1.  Contingent liabilities not provided for:
 
 a) Letters of credit - Rs. 1,674.00 million (31-03-2010: Rs. 1,605.34
 million).
 
 b) Counter Guarantees given to the Bankers – Rs. 23,719.43 million
 (31-03-2010: Rs. 20,216.47 million).
 
 c) Performance guarantees, given on behalf of Subsidiaries and
 Associates Rs. 39.66 million (31-03-2010: Rs. 39.66 million).
 
 d) Corporate Guarantees given to Banks and Financial institutions for
 financial assistance extended to Subsidiaries, Associates and Joint
 Ventures Rs. 15,286.62 million (31-03-2010: Rs. 16,911.20 million).
 
 e) Disputed income tax liability for which the Company preferred appeal
 Rs. Nil (31-03-2010: Rs. 73.38 million).
 
 f) Disputed sales tax liability for which the Company preferred appeal
 Rs. 315.01 million (31-03-2010: Rs. 134.85 million).
 
 g) Disputed central excise duty relating to cement plant, which was
 sold in earlier year, for which the Company has filed an appeal to
 CESTAT, Bangalore Rs. 29.73 million (31-03-2010: Rs. 29.73 million)
 
 h) Disputed central excise duty relating to clearance of goods of LED
 division in favour of Developers of SEZ, for which the Company has
 filed an appeal to CESTAT, Bangalore Rs. 1.17 million (31-03-2010: Rs. 1.17
 million).
 
 i) Disputed service tax liability for which the Company preferred
 appeal Rs. 318.22 million (31-03-2010: Rs. 297.99 million)
 
 j) Disputed sole arbitrator award of Rs. 30.00 million in case of counter
 claim by Bhartiya Reserve Bank Note Mudran Private Limited, against
 which the Company has filed appeal before City Civil Court, Bangalore.
 (31-03-2010: Rs. 30.00 million)
 
 k) Claims against the Company not acknowledged as debts Rs. 3.63 million
 (31-03-2010: Rs. 3.63 million).
 
 l) Joint and several liability in respect of joint venture projects and
 liquidated damages in respect of delays in completion of projects –
 amount not ascertainable.
 
 m) Levy of labour cess @ 1% (w.e.f. July 2007) on the construction
 contracts executed by the Company in the State of Andhra Pradesh
 contested before the Honble High Court of Andhra Pradesh - amount not
 ascertainable.
 
 n) Future Export commitments on account of import of machinery and
 equipments at concessional rate of duty under EPCG scheme is Rs. 517.90
 million (31-3-2010: Rs. 534.05 million).
 
 3.  Loan Funds
 
 A.  Secured Loans
 
 a) 11.95% Redeemable Non Convertible Debentures:
 
 i) 11.95% Redeemable Non Convertible Debentures numbering to 1,000
 having a face value of Rs. 1 million each aggregating to Rs. 1,000 million
 privately placed with Life Insurance Corporation of India are secured
 by first charge in favour of IDBI Trusteeship Services Limited,
 trustees to the debenture holders:
 
 a) by way of hypothecation of the Companys movable properties
 specified in the Schedule-2 of Memorandum of Hypothecation dated 25th
 April, 2009;
 
 b) first charge by way of equitable mortgage by deposit of title deeds
 of the Companys immovable property situated at Gujarat as specified in
 first schedule to the Debenture Trust Deed dated 23rd April, 2009;
 
 c) equitable mortgage by deposit of title deeds of Companys immovable
 properties situated at Hyderabad, Bangalore, Mumbai and New Delhi as
 specified in Schedule-A of Declaration and Undertaking dated 25th
 April, 2009.
 
 ii) These debentures numbering to 1,000 having a face value of Rs. 1
 million each aggregating to Rs. 1,000 million are to be redeemed at par
 in 3 instalments in the ratio of 25:25:50 commencing at the end of 3rd
 year from the date of allotment i.e., 4th February, 2012 onwards.
 
 b) 10.50% Redeemable Non Convertible Debenture:
 
 i) 10.50% Redeemable Non Convertible Debentures numbering to 1,000
 having a face value of Rs. 1 million each comprising of 10 Detachable and
 Separately Transferable, Redeemable Principle Parts (STRPPS)
 aggregating to Rs. 1,000 million privately placed during the year with
 various banks & financial institution are secured by first charge in
 favour of IDBI Trusteeship Services Limited, trustees to the debenture
 holders, by way of equitable mortgage of the title deeds in respect of
 the companys immovable property situated at Kadi taluka, Mehasana
 district, Gujarat as specified in the first schedule to the Debenture
 Trust Deed dated 15th September, 2009 and by way of equitable mortgage
 by deposit of title deeds of the immovable properties of the Company
 and its subsidiary and its step-down subsidiaries, situated at
 Hyderabad as specified in Schedule-A to I of Declaration and
 Undertaking dated 12th October, 2009.
 
 ii) These debentures numbering to 1,000 having a face value of Rs. 1
 million each comprising of 10 STRPPS aggregating to Rs. 1,000 million are
 to be redeemed at par in 3 instalments in the ratio of 30:30:40
 commencing at the end of 3rd year from the date of allotment i.e., 24th
 July, 2012 onwards.
 
 c) The company has created debenture redemption reserve for both the
 above redeemable non-convertible debentures.
 
 d) Term Loans
 
 Term Loans availed from banks and others are secured by hypothecation
 of specific assets, comprising plant and machinery and construction
 equipment, acquired out of the said loans and personal guarantee of a
 Director.
 
 e) Working Capital Facilities: Cash Credit facilities and Working
 Capital Demand Loans from consortium of banks are secured by:
 
 i) Hypothecation against first charge on stocks, book debts and other
 current assets of the Company, both present and future, ranking parri
 passu with consortium banks
 
 ii) Hypothecation against first charge on all unencumbered fixed assets
 of the Project Division and Light Engineering Division of the Company
 both present and future ranking parri passu with consortium banks.
 
 iii) Equitable mortgage of three properties (Land & Buildings).
 
 iv) Personal guarantee of certain Directors.
 
 v) Working Capital Demand Loan in foreign currency is secured
 either/and or as:
 
 – Exclusive First hypothecation charge of project assets pertaining to
 the Al Amerat Quriyat road project.
 
 f) Vehicle Loans: Vehicle loans availed are secured by hypothecation of
 vehicles acquired out of the said loans.
 
 B.  Unsecured Loan
 
 a) Commercial Paper: Commercial paper represents Rs. 400 million
 (31.03.2010: Rs. 1,500 million) due within one year. The maximum amount
 of Commercial paper outstanding at any time during the year was Rs. 1,500
 million (31.03.2010: Rs. 1,500 million).
 
 b) 9.50 % Unsecured Redeemable Non-Convertible Debentures:
 
 i) 9.50 % Unsecured Redeemable Non-Convertible Debentures numbering to
 500 having face value of Rs. 4 million each comprising of four (4)
 Detachable and Separately Transferable Redeemable principal parts
 (STRPPS) of face value of Rs. 1 million each aggregating to Rs. 2,000
 million privately placed during the year with ICICI Bank and Trust
 Investment Advisors Private Limited.
 
 ii) These Debentures numbering to 500 having a face value of Rs. 4
 Million each comprising of four (4) STRPPS aggregating to Rs. 2,000
 Million are to be redeemed at par in four equated instalments
 commencing at the end of second year from the date of allotment i.e
 11th August, 2012 onwards.
 
 iii) The company has created debenture redemption reserve for the above
 redeemable non-convertible debentures.
 
 4.  Inventories
 
 Property Development Cost
 
 Property Development Cost includes Rs. 16.55 million (31-3-2010: Rs. 16.55
 million) representing the cost of acquisition of land from a land
 owner, for which the Company holds General Power of Attorney to deal
 with such land including registration of the sale in the name of the
 Company.
 
 5.  Cash and Bank balances
 
 a) Cash on hand includes Rs. 0.61 million (31.03.2010: Rs. 0.24 million)
 held in foreign currency.
 
 7.  Loans and Advances – Advances to Suppliers, Sub–contractors and
 others, include Rs. 2,256.50 million (31-3-2010: Rs. 1,431.79 million)
 representing amounts withheld by contractees.
 
 8.  Micro, Small and Medium Enterprises under the Micro, Small and
 Medium Enterprises Development Act, 2006 have been determined based on
 the information available with the company and the required disclosures
 are given below:
 
 9.  Employee Benefits
 
 a) Liability for retiring gratuity as on March 31, 2011 is Rs. 78.79
 million (31-3-2010: Rs. 48.72 million) of which Rs. 28.04 million
 (31-3-2010: Rs. 18.45 million) is funded with the Life Insurance
 Corporation of India. The balance of Rs. 50.75 million (31-3-2010: Rs.
 30.27 million) is included in Provision for Gratuity. The Liability for
 Gratuity and Cost of Compensated absences has been actuarially
 determined and provided for in the books.
 
 b) Details of the companys post-retirement gratuity plans for its
 employees including whole time directors are given below, which is
 certified by the actuary and relied upon by the auditors The liability
 on account of gratuity is covered partially through a recognized
 Gratuity Fund managed by Life Insurance Corporation of India and
 balance is provided on the basis of valuation of the liability by an
 independent actuary as at the year end. The management understands that
 LICs overall portfolio of assets is well diversified and as such, the
 long term return on the policy is expected to be higher than the rate
 of return on Central Government bonds.
 
 a) Discount Rate:
 
 The discount rate is based on the prevailing market yields of Indian
 government securities as at the balance sheet date for the estimated
 term of the obligations.
 
 b) Expected Rate of Return on Plan Assets:
 
 This is based on our expectation of the average long term rate of
 return expected on investments of the Fund during the estimated term of
 the obligations.
 
 c) Salary Escalation Rate:
 
 The estimates of future salary increases considered takes into account
 the inflation, seniority, promotion and other relevant factors.
 
 11. Related Party Transactions
 
 Following is the list of related parties and relationships:
 
 Sl. 
 no.  Particulars
 
 A) Subsidiaries
 
 1) NCC Infrastructure Holdings Limited
 
 2) NCC Urban Infrastructure Limited
 
 3) NCC Vizag Urban Infrastructure Limited
 
 4) Nagarjuna Construction Co.Ltd and Partners LLC
 
 5) OB Infrastructure Limited
 
 6) NCC Infrastructure Holdings Mauritius Pte. Limited
 
 7) Nagarjuna Construction Co. International LLC
 
 8) Nagarjuna Contracting Co.LLC
 
 9) Patnitop Ropeway and Resorts Limited
 
 10) Naftogaz Engineering Private Limited
 
 11) NCC International Convention Centre Limited
 
 12) NCC Oil & Gas Limited
 
 B) Step-down Subsidiaries
 
 13) Liquidity Limited
 
 14) Dhatri Developers & Projects Private Limited
 
 15) Sushanti Avenues Private Limited
 
 16) Sushruta Real Estates Private Limited
 
 17) PRG Estates Private Limited
 
 18) Thrilekya Real Estates Private Limited
 
 19) Varma Infrastructure Private Limited
 
 20) Nandyala Real Estates Private Limited
 
 21) Kedarnath Real Estates Private Limited
 
 22) AKHS Homes Private Limited
 
 23) JIC Homes Private Limited
 
 24) Sushanthi Housing Private Limited
 
 25) CSVS Property Developers Private Limited
 
 26) Vera Avenues Private Limited
 
 27) Sri Raga Nivas Property Developers Private Limited
 
 28) VSN Property Developers Private Limited
 
 29) M A Property Developers Private Limited
 
 30) Vara Infrastructure Private Limited
 
 31) Sri Raga Nivas Ventures Private Limited
 
 32) Mallelavanam Property Developers Private Limited
 
 33) Sradha Real Estates Private Limited
 
 34) Siripada Homes Private Limited
 
 35) NJC Avenues Private Limited
 
 36) NCC Urban Lanka (Private) Limited.
 
 37) Himachal Sorang Power Limited
 
 38) Al Mubarakia Contracting Company LLC
 
 39) Nelcast Enegry Corporation Limited
 
 40) Samashti Gas Energy Limited
 
 41) NCC Power Projects Limited*
 
 42) Western UP Tollway Limited*
 
 C) Joint Ventures
 
 43) Brindavan Infrastructure Company Limited
 
 44) Bangalore Elevated Tollway Limited
 
 45) Pondicherry Tindivanam Tollway Limited
 
 46) Premco – NCC
 
 47) NCC – MAYTAS
 
 48) SDB – NCC – NEC
 
 49) NCC – PNC
 
 50) NCC – SJRIPL
 
 51) Himachal JV
 
 52) NCC – KNR
 
 53) NCC – NEC – Maytas
 
 54) NCC – VEE
 
 55) NCC – MSKEL
 
 56) NG – NCC
 
 D) Associates
 
 57) Paschal Form Work (I) Private Limited
 
 58) Paschal Technology (I) Private Limited
 
 59) Nagarjuna Facilities Management Services LLC
 
 60) Himalayan Green Energy Private Limited
 
 61) Jubilee Hills Landmark Projects Limited
 
 62) Varaprada Real Estates Private Limited
 
 63) Machilipatnam Port Limited
 
 64) Tellapur Technocity (Mauritius)
 
 65) Tellapur Technocity Private Limited
 
 66) Tellapur Town Centre Private Limited
 
 67) Tellapur Tech Park Private Limited
 
 68) Gulbarga Airport Developers Private Limited
 
 69) Shimoga Airport Developers Private Limited
 
 E) Key Management Personnel
 
 70) Dr AVS Raju
 
 71) Sri AAV Ranga Raju
 
 72) Sri NR Alluri
 
 73) Sri JV Ranga Raju
 
 74) Sri AGK Raju
 
 75) Sri ASN Raju
 
 76) Sri RN Raju
 
 77) Sri AVN Raju
 
 F) Relatives of Key Management Personnel
 
 78) Smt. A.Neelavathi
 
 79) Smt. A.Bharathi
 
 80) Smt.B.Kausalya
 
 81) Smt.A.Satyanarayanamma
 
 82) Smt.J.Sridevi
 
 83) Smt. Sowjanya
 
 84) Smt. A.Arundathi
 
 G) Enterprises owned or significantly influenced by key management
 personnel or their relatives
 
 85) NCC Blue Water Products Limited
 
 86) Swetha Estates
 
 87) R.R.V. Infra Limited
 
 88) NCC Finance Limited
 
 89) Swetha Capital Private Limited
 
 90) Sirisha Memorial Charitable Trust
 
 91) Shyamala Agro Farms Private Limited
 
 92) Ranga Agri Impex Private Limited
 
 93) NCC Foundation
 
 94) Suryakumari Abraham Memorial Foundation
 
 95) Sirisha Projects Private Limited
 
 13. Segment Reporting: The Companys operations predominantly consist
 of construction / project activities. Hence there are no reportable
 segments under Accounting Standard – 17. During the year under report,
 substantial part of the Companys business has been carried out in
 India. The conditions prevailing in India being uniform, no separate
 geographical disclosures are considered necessary. The Companys
 operations outside India do not qualify as reportable segments as the
 operations are not material.
 
 14. Remittance in foreign currencies for dividend
 
 The company has not remitted any amount in foreign currencies on
 account of dividends during the year and does not have any information
 as to the extent to which remittances, if any, in foreign currencies on
 account of dividends have been made to/on behalf of non resident share
 holders. The particulars of dividend paid to non resident shareholders
 during the year ended March 31, 2011 are as under:
 
 15. Figures of previous year have been regrouped / rearranged /
 reclassified wherever necessary to conform to the current year
 presentation.