NOIDA TOLL BRIDGE COMPANY LIMITEDAND ITS SUBSIDIARY COMPANY

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2011

Note / 31 March, 2011
US ($) / 31 March, 2010
US ($)
Assets
Non Current Assets
Property, Plant and Equipment / 2 / 1,541,330 / 1,743,773
Intangible Asset / 3 / 120,467,626 / 119,800,921
Employee Benefit / 10,349 / 103,247
Trade Receivable / 6 / - / 347,939
Loans and Advances / 4 / 45,462 / 67,702
122,064,767 / 122,063,582
Current Assets
Inventories / 5 / 48,548 / 59,851
Trade Receivables / 6 / 867,294 / 994,501
Loans and Advances / 4 / 1,074,819 / 1,039,652
Prepayments / 54,065 / 62,845
Available-for-Sale Investments / 7 / 5,330,279 / 4,966,843
Cash and Cash Equivalents / 8 / 1,011,828 / 815,773
8,386,833 / 7,939,465
Total Assets / 130,451,600 / 130,003,047
Equity and Liabilities
Issued Capital / 9 / 42,419,007 / 42,419,007
Securities Premium / 10 / 32,530,429 / 32,177,308
Debenture Redemption Reserve / 10 / 462,415 / 326,711
Net Unrealised Gains Reserve / 10 / 8,579 / 1,132
General Reserve / 10 / 11,264 / 11,142
Effect of Currency Translation / 10 / (1,128,642) / (1,755,209)
Retained earnings (Profit & Loss Account ) / 10,130,533 / 8,533,366
Equity attributable to equity holders / 84,433,585 / 81,713,457
Non Controlling Interest / (4,034) / -
Total Equity / 84,429,551 / 81,713,457
Non Current Liabilities
Interest-bearing Loans and Borrowings / 11 / 25,910,874 / 36,386,090
Provisions / 12 / 104,230 / 2,130,416
Deferred Tax Liability / 13 / 5,811,782 / 3,717,031
Current Liabilities
Interest-bearing Loans and Borrowings / 11 / 7,688,279 / 2,358,443
Trade and Other Payables / 14 / 3,176,592 / 2,950,115
Provisions / 12 / 3,078,819 / 620,687
Provision for Taxes / 251,473 / 126,808
Total Liabilities / 46,022,049 / 48,289,590
Total Equity and Liabilities / 130,451,600 / 130,003,047

In terms of our report of even date On Behalf of the Board of Directors

For Luthra & Luthra

Chartered Accountants

Akhilesh Gupta Harish Mathur

Partner Director Director CEO

Place: Noida T. K. Banerjee Monisha Macedo

Date CFO Manager

NOIDA TOLL BRIDGE COMPANY LIMITED AND ITS SUBSIDIARY COMPANY

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2011

Note / Year ended
31 March, 2011
US ($) / Year ended
31 March, 2010
US ($)
Toll Revenue / 15,329,128 / 14,955,580
License Fee / 3,505,474 / 2,961,964
Miscellaneous Income / 301,204 / 161,110
Total Income / 19,135,806 / 18,078,654
Operating and Administrative Expenses
- Operating Expenses / 15 / 888,704 / 1,082,920
- Administrative Expenses / 15 / 4,453,285 / 3,962,641
- Depreciation / 2 / 326,411 / 412,074
- Amortisation / 3 / 634,798 / 644,554
Total Operating and Administrative Expenses / 6,303,198 / 6,102,189
Group Operating Profit from Continuing Operations / 12,832,608 / 11,976,465
Finance Income
- Profit on Sale of Investments / 367,938 / 221,856
Finance Charges / 16 / (4,993,616) / (5,448,710)
(4,625,678) / (5,226,854)
Profit/(Loss) from Continuing Operations before taxation / 8,206,930 / 6,749,611
Income Taxes:
- Current Taxes / (2,038,013) / (1,450,819)
- Deferred Tax / 13 / (2,012,051) / (2,507,222)
Profit/(Loss) after tax for the year / 4,156,866 / 2,791,570
Other Comprehensive Income
Gain on fair valuation of available for sale instruments / 7,447 / 356
Debenture Redemption Reserve / (132,118) / (108,904)
Effect of Currency translation / 983,396 / 9,124,521
Total Other Comprehensive Income / 858,725 / 9,015,973
Total Comprehensive Income / 5,015,591 / 11,807,543
Profit Attributable to
Equity Shareholders / 4,160,818 / 2,791,570
Non Controlling Interest / (3,952) / -
4,156,866 / 2,791,570
Comprehensive Income attributable to
Equity Shareholders / 5,019,543 / 11,807,543
Non Controlling Interest / (3,952) / -
5,015,591 / 11,807,543
Profit/(Loss) per share
- basic and diluted for the year / 17 / 0.022 / 0.015

In terms of our report of even date On Behalf of the Board of Directors

For Luthra & Luthra

Chartered Accountants

Akhilesh Gupta Harish Mathur

Partner Director Director CEO

Place: Noida T. K. Banerjee Monisha Macedo

Date: CFO Manager

NOIDA TOLL BRIDGE COMPANY LIMITEDAND ITS SUBSIDIARY COMPANY

CONSOLIDATED CASH FLOW FOR THE YEAR ENDED 31st MARCH, 2011

Year ended
31 March, 2011
US ($) / Year ended
31 March, 2010
US ($)
A. Cash Flow from Operating Activities
Receipts from Customers / 19,470,986 / 16,985,405
Payment to Suppliers and Employees / (4,393,626) / (4,614,851)
Deposits, Advances and Staff Loan / 28,739 / 15,180
Purchase of Inventories / (21,765) / (63,852)
Income Tax Paid / (2,022,553) / (1,521,168)
Net Cash from/(used in) Operating Activities (A) / 13,061,781 / 10,800,714
B. Cash Flow from Investment Activities
Purchase of Fixed Assets / (187,100) / (55,895)
Proceeds from Sale of Fixed Assets / 23,195 / 22,263
Purchase of Available for Sale’ Investments / (31,978,766) / (19,203,548)
Proceeds from sale of ‘Available for Sale’ Investments / 32,051,362 / 18,715,944
Net Cash from/ (used in) Investment Activities (B) / (91,309) / (521,236)
C. Cash flow from Financing Activities
Dividend Paid / (2,381,920) / -
Repayment of Term Loan to Banks, FIs and Others / (6,873,382) / (6,325,431)
Interest and Finance Charges Paid / (3,531,885) / (3,388,451)
Net Cash from/ (used in) Financing Activities (C) / (12,787,187) / (9,713,882)
Net Increase/ (Decrease) in Cash and Cash Equivalents (A+B+C) / 183,285 / 565,596
Net Foreign Exchange Difference / 12,770 / 53,839
Cash and Cash Equivalents (Opening Balance) - Refer Note – 8 / 815,773 / 196,338
Cash and Cash Equivalents (Closing Balance) - Refer Note – 8 / 1,011,828 / 815,773

In terms of our report of even date On Behalf of the Board of Directors

For Luthra & Luthra

Chartered Accountants

Akhilesh Gupta Harish Mathur

Partner Director Director CEO

T. K. Banerjee Monisha Macedo

Place: Noida CFO Manager

Date

35

NOIDA TOLL BRIDGE COMPANY LIMITEDAND ITS SUBSIDIARY COMPANY

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2011

Share capital
US($) / Securities Premium
US($) / Effect of Exchange Translation Reserve
US($) / General Reserve
US($) / Retained Earning
US($) / Net Unrealised Gains Reserve
US($) / Debenture Redemption Reserve / Equity
US($) / Minority Interest
US($) / Total Equity
US($)
As at April 1,2009 / 42,419,007 / 28,508,021 / (7,184,335) / 9,871 / 5,850,700 / 776 / 192,970 / 69,797,010 / - / 69,797,010
Comprehensive income / - / - / - / - / 2,791,570 / - / - / 2,791,570 / - / 2,791,570
Creation of Debenture Redemption Reserve / - / - / - / - / (108,904) / - / 108,904 / - / - / -
Fair value change on available for sale financial assets / - / - / - / - / - / 356 / - / 356 / - / 356
Difference for currency translation / - / 3,669,287 / 5,429,126 / 1,271 / - / - / 24,837 / 9,124,521 / - / 9,124,521
At March 31, 2010 / 42,419,007 / 32,177,308 / (1,755,209) / 11,142 / 8,533,366 / 1,132 / 326,711 / 81,713,457 / - / 81,713,457
Comprehensive income / - / - / - / - / 4,160,818 / - / - / 4,160,818 / (3,952) / 4,156,866
Creation of Debenture Redemption Reserve / - / - / - / - / (132,118) / - / 132,118 / - / - / -
Fair value change on available for sale financial assets / - / - / - / - / - / 7,447 / - / 7,447 / - / 7,447
Interim Dividend* / - / - / - / - / (2,085,206) / - / - / (2,085,206) / - / (2,085,206)
Dividend Tax / - / - / - / - / (346,327) / - / - / (346,327) / - / (346,327)
Difference for currency translation / - / 353,121 / 626,567 / 122 / - / - / 3,586 / 983,396 / (82) / 983,314
At March 31, 2011 / 42,419,007 / 32,530,429 / (1,128,642) / 11,264 / 10,130,533 / 8,579 / 462,415 / 84,433,585 / (4,034) / 84,429,551

* Dividend of US$ 0.01 per share has been paid during the year.

35

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Corporate Information

Noida Toll Bridge Company Limited (NTBCL) is a public limited company incorporated and domiciled in India on 8th April 1996 with its registered office at Toll Plaza, DND Flyway, Noida - 201301, Uttar Pradesh, India. The equity shares of NTBCL are publicly traded in India on the National Stock Exchange and Bombay Stock Exchange. NTBCL launched the issue of global depository receipts (GDRs) represented by equity shares in March 2006. The GDRs of NTBCL are traded on Alternate Investment Market (AIM) of the London Stock Exchange. The financial statements of the NTBCL are the responsibility of the Directors of the company.

The NTBCL has been set up to develop, establish, construct, operate and maintain a project relating to the construction of the Delhi Noida Toll Bridge under the “Build-Own-Operate-Transfer” (BOOT) basis. The Delhi Noida Toll Bridge comprises the Delhi Noida Toll Bridge, adjoining roads and other related facilities, the Ashram flyover which has been constructed at the landfall of the Delhi Noida Toll Bridge and the Mayur Vihar Link and it operates under a single business and geographical segment (Refer Note 24).

(b) Service Concession Arrangement entered into between IL&FS, NTBCL and NOIDA
A ‘Concession Agreement’ entered into between the NTBCL, Infrastructure Leasing and Financial Services Limited (IL&FS, the promoter company) and the New Okhla Industrial Development Authority, Government of Uttar Pradesh, conferred the right to the Company to implement the project and recover the project cost, through the levy of fees/ toll revenue, with a designated rate of return over the 30 years concession period commencing from 30 December 1998 i.e. the date of Certificate of Commencement, or till such time the designated return is recovered, whichever is earlier. The Concession Agreement further provides that in the event the project cost together with the designated return is not recovered at the end of 30 years, the concession period shall be extended by 2 years at a time until the project cost and the return thereon is recovered. The rate of return is computed with reference to the project costs, cost of major repairs and the shortfall in the recovery of the designated returns in earlier years. As per the certification by the independent auditors, the total recoverable amount comprises project cost and 20% designated return. NTBCL shall transfer the Project Assets to the New Okhla Industrial Development Authority in accordance with the Concession Agreement upon the full recovery of the total cost of project and the returns thereon.

Further details of concession agreement are given in Note 25.

(c) Basis of preparation

The consolidated financial statements of Noida Toll Bridge Company Limited and its subsidiary (‘the Group’) have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations as laid down by the International Financial Reporting Interpretations Committee (IFRIC)

These consolidated financial statements have been drawn up in accordance with the going-concern principle and on a historical cost basis, except for available-for sale investments that have been measured at fair value. The presentation and grouping of individual items in the balance sheet, the income statement and the cash flow statement, as well as the changes in equity, are based on the principle of materiality.

(d) Significant accounting judgments and estimates

Judgements and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Judgements

In the process of applying the Group's accounting policies, management has made the following judgments, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements:

Recognition of Concession Agreement as an Intangible Asset

(i) Basis of accounting for the service concession

The Group has determined that IFRIC 12 Service Concession Arrangements is applicable to the Concession Agreement and hence has applied it in accounting for the concession.

The directors have determined that the intangible asset model in IFRIC 12 Service Concession Arrangement is applicable to the concession. In particular, they note that users pay tolls directly so the grantor does not have the primary responsibility to pay the operator.

In order to facilitate the recovery of the project cost and 20% designated returns through collection of toll and development rights, the grantor has guaranteed extensions to the terms of the Concession, initially set at 30 years. The Group has received an “in-principle” approval for development rights from the grantor. However the Group has not yet entered into any agreement with the grantor which would constitute an assurance from the grantor to facilitate the recovery of shortfalls. Management recognizes that the development right agreement when executed will give rise to intangible assets in their own right.