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

1.The above results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company in their respective meetings held on May 28, 2021.



2.The Board of Directors have recommended a dividend of Rs. 0.80 per equity share for the year 2020-2021, which is subject to approval of the shareholders.



3.The Company, its Subsidiaries and Associates are primarily engaged in Construction / Project activities and there are no other reportable segments under Ind AS 108 "Operating Segments".



4.Exceptional items in financial results pertain to provision made towards obligation on sale of investment, impairment of investments, loans and profit on sale of investments.



5.During the quarter, the Group’s operations recovered further from the economic slowdown caused by the COVID-19 pandemic. The Group expects to recover the carrying value of the assets basing on the information available upto the date. The Group continues to monitor the economic effects of the uncertainty arising from the second wave of the pandemic while taking steps to improve its scale of execution.



6.The Code on Social Security 2020 and The Code on Wages 2019 (“Code”) received the Presidential Assent on September 28, 2020. The effective date and related rules of the Code have not been notified. The impact of the change, if any will be assessed and recognized post notification of the relevant provisions.



7.During the year, the Company has issued and allotted 18,000,000 Convertible Warrants on Preferential basis to the specified Promoters / Promoter Group at a price of Rs. 59/- per warrant convertible into one Equity Share of Rs. 2/- each at a premium of Rs. 57/- as per the provisions of Chapter VII of the SEBl ICDR Regulations. The Company received the part payment (25% of total consideration) of Rs. 26.55 crores on February 12, 2021.



8.Tax expense for the year ended March 31, 2021 is after accounting of tax credit of Rs. 32.03 crores on receipt of intimation for assessment year 2018-19 from department (quarter ended and year ended March 31, 2020 is after accounting of net tax credit o fRs. 13.45 crores and Rs. 86.54 crores respectively on receipt of assessment orders of previous years).



9.During the current quarter, based on its assessment of the availability of tax benefits considering the current status of the underlying projects, the Company has elected to follow the tax rates notified under section 115BAA of the Income tax act, 1961 and has filed the return of income accordingly for the previous year. Consequently, the Company has reversed current tax provision of Rs. 57.33 crores (including Rs. 12.98 crores recognised during the nine months ended December 31, 2020); reversed MAT credit of Rs. 26.71 crores; and reversed deferred tax asset by Rs. 24.58 crores (including Rs. 1.33 crores recognised during the nine months ended December 31, 2020) during the current quarter. This matter has resulted in an increase of tax expense by Rs. 5.61 crores for the current year and a decrease in tax expense by Rs. 6.04 crores for the quarter ended March 31, 2021.



10.The figures for the quarter ended March 31, 2021 and March 31, 2020 are the balancing figures between the audited figures of the full financial years ended March 31, 2021 and March 31, 2020 respectively and the published year to date figures up to the nine months ended December 31, 2020 and December 31, 2019 respectively.