KNR Constructions Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021

1. The above 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 May 20, 2021.



2. The Board of Directors at its meeting held on May 20, 2021 have recommended a dividend of Rs 0.25/- per equity share of face value of Rs. 2 each for the financial year 2020-21, which is subject to approval of the share holders in the ensuing Annual General Meeting.



3. The above results are in compliance with the Indian Accounting Standards (IND AS) specified under the section 133 of the Companies Act, 2013 read with SEBI circular No.CIR/CFD/FAC/62/2016 dated July 5, 2016 & amendments thereto and were Audited by the Statutory Auditor of the Company.



4. The Standalone figures for the quarter ended March 31, 2021 and March 31, 2020 are the balancing figures between the audited figures in respect of the full financial year ended March 31, 2021 and March 31, 2020 and unaudited published year to date standalone figures up to Nine months ended December 31, 2020 and December 31, 2019 respectively.



5. For the year ended March 31, 2021, the Company has transferred its 100% share holding in one of its subsidiary i.e. KNR Walayar Tollways Pvt Ltd., (KWTPL) to CUBE Highways and Infrastructure III pte.ltd on 28-09-2020 for an equity valuation of Rs 38,468.20 Lakhs and accordingly the company has written off/impaired its investment for an amount of Rs. 601.30 lakhs and Rs 671.53 lakhs for the year ended March 31, 2020. For the quarter and year ended March 31, 2021, the Company has also written off advances for an amount of Rs. 523.40 lakhs against withhold amounts, which are shown as exceptional items in the Statement of Profit and Loss.



6.For the year ended March 31, 2021, the Company has received an Arbitration settlement in one of the Joint Venture project, the Company's share of revenue of Rs 1,202.00 lakhs and Company's share of profit of Rs 785.62 lakhs included in statement of Profit and Loss.



7. For year ended March 31, 2020 the Company has received an Arbitration claim in one of the project for an amount of Rs. 6,170.91 lakhs (includes Interest of Rs. 2,263.04 lakhs), with respect to the above claim an amount Rs. 1,216.36 lakhs has been adjusted against existing Company Receivables and an amount of Rs. 510.89 lakhs has been accounted towards expenditure.



8. For the year ended March 31, 2020, One of the wholly owned subsidiary i.e. KNR Chidambaram Infra Pvt Ltd., (KCIPL), has been notified by NHAI that the Concession Agreement of the KCIPL is deemed terminated w.e.f., 11th April, 2019 "as per clause 4.5 of the Concession Agreement". The Company has written off its investments in KCIPL amounting to Rs. 835.00 lakhs and written back its liabilities to the tune of Rs. 434.39 lakhs, accordingly the net impact of Rs. 400.61 lakhs was shown as exceptional items in the Statement of Profit and Loss, accordingly the EPC Contract has also been deemed terminated.



9. For the Quarter and Year ended March 31, 2021, the Company has issued Bonus Shares in the ratio of 1:1 on 5th February 2021, with that the Standalone EPS for the previous quarters and year also adjusted accordingly.



10. The Company is primarily engaged in "Construction and Engineering activities" and there are no other reportable segments under Ind As 108 "Operating Segments".



11. As per the Management Assessment on the Impact of second wave of Covid-19 pandemic on the business operations of the Company, there is no forceasble impact on the achievement of targeted top line and cash flow of the company as most of the states have allowed infrastructure activities to be carried on during lockdown ensuring inflow of funds from bills raised. The strong liquid position as on March 31, 2021 and under utilization of fund/non fund based credit facilities will act as a buffer fund. The company will continue to evaluate and monitor material changes to future economic conditions arising from the on going second wave and will update its assessment.



12. Figures for the previous year/period have been regrouped/re-classified to confirm to the figures of the current period.