FLY WAYN O I D AT O L LB R I D G E 1|Noida^^^Toll Bridge Co. Ltd.Annual Report 2002-2003g_ _ " SNoida^^^Toll Bridge Co.Ltd.BOARDOFDIRECTORSGopiK AroraChairmanRKBhargavaT T JosephOmPrakashPK SethiPrabilRajRaviParthasarathyHari SankaranKRamchandStephen TempleShahzaadDalaiSantoshSenapatiTim WoodheadPradeepPurlPresident & CEOMonishaMacedoCompanySecretaryAuditCommitteeGopiK AroraChairmanRK BhargavaPrabil RajSantoshSenapatiMonishaMacedoCompanySecretaryHRDCommitteeGopiK AroraChairmanRaviParthasarathyHariSankaranInvestorGrievanceCommitteeRK BhargavaChairmanGopiK AroraJSNoida^^^TollBridgeCo. Ltd.DIRECTORS'REPORTYour Directors have pleasure in presenting the Seventh Annual Report together with the Audited Accountsfor theyearended March 31, 2003.FINANCIALHIGHLIGHTS 2002-03(Rs in Million)TollRevenueOtherIncomeOperating & AdministrationExpensesMiscellaneousExpenditure writtenoffProfit before Interest & DepreciationInterest&Finance chargesDepreciationNetLoss carried toBalanceSheetYear ended 31 .3.2003164.4722.8882.2915.1789.89312.5363.34285.98Year ended 31 .3.200297.1620.9364.8515.1738.07426.0068.31456.24The interest and finance charges have been reduced consequent to Debt Restructuring of the Companyw.e.f April1, 2002 and conversion of FCDs into Equity on November 3, 2002.AspertheConcessionAgreementwhichyourCompanyhadenteredintowithNewOkhlaIndustrialDevelopmentAuthority(NOIDA)andInfrastructureLeasing & FinancialServicesLimited(IL&FS), yourCompanywouldbeentitledtoa designatedrateofreturnontheProjectCostduringtheConcessionPeriod. The Independent Auditor namely M/s. A F Ferguson & Company,Chartered Accountants, havedetermined accrued return as designated under the Concession Agreement and due to the Company tillMarch 31, 2003.As per the Independent Auditors the total amount to be recovered upto March 31, 2003undertheConcession Agreementincluding 20%return on theprojectcostaggregatestoRs. 5924.03million.DEBTRESTRUCTURINGTheCompanyhadapproachedbanksandfinancialinstitutionsprovidingfinancialassistancetotheCompanyforrestructuringofdebtsandinterestliability. TherestructuringhasbeenapprovedbytheCorporateDebtRestructuringEmpoweredgroup(CDR)ofthebanksandfinancialinstitutionsatit'smeetingheldonOctober29,2002givingeffecttotheproposalswitheffectfromApril1,2002. Thesalient features" of theproposalare asunder:1.Reduction of therate of interest tobe paid to theBanks andFinancialInstitutions.2.Bifurcation of the outstandingloan of theFinancialInstitutions as onMarch 31,2002 equallyintoPartAandPartB. WhereasthePartAistobeconvertedintoZeroCouponBonds,PartB willremain as term loan.3.Issue of Zero Coupon Bonds to Banks and Financial Institutions for sacrifice of their future interestobligationsby chargingareducedrateofintereston theoutstandingprincipalasonMarch31,2002.4.Deferred payment of interestand funding of thebalance interest.5.Infusion ofEquity Capital.6.Income from land development rights to repay therestructured debt as well as the sacrifice madeby thelenders towardsreductionin theinterestrates.. ==Noida^^^TollBridgeCo. Ltd.State Bank of India has been appointed by the CDR Cell as Monitoring Agent to oversee the implementationoftheapprovedpackageandtoforwardperiodicalReportstotheCDRCellontheprogressintheimplementation of the approved package.Details of theRestructuring packagehavebeenprovidedin theNotes forming a part of theAccounts.DIVIDENDSince the Companyhasnot begun making profits, theDirectors donotrecommend any dividend for theyear.OPERATIONS:TrafficGrowthThetraffichasshownapositivegrowthrateof2-3%p.mduring2002-2003. Theaveragedailytraffic(ADT)during the year was 38,474 vehicles as against 22,634 vehicles in the previous year(70%increase).The month-wise trafficandrevenue data is presented in Table1 below:Table1Traffic and TollRevenue onDNDFlyway (April-2002 -March 2003)MonthMar-02Apr-02May-02Jun-02Jul -02Aug-02Sep-02Oct-02Nov-02Dec-02Jan-03Feb-03Mar-03AverageA n n u alGrowth**Commercial204992270323057226082440725524263872743629700283502891131525291382664541%2 Wheel ers854398679836100961093911046115791233312002111891001111356113761096931%Cars678726746756727759802942930921918112296185941%Total297203329533639334603607237329387674071242632404603984044004414743847438%Growth*12.0%1 .0%-0.5%7.8%3.5%3.9%5.0%4.7%-5.1%-1 .5%10.5%-5.7%2.8%Revenue333,18837162137395737065639846443576145012747278550227449743149672655907351809245059555%Growth*1 1 .5%0.6%-0.9%7.5%9.4%3.3%5.0%6.2%-1.0%-0.1%12.6%-7.3%3.7%*overthepreviousmonth. March 2003overMarch 2002?rNoidaTollBridgeCo. Ltd.The Average Daily Traffic(ADT)in the month of March 2002 was 29,720 vehicles and the correspondingAverage Daily Toll Collection (ADTC) was Rs 3.33 lacs. The ADT and ADTC increased to 41,474 vehiclesandRs. 5.18lacs/dayby March 2003i.e. an annual growth of 40%intrafficand55%in tollrevenue.Themonthlytrafficandrevenue growthis depictedin Chart1.Chart1Daily Traffic and Revenue GrowthAverage Daily Revenue (Rs ./Day) Avg. Daily Traffic(Vehicles/Day)0)3C0)0)Rs.625,000Rs.575,000Rs.525,000Rs.475,000Rs.425,000Rs.375,000Rs,325,000Rs.275000450004000035000 oI30000 H25000It may be noted there has been a secular increase in traffic during the first quarter of financial year 2003-2004. Traffichascrossed 50,000PCUson several days during themonth of July, 2003.The trafficmainly comprised of Cars (69%) and Two Wheelers (29%). Whereas Cars contributed to 78%ofthe totalrevenue, 2-wheelersandCommercial vehicles accounted for16% and6%respectively. Thevehicle class-wise distribution oftrafficis shownbelowin Chart 2.Chart 2-1SHARE OF TOTAL TRAFFIC2-Wheeler29%Commercial=sJ5 Noida^^^TollBridgeCo.Ltd.Chart-2-2SHARE OF TOTAL INCOME2-Wheelers16%x\Commercial6%Car78%ETC penetration i.e. prepayment of toll,has also shown a steadyincrease during 2002-2003. The shareofETC traffichas increased from 27% in March 2002 to 34%in March 2003. The corresponding share ofETCin total toll income was 21% and 29%respectively. TheETC penetration in various classes is givenbelowinChart3.Chart 3GROWTH IN ETCPENETRATION03 Mar-02m Mar-03Cars 2-WheelersCommercial TotalDevelopmentRightsAnticipating a revenue shortfall, the Company has invoked the Development Rights under the ConcessionAgreement for implementing the development projects that would provide liquidity in the initial years. TheCompanyisin possession of about100 acres of land out of which 34 acres isin Noida and thebalanceinDelhi. NOIDAhad "in-principle" agreed to grantdevelopmentrights. TheCompanyisconfident thatitwill be able to generate DevelopmentIncome ofRs 100 crores by March 2006 and has entered into anagreementwithM/sHiranandaniDevelopers(P)Ltd.,oneofthereputedrealestatedevelopersinthecountryfor implementationof thedevelopmentrights.In theevent thattheDevelopmentRights accrueto the Companyin their totality, the revenue shall be utilised to de-leverage the Company.^J3Noida^^TollBridgeCo.Ltd.NewLinksTheCompanyhasinvitedtendersfortheMayurViharLinkProject. Theprojectwhencompletedwillresultinfurthersavingintraveltimeanddistance,inducingMayurViharresidentstousetheDNDFlywayas theirpreferredroutetoSouthDelhi.In thefirstphase,a2laneonewaylinkin theDelhitoMayur Vihar direction is being implemented which will be followed up by a parallel link in the Mayur VihartoDelhi directionbasedontheresponsereceived. Theinitial trafficon theMayur ViharLinkProjectisexpected to be approximately10,000 vehicles per day, which will substantially increase once the KalindiBypass and its linkage toDNDFlywayare inplace.A detailed analysis of the competition, threats, opportunities and outlook for the project has been providedin the Management Discussion and AnalysisReport attached to this reportCREDITRATING:CAREhasretainedtheratingofCAREAAA (SO)(TripleA -StructuredObligation)for theSecuredDeepDiscountBonds(DDB)oftheCompany. TheSecured14%FullyConvertibleDebentures(FCD)issuedby theCompanyvidethePublicIssue,werecompulsorilyconvertedonNovember3,2002andhencetheCAREAAA(SO)ratingforthesamewaswithdrawnthereafter. TheratingfortheDDBisbasedonthecreditenhancementin theformofanirrevocablerepurchaseguaranteeavailableto theDDB holders for selling the DDEs to Infrastructure Development Finance Company Ltd. and InfrastructureLeasing & Financial Services Ltd. (IL&FS)in the 5th and 9th years.MANAGEMENTDISCUSSION ANDANALYSISREPORTAManagementDiscussion& AnalysisReportisattached to thisreport.SHARECAPITAL:The Company'sFully Convertible Debentures were compulsorily converted into Equity Shares at par onNovember3, 2002,pursuant to which theCompany'sEquityShareCapitalisRs1224million.PursuanttothetermsoftheapprovaloftheCompany'sdebtrestructuringpackageby theCorporateDebtRestructuringEmpoweredGroupofBanksandFinancialInstitutions, theCompanyisrequired toraiseEquity CapitaluptoRs. 25 crores to finance certainnetworkimprovementmeasures. Accordingly,theAuthorisedCapitaloftheCompanyisproposedtoberaisedbyRs. 25croresattheforthcomingAnnual General Meeting. Further, the Company has filed an OfferDocument for a Rights Issue of EquityShares atpar, aggregating toRs. 10.2crores with theSecurities& ExchangeBoard ofIndia.DIRECTORS:.Mr. Dharmendra Deo, CEO, New Okhla Industrial Development Authority, was appointed in his ex- officiocapacityasDirectorinthecasualvacancycausedbytheresignationofMr. V. K. Malhotra onMay17,2002. Consequent to a change in his portfolio, his resignation was taken onrecord at the Meeting of theBoard ofDirectors of theCompanyheld onSeptember6, 2002.Mr.DeoDatta,AdditionalCEO,NewOkhlaIndustrialDevelopmentAuthority,wasappointedinhisex-officio capacity as an Additional Director in the Meeting of the Board of Directors of the.Company held onMay17, 2002. Due to a change in hisportfolio, his resignation was taken on record at the Meeting of theBoard ofDirectors of theCompanyheld onSeptember 6, 2002.Mr.GrahamJang,representingAsianInfrastructureMezzanineCapitalFund(AIMCF),resignedfromtheBoard ofDirectors with effectfromMay31, 2002.J5Noida'^|g?'TollBridgeCo.Ltd.Mr. Stephen Temple was nominatedby AsianInfrastructureMezzanineCapitalFund(AIMCF)to fill thevacancy causedby theresignation ofMr. Graham Jang, attheMeeting of theBoard ofDirectorsof theCompanyheldonSeptember6,2002. TheCompanyhasreceivedaproposalfromaMemberof theCompany under Section 257 of theCompanies Act,1956, for theappointment of Mr. Stephen Temple asDirector.Mr. ShardulShroffresigned from theBoard ofDirectors witheffectfromAugust16, 2002.Mr.Dharmendra,DeputySecretary(UC&D),MinistryofUrbanDevelopment&PovertyAlleviationwastransferred fromhispostandhisresignation from theBoard ofDirectorsof theCompanywas taken onrecord with effect from September 6, 2002.Mr.R.S.Sandhu,NomineeDirector,representingIFCILtd.,resignedfromtheBoardofDirectorswith,effect fromSeptember6, 2002.Mr. PrabilRaj was appointed as a Non-Retiring,NomineeDirector,representingIFCIin theMeeting oftheBoard ofDirectorsof theCompanyheld onSeptember6, 2002.Mr. PradeepKumarSethi was appointed as a Non-Retiring,NomineeDirectorrepresentingIndustrialDevelopmentBankofIndia witheffectfromSeptember24,2002.Dr. Archana Hingorani attended Board Meetings held on September 6, 2002 and November19, 2002 asAlternateDirectortoMr.StephenTemplerepresentingAsianInfrastructureMezzanineCapitalFund(AIMCF).Mr.DavidWilliamattendedaBoardMeetingheldonSeptember6,2002asAlternateDirectortoMr. Timothy Woodhead,representing the O&M Operator,Intertoll.Dr.OmPrakash,CEO,NewOkhlaIndustrialDevelopmentAuthority(NOIDA),wasappointedasanAdditional Director representing NOIDA, in his ex- officio capacity at the Board Meeting held on February28, 2003 and vacates his office at the forthcoming Annual General Meeting of the Company. The Companyhas received a proposal from a Member of the Company under Section 257 of the Companies Act,1956,fortheappointmentofDr. OmPrakashasDirector.Mr. T.T. Joseph,PrincipalSecretary,Public WorksDepartment,Delhi,was appointedas an AdditionalDirectorinhisex- officiocapacityat theBoardMeetingheld onMay27,2003 andvacateshisofficeatthe forthcoming Annual General Meeting of theCompany. TheCompanyhasreceived a proposal from aMember of theCompanyunder Section 257 of theCompanies Act,1956, for the appointment of Mr. T. T.JosephasDirector.Mr.KRamchandwasinitiallyappointedinacasualvacancy.HistermexpiresatthisAnnualGeneralMeeting. TheCompanyhasreceiveda proposalfromaMemberof theCompanyunderSection257oftheCompanis Act,1956, for the appointment ofMr. K Ramchand asDirector.In accordance with therequirements of theCompaniesAct,1956 one third of theDirectors are liable toretire by rotation. Mr. Ravi Parthasarathy,Mr.RK Bhargava andMr. Hari Sankaran, Directors, are due toretirebyrotationat this seventh AnnualGeneralMeeting. Theyare eligible for re-appointment.FIXEDDEPOSITS:The Companyhas not accepted any Fixed Deposits during the yearunderreview.8J5Noida^^^TollBridgeCo. Ltd.PROJECT ED VERSUS ACT UAL PROFIT ABILIT Y:Astatementshowing theutilisationof theentirePublicIssueproceeds was providedin theDirectors'Report for FY 2000-2001.Thecomparative figures for projected versus Actual Profit after Tax (PAT) for the year 2002- 2003 are asunder:ProjectedPAT32millionActualPAT(286 million)LISTING:TheCompany'sEquitySharesaggregatingtoRs.1224millionandsecuredDeepDiscountBondsaggregating toRs. 500million are listed on the following threeStockExchanges:The U P StockExchange Assn. Ltd.Padam Towers14/113 Civil LinesKanpurTheStockExchange,Mumbai1stFloor,New Trading RingRotunda Building,P J TowersDalai Street,FortMumbai -400 001TheNationalStockExchangeofIndiaExchangePlaza,5th Floor,PlotNo. C/1,G BlockBandra-Kurla Complex,Bandra (E)Mumbai - 400051TheAnnualListingFees for Financial Year 2003-2004 have been paid to all three of the aforementionedStockExchanges.PARTICULARS OFEMPLOYEES:The Company has14 employees as of March 31, 2003.2 Employees throughout/part of the year were inreceipt ofremunerationofRs. 24,00,0007-ormoreperannumorRs. 2,00,0007-ormorepermonth,asthe casemay be.In accordance with the provisions of Section 217 (2A) of the Companies Act,1956 read with Companies(ParticularsofEmployees)Rules,1975namesandotherparticularsofemployeesaresetoutintheannexure to thisreport.ENERGYCONSERVATION,TECHNOLOGYABSORPTIONANDFOREIGNEXCHANGEEARNINGSAND OUTGO:TheCompanydoesnotownanymanufacturingfacilitieshenceparticularswithregardtoenergyconservation and technology absorption are not applicable.The Companyhad the following foreignexchange outgo:As atMarch31. 2003(Rs.)Previous Year(Rs)Travel21,5601,594,514Payments toContractors2,609,2502,789,234TheCompanydoesnothave any foreign exchangeearnings.5::. s Noida^^^?" TollBridgeCo. Ltd.CORPORATEGOVERNANCE:AreportonCorporateGovernancepursuanttotheprovisionsofClause 49oftheListing Agreementisannexed to thisreport.AUDITORS'REPORTThe Auditors of theCompanyin theirReport to theMembershave expressed theopinion that the considerationfortheissueof SeriesB ZeroCouponBonds(ZCBs)being thepresent valueof thereducedinterest should beamortised over the period of the ZCBs and a corresponding equivalent amount should be brought into the booksas Secured Loans.If the foregoing hadbeen carried out, loss for the year andSecured Loans would have beenhigherbyRs 4.54 crores.TheCompanyhasissued 5,450,000 ZCB- SeriesB ofRs1007-each aggregating toRs 545,000,0007- to BanksandFinancialInstitutionsagainstthesacrificemadebythembywayofreductionofinterestratesfromthecontracted terms, pursuant to the approval of the Company's debtrestructuring package by the Corporate DebtRestructuring Empowered Group of Banks and Financial Institutions. The Company has invoked the developmentrights available under the Concession Agreement as determined by the Independent Auditor.Based on a valuationdone by an Independent Professional Firm, theresources realisable on disposal of land developmentrights on aconservative estimate would be in excess of the amount required by the Company to redeem these ZCBs as wellas to repay the principal amount of loan rescheduled as per the terms of restructuring of the debts.The redemptionof these ZCBs will be made by March 31, 2014 or such other date as may be agreed by the Banks and FinancialInstitutions.In viewof theforegoing,yourDirectorsfeel that amortisation oftheliability wouldnotbenecessaryand the Accounts as presented to theMembers together with Notes thereonreflect the correct financial positionoftheCompany.DIRECTORS'RESPONSIBILITYSTATEMENT:Section 217 (2AA) of the Companies Act,1956 as amended in December 2000 requires the Board of Directors toprovide a statement to the members of the Company in connection with maintenance of books, records, preparationofAnnual Accountsin conformitywith theacceptedaccounting standardsandpastpracticesfollowedby theCompany.Pursuant to the foregoing, and on the basis of representation received from the Operating Management,andafterdueenquiry,it isconfirmed that:1.In the preparation of the annual accounts, the applicable Accounting Standards have been followed alongwithproperexplanationrelating tomaterialdepartures.2.The Directors have selected such Accounting policies and applied them consistently and made judgementsandestimates thatarereasonable andprudentsoas togive a trueandfairviewof thestate ofaffairsoftheCompanyat theendof the financial yearandof theprofitor loss of theCompanyfor thatperiod.3.TheDirectorshave taken proper andsufficientcare for themaintenanceof adequate Accountingrecordsin accordance with the provisions of this Act for safeguarding the assets of the Company and for preventingand detecting fraud andotherirregularities.4.TheDirectorshaveprepared the Annual Accounts on a going concern basis.STATUTORYAUDITORS:M/sSBBillimoria & Co., theAuditors of theCompanyretireat the conclusion of the ensuing AnnualGeneralMeetingandhaveexpressedtheirunwillingnesstobere-appointedasAuditorsoftheCompany.Themanagementplaceonrecord theirappreciationfor theprofessionalservicesandadvicegivenby them.It is proposed to appoint M/s Luthra & Luthra, Chartered Accountants as Auditors of the Company. ConfirmationhasbeenreceivedfromLuthra&Luthra,CharteredAccountants,totheeffectthatifappointed,theywouldbeincomplianceofSection224(1)oftheCompanies Act, 1956.Subjecttotheshareholdersapproval,itisproposed thatM/sLuthra&Luthrabe appointed astheAuditorsof theCompanyfrom theconclusion of thisAnnualGeneralMeetinguntiltheconclusionofthenextAnnualGeneralMeeting.10_ _ 5 Noida^=^j^TollBridgeCo. Ltd.ACKNOWLEDGEMENTS:TheBoard ofDirectorsplaceonrecord thecontinued supportextended to thembythe variousGovernmentauthorities,Banks,FinancialInstitutionsandShareholdersof theCompany.TheDirectorswouldalsoliketoplaceonrecordtheirappreciationfor thehardworkanddedicationoftheemployees of the Companyat alllevels.ByorderoftheBoardForNOIDA TOLLBRIDGECOMPANYLIMITEDMr. Gopi AroraChairmanNewDelhiDate: July28,200311J5Noida^^^TollBridgeCo.Ltd.ManagementDiscussion and AnalysisReportIndustryStructureandDevelopmentNoidaTollBridgeCo.Ltd. isaspecialpurposevehiclesetuptoimplementtheDelhi-NoidaBridgeProjecton a BOOT basis. TheDelhi-NoidaBridge is a tolled facility connecting Noida to MaharaniBaghinSouthDelhiacrosstheriverYamuna. TheotherbridgesintheinfluenceareaaretheNizamuddinBridge approximately 3 km upstream of theDelhi-Noida Bridge and the Okhla Barrage, which is about1kmdownstream. TheNizamuddin Bridge andOkhla Barrage caterto about135,000and 85,000 PCUsperdayrespectively. TheDelhiNoidaBridge,whichhasbeennamedDNDFlyway,istheonlytolledfacility.OpportunitiesThe commissioning of the Noida -GreaterNoidaExpresswayhas givenimpetus to the development ofGreater Noida and opened up new sectors in Noida for commercial growth. Thereduced travel time fromDelhihasmadeNoida/GreaterNoidaattractivedestinationsandtheareaislikelytoseeexponentialgrowthparticularlyinrespectof entertainmentinfrastructure(multiplexes,shoppingmalls,amusementparks)andmini townships (Medical City,Biotech City, ITParks etc). TheCompany islikely tobenefitfrom this growth.The Company also sees opportunities for augmenting traffic by road corridor improvements in the influencearea, primarily designed to improve the accessibility of theDelhi-NoidaBridge and accentuate time anddistancesavings.Networkimprovementsandbetterconnectivityarenecessaryforaugmentingtrafficon thebridgein thelong run, for whichGovernment supportis crucial to theCompanyCompetition/ ThreatsThemajorcompetitiontotheCompanyisfromtheparallelbridges viz. NizamuddinBridgeandOkhlaBarrage, primarilybecause these are free to use. The commissioning of theFlyovers at the junctions ofUPLinkRoadandNH24,NizamuddinBridgeandRingRoadarelikelytoimprove throughputonNizamuddinBridge, which may adversely impact trafficonDNDFlyway.TheConcession Agreementprovides for trafficriskmitigationmeasuresbyallowing for NOIDA tograntDevelopmentRights. TheCompanyhasin their possession100 acres of land in Noida and Delhi, whichwillbedevelopedinphases,subjecttograntofDevelopmentRightsbyNOIDA/Govt.ofUP/Govt.ofDelhi,whichareunderprocessing. ThedenialofDevelopmentRightsorconditionalgrantof thesamewill alsoposea financial threat to theCompany.Class-wise trafficClassProjected*ActualAchievement2 Wheelers382471096929%Cars2621926645102%Trucks/Buses220138594%Total864793847444%*As per the1997 trafficprojections made by M/s.KampsaxInternational A/S,for 2nd year of operations.OutlookThe Lenders have approved a debt - restructuring plan for the Company. Theinterest and repayment hasnowbeenlinkedtotherevisedtrafficprojectionsmadebyM/sWilburSmithAssociatesinApril 2002.12_ ^ sNoida^^^TollBridgeCo.Ltd.Consequently, the Companyhasbeen able to achieve cashbreak-even during theFinancial Year 2002-2003. Theactual trafficandincomefor theyear2002-03 hasoutperformed theprojectionsadopted forthe debt- restructuring plan, by 6% and 20% respectively.The average daily traffic and income increasedby 38% and 55% respectively during the year. This has been achieved through optimisation of the pricingand discount strategy, which has favourably impacted the average toll realisation per vehicle. In the lastoneyear,theaveragetollpervehiclehasimprovedfromRs. 11.06toRs.12.50andtheCompanyistaking steps to boost the same further.TheCompanyhas entered into a Memorandum of Agreement with M/sHiranandani DevelopersPrivateLimited for implementation of thedevelopment rights. The Company is of the view that the association ofa leading real estate developer will provide impetus to theprocess of procuring development rights. TheCompanyisconfidentofgeneratingRs100croresofdevelopmentincomebyMarch2006andimplementing theroad networkimprovementplans.Thetraffichasshownabuoyancywhichaugurswellfor thefutureandtheCompanyisconfidentthatwith the planned measures, as outlined above, it will be able to meet its commitments to the lenders andotherstakeholdersin themedium andlong term.Internal ControlSystemand their AdequacyTheCompanyhasa well-definedInternalControlSystemfor allareasof operationwhichhavebeendefinedby theHRD Committee, AuditCommitteeandMarketingCommittee ofDirectors.TheTollCollectionandManagementSystemhasinbuiltselfauditcapabilities.TheCompanyhasindependentlyconducted both system and financial audits on the toll operations.The Company has introduced internal control systems to monitor business and operational performance,which are aimed at ensuring business integrity and promoting operational efficiency.The Company hasappointed M/s. Patel & Deodhar, Chartered Accountants as Internal Auditors to ensure that the Company'ssystemsandpracticesaredesignedwithadequateinternalcontrolstomatchthesizeandnatureofoperationsof theCompany.TheInternalAuditorsconductaperiodicauditaridreviewcoveringalloperations,basedonanauditprogramme. Thereportsoftheauditorsalong-withthemanagementresponseareplacedbeforetheAuditCommitteefor discussionandfurtheraction.TheAuditCommitteealsoreviews theaccounts oftheCompanybefore they are submitted to theBoard for theirapprovaland adoption.Financial and OperationalPerformanceThe original revenue projections were based on the traffic studies carried out by M/s Kampsax Internationalin1997. Thea.ctualachievementincomparisontothesecondyeartrafficprojectionsprojectedinthesaidreportis as under:Projected:Rs. 472 millionActual:Rs. 187.35 millionAchievement:39.6%Inviewofthesubstantialvariationbetweentheprojectedandactualtraffic,afreshtrafficstudywascarried out through M/s Wilbur Smith Associates (WSA)in April 2002 which has projected the traffic forDNDFlyway as givenbelow:13. SNoida" ^^^ToUBridgeCo.Ltd.CategoryJ,/Year>Trucks/BusesCars2-WheelersTotal2002134224087127553818420112677480582544976184202136696585234872104393ThefinancialprojectionsassumedbyStateBankofIndia,in thedebt-restructuring proposalapprovedby theCDR Cell werebased on theabovetrafficstudy.Thecomparison of actualperformance and theprojected based on theCDR figuresis givenbelow:ProjectedRevenue:Rs. 309 millionActualRevenue:Rs. 187.35 millionAchievement 60.6%TheaboveprojectionsassumeRs.150millionofnon-traffici.e. developmentincome,realisationofwhich has been delayed andis expected to begin in the next financial year. If the development income isexcluded from theprojections then theachievementis118%.As per the revised traffic projections, the expected average daily traffic(ADT) was 36,275 vehicles in theyear2002.TheactualADTachievedduringtheyear2002-03was38,474comprising10,969Two-Wheelers, 26,645 cars and only859 buses/trucks.The traffic during the year 2002-03 has been more or less in line with the projections made by WSA. Theyear - to - year growth has been substantial; from 29,700 vehicle/dayin March 2002 the traffichas goneupto about41,500 vehicle/dayinMarch2003 i.e. anannualincreaseof38%. Thisisanencouragingtrend andindicatesbuoyancyin trafficwhich augurs well for the future.HumanResourcesTheCompanyhasa lean organisation with a total staffstrengthof14. Qualified personnelreporting tothePresident& CEO,head thekey functions such asFinance, Secretarial,Marketing andOperations.CautionaryStatementCertainstatementsintheManagementDiscussionandAnalysisReportdescribingtheCompany'sobjectives,estimatesandexpectationsorpredictionsmaybeforwardlookingstatementswithinthemeaning of applicable securitieslaws andregulations. Actualresults could differ from thoseexpressedor implied. Important factors, which could make a difference to the Company's operations, include traffic,government concessions, network improvements, changes in government regulations and other incidentalfactors.14gJ5Noida^^^TollBridgeCo. Ltd.Annexure to the Directors' ReportREPORT ONCORPORATE GOVERNANCECorporate GovernanceCorporate Governance calls for the affairs of a Company to be controlled and regulated in a mannerthat is transparent, ethical and accountable.In this pursuit, your Company is committed to transparencyin all its dealings and places uncompromising emphasis on integrity and regulatory compliances. Thebasic philosophy of Corporate Governance in your Company has been to achieve business excellence,to enhance shareholders value, keeping in view the needs and the interest of allits stakeholders.Your Company continues to follow procedures and practices in conformity with the code of CorporateGovernance as enunciated in theListing Agreement.The Company believes that emphasis on corporate governance is an important instrument of investorprotection besides being indispensable for healthy business growth andresilient and vibrant capitalmarkets.GoodcorporategovernanceprovidesanappropriateframeworkfortheBoardandtheManagement tocarryout theobjectives thatarein theinterests of theCompany,it's shareholdersand investors.Board of Directors(a)Composition of theBoardThe Board of Directors comprises of thirteen members. As on date all the Directors on the Boardare non- executive. The Board comprises of an independent Chairman and eleven IndependentDirectors(which includes 3IndependentPromoterDirectors who, as decided by theBoard ofDirectors, are considered to be independent in their judgment and hence termed as IndependentDirectors) who, bring a wide range of skills and experience to theBoard.The composition of theBoard of Directors as on May 27, 2003 is as given below:12.3.4.5.6.7.8.9.10.11.12.13.NameMr. Gopi Arora, ChairmanMr.RK BhargavaMr. T. T. JosephDr. OmPrakashMr. PrabilRajMrv P K SethiMr.RaviParthasarathyMr. Hari SankaranMr. K. RamchandMr. Stephen TempleMr. Shahzaad DalaiMr. Santosh SenapatiMr. Timothy WoodheadExecutive/Non-ExecutiveNon-ExecutiveNon-ExecutiveNon-ExecutiveNon-ExecutiveNon-ExecutiveNon-ExecutiveNon-ExecutiveNon-ExecutiveNon-ExecutiveNon-ExecutiveNon-ExecutiveNon-ExecutiveNon-ExecutiveIndependent/othersIndependentIndependentIndependentNomineeDirector -IndependentNomineeDirector -IndependentNomineeDirector -IndependentPromoterDirector -IndependentPromoterDirector -IndependentPromoterDirector -IndependentNomineeDirector -IndependentNominee Director -IndependentNomineeDirector -IndependentNomineeDirectorRepresenting/Nominee---New Okhla IndustrialDevelopmentAuthorityMonitoring Agent / LendersIndustrialDevelopmentBank of India-LendersInfrastructureLeasing&Financial Services (IL&FS)IL&FSIL&FSAsianInfrastructure MezzanineCapital FundAIGIndian SectoralEquityTrustAIGIndian Sectoral Equity TrustO&M Operator /Shareholder15asNoidaTollBridgeCo. Ltd.Note:(b)During the course of the year Mr. V. K. Malhotra, Mr. Deo Datta, Mr. Dharmendra Deo, Mr. Dharmendra,Mr. Sanjiv Nair, Mr. R S Sandhu, Mr. Shardul ShroffandMr. Graham Jang resigned from theBoardofDirectors.The composition of the Board is in conformity with the Listing Agreement.Directorships / CommitteeMemberships / ChairmanshipsDetails of the Directorships/ Memberships on Committees of public companies (including Noida TollBridge Company Limited) held by all the Directors on the Board are as provided below:SI.No.1.2.3.4.5.6.7.8.9.10.11.12.13.14.15.16.17.18.19.Board ofDirectorsMr. Gopi Arora (Chairman)Mr. R KBhargavaMr. DharmendraDeo#Mr. Dharmender*Mr. Deo Datta*Mr. T. T. JosephDr. Om PrakashMr. SanjivNairMr. R.S. Sandhu*Mr. Prabil RajMr. P K SethiMr.RaviParthasarathyMr. HariSankaranMr. KRamchandMr. Graham Jang*Mr. Stephen TempleMr. Shahzaad DalaiMr. Santosh SenapatiMr. Timothy James WoodheadNo. ofDirectorships118111111212151511111352No. ofMemberships55-1----111885--102-No. ofChairmanshipsofCommittees32----------1----2--*Resigned during the year#Appointed andResigned during the yearNote:For the purpose of considering the total number of Directorships, all public limited companies, whetherlisted or not, have been considered. Private limited companies, foreign companies and companiesunderSection 25 of the Companies Act, 1956,however,have not been included. Further only theAudit Committee, the Shareholders'/Investor Grievance Committee and the Remuneration Committeehave been considered for calculating the total number of Committee memberships held by a Director.Directorships do not include the Alternate Directorships.Mr. V. K. Malhotra(May 17,2002),Mr.SanjivNair(May 17,2002),Mr.DeoDatta(September6,2002),Mr.DharmendraDeo(September6,2002),Mr.Dharmendra(September6,2002),16.SNoida^^^TollBridgeCo. Ltd.(c)Mr. R.S.Sandhu (September 6, 2002), Mr. Shardul Shroff(August16, 2002) and Mr. Graham Jang(May31, 2002)haveresigned from theBoard during thecourse of the year. Resignation datesinbrackets.Meetings HeldFive meetings of the Board of Directors were held in the financial year 2002- 2003 on the followingdates:1.May17, 20022.September 6, 20023.November19, 20024.November 27, 20025.February 28, 2003(d)AttendanceAttendance of each Director at the Board of Director meetings held during the Financial Year 2002-2003 and the last Annual General Meeting (AGM).SI.No.1.2.3.4.5.6.7.8.9.10.11.12.13.14.15.16.17.18.Board ofDirectorsMr. Gopi Arora (Chairman)Mr. R KBhargavaMr. Dharmendra Deo#Mr. Dharmendra*Mr. Deo Datta#Mr. Sanjiv Nair*Dr. Om Prakash**Mr. R S Sandhu*Mr. Prabil Raj**Mr. P K Sethi**Mr.RaviParthasarathyMr. HariSankaran.Mr. KRamchandMr. Graham Jang*Mr. Stephen Temple/Alternate DirectorMr. Shahzaad Dalai/AlternateDirectorMr. Santosh SenapatiMr. Timothy James Woodhead/AlternateDirectorNo. of Meetingheld duringthe tenure551111114355512231541No. of BoardMeetingsattended45111-114354311231Nil21Attendance atthe last AGMheld on June 21 , 2002/--------------*Resignations during the course of the year.**Appointments during the course of the year.#Appointed and Resigned during the year.17_ _ 5 Noida~^^^TollBridgeCo. Ltd.(e)DisclosureofRemunerationtoDirectors/pecuniarytransactionsofNon-ExecutiveDirectorsandthe CompanyTheCompanyhasnotmadeanypaymentorreimbursementofexpensestoitsNon-ExecutiveDirectors,otherthansittingfees,travelandlodgingexpensesforattendingBoard/CommitteeMeetings, other than as given below:(a)The Companyhas provided Mr. R. K. Bhargava, Director, with a car and driver for attendingofficialmeetings being handled by him on behalfof the Company.(b)Details of expenses incurred on the Chairman's office are given separately.(c)The Company avails of legal services from M/s Amarchand & Mangaldas & Suresh A Shroff,&Co., M/sAmarchand&Mangaldas&HiralalShroffandCo., Suresh AShroff&Co. andAnandAmarchand&Mangaldaswhosepartner,Mr.ShardulShroff,isontheBoardofDirectorsof theCompany. Thereis,however,no written contractorarrangementbetweenthese firms and the Company. As and when services of these firms are needed, their standardprofessionalfeesarepaid.Nopaymentwasmadetothefirminthefinancialyear2001-2002. Mr. Shroffresigned from theBoard ofDirectors of theCompany on August16, 2002.3.AuditCommittee(a)Terms ofReference / CompositionThemembersoftheAuditCommitteeareMrGopiArora(Non-Executive/IndependentChairman), Mr. R K Bhargava, Mr. Prabil Raj and Mr. Santosh Senapati.The Audit CommitteehasbeenconstitutedinaccordancewiththeprovisionsoftheListingAgreement. All themembers of the Committee are independent and non-executive. Mr. Prabil Raj and Mr. SantoshSenapatihavefinancialandaccountingknowledge. TheCompanySecretaryactsastheSecretarytotheCommittee.TheAuditCommitteealsoinvitesseniorexecutives,asitconsiders appropriate, to be present at the meetings of the Committee.ThetermsofreferenceoftheAuditCommitteeincludeapprovingandimplementingtheaudit procedures and techniques, reviewing the financial reporting systems, internal controlsystemsandcontrolprocedures. ThisCommitteealso,overseesappointmentofauditors,reviews the Company's annual financial statements and internal Audit Reports. The Committeemet five times during the year under review. The Audit Committee met prior to the finalisationof theAccounts for the year ended March 31, 2003.(b)Meetings held"FivemeetingsoftheAuditCommitteewereheldinthefinancialyear2002-2003onthefollowing dates:1.May17, 20022.July 30, 20023.November19, 20024.November 27, 20025.January 20, 200318^J5Noida'^jj^'Toll Bridge Co. Ltd.(c)AttendanceS. No.1.2.3.4.5.6.DirectorMr. GopiK AroraMr. R K BhargavaMr. Dharmendra*Mr. R.S. Sandhu*Mr. Santosh SenapatiMr. PrabilRaj**No. of MeetingsHeld during tenure552253No. of MeetingsAttended452212*Resignations during the course of the year** Appointment during the course of the year4.Remuneration Committee-Termed HRDCommittee ofDirectors(a)Composition / Terms ofReference/RemunerationPolicyThe HRD Committee comprises of an Independent Chairman, Mr. Gopi Arora and two PromoterDirectors, Mr Ravi Parthasarathy and Mr Hari Sankaran who are also considered independentasdecidedby theBoardofDirectors. Currentlyallthemembersof thisCommitteearenon-executiveDirectors. TheCommitteeisconstitutedinaccordancewiththeprovisionsoftheListing Agreement.TheCommittee'sscopeofworkincludesformulationofanHRDpolicy,formulationofanappropriatecompensationpolicyrelatingtosalary,performancerelatedpay,increments,allowances, perquisites, loan facilities and other compensation for the employees of the Company.The Committee has laid out employee rules and regulations which are contained in an EmployeeHand Book.The Committee met twice during the financial year.(b)Meetings heldTwo Meetings of the HRD Committee were held in the financial year 2002- 2003 on the followingdates:1.April10, 20022.September 6, 2002(c)AttendanceS. No.1.2.3.DirectorMr. Gopi AroraMr.RaviParthasarathyMr. Hari SankaranNo. of Meetingsheld during tenure222No. of MeetingsAttended22119^. SNoida^^^?TollBridgeCo.Ltd.(d)Remuneration paid toNon-ExecutiveDirectorsThe Non- Executive Directors are only paid Sitting Fees@ Rs 20007- per meeting and in some cases,travel/lodging expenses to attend Board Meetings have also beenreimbursed to theDirectors.Details of sittings fees paid :S.No.1.2.3.4.5.6.7.8.9.10.11.12.13.14.15.16.17.DirectorMr. G K AroraMr. R KBhargavaMr. Dharmendra*Mr. DharmendraDeo*Dr. OmPrakash**Mr. R S Sandhu*Mr. Prabil Raj**Mr. P K Sethi**Mr. RaviParthasarathyMr. Hari SankaranMr. K RamchandMr. Timothy James WoodheadMr. Shahzaad DalaiMr. Graham Jang*Mr. Stephen Temple**Dr. Archana Hingorani***Mr. David WilliamsSitting Fees paid to Directors forattending Board and Committee Meetingsfor the period April 1, 2002toMarch 31, 2003 Rupees34, 00034, 0006,00020002,0006,00012,0006,00014,00010,0006, 0004,0006,0002,0002,0006,0002,000*Resignations during the years** Appointments during the year*** Appointed as AlternateDirector during the year(e)Chairman's OfficeDuring the year, the Company has provided it's non- executive Chairman with an office.The Companyincurred Rs. 7,11,289 towardsrevenue expenses for the period April1, 2003 and March 31, 2003.(f)Remuneration paid to Executive DirectorsThere are no Executive Directors on theBoard of the Company.20-|JSNoida^^^TollBridgeCo.Ltd.5. InvestorGrievanceCommittee(a)Composition / Terms of Reference / Status of ComplaintsThe Members of the Committee are Mr R K Bhargava (Non- Executive Director, Chairman of theCommittee) and Mr Gopi Arora. Both the Members of the Committee are Independent and Non-Executive. The Committee has been constituted in accordance with the provisions of the ListingAgreement. TheCommitteelooksintoredressal ofDebentureholders complaints andsuggestsmeasures to improve investor relations. Since theEquity Shares of the Company were listed, inDecember 2002, thescope of theinvestor grievance committeehas been extended to includeEquityShareholdersas well. Due toverylowlevelofInvestor Complaints, theCommittee metonly once during the year.In order to expedite theprocess of transfers, theBoard has delegated the authority to approvedebenture as well as share transfers and transmissions toMrPradeepPuri,President & CEO,Ms Monisha Macedo, Company Secretary and MrT K Banerjee, Financial Controller. The transfer/transmission formalities are processed as and when they are received and transfers areneverretained for more than a fortnight.Ms Monisha Macedo, Vice President & Company Secretary, has been designated the ComplianceOfficer for the StockExchanges as well asInvestor queries/complaints.During the year the Companyreceived 3089requests/complaints (mainly for address changes,bank mandate changes, Demat requests and revalidation requests) from April 1, 2002 to March31, 2003 of which allwereresolved within a reasonable time period. At the end of the FinancialYear 2002 - 2003, the Companyhad only one pending investor request for issue of a duplicatecertificate,whichhassincebeenresolved.Inadditiontoabove, theCompanyhasreceived 2investor complaints from SEBI, which have both been resolved. There are no pending debentureor share transfers.S.No1.2.3.4.5.6.7.8:9.10.11.12.13.14.SubjectNon-receipt ofRefundNon-receipt ofInterestNon-receipt of Debenture CertificateChange of AddressReceipt of15H FormsCorrection of Bank MandatesPostalReturn DocumentsRevalidation of Interest WarrantLoss of Securities andRequest ofIssue of DuplicateTransferRequestsIB for Duplicate I/WCorrection Name on CertificateDematRequestsRegistration ofPowerof AttorneyTotalGrievancesReceived00612601233902424616211300319904500918040013089Redressed0061260123390242461361130021990450091804001Pending------026-001-----2721.SNoida~^^^TollBridgeCo. Ltd.General Body Meetings(a)Annual General Meetings: Date, time and VenueYear Location Date and TimeAGM held for thefinancial year 2001- 2002Registered Officeof theCompany, at TollPlaza,DNDFlyway, opposite Sector15 A,Near Apeejay School, Noida 201 301June 21, 2002 at2:00 pmAGM held for thefinancial year 2000- 2001Registered Office of theCompany, at TollPlaza,DNDFlyway, opposite Sector15 A,Near Apeejay School, Noida 201 301April 26, 2001 at2:00 pmAGM held for thefinancial year1999- 2000Registered Officeof theCompany, at Sector15 A,Near Apeejay School, Noida 201 301,UttarPradeshApril 29, 2000 at10:30 amFour special resolutions were passed at the last three Annual General Meetings. No resolutionshave been passed by postal ballot.(b)Extraordinary General Meetings for the last three years: Date, time and VenueDate and TimeJuly 25, 2001 at 4:00 pmJuly 25, 2000 at1 1 :30 amLocationRegistered Office of theCompany, at Toll Plaza, DNDFlyway,opposite Sector15 A, Near Apeejay School, Noida 201 301At The Board Room, 64 Jorbagh, New Delhi -1 10 003Three Special Resolutions were passed at the last three Extraordinary General Meetings of theShareholders of the Company. No resolution was passed by postal ballot.7.Disclosures(a)Related party transactionsThere werenomateriallysignificantrelated partytransactions with thePromoters,Directors,themanagement, subsidiaries or relatives that have a potential conflict with the interest of theCompany at large. OtherRelated Party transactions are disclosed in the Annual Accounts.(b)Non CompliancesTheCompanyhascomplied withallthestatutoryrequirementsandhencehasnotpaid anypenalties nor have any strictures been imposed by the StockExchanges or SEBI or any otherstatutoryauthority,fornon-complianceonanymatterrelatedtoCapitalMarkets,sincetheCompany was incorporated.22?sNoidaTollBridgeCo. Ltd.Means of CommunicationTheCompany's shares werelisted inDecember 2002. Hence halfyearlyreports havenot beensentyet.Unaudited quarterly results are being published in 1 English and 1 Hindi daily, usually Jansatta (Hindi)and Financial Express (English).The Company's website address is www.dndflyway.org. Quarterlyresults and the shareholding patternof the Companyare available on the website.AManagementDiscussionandAnalysisreportis annexed to theDirectors' ReportGeneral Shareholderinformationa)Registered Office205, 2nd Floor, Ocean Plaza, Sector18, Noida-201 301UttarPradeshb)Location of Facility DNDFlyway, Noida 201 301,UttarPradeshc)CorporateOfficeAddress/CorrespondenceAddressC/oIL&FS,IndiaHabitatCentre,EastCourt, Zone VI, 4thFloor,Lodhi Road, New Delhi110 003d)Dates ofBookClosureBookClosuredatesweredeclaredforpaymentofsemi-annual interest on FCDs due on September 30 2002. BookClosure dates: September 2, 2002 to September 3, 2002.(bothdaysinclusive)FCDsweredueforacompulsoryconversionintoEquitySharesonNovember3,2002. ARecorddatewasdeclaredforthepurposeofaforementioned conversion and for payment of interest dueonFCDs for theperiodOctober1, 2002 toNovember3,2002.Record date: October 8, 2002e)Date, Time and Venue ofthe Annual General MeetingAGM6:June21,2002at 2:00 p.m.at TollPlaza,DNDFlyway,OppositeSector15A, Noida201301,UttarPradeshAGM5:April26, 2001at 2:00 p.m. atTollPlaza,DNDFlyway,OppositeSector15A, Noida201301,UttarPradeshAGM 4: April 29, 2000 at10:30 a.m. at Sector15A, NearApeejaySchool, Noida 201 301f)Financial Calendar April 01 to March 31g)Dividend PaymentDate NoDividend has been declared so farh)Listing on Stock Exchangesand Stock CodeTheDeepDiscountBondsandEquity Shares of theCompany are listed(Equity Shares were listed andtradingpermissionwasgranted on November 25, 2002TheUttar Pradesh Stock Exchange Assn. Ltd.Padam Towers,14/113 Civil Lines,KanpurTel: 0512-553115/293174Fax:0512-0512-293175NoStockCodehasbeenprovidedby theUttarPradeshStockExchange23S|._ " SNoida^^^TollBridgeCo. Ltd.on UPSE, and December 6,2002 on BSE andNSE)The Stock Exchange, Mumbai1stFloor, New Trading Ring, Rotunda Building,P J Towers, Dalai Street,Fort, Mumbai - 400 001Tel : 022- 272 1233 / 272 1234Fax:022-272 1552Stock Code : 532481 and 112453The National Stock Exchange of India Ltd.ExchangePlaza, 5th Floor,Plot No. C/1,GBlock,Bandra-Kurla Complex, Bandra (E),Mumbai -400051Tel: 022-659 8100Fax : 022 -659 8237 / 38Stock Code: EQ and N1(i)DepositoryISIN Nos. DeepDiscount Bonds-INE781B11014-Equity Shares eligible for dividend for the entireyear-INE781B01015Equity Shares, eligible for dividend pari passuforFinancial Year 2002- 2003 IN9781B01013(j)Listing Fees Paid for all the above stock exchanges for 2002-2003and 2003-2004(k)StockMarketDataNTBCL share price on BSE & BSE SensexMonthDecember 2002January 2003February 2003March 2003BSEHigh (Rs.)21.508.758.457.35Low (Rs.)6.455.606.005.55No. of Shares13726434094494931SensexHigh3,413.833,416.923,341.613,311.57Low3,186.623,199.183,218.373,039.83(I)InvestorCorrespondenceAddress: TheinvestorcanwritetotheCompanySecretaryMs. MonishaMacedo, at the following addressNoida Toll Bridge CompanyLimited,C/o.IL&FSLimited,India HabitatCentre,EastCourt, Zone VI,4thFloor,LodhiRoad, New Delhi -110 003Phone:91-11-24358004Fax:91-11-24359020E-mail: ntbcl@ntbcl.comWebsite : www.dndflyway.orgOrtotheRegistrarsattheaddressgivenbelow,mentioning:Unit: Noida Toll Bridge Company Limited.24NoidaTollBridgeCo. Ltd.(m)Addressof theCompany'sDepositoryaswellasPhysicalRegistrarKarvyConsultantsLimited,"KarvyHouse", 46,Avenue4,Street#1,BanjaraHills,Hyderabad 500 034Tel: 040-3320751/3320752 /3320753Fax: 040-3311968(n)Auditors of theCompanySB Billimoria & Co.MCTHouseOneOkhlaCentre,BlockAOkhlaInstitutionalAreaNewDelhi110025(o)BankersoftheCompanyCanaraBankHeadOfficeAddress:CanaraBankBuilding, 2nd and3rd Floor,Adi MarzbanPath, Ballard Estate,Mumbai 400 038BranchOfficeAddress:CanaraBankC 3,Sector1,Noida 201 301UttarPradesh(p)Share/Debenture TransferSystemTransfersofthelistedinstrumentsarehandledby theRegistrarand TransferAgents-KarvyConsultantsLimitedandprocessedwithinthestipulatedtime. Toexpeditesharetransfersinthephysicalsegment,theauthorityforapprovingtransfers/transmissionsoftheCompany'ssecuritieshasbeendelegatedtospecificseniormanagementpersonnel of theCompany.Dematerialisation of Shares andliquidityTheCompanysharesarecompulsorilytradablein electronicform. TheCompany'sDeepDiscountBondsaswellasthesharesareavailablefortradinginthedepositorysystemsofbothNationalSecurities Depository Ltd. (NSDL) and Central Depository Services (India) Ltd. (CDSL).The InternationalSecuritiesIdentification Number(ISIN)of theCompany, as allotted by NSDL and CDSL is:DeepDiscountBonds-INE781B11014Equity Shares eligible for dividend for the entire year 2002-2003 -INE781B01015Equity Shares, eligible for dividend pari passu for Financial Year 2002-2003IN9781B01013Shares/Debentures dematerialized uptoMarch 31, 2003:Type ofSecuritySharesDDEsNo of Shares/ Debentures7,77,38,30267,585% of Shares/Debentures63.51%67.59%No of Shareholders/Debenture holders1158135% of Shareholders/Debenture holders19.14%4.03%25^._ SNoida^^^?TollBridgeCo.Ltd.Distribution of ShareholdingTheCompany'sFullyConvertibleDebentureswerecompulsorily,convertedintoEguitySharesonNovember3,2003,therebyenhancingtheEquitybyRs. 20.78croresbetweenApril1,2002andMarch 31, 2003. The Distribution of holding of Equity Shares of the Company as on March 31, 2003 :S.No.1.2.3.4.5.6.7.8.CategoryFrom150011000120001300014000150001100001To50001000020000300004000050000100000AboveTotalsNo. of Holders357916176111129449236049% of Holders59.17%26.73%10.10%1 .85%1 .55%0.07%0.15%0.38%100.00%Amount9130450.0011374180.008046320.002683250.003272000.00180500.00636000.001188677370.001224000070.00% of Amount0.75%0.93%0.66%0.22%0.27%0.01%0.05%97.11 %100.00%10.Chairman of theBoardThe Company has provided it'snon-executive Chairman with an office whose expenses are borne bythe Company -details provided elsewhere in the Report.TheNon-Mandatoryrequirements being followed by the Company are maintenance of a Chairman'soffice and constitution of a Remuneration(HRD)Committee.All details on Directors are for the period starting from May 17,2002 (Date of the Notice of the previousAnnual General Meeting) to April 30, 2003 except the composition of theBoard of Directors.Date: April 30, 200326g-5Noida"^^^TollBridgeCo. Ltd.CERTIFICATETOTHE MEMBERS OFNOIDA TOLL BRIDGE COMPANY LIMITED1.WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyNoidaTollbridgeCompany Limited (the Company), for the year ended 31 March, 2003, as stipulated in Clause 49 ofthe Listing Agreement of the Company with stock exchanges.2.The compliance of conditions of Corporate Governance is the responsibility of the management. Ourexamination has been limited to a review of the procedures and implementations thereof adopted bythe Company for ensuring compliance with the conditions of the certificate of Corporate Governanceas stipulatedin the said Clause.It isneitheran auditnor an expression of opinion on the financialstatements of the Company.3.In our opinion and to the best of our information and according to the explanations given to us and therepresentations made by the Directors and the management, we certify that the Company has compliedwiththeconditionsofCorporateGovernanceasstipulatedinclause49oftheabovementionedListing Agreement.4.We further state that such compliance is neither an assurance as to the future viability of the Companynor of theefficiencyor effectiveness with which themanagement has conducted theaffairsof theCompany.For S. B. BILLIMORIA & CO.Chartered AccountantsNew DelhiJITENDRA AGARWAL31stJuly, 2003Partner27g." SNoida" ^^^TollBridgeCo.Ltd.AUDITORS' REPORTTOTHEMEMBERS OFNOIDA TOLLBRIDGE COMPANYLIMITED1.WehaveauditedtheattachedBalanceSheetofNoida TollBridgeCompanyLimitedasat31March, 2003, theProfit andLoss Accountof the Company for the year ended on that date and theCash Flow Statement for the year ended on that date, both annexed thereto. These financial statementsare theresponsibility of the Company's Management. Ourresponsibilityis to express an opinion onthese financial statements based on our audit.2.We conductedourauditin accordancewith auditing standardsgenerallyacceptedinIndia. TheseStandards require that we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free ofmaterialmisstatements. An auditincludes examining, on a testbasis,evidencesupporting theamountsanddisclosuresin the financialstatements. An auditalsoincludes assessing the accounting principles used and significant estimates made by the Management,as well as evaluating the overall financial statement presentation. We believe that our audit providesareasonable basis for our opinion.3Asrequiredby theManufacturingandOtherCompanies(Auditors'Report)Order,1988issuedbytheCentral Government ofIndia in terms of sub-section (4A)of section 227of theCompanies Act,1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of thesaid Order, to the extent applicable to the Company.4(a)Under a scheme of restructuringof debts, the lender banks and financial institutions have agreedto reduce the rate of interest retrospectivelyfrom1 April, 2002, and in considerationthereof,theCompany has issued to them Zero Coupon Bonds (ZCBs)for an aggregate amount of Rs. 54.50croresto be redeemed on 31 March, 2014 or such other agreed date.A disclosure to this effecthas been given in Note7 of Schedule14.(b)In ouropinion,the considerationfor the issueof ZCBs, beingthe presentvalueofthe interestreduced,shouldbeamortisedovertheperiodofthe ZCBsandacorrespondingequivalentamount should be brought into the books as Secured Loans. Accordingly,Rs.4.54 crores shouldbe debited to the Profitand Loss Accountwith a correspondingcreditto Secured Loans, beingthe annual amortisation,on the straightline basis, of the presentvalue of the interestreduced.(c)Hadthetreatmentstated in 4(b) above been given,the loss ofthe Companyfor the year,thedebit balance in the ProfitandLoss Account andSecuredLoanswould have been higherbyRs. 4.54 crores.5.Further to our comments in the Annexurereferred to above, we report that:(a)we have obtained all the information and explanations, which to the best of our knowledge andbeliefwere necessary for thepurposes of our audit;(b)in our opinion, properbooks of account asrequired by law have been kept by the Company soit far as appears from our examination of those books;(c)theBalance Sheet andProfit andLoss Account dealt with by this report are in agreement withthe books of account;28J5Noida~^=^^TollBridgeCo. Ltd.(d)in our opinion, theBalanceSheet, theProfit andLoss Account and the Cash FlowStatementdealt with by this report comply with the Accounting Standards referred to in sub-section (3C) ofsection 211 of the Companies Act,1956;(e)on the basis of written representationsreceived from the directors,as at 31 March, 2003, andtaken on record by the Board of Directors, we report that none of the directors is disqualified asat 31 March, 2003, from being appointed as a directorin terms of clause (g) of sub-section(1)of section 274 of the Companies Act,1956.6.Subjecttoourcommentsreferredtoin paragraph4above,inouropinionandtothebestofourinformationandaccording to theexplanations given tous,thesaidaccountsgivetheinformationrequiredby theCompaniesAct, 1956,inthemannersorequiredandgivea trueandfairviewinconformity with the accounting principles generally accepted in India:i.in the case of theBalance Sheet, of the state of affairs of the Company as at 31 March, 2003;ii.in the case of the Profit and Loss Account, of the loss of the Company for the year ended on thatdate; andiii.in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended onthat date.For S. B. BILLIMORIA& CO.Chartered AccountantsNewDelhiJITENDRAAGARWAL12 June 2003Partner29=gJ5 Noida^^^ToilBridgeCo.Ltd.ANNEXURE TOTHE AUDITORS' REPORT(Referred to in paragraph 3 of ourreport of even date)1.TheCompanyhasgenerallymaintainedproperrecordsshowingfullparticularsincludingquantitativedetailsfor fixedassets. Weareinformed thatthefixedassetswerephysicallyverifiedby theManagementduringthe yearandnomaterialdiscrepancieswerenotedonsuch verification.In ouropinion, thefrequencyofsuch verificationisreasonable.2.Noneof thefixed assetshasbeenrevalued during theyear.3.Stocks comprise 'Unembossed Plastic Cards' and 'On Board Units' which have been physicallyverified during the year by the Management. No discrepancies were noted on such verification.The Company's operations donot comprise stocks ofraw materials andspareparts. In ouropinion, the frequencyof verificationisreasonable and adequateinrelation to the size oftheCompanyand thenature ofitsbusiness.4.Inouropinionandonthebasisofourexaminationofthestockandotherrelatedrecords,thevaluationofstocksisfairandproperandinaccordancewiththenormallyacceptedaccounting principles andis on thesamebasis asin the previous year.5.The Company has not taken or granted any loans, secured or unsecured, from/to companies,firms or otherpartieslistedin theregistermaintained underSection 301of the CompaniesAct,1956,or fromcompaniesunderthesamemanagementwithin themeaning ofSection370 (1B) of the Companies Act,1956 where therate of interest and other terms and conditionsareprima facie prejudicial totheinterestof theCompany.6.Inrespectofloans andadvancesin thenature ofloans,recoveryof principal amounts andinterest, wherestipulated,hasbeenregular.7.Inouropinionandaccordingtotheinformationandexplanationsgiventous,thereareadequateinternal control procedures commensurate with thesize of theCompany andthenature of its business for the purchase of, plant & machinery and other assets. The Company'soperationsdonotrequire thepurchase ofanyraw materialsor saleof goods.8.There are no transactions of purchase of goods andmaterials and sale of services made inpursuanceofcontractsorarrangementsenteredin theregistermaintainedunderSection301of the CompaniesAct,1956 andaggregatingduring theyear toRs. 50,000 ormoreinrespectof eachparty. TheCompany's operations donotgiverise to anysale of goods andmaterials.9.The Companyhasnot accepted any deposits from thepublic.10.TheCompanyhasaninternalauditsystemcommensuratewithitssizeandnatureofitsbusiness.11.The Company hasbeenregularin depositing provident fund dues with the designated trustmaintained by the employees. According to the information and explanations provided to us,the provisions of the Employees' State Insurance Act,1948 are not applicable to the Companyfor the yearended 31March,2003.12.According to the information and explanations given to us, there were no undisputed amountspayableinrespectofincometax,wealthtax,salestax,customsdutyandexcisedutyoutstandingasat31March,2003 for a periodofmorethansixmonthsfrom thedate theybecame payable.30gJ5Noida^^TollBridgeCo. Ltd.13.According to theinformation and explanations given to us, and therecords of the Companyexaminedbyus,nopersonalexpensesofemployeesordirectorshavebeenchargedtorevenue account, other than those payable under contractual obligations or in accordance withgenerally accepted business practice.14.The Company is not a sick industrial company within the meaning of clause (o) sub clause (1) ofsection 3 of the Sick Industrial Companies (Special Provisions) Act, 1985.For S. B. BILLIMORIA& CO.Chartered AccountantsNew DelhiJITENDRAAGARWAL12 June 2003Partner31.SNoida^^?TollBridgeCo. Ltd.NOIDA TOLLBRIDGECOMPANYLIMITEDBALANCE SHEET AS AT 31MARCH,2003ScheduleReferenceSOURCES OF FUNDSSHAREHOLDERS' FUNDSEquityShareCapitalLOANFUNDSSecured LoansAPPLICATIONOF FUNDSFIXEDASSETSGrossBlock33,802,485,806Less:Depreciation133,589,378NetBlockCAPITAL WORKINPROGRESSINVESTMENTS4CURRENT ASSETS,LOANS& ADVANCESInventories51,995,528SundryDebtors63,220,062Cash and Bank balances72,016,715Loans& Advances831,446,35338,678,658LESS: CURRENTLIABILITIES&PROVISIONS9136,036,730NET CURRENT ASSETSMISCELLANEOUSEXPENDITURE10(To the extent not written off or adjusted)PROFIT ANDLOSS ACCOUNT (Debit balance)ForNotes forming part of the accounts,refer to Schedule14The schedules referred to above form anintegeralpart of the accountsAsper ourreport ofeven date attached.As At31.03.2003Rupees1,224,000,0703,289,240,3814,513,240,4513,668,896,4287,303,60899,513,665(97,358,072)43,308,780791,576,0424,513,240,451As At31.03.2002Rupees1,016,200,0703,168,447,5594,184,647,6293,798,523,15670,567,9443,727,955,2125,143,2366,620,6763,344,371894,06118,017,81137,775,10960,031,352179,177,284(119,145,932)58,479,323505,595,1144,184,647,629For S. B. BILLIMORIA & CO.CharteredAccountantsForand on behalfofNOIDA TOLLBRIDGE COMPANY LIMITEDJITENDRAAGARWALPartner Director DirectorPradeepPurlPresident& CEONew Delhi12-Jun-2003T.K. BanerjeeFinancialControllerNew Delhi12-Jun-2003Monisha MacedoCompanySecretary32JSNoida^^^?TollBridgeCo.Ltd.NOIDA TOLLBRIDGECOMPANYLIMITEDPROFIT&LOSS ACCOUNTFOR THE YEARENDED 31MARCH,2003INCOMETollRevenueOtherIncomeEXPENDITUREOperatingandAdministrationExpensesFinanceChargesDepreciationMiscellaneousExpenditureWrittenOffPROFIT / (LOSS) FOR THE PERIODBalance BroughtForward for thePrevious YearLoss Carried to Balance SheetBasicLossperEquityShare(in Rs.)Diluted Loss per EquityShare (in Rs.)ScheduleYearendedReference31.03.2003Rupees164,467,3411122,878,424187,345,7651282,289,20413312,528,42263,338,52415,170,543473,326,693(285,980,928)(505,595,114)(791,576,042)2.592.59Yearended31.03.2002Rupees97,151,76020,927,841118,079,60164,846,882425,996,34568,308,41215,170,543574,322,182(456,242,581)(49,352,533)(505,595,114)4.493.49For Notes forming part of the accounts,refer to Schedule14The schedulesreferred to above form an integeral part of the accountsAsperourreportofevendateattached.ForS.B. BILLIMORIA& CO.CharteredAccountantsFor andonbehalfofNOIDA TOLLBRIDGE COMPANYLIMITEDJITENDRAAGARWALPartner Director DirectorPradeepPurlPresident&CEOT. K.BanerjeeFinancialControllerMonishaMacedoCompanySecretaryNewDelhi12-Jun-2003NewDelhi12-Jun-2003333NoidaTollBridgeCo. Ltd.NOIDA TOLLBRIDGECOMPANYLIMITEDSCHEDULESFORMINGPARTOF THEACCOUNTSSCHEDULE1SHARECAPITALAuthorised125,000,000(PreviousYear125,000,000)EquitySharesofRs.10eachIssued, SubscribedandPaidup122,400,007(PreviousYear101,620,007)EquitySharesofRs.10 eachFullyPaidupAsAt31.03.2003RupeesAsAt31.03.2002Rupees1,250,000,0001,250,000,0001,224,000,0701,016,200,070SCHEDULE2LOANFUNDSSecuredLoansa.DebenturesandBonds207,800,14%FullyConvertibleDebenturesofRs. 1,000each. (See Note5aofSchedule14)100,000,DeepDiscountBondsoffacevalueofRs. 45,000each.(See Note5b and10ofSchedule14)LessiUnexpiredDiscount5,138,500SeriesAZeroCouponBondofRs.100each. (See Note5 cofSchedule14)b.TermLoans(See Note5 dofSchedule14)4,500,000,0003,700,458,080799,541,920513,850,000207,800,0004,500,000,0003,802,791,345697,208,655BanksFinancialInstitutionsOthersC.FundedInterest1,418,415,891213,850,000300,000,0001,932,265,89143,582,5703,289,240,3811,330,000,000333,438,904600,000,0002,263,438,9043,168,447,559Notes:1.14%FullyConvertibleDebenturesofRs.1,000eachhavebeenconvertedintoequitysharesofRs.10eachatparonNovember3,2002.2.DeepDiscountBondsissuedatRs.5000eachwouldberedeemedatRs.45,000eachattheendofthe16thyearfromthedateofallotmenti.eNovember3,1999.3.SeriesAZeroCouponBondsofRs100eachissuedtoFinancialInstitutionsagainstconversionof50%ofTermLoanaspertermsofRestructuringapprovedbytheCorporateDebtRestructuringEmpoweredGroupoftheBanksandFinancialInstitutionsrepayableintwoequalinstalmentsbyMarch31,2005andMarch31,2006.34NOIDA TOLLBRIDGECOMPANYLIMITEDSCHEDULESFORMINGPARTOF THEACCOUNTSSCHEDULE3FIXEDASSETS(Seenote2band15ofSchedule14)(AmountinRupees)PARTICULARSDelhi Noida Link Bridge(Seenote2bofSchedule14)Plant& MachineryDataProcessingEquipmentOfficeEquipmentVehiclesFurniture & FixturesPreviousY earGROSSBLOCKAs At1,04.20023,790,490,6191,409,8412,362,2792,853,2291,407,1883,798,523,1563,740,748,824Additions3,742,733281,881420,811428,388192,9505,066,76358,031,315Deletions /Adjustment33,636199,999636,004234,4741,104,113256,983As At31.03.20033,794,233,3521,658,0862,583,0912,645,6131 ,365,6643,802,485,8063,798,523,156DEPRECIATIONAs At1.04.200268,500,550591,258359,328789,924326,88470,567,9442,362,611For theYear61,947,435341,566317,418543,313188,79263,338,52468,347,346Deletions /Adjustment17,21137,716205,33056,833317,090142,013As At31.03.2003130,447,985915,613639,0301,127,907458,843133,589,37870,567,944NETBLOCKAs At31.03.20033,663,785,367742,4731 ,944,0611,517,706906,8213,668,896,4283,727,955,2)2As At31.03.20023,721,990,069818,5832,002,9512,063,3051,080,3043,727,955,2125,643,696COcnooEJ5Noida^^^?TollBridgeCo.Ltd.NOIDA TOLLBRIDGECOMPANYLIMITEDSCHEDULESFORMINGPARTOF THEACCOUNTSSCHEDULE4INVESTMENTS (AtCost)Current,Quoted, otherthan Trade InvestmentsAsAt31.03.2003RupeesAsAt31.03.2002RupeesPrudentialICICILiquidPlan-1,575,204.84(previousyear4,84,611.81)unitsoffacevalueofRs.10each23,352,097 6,620,676IL&FSLiquidAccountGrowthPlan-4,223,251.38(previousyearNIL) unitsoffacevalueofRs.10 each47,257,447TempletonIndia TreasuryManagement AccountGrowthPlan19,262.42( previous YearNIL) unitsoffacevalueofRs.1000eachNote:1.TheNetAssetValueofquotedinvestmentsasattheyearend-Rs. 99,835,837(Previous YearRs. 6,756,312)28,904,12199,513,665 6,620,676SCHEDULE5INVENTORIES(AtCost)ElectronicCards and 'OnBoardUnits'SCHEDULE6SUNDRYDEBTORS(Unsecured,ConsideredGood)DebtsOutstandingforlessthansixmonths1,995,5283,220,0623,344,371894,061365 JSNoida^^^TollBridgeCo. Ltd.NOIDA TOLLBRIDGECOMPANYLIMITEDSCHEDULESFORMINGPARTOF THEACCOUNTSSCHEDULE8LOANSANDADVANCES(Unsecured,Consideredgood)37AsAt31.03.2003RupeesAsAt31.03.2002RupeesSCHEDULE7CASHANDBANKBALANCESCashinHandBalanceswith theScheduledBanksInCurrentAccounts40,3771,976,33812,35218,005,4592,016,715 18,017,811a.Advances /IncomeRecoverableinCashorinKindorfor ValuetobeReceivedb.AdvancePaymentagainstTaxes29,665,710186,93329,415,2902,949,367c.DepositsAmountsduefromDirectors1,593,71031,446,353NIL5,410,45237,775,109NILMaximumamountduefromDirectorsduringtheyear NIL 250,443gJ5Noida^^^TollBridgeCo. Ltd.NOIDA TOLLBRIDGECOMPANYLIMITEDSCHEDULESFORMINGPARTOF THEACCOUNTSAsAt31.03.2003RupeesAsAt31.03.2002RupeesSCHEDULE9CURRENTLIABILITIESANDPROVISIONSa.CurrentLiabilitiesSundryCreditorsAdvancePaymentsandUnexpiredDiscountsOtherLiabilitiesInterestAccuredbutnotDueonSecuredLoansInvestorEducationandProtectionFundUnpaidapplicationmoneyfor allotmentofFullyConvertibileDebenturesandDeepDiscountBondb.ProvisionsProvisionforTaxesProvisionforRetirmentBenefits(SeeNote2fofSchedule14)124,863,3418,495,0941,276,051305,39597,8556,132992,862135,037,736998,994163,011,6084,864,1055,759,3131,719,268140,043136,036,730175,494,3372,794,190888,757179,177,28438g.5 Noida^^^TollBridgeCo.Ltd.NOIDA TOLLBRIDGECOMPANYLIMITEDSCHEDULESFORMINGPARTOF THEACCOUNTSAsAtAs At31.03.200331.03.2002RupeesRupeesSCHEDULE10MISCELLANEOUSEXPENDITURE(Totheextentnotwrittenofforadjusted)a.PreliminaryExpensesBalancebroughtforward2,921,2833,679,114Amountcharged toProfit&Lossaccount757,831757,8312,163,4522,921,283b.Expenses Incurred on Public issue ofFully ConvertibleDebentures andDeepDiscountBondsBalancebroughtforward31,644,39439,853,494Amountcharged toProfit&Loss account8,209,1008,209,10023,435,29431,644,394c.DeferredRevenueExpenses (SeeNote14 of Schedule14)Balancebroughtforward23,913,64630,117,258TransferredfrompreoperativeexpensesAmountchargedtoProfit&Lossaccount6,203,6126,203,61217,710,03423,913,64643,308,78058,479,32339J5Noida"^^^TollBridgeCo. Ltd.NOIDA TOLLBRIDGECOMPANY LIMITEDSCHEDULESFORMINGPARTOF THEACCOUNTSYearended31.03.2003RupeesYearended31.03.2002RupeesSCHEDULE11OTHERINCOMEInterestonSinkingFundInvestmentsAdvertismentRevenuefromDNDFlywayProfitonSaleofUnitsofMutualFundServiceFeeMiscellaneousandOtherIncome-13,625,2875,110,1921,606,3252,536,6208,638,3645,971,7845,365,431591,186361,07622,878,424 20,927,84140._" SNoida^^^?TollBridgeCo.Ltd.NOIDA TOLLBRIDGECOMPANYSCHEDULESFORMINGPARTOF THESCHEDULE12OPERATINGANDADMINISTRATIONEXPENSESSalaries,WagesandBonusContributiontoProvidentandOtherFundsStaffWelfareExpensesFeesPaid toO& M ContractorConsumptionof CardsandOBU'sLegal&ProfessionalCharges(Schedule14)AgencyFeesInsuranceExpensesTravellingandConveyanceAdvertismentandBusinessPromotionExpensesRentRepair&Maintenance-Building-OthersTelephone,Fax andPostageElectricityExpensesRatesandTaxesDirector'sSittingFeesLossonSaleofFixedAssetsDevelopmentRightExpensesOtherExpensesLess: Amounts Capitalised during the yearSCHEDULE13FINANCECHARGESInterestonFullyConvertibleDebenturesInterestonDeepDiscountBondsIntereston Term LoanOtherFinanceChargesLess: AmountsCapitalised during the yearLIMITED:ACCOUNTSYearended31.03.2003Rupees13,336,3011,178,826717,47818,110,2682,573,18915,852,1843,473,2636,395,4432,554,3615,717,4092,726,791824,0411,572,285841,137678,683352,422156,000397,6033,332,9771,498,54382,289,20482,289,20417,217,007102,333,265180,045,12612,933,024312,528,422312,528,422Yearended31.03.2002Rupees11,570,8831,202,166721,47010,855,0961 ,993,9669,716,8783,553,7597,410,7845,094,2153,795,4133,675,1591,1,06,9631,198,2561,193,068586,403215,297140,00013,3631,690,83965,733,978(887,096)64,846,88229,091,99789,235,655301 ,538,54411,418,021431,284,217(5,287,872)425,996,34541_ _ 5Noida^^^TollBridgeCo. Ltd.NOIDA TOLLBRIDGE COMPANYLIMITEDSCHEDULES FORMINGPART OF THE ACCOUNTSSCHEDULE 14 : NOTES FORMINGPART OF THE ACCOUNTS1.BackgroundNoida Toll Bridge Company Limited (the Company) has been set up to develop, establish, construct,operate and maintain a projectrelating to the construction of the Delhi Noida Link Bridge under the"Build-Own-Operate-Transfer" (BOOT) basis. The Delhi Noida Link Bridge comprises the Delhi NoidaLinkBridge,adjoiningroadsandotherrelatedfacilitiesandtheAshramflyoverwhichhasbeenconstructed at the landfall of the Delhi Noida Link Bridge.A 'Concession Agreement' entered into between the Company, Infrastructure Leasing and FinancialServices Limited and the New Okhla Industrial Development Authority, Government of Uttar Pradesh,conferred theright to theCompany toimplement theprojectandrecovertheproject cost(throughthelevyoffees/ tollrevenue)witha designatedrateofreturnoverthe30yearconcessionperiodcommencingDecember30,1998thedate of CertificateofCommencement,or till such time thedesignatedreturnisrecovered, whicheverisearlier. TheConcession Agreementfurtherprovidesthat in the event theproject cost with the designatedreturn is notrecovered at the end of 30 years,the concessionperiod shall beextended by 2 yearsat a timeuntil theproject cost and thereturnthereonisrecovered.Therateofreturniscomputedwithreferencetotheprojectcosts,costofmajorrepairs and the shortfall in therecovery of the assured returnsin the previous year(s).TheindependentauditorsoftheProjectappointedintermsoftheConcessionAgreementhaveascertained the cost of the Delhi Noida Link Bridge incurred tillMarch 31, 2001 on provisional basispending certain payments, which would be effected on issue of theDefectLiabilityCertificate. Theindependent auditors have also determined the accrued return as designated under the ConcessionAgreement and due to the company till March 31,2003. As per a draft reportgiven by the independentauditors which is based on the unaudited financial statements as at 31 March, 2003, the total amounttoberecoveredup to31March, 2003undertheConcession Agreement including20%return onproject cost aggregates to Rs. 5924.03 million.2.Significant Accounting Policiesa.Basis of AccountingThe financial statements have been prepared under the historical cost convention, on the accrualbasisofaccounting.ThefinancialstatementshavebeenpreparedtocomplyinallmaterialrespectswiththemandatoryAccountingStandardsissuedbyTheInstituteofCharteredAccountants of India and the relevant provisions of the Companies Act, 1956.The Accountingpolicieshave been consistently applied by the Company.b.Fixed AssetsFixed assets include theDelhiNoidaLinkBridge which is stated at original costof acquisitionincluding incidental expenses relating to the acquisition and installation of the assets.Expenses incurred on the Delhi Noida Link Bridge include direct and indirect expenses incurredfor procurement/construction of land and buildings, roads, bridges, culverts, plant and machineryincluding toll plazas and other equipment and related expenses.(See also Note 4 below)c.DepreciationDepreciation on fixed assets (other than the Delhi Noida Link Bridge) is provided on the writtendown value method using rates prescribed under Schedule XIV to the Companies Act, 1956.DepreciationontheDelhiNoidaLinkBridgeotherthanchainlinkfencingis provided on theStraightLine Method using rates prescribed under schedule XIV to the Companies Act, 1956.The useful life of theDelhi Noida LinkBridge is estimated to be in excess of specified period42_ SNoida^^^TollBridgeCo. Ltd.under section 205(5)(a)of theCompanies Act, 1956.Areviewof the estimated useful life/theconcession period as perthe Concession Agreement of theDelhiNoida LinkBridge would beundertakenbythemanagementatperiodicintervalstoassesstheadditionalchargefordepreciation,if any.TheusefullifeofchainlinkfencingwhichisincludedinDelhiNoidaLinkBridgehasbeenestimated tobe fifteen years. Depreciation on the samehasbeen provided for based on suchuseful life.d.RevenueRecognitionTheCompany'srevenue comprises tollrevenues collected at theDelhi NoidaLinkBridge andadvertisementrevenue, which are recognised, on accrual basis.e.InventoriesInventories havebeen valued at cost. Costis recognised onFirstIn FirstOutbasis.f.RetirementBenefitsThe provision for gratuity as at the year end has been made based on an actuarial valuation andis funded by theLifeInsurance Corporation ofIndia.Themoney value of unutilised leave due to the employees in terms of the service conditions isincluded underretirement benefits on thebasis of leave due to an employee at the year-end.g.InvestmentsInvestmentsare valued at cost.h.Foreign Currency TransactionsTransactionsin foreign currenciesarerecorded at theexchangerateprevailing on the date ofthe transactions. Monetary items denominated in foreign currency and outstanding at the balancesheet date are translated at the exchange rate prevailing on that date. In case of forward contractsfor foreign exchange, the difference between the forward rate and the exchange rate at the dateof the transaction are recognised over the life of the contract.In case of liabilities incurred for acquisition of fixed assets, the loss or gain on conversion, at therates prevailing at theyearendis adjusted to the carrying amount ofrelated fixed assets.i.MiscellaneousExpenditureMiscellaneousexpenditureisamortisedoveraperiodoffiveyearsfromthedateofcommencement of commercial operations.jBorrowing CostsBorrowingcostsrelated totheacquisition /constructionofthequalifyingfixedassetsfor thep.eriod upto thecompletion of their acquisition / construction are included in thebook value ofthe assets. All other borrowing costs are recognised as an expense and are charged to revenuein the yearin which these are incurred.k.Deferred TaxationThe Companyhas carried out its tax computationin accordance with AS 22 -Accounting forTaxes onIncome issued by theinstitute of Chartered Accountants ofIndia. In accordance withthe same no deferred tax asset / liability was required at the year end.I.Earnings Per ShareTheearningsconsideredinascertaining theCompany'sEPScomprisesof thenetlossaftertax. Thenumberofsharesusedin computingbasicEPSistheweightedaveragenumberofshares outstanding during the year.43_ _ SNoida~^^TollBridgeCo.Ltd.3.Debt Restructuring:The Company had approached the Banks and Financial Institutions providing financial assistanceto the Company for restructuring of debt andinterest liabilities. Pursuant to the foregoing therestructuring has been approved by the Corporate Debt Restructuring Empowered Group (CDR)oftheBanksand Financial Institutions at it'smeeting held on October29,2002 giving effect totheproposals with effect from April1, 2002. TheCompanyhasissued ZeroCouponBonds totheLenders as a part of thepackageof DebtRestructuring. Interest with regard to TermLoanhasbeenpaid andprovided for asper theratesapprovedby theCDR for cash paymentandfundedinterestrespectively.DocumentationwithalltheBanksandFinancialInstitutionshasbeen completed/ are in the process of completion. Necessary steps have been taken to createpari passu first charge on all the Company's assets in favour of the Zero Coupon Bondholders.Pursuant to the Debt Restructuring package the Company has issuedZeroCouponBondsoffacevalueofRs100eachaggregatingtoRs51.385crorestoFinancial Institutions towards conversion of Term Loan.Zero Coupon Bonds of face value of Rs 100 each aggregating to Rs 54.50 crores to Banksand Financial Institutions repayableno later than March 31, 2014 towards the Net PresentValue ofthe sacrifice made by them by way of reduction of interest rates from the contractedterms.4.Capitalisation of the Delhi Noida Link BridgePendingreceiptof the final bill from theEPC contractor, for expenses incurredon theproject,Company had in the previous year, based on an estimateof balance work done as certified bytheProjectEngineer, capitalised the sameat an estimated cost ofRs 37.12 million.Both partieshavereferred someof the disputes to arbitration. Any changein the costof theproject on receipt of thecontractor'sfinal bill, and on settlement of arbitration proceedings willbe revised in subsequent year(s).The extent of such adjustments, if any cannot be determinedat this stage. (See alsoNote 6d).5.Secured Loansa.FullyConvertibleDebentures(FCDs)whichweresecuredbysecondchargeinfavourof thetrustees on all theprojectassets of the Companyhave been converted into fully paidEquityShares on November3, 2002.Consequent to conversion, the chargehas been vacated.b.DeepDiscountBonds are securedby a paripassufirst chargein favour of the trusteesalongwith the otherseniorlenders of the Companyon all theprojectassets which include the DelhiNoida Link Bridge and all tangible and intangible assets including but not limited to rights overtheprojectsite,projectdocuments,financialassetssuchasreceivables,cash,investments,insurance proceeds etc. (See note 10)c.TheCompanyhasissuedSeriesAZeroCouponBondsofRs100eachforanaggregateamountofRs513,850,000aspertermsofRestructuringapprovedbytheCorporateDebtRestructuring EmpoweredGroupof theBanks andFinancialInstitutions. TheseZeroCouponBonds are secured by pari passu first charge on the Company's assets both present and future(pending creationof charge)d.Term loans from banks, financial institutions and others are secured by a charge on:Immovablepropertiesof the Company situated in the states of Delhi and UttarPradesh.The whole of the movable properties of the Company,both present and future.All the Company's book debts, receivables, revenues of whatsoever nature and wheresoeverarising, both present and future.Alltherights,titles,interest,benefits,claimsanddemandswhatsoeveroftheCompanyunderanyagreementsenteredintobytheCompanyinrelationtotheprojectincluding44TollBridgeCo. Ltd.6.7.consents,agreementsoranyotherdocuments enteredintoor to be enteredintoby theCompany pertaining to theproject, as amended, varied or supplemented from time to time.All the rights, titles, interest of the Company in and relation to the Trust & Retention accountproceeds, being the bank account established by the Company for crediting all the revenuesfrom the project including butnot limited to toll collections from the project.All therights, titles,interestbenefits, claims and demands whatsoever of the CompanyintheGovernmentpermits,authorizations,approvals,noobjections,licensespertainingtotheprojectandtoanyclaimsorproceedsarisinginrelationtoorundertheinsurancepolicies taken out by the Company pertaining to the assets of the projects of the Company.ContingentLiabilitiesContingent liabilities in respect of:Asat31.03. 2003Rs./MillionAs at31.03.2002Rs./Milliona.Estimated amount of contracts remainingto be executed on capital account and notprovided for (Net of advances paid againstsuch contractsRs. Nil(Previous yearRs. 2231.20 million)b.Income Tax mattersin disputeNil 7.86Nil 48.50c.Basedonanenvironmentandsocialassessment,compensationforrehabilitationandresettlementofproject-affectedpersonshasbeenestimatedandconsideredaspartoftheproject cost and provided for based on estimates made by the Company.d.ClaimsmadebythecontractoraggregatingtoRs. 251.26million(PreviousyearRs 270.88million) have not been accepted by the Company and both parties have taken necessary stepstorefer thematter to arbitration in accordance with the contractual arrangements.The Company has issued 5,450,000 Series B Zero Coupon Bonds of Rs 100 each aggregatingtoRs 545,000,000 toBanks andFinancial Institutions against the sacrifice made by them bywayofreductionofinterestratesfromthecontractedtermspursuanttotheapprovaloftheCompanies debt restructuring package by the Corporate Debt Restructuring Empowered GroupoftheBanksandFinancialInstitutions. TheCompanyhasinvokedthedevelopmentrightsavailable under the Concession Agreement as determined by the Independent Auditor.Basedon valuation donebyIndependentProfessionalFirm, theresourcesrealisableon disposalofland development rights on a conservative estimate, are estimated to be in excess of the amountrequiredby theCompanytoredeem theseZCBsaswellastorepaytheprincipalamountofloanrescheduledasperthetermsofrestructuringofdebts.TheredemptionoftheseZeroCouponbonds willbemadeby March31, 2014 orsuchotherdate asmaybeagreed by theBanksandFinancialInstitutions. TheseZeroCouponBondsareproposed tobesecuredbyparipassufirstchargeontheCompany'sassetsbothpresentandfuture.TheCompanyistaking steps for creation of security within thepermissible time.45^._ *5 Noida^j?Toll Bridge Co. Ltd.8.Expenditure in Foreign Currency (On cash basis)a.Travelb.Payments toContractorsManagerial RemunerationRemuneration paid / payable to Managers.a.Salariesb.ContributiontoProvident and other fundsc.Monetary value of perquisitesYear ended31.03.2003Rupees21,5602,609,250Year ended31.03.2002Rupees1,594,5142,789,234Year ended31.03.2003Rupees1,071,28449,548420,6961,541,528Year ended31.03.2002Rupees3,170,228125,137411,1313,706,496Note: Contribution to Group gratuity scheme has not been considered as person wise details are not available.10.Auditors' RemunerationLegal andProfessional chargesincludes Auditors' remuneration as follows:a.As Auditorsb.Limited review ofhalf yearly accountsc.For taxationmattersd.For OtherServicese.Reimbursement ofoutof pocket expensesf.Service Tax11.DeepDiscountBondsThe Company has issued Deep Discount bonds for Rs. 5,000 each at a face value of Rs. 45,000 to beredeemed at the expiry of 16 years from the date of allotment. The interest on these bonds compounded@14.67% p.a. resultsin theredemption valueofRs. 45,000 over theperiod of thebond. Necessaryprovision has been made in theProfit andLoss Account towards interest accrued during the Year.YearEnded31.03.2003Rupees150,00050,00050,00078,00026,73513,900368,635Year Ended31.03.2002Rupees150,00050,00050,00082,0008,56016,600357,1604612._ _ 5 Noida^j^TollBridgeCo. Ltd.Investments in Mutual FundsDuring the year, the Company acquired and sold units of Mutual Funds on various dates as under:PurchasesUnits24,476(55,374)15,923(1,667,593)3,7128,776(2,739,986)2,478,336(982,695)(648,508)362,80613,062,728(7,243,291)3,109.6385,357,101(329,740)345,283AmountRupees36,404,121(74,700,000)17,228,848(30,000,000)53854,988(37,100,000)27,146,249(10,000,000)(10,000,000)4,000,000140,823,710(74,500,000)41,600,00057,343,404(3,300,000)3,500,000SalesUnits5,214(55,374)15,923(1,667,593)2,153,571(2,255,374)2,478,336(982,695)(648,508)362,8068,839,477(7,243,291)3,109,6385,357,101(329,740)345,283AmountRupees7,728,848(75,125,355)17,404121(31,500,834)31,202,562(30,759,325)27,734,312(10,202,632)(10,466,926)4,011,61995,943,404(75,037,243)43,513,15958,323,710(3,339,281)3,549,272TempletonIndia-TreasuryManagement AccountGrowthTempletonIndia-ShortKothariPioneer-IncomePrudentialICICILiquidPlan*PrudentialICICIShort TermPlan - CumulativePrudential ICICIIncomePlanBirla BondPlusPlanB-GrowthIL & FS Liquid Account-GrowthIL & FS Bond FundIL &FSBondFund-ShortTerm- GrowthSBIMutualFund-MagnumInsta CashFund-ShortTermPlan.*Includes balance brought forward fromprevious year -484,612 units valued at Rs. 6,620,676Of the above, 5,817,718 units remained unsold as on 31 March, 2003 and have been shown under Investment(SeeSchedule 4)Profit from sale of the above units of Rs. 5,110,192 (previous year Rs. 5,365,431) is included in other income.Figures in bracketare the previous year figures.13.Outstanding balance with small-scale industrial unitThereareno amountsoutstandingaspayable toany small-scaleindustrialunitsas on 31March2003.14.Miscellaneous ExpenditureDeferredrevenueexpensesincludesexpensesnotrelating to theconstructionof thebridgeduringthe preoperative period and include marketing expenses, expenses on secretarial matters, etc.15.Effect of change in Foreign Exchange RatesNetforeignexchangeloss ofRs. 668,795(PreviousyearRs 1,918,610)hasbeen adjusted againstcapitalisation ofFixed Assets during the year.47._ SNoida" ^^^TollBridgeCo.Ltd.16.Related Party Disclosuresa.List of related parties/'.Company holding substantial interestinvoting power oftheCompanyInfrastructureLeasing & Financial Services Ltd.Transactions/ Outstanding balancesServices& OtherIncomeExpenditure on otherserviceAgencyFeesInterest on Term LoanCurrent AccountBalanceEquity as at the year endTerm Loan as at the year endZero Coupon Bonds (Series A)Zero Coupon Bonds (Series B)FundedInterestYear ended31.03.2003Rupees124,6834,558,48837,500,00030,301360,000,020300,000,000300,000,000171,000,00025,500,000Year ended31.03.2002Rupees803,930747,9114,171,25296,000,000360,000,020600,000,000Associateswith whom transactionshave taken place duringthe year or have balances atthe year endConsolidated Toll NetworkIndia Ltd.IL & FS Investsmart Ltd.IL&FSInfrastructureDevelopment Corporation Ltd.IL&FS Trust Company Ltd.IL&FS Asset Management Company Ltd.KampsaxIndia Pvt Ltd.ORIX Auto & Business Solutions Ltd.Schoolnet India Ltd.EcosmartIndia Ltd.Wilbur Smith AssociatePrivateLimited.Vadodara Halol TollRoad Company Ltd.48: .-SNoida^^?TollBridgeCo. Ltd.Transactions/ Outstanding balancesServices& OtherIncomeExpenditure on Technical & Consultancy servicesLeaseRentalsPurchase of units of MutualFundSale of units of Mutual FundUnits of MutualFund as at year endReceivable as at the year endPayable as at the year endEquity as at the year endYear ended31.03.2003Rupees50,8637,562,21333,000198,167,114154,267,11447,257,447458,9743,352,099200,000,000Year ended31.03.2002Rupees99,96811,651,196336,940119,400,000121,889,6831,426,060200,000,000/'//.KeyManagement PersonnelPradeep Puri (President & CEO)Transactions/ Outstanding balancesVehicleLoan as at the yearendRemuneration paid17.Earning/ (Loss) per shareYear ended31.03.2003Rupees175,2176,109,290Year ended31.03.2002Rupees214,2353,706,496Year ended31.03.2003RupeesYear ended31.03.2002RupeesI.BASICLOSS PERSHAREi.NurnberofEquityshares ofRs. 10 each fully101,620,007101,620,007paid up at the year beginningii.Numberof Equityshares ofRs. 10 each fully122,400,007101,620,007paid up at the year endiii.Weighted Average number of EquityShares110,278,340101,620,007outstanding during the periodiv.NetLoss for thePeriod(285,980,928)(456,242,581)Basic Loss per Share(2.59)(4.49)49.'SNoida^^?TollBridgeCo. Ltd.II.DILUTEDLOSS PER SHAREi.Weighted Average of Equity Shares of Rs. 10 each110,278,340101,620,007fully paid up outstanding during the periodii.NumberofFCD of Rs. 1,000 each convertibleinto100Equity shares of Rs. 10 each -Convertedin fully paid equity shares on 3 November, 2002Nil207,800iii.Number of potential Equity Shares of Rs. 10 each fullyNil20,780,000paid up afterconversion ofFCD'siv.Total number of potential Equity Shares (i+iii)110,278,340122,400,007v.FCDInterest savings on account of dilution-29,091,997vi.Diluted Loss(iii+v)(285,980,928)(427,150,584)Diluted Loss per Share(2.59)(3.49)Nominal value of Equity Share10.0010.0018.Previous Year's ComparativesFiguresforthepreviousyearhavebeenregrouped/reclassifiedtoconformtocurrentyear'spresentation.For andon behalfofNOIDA TOLL BRIDGE COMPANY LIMITEDGopi AroraDirectorR.K. BhargavaDirectorPradeep PuriPresident & CEOT. K. BanerjeeFinancial ControllerMonisha MacedoCompanySecretaryNew DelhiDate : June 12,200350. 5 Noida^^?TollBridgeCo. Ltd.NOIDA TOLLBRIDGECOMPANYLIMITEDBALANCESHEET ABSTRACTANDCOMPANY'SGENERALBUSINESSPROFILE(Interms of amendment to Schedule VI Part IV)IRegistrationDetailsRegistrationNo.BalanceSheetDate20-1975931March, 2003StateCode 20IICapital Raised during the Year(AmountinRs. Thousands)PublicIssue:NILBonusIssue:NILRightIssue:NILPrivatePlacement:NILIIIPosition of Mobilisation and Deployment of Funds(AmountinRs. Thousands)TotalLiablities:4513240TotalAssetsSourceofFundsPaid-upCapital:1224000SecuredLoans:3289240ApplicationofFundsNetFixedAssets:3676200(includingCapitalWork-in-progress)NetCurrentAssets:(97358)AccumulatedLosses:791576Reserveand Surplus:UnsecuredLoans:Investments:Misc.Expenditure:4513240NILNIL9951343309IVPerformanceof theCompany(AmountinRs. Thousands)Turnover& OtherIncomeProjectunderconstruction:187346Profit/Lossbefore Tax:285981Earning perShareinRs.:(2.59)TotalExpenditure:473327Profit/Lossafter Tax:285981Dividendrate %:N/AVGenericNames ofthreePrincipalProducts/ServicesoftheCompany(aspermonetaryterms)Item CodeNo. (ITC Code):NILProductDescription TheCompanyhasbeensetupforthepurposeofconstruction&operationofDelhiNoida LinkBridgeProjecton Build, Operate, Own &Transfer(BOOT)system.Forandon behalfofNOIDA TOLL BRIDGE COMPANYLIMITEDGopi AroraDirectorR.K.BhargavaDirectorPradeepPuriPresident& CEOT. K. BanerjeeFinancialControllerNewDelhi,12 June 2003MonishaMacedoCompanySecretary51JSNoida^^^TollBridgeCo.Ltd.NOIDA TOLLBRIDGECOMPANYLIMITEDCASH FLOWSTATEMENT FOR THE YEARENDED31MARCH, 2003A.CASHFLOWFROMOPERATING ACTIVITIES:Loss for the yearAdjustmentsFor:DepreciationMiscellaneousExpenditure Written offPreliminaryExpenses WrittenoffFinanceChargesLossonSaleofAssetsIntereston SinkingFundInvestmentsOtherIncomeAdjustments forMovementin WorkingCapital:Decrease / (Increase) in Sundry DebtorsDecrease /(Increase)inInventoriesDecrease /(Increase)inLoansandAdvancesIncrease / (Decrease)in CurrentLiabilitiesCashFrom/(Used In)Operating activitiesB.CASHFLOWFROM INVESTING ACTIVITIES:Purchase /Addition toFixed AssetsProceeds from Sale ofFixed AssetsSale/(Purchase)ofSinking fundInvestmentsInterestreceived on SinkingFundInvestmentInterestreceived on OtherInvestmentsGain/(Loss)on SaleofUnits ofMutualFundsCash From/(Used In) Investing ActivitiesC.CASHFLOWFROMFINANCING ACTIVITIES:Share CapitalTermLoans fromBanks andFinancialInstitutionsInterestandFinanceChargesPaidPublicIssueExpensesCash From/(Used In) Financing ActivitiesNetIncrease /Decresein Cash and Cash EquivalentsCash andCashEquivalentsas at1 April, 2002Cash and Cash Equivalents as at 31March, 2003Components of Cash and Cash Equivelants as at:Cash in handBalances with thescheduled banks:-In Currentaccounts-InDepositaccountsShort TermInvestments(Maturityless than 3 months)Forandon behalfofNOIDA TOLL BRIDGE COMPANY LIMITEDYear ended31March, 2003Rupees(285,980,928)63,338,52414,412,712757,831312,528,422397,603(5,110,192)100,343,972(2,326,001)1,348,8436,328,756(41,726,681)63,968,889(7,227,135)389,4205,110,192(1,727,523)94,261,096(79,610,569)14,650,52776,891,89324,638,487_101,530,38031March, 200340,3771,976,33899,513,665101,530,380Year ended31March, 2002Rupees(456,242,581)68,308,41214,412,712757,831425,996,34513,363(8,638,364)(5,405,932)39,201786(894,061)(3,344,371)2,932,558(157,198,968)(119,303,056)(245,464,428)101,607101,704,3779,904,62340,5025,365,431(128,347,888)588,438,904(345,775,597)242,663,307(4,987,637)29,626,12424,638,48731March, 200212,35218,005,4596,620,67624,638,487Gopi AroraDirectorR.K.BhargavaDirectorPradeepPuriPresident & CEOT. K. BanerjeeFinancialControll