all the other variables were held constant, the effect on interest expense
for the respective financial years and consequent effect on Group’s profit in that financial year would have been as below:

(` in Lakhs)
Particulars Impact on Profit Before Tax
Year ended 31st Year ended 31st
March, 2020 March, 2019
Floating rate instruments :
50 basis points increase (12.44) (15.57)
50 basis points decrease 12.44 15.57
The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.
III.) Capital Risk Management Policies and Objectives
The Group’s objective while managing capital is to safeguard its ability to continue as a going concern (so that it is enabled to provide
returns and create value for its shareholders, and benefits for other stakeholders), support business stability and growth, ensure adherence
to the covenants and restrictions imposed by lenders and / or relevant laws and regulations, and maintain an optimal and efficient capital
structure so as to reduce the cost of capital and to maximise shareholders value. In order to maintain or adjust the capital structure, the
Group may adjust the dividend payment to shareholders, return capital to shareholders, issue new shares, obtain new borrowings or sell
assets to reduce debt, etc.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its business
requirements and the requirements of the financial covenants.
The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Net debt is calculated as interest
bearing loans and borrowings less cash and cash equivalents.

192 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

The gearing ratio at the end of the reporting period was as follows:
(` in Lakhs)
Particulars As at 31st As at 31st
March, 2020 March, 2019
Debt 4,737.77 6,110.96
Lease liabilities 4,368.54 -
Cash and cash equivalents (16,507.44) (13,768.96)
Net debt (7,401.12) (7,658.00)
Total Equity 80,282.98 73,723.86
Capital and net debt 72,881.86 66,065.86
Gearing Ratio (%) -10.15% -11.59%

In order to achieve this overall objective, the Group’s capital management, amongst other things, aims to ensure that it meets financial
covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the
financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial
covenants of any interest-bearing loans and borrowings in the current period.

IV.) Changes in liabilities arising from financing activities

With effect from 01.04.2017, the Group adopted the amendments to Ind AS 7 - Statement of cash flows.The amendments require
entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities,
including both changes arising from cash flows and non-cash changes. To the extent necessary to satisfy this requirement, an entity
discloses the following changes in liabilities arising from financing activities:
• Changes from financing cash flows
• Changes arising from obtaining or losing control of subsidiaries or other businesses
• The effect of changes in foreign exchange rates
• Changes in fair values
• Other changes
Paragraph 44C of Ind AS 7 states that liabilities arising from financing activities are liabilities for which cash flows were, or future cash
flows will be, classified in the statement of cash flows as cash flows from financing activities. In addition, the disclosure requirement in
paragraph 44A also applies to changes in financial assets (for example, assets that hedge liabilities arising from financing activities) if
cash flows from those financial assets were, or future cash flows will be, included in cash flows from financing activities.
The Group disclosed information about its interest-bearing loans and borrowings.
The amendments suggest that the disclosure requirement may be met by providing a reconciliation between the opening and closing
balances in the statement of financial position for liabilities arising from financing activities. Where an entity discloses such a reconciliation,
it shall provide sufficient information to enable users of the financial statements to link items included in the reconciliation to the
statement of financial position and the statement of cash flows. The Group decided to provide information in a reconciliation format. The
major changes in the Group’s liabilities arising from financing activities are due to financing cash flows and accrual of financial liabilities.
The Group did not acquire any liabilities arising from financing activities during business combinations effected in the current period or
comparative period.

Annual Report 2019-20 193

 (` in Lakhs)
01.04.2019 Cash Flows Non-cash changes 31.03.2020
(Opening balance Arising from Foreign Fair value Others (Closing
of current year) obtaining or exchange changes balance of
losing control of movement current year)
subsidiaries or
other businesses
i. Current loans and borrowings 6,023.79 (1,373.51) - - - - 4,650.28
ii. Current maturities of Long term borrowings 24.26 (24.26) - - - 32.91 32.91
iii. Non-current loans and borrowings (excluding current 62.92 24.58 - - - (32.91) 54.59
maturities)
iv. Interest accrued on borrowings 0.67 (1,866.44) - - - 1,866.34 * 0.58
Total liabilities from financing activities 6,111.64 (3,239.63) - - - 1,866.34 4,738.35

194 Ahluwalia Contracts (India) Limited

* Represents interest expenses recognised in Statement of Profit & Loss.

(` in Lakhs)
01.04.2018 Cash Flows Non-cash changes 31.03.2019
(Opening balance Arising from Foreign Fair value Others (Closing
of comparative obtaining or exchange changes balance of
period) losing control of movement comparative
subsidiaries or period)
other businesses
i. Current loans and borrowings 2,888.57 3,135.21 - - - - 6,023.79
ii. Current maturities of Long term borrowings 18.64 (18.64) - - - 24.26 24.26
iii. Non-current loans and borrowings (excluding current 72.97 14.20 - - - (24.26) 62.92
maturities)
iv. Interest accrued on borrowings 0.33 (978.56) - - - 978.91 * 0.67
Total liabilities from financing activities 2,980.51 2,152.22 - - - 978.91 6,111.64
* Represents interest expenses recognised in Statement of Profit & Loss.
The ‘Other’ column includes the effect of reclassification of current portion (current maturities) of non-current interest-bearing loans and borrowings.
Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)
 50 Segment information- Disclosure pursuant to Ind AS 108 “Operating Segment”
A. Information about reportable segment
(` in Lakhs)
Particulars Construction Contract Investment Property (Lease Other Unallocated Total
Rental)
31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March,
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Revenue
External revenue 1,87,414.76 1,72,995.56 617.94 448.77 459.99 2,027.11 - - 1,88,492.69 1,75,471.44
Inter segment revenue - - - - - - - - - -
Total segment revenue 1,87,414.76 1,72,995.56 617.94 448.77 459.99 2,027.11 - - 1,88,492.69 1,75,471.44
Segment results 14,249.22 21,883.00 (613.33) (825.31) (111.10) (804.22) 13,524.79 20,253.48
Less:
a. Finance costs 3,499.77 1,922.40 3,499.77 1,922.40
b. Other unallocable expense 370.49 390.35 370.49 390.35
net of unallocable income
(Loss)/Profit before tax 9,654.53 17,940.73
Tax expenses 3,215.38 6,209.18
(Loss)/Profit after tax 6,439.15 11,731.55

(` in Lakhs)
Other Information Construction Contract Investment Property (Lease Other Unallocated Total
Rental)
31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March,
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Segment Assets 1,37,683.72 1,15,842.86 11,746.73 9,153.56 5,314.08 5,049.75 21,166.58 18,499.11 1,75,911.12 1,48,545.29
Segment Liabilities 85,999.34 66,576.88 4,978.52 2,220.76 - - 4,650.28 6,023.79 95,628.13 74,821.43
Capital Employed 51,684.38 49,265.98 6,768.22 6,932.80 5,314.08 5,049.75 16,516.31 12,475.32 80,282.98 73,723.86
Corporate Overview
Statutory Reports

Annual Report 2019-20

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)
Financial Statements

195
 (` in Lakhs)
Particulars Depreciation, amortisation Other non-cash expenses Interest expense included in Additions to Non-Current
and impairment include in included in segment segment expense Assets
segment expense expense
For the year ended For the year ended For the year ended For the year ended
31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March,
2020 2019 2020 2019 2020 2019 2020 2019
Construction Contract 2,760.26 2,445.57 4,214.16 1,104.54 1,526.65 535.59 3,944.02 2,897.54
Investment Property (Lease Rental) 426.89 310.23 - - - - 68.17 223.82
Others - - 17.54 235.20 - - - -
Segment Total 3,187.15 2,755.79 4,231.70 1,339.74 1,526.65 535.59 4,012.19 3,121.36
Unallocated - - - - (1,526.65) (535.59) - -

196 Ahluwalia Contracts (India) Limited

Total 3,187.15 2,755.79 4,231.70 1,339.74 - - 4,012.19 3,121.36

Reconciliation to amounts reflected in the financial statements

Reconciliation of assets
(` in Lakhs)
Particulars 31st March, 2020 31st March, 2019
Segment assets 1,54,744.53 1,30,046.18
Deferred tax assets (net) 2,357.77 2,832.72
Non-current tax assets (net) 2,015.55 175.19
Goodwill 138.00 138.00
Cash and Bank Balances 16,655.27 15,353.19
Total assets 1,75,911.12 1,48,545.29

Reconciliation of liabilities
(` in Lakhs)
Particulars 31st March, 2020 31st March, 2019
Segment liabilities 90,977.86 68,797.64
Current Borrowings 4,650.28 6,023.79
Total liabilities 95,628.13 74,821.43
Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)
 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

B. Geographic Information
(` in Lakhs)
Particulars Segment revenue* Non-current assets**
31st March, 2020 31st March, 2019 31st March, 2020 31st March, 2019
Within India 1,88,492.69 1,75,471.44 29,430.07 22,685.50
Outside India - - - -
Total 1,88,492.69 1,75,471.44 29,430.07 22,685.50
*Revenues by geographical area are based on the geographical location of the client.
**Non-current assets for this purpose consists of Property, plant & equipment, Capital Work in progress, Right of Use Assets, Investment
Property, Intangible assets and other non current assets.
C. Basis of identifying operating segments, reportable segments, segment profit and definition of each reportable segment and segment
composition:
(i) Basis of identifying operating segments:
Operating segments are identified as those components of the Group (a) that engage in business activities to earn revenues and incur
expenses (including transactions with any of the Group’s other components) (b) whose operating results are regularly reviewed by the
Group’s Chief Executive Officer to make decisions about resource allocation and performance assessment and (c) for which discrete
financial information is available
The accounting policies consistently used in the preparation of the financial statements are also applied to record revenue and expenditure
in individual segments. Assets, liabilities, revenues and direct expenses in relation to segments are categorised based on items that
are individually identifiable to that segment, while other items, wherever allocable, are apportioned to the segments on an appropriate
basis. Certain items are not specifically allocable to individual segments as the underlying services are used interchangeably. The Group
therefore believes that it is not practical to provide segment disclosures relating to such items, and accordingly such items are separately
disclosed as ‘unallocated’.
(ii) Reportable segments:
An operating segment is classified as reportable segment if reported revenue (including inter-segment revenue) or absolute amount of
result or assets exceed 10% or more of the combined total of all the operating segments.
(iii) Segment profit:
Performance of a segment is measured based on segment profit (before interest and tax), as included in the internal management reports
that are reviewed by the Group’s Chief Executive Officer.
(iv) Segment composition:
a) Revenue from construction contract
b) Lease Rental from Investment Property (Bus Terminal & Depot and Commercial Complex) at Kota
c) Other comprises Inventory Property
D. Revenue from one customer (Central Govt. and State Govt. both) in Construction Contract segment amounting to ` 1,30,324.31 Lakhs (31st
March, 2019 : ` 1,03,603.05 Lakhs) and accounted for approximately 69.74% (31st March, 2019 : 60.22%) contributed to more than
10% of the entity’s total revenue.

51 In light of Section 135 of the Companies Act, 2013, the Group has incurred expenses on Corporate Social
responsibility (CSR) aggregating to ` 68.07 Lakhs (previous year ` 11.07 Lakhs).

The disclosure in respect of CSR expenditure is as follows:

(` in Lakhs)
Particulars For the year ended For the year ended
31st March, 2020 31st March, 2019
a. Gross amount required to be spent by the Company during the year 327.96 285.07
b. Amount spent during the year on the following:
1. Construction/acquisition of asset - -
2. On purposes other than 1 above 68.07 11.07

52 The Group has claimed Delhi VAT Credit balance as on 01.07.2017 in Trans I filed under GST regime which includes ` 1,783.64 Lakhs
related to period from 2009 to 2013. The Group has availed Amnesty Scheme 2013 of Delhi Government for the period from 2009 to 2013.
The Group is not entitled to VAT Input credit for the period for which amnesty scheme was availed as per the order of Commissioner VAT,
New Delhi dated 17.01.2018. The Group has accordingly not recognised VAT Credit balance for the said period in the books.

Annual Report 2019-20 197

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

53 Particulars of loans given, guarantee given or security provided and investment made during the year as
mandated by section 186 (4) of the Companies Act, 2013:
(a) Loan given: Nil
(b) Guarantee given: Nil
(c) Security provided: Nil
(d) Investments made/(sold): Nil

54 Use of estimates and judgements

The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting period end. Although these estimates are based upon management’s
best knowledge of current events and actions, historical experience and other factors, including expectations of future events that are believed
to be reasonable, actual results could differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the
period of the revision and future periods if the revision affects both current and future periods.
A. Significant Judgements in applying accounting policies
The judgements, apart from those involving estimations (see note below), that the Group has made in the process of applying its
accounting policies and that have a significant effect on the amounts recognised in these financial statements pertain to :
(i) Kota Project : Investment Property :
The Group has developed (Bus Depot and Commercial Complex at Kota) for Rajasthan State Road Transport Corporation (RSRTC) under
an “Agreement to Develop” / License agrement at a cost of ` 12,487.90 Lakhs spent till 31.03.2020 including discounted value of
license fees of ` 2,992.77 Lakhs recognised on application of Ind AS 116 effective from 01.04.2019 (upto 31.03.2019 ` 9,426.95
Lakhs) on the land belonging to RSRTC under license arrangement. The expenditure (construction cost) incurred has been shown in
Balance Sheet under the main head “Investment Property” and sub-head “Right of Use Assets (Building)”. The Group has a right to Lease
Right of Use Asset (Commercial Complex). The primary lease period of Commercial complex is 30 years which can be extended for a
further period of 10 years at the option of the Group from the date of completion of the project. Thereafter, the Commercial Complex will
be handed over to RSRTC.
Determination of applicability of Appendix A of Service Concession Arrangement (‘SCA’), under Ind AS - 115 ‘Revenue from Contracts
with Customers’:
This Interpretation applies to public-to-private service concession arrangements if:
(a) the grantor controls or regulates what services the operator must provide with the infrastructure, to whom it must provide them,
and at what price; and
(b) the grantor controls through ownership, beneficial entitlement or otherwise any significant residual interest in the infrastructure at
the end of the term of the arrangement.
In the given case, though RSRTC controls/ regulates what services the Group must provide with the infrastructure, rental of commercial
complex in the given case. However it does not regulate: to whom the Group must provide them and at what price. Since the first
condition is not met, the management has concluded that SCA does not apply in this case.
Determination of applicability of Ind As 40 – Investment Property:
In view of the fact that the Group constructed the building at its own cost and in view of the substantial rights entrusted with the Group,
the substance of the legal agreements with RSRTC, in the judgement of the management, is that the Group is the beneficial owner of the
Building though legal title vests with RSRTC and the license fees payable by the Group to RSRTC is in effect for use of land.
The cost of construction represents building held by the Group to earn rentals rather than for use in the production or supply of goods or
services or for administrative purposes; or for sale in the ordinary course of business. The commercial complex is not intended for sale
in ordinary course of business of the Group.
Accordingly, the management has concluded that Ind As 40 shall apply in its case and the cost of construction shall be accounted for
as investment property under Ind AS 40.
(ii) 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 Group’s operations taking into
account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to
ensure that the lease term reflects the current economic circumstances. After considering current and future economic conditions, the
Group has concluded that no changes are required to lease period relating to the existing lease contracts.

198 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

B. 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 :
(i) Impairment of trade receivables:
The impairment provisions for trade receivables are based on lifetime expected credit loss based on a provision matrix. Lifetime expected
credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument. The
provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit
loss allowance is based on the ageing of the receivables that are due and the rates used in the provision matrix.
(ii) Fair value measurements of financial instruments:
In estimating the fair value of a financial asset or a financial liability, the Group uses market-observable data to the extent it is available.
Where active market quotes are not available, the management applies valuation techniques to determine the fair value of financial
instruments. This involves developing estimates, assumptions and judgements consistent with how market participants would price the
instrument.
(iii) Valuation of investment property :
Investment property is stated at cost. However, as per Ind AS 40 there is a requirement to disclose fair value as at the balance sheet date.
The Group engaged independent valuer to determine the fair value of its investment property as at reporting date.
Fair value of the Freehold Land property is determined by using market comparable method. This means that valuation performed by
the valuer are based on active market prices, significantly adjusted for difference in nature, location or condition of the specific property.
As at 31st March, 2020 and As at 31st March, 2019, the property is fair valued based on valuations performed by an independent
valuer who holds a recognised and relevant professional qualification and has relevant valuation experience for similar properties in India.
Right of Use Assets (Building) :
The determination of the fair value of investment property, viz. right of use assets (Building) at Kota requires the use of estimates such
as future cash flows from the assets (such as lettings, future revenue streams and the overall repair and condition of the property and
property operating expenses etc.) and discount rates applicable to those assets. As at 31st March, 2020 and As at 31st March, 2019,
the property is fair valued based on valuations performed by an independent valuer who holds a recognised and relevant professional
qualification and has relevant valuation experience.
(iv) Estimation of net realisable value for inventory property
Inventory is stated at the lower of cost and net realisable value (NRV).
NRV for inventory property is assessed by reference to market conditions and prices existing at the reporting date and is determined by
the Group after taking suitable external advice and in the light of recent market transactions, as well as the estimated cost to be incurred
for completion of the construction.
(v) Actuarial Valuation:
The determination of Group’s liability towards defined benefit obligation viz. gratuity to employees is made through independent actuarial
valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in other comprehensive income.
Such valuation depend upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors
such as supply and demand factors in the employment market. Information about such valuation is provided in notes to the financial
statements.
(vi) Claims, Provisions and Contingent Liabilities:
The Group has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to
be probable and a reliable estimate of the outcome of the dispute can be made based on management’s assessment of specific
circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals
are by nature complex and can take number of years to resolve and can involve estimation uncertainty. These estimates could change
substantially over time as new facts emerge and each dispute progresses. Information about such litigations is provided in notes to the
financial statements.
(vii) Useful lives of property, plant and equipment, investment property and intangible assets:
As described in the significant accounting policies, the Group determines and also reviews the estimated useful lives of property, plant
and equipment, investment property and intangible assets at the end of each reporting period. Such lives are dependent upon an
assessment of both the technical life of the assets and also their likely economic life, based on various internal and external factors
including relative efficiency and operating costs. Accordingly, depreciable lives are reviewed annually using the best information available
to the Management.

Annual Report 2019-20 199

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

(viii) Retention money

The payment terms followed by the Group are generally followed by the most of the companies (customers as well as contracts) in the
construction contracts and are customary in the construction industry. The customer pays advance before start of the project and retains
a specified percentage of the contract value as retention money to ensure successful completion of the construction activities. These
are generally accepted industry practice. Moreover, these contracts are generally based on competitive bidding and are awarded based
on the lowest evaluated price. The retention money is contractually due for payment by customer on completion of the project / after a
specified defect liability period which is generally 1-3 years and to fulfill the customer’s satisfaction of conditions specified and adequate
protection to meet obligations in the contract. Similarly, customer also pays advances before start of the execution of the project which
reflects commitment from the customer and the same is being adjusted against running bills.The retention money in a contract does
not have any financing component as the same is for protecting/ensuring the performance commitment . Therefore, the management
believes that there is no time value of money involved.

55 Correction of errors
(A) During the year ended 31 March 2020, the management undertook a detailed review of its financial statements and
observed an inadvertent error in application of Ind AS-115, effective from 01-04-2018.
i) The change in inventory of work in progress has been disclosed in the statement of profit and loss account as a line item instead of
unbilled revenue under the head revenue from operation.
ii) The inventory of Work-in-progress had been disclosed under the head inventories instead of unbilled revenue under Other Current Assets
in previous financial statements.
iii) Further, retention money had been disclosed under the head trade receivables instead of other assets. The amount of retention money
held by the customers is due on future performance obligation.
Therefore, for the financial year ended 31 March, 2020 the error has been corrected by restating each of the affected financial statement line
items for the prior period as follows :

(` in Lakhs)
Balance Sheet As at 31st March, 2019
As previously Changes due to As Restated
Reported correction of error
Change in Assets
Non-Current Trade Receivables 10,760.77 (3,043.27) 7,717.50
Deferred Tax Assets 2,991.21 (158.49) 2,832.72
Other Non-Current Assets 450.37 3,043.27 3,493.64
Inventories 22,229.92 (7,418.82) 14,811.10
Current Trade Receivables 64,900.40 (13,118.65) 51,781.75
Other Current Assets 2,827.12 20,991.02 23,818.14
Total Items Change in Assets 1,04,159.79 295.06 1,04,454.85
Change in Equity & Liabilities
Other Equity 72,089.05 295.06 72,384.11
Other Non Current Liability 5,980.16 (1,506.37) 4,473.79
Other Non Current Financial Liability 284.19 1,506.37 1,790.57
Total Items Change in Equity & Liabilities 78,353.40 295.06 78,648.46

(` in Lakhs)
Statement of Profit & Loss As at 31st March, 2019
As previously Changes due to As Restated
Reported correction of error
Revenue from Operations (Construction Contract Revenue) 1,75,218.32 253.12 1,75,471.44
Change in inventory of Work in Progress (235.66) 235.66 -
Profit before tax 17,923.27 17.46 17,940.73
Tax expense 6,203.07 6.10 6,209.17
Profit after tax 11,720.20 11.36 11,731.56
Impact on EPS (Increase/(Decrease) (Basic & Diluted) 17.496 0.017 17.51

It has no impact on previously reported cash flows from operating, investing and financing activities.

200 Ahluwalia Contracts (India) Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

(B) The amount of work done but pending acknowledgment by contractee was recognised as “Work-in-progress” (disclosed under “Inventories”)
and valued at cost until year 2017-18 by the Group for construction contracts. Under Ind AS 115, the same is treated as “Unbilled Revenue”
(disclosed under “Other Current Assets”) which is valued at the contracted rates amounting to ` 7,872.37 Lakhs as at 31st March, 2019
(April 1, 2018 : ` 7,619.25 Lakhs) and thereby it includes profit element of ` 453.55 Lakhs as at 31st March, 2019) (April 1, 2018 :
` 436.09 Lakhs). This has resulted in increase in revenue for the year March 2019 by ` 253.12 Lakhs which otherwise would have been
disclosed as changes in work in progress. The cumulative effect of the above adjustment on the year 2018-19 profit is ` 11.36 Lakhs (Net
of Tax of ` 6.10 Lakhs) and on the opening balance of retained earnings upto 31st March, 2018 is ` 283.70 Lakhs (Net of Tax of ` 152.39
Lakhs).
The cumulative impact of Ind AS 115 during the year 2018-19 has resulted in increase of ` 0.02 to the Earning per shares of the Group.

56 Estimation of uncertainties relating to the global health pandemic from COVID-19 (COVID-19):

The COVID-19 pandemic is an evolving human tragedy declared a global pandemic by the World Health Organisation with adverse impact on
economy and business. Supply Chain disruptions in India as a result of the outbreak started with restrictions on movement of goods, closure of
borders etc., in several states followed by a nationwide lockdown from the 25th of March 2020 announced by the Indian government, to stem
the spread of COVID-19. Due to this, the operations of the Group’s at all locations got temporarily disrupted. In light of these circumstances, the
Group has considered the possible effects that may result from COVID-19 on the carrying amounts of financials assets,inventory, receivables,
property plant and equipment, Intangibles, Investment Property etc., as well as liabilities accrued. In developing the assumptions relating to
the possible future uncertainties in the economic conditions because of this pandemic, the Group has used internal and external information
such as financial strength of partners, investment profile, future volume estimates from the business etc. Having reviewed the underlying data
and based on current estimates the Group expects the carrying amount of these assets will be recovered and there is no significant impact on
liabilities accrued. The impact of COVID-19 on the Group’s financial statements may differ from that estimated as at the date of approval of
these financial statements and the Group will continue to closely monitor any material changes to future economic conditions.

57 Additional information to consolidated financial statements as at March 31st, 2020 and as at March 31st,
2019, pursuant to Schedule III to the Companies Act 2013:

(` in Lakhs)
Name of Entities Net Assets, i.e., total assets minus total liabilities
As at 31st As a % of As at 31st As a % of
March, 2020 consolidated net March, 2019 consolidated net
assets assets
Holding Company:
Ahluwalia Contracts (India) Limited 79,913.07 99.54% 73,349.51 99.49%
Subsidiaries:
Indian:
M/s. Dipesh Mining Pvt. Ltd. 72.52 0.09% 73.41 0.10%
M/s. Jiwanjyoti Traders Pvt. Ltd. 75.37 0.09% 76.26 0.10%
M/s. Paramount Dealcomm Pvt. Ltd. 76.63 0.10% 77.51 0.11%
M/s. Prem Sagar Merchants Pvt. Ltd. 68.33 0.09% 69.22 0.09%
M/s. Splendor Distributors Pvt. Ltd. 77.06 0.10% 77.95 0.11%
Total 80,282.98 100% 73,723.86 100%

(` in Lakhs)
Name of Entities Share in Profit or Loss
Year ended 31st As a % of Year ended 31st As a % of
March, 2020 consolidated March, 2019 consolidated
profit or loss profit or loss
Holding Company:
Ahluwalia Contracts (India) Limited 6,445.35 100.07% 11,554.81 100.06%
Subsidiaries:
Indian:
M/s. Dipesh Mining Pvt. Ltd. (0.89) (0.014)% (1.28) (0.011)%
M/s. Jiwanjyoti Traders Pvt. Ltd. (0.89) (0.014)% (1.27) (0.011)%
M/s. Paramount Dealcomm Pvt. Ltd. (0.89) (0.014)% (1.28) (0.011)%
M/s. Prem Sagar Merchants Pvt. Ltd. (0.89 (0.014)% (1.27) (0.011)%
M/s. Splendor Distributors Pvt. Ltd. (0.89) (0.014)% (1.28) (0.011)%
Total 6,440.91 100% 11,548.43 100%
Note: Above figures for net assets and share in profit or (loss) of entities are after elimination of all intra group transactions.

Annual Report 2019-20 201

Notes to the Consolidated Financial Statements for the year ended 31st March, 2020 (Contd.)

58 There are no significant subsequent events that would require adjustments or disclosures in the financial
statements as on the balance sheet date.

59 The figures for the previous year have been regrouped and / or reclassified wherever necessary to conform
with the current year presentation.

As per our report of even date annexed For and on behalf of the Board of Directors
For AMOD AGRAWAL & ASSOCIATES BIKRAMJIT AHLUWALIA SHOBHIT UPPAL
ICAI Firm Registration No. 005780N Chairman & Managing Director (Chief Executive Officer) Dy. Managing Director
Chartered Accountants DIN 00304947 DIN 00305264
SMITA GUPTA VIPIN KUMAR TIWARI SATBEER SINGH
Partner G.M. (Corporate) & Company Secretary Chief Financial Officer
Membership No. 087061 ACS. 10837 PAN : ARLPS6573L
Place : New Delhi
Date : 30-06-2020

202 Ahluwalia Contracts (India) Limited

 Notice

NOTICE
Notice is hereby given that the 41st Annual General Meeting of Ahluwalia Contracts (India) Ltd will be held on Wednesday, 30th
September, 2020 at 3.00 p.m. through Video Conferencing (VC) / Other Audio Visual Means (OAVM), to transact the following
business.

ORDINARY BUSINESS: SPECIAL BUSINESS:

ITEM NO. 1 ITEM NO. 4
To receive, consider and adopt Re-Appointment of Dr. Mohinder Sahlot (Din: 01363530)
a. the Audited Standalone Financial Statements of the As Independent Director of The Company:
Company for the financial year ended 31st March, 2020,
To consider and, if thought fit, to pass, with or without
together with the Reports of the Board of Directors and
modification(s), the following resolution as a Special
the Auditors thereon; and
Resolution:
b. the Audited Consolidated Financial Statements of the
Company for the financial year ended 31st March, “RESOLVED that pursuant to the provisions of Sections
2020, together with the Report of the Auditors thereon. 149, 150, 152 and any other applicable provisions of the
ITEM NO. 2 Companies Act, 2013 and the Companies (Appointment
To appoint a Director in place of Mr. Shobhit Uppal (DIN: and Qualification of Directors) Rules, 2014 (including any
00305264) who retires by rotation and, being eligible, offers statutory modification(s) or re-enactment thereof for the time
himself for re-appointment. being in force) read with Schedule IV to the Companies Act,
ITEM NO. 3 2013 and Clause 25 of the SEBI (Listing Obligations and
Re-Appointment of M/s. Amod Agrawal & Associates, Disclosure Requirements) Regulations, 2015, Dr. Mohinder
Chartered Accountants as Statutory Auditor of the Company Sahlot (DIN 01363530), Independent Director be and is
To re-appoint to M/s. Amod Agrawal & Associates, Chartered hereby re-appointed for the second term for another period of
Accountants [Firm Registration No.: 005780N], as Statutory one year w.e.f. 30-03-2020 pursuant to the recommendation
Auditors of the Company for another term of five(5) years, by the Nomination and Remuneration Committee and the
to hold office from the conclusion of this Annual General Board of Directors of the Company.”
Meeting till the conclusion of 46th Annual General Meeting
“RESOLVED FURTHER THAT Mr. Bikramjit Ahluwalia,
of the Company to be held in the year 2025 and to fix their
Chairman & Managing Director, Mr. Shobhit Uppal, Dy.
remuneration, by considering and if thought fit, passing, with
or without modification(s), the following resolution as an Managing Director and Mr.Vipin Kumar Tiwari, Company
Ordinary Resolution: Secretary of the Company be and are hereby severally
“RESOLVED that pursuant to provision of Sections 139, 142 authorised to file the necessary Form DIR-12 or related Forms
and all other applicable provisions, if any, of the Companies with the Registrar of Companies, NCT Delhi & Haryana, New
Act, 2013 read with the Companies (Audit and Auditors) Delhi and to do all such acts, deeds and things as may be
Rules, 2014 including any statutory modification(s) or re- necessary to give effect to the aforesaid resolution.”
enactment thereof, for the time being in force and subject to all
ITEM NO: 5
the applicable laws and regulations, including but not limited
to the SEBI (Listing Obligations and Disclosure Requirements) Ratification of Payment of Remuneration of Cost Auditor
Regulations, 2015 and pursuant to the recommendations of To consider and if thought fit, to pass, with or without
the Audit Committee and Board of Directors of the Company, modification(s), the following resolution as an Ordinary
M/s. Amod Agrawal & Associates, Chartered Accountants
Resolution:
[Firm Registration No.: (005780N), be and are hereby re-
appointed as Statutory Auditors of the Company for another “RESOLVED THAT pursuant to the provisions of Section 148
term of five (5) years to hold office from the conclusion of this and all other applicable provisions of the Companies Act,
Annual General Meeting till the conclusion of 46th Annual 2013, if any, and the Companies (Audit and Auditors) Rules,
General Meeting of the Company to be held in the year 2025 2014 (including any statutory modification(s) or re-enactment
and the Board of Directors of the Company, be and are hereby thereof, for the time being in force), the Cost Auditors M/s N.
authorised to fix such remuneration including out of pocket M & Co., Cost Accountants (FRN: 000545) appointed by the
expenses as may be recommended by the Audit Committee
Board of Directors of the Company, to conduct the audit of
of the Company.”

Annual Report 2019-20 203

the cost records of the Company for the financial year 2020- marked to enotices@linkintime.co.in
21, be paid the remuneration of ` 2.00 Lakhs p.a. mutually 1. Corporate Members intending to send their authorised
decided by the Board.” representatives to attend the Meeting are requested
“RESOLVED FURTHER THAT the Board of Directors of the to send a certified true copy of the Board Resolution
Company be and is hereby authorised to do all acts and take authorising their representative to attend and vote on
all such steps as may be necessary, proper or expedient to their behalf at the Meeting.
give effect to this resolution.” 2. Explanatory Statement pursuant to Section 102 of
Registered Office: By order of the Board the Companies Act, 2013, in respect of the Special
A-177, Okhla Industrial Area For Ahluwalia Contracts (India) Ltd Businesses to be transacted at the Annual General
Phase-I, New Delhi-110020 Sd/-
CIN : L45101DL1979PLC009654 (Vipin Kumar Tiwari) Meeting as set out in the Notice is annexed hereto.
GM (Corporate) & Company Secretary
ACS: 10837 3. In case of joint holders attending the Meeting, only such
Date:14.08.2020
a joint holder who is higher in the order of names will be
entitled to vote.
NOTES FORMING PART OF THE NOTICE 4. With effect from April 01, 2014, inter-alia, provisions
Notes: of section 149 of Companies Act, 2013, has been
brought into force. In terms of the said section read with
In view of the continuing Covid-19 pandemic, the Ministry
section 152(6) of the Act, the provisions of retirement
of Corporate Affairs (“MCA”) has vide its circular dated 5th
by rotation are not applicable to Independent Directors.
May, 2020 read with circulars dated 8th April, 2020 and
Therefore, the directors to retire by rotation have been
13th April, 2020 (collectively referred to as “MCA Circulars”)
re-ascertained on the date of this notice.
permitted the holding of the Annual General Meeting (“AGM”)
through VC / OAVM, without the physical presence of the 5. All the documents referred in the Notice, Annual Report
Members at a common venue. In compliance with the as well as Annual Accounts of the subsidiary companies
provisions of the Companies Act, 2013 (“Act”), SEBI (Listing and Register of Directors’ Shareholding are open for
Obligations and Disclosure Requirements) Regulations, 2015 inspection during the business hours at the Registered
(“SEBI Listing Regulations”) and MCA Circulars, the AGM of Office of the Company up to and including the date of
the Company is being held through VC / OAVM. Annual General Meeting.

Pursuant to the provisions of the Act, a Member entitled to 6. The Register of Members and Share Transfer Books of the
attend and vote at the AGM is entitled to appoint a proxy to Company shall remain closed during the Book Closure
attend and vote on his/her behalf and the proxy need not period, i.e. from Monday, 21st September, 2020 to
be a Member of the Company. Since this AGM is being held Wednesday, 30th September, 2020, both days inclusive
pursuant to the MCA Circulars through VC / OAVM, physical for the purpose of 41st Annual General Meeting of the
attendance of Members has been dispensed with. Accordingly, Company.
the facility for appointment of proxies by the Members will 7. The Annual Report and the Notice of this Annual General
not be available for the AGM and hence the Proxy Form and Meeting shall be sent to all shareholders by email on
Attendance Slip are not annexed to this Notice. registered email id holding shares as on 04.09.2020.
Institutional / Corporate Shareholders (i.e. other than 8. While Members holding shares in physical form may
individuals / HUF, NRI, etc.) are required to send a scanned write to the Company for any change in their address
copy (PDF/JPG Format) of its Board or governing body and bank mandates Members having shares in electronic
Resolution/Authorisation etc., authorising its representative to form may inform any change in address and bank details
attend the AGM through VC / OAVM on its behalf and to vote to their depository participant(s) immediately so as to
through remote e-voting. The said Resolution / Authorisation enable the Company for further correspondence with the
shall be sent to the Scrutinizer by email through its registered members.
email address to cs.corpoffice@acilnet.com with a copy

204 Ahluwalia Contracts (India) Limited

 Notice

9. The Members holding shares in the same name or same The following are the details of dividends declared by the
order of names under different folios are requested to Company and last date for claiming unpaid Dividend.
send the share certificates for consolidation of such Sl. Financial Date of Declaration Last date for claiming
shares to the Company. Year of dividend unpaid Dividend
1 2017-18 22/09/2018 26/11/2025
10. With the aim of curbing fraud and manipulation risk
2 2018-19 25/09/2019 25/11/2026
in physical transfer of securities, SEBI has notified the
SEBI (Listing Obligations and Disclosure Requirements) In view of the above, the shareholders are advised to
(Fourth Amendment) Regulations, 2018 on June 8, send their requests for payment of unpaid dividend
2018 to permit transfer of listed securities only in the pertaining to the years 2017-18 and 2018-19 to the
dematerialised form with a depository. In view of the Share Transfer Agent at New Delhi for Revalidation of
above and the inherent benefits of holding shares in Dividend Warrants/Demand Drafts before the last date
electronic form, we urge the shareholders holding shares for claiming un-paid dividend.
in physical form to opt for dematerialisation. The Company has uploaded the details of unpaid and
11. The Members desirous of appointing their nominees for unclaimed amount lying with the Company as on the
the shares held by them may apply in the Nomination date of last AGM on 25-09-2019 on the Company
Form (Form SH.13). website (www.acilnet.com) as well as the Ministry of
12. In order to provide protection against fraudulent Corporate Affairs website.
encashment of dividend warrants, Members holding Once the unpaid/ unclaimed dividend is transferred to
shares in physical form are requested to provide their IEPF, no claim shall lie against the Company / Registrar
bank account number, name and address of the bank/ &Transfer Agent (RTA) in respect of such amount by the
branch to enable the Company to incorporate the same members.
in the dividend warrant. Investors holding shares in physical form are advised
13. All unclaimed/unpaid dividend up to the financial year to forward the particulars of their bank account, name,
ended on 31st, March 2011 have been transferred branch and address of the bank to the Share Transfer
to the Investor Education and Protection Fund of the Agent immediately, if not sent earlier, so as to enable
Central Government pursuant to Section 205A of the them to update the records.
Companies Act, 1956 (corresponding Section 124
16. The Members desirous of obtaining any information/
&125 of the Companies Act, 2013).
clarification concerning the accounts and operations of
14. Members are requested to note that dividends not the Company are requested to address their questions in
enchased or remaining unclaimed for a period of 7 (seven) writing to the Company Secretary at least ten days before
years from the date of transfer to the Company’s Unpaid the Annual General Meeting, so that the information
Dividend Account, shall be transferred, under Section required may be made available at the Annual General
205A of the Companies Act, 1956 (corresponding Meeting.
Section 124 &125 of the Companies Act, 2013) , to the
17. Pursuant to the provisions of the Companies Act, 2013
Investor Education & Protection Fund (IEPF), established
read with the Rules framed there under, the Company
by the Central Government under Section 205C of the
may send notice of Annual General Meeting, Directors’
Companies Act, 1956 and/or corresponding provisions
Report, Auditors’ Report / Annual Audited Financial
of Section 125 of the Companies Act, 2013. No claim
Statements in electronic mode. Further, pursuant
in respect to the dividend shall lie against the Company
to the first proviso to the Rule 18 of the Companies
or IEPF after transfer of the dividend amount to IEPF.
(Management and Administration) Rule, 2014, the
15. Payment of Un-Paid/ Unclaimed Dividend
Company shall provide an advance opportunity at least
The members are hereby informed that the Company once in a financial year to the members to register their
would transfer the unpaid / unclaimed dividends, which e-mail address and changes therein. In view of the same,
remain unclaimed for a period of 7 years, to the Investor Members are requested to kindly update their e-mail
Education and Protection Fund (IEP FUND) constituted address with depository participants in case of holding
by the Central Government under section 125 of The
shares in demat form. If holding shares in physical form,
Companies Act, 2013.

Annual Report 2019-20 205

 Members are requested to inform their e-mail IDs to the agents by sending duly signed request letter quoting
Company. their folio no., name and address. In case shares held in
18. Electronic copy of the Notice of the 41st Annual General demat form, the shareholders may register their e-mail
Meeting of the Company inter-alia indicating the process addresses with their DP’S (Depository Participants). In
and manner of remote e-voting is being sent to all case any member desires to get hard copy of Annual
the members whose email IDs are registered with the Report, they can write to Company at registered office
Company/Depository Participants(s) for communication address or email at cs.corpoffice@acilnet.com.
purposes unless any member has requested for a hard 20. Members may also note that the Notice of the 41st
copy of the same. For members who have not registered Annual General Meeting and the Annual report for
their email address, physical copies of the aforesaid financial year 2019-20 will also be available on the
documents are being sent by the permitted mode and Company’s website www.acilnet.com for their download.
request received from the members. At the ensuing Annual General Meeting, Mr. Shobhit Uppal
19. As a part of “Green initiative in the Corporate (DIN: 00305264), Dy. Managing Director of the Company,
Governance”, The Ministry of Corporate Affairs vide its shall retire by rotation and being eligible, offers him-self for
circular nos. 17/2011 and 1/2011 dated 21.04.2011 re-appointment.
and 29.04.2011, respectively, has permitted the Pursuant to Clause 36 (3) of the SEBI (LODR) Regulations,
companies to serve the documents, namely, Notice of 2015, readwith SS-2, the particulars of the Directors
General Meeting, Balance Sheet, Statement of Profit proposed to be appointed/ re-appointed are given below:
& Loss, Auditor’s report, Director’s report etc., to the
DR. MOHINDER SAHLOT, Independent Director – (non-
members through email. The shareholders holding
executive Independent) she is 52 year age Educational
shares in physical form are requested to register their
Qualification, B.Com., LLB & PHD (Law).
e-mail address with the Registrar and Share transfer

She is also Directors of Following Companies:

Angad Developers Pvt. Ltd, Aerofield Flying Academy Pvt. Ltd & Olympic Riding Academy Pvt. Ltd.

Name Dr. Mohinder Sahlot

DIN 01363530
Date of Birth 22-07-1968
Age 52 years
Date of Re-Appointment 30-03-2020
Qualifications B.Com, LLB & PHD (Law)
Expertise in specific functional area Association Registered with ICAO as supplier of services (Studies),
Member of Bar Associations of India, Members of Delhi High Court
Bar Association, Member of Patiala House Bar Association, Member
of Saket Bar Association, Experience of mediation and working in
Saket District Courts as Mediator, Member of International Counsel of
Arbitration (ICCA), Handled civil cases from past 14 years in various
courts.
Terms & conditions of appointment NIL
Remuneration NIL
Directorship held in other public limited companies NIL
(excluding Foreign Companies)

206 Ahluwalia Contracts (India) Limited

 Notice

Name Dr. Mohinder Sahlot

Membership (M)/ Chairmanship (C) of Committees of 3
other public companies (includes only Audit Committee
(AC) of the Company) and Stakeholders’/ Investor’
Grievance Committee (SIGC)), CSR Committee,
Nomination & Remuneration Committee
Number of Equity Shares held in the Company None
Relationship with other Directors None
Relationship with the Manager of the Company None
Number of meetings attended during the year ended 5 (Board Meeting)
31.03.2020
Membership and Chairmanship of the Committees of Audit Committee, Stakeholders Relationship Committee, Nomination
the Board and Remuneration Committee

MR. SHOBHIT UPPAL, (Deputy Managing Director) aged 53 years has graduated in Electrical Engineering and has to his credit
more than 28 years of Experience in multifarious activities relating to infrastructure. He has been instrumental in award and
execution of many mega projects by the Company. He has been involved with the execution of various prestigious projects i.e.
Hospital, Institutional, Commercial and Residential Projects. At present, he is actively involved with Kolkata, Patna, AIIMS-Jammu
and Delhi NCR Projects.

Name Mr. Shobhit Uppal

DIN 00305264
Date of Birth 25-03-1967
Age 53 years
Date of Re-Appointment 01-04-2018
Qualifications B.E. Electrical
Expertise in specific functional area More than 28 years’ of experience to manage Building Construction
activities in India and oversees
Terms & conditions of appointment NIL
Remuneration ` 168.00 Lakhs p.a.
Directorship held in other public limited companies NIL
(excluding Foreign Companies)
Membership (M)/ Chairmanship (C) of Committees of 3
other public companies (includes only Audit Committee
(AC) of the Company) and Stakeholders’/ Investor’
Grievance Committee (SIGC)), CSR Committee,
Nomination & Remuneration Committee
Number of Equity Shares held in the Company 4308000
Relationship with other Directors Son in law of Mr.Bikramjit Ahluwalia, Managing Director
Relationship with the Manager of the Company None
Number of meetings attended during the year ended 5 (Board Meeting)
31.03.2020
Membership and Chairmanship of the Committees of Audit Committee, Stakeholders Relationship Committee, Corporate
the Board Social Responsibility Committee

Annual Report 2019-20 207

Remote e-Voting Instructions for shareholders: 2. Click on ‘Login’ under ‘SHARE HOLDER’ tab.
1. Open the internet browser and launch the URL: https:// 3. Enter your User ID, Password and Image Verification
instavote.linkintime.co.in (CAPTCHA) Code and click on ‘Submit’.
The Members who have cast their vote by remote 4. After successful login, you will be able to see the
e-voting prior to the AGM may also attend/ participate in notification for e-voting. Select ‘View’ icon.
the AGM through VC / OAVM but shall not be entitled to
5. E-voting page will appear.
cast their vote again.
Those who are first time users of LIIPL e-voting platform or 6. Refer the Resolution description and cast your vote by
holding shares in physical mode have to mandatorily generate selecting your desired option ‘Favour / Against’ (If you
their own Password, as under: wish to view the entire Resolution details, click on the
‘View Resolution’ file link).
Click on “Sign Up” under ‘SHARE HOLDER’ tab and
register with your following details: - 7. After selecting the desired option i.e. Favour / Against,
A. User ID: Enter your User ID click on ‘Submit’. A confirmation box will be displayed.
If you wish to confirm your vote, click on ‘Yes’, else to
Shareholders/ members holding shares in CDSL
demat account shall provide 16 Digit Beneficiary ID change your vote, click on ‘No’ and accordingly modify
your vote.
Shareholders/ members holding shares in NSDL
demat account shall provide 8 Character DP ID followed 8. Institutional shareholders (i.e. other than Individuals,
by 8 Digit Client ID HUF, NRI etc.) and Custodians are required to log on the
Shareholders/ members holding shares in physical e-voting system of LIIPL at https://instavote.linkintime.
form shall provide Event No + Folio Number registered co.in and register themselves as ‘Custodian / Mutual
with the Company Fund / Corporate Body’. They are also required to upload
B. PAN: Enter your 10-digit Permanent Account Number a scanned certified true copy of the board resolution /
(PAN) (Members who have not updated their PAN with authority letter/power of attorney etc. together with
the Depository Participant (DP)/ Company shall use the attested specimen signature of the duly authorised
sequence number provided to you, if applicable. representative(s) in PDF format in the ‘Custodian /
C. DOB/DOI: Enter the Date of Birth (DOB) / Date of Mutual Fund / Corporate Body’ login for the Scrutinizer
Incorporation (DOI) (As recorded with your DP / to verify the same.
Company - in DD/MM/YYYY format) If you have forgotten the password:
D. Bank Account Number: Enter your Bank Account Click on ‘Login’ under ‘SHARE HOLDER’ tab and
Number (last four digits), as recorded with your DP/ further Click ‘forgot password?’
Company.
Enter User ID, select Mode and Enter Image
Shareholders/ members holding shares in CDSL Verification (CAPTCHA) Code and Click on ‘Submit’.
demat account shall provide either ‘C’ or ‘D’, above
In case shareholders/ members is having valid email
Shareholders/ members holding shares in NSDL
address, Password will be sent to his / her registered
demat account shall provide ‘D’, above
e-mail address.
Shareholders/ members holding shares in physical
Shareholders/ members can set the password of his/
form but have not recorded ‘C’ and ‘D’, shall provide
their Folio number in ‘D’ above her choice by providing the information about the
particulars of the Security Question and Answer, PAN,
Set the password of your choice (The password should
DOB/DOI, Bank Account Number (last four digits) etc.
contain minimum 8 characters, at least one special
Character (@!#$&*), at least one numeral, at least one as mentioned above.
alphabet and at least one capital letter). The password should contain minimum 8 characters,
Click “confirm” (Your password is now generated). at least one special character (@!#$&*), at least one
NOTE: If Shareholders/ members are holding shares in numeral, at least one alphabet and at least one capital
demat form and have registered on to e-Voting system of letter.
LIIPL: https://instavote.linkintime.co.in, and/or voted on an It is strongly recommended not to share your password
earlier event of any company then they can use their existing with any other person and take utmost care to keep your
password to login. password confidential.

208 Ahluwalia Contracts (India) Limited

 Notice

For shareholders/ members holding shares in physical form, device which would be used to attend the meeting. Please
the details can be used only for voting on the resolutions read the instructions carefully and participate in the meeting.
contained in the Notice. You may also call upon the InstaMeet Support Desk for any
During the voting period, shareholders/ members can login support on the dedicated number provided to you in the
any number of time till they have voted on the resolution(s) instruction/ InstaMEET website.
for a particular “Event”. Instructions for Shareholders / Members to Speak during the
Shareholders/ members holding multiple folios/demat account Annual General Meeting through InstaMeet
shall choose the voting process separately for each of the 1. Shareholders who would like to speak during the meeting
folios/demat account. must register their request 3 days in advance i.e. 27-09-
In case shareholders/ members have any queries regarding 2020 with the company on the email id cs.corpoffice@
e-voting, they may refer the Frequently Asked Questions acilnet.com created for the general meeting.
(‘FAQs’) and InstaVote e-Voting manual available at https:// 2. Shareholders will get confirmation on first cum first
instavote.linkintime.co.in, under Help section or send an basis depending upon the provision made by the client.
email to enotices@linkintime.co.in or contact on: - Tel: 022 3. Shareholders will receive “speaking serial number” once
–4918 6000. they mark attendance for the meeting.
Process and manner for attending the Annual General 4. Other shareholder may ask questions to the panellist,
Meeting through InstaMeet via active chat-board during the meeting.
1. Open the internet browser and launch the URL: https:// 5. Please remember speaking serial number and start your
instameet.linkintime.co.in conversation with panellist by switching on video mode
•  elect the “Company” and ‘Event Date’ and
S and audio of your device.
register with your following details: - Shareholders are requested to speak only when moderator of
A. Demat Account No. or Folio No: Enter your the meeting / management will announce the name and serial
16 digit Demat Account No. or Folio No number for speaking.
• Shareholders/ members holding shares Instructions for Shareholders / Members to Vote during the
in CDSL demat account shall provide Annual General Meeting through InstaMeet
16 Digit Beneficiary ID Once the electronic voting is activated by the scrutinizer /
• Shareholders/ members holding shares moderator during the meeting, shareholders / members who
in NSDL demat account shall provide have not exercised their vote through the remote e-voting can
8 Character DP ID followed by 8 Digit cast the vote as under:
Client ID 1. On the Shareholders VC page, click on the link for
• Shareholders/ members holding shares e-Voting “Cast your vote”
in physical form shall provide Folio 2. Enter your 16 digit Demat Account No. / Folio No.
Number registered with the Company and OTP (received on the registered mobile number/
B. PAN: Enter your 10-digit Permanent Account registered email Id) received during registration for
Number (PAN) (Members who have not InstaMEET and click on ‘Submit’.
updated their PAN with the Depository 3. After successful login, you will see “Resolution
Participant (DP)/Company shall use the Description” and against the same the option “Favour/
sequence number provided to you, if Against” for voting.
applicable.
4. Cast your vote by selecting appropriate option i.e.
C. Mobile No.: Enter your mobile number. “Favour/Against” as desired. Enter the number of shares
D. Email ID: Enter your email id, as recorded (which represents no. of votes) as on the cut-off date
with your DP/Company. under ‘Favour/Against’.
• Click “Go to Meeting” (You are now registered for 5. After selecting the appropriate option i.e. Favour/Against
InstaMeet and your attendance is marked for the meeting). as desired and you have decided to vote, click on
Please refer the instructions (annexure) for the software “Save”. A confirmation box will be displayed. If you wish
requirements and kindly ensure to install the same on the to confirm your vote, click on “Confirm”, else to change

Annual Report 2019-20 209

 your vote, click on “Back” and accordingly modify your Shareholders / Members are encouraged to join the Meeting
vote. through Tablets/ Laptops connected through broadband for
6. Once you confirm your vote on the resolution, you will not better experience.
be allowed to modify or change your vote subsequently. Shareholders/ Members are required to use Internet with a
Note: Shareholders/ Members, who will be present in the good speed (preferably 2 MBPS download stream) to avoid
Annual General Meeting through InstaMeet facility and have any disturbance during the meeting.
not casted their vote on the Resolutions through remote Please note that Shareholders/ Members connecting from
e-Voting and are otherwise not barred from doing so, shall be Mobile Devices or Tablets or through Laptops connecting
eligible to vote through e-Voting facility during the meeting. via Mobile Hotspot may experience Audio/Visual loss due to
Shareholders / Members who have voted through Remote fluctuation in their network. It is therefore recommended to
e-Voting prior to the Annual General Meeting will be eligible use stable Wi-Fi or LAN connection to mitigate any kind of
to attend / participate in the Annual General Meeting through aforesaid glitches.
InstaMeet. However, they will not be eligible to vote again In case shareholders/ members have any queries regarding
during the meeting. login/ e-voting, they may send an email to instameet@
linkintime.co.in or contact on: - Tel: 022-49186175.

Annexure
Guidelines to attend the AGM proceedings of Link Intime India Pvt. Ltd.: InstaMEET
For a smooth experience of viewing the AGM proceedings of Link Intime India Pvt. Ltd. InstaMEET, shareholders / members who
are registered as speakers for the event are requested to download and install the Webex application in advance by following the
instructions as under:
a) Please download and install the Webex application by clicking on the link https://www.webex.com/downloads.html/

210 Ahluwalia Contracts (India) Limited

 Notice

Annual Report 2019-20 211

 or
b) If you do not want to download and install the Webex application, you may join the meeting by following the process mentioned
as under:

Step 1 Enter your First Name, Last Name and Email ID and click on Join Now.
1 (A) If you have already installed the Webex application on your device, join the meeting by clicking on Join
Now
1 (B) If Webex application is not installed, a new page will appear giving you an option to either Add Webex
to chrome or Run a temporary application.
Click on Run a temporary application, an exe file will be downloaded. Click on this exe file to run the
application and join the meeting by clicking on Join Now

212 Ahluwalia Contracts (India) Limited

 Notice

IMPORTANT COMMUNICATION The proposed resolution does not relate to or affect the
SEBI and the Ministry of Corporate Affairs encourages business interest of any other Company in which the
paperless communication as a contribution to green Promoter, Director, Manager or Key Managerial Personnel
Environment. Members holding shares in physical mode have substantial interest.
are requested to register their e-mail ID’s with – Company’s None of the Directors & their Relatives are interested in the
Registrar and Share Transfer Agents (RTA) M/s Link Intime proposed resolution except Dr. Mohinder Sahlot.
India Pvt. Ltd Noble Heights, 1st Floor, Plot NH 2, C-1, Block The directors recommend the said resolution for the approval
LSC, Near Savitri Market, Janakpuri, New Delhi – 110058, of the members of the Company as a Special Resolution.
Phone: 011 - 414 10592, 93, 94; Fax : 011 - 414 10591
ITEM NO. 5
Email: delhi@linkintime.co.in and Members holding shares
The Board, on the recommendation of the Audit Committee,
in demat mode are requested to register their e-mail ID’s with
has approved the appointment and remuneration for an
their respective Depository Participants (DPs) in case the
amount of `2 Lakhs per annum for conducting the cost audit
same is still not registered.
for the financial year ending 31.03.2021 of the Cost Auditors-
If there is any change in the e-mail ID already registered with
M/s. N. M. & Co,. Cost Accountants (FRN: 000545).
the Company, members are requested to immediately notify
In accordance with the provisions of Section 148 of the Act
such change to the Registrars & Share Transfer Agents of the
read with the Companies (Audit and Auditors) Rules, 2014,
Company in respect of shares held in physical form and to
the remuneration payable to the Cost Auditors has to be
their respective DPs in respect of shares held in electronic
ratified by the shareholders of the Company by way of an
form.
ordinary resolution.
EXPLANATORY STATEMENT Accordingly, consent of the members is sought for passing an
As required by Section 102 of the Companies Act, 2013, Ordinary Resolution as set out at Item No. 5 of the Notice for
the following Explanatory Statement sets out material facts approval of the remuneration payable to the Cost Auditors for
relating to the business under item Nos. 4 to 5 of the the financial year 2020-21.
accompanying Notice dated 14-08-2020. The proposed resolution does not relate to or affect the
ITEM NO. 4 business interest of any other Company in which the
Promoter, Director, Manager or Key Managerial Personnel
The Board of Directors of the Company re-appointed Dr.
have substantial interest.
Mohinder Sahlot (DIN- 01363530) as an Independent
Director of the Company w.e.f. 30th March, 2020 in the None of the Directors / Key Managerial Personnel of the
capacity of the Independent Director for the second term for Company / their relatives is, in any way, concerned or
another period of 1 year w.e.f. 30th March, 2020. interested, financially or otherwise, in the said resolution.

Your Board considers that her continued association with the Registered Office: By order of the Board
A-177, Okhla Industrial Area For Ahluwalia Contracts (India) Ltd
Company would be of immense benefit to the Company. In Phase-I, New Delhi-110020 Sd/-
view thereof, your Board has recommended him to be re- CIN : L45101DL1979PLC009654 (Vipin Kumar Tiwari)
GM (Corporate) & Company Secretary
appointed as an Independent Director of the Company for ACS: 10837
another period 1 year up to 29th March, 2021.
Date:14.08.2020

Annual Report 2019-20 213

Company Information
REGISTERED OFFICE: DEMATERIALISATION OF
A-177, Okhla Industrial Area, SHARES
Phase - I, New Delhi-110020 ISIN NO.: INE 758C01029
Ph. : 011-49410500, 502, 517, 599
Fax : 011-49410553 REGISTRAR & SHARE
CIN : L45101DL1979PLC009654 TRANSFER AGENT
Link Intime India Private Limited
STOCK EXCHANGES Noble Heights, 1st Floor, Plot NH 2,
C-1, Block LSC, Near Savitri Market,
BSE LIMITED (BSE)
Janakpuri, New Delhi-110058,
25TH Floor, P J Towers, Dalal Street,
Phone: 011 - 414 10592, 93, 94;
Mumbai-400001 Fax : 011 - 414 10591
Ph. : 022-22721233-34 Email: delhi@linkintime.co.in
Fax: 022-22722082
Scrip Code : 532811 Note: annual listing fee for FY 2020-21
has been paid to all the stock exchanges
CALCUTTA STOCK EXCHANGE LTD
(CSE)
7, Lyons Range, Kolkata-700001
Ph. : 033-22104470-77
Fax : 033-22104468, 2223
Scrip Code : 011134

NATIONAL STOCK EXCHANGE

OF INIDA LTD (NSE)
Exchange Plaza, C-1, Block-G
Bandra Kurla Complex,
Bandra (East) Mumbai-400051
Ph. : 022-26598190-91
Fzax : 022-26598237-38
Scrip Code : AHLUCONT
 Ahluwalia Contracts (India) Ltd
(CIN: L45101DL1979PLC009654)
Regd. Off. :
Plot No. A-177, Okhla Industrial Area, Phase-I,
New Delhi-110020
Ph: +91-11-49410502,517,599 | Fax: +91-11-49410553
E: mail@acilnet.com | www.acilnet.com