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Notes to Accounts of IL&FS Transportation Networks Ltd.

Mar 31, 2016

Background :

IL&FS Transportation Networks Limited ("ITNL") is a surface transportation infrastructure company incorporated in the year 2000 under the provisions of the Companies Act, 1956, by Infrastructure Leasing & Financial Services Limited, a promoter company, in order to consolidate their existing road infrastructure projects and to pursue various new project initiatives in the area of surface transportation infrastructure

ITNL is a developer, operator and facilitator of surface transportation infrastructure projects, taking projects from conceptualisation through commissioningto operations and maintenance under public to private partnership on build-operate transfer ("BOT") basis in India

1. Letter of comfort, letter of awareness and letter of financial support

a. The Company has issued letter of comfort / letter of awareness to banks and a related party in respect of loans availed by a few of its subsidiaries aggregating to Rs. 1,920.79 Crore as on March 31, 2016 (as on March 31, 2015Rs. 685.50 Crore)

b. Letter of financial support has been issued to ITNL Road Infrastructure Development Company Limited, West Gujarat Expressway Limited, Vansh Nimay Infraprojects Limited, ITNL International Pte. Ltd., Singapore, ITNL Offshore Pte. Ltd., Singapore, ITNL Africa Projects Ltd., Nigeria, ITNL International DMCC, Dubai, Sharjah General Services Company LLC, Dubai, MP Border Checkposts Development Company Limited and Thiruvanthapuram Road Development Company Limited to enable them to continue their operations and meet their financial obligations as and when they fall due

2A.Provision for doubtful loans and receivables

Provision for doubtful loans and receivables for current year represents provisions made for doubtful loans of Rs. 47.90 crore (Previous yearRs. Nil) and doubtful receivables ofRs. 67.16 crore (Previous yearRs. Nil).

3. Jointly Controlled Entities

The Company has the following Jointly Controlled Entities as on March 31, 2016 and its proportionate share in the assets, liabilities, income and expenditure of the Jointly Controlled Entities on the basis of the financial statements as at / for the year ended of those entities is given below:

4A. Foreign currency Exposures

The period end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below:

5. Lease

The Company holds certain properties under a non-cancellable operating lease. The Company''s future lease rentals under the operating lease arrangements as at the year ends are as under:

6. Segment Disclosures: The Company operates in a single business segment viz. Surface Transportation Business. Also it operates in a single geographic segment. In the absence of separate reportable business or geographic segments the disclosures required under the Accounting Standard (AS) 17 on ''Segment Reporting'' are not applicable

7. Figures for the previous year have been regrouped and reclassified wherever considered necessary to conform to the classification for the current year


Mar 31, 2015

1. Share capital

Rights of CNCRPS holders are as Follows:

The holder(s) of CNCRPS shall have no voting rights other than in respect of matters directly affecting the rights attached to the CNCRPS. In the event of any due and payable dividends on the CNCRPS remaining unpaid for a period of two years prior to the start of any General Meeting of the Equity Shareholders, the holder(s) of CNCRPS shall gain voting rights in respect of all matters placed by the Company at a General Meeting of its Equity Shareholders in accordance with the provisions of the Companies Act and the Articles of Association of the Company. In the event of winding up or repayment of capital, the holder(s) of the CNCRPS shall carry a preferential right vis-a-vis equity shareholders to be repaid the amount of paid up capital, unpaid dividends and fixed premium, in accordance with the provisions of the Companies Act and the Articles of Association of the Company. The claims of holder(s) of CNCRPS shall be subordinated to the claims of all secured and unsecured creditors of the Company but senior to equity shareholders and pari passu amongst other preference shareholders

2. Long-term Borrowings

# The Company has entered into cross currency interest rate swap on December 31,2014 for borrowing of Rs. 2,000 Million taken by the Company. The details of Swap are as under :

Swap Counter party Iiindusind Bank

Cross Currency interest rate SWAP 3 Month USD Libor 250 bps p.a. on US Rs. 31.72 Million against 10.80% p.a.on Rs. 2,000 Million

Interest payable Monthly

Maturity Date December 31, 2017

3. Trade Payables

Based on information received by the Company from its vendors, the amount of principal outstanding in respect of Micro and Small Enterprises as at Balance Sheet date covered under the Micro, Small and Medium Enterprises Development Act, 2006 is Rs. Nil. There were no delays in the payment of dues to Micro and Small Enterprises

4. Contingent Liabilities and Commitments

Rs. in Million

As at As at March March 31,2015 31,2014

(i) Contingent Liabilities (Refer footnote 1)

a) Claims against the Company not acknowledged as debts 81.20 538.90

Income tax demands contested by the Company

b) Guarantees (Refer footnote 2)

- Guarantees/counter guarantees issued to outsider in respect of group companies 16,880.72 21,531.58

- Guarantees/counter guarantees issued to outsider in respect of other than group 92.68 328.76 companies

c) During the year ended March 31,2015, the Company had assigned loans aggregating to Rs. Nil (March 31,2014 Rs. 4,507 Million ) at its book value, out of which in the case of loans aggregating Rs. Nil (March 31, 2014 Rs. 2,950 Million), the lender has a put option on the Company on specified future dates till the maturity of the loans assigned and having a recourse to the Company in case of default by the borrower on the due dates.

d) Put option on sale of investment Unascertainable Not applicable (ii) Commitments

Investment Commitments [net of advances of Rs. 356.45 Million, (As at March 31, 2014 : Rs. 890.57 Million)] 9,189.68 12,972.30

Foot Note:

1 The Company does not expect any outflow of economic resources in respect of the above and therefore no provision is made in respect thereof.

2 Certain bankers have issued guarantees which have been shown under "Guarantees/counter guarantees issued in respect of group companies" aggregating Rs. 2,011.09 Million (as at March 31,2014 : Rs. 3,684.68 Million) against a first charge on the receivables (including loans and advances) of the Company.

5. Letter of comfort, letter of awareness and letter of financial support

a. The Company has issued letter of comfort / letter of awareness in respect of loans availed by a few of its subsidiaries aggregating to Rs. 6,855 Million (Previous year Rs. 1,557 Million)

b. Letter of financial support has been issued to ITNL Road Infrastructure Development Company Limited, West Gujarat Expressway Limited, Vansh Nimay Infraprojects Limited, ITNL International Pte. Ltd. Singapore, ITNL Offshore Ptd. Ltd. Singapore, ITNL Africa Projects Ltd. Nigeria, ITNL International DMCC, Dubai and Sharjah General Services Company LLC, Dubai to enable them to continue their operations and meet their financial obligations as and when they fall due

6. Employee Benefit Obligations

(a) Defined-Contribution Plans

The Company offers its employees defined contribution plans in the form of provident fund, family pension fund and superannuation fund. Provident fund, family pension fund and superannuation fund cover substantially all regular employees. Contributions are paid during the period into separate funds under certain statutory/fiduciary-type arrangements. While both the employees and the Company pay predetermined contributions into the provident fund and pension fund, the contribution to superannuation fund are made only by the Company. The contributions are normally based on a certain proportion of the employee's salary

A sum of Rs. 27.90 Million (for the year ended March 31, 2014 : Rs. 22.59 Million) has been charged to the Statement of Profit and Loss in this respect

(b) Defined-Benefits Plans

The Company offers its employees defined-benefit plans in the form of a gratuity scheme (a lump sum amount). Benefits under the defined benefit plans are typically based on years of service rendered and the employee's eligible compensation (immediately before retirement). The gratuity scheme covers substantially all regular employees. In the case of the gratuity scheme, the Company contributes funds to the Life Insurance Corporation of India which administers the scheme on behalf of the Company. Commitments are actuarially determined at year-end. Actuarial valuation is based on "Projected Unit Credit" method. Gains and losses of changed actuarial assumptions are charged to the Statement of Profit and Loss

7. Segment Disclosures: The Company operates in a single business segment viz. Surface Transportation Business. Also it operates in a single geographic segment. In the absence of separate reportable business or geographic segments the disclosures required under the Accounting Standard (AS) 17 on 'Segment Reporting' are not applicable

8. During the year ended March 31, 2014, the Company had changed the estimates used to compute current tax, based on the recent High Court judgement relating to disallowance of expenses under section 14A of Income Tax Act, 1961 and accordingly arrived at the current tax as applicable to the year ended March 31,2012 and for the year ended March 31,2013 on the aforesaid basis. Consequently, Rs. 231.17 Million pertaining to the year ended March 31,2012 and Rs. 248.00 Million pertaining to year ended March 31,2013 are reversed in the current year and shown in Statement of Profit and Loss account as "Tax relating to earlier year". Accordingly, the profit after tax for the previous year is higher by Rs. 479.17 Million

9. Revenue from Operations for the year ended March 31,2015 includes an amount of Rs. 2,352.70 Million on account of compensation claimed by ITNL from two Special Purpose Vehicles ("SPVs") for the incremental work and related claims arising from delays due to handing over of the land for project execution. The compensation is based on the provisions in the Service Concession Agreements and is supported by the Extension of Time granted by the Independent Engineers. The claims made by ITNL on the SPV's have been based on the legal opinions obtained by the SPV's, that such claims are contractually admissible under the Service Concession Agreements entered into with Concession Granting Authorities. Costs in connection with the foregoing have been considered in recognising the above income

10. Figures for the previous years have been regrouped and reclassified wherever considered necessary to conform to the classification for the current year


Mar 31, 2014

Background

"I L&FS Transportation Networks Limited ("ITNL") is a surface transportation infrastructure company incorporated in the year 2000 under the provisions of the Companies Act, 1956, by Infrastructure Leasing & Financial Services Limited, a promoter company, in order to consolidate their existing road infrastructure projects and to pursue various new project initiatives in the area of surface transportation infrastructure. ITNL is a developer, operator and facilitator of surface transportation infrastructure projects, taking projects from conceptualisation through commissioning to operations and maintenance under public to private partnership on build-operate transfer ("BOT") basis in India"

NOTE 1 : TRADE PAYABLES

Based on information received by the Company from its vendors, the amount of principal outstanding in respect of Micro and Small Enterprises as at Balance Sheet date covered under the Micro, Small and Medium Enterprises Development Act, 2006 is Rs. Nil. There were no delays in the payment of dues to Micro and Small Enterprises

NOTE 2 : CONTINGENT LIABILITIES AND COMMITMENTS (Rs. in million)

Particulars As at As at March21, 2014 March 31,2013

(i) Contingent Liabilities (Refer footnote 1)

(a) Claims against the Company not acknowledged as debts 538.90 70.10 Income tax demands contested by the Company

(b) Guarantees (Refer footnote 2)

- Guarantees/counter guarantees issued to outsider in respect of 21,531.58 17,819.21 group companies

- Guarantees/counter guarantees issued to outsider in respect of 328.76 240.68 other than group companies

(c) Letter of financial support has been issued to ITNL Road Infrastructure Development Company Limited and to West Gujarat Expressway Limited to enable them to continue their operations and meet their financial obligation as an when they fall due

(d) During the year, the Company has assigned loans aggregating to Rs. 4,507 million at its book value, out of which in the case of loans of Rs. 2,000 million, the lender has a put option on the Company on specified future dates till the maturity of the loans assigned and in the case of loans of Rs. 2,950 million the lenders are having a recourse to the Company in case of default by the borrower on the due dates

During the previous year, the Company had assigned loans aggregating to Rs. 3,000 million at its book value, out of which in the case of loans of Rs. 1,000 million, the lender has a put option on the Company on specified future dates till the maturity of the loans assigned and in the case of loans of Rs. 2,000 million the lenders are having a recourse to the Company in case of default by the borrower on the due dates (ii) Commitments

Investment Commitments [net of advances of Rs. 890.57 million, 26,388.20 19,506.91

(As at March 31, 2013:Rs. 1,695.14 million)]

Foot Note

1. The Company does not expect any outflow of economic resources in respect of the above and therefore no provision is made in respect thereof

2. Certain bankers have issued guarantees which have been shown under "Guarantees/counter guarantees issued in respect of other companies" aggregating Rs. 3,684.68 million (as at March 31, 2013 : Rs. 1,516.02 million) against a first charge on the receivables (including loans and advances) of the Company

NOTE 3 : DERIVATIVES AND FOREIGN CURRENCY EXPOSURES

(a) The Company as a part of its strategic initiatives to consolidate/restructure its investments in surface transport sector, has made direct investments in certain special purpose entities ("SPE"s) engaged in that sector and also invested in units of a scheme of ITNL Road Investment Trust (the "Scheme") which in turn has made investments in such SPEs. Amounts invested include derivative instruments in the form of call options

Premium received by the Company towards call option sold by it had been aggregated under the head "Option Premium Liabilities" classified as a part of "Other Long Term Liabilities" and "Other Current Liabilities". Options in respect of "Option Premium Liabilities" amounting Rs. Nil (As at March 31, 2013 : Rs. 39.22 million) were to be exercised after a period of 12 months from the year end

On March 27, 2014 this call option was excercised by the holder and therefore nil liability is shown as at March 31, 2014

2. Employee Benefit Obligations

(a) Defined-Contribution Plans

The Company offers its employees defined contribution plans in the form of provident fund, family pension fund and superannuation fund. Provident fund, family pension fund and superannuation fund cover substantially all regular employees. Contributions are paid during the period into separate funds under certain statutory/fiduciary- type arrangements. While both the employees and the Company pay predetermined contributions into the provident fund and pension fund, the contribution to superannuation fund are made only by the Company. The contributions are normally based on a certain proportion of the employee''s salary

A sum ofRs. 28.91 Million (for the year ended March 31, 2013 : Rs. 25.51 Million) has been charged to the Statement of Profit and Loss in this respect

(b) Defined-Benefits Plans

The Company offers its employees defined-benefit plans in the form of a gratuity scheme (a lump sum amount). Benefits under the defined benefit plans are typically based on years of service rendered and the employee''s eligible compensation (immediately before retirement). The gratuity scheme covers substantially all regular employees. In the case of the gratuity scheme, the Company contributes funds to the Life Insurance Corporation of India which administers the scheme on behalf of the Company. Commitments are actuarially determined at year-end. Actuarial valuation is based on "Projected Unit Credit" method. Cains and losses of changed actuarial assumptions are charged to the Statement of Profit and Loss

The estimates of future salary increases considered in the actuarial valuation take into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market

The amounts of the present value of the obligation, fair value of the plan assets, surplus or deficit in the plan, experience adjustments arising on plan liabilities and plan assets for the current period and previous four annual periods are given below:

NOTE 4 Segment Disclosures: The Company operates in a single business segment viz. Surface Transportation Business. Also it operates in a single geographic segment. In the absence of separate reportable business or geographic segments the disclosures required under the Accounting Standard (AS) 17 on ''Segment Reporting'' are not applicable

NOTE 5

During the year ended March 31, 2014, the Company has changed the estimates used to compute current tax, based on the recent High Courtjudgement relating to disallowance of expenses under section 14A of Income TaxAct, 1961 and accordingly arrived at the current tax as applicable to the year ended March 31, 2012 and for the year ended March 31, 2013 on the aforesaid basis. Consequently, Rs. 231.17 million pertaining to the year ended March 31, 2012 andRs. 248.00 million pertaining to year ended March 31, 2013 are reversed in the current year and shown in Statement of Profit and Loss account as "Tax relating to earlier year". Accordingly, the profit after tax for the current year is higher byRs. 479.17 million

NOTE 6

Figures for the previous years have been regrouped and reclassified wherever considered necessary to conform to the classification for the current year


Mar 31, 2013

NOTE 1 : SIGNIFICANT ACCOUNTING POLICIES

Background :

IL&FS Transportation Networks Limited ("ITNL") is a surface transportation infrastructure company incorporated in the year 2000 under the provisions of the Companies Act, 1956, by Infrastructure Leasing & Financial Services Limited, a promoter company, in order to consolidate their existing road infrastructure projects and to pursue various new project initiatives in the area of surface transportation infrastructure. ITNL is a developer, operator and facilitator of surface transportation infrastructure projects, taking projects from conceptualisation through commissioning to operations and maintenance under public to private partnership on build- operate transfer ("BOT") basis in India

NOTE 2: TRADE PAYABLES

Based on information received by the Company from its vendors, the amount of principal outstanding in respect of Micro and Small Enterprises as at Balance Sheet date covered under the Micro, Small and Medium Enterprises Development Act, 2006 is Rs. Nil. There were no delays in the payment of dues to Micro and Small Enterprises

NOTE 3: DERIVATIVES AND FOREIGN CURRENCY EXPOSURES

a The Company as a part of its strategic initiatives to consolidate/restructure its investments in surface transport sector, has made direct investments in certain special purpose entities ("SPE"s) engaged in that sector and also invested in units of a scheme of ITNL Road Investment Trust (the "Scheme") which in turn has made investments in such SPEs. Amounts invested include deriv- ative instruments in the form of call options

Premium received by the Company towards call option sold by it have been aggregated under the head "Option Premium Liabilities" classified as a part of "Other Long Term Liabilities" and "Other Current Liabilities". Options in respect of "Option Premium Liabilities" amounting Rs. 39.22 million (As at March 31, 2012 : Rs. 39.22 million) are to be exercised after a period of 12 months from the year end

The underlying instruments in respect of the options are unquoted and the Company expects that the options shall be excercised, as these transactions have been entered into for strategic reasons. No losses have been identified in respect of the above derivatives necessitating a charge to the Statement of Profit and Loss

b Foreign currency exposures:

The period end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below:

NOTE 4: JOINTLY CONTROLLED ENTITIES

The Company has the following Jointly Controlled Entities as on March 31, 2013 and its proportionate share in the assets, liabilities, income and expenditure of the Jointly Controlled Entities on the basis of the financial statements as at / for the year ended of those entities is given below:

NOTE 5: LEASE

The Company holds certain properties under a non-cancellable operating lease. The Company''s future lease rentals under the operating lease arrangements as at the period ends are as under:

NOTE 6

Segment Disclosures: The Company operates in a single business segment viz. Surface Transportation Business. Also it operates in a single geographic segment. In the absence of separate reportable business or geographic segments the disclosures required under the Accounting Standard (AS) 17 on ''Segment Reporting'' are not applicable

NOTE 7

Figures for the previous year have been regrouped and reclassified wherever considered necessary to conform to the classification for the current year


Mar 31, 2012

* the number of shares held by IL&FS Employees welfare trust as at March 31, 2012 do not represent 5% or more of the total holding and hence, the disclosure of number of shares and percentage of total holding as at March 31, 2012 have not been given thereof

iii) Of the above 135,000,000 (As at March 31, 2011 : 135,000,000) shares are held by the holding company viz. infrastructure Leasing & Financial Services Limited ("IL&FS") and 2,440,534 (As at March 31, 2011 : Nil) shares are held by a fellow subsidiary viz. IL&FS Financial Services Limited

FOOT NOTE:

1) the Company has not recognized any deferred tax asset against provision created for diminution in value of investments in absence of virtual certainty of future taxable capital gains against which the deferred tax asset could be offset

2) Deferred tax charge (net) during the year includes deferred tax charge of Rs 14.12 million on account of deferred tax liability created during the year which has been directly adjusted against Foreign Currency translation reserve recognized in respect of the foreign exchange translation differences on the Company's receivables which are regarded as an extension to the Company's net investments in a foreign entity and have not been included above

FOOT NOTE

Other payables includes deferred premium on forward contract of Rs 31.53 million (As at March 31, 2011 : Rs Nil) and statutory dues payable of Rs 300.83 million (As at March 31, 2011 : Rs 196.87 million)

NOTE 1 : TRADE PAYABLES

According to the records available with the company, there were no dues to Micro and Small Enterprises as defined under the Micro, Small and Medium Enterprises Development Act 2006. Hence, no disclosures are to be given in respect thereof

Foot Notes

1 The Company has given non-disposal undertakings to the lenders and / or equity investors of certain infrastructure companies promoted by it with regard to its investments in the equity share capital of these companies as a part of promoter's undertaking to such lenders and / or equity investors. Also, the Company has given non-disposal undertakings to the grantors of the Concession to certain infrastructure companies promoted by the Company with regard to its investments in the equity share capital of these companies

2 The Company has pledged 171,959 (As at March 31, 2011-171,959) equity shares representing 51% of the overall shareholding in Elsamex S.A., in favor of certain lenders for a Term Loan facility availed by Elsamex S.A.

3 The Company has pledged 14,300,000 (As at March 31, 2011-9,000,000) shares of Vansh Nimay infraprojects Limited ("Borrower") with IL&FS Trust Company Limited ("Security Trustee") to secure the dues of the Borrower including without limitation all principal amounts, interest expenses, penalties, costs, fees, etc payable by the Borrower in relation to the facility extended by the Consortium of Financial institutions and Banks under the Pooled Municipal Debt Obligation Facility ("PMDO")

4 The Company's investment in "Covered Warrants" aggregating to Rs 1,693.00 million (As at March 31, 2011 Rs 648.00 million) issued by infrastructure Leasing & Financial Services Limited ("IL&FS") are variable interest debt instruments under which the holder is entitled to a proportionate share of the dividend, if any, declared by Road infrastructure Development Company of Rajasthan Limited ("RIDCOR"), Jharkhand Accelerated Road Development Company Limited ("JARDCL"), Chhatisgarh Highways Development Company Limited ("CHDCL") and Jharkhand Road Projects implementation Company Limited ("JRPICL") on the equity shares held by IL&FS as well as the interest granted by RIDCOR on the Fully Convertible Debentures ("FCDs") held by IL&FS. However, the Company is not entitled to rights and privileges, which IL&FS enjoys as a shareholder / debenture holder. The instruments are unsecured

5 The Company's investment in redeemable / optionally convertible cumulative preference shares of West Gujarat Expressway Limited ("WGEL") are convertible, at the option of the Company, into 1 equity share and carry a coupon of 2% per annum, accrued annually in arrears ("Coupon"). An additional coupon consisting of 95% of the balance distributable profits, that may be available with WGEL after it has met all other obligations, would accrue on the said preference shares ("Additional Coupon")

6 The Company's investments in compulsorily convertible preference shares of Rapid Metrorail Gurgaon Limited are fully and compulsorily convertible into equity shares within 90 days from achieving the commercial operation date of the project

Foot Note

As required under the restructuring package of Gujarat Road and infrastructure company Limited ("GRICL"), approved by the corporate Debt Restructuring cell on June 17, 2004, the company as one of the promoters of GRICL advanced Rs 600.00 million towards Preference Share capital. Out of the above advance, Rs 150.00 million was to be applied against issue of 1% Non cumulative convertible Preference Shares and Rs 450.00 million against issue of 8% Redeemable convertible Preference Shares. GRICL proposes to convert this advance into subordinated debt. Pending completion of the process for the conversion, the company has classified the amount as "Advance towards Share Application Money"

NOTE 2 : CONTINGENT LIABILITIES AND COMMITMENTS

Rs.in million

As at As at

Particulars March 31, 2012 March 31, 2011

(i) Contingent Liabilities (refer foot note 1)

a) Claims against the Company not acknowledged as debts income tax 12.92 25.71 demands contested by the Company

b) Guarantees

Guarantees/counter guarantees issued in respect of borrowing facilities 12,321.95 4,888.63 of subsidiary companies (refer foot note no.2)

(ii) Commitments

a) Estimated amount of contracts remaining to be executed on capital - 2.13 account and not provided for (net of advances)

b) Exercise price payable in respect of call option contracts - 1.25 (refer note no. 22)

c) investment Commitments [net of advances of Rs 2,173.08 million, 11,757.95 6,963.12 (As at March 31, 2011 : Rs.2,321.96 million)]

Foot Note

1) The Company does not expect any outflow of economic resources in respect of the above and therefore no provision is made in respect thereof

2) Certain bankers have issued guarantees which have been shown under "Guarantees/counter guarantees issued in respect of borrowing facilities of subsidiary companies" aggregating Rs 1,480.05 million (as at March 31, 2011 : Rs 812.94 million) against a first charge on the receivables (including loans and advances) of the company

NOTE 3 : DERIVATIVES AND Foreign CURRENCY EXPOSURES

a) the Company as a part of its strategic initiatives to consolidate/restructure its investments in surface transport sector, has made direct investments in certain special purpose entities ("SPE"s) engaged in that sector and also invested in units of a scheme of ITNL Road investment Trust (the "Scheme") which in turn has made investments in such SPEs. Amounts invested include derivative instruments in the form of call options

Premium received by the company towards call option sold by it have been aggregated under the head "Option Premium Liabilities" classified as a part of "Other Long term Liabilities". conversely, premiums paid by the company towards call options purchased by it have been aggregated under the head "Option Premium" and classified as a part of "Short-term Loans and Advances". Options in respect of "Option Premium Liabilities" amounting Rs 39.22 million (As at March 31, 2011 : Rs 39.22 million) are to be exercised after a period of 12 months from the period end the underlying instruments in respect of the options are unquoted and the company intends to exercise the option, as these transactions have been entered into for strategic reasons. No losses have been identified in respect of the above derivatives necessitating a charge to the Statement of Profit and Loss. the aggregate exercise price payable is included as part of the company's commitments (Refer note no. 20)

Foot Note

1) Employee cost is net of salaries of Rs 16.73 million (previous year : Rs 20.40 million), and contribution to provident and other funds of Rs 1.50 million (previous year : Rs 1.15 million) towards amounts recovered / recoverable in respect of staff on deputation with other entities

2 Employee Benefit obligations

(a) Defined-Contribution Plans

The Company offers its employees defined contribution plans in the form of provident fund, family pension fund and superannuation fund. Provident fund, family pension fund and superannuation fund cover substantially all regular employees. Contributions are paid during the period into separate funds under certain statutory/fiduciary-type arrangements. While both the employees and the Company pay predetermined contributions into the provident fund and pension fund, the contribution to superannuation fund are made only by the Company. The contributions are normally based on a certain proportion of the employee's salary

A sum of Rs 23.84 million (previous year Rs 19.87 million) has been charged to the Statement of Profit and Loss in this respect

(b) Defined-Benefits Plans

The Company offers its employees defined-benefit plans in the form of a gratuity scheme (a lump sum amount). Benefits under the defined benefit plans are typically based on years of service rendered and the employee's eligible compensation (immediately before retirement). The gratuity scheme covers substantially all regular employees. in the case of the gratuity scheme, the Company contributes funds to the Life insurance Corporation of india which administers the scheme on behalf of the Company. Commitments are actuarially determined at year-end. Actuarial valuation is based on "Projected Unit Credit" method. Gains and losses of changed actuarial assumptions are charged to the Statement of Profit and Loss

NOTE 4 :

consequent to the NOTIFICATION NO. S.O. 447(E), dated 28-2-2011 [AS AMENDED BYNOTIFICATION NO. F.NO. 2/6/2008-cL-V, DATED 30-3-2011 ] the above financial statements have been presented in accordance with the Revised Schedule Vi. As required under the said notification corresponding figures for the previous year have been reclassified and presented in accordance with the current year presentation

 
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