NCC Annual Report - 2015-2016 Title pages

1 Building LIMITEDANNUAL Report 2015-16 Table of Contents Building on 01 Awards and Accolades 02 Our Customers 03 Company Overview 04 Message from Founder & Chairman Emeritus 05 Key Performance Indicators 06 Chairman's Message 08 Discussion with Managing Director 10 Corporate Information 12 Directors' Report 13 Management Discussion & Analysis 35 Report on Corporate Governance 43 Standalone Financial Statements 55 Consolidated Financial Statements 99 Disclaimer:in this Annual Report we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment decisions.

2 This Report and other statements written and oral that we periodically make contain forward- looking statements that set out anticipated results based on the management's plans and assumptions. We have tried wherever possible to identify such statements by using words such as 'anticipates', 'estimates', 'expects', 'projects', 'intends', 'plans', 'believes' and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in assumptions.

3 The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwiseSembcorp Gayatri Thermal Power Plant Nellore, Andhra PradeshWe are building our inherent strengthsThis year's Annual Report statement is our resolve to build on our inherent strengths and operational advantages and thereby create further value for all our 16 has been an year of excellent progress through delivering significantly improved financial returns.

4 As well as enhanced performance on most of the key financial and operational indicators. While we step into a new year we are determined to capitalise from the emerging opportunities coupled with our inherent advantages to Build We are building our visionTo be a world-class construction and infrastructure enterprise committed to quality, timely completion, customer satisfaction, continuous learning and enhancement of stakeholders' are building our lasting valuesLasting values are important for us as they protect the organization from various external shocks.

5 We build on nurturing lasting values like Openness and Trust, Integrity and Reliability, Team Work and Collaboration, Commitment and Creativity. We are building corporate social responsibilityShared responsibility and generosity for the society have long been a part of the tradition at NCC. Through NCC Foundation, the CSR arm of NCC, a portion of the company's profits are utilised for CSR the last two years, NCC has constructed 204 houses for the rural poor. It has also constructed 300 toilets cum bathrooms for the rural poor under Swacch Bharat Abhiyaan.

6 1 Building and Accolades2Dr A V S Raju, Founder & Chairman Emeritus was honored with the Bulandh Bharath Award for his exemplary contributions towards nation building. National Award for Excellence in Cost Management for the year 2015 by "The Institute of Cost Accountants of India". Best compliance in Service Tax matters from Central Board of Excise, Customs & Service Tax , Hyderabad Construction Industry Development Council (CIDC), New Delhi has been set up jointly by the Planning Commission, Government of India and the Indian construction industry and undertakes a wide range of activities to benefit the construction industry.

7 CIDC has instituted Viswakarma Awards 2016 to recognize and encourage excellence in the construction industry. The following awards were received by Professionally Managed Company-NCC LimitedIndustry Doyen Award - A A V Ranga Raju, MDBest Construction Project-ESIC GulbargaBest Artisan Awards to six employeesMr R S Raju, CFO, has been recognised as one of the BEST CFOs by the Chartered Institute of Management Accountants (CIMA).Our CustomersNational Highways Authority of India (NHAI)State Public Works Departments (of various states)Karnataka Road Development CorporationIrrigation and CAD departments (of various states)Hyderabad Metropolitan Water Supply and Sewerage BoardGujarat Water Supply and Sewerage BoardChennai Metropolitan Water Supply and Sewerage BoardState Electricity Boards (of various states)

8 Maharashtra Airport Development Company, MumbaiGovernment of West Bengal, PHE Office, KolkataSahara India Commercial Corporation limited , PuneHindustan Aeronautics LimitedBharat Heavy Electricals LimitedNational Thermal Power CorporationReliance Industries LimitedKarnataka Housing BoardAndhra Pradesh Housing BoardEngineers India LimitedBennett Coleman and Company LimitedPatni ComputersSingareni Collieries Company LimitedDelhi metro rail Corporation LimitedAnsal Properties & Infrastructure limited , LucknowUttar Pradesh Housing & Development Board, LucknowEmployees State Insurance Corporation (ESIC) chennai metro rail LimitedShriram Properties Private LimitedReserve Bank of IndiaMuscat Municipality, Sultanate of Oman3 Steel Authority of India LimitedNational Institute of TechnologyMahanadi Coal Fields LimitedSymbiosis UniversityMinistry of DefenceRail Vikas Nigam LimitedNBCC LimitedAllahabad Development Authority LimitedMinistry of Transport & Communication - Govt.

9 Of OmanBihar Agricultural UniversityMaharashtra State Road Development Corporation LtdPurvanchal Vidyut Vyapar Nigam LimitedPublic Health Engineering Department (of various states)Rashtriya Madhyamika Shiksha, KarnatakaGuntur Municipal Corporation, Andhra PradeshUP Expressway Industrial Development AuthorityIndian Institute of Technology, JodhpurDirectorate of Arts & Culture, MeghalayaTamil Nadu Housing BoardNational Mineral Development Corporation LimitedHyderabad Growth Corridor limited , HyderabadSardar Sarovar Narmada Nigam LimitedDept.

10 Of Sports, Govt. of UttarakhandTelangana drinking water supply project, Govt of TelanganaNagpur metro rail Corporation Ltd. NagpurDept. of Space,Govt. of India, SriharikotaIndian Institute of Management, RaipurBangalore metro rail Corporation, Bangalore4 Company OverviewEstablished in 1978, as a partnership firm and converted into a limited company in 1990, NCC has progressed consistently over past three decades. Today we are among the top three construction companies in India in terms of revenue. NCC was born from a vision to provide world class construction solutions with focus on quality, timely completion, customer satisfaction, continuous learning and enhancement of stakeholders undertakes civil construction in segments such as buildings, water, roads, irrigation, power, electrical, railways, metals, mining and has also a presence in the Middle East where it currently undertakes works in roads, buildings.