IVRCL Ltd Directors Report.

To

The Members,

IVRCL Limited

Pursuant to the orders of Honble National Company Law Tribunal (NCLT), Hyderabad, Corporate Insolvency Resolution Process (CIRP) had been initiated in respect of IVRCL Limited ("the Company") under the provisions of the Insolvency and Bankruptcy Code, 2016 ("the Code") with effect from 23rd February, 2018.

In this connection, Mr. Sutanu Sinha had been appointed as Resolution Professional (RP) to carry out the activities relating to CIRP as per the rules, regulations and guidelines prescribed by the Code.

Since the company was under Corporate Insolvency Resolution Process (CIRP), as per Section 17 of the Insolvency & Bankruptcy Code, from the date of appointment of the Resolution Professional -

(a) the management of the affairs of the company was vest in the Resolution Professional.

(b) the powers of the Board of Directors company stood suspended and exercised by the Resolution Professional.

(c ) the officers and managers of the company to report to the resolution professional and provide access to such documents and records of the company as may be required by the Resolution Professional.

1. LIQUIDATION

The Honble National Company Law Tribunal, Hyderabad Bench ("NCLT") has passed its order dated July 26, 2019 read with corrigendum order issued on July 31, 2019 for "Liquidation of M/s IVRCL Limited as going concern" and appointed Mr. Sutanu Sinha as the Liquidator of the Company.

Claims and Distribution of assets in Liquidation under Insolvency and Bankruptcy Code (IBC).

The total claims admitted as on 15th November concern" shall be distributed as per section 53 of 2020 is INR 17958 Crores. The proceeds from the the Insolvency and bankruptcy Code 2016 (IBC). sale of the Company for "Liquidation as going concern" shall be distributed as per section 53 of the Insolvency and bankruptcy Code 2016 (IBC).

Summary of List of Claims received up to 15th November 2020

Category of the Claimant Nature of Claims

Claim Received / Collated

Claim Admitted

Claim Not Admitted

For IVRCL Nos Amount Nos Amount Nos Amount
Form C Operational creditors except workman and employees 1,533 2,908.98 1,354 524.55 875 2,384.44
Form D(Promotors) Financial creditors 1 241.82 0 0 1 241.82
Form D(Others) Financial creditors 34 17,845.83 33 17,399.78 1 446.05
Form E(Promotors) Workman & employees 1 1.55 0 0 1 1.55
Form E(Others) Workman & employees 575 15.61 425 4.26 405 11.35
Form F Workman and Employees 1108 30.43 0 0 1108 30.43
Form G(Promotors) Other stakeholder 1 0.85 0 0 1 0.85
Form G(Others) Other stakeholder 12 6,626.15 1 29.41 11 6596.74
Total - A 3,265 27,671.22 1,813 17,958.00 2,403 9,713.23
Form C Operational creditors except workman and employees 1 0.71 0 0 1 0.71
Form D Financial creditors 5 884.99 0 0 5 884.99
Form E Workman & employees 0 0 0 0 0 0
Form F Workman and Employees 0 0 0 0 0 0
Total - B 6 885.7 0 0 6 885.7
Total A+B (IVRCL+ Subsidiaries) 3,271 28,556.92 1,813 17,958.00 2,409 10,598.93

Updated list of Stakeholders (Claims received upto 15th November 2020 is hosted at the Companys website at the link http://www.ivrcl.com/NCLT//All%20Claims%20-%20Updated%2015112020.pdf.

During liquidation Period , all of the powers of Board of Directors and Key managerial persons and the partners of the Corporate debtors, as the case may be , at cease to have effect and vested in the Company Liquidator.

2. FINANCIAL HIGHLIGHTS

The Liquidator presents the 33rd Annual Report of IVRCL Limited ("Company") with Audited Financial Statements of the Company for the Financial Year 2019-2020.

(Rupees in millions)

Particulars

Standalone

FY 2018-19 FY 2019-20
Total Revenue 7,292.33 4,891.05
Gross Profit before Interest, Depreciation, Exceptional Item & Tax (1031.14) (5,141.85)
Less: Interest 12,191.96 13,965.59
Depreciation 482.43 333.45
Exceptional item 1,732.28 532.38
Provision for Tax / Reversal of Tax in Current Year (14.88) (15.03)
(Loss)/Profit after Tax (15,452.70) (19,988.30)
Balance Brought Forward from the previous year (41,642.07) (57,094.77)
Balance carried to Balance Sheet (57,094.77) (77,083.07)
Paid-up Capital 1,565.80 1,565.80
Reserves & Surplus (33,059.57) (53,016.60)
EBIDTA (1031.14) (5,141.85)

3. DIVIDEND

Since your company is under Liquidation as a going Concern and incurring losses the Liquidator expresses his inability to recommend any dividend for the Financial year 2019 - 2020.

4. PERFORMANCE REVIEW

Your company achieved a gross turnover of Rs.4891.05 million for the financial year 2019 -20 as against Rs.7292.34 million in the previous financial year. Profit/ (Loss) after Tax (PAT) stood at Rs.(19,988.30) million as compared to Rs.(15452.70) million for the previous financial year.

During the year under review, there is no change in nature of business of the company and no material changes and commitments have occurred after the close of the year till the date of this Report, which affect the financial position of the Company.

Shortage of working capital and initiation of liquidation process have negative impact on the performance of the company.

5. TRANSFER TO RESERVES

Since your company is under Liquidation as a going Concern and incurring losses no reserves to be transferred for the financial year 2019 - 2020.

6. EXTENSION OF ANNUAL GENERAL MEETING

In view of the covid-19 pandemic the Company has sought extension of time from Registrar of Companies, Hyderabad for conducting the Annual General Meeting of the Company for the financial year 2019-20.The Registrar of Companies has granted extension of time by three months from the due date and accordingly the Annual General Meeting is being held in month of D e c e m b e r 2 0 20.

IMPACT OF COVID -19

Post declaration of COVID-19 as a pandemic by the World Health Organization, the Government in India and across the world have taken significant measures to curtail the widespread of virus, including countrywide lockdown and restriction in economic activities. The extent to which the COVID-19 pandemic has impacted the Companys result for the year ending 31st March 2020 is not substantial. Further, the subsequent position of company preformation will depend on future development, which are uncertain, including, amount other things, any new information concerning the severity of the COVID- 19 pandemic and any action to contain its spread or mitigate its impact whether government- mandated or elected by the Company

7. BUSINESS REVIEW

The Management Discussion and Analysis Section of the Annual Report present a detailed business review of the company.

8. CHANGE IN SHARE CAPITAL

There is no change in the share capital of the Company during the year under review. The trading in the shares has been suspended by NSE & BSE from 3 September 2020 due to Liquidation of the Company as a going concern.

9. SUBSIDIARY COMPANIES

The Company has 26 direct subsidiaries and 3 associate companies within the meaning of Section 2(87) and 2(6) of the Companies Act, 2013 respectively (hereinafter referred as "Act). There has been no material change in nature of business of the subsidiaries. Pursuant to Proviso to Section 129(3) of the Act, a statement containing the salient features, brief details of performance and financials of the Subsidiaries, Associates and Joint Venture Companies, for the financial year ended March 31, 2020 is attached to Financial Statements of the Company.

Pursuant to Section 136 of the Act, the financial statements including consolidated financial statements, other relevant documents and audited accounts of subsidiaries of the company are available at website of the Company www.ivrcl.com under Financials Section and will be available for inspection by any member at the Registered office of the Company on all working days during business hours.

The Board has adopted a policy for determining material subsidiaries of the Company, as per SEBI (Listing Obligations and Disclosures Requirements) Regulations 2015. The said policy is hosted at the Companys website at the linkhttp://www.ivrcl.com/downloads/PolicyonMat erialSubsidiaries New.pdf

10. CONSOLIDATED FINANCIAL STATEMENTS

In terms of Section 129(3) of the Companies Act, 2013 and Regulation 34 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations 2015, Consolidated Financial Statements of the Company prepared in accordance with Accounting Standards issued by Institute of Chartered Accountants of India, are attached and forms part of the Annual Report.

11. FIXED DEPOSITS

During year under review, your company has neither invited nor accepted any Fixed Deposits from the public.

13. CORPORATE GOVERNANCE

Detailed Report on Corporate Governance as stipulated under Schedule V of SEBI LODR Regulations is provided under separate section and forms part of this Report.

The requisite certificate from Practicing Company Secretaries, confirming the compliance of the conditions stipulated under SEBI LODR Regulations is attached to the Report on Corporate Governance.

14. MANAGEMENT DISCUSSION AND ANALYSIS REPORT

As stipulated under SEBI (Listing Obligations and Disclosures Requirements) Regulations 2015 the Report on Management Discussion and Analysis is annexed to this report and forms part of the Annual-Report.

15. POLICY ON CODE OF CONDUCT

The Company laid down a "Code of Conduct" for all Board members and Senior Management Personnel. The said code of conduct is hosted at the Companys website.

16. DIRECTORS AND KEY MANAGERIAL PERSONNEL.

The Company is under Liquidation as a going concern since 26th July 2019 vide NCLT order read with corrigendum order dated 31st July 2019. By virtue of NCLT order all the powers of the Board of Directors and Key managerial personnel shall cease to have effect and shall be vested with the Liquidator. In addition to the above powers the Liquidator shall exercise the powers and duties as enumerated in section 35 to 50, 52 to 54 of the Insolvency and Bankruptcy Code 2016 read with Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations 2016.

Mr. R. Balarami Reddy, Chief Financial Officer has superannuated on 30th June 2019 and in his place Mr. L. Ragurami Reddy was appointed as Chief Financial officer.

There have been no other changes in Directors and Key Managerial Personnel of the Company.

17. MEETINGS OF THE BOARD

No meetings were conducted by the Board of Directors since the powers of the Board of Directors have been suspended w.e.f. 23.02.2018 pursuant to the orders dated 23.02.2018 of Honble National Company Law Tribunal (NCLT) on commencement of CIRP and subsequently on Liquidation of the Company as a going concern dated 26th July 2019 read with corrigendum order dated 31st July 2019.

18 BOARD COMMITTEES

Since the powers of the Board of Directors have been suspended w.e.f. 23.02.2018 pursuant to the orders dated 23.02.2018 of Honble National Company Law Tribunal (NCLT), the powers of the various committees have also been suspended w.e.f. the same date on commencement of CIRP and subsequently on Liquidation of the Company as a going concern. Hence no meetings have been conducted.

19 BOARD EVALUATION

Since the powers of the Board of Directors have been suspended w.e.f. 23.02.2018 pursuant to the orders of Honble National Company Law Tribunal (NCLT) dated 23.02.2018 on commencement of CIRP and subsequently on Liquidation of the Company as a going concern, evaluation of Board has not taken place.

20. AUDITORS AND THEIR REPORTS Statutory Auditors

M/s. Chaturvedi & Co., Chartered Accountants (Firm Registration No. 302137E) were appointed as Statutory Auditors of the company at the Annual General Meeting held on 29th day of September, 2017, for a period of 5 years [i.e. from the F.Y 2017-18 to F.Y 2021-22].

During the year under review, no fraud has been reported by auditors under sub-section(12) of Section 143 of the Act.

The Comments for the qualifications in the Auditors Report on the financial statements of the Company for financial year 2019- 20 are as provided in the "Statement on Impact of Audit Qualifications" which is annexed hereafter and forms part of this report.

Secretarial Auditor

As per the provisions of Section 204 of the Act, the Company appointed M/s. D. Hanumanta Raju & Co, Practicing Company Secretaries as Secretarial Auditor for the purpose of auditing the Secretarial activities of the Company for the financial year 2019-20.

The Secretarial audit report issued by the said auditor has been annexed to this report as Annexure A.

The Secretarial Audit Report contains qualifications.

Cost Auditor

As per the provisions of Section 148 of the Act read with Rules made thereunder, the company appointed M/s. Sagar & Associates, Practicing Cost Accountants as Cost Auditor for the purpose of auditing the Cost accounting records maintained by the company for the financial year 2019-20.

21. PARTICULARS OF LOANS, INVESTMENTS AND GUARANTEES

The particulars of loans, investments made and guarantees issued under Section 186 of the Act, during year under review, are provided in notes to financial statements, which forms part of this report.

22. RELATED PARTY TRANSACTION

As per the requirement of provisions of the Act and SEBI (Listing Obligations and Disclosures Requirements) Regulations 2015, the Company has formulated a policy on Related Party Transactions (RPT) to ensure the transparency in transactions between the company and related parties. The said RPT Policy is also available at Companys website at the linkhttp://www.ivrcl.com/downloads/RelatedPart yTransactionPolicy.pdf All Related Party Transactions entered by the Company during the year under review were in ordinary course of business and on Arms length basis. There were no materially significant related party transactions entered by the company during year under review.

Since all the related party transactions entered into by the Company, were in ordinary course of business and were on Arms length basis, disclosure in form AOC- 2 as required under Section 134(3)(h) of the Act is not applicable.

The details of related party transactions pursuant to Accounting Standards are provided in notes to financial statements.

23. INTERNAL FINANCIAL CONTROLS

The Company has in place adequate internal financial controls commensurate with the size, scale and complexity of operations. The details relating to internal financial controls and their adequacy are included in the Management Discussion and Analysis Report, which forms part of this Report.

24. RISK MANAGEMENT

The company has established Risk Management process to manage risks with the objective of maximizing shareholders value. The details of various risks that are being faced by the Company are provided in Management Discussion and analysis Report, which forms part of this Report.

25. WHISTLE BLOWER POLICY

The Board has adopted a Whistle Blower Policy as stipulated under Section 177(9) of the Act and SEBI (Listing Obligations and Disclosures Requirements) Regulations 2015 to report the genuine concerns of the employees and Directors.

The Whistle Blower Policy adopted by the Company is hosted on Companys website at the link http://ivrcl.com/downloads/WhistleBlowerPolicy. pdf

26. SIGNIFICANT AND MATERIAL ORDERS

There are no significant and material orders passed by the regulators or tribunals impacting the going concern status and Companys operations in future.

27. CASES FILED UNDER SEXUAL HARASSMENT ACT

No cases were filed pursuant to the Sexual Harassment of Women at work Place (Prevention, Prohibition and Redressal) Act, 2013, during the year under review.

28 PARTICULARS OF EMPLOYEES

The statement containing the information pertaining to employees as required under Section 197(12) of the Act read with Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014, is annexed to this report. Having regard to provisions of Section 136 of the Act, the Annual Report excluding the aforesaid information is being sent to the members of the company. The said information is available for inspection at the registered office of the Company during working hours and any member interested in obtaining the said information may write to Company Secretary and the same will be furnished on request.

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are annexed as Annexure B to this Report.

29. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo:

Conservation of Energy is an ongoing process in the Companys activities. The core activity of the company is civil construction which is not an energy intensive activity.

There is no information to be furnished regarding Technology Absorption as your Company has not undertaken any research and development activity in any manufacturing activity nor any specific technology is obtained from any external sources which needs to be absorbed or adapted.

Innovation is a culture in the Company to achieve cost efficiency in the construction activity to be more and more competitive in the prevailing environment and the effect of the same cannot be quantified.

The particulars of expenditure and earnings in Foreign currency are provided in notes to financial statements.

30. CORPORATE SOCIAL RESPONSIBILITY

As per the provisions of Section 135 of the Act, the Company has constituted the CSR committee to formulate, implement and monitor the CSR Policy of the Company. However as the Company does not have average net profits for the three immediately preceding financial years, the Company was not required to make any expenditure on CSR activities during financial year 2019 -20 as specified under Section 135(5) of the Act.

Hence the information on CSR activities as required under Section 135(5) of the Act and Rule 8 of Companies (Corporate Social Responsibility Policy) Rules, 2014, has not been provided by the Company, for the financial year 2019-20.

31. EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in form MGT- 9 as required under Section 92 of the Companies Act, 2013. For details please click www.ivrcl.com.

32. COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD AND ANNUAL GENERAL MEETINGS.

The Company has complied with Secretarial Standards issued by the Institute of Company Secretaries of India on Board meetings and Annual General-Meetings

33. INDUSTRIAL RELATIONS

The Company enjoyed cordial relations with the employees during the year under review and the Management appreciates the employees of all cadres for their dedicated services to the Company.

34. DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the provisions of Section 134(5) of the Companies Act, 2013, the Liquidator hereby state that:

(a) in preparation of annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures.

(b) the Liquidator had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;

(c) the Liquidator had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(d) the Liquidator had prepared the annual accounts on a going concern basis; and

e) the Liquidator , in the case of a listed company, had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.

(e) the Liquidator had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

(f) The Company being liquidated as going concern, all Disclosers are done in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, and presentation requirements of Division II to Schedule III subject to various overriding provisions of IBC 2016 as and where applicable.

35. CORPORATE INSOLVENCY RESOLUTION PROCESS (CIRP) AND LIQUIDATION AS A GOING CONCERN

The Company was under CIRP and subsequently under liquidation as going concern and information pertaining to the process is available at the Company website www.ivrclinfra.com.

36. ACKNOWLEDGEMENTS AND APPRECIATIONS

The Liquidator wishes to express appreciation of the support and co-operation of the Stakeholders, various departments of Central and the State Governments, Bankers, Financial Institutions, Suppliers, Employees, Associates , Subcontractors and others.

Place: Hyderabad
Date: 8th December 2020 Sutanu Sinha
Liquidator for IVRCL Limited
IP Registration No. IBBI/IPA-003/IP-N00020/2017-18/10167