Quarterly Results

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2021
                                (Rs. in Lacs)
Sl.No. Particulars Standalone Consolidated
Quarter ended Year ended Quarter ended Year ended
30.06.2021 31.03.2021 30.06.2020 31.03.2021 30.06.2021 31.03.2021 30.06.2020 31.03.2021
Unaudited Audited Unaudited Audited Unaudited Audited Unaudited Audited
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
I Total Income from Operations               127.61              647.73              114.54             1,358.74                127.96               649.24          114.69           1,362.01
II  Profit/ (Loss) from operations before tax          (1,145.58)             (793.13)          (1,125.76)           (4,045.60)            (1,130.11)              (780.13)     (1,112.95)          (3,995.49)
III  Net Profit/ (Loss) from continuing operations          (1,145.58)             (793.13)          (1,125.76)           (4,045.60)            (1,130.11)              (780.13)     (1,112.95)          (3,995.49)
 Net Profit/ (Loss) attributable to
 Shareholders of the Company          (1,145.58)             (793.13)          (1,125.76)           (4,045.60)            (1,137.69)              (762.34)     (1,112.95)          (3,977.70)
 Non-controlling interests                       –                       –                       –                        –                    7.58               (17.79)                  –               (17.79)
IV  Total Other comprehensive Income                 (0.07)                (1.54)                  0.36                  (0.28)                  (0.22)                 (0.89)             0.09                (0.88)
 Total other comprehensive income attributable to
 Shareholders of the Company                 (0.07)                (1.54)                  0.36                  (0.28)                  (0.15)                   9.29             0.09                  9.30
 Non-controlling interests                       –                       –                       –                        –                  (0.07)               (10.18)                  –               (10.18)
V  Total Comprehensive Income for the period          (1,145.65)             (794.67)          (1,125.40)           (4,045.88)            (1,130.33)              (781.02)     (1,112.86)          (3,996.37)
 Total comprehensive income attributable to
 Shareholders of the Company          (1,145.65)             (794.67)          (1,125.40)           (4,045.88)            (1,137.84)              (753.05)     (1,112.86)          (3,968.40)
 Non-controlling interests                       –                       –                       –                        –                    7.51               (27.97)                  –               (27.97)
VI  Paid-up equity share capital
 (Face Value Rs 10)          18,619.50          18,619.50         18,619.50           18,619.50           18,619.50          18,619.50     18,619.50          18,619.50
VII  Reserve & Surplus (exculding Revaluation reserve as shoewn in the Balance Sheet of Previous year)  N/A  N/A  N/A           12,677.95  N/A  N/A  N/A          12,649.45
VIII  Earning Per Share
 Basic                 (0.62)                (0.43)                (0.60)                  (2.17)                  (0.61)                 (0.42)            (0.60)                (2.15)
 Diluted                 (0.62)                (0.43)                (0.60)                  (2.17)                  (0.61)                 (0.42)            (0.60)                (2.15)
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Notes to Financial Results
1 The above results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meeting held on August 11, 2021. The statutory auditors of the Company have carried out a limited review of the financial results for the quarter ended June 30, 2021.
2 Hon’ble High Court of Allahabad had, vide its Judgement dated October 26, 2016, on a Public Interest Litigation filed in 2012 (challenging the validity of the Concession Agreement and seeking the Concession Agreement to be quashed) has directed the Company to stop collecting the user fee, holding the two specific provisions relating to levy and collection of fee to be inoperative, but refused to quash the Concession Agreement. Consequently, collection of user fee from the users of the NOIDA bridge has been suspended from October 26, 2016 and an appeal has been filed before the Hon’ble Supreme Court of India seeking an interim stay on the said judgement.
On November 11, 2016, the Hon’ble Supreme Court issued its Interim Order, denying the interim stay and sought assistance of the CAG to verify whether the Total Cost of the Project, in terms of the Concession Agreement, has been recovered or not by the Company. The CAG has submitted its report to the Hon’ble Supreme Court and the bench has directed on September 14, 2018, that the report submitted by the CAG be kept in a sealed cover.
The Special Leave Petition (SLP) is still pending for final adjudication in the Hon’ble Supreme Court. The Company has also notified NOIDA that the judgement of the Hon’ble Allahabad High Court, read with the Interim Order of the Hon’ble Supreme Court of India, constitutes a ‘change in law’ under the Concession Agreement and submitted a detailed proposal for modification of the Concession Agreement, so as to place the Company in substantially the same legal, commercial and economic position as it was prior to the said change in law. Since NOIDA did not act on the proposal, the Company had sent a notice of arbitration to NOIDA.
The Arbitral Tribunal has been constituted and both the Company and NOIDA have submitted their claims and counter claims. Further, NOIDA had filed an application under Section 16 of the Arbitration and Conciliation Act, 1961, on the maintainability of the arbitration proceedings, which was rejected by the Arbitral Tribunal vide order dated August 10, 2018.
NOIDA had filed an application in the Hon’ble Delhi High Court, under Section 34 of the Arbitration and Conciliation Act,1961, challenging the Arbitral Tribunal Order dated August 10, 2018, which has been disposed off by the Hon’ble Delhi High Court on January 31, 2019, without any relief to NOIDA.
NOIDA has also filed an application for directions before the Hon’ble Supreme Court, seeking a stay on the arbitral proceedings. On April 12, 2019, the Hon’ble Supreme Court directed a stay on the Arbitral proceedings.
On January 31, 2020, the Company filed an application for vacation of the interim stay granted vide Order dated April 12, 2019. In view of the outbreak of COVID-19, the functioning of the Supreme Court was limited to urgent matters only. Pursuant to the filling of letter of urgency, the matter was heard by the Hon’ble Supreme Court on September 21, 2020, October 5, 2020, November 18, 2020,  January 20, 2021, March 16, 2021, April 15, 2021 and August 10, 2021. However, the matter was not taken up for effective hearing. The next date of hearing is September 08,2021 as presently  been notified by the Hon’ble Supreme Court.
Based on a legal opinion and the Board of Directors’ reliance on the provisions of the Concession Agreement (relating to compensation and other recourses), the Company is confident that the underlying values of the intangible and other assets are not impaired.
The Company continues to fulfil its obligations as per the Concession Agreement, including maintenance of Project Assets.
3 The Company has received assessment orders from the Income Tax Department on December 27, 2019, u/s 143(3) of the Income Tax Act, 1961, for the Assessment Years 2016-17 and 2017-18, wherein a demand amounting to Rs.357 crores and Rs 383.48 crores respectively has been raised, based on the historical dispute with the Tax Department, which is primarily on account of addition of arrears of designated returns to be recovered in future, valuation of land and other recoveries. The Company has filed an appeal with the first level Appellate Authority. With the transition to Faceless Appeals, as introduced vide Faceless Appeal Scheme, 2020, both the appeals have been transferred to the National Faceless Appeal Center (NFAC). A notice was received from the NFAC fixing the date of compliance for January 13, 2021, however the matter was adjourned and no further notice has been issued thereafter.
Further, on May 15, 2021, the Company has received a Show Cause Notice u/s 270A of the Income Tax Act, 1961, from the National Faceless Assessment Centre for the AY 2016-17 and AY 2017-18 and the Company has requested to keep the penalty proceedings in abeyance as the appeals on merits are currently pending before the Commissioner of Income Tax (Appeals).
The Income Tax Department has, in earlier years, raised a demand of Rs.1,340.03 Crores which was primarily on account of addition of arrears of designated returns to be recovered in future from toll and revenue subsidy on account of allotment of land . Pursuant upon the receipt of order from CIT(A) on April 25, 2018, the Company received a notice of demand dated March 31, 2018, from the Assessing Officer (AO), Income Tax Department, New Delhi in respect of AYs 2006-07 to 2014-15, giving effect to the order from CIT (A), whereby an additional tax demand of Rs.10,893.30 Crores was raised. The enhancement of the demand was primarily on account of valuation of land. The Company has filed an appeal along with the stay application with the Income Tax Appellate Tribunal (ITAT). The matter was heard by ITAT on December 19, 2018, January 2, 2019 and February 6, 2019 and based on NCLAT order dated October 15, 2018, ITAT adjourned the matter sine die with directions to maintain status quo.
In November 2018, the CIT (A), Noida passed a penalty order for AY 2006-07 to 2014-15, based on which the Assessing Officer Delhi imposed a penalty amounting to Rs.10,893.30 Crores in December 2018. The Company has filed an appeal, along with a stay application with the Income Tax Appellate Tribunal (ITAT). The matter was heard by the ITAT on March 29, 2019 and May 3, 2019. ITAT has adjourned the matter sine die, with directions to maintain status quo.
4 In terms of an affidavit filed by the Ministry of Corporate Affairs with the Hon’ble National Company Law Appellate Tribunal (NCLAT) on May 21, 2019, the cut-off date of October 15, 2018 (“Cut-off date”) was proposed. The Hon’ble NCLAT vide its Order dated March 12, 2020, has approved the revised Resolution Framework submitted by the New Board along with its amendments. In the said Order, Hon’ble NCLAT has also approved October 15, 2018 as the Cut Off date for initiation of resolution process for IL&FS and its group companies, including the Company. Accordingly, the Company has not accrued any interest on all its loans and borrowings with effect from October 15, 2018 (“Cut-off date”).
5 The re-opening of the books of accounts, investigations by Serious Fraud Investigation Office (“SFIO”) and other regulatory agencies and forensic examination by Grant Thornton India LLP, which is under process for certain group entities, does not have any impact on the financial statements/operations of the Company.
6 On September 28, 2018, a writ of demand was served by NOIDA on the Company, for an amount of Rs 3.69 crores, in relation to revenue from advertising on the NOIDA side of DND Flyway. The Company has requested NOIDA to keep the writ of demand in abeyance, since the matter has been referred to Arbitration by NOIDA and further no action can be taken against the Company due to the moratorium granted in view of the NCLAT order dated October 15, 2018.
During December 2018 and April 2019, the Company has received an additional demand of Rs.2.34 crores and Rs 2.42 crores respectively towards arrears of license fee. The Company has requested NOIDA to keep the demand in abeyance since the matter has been referred to Arbitration by NOIDA.
7 After the novel coronavirus (COVID-19) outbreak was declared as a global pandemic by World Health Organization on March 11, 2020, the Government of India, followed by Government of NCT Delhi and Government of Uttar Pradesh, have, since March 16, 2020, been issuing various measures/directions/guidelines/orders. The country has also gone through a prolonged national lockdown which has significantly affected the economy.
In April 2021, just as the economic activities were slowly reviving and business were starting to resume normal operations, the second wave of COVID-19 hit the country and has derailed all economic activities for the second time. Although, unlike the first wave, the response to the second wave has been localised, due to the combined effect of the curfew imposed in NCT of Delhi and Noida, there has been a significant impact on the revenue from operations (space for advertisement and the rental income from letting of office space) during the first quarter ended June 30, 2021. The Company will however continue to closely monitor any changes to the future economic conditions that may have an impact on its business and financial position.
The Company continues to exhibit resilience amid these uncertain times and the management believes that considering the Company’s historical performance and liquidity, the Company will be able to mitigate the risks associated with COVID-19.
Pursuant to the request of the Licensees seeking relief on the Licensee fee payable to the Company in view of the second wave of Covid-19 and subsequent lockdown/curfew, the Company has written to all concerned authorities (SDMC/EDMC/NOIDA) requesting for remission/deferment in license fees/revenue share like many other parties and the concerned authorities were understood to be considering giving relief to licensees but a final response was awaited. Accordingly, the Company has not recognized the said licensee fee and has consequently not made provision for license fees/revenue share payable to SDMC/EDMC/NOIDA.
8 The Company has only one business segment and therefore reporting of segment wise information is not applicable.
9 Previous year/ period figures have been regrouped / reclassified wherever necessary.
10 The above is an extract of the detailed format of Quarterly Financial Results filed with the Stock Exchange under Regulation 33 of the SEBI (Listing and Other Disclosure Requirement ) Regulation 2015. The full format of the Quarterly Financial Results are available on the websites of the Company, National Stock Exchange of India Limited and BSE Limited at www.ntbcl.com, www.nseindia.com and www.bseindia.com respectively.
For and on behalf of the Board of Directors
Director
Place: Noida
Dated : August 11, 2021