KNR Constructions Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2022

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 30, 2022.



2. The Board of Directors at its meeting held on May 30, 2022 have recommended a dividend of Rs. 0.25/- per equity share of face value of Rs. 2/- each for the financial year 2021-22, which is subject to approval of the share holders in the ensuing Annual General Meeting.



3. The above Standalone financial 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/CMD1/44/2019 dated March 29, 2019 & amendments thereto and were Audited by the Statutory Auditor of the Company.



4. The Standalone figures for the quarter ended March 31, 2022 and March 31, 2021 are the balancing figures between the audited figures in respect of the full financial year ended March 31, 2022 and March 31, 2021 and unaudited published year to date standalone figures up to Nine months ended December 31, 2021 and December 31, 2020 respectively.



5. The Income-Tax Department had carried out a search operation at the Company's various business premises, under Section 132 of the Income-tax Act, 1961 in March 2022. The Company has extended full cooperation to the Income-tax officials during the search and provided all the information sought by them. As on the date of issuance of these financial results, the Company has not received any formal communication from the Income-tax department. Management is of the view that this will not have any impact on the Company's financial position as at March 31, 2022 and the performance for the year ended on that date and hence no provision for any liability has been recognised in these Standalone financial results.



6. 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 the Company has also made a Provision/written off of 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.



7. During the quarter ended December 2021 and for the year ended 31st March 2022 the Company has transferred its 49% stake in two of its 100% wholly owned subsidiaries i.e. KNR Tirumala Infra Pvt Ltd and KNR Shankarampet Projects Pvt Ltd to CUBE Highways and Infrastructure III pte.ltd on 30.12.2021 for a value of Rs. 13,680.97 Lakhs and Rs. 10,851.23 Lakhs respectively, which includes repayment of 100% sub debt infused by the Company of Rs. 8,859.50 Lakhs and Rs. 7,469.50 Lakhs respectively, accordingly profit of Rs. 2,139.95 Lakhs was shown as exceptional item in the Statement of Standalone Profit and Loss.



8. For the Quarter and Year ended March 31, 2022, the Company has received an arbitration settlement in one of the Joint Venture project, the Company's share of Revenue of Rs. 323.63 lakhs and Company's share of Interest Income of Rs. 759.90 lakhs included in statement of Standalone Profit and Loss.



9. 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 Standalone Profit and Loss.



10. For the year ended March 31, 2021, the Company has issued Bonus Shares in the ratio of 1:1 on 5th February 2021.



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



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