Ashoka Buildcon Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

1. The above Unaudited standalone financial results are in compliance with Indian Accounting Standards (IND AS) specified under section 133 of The Companies Act, 2013, read with SEBI circular dated July 5, 2016 and have been subjected to limited review by the Statutory Auditors.

2. The Unaudited standalone financial results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on January 30, 2019.

3. The Company had recorded below adjustments during the quarter ended March 31, 2018, Accordingly, the Company has restated the financial results for the quarter and nine months ended December 31,2017 on account of the following adjustments: (For Table, kindly refer Corporate Announcements on www.bseindia.com.)

A) Value added tax collected of Rs 1341.48 Lakhs and Provision for Defect Liability Period (DLP) written back of Rs. 305.93 Lakhs were included in "Revenue from Operations" in the published results for the nine months ended December 31, 2017 have now been netted off against the corresponding expense under construction expenses.

B) Ashoka Concessions Limited (ACL), a subsidiary company, had issued Compulsorily Convertible Debentures (CCD) to its investors and to the Company (Parent) which has been classified as equity instrument in the separate financial statements of ACL. Simultaneously, the Company had agreed additional terms with the investors and assumed obligations towards investors which would be settled through some portion of equity shares to be received from ACL on conversion of CCDs held by parent Company. During the quarter ended March 31,2018 the Company had reviewed the said accounting treatment and recorded these obligations at its fair value w.e.f. April 1,2016 and restated the earlier periods presented to consider the impact. Accordingly, the Company recorded the charge amounting to Rs 500 Lakhs and Rs 1500 Lakhs for the quarter and for the nine month ended December 31. 2017 respectively and restated the financials results.

4. GVR Infra Project Limited (GVR), one of the customers and joint venture partner for certain road annuity project, has been admitted for insolvency petition by National Company Law Tribunal (NCLT) under Insolvency and Bankruptcy Code, 2016 (IBC). The Company's receivable from GVR include Trade debtors (net) - Rs.3,448 Lakhs, Loans receivable - Rs. 2,503 Lakhs and advance paid for purchase of shares in SPV - Rs.2,112 Lakhs. The Company holds security against the loans and trade receivable in the form of pledge of shares owned by GVR in a joint venture and management believes that the value of this security would be sufficient to realise the value of total receivables and the Company has also filed its claim with Interim Resolution Professional (IRP). The insolvency proceedings are at the preliminary stage and the outcome would be determined on completion of the proceedings The Company has recognised provision amounting to Rs. 3,975.65 Lakhs and disclosed it as an exceptional item.

5. The Board of Directors at its meeting held on May 29, 2018, proposed a bonus issue of equity shares, in the ratio of one equity share of Rs 5 each for every two equity shares of the Company, held by the shareholders as on a record date. Subsequently the shareholders approved the same and the Company has issued the bonus shares on record date i.e. July 13, 2018. Consequently, as required by Ind AS, Earnings per share for the reported period has been computed considering such bonus issue. Further, Earnings per share of comparative previous periods have been restated for such bonus shares issued.

6. Ind AS 115 "Revenue from Contracts with Customers', mandatory for reporting periods beginning on or after April 1, 2018 replaces existing revenue recognition requirements. Under the modified retrospective approach, application of Ind AS 115 does not have any significant impact on the retained earnings as at April 1, 2018 and financial results of the Company.

7. During the current quarter, pursuant to the search proceedings carried out in April 2016, the Company has received income tax assessment orders under section 153A for the financial year 2010-11 to 2016-17. Income tax authorities have disallowed certain sub-contractors payments by treating them as not genuine. The Company has the underlying documents to substantiate the genuineness of the work performed by these sub-contractors and no incriminating documents were found during the search proceedings. Accordingly, the Company has filed appeals against these assessment orders and is confident of defending its case on further examination and litigation. Accordingly, additional tax payable for these years amounting to Rs. 5,385 Lakhs (Including interest) is treated as contingent liability.

8. Previous period/year figures have been re-grouped /re-classified wherever necessary.