KNR Constructions Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2017
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2017
1. The Company adopted Indian Accounting Standard ("Ind AS”) from April 01, 2016 with transition date of April 01, 2015 and accordingly these financial results have been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard as prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder and other accounting principles generally accepted in India, as applicable.
2. The above results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at their meeting held on May 30, 2017.
3. The Board of Directors at its meeting held on May 30,2017 have recommended a dividend of Rs. 0.50 per equity share for the financial year 2016-17, which is subject to approval of the share holders.
4. The company, its Subsidiaries and Associates are primarily engaged in "Construction and Engineering activities" and there are no other reportable segments under Ind As 108 "Operating Segments".
5. The Company has availed the exemption under Ind AS 101 in respect of Property, Plant & equipment. As per the principles, the previous GAAP carrying values have been considered as the deemed cost on the transition date.
6. Under the Previous GAAP, the Company measured its intangible asset in respect of the road projects at cost less accumulated depreciation and accumulated impairment loss, if any. The cost comprised the direct and attributable expenses for the construction of the road project Further, the borrowing costs incurred in relation to the project was added to the project asset during the development phase of the project Under Ind AS, Company has accounted for the service concession arrangement in accordance with Appendix A to Ind AS 11 Service Concession Arrangements. As per the principles of this Appendix, where the Compaq has the contractual right to receive cash from the user/grantor of the services of the concession, it has recognised a financial /intangible asset in exchange for the construction services. Further, in accordance with the principles in this Appendix, the Company is treated as a service provider for the construction services, operation and maintenance services, and overlay services. Consequently, Company recognised Construction, operation and maintenance and overlay costs and revenue.
7. On account of transition from the previous Indian Generally Accepted Accounting Principles (IGAAP) to Ind AS, the reconciliations of Equity, Statement of Profit and Loss and Other Comprehensive income in accordance with the requirements of Ind AS 101-First -time Adoption of Indian Accounting Standards are under (For Tables, kindly refer Corporate Announcements on www.bseindia.com.)
8. The figures for the quarter ended March 31, 2017 and March 31, 2016 are the balancing figures between the audited figures of the full financial year years ended Mar 31, 2017 and March 31, 2016 (Ind AS) respectively and the published year to date Ind AS figures up to the Nine months ended December 31, 2016 and December 31, 2015 respectively.
9. During the quarter, the Company has entered a Share Purchase Agreement for sale of its equity in two BOT annuity projects and correspondingly impairment in value of investment has been provided under exceptional item.
10. The company's Equity shares has been splitted on December 14, 2016 from face value of Rs. 10/- to Rs. 2/- each.
11. The figures have been regrouped and/or rearranged wherever considered necessary.