Quarterly Results

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2020
(Rs. in Lacs)
Sl.No. Particulars Standalone Consolidated
Quarter ended Year ended Quarter ended Year ended
30.06.2020 31.03.2020 30.06.2019 31.03.2020 30.06.2020 31.03.2020 30.06.2019 31.03.2020
Unaudited Audited Unaudited Audited Unaudited Audited Unaudited Audited
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
I Total Income from Operations             114.54             912.12            624.01         2,936.88             114.69          920.27        626.56    2,954.22
II Profit for the year/period before taxation         (1,125.76)           (514.47)        (1,333.37)        (3,105.09)        (1,112.95)        (494.85)   (1,348.21)   (3,036.91)
III Profit for the year/period after tax         (1,125.76)           (514.47)        (1,333.37)        (3,105.09)        (1,112.95)        (494.85)   (1,348.21)   (3,036.91)
IV Total Other comprehensive Income                 0.36                 1.28               (0.84)                1.43                 0.09              1.80          (1.71)           0.35
V Total Comprehensive Income         (1,125.40)           (513.19)        (1,334.21)        (3,103.66)        (1,112.86)        (493.05)   (1,349.92)   (3,036.56)
VI Paid-up equity share capital (Face Value Rs.10 per share)        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 (excluding Revaluation Reserve as shown in the Balance Sheet of previous year)  N/A  N/A  N/A       16,723.83  N/A  N/A  N/A  16,617.85
VIII Earning Per Share
Basic                (0.60)               (0.28)               (0.72)               (1.67)               (0.60)            (0.27)          (0.72)          (1.63)
Diluted                (0.60)               (0.28)               (0.72)               (1.67)               (0.60)            (0.27)          (0.72)          (1.63)
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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 a meeting held on August 27, 2020.
2 The Company has adopted IND AS 116 “Leases” effective April 1,2019, as notified by the Ministry of Corporate Affairs (MCA) vide Companies (Indian Accounting Standard), Amendment Rules,2019, using the modified retrospective method. Accordingly, comparatives for the year ended March 31, 2019 have not been retrospectively adjusted. The effect of this adoption is not material on the profit for the year and earning per share.
3 The Hon’ble High Court of Allahabad had, vide its Judgement dated October 26, 2016, on a Public Interest Litigation (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-Delhi Toll Road has been suspended from October 26, 2016, pursuant to which 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 an interim order and, though denying the interim stay, sought assistance of CAG to verify whether the Total Cost of the Project in terms of the Concession Agreement had been recovered or not by the Company.  The CAG has submitted its report to the Hon’ble Supreme Court, which at a hearing held on September 14, 2018 directed that the Report submitted by CAG be kept in a sealed cover.
The 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, constitute, 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 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 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 Delhi High Court on January 31, 2019, without any relief to NOIDA.
Noida has also filed an application for directions before Hon’ble Supreme Court seeking stay on the arbitral proceedings.On April 12,2019, the Hon’ble Supreme Court directed a stay on arbitral proceedings.The Company has filed an application before the Hon’ble Supreme Court of India on Janauary 31,2020,seeking the vacation of Stay on arbitral proceeding directed by the Hon’ble Supreme Court.The application will be lisited in due course.
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 value 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.
4 The Company has received the assessment order from Income Tax Department on December 27,2019 u/s 143(3) of the Income Tax Act, 1961 for the Assessment Year 2016-17 and 2017-18 wherein a demand amounting Rs.357 crores and Rs 383.48 crores 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.
During previous year,the Company has received an order from CIT(A) on April 25, 2018 and pursuant to the CIT (A) order, the AO has also passed consequential orders in respect of AYs 2006-07 to 2014-15, giving effect to the CIT (A)’s appellate orders and has enhanced the tax demand by Rs.10,893.30 crores. 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 Income Tax Appellate Tribunal (ITAT). The matter was heard by ITAT on December 19, 2018, January 2, 2019 and at the last hearing on February 6, 2019, the ITAT, based on the NCLAT order dated October 15, 2018, granting a moratorium on all creditors actions against IL&FS as well as of its group companies including NTBCL, adjourned the matter sine die, with directions to maintain status quo.
During November 2018 the CIT(A), NOIDA, passed a penalty order for A.Y. 2006-07 to 2014-15, based on which the Assessing  Officer Delhi imposed a penalty amounting to Rs. 10,893.30 crores during December 2018. The Company has filed an appeal, along with a stay application with ITAT on January 11, 2019. The matter was heard by the ITAT on March 29, 2019 and May 3, 2019, which adjourned the matter sine die, with directions to maintain status quo.
5 In terms of the affidavit filed by the Ministry of Corporate Affairs with the Hob’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 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 of the Company. Accordingly, the Company has not accured any interest on all its loans and borrowings with effect from October 15,2018 (“Cut-off date”).
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 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 towards arrears of license fee. The Company has requested NOIDA to keep demand in abeyance since the matter has been referred to Arbitration by NOIDA.
7 The novel coronavirus (COVID-19) outbreak which 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 to  all commercial and industrial establishments and to impose “lock-down” and curfews and preventing inter-state and intra-state travel and requiring offices to be closed.
As a result of the complete nationwide lockdown initially imposed from March 25, 2020 for 21 days and extended twice till 31st May 2020 and  the gradual re-opening of limited activities in a calibrated manner in areas outside containment zones, there is a impact on the Revenue from operations during during the Quarter ended June 30, 2020 (Space for Advertisement and the Rental Income from Office Space) owing to the restrictions and consequential waivers. Although the Company continues to exhibit reslience amind these uncertain times, the management belives that considering the Company’s historical performance and liquidity, the Company will be able to mitigate the risks associated with COVID-19. The Company will however continue to closely monitor any changes to the future economic conditions that may have impact on its business and financial position.
8 The Company had only one business segment and therefore reporting of segment wise information is not applicable.
9 Previous 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.
As per our separate report of even date attached
For N.M.Raiji & Co For and on behalf of the Board of Directors
Chartered Accountants
(Reg No.108296W)
S. N. Shivakumar
Partner Director
(M.No.088113)
Place: New Delhi Place: New Delhi
Date: August 27, 2020 Date: August 27, 2020