Accounting Policies of Container Corporation of India Ltd. Company
Mar 31, 2023
1. CORPORATE INFORMATION
Container Corporation of India Limited (CONCOR), was incorporated on 10 March 1988 under the Companies Act with registration number 030915, and commenced its operation from November 1989 taking over the existing network of 7 ICDs from the Indian Railways. The shares of the Company are listed on two stock exchanges in India i.e. National Stock Exchange of India Limited (NSE) and BSE Limited (BSE).
From its humble beginning, it is now an undisputed market leader having the largest network of 61 ICDs/CFSs/Strategic Tie-ups in India. In addition to providing inland transport by rail for containers, it has also expanded to cover management of Ports, air cargo complexes and establishing cold-chain. It has and will continue to play the role of promoting containerization of India by virtue of its modern rail wagon fleet, customer friendly commercial practices and extensively used Information Technology. The company developed multimodal logistics support for Indiaâs International and Domestic containerization and trade. Though rail is the main stay of our transportation plan, road transportation is and also provided to cater the need of door-to-door services both in the International and Domestic business segment.
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind ASsâ) notified by the Central Government under section 133 of the Indian Companies Act, 2013 as Companies (Indian Accounting Standards) Rules, 2015 and as amended from time to time.
The financial statements have been prepared on the historical cost basis except financial instruments that are measured at revalued amounts or fair values at the end of each reporting period. In estimating the fair value of an asset or a liability, the company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in the financial statements is determined on such a basis, except for leasing transactions that are within the scope of IND AS 116 and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.
Ministry of Corporate Affairs (âMCAâ) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below:
Ind AS 1 - Presentation of Financial Statements
The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statements.
The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company does not expect this amendment to have any significant impact in its financial statements.
Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are âmonetary amounts in financial statements that are subject to measurement uncertaintyâ. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements.
5. Property, plant and equipment:
(i) Property, plant and equipment is stated at cost, less accumulated depreciation and accumulated impairment losses. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into the location and condition necessary for it to be capable of operating in the manner intended by management, the initial estimate of any decommissioning obligation, if any, and, for assets that necessarily take a substantial period of time to get ready for their intended use, finance costs. Cost includes net of interest on capital advances and is inclusive of freight, duties, taxes and other incidental expenses. In respect of assets due for capitalization, where final bills/claims are to be received/ passed, the capitalisation is based on the engineering estimates. Final adjustments, for costs and depreciation are made retrospectively in the year of ascertainment of actual cost and finalisation of claim. Items such as spare parts, stand-by equipment and servicing equipment are recognised in accordance with this Ind AS 16 when they meet the definition of property, plant and equipment.
(ii) Capital work in progress includes the cost of fixed assets that are not yet ready for their intended use and the cost of assets not put to use before the Balance Sheet date.
The expenditure incurred on survey, evaluation & investigation of projects, is booked under Capital Work-in Progress. However, at any stage, if management decides to abandon a project the expenditure incurred thereon is charged to the Statement of Profit & Loss at that stage.
(iii) Provision for stamp duty at the prevailing rate is made by the company at the time of capitalization of the amount paid for acquisition of land & is capitalised as part of the cost of Land.
Depreciation/Amortization:
(iv) Property, plant and equipment are depreciated over its useful life and in the manner prescribed in Schedule II to the Companies Act 2013, other than as prescribed below:
⢠Assets constructed on leasehold land, other than perpetual leases are depreciated over the period of lease or useful life of such assets, as prescribed under Schedule II of Companies Act 2013, whichever is less.
In respect of assets whose useful lives has been revised, the unamortised depreciable amount is charged over the revised remaining useful lives of the assets.
(v) Capital expenditure on enabling assets, like roads, culverts & electricity transmissions etc., the ownership of which is not with the Company are charged off to revenue in the accounting period of incurrence of such expenditure. However, capital expenditure on enabling assets, ownership of which rests with the company and which have been created on land not belonging to the Company is written off to the Statement of Profit & Loss over its approximate period of utility or over a period of 5 years, whichever is less. For this purpose, land is not considered to be belonging to the company, if the same is not owned or leased/licensed to the company.
(vi) An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal
or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
(vii) Non-current assets (or disposal groups) are classified as assets held for sale when a sale is considered highly probable and their carrying amount is to be recovered principally through a sale transaction rather than through continuing use. Non-current asset (or disposal groups) classified as held for sale are stated at the lower of carrying amount and fair value less costs to sell. Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.
Expenditure on computer software, which is not an integral part of hardware, is capitalised as an intangible asset. The cost of software includes license fee and implementation cost and is capitalised in the year of its implementation. Software is amortized over five years being management''s estimate of life of assets over which economic benefits will be derived. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
7. Impairment of Non-financial Assets:
At the end of each reporting period, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest Component of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.
Stores and spare parts are valued at cost on weighted average basis or Net Realizable Value (NRV) whichever is lower. Provision for obsolescence is made, whenever required.
(i) Liability for gratuity, leave salary and post retirement medical benefits payable to employees is provided for on accrual basis using the Projected Accrued Benefit Method (Projected Unit Credit Method with control period of one year) done by an independent actuary as at the Balance Sheet date. Contributions are made to approved gratuity fund created in a separate trust set up by the company for this purpose.
Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorized as follows:
⢠service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);
⢠net interest expense or income; and
⢠remeasurement.
The Company presents the first two components of defined benefit costs in profit or loss in the line item [âemployee benefits expenses]. Curtailment gains and losses are accounted for as past service costs.
The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the companyâs defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.
Termination benefits are immediately recognised in the statement of profit or loss account .A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.
(ii) Contribution to defined contribution plans such as Provident Fund, Pension Fund and Family Pension Fund are charged to the Statement of Profit & Loss as and when accrued.
(iii) The undiscounted amount of short term employee benefits expected to be paid for the services rendered are recognized as an expense during the period when the employees render the services.
10. Foreign Currency Transactions:
Functional currency: The functional currency of the Company is the Indian Rupee. These financial statements are presented in Indian Rupees.
(i) Income, Expenditure & Assets denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.
(ii) Loans, Current liabilities and Current assets in foreign currencies are translated at the exchange rate prevailing at the end of financial year.
(iii) Gains or losses due to foreign exchange fluctuations are recognised in the Statement of Profit & Loss.
(iv) Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are not translated.
(v) The date of transaction (which includes receipt or payment of advance consideration in a foreign currency) for the purpose of determining the exchange rate, is the date of initial recognition of the non monetary asset or non monetary liability. If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt.
1. Basic principal for Revenue Recognition
i. Revenue is recognized on satisfaction of each performance obligation (distinct services) as per the terms of the contract.
ii. Performance obligations are treated as distinct obligation:
a) When it is identifiable separately from other obligations in the contract;
b) Its progress can be measured separately;
c) Transaction price to the performance obligation can be allocated;
d) The customer will not be required to re-perform the services already performed in case it decides to terminate the contract at that stage;
e) There will not be any impairment in the value of services already performed; and
f) The customer can get the rest of the performance without intervention of CONCOR.
iii. Satisfaction of performance obligation: Container movement between two destinations is considered distinct performance obligation under each contract and the contract is treated as ''over the period contract''.
iv. Transaction price for each primary obligation is fixed at the time of entering into contract. Rates at which incidental services are charged are also known at the time of entering into contract. Therefore "output method" of revenue recognition is applied.
v. Volume discount scheme (VDS) is in the nature of variable consideration. Since, VDS is not universally applicable to all contracts, fair estimate is made of such consideration payable in specific cases and is deducted from Gross Revenue to reflect revenue net of variable consideration on the reporting date.
2. Rail Freight Income: Rail freight income and charges for incidental services and related expenses are accounted for on satisfaction of performance obligation i.e., transportation of container to the destination terminal/port/customer''s premises (in case of chassis delivery) after providing all incidental services required in the course of primary obligation of transportation like loading & unloading etc. to make the container/cargo ready for delivery.
3. Road Freight Income: Road freight income and charges for incidental services and related expenses are accounted for on satisfaction of performance obligation i.e., transportation of container to the destination terminal/port/customer''s premises after providing all incidental services required in the course of primary obligation of transportation like loading & unloading etc. to make the container/cargo ready for delivery.
However, in case of door to door delivery via rail movement, road freight income and charges for incidental services are accounted for on arrival of container at the originating CONCOR Terminal from customer premises.
4. Warehousing Income:
a) Warehousing Charges in domestic segment are recognized on accrual basis.
b) Warehousing Charges in EXIM segment are recognized at the time of release of cargo to the
customer.
5. Terminal service charges:
a) Terminal Service Charges (TSC) on empty containers and loaded domestic containers are recognized on accrual basis.
b) Terminal Service Charges (TSC) on EXIM loaded containers are recognized at the time of release of containers.
6. Dividend income is recognized when the company''s right to receive the dividend is established.
7. Interest income from deposits is recognized on accrual basis.
8. Interest on income tax refunds are accounted for on the finalization of assessments.
12. Claims/Counter-claims/Penalties/Awards:
Claims/counter-claims/penalties/awards are accounted for in the year of its settlement.
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from âprofit before taxâ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Companyâs current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax base used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.
14. Investment in equity instrument of consolidated entities
The Companyâs investment in equity instruments of subsidiaries and joint ventures are accounted for at cost.
15. Provisions, Contingent Liabilities & Contingent Assets:a. Provisions
Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
Onerous Contracts: A contract is considered as onerous when the expected economic benefits to be derived by the company from the contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision for an onerous contract is measured at the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the company recognises any impairment loss on the assets associated with that contract.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
Contingent assets are not recognized in the Financial Statements. However they are disclosed when the possible right to receive exists.
Basic earnings per share (âEPSâ) is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of shares outstanding during the year.
Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the period except where the result would be anti-dilutive.
In the cash flow statement cash and cash equivalents include cash in hand, demand deposits with banks, other short term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.
The Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand -alone price of the lease component and the aggregate stand-alone price of the non-lease components.
The Company as a Lessee
At the date of the commencement of the lease, the Company recognizes a right-of-use assets (âROUâ) and a corresponding lease liability for all the lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short term leases) and low value leases, the Company recognizes the lease payments as an expense on a straight-line basis over the term of the lease.
In determining the lease term, Company considers the Option to extend/terminate the lease, wherever it is reasonably certain to exercise such option.
Lease liability is initially measured at the present value of future Lease payments due to the lessor over the lease term, with the discount rate determined by reference to the rate implicit in the lease and in case it is not determinable, Company''s incremental borrowing rate on commencement of the lease is used. For leases with
reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole.
The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. The Company only include variable lease payments in measurement of the lease liability if they depend on index or rate. Other variable lease payments are charged to statement of profit & loss. The lease liability is subsequently re-measured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made.
The Company recognizes the amount of the re-measurement of lease liability due to reassessment/ modification as an adjustment to the rightof-use asset and statement of profit and loss depending upon the nature of reassessment/modification. However, lease modification is accounted as separate lease if the modification increases the scope of the lease by adding the right to use one or more underlying assets and the consideration for lease increases by an amount commensurate with stand-alone price for the increase in the scope.
The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. They are subsequently measured at cost less accumulated depreciation, accumulated impairment losses, if any and adjusted for any re- measurement of the lease liability.
Right-of-use assets are depreciated on a straight-line basis over the lease term or remaining useful life of the underlying assets as prescribed in IND AS 16 (PPE)/Schedule II of Companies Act 2013, whichever is shorter.
The Company as a Lessor
Leases for which the Company is a lessor is classified as finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as finance lease. All other leases are classified as operating leases.
For operating leases, the rental income/lease payments received are recognized on straight-line basis over the lease term.
For finance leases, finance income is recognized over the lease term based on a pattern reflecting a constant periodic rate of return on the lessorâs net investment in the lease. When the Company is an intermediate lessor it accounts for its interests in the head lease and the sub-lease separately. The Company assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. However, if a head lease is a short term lease, wherein the Company has accounted lease payments on straight line basis, then it classifies the sub-lease as an operating lease.
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
Fair value of financial instruments that are quoted in active markets using the quoted bid prices ( financial assets held ) or quoted ask prices ( financial liabilities held ) and using valuation techniques for other instruments . Valuation techniques include discounted cash flow method and other valuation models.
Financial assetsInitial recognition and measurement
All financial assets are recognised initially at fair value and transaction cost that is attributable to the acquisition of the financial asset is also adjusted..
i. Debt instrument/Tax free bonds at amortised cost - A debt instrument at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method.
ii. Equity instruments - All equity instruments in scope of Ind-AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at fair value through profit and loss (FVTPL). For all other equity instruments, the Company decides to classify the same either as at fair value through other comprehensive income (FVOCI) or fair value through profit and loss (FVTPL).
iii. Mutual Funds - All mutual funds in scope of Ind-AS 109 are measured at amortised cost and the (FVTPL) since they could be readily available for sales with significant change in value of the cash inflows.
De-recognition of financial assets
A financial asset is primarily de-recognised when the rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset.
Financial Liabilities
Initial recognition and measurement
All financial liabilities are recognised initially at fair value and transaction cost that is attributable to the acquisition of the financial liabilities is also adjusted. These liabilities are classified at amortised cost.
Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method. This category generally applies to long-term payables and deposits.
De-recognition of financial liabilities
A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.
Financial guarantee contracts issued by a Company entity are initially measured at their fair values and, if not designated as at FVTPL, are subsequently measured at the higher of:
⢠the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and
⢠the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of Ind AS 18.
20. Impairment of financial asset
In accordance with Ind-AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss for financial assets.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive. When estimating the cash flows, the Company is required to consider -
⢠All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.
⢠Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
As a practical expedient the Company has adopted âsimplified approachâ using the provision matrix method for recognition of expected loss on trade receivables. The provision matrix is based on historical default rate observed over the expected life of the trade receivable and is adjusted for forward-looking estimates. At every reporting date, the historical default rates are updated and changes in the forward-looking estimates are analysed. Further receivables are segmented for this analysis where the credit risk characteristics of the receivables are similar.
Other financial assets
For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly, impairment loss is provided.
Registration fee paid to Ministry of Railways (MOR) for movement of container trains on Indian Railways Network and running of Private Freight Terminals (PFT) is shown as Prepaid Expenditure under ''Current Assets'' and ''Non Current Assets''. The registration fee is amortized over the period covered by the respective agreements with Indian Railways.
22. Significant management judgement in applying accounting policies and estimation uncertainty Significant management Judgements
When preparing the financial statements, management undertakes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses.
The following are significant management judgements in applying the accounting policies of the Company that have the most significant effect on the financial statements.
Recognition of deferred tax assets: The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the Companyâs future taxable income against which the deferred tax assets can be utilised.
Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual result may be substantially different.
Defined benefit obligation: Management estimates of these obligation is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the defined benefit obligation amount and the annual defined benefit expenses.
Provisions: At each balance sheet date based on management judgement, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding warranties and guarantees. However the actual future outcome may be deferent from this judgement.
Grants are recognized when there is a reasonable assurance that the company has complied with the conditions attached to them and it is reasonably certain that the ultimate realization and utilization will be made. Grants which are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the company, with no future related costs are recognized in the statement of profit & loss of the period in which they have accrued.
Grants related to depreciable assets including non-monetary grants (at fair value), are presented in the balance sheet as âDeferred Incomeâ of the period, in which they become receivable. Such grants are usually recognized in the statement of profit & Loss over the periods in the proportions, in which depreciation expense on those assets is recognized.
The grants under âServed from India Scheme (SFIS)â are recognized at the time of utilization of SFIS Scrip towards procurement of assets and inventories. Such assets/inventories have been capitalized with a gross value from transaction date based on deemed cost exemption availed by the Company.
The grants under âService Export from India Scheme (SEIS)â are recognized when the conditions attached with the grant have been satisfied and there is reasonable assurance that the grants will be received. These are recognized in the period in which the right to receive the same is established i.e. the year during which the services eligible for grant of SEIS have been performed.
The Companyâs segmental reporting is in accordance with Ind AS 108 Operating Segments. Operating segments are reported in a manner consistent with the internal reporting provided to the board of directors, which is responsible for allocating resources and assessing performance of the operating segments, and has been identified as the chief operating decision maker.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.
All other borrowing costs are recognized in profit or loss in the period in which they are incurred.
Mar 31, 2022
1. CORPORATE INFORMATION
Container Corporation of India Limited (CONCOR), was incorporated on 10 March 1988 under the Companies Act with registration number 030915, and commenced its operation from November 1989 taking over the existing network of 7 ICDs from the Indian Railways. The shares of the Company are listed on two stock exchanges in India i.e. National Stock Exchange of India Limited (NSE) and BSE Limited (BSE).
From its humble beginning, it is now an undisputed market leader having the largest network of 61 ICDs/CFSs/Strategic Tie-ups in India. In addition to providing inland transport by rail for containers, it has also expanded to cover management of Ports, air cargo complexes and establishing cold-chain. It has and will continue to play the role of promoting containerization of India by virtue of its modern rail wagon fleet, customer friendly commercial practices and extensively used Information Technology. The company developed multimodal logistics support for Indiaâs International and Domestic containerization and trade. Though rail is the main stay of our transportation plan, road transportation is and also provided to cater the need of door-to-door services both in the International and Domestic business segment.
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind ASsâ) notified by the Central Government under section 133 of the Indian Companies Act, 2013 as Companies (Indian Accounting Standards) Rules, 2015 and as amended from time to time.
The financial statements have been prepared on the historical cost basis except financial instruments that are measured at revalued amounts or fair values at the end of each reporting period. In estimating the fair value of an asset or a liability, the company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in the financial statements is determined on such a basis, except for leasing transactions that are within the scope of IND AS 116 and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.
Ministry of Corporate Affairs (âMCAâ) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1st,
2022, as below:
Ind AS 103 - Business Combinations
Reference to Conceptual Framework: The amendment specifies that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its financial statements.
Ind AS 16 -Property, Plant and Equipment
(i) Costs of testing: The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognised in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2022. The Company has evaluated the amendment and there is no impact on its consolidated financial statements.
(ii) Proceeds before intended use: The amendment mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related cost in profit or loss. The Company does not expect the amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.
Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets
Onerous Contracts - Costs of Fulfilling a Contract: The amendment specify that the âcost of fulfillingâ a contract comprises the âcosts that relate directly to the contractâ. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.
Ind AS 109 - Financial Instruments
Annual Improvements to Ind AS (2021): The amendment clarifies which fees an entity includes when it applies the â10 percentâ test of Ind AS 109 in assessing whether to derecognise a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements.
5. Property, plant and equipment:
(i) Property, plant and equipment is stated at cost, less accumulated depreciation and accumulated impairment losses. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into the location and condition necessary for it to be capable of operating in the manner intended by management, the initial estimate of any decommissioning obligation, if any, and, for assets that necessarily take a substantial period of time to get ready for their intended use, finance costs. Cost includes net of interest on capital advances and is inclusive of freight, duties, taxes and other incidental expenses. In respect of assets due for capitalization, where final bills/claims are to be received/passed, the capitalisation is based on the engineering estimates. Final adjustments, for costs and depreciation are made retrospectively in the year of ascertainment of actual cost and finalisation of claim. Items such as spare parts, stand-by equipment and servicing equipment are recognised in accordance with this Ind AS 16 when they meet the definition of property, plant and equipment.
(ii) Capital work in progress includes the cost of fixed assets that are not yet ready for their intended use and the cost of assets not put to use before the Balance Sheet date.
The expenditure incurred on survey, evaluation & investigation of projects, is booked under Capital Work-in Progress. However, at any stage, if management decides to abandon a project the expenditure incurred thereon is charged to the Statement of Profit & Loss at that stage.
(iii) Provision for stamp duty at the prevailing rate is made by the company at the time of capitalization of the amount paid for acquisition of land & is capitalised as part of the cost of Land.
Depreciation/Amortization:
(iv) Fixed assets are depreciated over its useful life and in the manner prescribed in Schedule II to the Companies Act 2013, other than as prescribed below:
⢠Assets constructed on leasehold land, other than perpetual leases are depreciated over the period of lease or useful life of such assets, as prescribed under Schedule II of Companies Act 2013, whichever is less.
In respect of assets whose useful lives has been revised, the unamortised depreciable amount is charged over the revised remaining useful lives of the assets.
(v) Capital expenditure on enabling assets, like roads, culverts & electricity transmissions etc., the ownership of which is not with the Company are charged off to revenue in the accounting period of incurrence of such expenditure. However, capital expenditure on enabling assets, ownership of which rests with the company and which have been created on land not belonging to the Company is written off to the Statement of Profit & Loss over its approximate period of utility or over a period of 5 years, whichever is less. For this purpose, land is not considered to be belonging to the company, if the same is not owned or leased/licensed to the company.
(vi) An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
(vii) Non-current assets (or disposal groups) are classified as assets held for sale when a sale is considered highly probable and their carrying amount is to be recovered principally through a sale transaction rather than through continuing use. Non-current asset (or disposal groups) classified as held for sale are stated at the lower of carrying amount and fair value less costs to sell. Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.
Expenditure on computer software, which is not an integral part of hardware, is capitalised as an intangible asset. The cost of software includes license fee and implementation cost and is capitalised in the year of its implementation. Software is amortized over five years being management''s estimate of life of assets over which economic benefits will be derived. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
7. Impairment of Non-financial Assets:
At the end of each reporting period, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest Component of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.
Stores and spare parts are valued at cost on weighted average basis or Net Realizable Value (NRV) whichever is lower. Provision for obsolescence is made, whenever required.
(i) Liability for gratuity, leave salary and post retirement medical benefits payable to employees is provided for on accrual basis using the Projected Accrued Benefit Method (Projected Unit Credit Method with control period of one year) done by an independent actuary as at the Balance Sheet date. Contributions are made to approved gratuity fund created in a separate trust set up by the company for this purpose.
Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest), is reflected immediately in the balance sheet with
a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorized as follows:
⢠service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);
⢠net interest expense or income; and
⢠remeasurement.
The Company presents the first two components of defined benefit costs in profit or loss in the line item [employee benefits expenses]. Curtailment gains and losses are accounted for as past service costs.
The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the companyâs defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.
Termination benefits are immediately recognised in the statement of profit or loss account. A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.
(ii) Contribution to defined contribution plans such as Provident Fund, Pension Fund and Family Pension Fund are charged to the Statement of Profit & Loss as and when accrued.
(iii) The undiscounted amount of short term employee benefits expected to be paid for the services rendered are recognized as an expense during the period when the employees render the services.
10. Foreign Currency Transactions:
Functional currency: The functional currency of the Company is the Indian Rupee. These financial statements are presented in Indian Rupees.
(i) Income, Expenditure & Assets denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.
(ii) Loans, Current liabilities and Current assets in foreign currencies are translated at the exchange rate prevailing at the end of financial year.
(iii) Gains or losses due to foreign exchange fluctuations are recognised in the Statement of Profit & Loss.
(iv) Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are not translated.
(v) The date of transaction (which includes receipt or payment of advance consideration in a foreign currency) for the purpose of determining the exchange rate, is the date of initial recognition of the non monetary asset or non monetary liability. If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt.
1. Basic principal for Revenue Recognition
i. Revenue is recognized on satisfaction of each performance obligation (distinct services) as per the terms of the contract.
ii. Performance obligations are treated as distinct obligation:
a) When it is identifiable separately from other obligations in the contract;
b) Its progress can be measured separately;
c) Transaction price to the performance obligation can be allocated;
d) The customer will not be required to re-perform the services already performed in case it decides to terminate the contract at that stage;
e) There will not be any impairment in the value of services already performed; and
f) The customer can get the rest of the performance without intervention of CONCOR.
iii. Satisfaction of performance obligation: Container movement between two destinations is considered distinct performance obligation under each contract and the contract is treated as ''over the period contract''.
iv. Transaction price for each primary obligation is fixed at the time of entering into contract. Rates at which incidental services are charged are also known at the time of entering into contract. Therefore "output method" of revenue recognition is applied.
v. Volume discount scheme (VDS) is in the nature of variable consideration. Since, VDS is not universally applicable to all contracts, fair estimate is made of such consideration payable in specific cases and is deducted from Gross Revenue to reflect revenue net of variable consideration on the reporting date.
2. Rail Freight Income: Rail freight income and charges for incidental services and related expenses are accounted for on satisfaction of performance obligation i.e., transportation of container to the destination terminal/port/customer''s premises (in case of chassis delivery) after providing all incidental services required in the course of primary obligation of transportation like loading & unloading etc. to make the container/cargo ready for delivery.
3. Road Freight Income: Road freight income and charges for incidental services and related expenses are accounted for on satisfaction of performance obligation i.e., transportation of container to the destination terminal/port/customer''s premises after providing all incidental services required in the course of primary obligation of transportation like loading & unloading etc. to make the container/cargo ready for delivery.
However, in case of door to door delivery via rail movement, road freight income and charges for incidental services are accounted for on arrival of container at the originating CONCOR Terminal from customer premises.
4. Warehousing Income:
a) Warehousing Charges in domestic segment are recognized on accrual basis.
b) Warehousing Charges in EXIM segment are recognized at the time of release of cargo to the
customer.
5. Terminal service charges:
a) Terminal Service Charges (TSC) on empty containers and loaded domestic containers are recognized on accrual basis.
b) Terminal Service Charges (TSC) on EXIM loaded containers are recognized at the time of release of containers.
6. Dividend income is recognized when the company''s right to receive the dividend is established.
7. Interest income from deposits is recognized on accrual basis.
8. Interest on income tax refunds are accounted for on the finalization of assessments.
12. Claims/Counter-claims/Penalties/Awards:
Claims/counter-claims/penalties/awards are accounted for in the year of its settlement.
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from âprofit before taxâ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Companyâs current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax base used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.
14. Investment in equity instrument of consolidated entities
The Companyâs investment in equity instruments of subsidiaries and joint ventures are accounted for at cost.
15. Provisions, Contingent Liabilities & Contingent Assets:
a. Provisions
Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
b. Onerous contracts
Onerous Contracts: A contract is considered as onerous when the expected economic benefits to be derived by the company from the contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision for an onerous contract is measured at the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the company recognises any impairment loss on the assets associated with that contract.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
Contingent assets are not recognized in the financial statements. However, they are disclosed when the possible right to receive exists.
Basic earnings per share (âEPSâ) is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of shares outstanding during the year.
Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the period except where the result would be anti-dilutive.
In the cash flow statement cash and cash equivalents include cash in hand, demand deposits with banks, other short term highly liquid investments with original maturities of three months or less. that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.
The Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand -alone price of the lease component and the aggregate stand-alone price of the non-lease components.
The Company as a Lessee
At the date of the commencement of the lease, the Company recognizes a right-of-use assets (âROUâ) and a corresponding lease liability for all the lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short term leases) and low value leases, the Company recognizes the lease payments as an expense on a straight-line basis over the term of the lease.
In determining the lease term, Company considers the Option to extend/terminate the lease, wherever it is reasonably certain to exercise such option.
Lease liability is initially measured at the present value of future Lease payments due to the lessor over the lease term, with the discount rate determined by reference to the rate implicit in the lease and in case it is not determinable, Company''s incremental borrowing rate on commencement of the lease is used. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole.
The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. The Company only include variable lease payments in measurement of the lease liability if they depend on index or rate. Other variable lease payments are charged to statement of profit & loss. The lease liability is subsequently re-measured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made.
The Company recognizes the amount of the re-measurement of lease liability due to reassessment/ modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of reassessment/modification. However, lease modification is accounted as separate lease if the modification increases the scope of the lease by adding the right to use one or more underlying assets and the consideration for lease increases by an amount commensurate with stand-alone price for the increase in the scope.
The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. They are subsequently measured at cost less accumulated depreciation, accumulated impairment losses, if any and adjusted for any re- measurement of the lease liability.
Right-of-use assets are depreciated on a straight-line basis over the lease term or remaining useful life of the underlying assets as prescribed in IND AS 16 (PPE)/Schedule II of Companies Act 2013, whichever is shorter.
The Company as a Lessor
Leases for which the Company is a lessor is classified as finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as finance lease. All other leases are classified as operating leases.
For operating leases, the rental income/lease payments received are recognized on straight-line basis over the lease term.
For finance leases, finance income is recognized over the lease term based on a pattern reflecting a constant periodic rate of return on the lessorâs net investment in the lease. When the Company is an intermediate lessor it accounts for its interests in the head lease and the sub-lease separately. The Company assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. However, if a head lease is a short term lease, wherein the Company has accounted lease payments on straight line basis, then it classifies the sub-lease as an operating lease.
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
Fair value of financial instruments that are quoted in active markets using the quoted bid prices (financial assets held) or quoted ask prices (financial liabilities held) and using valuation techniques for other instruments. Valuation techniques include discounted cash flow method and other valuation models.
Financial assetsInitial recognition and measurement
All financial assets are recognised initially at fair value and transaction cost that is attributable to the acquisition of the financial asset is also adjusted.
i. Debt instrument/Tax free bonds at amortised cost - A debt instrument at the amortised cost if both the following conditions are met:
a. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b. Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method.
ii. Equity instruments - All equity instruments in scope of Ind-AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at fair value through profit and loss (FVTPL). For all other equity instruments, the Company decides to classify the same either as at fair value through other comprehensive income (FVOCI) or fair value through profit and loss (FVTPL).
iii. Mutual Funds - All mutual funds in scope of Ind-AS 109 are measured at amortised cost and the (FVTPL) since they could be readily available for sales with significant change in value of the cash inflows.
De-recognition of financial assets
A financial asset is primarily de-recognised when the rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset.
Initial recognition and measurement
All financial liabilities are recognised initially at fair value and transaction cost that is attributable to the acquisition of the financial liabilities is also adjusted. These liabilities are classified at amortised cost.
Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method. This category generally applies to long-term payables and deposits.
De-recognition of financial liabilities
A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.
Financial guarantee contracts issued by a Company entity are initially measured at their fair values and, if not designated as at FVTPL, are subsequently measured at the higher of:
⢠the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and
⢠the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of Ind AS 18.
20. Impairment of financial asset
In accordance with Ind-AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss for financial assets.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive. When estimating the cash flows, the Company is required to consider -
⢠All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.
⢠Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
As a practical expedient the Company has adopted âsimplified approachâ using the provision matrix method for recognition of expected loss on trade receivables. The provision matrix is based on historical default rate observed over the expected life of the trade receivable and is adjusted for forward-looking estimates. At every reporting date, the historical default rates are updated and changes in the forward-looking estimates are analysed. Further receivables are segmented for this analysis where the credit risk characteristics of the receivables are similar.
For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly, impairment loss is provided.
Registration fee paid to Ministry of Railways (MOR) for movement of container trains on Indian Railways Network and running of Private Freight Terminals (PFT) is shown as Prepaid Expenditure under ''Current Assets'' and ''Non Current Assets''. The registration fee is amortized over the period covered by the respective agreements with Indian Railways.
22. Significant management judgement in applying accounting policies and estimation uncertainty Significant management Judgements
When preparing the financial statements, management undertakes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses. The following are significant management judgements in applying the accounting policies of the Company that have the most significant effect on the financial statements.
Recognition of deferred tax assets: The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the Companyâs future taxable income against which the deferred tax assets can be utilised.
Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual result may be substantially different.
Defined benefit obligation: Management estimates of these obligation is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and
anticipation of future salary increases. Variation in these assumptions may significantly impact the defined benefit obligation amount and the annual defined benefit expenses.
Provisions: At each balance sheet date based on management judgement, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding warranties and guarantees. However the actual future outcome may be deferent from this judgement.
Grants are recognized when there is a reasonable assurance that the company has complied with the conditions attached to them and it is reasonably certain that the ultimate realization and utilization will be made. Grants which are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the company, with no future related costs are recognized in the statement of profit & loss of the period in which they have accrued.
Grants related to depreciable assets including non-monetary grants (at fair value), are presented in the balance sheet as âDeferred Incomeâ of the period, in which they become receivable. Such grants are usually recognized in the statement of profit & Loss over the periods in the proportions, in which depreciation expense on those assets is recognized.
The grants under âServed from India Scheme (SFIS)â are recognized at the time of utilization of SFIS Scrip towards procurement of assets and inventories. Such assets/inventories have been capitalized with a gross value from transaction date based on deemed cost exemption availed by the Company.
The grants under âService Export from India Scheme (SEIS)â are recognized when the conditions attached with the grant have been satisfied and there is reasonable assurance that the grants will be received. These are recognized in the period in which the right to receive the same is established i.e. the year during which the services eligible for grant of SEIS have been performed.
The Companyâs segmental reporting is in accordance with Ind AS 108 Operating Segments. Operating segments are reported in a manner consistent with the internal reporting provided to the board of directors, which is responsible for allocating resources and assessing performance of the operating segments, and has been identified as the chief operating decision maker.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.
All other borrowing costs are recognized in profit or loss in the period in which they are incurred.
Mar 31, 2021
1. CORPORATE INFORMATION
Container Corporation of India Limited (CONCOR), was incorporated on 10 March 1988 under the Companies Act with registration number 030915, and commenced its operation from November 1989 taking over the existing network of 7 ICDs from the Indian Railways. The shares of the Company are listed on two stock exchanges in India i.e. National Stock Exchange of India Limited (NSE) and BSE Limited (BSE).
From its humble beginning, it is now an undisputed market leader having the largest network of 60 ICDs/CFSs/Strategic Tie-ups in India. In addition to providing inland transport by rail for containers, it has also expanded to cover management of Ports, air cargo complexes and establishing cold-chain. It has and will continue to play the role of promoting containerization of India by virtue of its modern rail wagon fleet, customer friendly commercial practices and extensively used Information Technology. The company developed multimodal logistics support for Indiaâs International and Domestic containerization and trade. Though rail is the main stay of our transportation plan, road transportation is and also provided to cater the need of door-to-door services both in the International and Domestic business segment.
2. Application of New or Revised Ind AS
Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards. There is no such notification which would have been applicable from April 1, 2021.
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind ASsâ) notified by the Central Government under section 133 of the Indian Companies Act, 2013 as Companies (Indian Accounting Standards) Rules, 2015 and as amended from time to time.
The financial statements have been prepared on the historical cost basis except financial instruments that are measured at revalued amounts or fair values at the end of each reporting period. In estimating the fair value of an asset or a liability, the company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in the financial statements is determined on such a basis, except for leasing transactions that are within the scope of IND AS 116 and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.
5. Property, plant and equipment:
(i) Property, plant and equipment is stated at cost, less accumulated depreciation and accumulated impairment losses. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into the location and condition necessary for it to be capable of operating in the manner intended by management, the initial estimate of any decommissioning obligation, if any, and, for assets that necessarily take a substantial period of time to get ready for their intended use, finance costs. Cost includes net of interest on capital advances and is inclusive of freight, duties, taxes and other incidental expenses. In respect of assets due for capitalization, where final bills/claims are to be received/passed, the capitalisation is based on the engineering estimates. Final adjustments, for costs and depreciation are made retrospectively in the year of ascertainment of actual cost and finalisation of claim. Items such as spare parts, stand-by equipment and servicing equipment are recognised in accordance with this Ind AS 16 when they meet the definition of property, plant and equipment.
(ii) Capital work in progress includes the cost of fixed assets that are not yet ready for their intended use and the cost of assets not put to use before the Balance Sheet date.
The expenditure incurred on survey, evaluation & investigation of projects, is booked under Capital Work-in Progress. However, at any stage, if management decides to abandon a project the expenditure incurred thereon is charged to the Statement of Profit & Loss at that stage.
(iii) Provision for stamp duty at the prevailing rate is made by the company at the time of capitalization of the amount paid for acquisition of land & is capitalised as part of the cost of Land.
Depreciation/Amortization:
(iv) Fixed assets are depreciated over its useful life and in the manner prescribed in Schedule II to the Companies Act 2013, other than as prescribed below:
⢠Assets constructed on leasehold land, other than perpetual leases are depreciated over the period of lease or useful life of such assets, as prescribed under Schedule II of Companies Act 2013, whichever is less.
In respect of assets whose useful lives has been revised, the unamortised depreciable amount is charged over the revised remaining useful lives of the assets.
(v) Capital expenditure on enabling assets, like roads, culverts & electricity transmissions etc., the ownership of which is not with the Company are charged off to revenue in the accounting period of incurrence of such expenditure. However, capital expenditure on enabling assets, ownership of which rests with the company and which have been created on land not belonging to the Company is written off to the Statement of Profit & Loss over its approximate period of utility or over a period of 5 years, whichever is less. For this purpose, land is not considered to be belonging to the company, if the same is not owned or leased/licensed to the company.
(vi) An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
(vii) Non-current assets (or disposal groups) are classified as assets held for sale when a sale is considered highly probable and their carrying amount is to be recovered principally through a sale transaction rather than through continuing use. Non-current asset (or disposal groups) classified as held for sale are stated at the lower of carrying amount and fair value less costs to sell. Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.
Expenditure on computer software, which is not an integral part of hardware, is capitalised as an intangible asset. The cost of software includes license fee and implementation cost and is capitalised in the year of its implementation. Software is amortized over five years being management''s estimate of life of assets over which economic benefits will be derived. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
7. Impairment of Non-financial Assets:
At the end of each reporting period, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest Component of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.
Stores and spare parts are valued at cost on weighted average basis or Net Realizable Value (NRV) whichever is lower. Provision for obsolescence is made, whenever required.
(i) Liability for gratuity, leave salary and post retirement medical benefits payable to employees is provided for on accrual basis using the Projected Accrued Benefit Method (Projected Unit Credit Method with control period of one year) done by an independent actuary as at the Balance Sheet date. Contributions are made to approved gratuity fund created in a separate trust set up by the company for this purpose.
Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorized as follows:
⢠service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);
⢠net interest expense or income; and
⢠remeasurement.
The Company presents the first two components of defined benefit costs in profit or loss in the line item [employee benefits expenses]. Curtailment gains and losses are accounted for as past service costs.
The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the companyâs defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.
Termination benefits are immediately recognised in the statement of profit or loss account .A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.
(ii) Contribution to defined contribution plans such as Provident Fund, Pension Fund and Family Pension Fund are charged to the Statement of Profit & Loss as and when accrued.
(iii) The undiscounted amount of short term employee benefits expected to be paid for the services rendered are recognized as an expense during the period when the employees render the services.
10. Foreign Currency Transactions:
Functional currency: The functional currency of the Company is the Indian Rupee. These financial statements are presented in Indian Rupees.
(i) Income, Expenditure & Assets denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.
(ii) Loans, Current liabilities and Current assets in foreign currencies are translated at the exchange rate prevailing at the end of financial year.
(iii) Gains or losses due to foreign exchange fluctuations are recognised in the Statement of Profit & Loss.
(iv) Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are not translated.
(v) The date of transaction (which includes receipt or payment of advance consideration in a foreign currency) for the purpose of determining the exchange rate, is the date of initial recognition of the non monetary asset or non monetary liability. If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt.
1. Basic principal for Revenue Recognition
i. Revenue is recognized on satisfaction of each performance obligation (distinct services) as per the terms of the contract.
ii. Performance obligations are treated as distinct obligation:
a) When it is identifiable separately from other obligations in the contract;
b) Its progress can be measured separately;
c) Transaction price to the performance obligation can be allocated;
d) The customer will not be required to re-perform the services already performed in case it decides to terminate the contract at that stage;
e) There will not be any impairment in the value of services already performed; and
f) The customer can get the rest of the performance without intervention of CONCOR.
iii. Satisfaction of performance obligation: Container movement between two destinations is considered distinct performance obligation under each contract and the contract is treated as ''over the period contract''.
iv. Transaction price for each primary obligation is fixed at the time of entering into contract. Rates at which incidental services are charged are also known at the time of entering into contract. Therefore "output method" of revenue recognition is applied.
v. Volume discount scheme (VDS) is in the nature of variable consideration. Since, VDS is not universally applicable to all contracts, fair estimate is made of such consideration payable in specific cases and is deducted from Gross Revenue to reflect revenue net of variable consideration on the reporting date.
2. Rail Freight Income: Rail freight income and charges for incidental services and related expenses are accounted for on satisfaction of performance obligation i.e., transportation of container to the destination terminal/port/customer''s premises (in case of chassis delivery) after providing all incidental services required in the course of primary obligation of transportation like loading & unloading etc. to make the container/cargo ready for delivery.
3. Road Freight Income: Road freight income and charges for incidental services and related expenses are accounted for on satisfaction of performance obligation i.e., transportation of container to the destination terminal/port/customer''s premises after providing all incidental services required in the course of primary obligation of transportation like loading & unloading etc. to make the container/cargo ready for delivery.
However, in case of door to door delivery via rail movement, road freight income and charges for incidental services are accounted for on arrival of container at the originating CONCOR Terminal from customer premises.
4. Warehousing Income:
a) Warehousing Charges in domestic segment are recognized on accrual basis.
b) Warehousing Charges in EXIM segment are recognized at the time of release of cargo to the
customer.
5. Terminal service charges:
a) Terminal Service Charges (TSC) on empty containers and loaded domestic containers are recognized on accrual basis.
b) Terminal Service Charges (TSC) on EXIM loaded containers are recognized at the time of release of containers.
6. Dividend income is recognized when the company''s right to receive the dividend is established.
7. Interest income from deposits is recognized on accrual basis.
8. Interest on income tax refunds are accounted for on the finalization of assessments.
12. Claims/Counter-claims/Penalties/Awards:
Claims/counter-claims/penalties/awards are accounted for in the year of its settlement.
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from âprofit before taxâ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Companyâs current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax base used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.
14. Investment in equity instrument of consolidated entities
The Companyâs investment in equity instruments of subsidiaries and joint ventures are accounted for at cost.
15. Provisions, Contingent Liabilities & Contingent Assets:a. Provisions
Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation..
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
Onerous Contracts: A contract is considered as onerous when the expected economic benefits to be derived by the company from the contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision for an onerous contract is measured at the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the company recognises any impairment loss on the assets associated with that contract.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
Contingent assets are not recognized in the financial statements. However they are disclosed when the possible right to receive exists.
Basic earnings per share (âEPSâ) is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of shares outstanding during the year.
Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the period except where the result would be anti-dilutive.
In the cash flow statement cash and cash equivalents include cash in hand, demand deposits with banks, other short term highly liquid investments with original maturities of three months or less. that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.
The Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand -alone price of the lease component and the aggregate stand-alone price of the non-lease components.
The Company as a Lessee
At the date of the commencement of the lease, the Company recognizes a right-of-use assets (âROUâ) and a corresponding lease liability for all the lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short term leases) and low value leases, the Company recognizes the lease payments as an expense on a straight-line basis over the term of the lease.
In determining the lease term, Company considers the Option to extend/terminate the lease, wherever it is reasonably certain to exercise such option.
Lease liability is initially measured at the present value of future Lease payments due to the lessor over the lease term, with the discount rate determined by reference to the rate implicit in the lease and in case it is not determinable, Company''s incremental borrowing rate on commencement of the lease is used. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole.
The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. The Company only include variable lease payments in measurement of the lease liability if they depend on index or rate. Other variable lease payments are charged to statement of profit & loss.The lease liability is subsequently re-measured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made.
The Company recognizes the amount of the re-measurement of lease liability due to reassessment/ modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of reassessment/modification. However, lease modification is accounted as separate lease if the modification increases the scope of the lease by adding the right to use one or more underlying assets and the consideration for lease increases by an amount commensurate with stand-alone price for the increase in the scope.
The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. They are subsequently measured at cost less accumulated depreciation, accumulated impairment losses, if any and adjusted for any re- measurement of the lease liability.
Right-of-use assets are depreciated on a straight-line basis over the lease term or remaining useful life of the underlying assets as prescribed in IND AS 16 (PPE)/Schedule II of Companies Act 2013, whichever is shorter.
The Company as a Lessor
Leases for which the Company is a lessor is classified as finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as finance lease. All other leases are classified as operating leases.
For operating leases, the rental income/lease payments received are recognized on straight-line basis over the lease term.
For finance leases, finance income is recognized over the lease term based on a pattern reflecting a constant periodic rate of return on the lessorâs net investment in the lease. When the Company is an intermediate lessor
it accounts for its interests in the head lease and the sub-lease separately. The Company assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. However, if a head lease is a short term lease, wherein the Company has accounted lease payments on straight line basis, then it classifies the sub-lease as an operating lease.
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
Fair value of financial instruments that are quoted in active markets using the quoted bid prices (financial assets held) or quoted ask prices ( financial liabilities held ) and using valuation techniques for other instruments . Valuation techniques include discounted cash flow method and other valuation models.
Financial assetsInitial recognition and measurement
All financial assets are recognised initially at fair value and transaction cost that is attributable to the acquisition of the financial asset is also adjusted.
i. Debt instrument/Tax free bonds at amortised cost - A debt instrument at the amortised cost if both the following conditions are met:
a. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b. Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method.
ii. Equity instruments - All equity instruments in scope of Ind-AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at fair value through profit and loss (FVTPL). For all other equity instruments, the Company decides to classify the same either as at fair value through other comprehensive income (FVOCI) or fair value through profit and loss (FVTPL).
iii. Mutual Funds - All mutual funds in scope of Ind-AS 109 are measured at amortised cost and the (FVTPL) since they could be readily available for sales with significant change in value of the cash inflows.
De-recognition of financial assets
A financial asset is primarily de-recognised when the rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset.
Initial recognition and measurement
All financial liabilities are recognised initially at fair value and transaction cost that is attributable to the acquisition of the financial liabilities is also adjusted. These liabilities are classified at amortised cost.
Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method. This category generally applies to long-term payables and deposits.
De-recognition of financial liabilities
A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.
Financial guarantee contracts issued by a Company entity are initially measured at their fair values and, if not designated as at FVTPL, are subsequently measured at the higher of:
⢠the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and
⢠the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of Ind AS 18.
20. Impairment of financial asset
In accordance with Ind-AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss for financial assets.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive. When estimating the cash flows, the Company is required to consider -
⢠All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.
⢠Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
As a practical expedient the Company has adopted âsimplified approachâ using the provision matrix method for recognition of expected loss on trade receivables. The provision matrix is based on historical default rate observed over the expected life of the trade receivable and is adjusted for forward-looking estimates. At every reporting date, the historical default rates are updated and changes in the forward-looking estimates are analysed. Further receivables are segmented for this analysis where the credit risk characteristics of the receivables are similar.
For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly, impairment loss is provided.
Registration fee paid to Ministry of Railways (MOR) for movement of container trains on Indian Railways Network and running of Private Freight Terminals (PFT) is shown as Prepaid Expenditure under ''Current Assets'' and ''Non Current Assets''. The registration fee is amortized over the period covered by the respective agreements with Indian Railways.
22. Significant management judgement in applying accounting policies and estimation uncertainty Significant management Judgements
When preparing the financial statements, management undertakes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses.The following are significant management judgements in applying the accounting policies of the Company that have the most significant effect on the financial statements.
Recognition of deferred tax assets: The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the Companyâs future taxable income against which the deferred tax assets can be utilised.
Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual result may be substantially different.
Defined benefit obligation: Management estimates of these obligation is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the defined benefit obligation amount and the annual defined benefit expenses.
Provisions: At each balance sheet date based on management judgement, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding warranties and guarantees. However the actual future outcome may be deferent from this judgement.
Grants are recognized when there is a reasonable assurance that the company has complied with the conditions attached to them and it is reasonably certain that the ultimate realization and utilization will be made. Grants which are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the company, with no future related costs are recognized in the statement of profit & loss of the period in which they have accrued.
Grants related to depreciable assets including non-monetary grants (at fair value), are presented in the balance sheet as âDeferred Incomeâ of the period, in which they become receivable. Such grants are usually recognized in the statement of profit & Loss over the periods in the proportions, in which depreciation expense on those assets is recognized.
The grants under âServed from India Scheme (SFIS)â are recognized at the time of utilization of SFIS Scrip towards procurement of assets and inventories. Such assets/inventories have been capitalized with a gross value from transaction date based on deemed cost exemption availed by the Company.
The grants under âService Export from India Scheme (SEIS)â are recognized when the conditions attached with the grant have been satisfied and there is reasonable assurance that the grants will be received. These are recognized in the period in which the right to receive the same is established i.e. the year during which the services eligible for grant of SEIS have been performed.
The Companyâs segmental reporting is in accordance with Ind AS 108 Operating Segments. Operating segments are reported in a manner consistent with the internal reporting provided to the board of directors, which is responsible for allocating resources and assessing performance of the operating segments, and has been identified as the chief operating decision maker.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.
All other borrowing costs are recognized in profit or loss in the period in which they are incurred.
Mar 31, 2018
1. CORPORATE INFORMATION
Container Corporation of India Limited (CONCOR), was incorporated on 10 March 1988 under the Companies Act with registration number 030915, and commenced its operation from November 1989 taking over the existing network of 7 ICDs from the Indian Railways. The shares of the Company are listed on two stock exchanges in India i.e. National Stock Exchange of India Limited (NSE) and BSE Limited (BSE).
From its humble beginning, it is now an undisputed market leader having the largest network of 79 ICDs/CFSs in India. In addition to providing inland transport by rail for containers, it has also expanded to cover management of Ports, air cargo complexes and establishing cold-chain. It has and will continue to play the role of promoting containerization of India by virtue of its modern rail wagon fleet, customer friendly commercial practices and extensively used Information Technology. The company developed multimodal logistics support for Indiaâs International and Domestic containerization and trade. Though rail is the main stay of our transportation plan, road transportation is and also provided to cater the need of door-to-door services both in the International and Domestic business segment.
2. Application of New or Revised Ind AS
At the date of preparation of these financial statements, there was a new Ind AS as well as an amendment to an existing Ind AS notified by the Ministry of Corporate Affairs (MCA). The impact of new Ind AS and amendment to the existing Ind AS on the Company has been summarised as follows:
Recent Indian Accounting Standards (Ind AS):
Standard and Amendment to an existing Standard issued but not yet effective
The Ministry of Corporate Affairs through Companies (Indian Accounting Standards) (Amendments) Rules, 2018, has notified the following new Ind AS and amendment to the existing IND AS, which the Company has not applied as they are effective for annual periods beginning on or after April 1,2018:
Ind AS 115 (New Standard) Revenue from Contracts with Customers
Ind AS 21 (Amendment) The effect of changes in foreign Exchange rates
Ind AS 115- Revenue from Contracts with Customers
Ind AS 115 establishes a single comprehensive model or entities to use in accounting for revenue arising from contracts with customers. Ind AS 115 will supersede the current revenue recognition standard Ind AS 18 Revenue, Ind AS 11 Construction contracts when it becomes effective.
The core principle of Ind AS 115 is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, the standard introduces a 5-step approach to revenue recognition:
- Step 1: Identify the contract(s) with a customer
- Step 2: Identify the performance obligation in contract
- Step 3: Determine the transaction price
- Step 4: Allocate the transaction price to the performance obligation in the contract
- Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation
Under Ind AS 115, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e. when âcontrolâ of the goods or services underlying the particular performance obligation is transferred to the customer.
The company is evaluating the requirements of such IND AS and its effect on the financial statements is being evaluated.
IND AS 21- The effect of changes in Foreign Exchange rates
The amendment clarifies on the accounting of transactions that include the receipt or payment of advance consideration in a foreign currency. The appendix explains that the date of the transaction, for the purpose of determining the exchange rate, is the date of initial recognition of the non monetary prepayment asset or deferred income liability. If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt.
The company is evaluating the requirements of such amendment to IND AS and its effect on the financial statements is being evaluated.
3. Statement of compliance
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind ASsâ) notified by the Central Government under section 133 of the Indian Companies Act, 2013 as Companies (Indian Accounting Standards) Rules, 2015 and as amended from time to time.
4. Basis of preparation
The financial statements have been prepared on the historical cost basis except financial instruments that are measured at revalued amounts or fair values at the end of each reporting period. In estimating the fair value of an asset or a liability, the company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in the financial statements is determined on such a basis, except for leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.
5. Property, plant and equipment:
(i) Property, plant and equipment is stated at cost, less accumulated depreciation and accumulated impairment losses. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into the location and condition necessary for it to be capable of operating in the manner intended by management, the initial estimate of any decommissioning obligation, if any, and, for assets that necessarily take a substantial period of time to get ready for their intended use, finance costs. Cost includes net of interest on capital advances and is inclusive of freight, duties, taxes and other incidental expenses. In respect of assets due for capitalization, where final bills/claims are to be received/passed, the capitalisation is based on the engineering estimates. Final adjustments, for costs and depreciation are made retrospectively in the year of ascertainment of actual cost and finalisation of claim. Items such as spare parts, stand-by equipment and servicing equipment are recognised in accordance with this Ind AS 16 when they meet the definition of property, plant and equipment.
(ii) Capital work in progress includes the cost of fixed assets that are not yet ready for their intended use and the cost of assets not put to use before the Balance Sheet date.
(iii) Provision for stamp duty at the prevailing rate is made by the company at the time of capitalization of the amount paid for acquisition of land & is capitalised as part of the cost of Land.
Depreciation/Amortization:
(iv) Fixed assets are depreciated over its useful life and in the manner prescribed in Schedule II to the Companies Act 2013, other than as prescribed below:
- Assets constructed on leasehold land, other than perpetual leases, and assets classified as finance leases are depreciated over the period of lease or useful life of such assets, as prescribed under Schedule II of Companies Act 2013, whichever is less.
- Land leases where the lease term is for the significant economic life of the asset are considered as finance leases. Such leases are included in property plant and equipment and are depreciated over the lease period. Freehold land or perpetual land leases are not depreciated. Land leases where the lease term is not for the significant economic life of land are considered as operating leases and are classified as prepayments. Such leases are amortized over the lease terms
In respect of assets whose useful lives has been revised, the unamortised depreciable amount is charged over the revised remaining useful lives of the assets.
(v) Capital expenditure on enabling assets, like roads, culverts & electricity transmissions etc., the ownership of which is not with the Company are charged off to revenue in the accounting period of incurrence of such expenditure. However, capital expenditure on enabling assets, ownership of which rests with the company and which have been created on land not belonging to the Company is written off to the Statement of Profit & Loss over its approximate period of utility or over a period of 5 years, whichever is less. For this purpose, land is not considered to be belonging to the company, if the same is not owned or leased/licensed to the company.
(vi) An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
6. Intangible Assets:
Expenditure on computer software, which is not an integral part of hardware, is capitalised as an intangible asset. The cost of software includes license fee and implementation cost and is capitalised in the year of its implementation. Software is amortized over five years being managementâs estimate of life of assets over which economic benefits will be derived. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
7. Impairment of Non-financial Assets:
At the end of each reporting period, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest Component of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.
8. Inventories:
Stores and spare parts are valued at cost on weighted average basis or Net Realizable Value (NRV) whichever is lower. Provision for obsolescence is made, whenever required.
9. Employee Benefits:
(i) Liability for gratuity, leave salary and post retirement medical benefits payable to employees is provided for on accrual basis using the Projected Accrued Benefit Method (Projected Unit Credit Method with control period of one year) done by an independent actuary as at the Balance Sheet date. Contributions are made to approved gratuity fund created in a separate trust set up by the company for this purpose.
Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorized as follows:
- service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);
- net interest expense or income; and
- remeasurement.
The Company presents the first two components of defined benefit costs in profit or loss in the line item [employee benefits expenses]. Curtailment gains and losses are accounted for as past service costs.
The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the companyâs defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.
Termination benefits are immediately recognised in the statement of profit or loss account .A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.
(ii) Contribution to defined contribution plans such as Provident Fund, Pension Fund and Family Pension Fund are charged to the Statement of Profit & Loss as and when accrued.
(iii) The undiscounted amount of short term employee benefits expected to be paid for the services rendered are recognized as an expense during the period when the employees render the services.
10. Foreign Currency Transactions:
(i) Income & Expenditure denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.
(ii) Loans, Current liabilities and Current assets in foreign currencies are translated at the exchange rate prevailing at the end of financial year.
(iii) Gains or losses due to foreign exchange fluctuations are recognised in the Statement of Profit & Loss.
11. Revenue Recognition:
(i) Rail freight income & related expenses are accounted for at the time of issue of RRs by Indian Railways.
(ii) Road transportation/handling income & related expenses are accounted for at the time of booking of containers.
(iii) Terminal service charges (TSC) for empty containers are accounted for on accrual basis.
(iv) Terminal service charges (TSC) for loaded container & warehousing charges are accounted for on receipt/at the time of release of containers on âcompleted service contract methodâ.
(v) Dividend income is recognized when the companyâs right to receive the dividend is established.
(vi) Interest income from deposits is recognized on accrual basis.
(vii) Interest on Income tax refunds are accounted for on the finalization of assessments.
12. Claims/Counter-claims/Penalties/Awards:
Claims/counter-claims/penalties/awards are accounted for in the year of its settlement.
13. Taxes on Income:
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from âprofit before taxâ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Companyâs current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax base used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.
14. Investment in equity instrument of consolidated entities
The Companyâs investment in equity instruments of subsidiaries and joint ventures are accounted for at cost.
15. Provisions, Contingent Liabilities & Contingent Assets:
a. Provisions
Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
b. Onerous contracts
Onerous Contracts: A contract is considered as onerous when the expected economic benefits to be derived by the company from the contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision for an onerous contract is measured at the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the company recognises any impairment loss on the assets associated with that contract.
c. Contingent Liabilities
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
d. Contingent Assets
Contingent assets are not recognized in the financial statements. However they are disclosed when the possible right to receive exists.
16. Earnings per share (EPS)
Basic earnings per share (âEPSâ) is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of shares outstanding during the year.
Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the period except where the result would be anti-dilutive.
17. Cash and Cash Equivalent
In the cash flow statement cash and cash equivalents include cash in hand, demand deposits with banks, other short term highly liquid investments with original maturities of three months or less. that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
18. Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
The Company as lessee
Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the Company balance sheet as a finance lease obligation.
Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Companyâs general policy on borrowing costs. Contingent rentals are recognised as expenses in the periods in which they are incurred.
Rental expense from operating leases is generally recognised on a straight-line basis over the term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the lessorâs expected inflationary cost increases, such increases are recognised in the year in which such benefits accrue. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.
In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
The Company as lessor
Amounts due from lessees under finance leases are recognised as receivables at the amount of the Companyâs net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Companyâs net investment outstanding in respect of the leases.
Rental income from operating leases is generally recognised on a straight-line basis over the term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the Companyâs expected inflationary cost increases, such increases are recognised in the year in which such benefits accrue. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.
19. Financial instruments
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
Fair value of financial instruments that are quoted in active markets using the quoted bid prices ( financial assets held ) or quoted ask prices ( financial liabilities held ) and using valuation techniques for other instruments . Valuation techniques include discounted cash flow method and other valuation models.
Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value and transaction cost that is attributable to the acquisition of the financial asset is also adjusted.
Subsequent measurement
i. Debt instrument/Tax free bonds at amortised cost - A debt instrument at the amortised cost if both the following conditions are met:
a. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b. Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method.
ii. Equity instruments - All equity instruments in scope of Ind-AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at fair value through profit and loss (FVTPL). For all other equity instruments, the Company decides to classify the same either as at fair value through other comprehensive income (FVOCI) or fair value through profit and loss (FVTPL).
iii. Mutual Funds - All mutual funds in scope of Ind-AS 109 are measured at amortised cost and the (FVTPL) since they could be readily available for sales with significant change in value of the cash inflows.
De-recognition of financial assets
A financial asset is primarily de-recognised when the rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset.
Financial Liabilities
Initial recognition and measurement
All financial libilities are recognised initially at fair value and transaction cost that is attributable to the acquisition of the financial liabilities is also adjusted. These liabilities are classified at amortised cost.
Subsequent measurement
Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method. This category generally applies to long-term payables and deposits.
De-recognition of financial liabilities
A financial liabilities is de-recognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.
Financial guarantee contracts issued by a Company entity are initially measured at their fair values and, if not designated as at FVTPL, are subsequently measured at the higher of:
- the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and
- the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of Ind AS 18.
20. Impairment of financial asset
In accordance with Ind-AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss for financial assets.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive. When estimating the cash flows, the Company is required to consider -
- All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.
- Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
Trade receivable
As a practical expedient the Company has adopted âsimplified approachâ using the provision matrix method for recognition of expected loss on trade receivables. The provision matrix is based on historical default rate observed over the expected life of the trade receivable and is adjusted for forward-looking estimates. At every reporting date, the historical default rates are updated and changes in the forward-looking estimates are analysed. Further receivables are segmented for this analysis where the credit risk characteristics of the receivables are similar.
Other financial assets
For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly, impairment loss is provided.
21. Registration Fee: Registration fee paid to Ministry of Railways (MOR) for movement of container trains on Indian Railways Network and running of Private Freight Terminals (PFT) is shown as Prepaid Expenditure under âCurrent Assetsâ and âNon Current Assetsâ. The registration fee is amortized over the period covered by the respective agreements with Indian Railways.
22. Significant management judgement in applying accounting policies and estimation uncertainty Significant management judgements
When preparing the financial statements, management undertakes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses.
The following are significant management judgements in applying the accounting policies of the Company that have the most significant effect on the financial statements.
Recognition of deferred tax assets: The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the Companyâs future taxable income against which the deferred tax assets can be utilised.
Estimation certainty
Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual result may be substantially different.
Defined benefit obligation: Management estimates of these obligation is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the defined benefit obligation amount and the annual defined benefit expenses.
Provisions: At each balance sheet date based on management judgement, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding warranties and guarantees. However the actual future outcome may be deferent from this judgement.
23. Grants:
Grants are recognized when there is a reasonable assurance that the company has complied with the conditions attached to them and it is reasonably certain that the ultimate realization and utilization will be made. Grants which are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the company, with no future related costs are recognized in the statement of profit & loss of the period in which they have accrued.
Grants related to depreciable assets including non-monetary grants (at fair value), are presented in the balance sheet as âDeferred Incomeâ of the period, in which they become receivable. Such grants are usually recognized in the statement of profit & Loss over the periods in the proportions, in which depreciation expense on those assets is recognized.
The grants under âServed from India Scheme (SFIS)â are recognized at the time of utilization of SFIS Scrip towards procurement of assets and inventories. Such assets/inventories have been capitalized with a gross value from transaction date based on deemed cost exemption availed by the Company.
The grants under âService Export from India Scheme (SEIS)â are recognized when the conditions attached with the grant have been satisfied and there is reasonable assurance that the grants will be received. These are recognized in the period in which the right to receive the same is established i.e. the year during which the services eligible for grant of SEIS have been performed.
24. The Companyâs segmental reporting is in accordance with Ind AS 108 Operating Segments. Operating segments are reported in a manner consistent with the internal reporting provided to the board of directors, which is responsible for allocating resources and assessing performance of the operating segments, and has been identified as the chief operating decision maker.
Mar 31, 2017
1. CORPORATE INFORMATION
Container Corporation of India Limited (CONCOR), was incorporated on 10 March 1988 under the Companies Act with registration number 030915, and commenced its operation from November 1989 taking over the existing network of 7 ICDs from the Indian Railways. The shares of the Company are listed on two stock exchanges in India i.e. National Stock Exchange of India Limited (NSE) and BSE Limited (BSE).
From its humble beginning, it is now an undisputed market leader having the largest network of 68 ICDs/CFSs in India. In addition to providing inland transport by rail for containers, it has also expanded to cover management of Ports, air cargo complexes and establishing cold-chain. It has and will continue to play the role of promoting containerization of India by virtue of its modern rail wagon fleet, customer friendly commercial practices and extensively used Information Technology. The company developed multimodal logistics support for India''s International and Domestic containerization and trade. Though rail is the main stay of our transportation plan, road transportation is and also provided to cater the need of door-to-door services both in the International and Domestic business segment.
2. APPLICATION OF NEW OR REVISED IND AS
At the date of preparation of these financial statements, there were some amendments issued to the existing Ind ASs, after the initial notification issued by the MCA. The amendments and the impact of such amendments on the Company has been summarized as follows:
Recent accounting amendments:
Standards issued but not yet effective
The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) (Amendments) Rules, 2017, which are effective from April 1, 2017. These rules bring in amendments to Ind AS 7, âStatement of cash flows'' and Ind AS 102, âShare-based payment''.
Amendment to Ind AS 7:
The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. Liabilities arising from financing activities are liabilities for which cash flows were, or future cash flows will be, classified in the statement of cash flows as cash flows from financing activities. In addition, the disclosure requirement in paragraph 44A also applies to changes in financial assets (for example, assets that hedge liabilities arising from financing activities) if cash flows from those financial assets were, or future cash flows will be, included in cash flows from financing activities. One way to fulfill the requirement is by providing a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities. Where an entity discloses such a reconciliation, it shall provide sufficient information to enable users of the financial statements to link items included in the reconciliation to the balance sheet and the statement of cash flows.
The Company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.
Amendment to Ind AS 102:
The amendment to Ind AS 102 is regarding the classification and measurement of share based payment transactions. However Company does not have any share-based payments and accordingly this amendment is not applicable to the company.
3. STATEMENT OF COMPLIANCE
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind ASs'') notified by the Central Government under section 133 of the Indian Companies Act, 2013 as Companies (Indian Accounting Standards) Rules, 2015. Upto the year ended 31 March, 2016, the Company prepared its financial statements in accordance with the accounting principles generally accepted in India, including the accounting standards specified under section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014. These are Company''s first Ind AS financial statements. The date of transition to Ind AS is April 1, 2015.
4. BASIS OF PREPARATION
The financial statements have been prepared on the historical cost basis except financial instruments that are measured at revalued amounts or fair values at the end of each reporting period. In estimating the fair value of an asset or a liability, the company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/ or disclosure purposes in the financial statements is determined on such a basis, except for leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36.
5. PROPERTY, PLANT AND EQUIPMENT
i. Property, plant and equipment is stated at cost, less accumulated depreciation and accumulated impairment losses. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into the location and condition necessary for it to be capable of operating in the manner intended by management, the initial estimate of any decommissioning obligation, if any, and, for assets that necessarily take a substantial period of time to get ready for their intended use, finance costs. Cost includes net of interest on capital advances and duty credits and is inclusive of freight, duties, taxes and other incidental expenses. In respect of assets due for capitalization, where final bills/claims are to be received/passed, the capitalization is based on the engineering estimates. Final adjustments, for costs and depreciation are made retrospectively in the year of ascertainment of actual cost and finalization of claim. Items such as spare parts, stand-by equipment and servicing equipment are recognized in accordance with this Ind AS 16 when they meet the definition of property, plant and equipment.
ii. Capital work in progress includes the cost of fixed assets that are not yet ready for their intended use and the cost of assets not put to use before the Balance Sheet date.
iii. Provision for stamp duty at the prevailing rate is made by the company at the time of capitalization of the amount paid for acquisition of land & is capitalized as part of the cost of Land.
Depreciation/Amortization:
iv. Fixed assets are depreciated over its useful life and in the manner prescribed in Schedule II to the Companies Act 2013, other than as prescribed below:
- Assets constructed on leasehold land, other than perpetual leases, and assets classified as finance leases are depreciated over the period of lease or useful life of such assets, as prescribed under Schedule II of Companies Act 2013, whichever is less.
- Land leases where the lease term is for the significant economic life of the asset are considered as finance leases. Such leases are included in property plant and equipment and are depreciated over the lease period. Freehold land or perpetual land leases are not depreciated. Land leases where the lease term is not for the significant economic life of land are considered as operating leases and are classified as prepayments. Such leases are amortized over the lease terms.
In respect of assets whose useful lives has been revised, the unamortized depreciable amount is charged over the revised remaining useful lives of the assets.
v. Capital expenditure on enabling assets, like roads, culverts & electricity transmissions etc., the ownership of which is not with the Company are charged off to revenue in the accounting period of incurrence of such expenditure. However, capital expenditure on enabling assets, ownership of which rests with the company and which have been created on land not belonging to the Company is written off to the Statement of Profit & Loss over its approximate period of utility or over a period of 5 years, whichever is less. For this purpose, land is not considered to be belonging to the company, if the same is not owned or leased/licensed to the company.
vi. An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in statement of profit and loss.
6. INTANGIBLE ASSETS
Expenditure on computer software, which is not an integral part of hardware, is capitalized as an intangible asset. The cost of software includes license fee and implementation cost and is capitalized in the year of its implementation. Software is amortized over five years being management''s estimate of life of assets over which economic benefits will be derived. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
7. IMPAIRMENT OF NON-FINANCIAL ASSETS
At the end of each reporting period, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest Component of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in statement of profit and loss.
8. INVENTORIES
Stores and spare parts are valued at cost on weighted average basis or Net Realizable Value (NRV) whichever is lower. Provision for obsolescence is made, whenever required.
9. EMPLOYEE BENEFITS
(i) Liability for gratuity, leave salary and post retirement medical benefits payable to employees is provided for on accrual basis using the Projected Accrued Benefit Method (Projected Unit Credit Method with control period of one year) done by an independent actuary as at the Balance Sheet date. Contributions are made to approved gratuity fund created in a separate trust set up by the company for this purpose.
Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest), is reflected immediately in the balance sheet with a charge or credit recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to statement of profit and loss. Past service cost is recognized in statement of profit and loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorized as follows:
- service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);
- net interest expense or income; and
- remeasurement.
The Company presents the first two components of defined benefit costs in statement of profit and loss in the line item [âemployee benefits expenses]. Curtailment gains and losses are accounted for as past service costs.
The retirement benefit obligation recognized in the balance sheet represents the actual deficit or surplus in the company''s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.
Termination benefits are immediately recognized in the statement of profit and loss. A liability for a termination benefit is recognized at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognizes any related restructuring costs.
(ii) Contribution to defined contribution plans such as Provident Fund, Pension Fund and Family Pension Fund are charged to the Statement of Profit & Loss as and when accrued.
(iii) The undiscounted amount of short term employee benefits expected to be paid for the services rendered are recognized as an expense during the period when the employees render the services.
10. FOREIGN CURRENCY TRANSACTIONS
i Income & Expenditure denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.
ii Loans, Current liabilities and Current assets in foreign currencies are translated at the exchange rate prevailing at the end of financial year.
iii Gains or losses due to foreign exchange fluctuations are recognized in the Statement of Profit & Loss.
11. REVENUE RECOGNITION
i Rail freight income & related expenses are accounted for at the time of issue of RRs by Indian Railways.
ii Road transportation/handling income & related expenses are accounted for at the time of booking of containers.
iii Terminal service charges (TSC) for empty containers are accounted for on accrual basis.
iv Terminal service charges (TSC) for loaded container & warehousing charges are accounted for on receipt/at the time of release of containers on âcompleted service contract methodâ.
v Dividend income is recognized when the company''s right to receive the dividend is established.
12. CLAIMS/COUNTER-CLAIMS/PENALTIES/AWARDS:
Claims/counter-claims/penalties/awards are accounted for in the year of its settlement.
13. TAXES ON INCOME
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from âprofit before tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax base used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax for the year
Current and deferred tax are recognized in statement of profit and loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.
14. INVESTMENT IN EQUITY INSTRUMENT OF CONSOLIDATED ENTITIES
The Company''s investment in equity instruments of subsidiaries and joint ventures are accounted for at cost.
15. PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS
a. Provisions
Provisions are recognized when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
b. Onerous contracts
Onerous Contracts: A contract is considered as onerous when the expected economic benefits to be derived by the company from the contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision for an onerous contract is measured at the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the company recognizes any impairment loss on the assets associated with that contract.
c. Contingent Liabilities
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
d. Contingent Assets
Contingent assets are not recognized in the accounts. However they are disclosed when the possible right to receive exists.
16. EARNINGS PER SHARE (EPS)
Basic earnings per share (âEPS'') is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of shares outstanding during the year.
Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the period except where the result would be anti-dilutive.
17. CASH AND CASH EQUIVALENT
In the cash flow statement, cash and cash equivalents include cash in hand, demand deposits with banks, other short term highly liquid investments with original maturities of three months or less, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
18. LEASES
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
The Company as lessee
Assets held under finance leases are initially recognized as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the less or is included in the Company balance sheet as a finance lease obligation.
Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognized immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalized in accordance with the Company''s general policy on borrowing costs. Contingent rentals are recognized as expenses in the periods in which they are incurred.
Rental expense from operating leases is generally recognized on a straight-line basis over the term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the less orâs expected inflationary cost increases, such increases are recognized in the year in which such benefits accrue. Contingent rentals arising under operating leases are recognized as an expense in the period in which they are incurred.
In the event that lease incentives are received to enter into operating leases, such incentives are recognized as a liability. The aggregate benefit of incentives is recognized as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
The Company as less or
Amounts due from lessees under finance leases are recognized as receivables at the amount of the Company''s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Company''s net investment outstanding in respect of the leases.
Rental income from operating leases is generally recognized on a straight-line basis over the term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the Company''s expected inflationary cost increases, such increases are recognized in the year in which such benefits accrue. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized on a straight-line basis over the lease term.
19. FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are recognized when the company becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in statement of profit and loss.
Fair value of financial instruments that are quoted in active markets using the quoted bid prices ( financial assets held ) or quoted ask prices ( financial liabilities held ) and using valuation techniques for other instruments . Valuation techniques include discounted cash flow method and other valuation models.
Financial assets
Initial recognition and measurement
All financial assets are recognized initially at fair value and transaction cost that is attributable to the acquisition of the financial asset is also adjusted.
Subsequent measurement
i. Debt instrument/Tax free bonds at amortized cost - A debt instrument at the amortized cost if both the following conditions are met:
a. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b. Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method.
ii. Equity instruments - All equity instruments in scope of Ind-AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at fair value through profit and loss (FVTPL). For all other equity instruments, the Company decides to classify the same either as at fair value through other comprehensive income (FVOCI) or fair value through profit and loss (FVTPL).
iii. Mutual Funds - All mutual funds in scope of Ind-AS 109 are measured at amortized cost and the (FVTPL) since they could be readily available for sales with significant change in value of the cash inflows.
De-recognition of financial assets
A financial asset is primarily de-recognized when the rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset.
Financial Liabilities
Initial recognition and measurement
All financial liabilities are recognized initially at fair value and transaction cost that is attributable to the acquisition of the financial liabilities is also adjusted. These liabilities are classified at amortized cost.
Subsequent measurement
Subsequent to initial recognition, these liabilities are measured at amortized cost using the effective interest method. This category generally applies to long-term payables and deposits.
De-recognition of financial liabilities
A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit and loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.
Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.
Financial guarantee contracts issued by a Company entity are initially measured at their fair values and, if not designated as at FVTPL, are subsequently measured at the higher of:
- the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and
- the amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance with the principles of Ind AS 18.
20. IMPAIRMENT OF FINANCIAL ASSET
In accordance with Ind-AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss for financial assets.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive. When estimating the cash flows, the Company is required to consider -
- All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.
- Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
Trade receivable
As a practical expedient the Company has adopted âsimplified approach'' using the provision matrix method for recognition of expected loss on trade receivables. The provision matrix is based on historical default rate observed over the expected life of the trade receivable and is adjusted for forward-looking estimates. At every reporting date, the historical default rates are updated and changes in the forward-looking estimates are analyzed. Further receivables are segmented for this analysis where the credit risk characteristics of the receivables are similar.
Other financial assets
For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly, impairment loss is provided.
21. REGISTRATION FEE
Registration fee paid to Ministry of Railways (MOR) for movement of container trains on Indian Railways Network and running of Private Freight Terminals (PFT) is shown as Prepaid Expenditure under âCurrent Assets'' and âNon Current Assets''. The registration fee is amortized over the period covered by the respective agreements with Indian Railways.
22. SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND ESTIMATION UNCERTAINTY
Significant management judgments
When preparing the financial statements, management undertakes a number of judgments, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses.
The following are significant management judgments in applying the accounting policies of the Company that have the most significant effect on the financial statements.
Recognition of deferred tax assets: The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company''s future taxable income against which the deferred tax assets can be utilized.
Estimation certainty
Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual result may be substantially different.
Defined benefit obligation: Management estimates of these obligation is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the defined benefit obligation amount and the annual defined benefit expenses.
Provisions: At each balance sheet date based on management judgment, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding warranties and guarantees. However the actual future outcome may be deferent from this judgment.
23. GRANTS
Grants are recognized when there is a reasonable assurance that the company has complied with the conditions attached to them and it is reasonably certain that the ultimate realization and utilization will be made. Grants which are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the company, with no future related costs are recognized in statement of profit and loss in period in which they have accrued.
The grants under âServed from India Scheme (SFIS)'' are recognized at the time of utilization of SFIS Scrip towards procurement of assets and inventories. Such assets/inventories have been capitalized with a gross value from transaction date based on deemed cost exemption availed by the Company.
The grants under âService Export from India (SEIS)'' are recognized when the conditions attached with the grant have been satisfied and there is reasonable assurance that the grants will be received. These are recognized in the period in which the right to receive the same is established i.e. the year during which the services eligible for grant of SEIS have been performed.
Mar 31, 2016
1. Accounting Convention & Concepts:
The financial statements are prepared under the historical cost
convention on accrual basis, in accordance with the accounting
principles generally accepted in India, including the Accounting
Standards specified under section 133 of the Companies Act, 2013 read
with Rule 7 of the Companies (Accounts) Rules, 2014. Accounting
Policies not referred to otherwise are consistent with generally
accepted accounting principles
2. Fixed Assets & Capital Work in Progress:
(i) Fixed assets are stated at cost of acquisition or construction,
less accumulated depreciation. Cost of acquisition is net of interest
on capital advances and duty credits and is inclusive of freight,
duties, taxes and other incidental expenses. In respect of assets due
for capitalization, where final bills/claims are to be received/passed,
the capitalisation is based on the engineering estimates. Final
adjustments, for costs and depreciation are made retrospectively in the
year of ascertainment of actual cost and finalisation of claim.
Machinery spares, which can be used only in connection with an item of
fixed asset and whose use is expected to be irregular are capitalized.
Capital work in progress includes the cost of fixed assets that are not
yet ready for their intended use and the cost of assets not put to use
before the Balance Sheet date. Advances paid to acquire fixed assets
are shown as part of ''Long Term Loans & Advances".
(ii) Provision for stamp duty at the prevailing rate is made by the
company at the time of capitalization of the amount paid for
acquisition of land & is capitalised as part of the cost of Land.
3. Intangible Assets:
(i) Software:
Expenditure on computer software, which is not an integral part of
hardware, is capitalised as an intangible asset. The cost of software
includes license fee and implementation cost and is capitalised in the
year of its implementation. Software is amortized over five years being
management''s estimate of life of assets over which economic benefits
will be derived.
(ii) Registration Fee:
Registration fee paid to Ministry of Railways (MOR) for movement of
container trains on Indian Railways and running of Private Freight
Terminals (PFT) is capitalized as an Intangible Asset. The registration
fee is amortized over the period covered by the respective agreements
with Indian Railways.
4. Borrowing Costs:
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalized as part of the cost of such assets
and all other borrowing costs are charged to revenue. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for intended use.
5. Investments:
(i) Long term investments are stated at cost. A provision for
diminution in value is made to recognise a decline other than temporary
in nature.
(ii) Current investments are stated at lower of cost or fair value.
6. Inventories:
Stores and spare parts are valued at cost on weighted average basis or
Net Realizable Value (NRV) whichever is lower. Provision for
obsolescence is made, whenever required.
7. Depreciation/Amortization:
(i) The Depreciation on fixed assets including assets created on
leasehold land is provided based on useful life and in the manner
prescribed in Schedule II to the Companies Act 2013.
(ii) Leasehold land other than acquired on perpetual lease is amortized
over the period of lease. Leasehold buildings are amortized over the
period of lease or useful life of the buildings, as prescribed under
Schedule II of Companies Act 2013, whichever is less.
(iii) Capital expenditure on enabling assets, like roads, culverts &
electricity transmissions etc., the ownership of which is not with the
Company are charged off to revenue in the accounting period of
incurrence of such expenditure. However, capital expenditure on
enabling assets, ownership of which rests with the company and which
have been created on land not belonging to the Company is written off
to the Statement of Profit & Loss over its approximate period of
utility or over a period of 5 years, whichever is less. For this
purpose, land is not considered to be belonging to the company, if the
same is not owned or leased/licensed to the company.
8. Impairment of Assets:
An asset is treated as impaired when the carrying amount of assets
exceeds its recoverable value. An impairment loss is charged to the
Statement of Profit & Loss in the year in which an asset is identified
as impaired.
9. Employee Benefits:
(i) Liability for gratuity, leave salary and post retirement medical
benefits payable to employees is provided for on accrual basis using
the Projected Accrued Benefit Method (Projected Unit Credit Method with
control period of one year) done by an independent actuary as at the
Balance Sheet date. Contributions are made to approved gratuity fund
created in a separate trust set up by the company for this purpose.
(ii) Contribution to defined contribution plans such as Provident Fund,
Pension Fund and Family Pension Fund are charged to the Statement of
Profit & Loss as and when accrued.
(iii) The undiscounted amount of short term employee benefits expected
to be paid for the services rendered are recognized as an expense
during the period when the employees render the services.
10. Foreign Currency Transactions:
(i) Income & Expenditure denominated in foreign currencies are recorded
at the exchange rate prevailing on the date of transaction.
(ii) Loans, Current liabilities and Current assets in foreign
currencies are translated at the exchange rate prevailing at the end of
financial year.
(iii) Gains or losses due to foreign exchange fluctuations are
recognised in the Statement of Profit & Loss.
11. Revenue Recognition:
(i) Rail freight income & related expenses are accounted for at the
time of issue of RRs by Indian Railways.
(ii) Road transportation/handling income & related expenses are
accounted for at the time of booking of containers.
(iii) Terminal service charges (TSC) for empty containers are accounted
for on accrual basis.
(iv) Terminal service charges (TSC) for loaded container & warehousing
charges are accounted for on receipt/at the time of release of
containers on "completed service contract method".
(v) Dividend income is recognized when the company''s right to receive
the dividend is established.
(vi) Company''s share in profits or losses from Business Arrangement is
accounted annually on determination of the profits or losses by
Business Arrangement after the same is audited by Auditors of Business
Arrangement.
12. Claims/Counter-claims/Penalties/Awards:
Claims/counter-claims/penalties/awards are accounted for in the year of
its settlement.
13. Taxes on Income:
(i) Provision for current tax is made in accordance with the provisions
of the Income Tax Act, 1961.
(ii) Disputed income tax liabilities are accounted for on the
finalization of assessments.
(iii) Deferred Tax Liability/Asset resulting from timing difference
between book profit and taxable profit is accounted for considering the
tax rate and laws that have been enacted or substantially enacted as at
the balance sheet date in accordance with AS-22 issued by the ICAI.
Deferred Tax Asset, if any is recognized and carried forward only to
the extent that there is virtual certainty that the asset will be
realized in future.
14. Provisions, Contingent Liabilities & Contingent Assets:
Provisions involving substantial degree of estimation are recognised in
respect of obligations where, based on the evidence available, their
existence on the Balance Sheet date is considered probable.
Contingent liabilities are determined on the basis of available
information. These liabilities are not provided for and disclosed by
way of notes on accounts.
Contingent assets are not recognized in the accounts.
15. Grants:
(i) Capital Grants:
Grants received towards specific fixed assets are deducted from the
gross value of the asset or capital work in progress as the case may
be. Unutilized amount out of grant received is shown as liability.
(ii) Revenue Grants:
Grants received, which are revenue in nature are credited to the
Statement of Profit & Loss. Unutilized amount out of grant received is
shown as liability.
16. Provision for Doubtful Trade Receivables/Advances/Deposits:
Provision for Doubtful Trade Receivables/Advances/Deposits is made when
there is uncertainty of realisation irrespective of the period of its
dues. For dues outstanding over three years, full provision is made
unless the amount is considered recoverable.
17. Earnings per share (EPS)
Basic earnings per share (''EPS'') is computed by dividing the net profit
or loss for the year attributable to equity shareholders by the
weighted average number of shares outstanding during the year.
Diluted EPS is computed using the weighted average number of equity and
dilutive equity equivalent shares outstanding during the period except
where the result would be anti-dilutive.
18. Leases
Operating lease: Asset acquired on lease where the significant portion
of risk and rewards are retained by the lessor are classified as
operating lease. Lease rentals in respect of assets acquired under
operating lease are charged off to the Statement of Profit and Loss on
a straight line basis over the lease term.
Finance Lease: Assets acquired on lease where significant portion of
risk and reward are retained by the lessee are classified as finance
lease. Finance expense out of the lease rentals are charged off to the
statement of profit and loss.
Mar 31, 2015
1. Accounting Convention & Concepts:
The financial statements are prepared under the historical cost
convention on accrual basis, in accordance with the applicable
mandatory Accounting Standards and relevant presentation requirements
of the Companies, Act 1956 and Companies Act, 2013.Accounting Policies
not referred to otherwise are consistent with generally accepted
accounting principles.
2. FixedAssets&Capital Work in Progress:
(i) Fixed assets are stated at cost of acquisition or construction,
less accumulated depreciation. Cost of acquisition is net of interest
on capital advances and duty credits and is inclusive of freight,
duties, taxes and other incidental expenses. In respect of assets due
for capitalization, where final bills/claims are to be received/passed,
the capitalisation is based on the engineering estimates. Final
adjustments, for costs and depreciation are made retrospectively in the
year of ascertainment of actual cost and finalisation of claim.
Machinery spares, which can be used only in connection with an item of
fixed asset and whose use is expected to be irregular are capitalized.
Capital work in progress includes the cost of fixed assets that are not
yet ready for their intended use and the cost of assets not put to use
before the Balance Sheet date. Advances paid to acquire fixed assets
are shown as part of 'Long Term Loans &Advances".
(ii) Provision for stamp duty at the prevailing rate is made by the
company at the time of capitalization of the amount paid for
acquisition of land & is capitalised as part of the cost of Land.
3. IntangibleAssets:
(i) Software:
Expenditure on computer software, which is not an integral part of
hardware, is capitalised as an intangible asset. The cost of software
includes license fee and implementation cost and is capitalised in the
year of its implementation. Software is amortized overfive years.
(ii) Registration Fee:
Registration fee paid to Ministry of Railways (MOR) for movement of
container trains on Indian Railways and running of Private Freight
Terminals (PFT) is capitalized as an Intangible Asset. The registration
fee is amortized overthe period covered by the respective agreements
with Indian Railways.
4. Borrowing Costs:
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalized as part of the cost of such assets
and all other borrowing costs are charged to revenue. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for intended use.
5. Investments:
(i) Long term investments are stated at cost. A provision for
diminution in value is made to recognise a decline other than temporary
in nature.
(ii) Current investments are stated at lower of cost or fair value.
6. Inventories:
Stores and spare parts are valued at cost on weighted average basis.
Provision for obsolescence is made, whenever required.
7. Depreciation/Amortization:
(i) The Depreciation on fixed assets including assets created on
leasehold land is provided based on useful life and in the manner
prescribed in Schedule 11 to the Companies Act 2013.
(ii) Leasehold land other than acquired on perpetual lease is amortized
over the period of lease. Leasehold buildings are amortized overthe
period of lease or useful life of the buildings, as prescribed under
Schedule II of Companies Act 2013, whichever is less.
(iii) Capital expenditure on enabling assets, like roads, culverts &
electricity transmissions etc., the ownership of which is not with the
Company are charged off to revenue in the accounting period of
incurrence of such expenditure. However, capital expenditure on
enabling assets, ownership of which rests with the company and which
have been created on land not belonging to the Company is written off
to the Statement of Profit & Loss over its approximate period of
utility or over a period of 5 years, whichever is less. For this
purpose, land is not considered to be belonging to the company, if the
same is not owned or leased/licensed to the company.
8. Impairment of Assets:
An asset is treated as impaired when the carrying amount of assets
exceeds its recoverable value. An impairment loss is charged to the
Statement of Profit & Loss in the year in which an asset is identified
as impaired.
9. Employee Benefits:
(i) Liability for gratuity, leave salary and post retirement medical
benefits payable to employees is provided for on accrual basis based on
valuation done by an independent actuary as at the Balance Sheet date.
Contributions are made to approved gratuity fund created in a separate
trust set up by the company for this purpose.
(ii) Contribution to defined contribution plans such as Provident Fund,
Pension Fund and Family Pension Fund are charged to the Statement of
Profit & Loss as and when accrued.
10. Foreign Currency Transactions:
(i) Income & Expenditure denominated in foreign currencies are recorded
at the exchange rate prevailing on the date of transaction.
(ii) Loans, Current liabilities and Current assets in foreign
currencies are translated at the exchange rate prevailing at the end of
financial year.
(iii) Gains or losses due to foreign exchange fluctuations are
recognised in the Statement of Profit & Loss.
11. Revenue Recognition:
(i) Rail freight income & related expenses are accounted for at the
time of issue of RRs by Indian Railways.
(ii) Roadtransportation/handling income & related expenses are
accounted for at the time of booking of containers.
(iii) Terminal service charges for empty containers are accounted for
on accrual basis.
(iv) Terminal service charges for loaded container & wharfage are
accounted for on receipt/at the time of release of containers on
"completed service contract method".
(v) Dividend income is recognized when the company's right to receive
the dividend is established.
12. Claims/Counter-claims/Penalties/Awards:
Claims/counter-claims/penalties/awards are accounted for in the year of
its settlement.
13. Taxes on Income:
(i) Provision for current tax is made in accordance with the provisions
of the Income Tax Act, 1961.
(ii) Disputed income tax liabilities are accounted for on the
finalization of assessments.
(iii) Deferred Tax Liability/Asset resulting from timing difference
between book profit and taxable profit is accounted for considering the
tax rate and laws that have been enacted or substantially enacted as at
the balance sheet date in accordance with AS-22 issued by the ICAI.
Deferred Tax Asset, if any is recognized and carried forward only to
the extent that there is virtual certainty that the asset will be
realized in future.
14. Provisions, Contingent Liabilities&ContingentAssets:
Provisions are recognised in respect of obligations where, based on the
evidence available, their existence on the Balance Sheet date is
considered probable.
Contingent liabilities are determined on the basis of available
information. These liabilities are not provided for and disclosed by
way of notes on accounts.
Contingent assets are not recognized in the accounts.
15. Grants:
(i) Capital Grants:
Grants received towards specific fixed assets are deducted from the
gross value of the asset or capital work in progress as the case may
be. Unutilized amount out of grant received is shown as liability.
(ii) Revenue Grants:
Grants received, which are revenue in nature are credited to the
Statement of Profit & Loss. Unutilized amount out of grant received is
shown as liability.
16. Provision for Doubtful Trade Receivables/Advances/Deposits:
Provision for Doubtful Trade Receivables/Advances/Deposits is made when
there is uncertainty of realisation irrespective of the period of its
dues. For dues outstanding over three years, full provision is made
unless the amount is considered recoverable.
Mar 31, 2014
1. Accounting Convention & Concepts:
The financial statements are prepared under the historical cost
convention on accrual basis, in accordance with the applicable
mandatory Accounting Standards and relevant presentation requirements
of the Companies Act, 1956. Accounting Policies not referred to
otherwise are consistent with generally accepted accounting principles.
2. Fixed Assets & Capital Work in Progress:
(i) Fixed assets are stated at cost of acquisition or construction,
less accumulated depreciation. Cost of acquisition is net of interest
on capital advances and duty credits and is inclusive of freight,
duties, taxes and other incidental expenses. In respect of assets due
for capitalization, where final bills/claims are to be received/passed,
the capitalisation is based on the engineering estimates. Final
adjustments, for costs and depreciation are made retrospectively in the
year of ascertainment of actual cost and finalisation of claim.
Machinery spares, which can be used only in connection with an item of
fixed asset and whose use is expected to be irregular are capitalized.
Capital work in progress includes the cost of fixed assets that are not
yet ready for their intended use and the cost of assets not put to use
before the Balance Sheet date. Advances paid to acquire fixed assets
are shown as part of ''Long Term Loans & Advances".
(ii) Provision for stamp duty at the prevailing rate is made by the
company at the time of capitalization of the amount paid for
acquisition of land & is capitalised as part of the cost of Land.
3. Intangible Assets: (i) Software:
Expenditure on computer software, which is not an integral part of
hardware, is capitalised as an intangible asset. The cost of software
includes license fee and implementation cost and is capitalised in the
year of its implementation. Software is amortized over five years.
(ii) Registration Fee:
Registration fee paid to Ministry of Railways (MOR) for movement of
container trains on Indian Railways and running of Private Freight
Terminals (PFT) is capitalized as an Intangible Asset. The registration
fee is amortized over the period covered by the respective agreements
with Indian Railways.
4. Borrowing Costs:
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalized as part of the cost of such assets
and all other borrowing costs are charged to revenue. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for intended use.
5. Investments:
(i) Long term investments are stated at cost. A provision for
diminution in value is made to recognise a decline other than temporary
in nature.
(ii) Current investments are stated at lower of cost or fair value.
6. Inventories:
Stores and spare parts are valued at cost on weighted average basis.
Provision for obsolescence is made, whenever required.
7. Depreciation/Amortization:
(i) Depreciation on fixed assets including assets created on leasehold
land is provided on "Straight Line Method" at the rates and in the
manner prescribed in Schedule XIV of the Companies Act, 1956, except
for Roads/Pavements/Boundary wall/ Warehouses and Electrical Fittings
of terminals on which depreciation has been provided @ 3.34% and 10.34%
respectively and for upgraded BFKI Wagons @ 6.79%.
(ii) Leasehold land other than acquired on perpetual lease is amortized
over the period of lease. Leasehold buildings are amortized over the
period of lease or useful life of the building as per rates prescribed
under Schedule XIV, whichever is less.
(iii) Capital expenditure on enabling assets, like roads, culverts &
electricity transmissions etc., the ownership of which is not with the
Company are charged off to revenue in the accounting period of
incurrence of such expenditure. However, capital expenditure on
enabling assets, ownership of which rests with the company and which
have been created on land not belonging to the Company is written off
to the Statement of Profit & Loss over its approximate period of
utility or over a period of 5 years, whichever is less. For this
purpose, land is not considered to be belonging to the company, if the
same is not owned or leased/licensed to the company.
8. Impairment of Assets:
An asset is treated as impaired when the carrying amount of assets
exceeds its recoverable value. An impairment loss is charged to the
Statement of Profit & Loss in the year in which an asset is identified
as impaired.
9. Retirement Benefits:
(i) Liability for gratuity, leave salary and post retirement medical
benefits payable to employees is provided for on accrual basis based on
valuation done by an independent actuary as at the Balance Sheet date.
Contributions are made to approved gratuity fund created in a separate
trust set up by the company for this purpose.
(ii) Contribution to defined contribution plans such as Provident Fund,
Pension Fund and Family Pension Fund are charged to the Statement of
Profit & Loss as and when accrued.
10. Foreign Currency Transactions:
(i) Income & Expenditure denominated in foreign currencies are recorded
at the exchange rate prevailing on the date of transaction.
(ii) Loans, Current liabilities and Current assets in foreign
currencies are translated at the exchange rate prevailing at the end of
financial year.
(iii) Gains or losses due to foreign exchange fluctuations are
recognised in the Statement of Profit & Loss.
11. Income from Operations (Terminal & Other Service Charges):
(i) Rail freight income & related expenses are accounted for at the
time of issue of RRs by Indian Railways.
(ii) Road transportation/handling income & related expenses are
accounted for at the time of booking of containers.
(iii) Terminal service charges for empty containers are accounted
for on accrual basis.
(iv) Terminal service charges for loaded container & wharfage are
accounted for on receipt/at the time of release of containers on
"completed service contract method".
12. Claims/Counter-claims/Penalties/Awards:
Claims/counter-claims/penalties/awards are accounted for in the year of
its settlement.
13. Taxes on Income:
(i) Provision for current tax is made in accordance with the provisions
of the Income Tax Act, 1961.
(ii) Disputed income tax liabilities are accounted for on the
finalization of assessments.
14. Provisions, Contingent Liabilities & Contingent Assets:
Provisions are recognised in respect of obligations where, based on the
evidence available, their existence on the Balance Sheet date is
considered probable.
Contingent liabilities are determined on the basis of available
information. These liabilities are not provided for and disclosed by
way of notes on accounts.
Contingent assets are not recognized in the accounts.
15. Grants:
(i) Capital Grants:
Grants received towards specific fixed assets are deducted from the
gross value of the asset or capital work in progress as the case may
be. Unutilized amount out of grant received is shown as liability.
(ii) Revenue Grants:
Grants received, which are revenue in nature are credited to the
Statement of Profit & Loss. Unutilized amount out of grant received is
shown as liability.
16. Provision for Doubtful Trade Recievables/Advances/Deposits:
Provision for Doubtful Trade Receivables/Advances/Deposits is made when
there is uncertainty of realisation irrespective of the period of its
dues. For dues outstanding over three years, full provision is made
unless the amount is considered recoverable.
i). Estimated amount of Contracts remaining to be executed and not
provided for (Net of advances):
Mar 31, 2013
1. Accounting Convention & Concepts:
The financial statements are prepared under the historical cost
convention on accrual basis, in accordance with the applicable
mandatory Accounting Standards and relevant presentation requirements
of the Companies Act, 1956. Accounting Policies not referred to
otherwise are consistent with generally accepted accounting principles.
2. Fixed Assets & Capital Work in Progress:
(i) Fixed assets are stated at cost of acquisition or construction,
less accumulated depreciation. Cost of acquisition is net of interest
on capital advances and duty credits and is inclusive of freight,
duties, taxes and other incidental expenses. In respect of assets due
for capitalization, where final bills/claims are to be received/passed,
the capitalisation is based on the engineering estimates. Final
adjustments, for costs and depreciation are made retrospectively in the
year of ascertainment of actual cost and finalisation of claim.
Machinery spares, which can be used only in connection with an item of
fixed asset and whose use is expected to be irregular are capitalized.
Capital work in progress includes the cost of fixed assets that are not
yet ready for their intended use and the cost of assets not put to use
before the Balance Sheet date. Advances paid to acquire fixed assets
are shown as part of ''''Long Term Loans & Advances".
(ii) Provision for stamp duty at the prevailing rate is made by the
company at the time of capitalization of the amount paid for
acquisition of land & is capitalised as part of the cost of Land.
3. Intangible Assets:
(i) Software:
Expenditure on computer software, which is not an integral part of
hardware, is capitalised as an intangible asset. The cost of software
includes license fee and implementation cost and is capitalised in the
year of its implementation. Software is amortized over five years.
(ii) Registration Fee:
Registration fee paid to Ministry of Railways (MOR) for movement of
container trains on Indian Railways and running of Private Freight
Terminals (PFT) is capitalized as an Intangible Asset. The registration
fee is amortized over the period covered by the respective agreements
with Indian Railways.
4. Borrowing Costs:
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalized as part of the cost of such assets
and all other borrowing costs are charged to revenue. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for intended use.
5. Investments:
(i) Long term investments are stated at cost. A provision for
diminution in value is made to recognise a decline other than temporary
in nature.
(ii) Current investments are stated at lower of cost or fair value.
6. Inventories:
Stores and spare parts are valued at cost on weighted average basis.
Provision for obsolescence is made, whenever required.
7. Depreciation/Amortization:
(i) Depreciation on fixed assets including assets created on leasehold
land is provided on "Straight Line Method" at the rates and in the
manner prescribed in Schedule XIV of the Companies Act, 1956, except
for Roads/Pavements/Boundary wall/ Warehouses and Electrical Fittings
of terminals on which depreciation has been provided @ 3.34% and 10.34%
respectively and for upgraded BFKI Wagons @ 6.79%.
(ii) Leasehold land other than acquired on perpetual lease is amortized
over the period of lease. Leasehold buildings are amortized over the
period of lease or useful life of the building as per rates prescribed
under Schedule XIV, whichever is less.
(iii) Capital expenditure on enabling assets, like roads, culverts &
electricity transmissions etc., the ownership of which is not with the
Company are charged off to revenue in the accounting period of
incurrence of such expenditure. However, capital expenditure on
enabling assets, ownership of which rests with the company and which
have been created on land not belonging to the Company is written off
to the Statement of Profit & Loss over its approximate period of
utility or over a period of 5 years, whichever is less. For this
purpose, land is not considered to be belonging to the company, if the
same is not owned or leased/licensed to the company.
8. Impairment of Assets:
An asset is treated as impaired when the carrying amount of assets
exceeds its recoverable value. An impairment loss is charged to the
Statement of Profit & Loss in the year in which an asset is identified
as impaired.
9. Retirement Benefits:
(i) Gratuity liability to employees is provided for on accrual basis
based on valuation done by an independent actuary as at the Balance
Sheet date. Contributions are made to approved Gratuity Fund created in
a Trust set up by the Company for this purpose.
(ii) Liability for leave travel concession & leave salary payable to
employees is provided for on accrual basis based on valuation done by
an independent actuary as at the Balance Sheet date.
(iii) Contribution to defined contribution plans such as Provident Fund
and Family Pension Fund are charged to the Statement of Profit & Loss
as and when accrued.
10. Foreign Currency Transactions:
(i) Income & Expenditure denominated in foreign currencies are recorded
at the exchange rate prevailing on the date oftransaction.
(ii) Loans, Current liabilities and Current assets in foreign
currencies are translated at the exchange rate prevailing at the end of
financial year.
(iii) Gains or losses due to foreign exchange fluctuations are
recognised in the Statement of Profit & Loss.
11. Income from Operations (Terminal & other Service Charges):
(i) Rail freight income & related expenses are accounted for at the
time of issue of RRs by Indian Railways.
(ii) Road transportation/handling income & related expenses are
accounted for at the time of booking of containers.
(iii) Terminal service charges for empty containers are accounted for
on accrual basis.
(iv) Terminal service charges for loaded container & wharfage are
accounted for on receipt/at the time of release of containers on
"completed service contract method".
12. Claims/Counter-claims/Penalties/Awards:
Claims/counter-claims/penalties/awards are accounted for in the year of
its settlement.
13. Taxes on Income:
(i) Provision for current tax is made in accordance with the provisions
of the Income Tax Act, 1961.
(ii) Disputed income tax liabilities are accounted for on the
finalization of assessments.
14. Provisions, Contingent Liabilities & Contingent Assets:
Provisions are recognised in respect of obligations where, based on the
evidence available, their existence on the Balance Sheet date is
considered probable.
Contingent liabilities are determined on the basis of available
information. These liabilities are not provided for and disclosed by
way of notes on accounts.
Contingent assets are not recognized in the accounts.
15. Grants:
(i) Capital Grants:
Grants received towards specific fixed assets are deducted from the
gross value of the asset or capital work in progress as the case may
be. Unutilized amount out of grant received is shown as liability.
(ii) Revenue Grants:
Grants received, which are revenue in nature are credited to the
Statement of Profit & Loss. Unutilized amount out of grant received is
shown as liability.
Mar 31, 2012
1. Accounting Convention & Concepts:
The financial statements are prepared under the historical cost
convention on accrual basis, in accordance with the applicable
mandatory Accounting Standards and relevant presentation requirements
of the Companies Act, 1956. Accounting Policies not referred to
otherwise are consistent with generally accepted accounting principles.
2. Fixed Assets & Capital Work in Progress:
i) Fixed assets are stated at cost of acquisition or construction, less
accumulated depreciation. Cost of acquisition is net of interest on
capital advances and duty credits and is inclusive of freight, duties,
taxes and other incidental expenses. In respect of assets due for
capitalisation where final bills/claims are to be received/passed, the
capitalisation is based on the engineering estimates. Final
adjustments, for costs and depreciation are made retrospectively in the
year of ascertainment of actual cost and finalisation of claim.
Machinery spares which can be used only in connection with an item of
fixed asset and whose use is expected to be irregular are capitalised.
Capital work in progress includes the cost of fixed assets that are not
yet ready for their intended use, advances paid to acquire fixed assets
and the cost of assets not put to use before the Balance Sheet date.
ii) Provision for stamp duty payable on the immovable properties is
made as and when conveyance deed for the properties is executed and the
liability is ascertained.
iii) Grants received towards specific fixed assets are deducted from
the gross value of the asset or capital work in progress as the case
may be. Unutilised amount out of grant received is shown as current
liability.
3. Intangible Assets:
i) Software:
Expenditure on computer software, which is not an integral part of
hardware, is capitalised as an intangible asset. The cost of software
includes license fee and implementation cost and is capitalised in the
year of its implementation. Software is amortized over five years.
ii) Registration Fee:
The registration fee paid to Ministry of Railway (MOR) for approval for
movement of container trains on Indian Railways is capitalized as an
Intangible Asset. The registration fee is amortized over a period of 20
years.
4. Borrowing Costs:
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalized as part of the cost of such assets
and all other borrowing costs are charged to revenue. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for intended use.
5. Investments:
i) Long term investments are stated at cost. A provision for diminution
in value is made to recognise a decline other than temporary in nature.
ii) Current investments are stated at lower of cost or fair value.
6. Inventories:
Stores and spare parts are valued at cost on weighted average basis.
Provision for obsolescence is made, whenever required.
7. Depreciation/Amortization:
i) Depreciation on fixed assets including assets created on leasehold
land is provided on "Straight Line Methodà at the rates and in the
manner prescribed in Schedule XIV of the Companies Act, 1956, except
for Roads/Pavements/Boundary wall/ Warehouses and Electrical Fittings
of terminals on which depreciation has been provided @ 3.34% and 10.34%
respectively and for upgraded BFKI Wagons @ 6.79%.
ii) Leasehold land other than acquired on perpetual lease is amortized
over the period of lease. Leasehold buildings are amortized over the
period of lease or useful life of the building as per rates prescribed
under Schedule XIV, whichever is less.
(iii) Capital expenditure on enabling assets, like roads, culverts &
electricity transmissions etc., the ownership of which is not with the
Company are charged off to revenue in the accounting period of
incurrence of such expenditure. However, capital expenditure on
enabling assets, ownership of which rests with the company and which
have been created on land not belonging to the Company is written off
to the P&L Account over its approximate period of utility or over a
period of 5 years, whichever is less. For this purpose, land is not
considered to be belonging to the company, if the same is not owned or
leased/licensed to the company.
8. Impairment of Assets:
An asset is treated as impaired when the carrying amount of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Account in the year in which an asset is identified as
impaired.
9. Retirement Benefits:
i) Gratuity liability to employees is provided for on accrual basis
based on valuation done by an independent actuary as at the Balance
Sheet date. Contributions are made to approved Gratuity Fund created
in a Trust set up by the Company for this purpose.
ii) Liability for leave travel concession & leave salary payable to
employees is provided for on accrual basis based on valuation done by
an independent actuary as at the Balance Sheet date.
iii) Contribution to defined contribution plans such as Provident Fund
and Family Pension Fund are charged to the Profit & Loss Account as and
when accrued.
10. Foreign Currency Transactions:
i) Income & Expenditure denominated in foreign currencies are recorded
at the exchange rate prevailing on the date of transaction.
ii) Loans, Current liabilities and Current assets in foreign currencies
are translated at the exchange rate prevailing at the end of financial
year.
iii) Gains or losses due to foreign exchange fluctuations are
recognised in the Profit & Loss Account.
11. Income from Operations (Terminal & other Service Charges):
i) Rail freight income & related expenses are accounted for at the time
of issue of RRs by Indian Railways.
II) Road transportation/handling income & related expenses are
accounted for at the time of booking of containers.
iii) Terminal service charges for empty containers are accounted for on
accrual basis.
iv) Terminal service charges for loaded container & wharfage are
accounted for on receipt/at the time of release of containers on
"completed service contract methodÃ.
12. Claims/Counter-claims/Penalties/Awards:
Claims/counter-claims/penalties/awards are accounted for in the year of
its settlement.
13. Taxes on Income:
i) Provision for current tax is made in accordance with the provisions
of the Income Tax Act, 1961.
ii) Disputed income tax liabilities are accounted for on the
finalization of assessments.
14. Provisions, Contingent Liabilities & Contingent Assets:
Provisions are recognised in respect of obligations where, based on the
evidence available, their existence on the Balance Sheet date is
considered probable.
Contingent liabilities are determined on the basis of available
information. These liabilities are not provided for and disclosed by
way of notes on accounts.
Mar 31, 2011
1. Accounting Convention & Concepts:
The financial statements are prepared under the historical cost
convention on accrual basis, in accordance with the applicable
mandatory Accounting Standards and relevant presentation requirements
of the Companies Act, 1956. Accounting Policies not referred to
otherwise are consistent with generally accepted accounting principles.
2. Fixed Assets & Capital Work in Progress:
i) Fixed assets are stated at cost of acquisition or construction, less
accumulated depreciation. Cost of acquisition is net of interest on
capital advances and duty credits and is inclusive of freight, duties,
taxes and other incidental expenses. In respect of assets due for
capitalisation where final bills/claims are to be received/passed, the
capitalisation is based on the engineering estimates. Final
adjustments, for costs and depreciation are made retrospectively in the
year of ascertainment of actual cost and finalisation of claim.
Machinery spares which can be used only in connection with an item of
fixed asset and whose use is expected to be irregular are capitalised.
Capital work in progress includes the cost of fixed assets that are not
yet ready for their intended use, advances paid to acquire fixed assets
and the cost of assets not put to use before the Balance Sheet date.
ii) Provision for stamp duty payable on the immovable properties is
made as and when conveyance deed for the properties is executed and the
liability is ascertained.
iii) Grants received towards specific fixed assets are deducted from
the gross value of the asset or capital work in progress as the case
may be. Unutilised amount out of grant received is shown as current
liability.
3. Intangible Assets:
i) Software:
Expenditure on computer software, which is not an integral part of
hardware, is capitalised as an intangible asset. The cost of software
includes license fee and implementation cost and is capitalised in the
year of its implementation. Software is amortized over five years.
ii) Registration Fee:
The registration fee paid to Ministry of Railway (MOR) for approval for
movement of container trains on Indian Railways is capitalized as an
Intangible Asset. The registration fee is amortized over a period of 20
years.
4. Borrowing Costs:
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalized as part of the cost of such assets
and all other borrowing costs are charged to revenue. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for intended use.
5. Investments:
i) Long term investments are stated at cost. A provision for diminution
in value is made to recognise a decline other than temporary in nature.
ii) Current investments are stated at lower of cost or fair value.
6. Inventories:
Stores and spare parts are valued at cost on weighted average basis.
Provision for obsolescence is made, whenever required.
7. Depreciation/Amortization:
i) Depreciation on fixed assets including assets created on leasehold
land is provided on "Straight Line Method" at the rates and in the
manner prescribed in Schedule XIV of the Companies Act, 1956, except
for Roads/Pavements/Boundary wall/ Warehouses and Electrical Fittings
of terminals on which depreciation has been provided @ 3.34% and 10.34%
respectively and for upgraded BFKI Wagons @ 6.79%.
ii) Leasehold land other than acquired on perpetual lease is amortized
over the period of lease. Leasehold
buildings are amortized over the period of lease or useful life of the
building as per rates prescribed under Schedule XIV, whichever is less.
(iii) Capital expenditure on enabling assets, like roads, culverts &
electricity transmissions etc., the ownership of which is not with the
Company are charged off to revenue in the accounting period of
incurrence of such expenditure. However, capital expenditure on
enabling assets, ownership of which rests with the company and which
have been created on land not belonging to the Company is written off
to the P&L Account over its approximate period of utility or over a
period of 5 years, whichever is less. For this purpose, land is not
considered to be belonging to the company, if the same is not owned or
leased/licensed to the company.
8. Impairment of Assets:
An asset is treated as impaired when the carrying amount of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Account in the year in which an asset is identified as
impaired.
9. Retirement Benefits:
i) Gratuity liability to employees is provided for on accrual basis
based on valuation done by an independent actuary as at the Balance
Sheet date. Contributions are made to approved Gratuity Fund created in
a Trust set up by the Company for this purpose.
ii) Liability for leave travel concession & leave salary payable to
employees is provided for on accrual basis based on valuation done by
an independent actuary as at the Balance Sheet date.
iii) Contribution to defined contribution plans such as Provident Fund
and Family Pension Fund are charged to the Profit & Loss Account as and
when accrued.
10. Foreign Currency Transactions:
i) Income & Expenditure denominated in foreign currencies are recorded
at the exchange rate prevailing on the date of transaction.
ii) Loans, Current liabilities and Current assets in foreign currencies
are translated at the exchange rate prevailing at the end of financial
year. iii) Gains or losses due to foreign exchange fluctuations are
recognised in the Profit & Loss Account.
11. Income from Operations (Terminal & other Service Charges):
Rail Freight Income & related Expenses are accounted for at the time of
issue of RRs by Indian Railways whereas Road Transportation/Handling
Income & related Expenses are accounted for at the time of booking of
containers. Terminal service charges and wharfage are accounted for on
receipt/at the time of release of containers on "completed service
contract method".
12. Claims/Counter-claims/Penalties/Awards:
Claims/counter-claims/penalties/awards are accounted for in the year of
its settlement.
13. Taxes on Income:
i) Provision for current tax is made in accordance with the provisions
of the Income Tax Act, 1961.
Ii) Disputed income tax liabilities are accounted for on the
finalization of assessments.
14. Provisions, Contingent Liabilities & Contingent Assets:
Provisions are recognised in respect of obligations where, based on the
evidence available, their existence on the Balance Sheet date is
considered probable.
Contingent liabilities are determined on the basis of available
information. These liabilities are not provided for and disclosed by
way of notes on accounts.
Contingent assets are not recognized in the accounts.
Mar 31, 2010
1. Accounting Convention & Concepts:
The financial statements are prepared under the historical cost
convention on accrual basis, in accordance with the applicable
mandatory Accounting Standards and relevant presentation requirements
of the Companies Act, 1956. Accounting Policies not referred to
otherwise are consistent with generally accepted accounting principles.
2. Fixed Assets & Capital Workin Progress:
i) Fixed assets are stated at cost of acquisition or construction, less
accumulated depreciation. Cost of acquisition is net of interest on
capital advances and duty credits and is inclusive of freight, duties,
taxes and other incidental expenses. In respect of assets due for
capitalisation where final bills/claims are to be received/passed, the
capitalisation is based on the engineering estimates. Final
adjustments, for costs and depreciation are made retrospectively in the
year of ascertainment of actual cost and finalisation of claim.
Machinery spares which can be used only in connection with an item of
fixed asset and whose use is expected to be irregular are capitalised.
Capital work in progress includes the cost of fixed assets that are not
yet ready for their intended use, advances paid to acquire fixed assets
and the cost of assets not put to use before the Balance Sheet date.
ii) Provision for stamp duty payable on the immovable properties is
made as and when conveyance deed for the properties is executed and the
liability is ascertained.
iii) Grants received towards specific fixed assets are deducted from
the gross value of the asset or capital work in progress as the case
may be. Unutilised amount out of grant received is shown as current
liability.
3. Intangible Assets:
i) Software:
Expenditure on computer software which is not an integral part of
hardware is capitalised as an intangible asset. The cost of software
includes license fee and implementation cost and is capitalised in the
year of its implementation. Software is amortized over five years.
ii) Registration Fee:
The registration fee paid to Ministry of Railway (MOR) forapproval for
movement of containertrains on Indian Railways is capitalized as an
Intangible Asset. The registration fee is amortized overa period of 20
years.
4. Borrowing Costs:
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalized as part of the cost of such assets
and all other borrowing costs are charged to revenue. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for intended use.
5. Investments:
i) Long term investments are stated at cost. A provision for diminution
in value is made to recognise a decline otherthan temporary in nature.
ii) Current investments are stated at lower of cost or fair value.
6. Inventories:
Stores and spare parts are valued at cost on weighted average basis.
Provision for obsolescence is made, whenever required.
7. Depreciation/Amortization:
i) Depreciation on fixed assets including assets created on leasehold
land is provided on "Straight Line Methodà at the rates and in the
manner prescribed in Schedule XIV of the Companies Act, 1956, except
for Roads/Pavements/Boundary wall/ Warehouses and Electrical Fittings
of terminals on which depreciation has been provided@ 3.34% and 10.34%
respectively and for upgraded BFKI Wagons@ 6.79%.
ii) Leasehold land and residential accommodation (taken from Indian
Railways on lease) are amortised overthe period of lease.
iii) Capital expenditure on land not belonging to the Company is
written off to the Profit & Loss Account over its approximate period of
utility or over a relatively brief period not exceeding five years,
whichever is less. For this purpose, land is not considered to be
belonging to the company if the same is not owned or leased / licensed
to the company.
8. Impairment of Assets:
An asset is treated as impaired when the carrying amount of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Account in the year in which an asset is identified as
impaired.
9. Retirement Benefits:
i) Gratuity liability to employees is provided for on accrual basis
based on valuation done by an independent actuary as at the Balance
Sheet date. Contributions are made to approved Gratuity Fund created in
a Trust set up by the Company for this purpose.
ii) Liability for leave travel concession & leave salary payable to
employees is provided for on accrual basis based on valuation done by
an independent actuary as at the Balance Sheet date.
iii) Contribution to defined contribution plans such as Provident Fund
and Family Pension Fund are charged to the Profit & Loss Account as and
when accrued.
10. Foreign Currency Transactions:
i) Income & Expenditure denominated in foreign currencies are recorded
at the exchange rate prevailing on the date of transaction.
ii) Loans, Current liabilities and Current assets in foreign currencies
are translated at the exchange rate prevailing at the end of financial
year.
iii) Gains or losses due to foreign exchange fluctuations are
recognised in the Profit & Loss Account.
11. Income from Operations (Terminal & other Service Charges):
Freight, handling income & related expenses are accounted for at the
time of booking of containers. Terminal service charges and wharfage
are accounted for on receipt/at the time of release of containers on
"completed service contract methodÃ
12. Claims/Counter-claims/Penalties/Awards:
Claims/counter-claims/penalties/awards are accounted for in the year of
its settlement.
13. Taxes on Income:
i) Provision for current tax is made in accordance with the provisions
of the Income Tax Act, 1961.
ii) Deferred tax on account of timing difference between taxable and
accounting income is provided considering the tax rates and tax laws
enacted or substantively enacted by the Balance Sheet date, in
accordance with Accounting Standard-22 Accounting for Taxes on Income
issued by the Institute of Chartered Accountants of India.
14. Provisions, Contingent Liabilities & Contingent Assets:
Provisions are recognised in respect of obligations where, based on the
evidence available, their existence on the Balance Sheet date is
considered probable.
Contingent liabilities are determined on the basis of available
information. These liabilities are not provided forand disclosed byway
of notes on accounts.
Contingent assets are not recognized in the accounts.
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Container Corporation of India Ltd. Tools
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Container Corporation of India Ltd. Company Details
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Container Corporation of India Ltd. Key Financial Ratios
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Container Corporation of India Ltd. Results
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Container Corporation of India Ltd. Financial Data
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Container Corporation of India Ltd. Reports
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Container Corporation of India Ltd. Corporate Announcements
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