Mar 31, 2016
1. SIGNIFICANT ACCOUNTING POLICIES
i) Basis of Accounting
The financial statements are prepared under the Historical Cost Conventions on the basis of Going Concern and as per applicable Indian Accounting Standards notified under relevant provisions of The Companies Act, 2013.
ii). Use of estimates
The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference, if any, between the actual results and estimates is recognized in the year in which the results are known / materialized .
iii). Revenue
Revenue is recognized in accounts in accordance with Accounting Standard-7 ''Accounting for Construction Contracts''. The method of recognition is on percentage completion basis. Revenue is recognized under Percentage Completion Method on the basis of proportion that contract costs incurred for work performed up to the reporting date bears to the estimated total contract costs.
Revenue from ship repair is recognized on the basis of job completion.
Dividend income on investment is accounted for in the year in which the right to receive the payment is established.
Interest income is recognized on the time proportion basis.
iv). Fixed Assets Tangible Assets:
Fixed Assets are recorded at Cost. Cost is purchase cost and in the case of Freehold Land, includes development cost incurred, together with all incidental costs of acquisition, borrowing costs and other related internal costs and is netted of for Cenvat and Value Added Tax.
Profit/Loss on disposal of fixed assets is recognized in the Statement of Profit and Loss.
Intangible Assets:
Intangible assets are recognized and accounted at cost in accordance with Accounting Standard-26 ''Intangible Assets''.
v). Capital Work In Progress
All expenditure, relating to development of land, buildings, dry docks and plant & machinery etc. are accumulated and shown as capital work-in-progress till the completion of such activities. Capital advances are presented under loans and advances
vi). Investments
Long Term investments are stated at cost. Cost includes incidental expenses of acquisition. Decline in value of investment other than of temporary nature is recognized in Statement of Profit and Loss.
vii). Borrowing costs
Borrowing Costs attributable to the acquisition and construction of the Qualifying Assets, which take substantial period of time to get ready for their intended use, are capitalized as part of the cost of respective assets up to the date when such assets are ready for their intended use. Other Borrowing costs are charged to the Profit and Loss account.
viii). Depreciation and Amortization
a) Freehold land is not depreciated Leasehold land is amortized equally over the period of lease.
b) Dry Docks (included in Plant & Machinery) and Dry Docks Civil Works (included in Factory Building) and Jetty are depreciated on Straight Line Method as per estimated useful life of the asset prescribed in Schedule II to the Companies Act, 2013.
c) Other assets are depreciated on Written Down Value Method as per estimated useful life of the asset prescribed in Schedule II to the Companies Act, 2013.
d) Depreciation on additions / deletions to Fixed Assets made during the year is provided on pro-rata basis from or up to date of such additions / deletions as the case may be.
e) Depreciation on amounts added on revaluation is recouped from Revaluation Reserve
f) Intangible assets are stated at cost less accumulated amortization and are amortized over a period of five years.
ix). Impairment of Assets
An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. The company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired and if such indication exists, the carrying value of such asset is reduced to its recoverable amount and a provision is made for such impairment loss in the profit and loss account. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount
x). Employees'' Benefits
Provident Fund: Provident Fund contributions are made as per a defined contribution scheme and the contribution of company is charged to Profit and Loss account of the year when become due. The company has no other obligation other than to contribute and deposit the contribution to respective authorities.
Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.
Long term employee benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of long term benefits are charged to the Profit and Loss account.
xi). Valuation of Inventory
Inventories of spares, consumables, components are valued at lower of cost and net realizable value. Cost represents purchase cost and other incidental costs, if any. Cost of inventories is computed on Weighted Average/ FIFO basis. Finished goods are valued at lower of cost and net realizable value.
xii). Work in Progress and Cost Allocation
Each construction contract is considered as a cost center and all costs directly identifiable to the Contract are charged on actual basis. Indirect miscellaneous costs are also allocated to the various contracts using appropriate overhead recovery method. Contract work-in-progress is valued at cost, including therein profit or loss arrived at in accordance of Accounting Standard -7 ''Accounting for Construction Contracts''
xiii). Foreign Currency Transactions
Transactions in Foreign Currencies are recorded at the exchange rate prevailing on the date of the transactions. Monetary assets and liabilities are translated at the yearend using closing rate if remain unsettled at the year end. Non monetary foreign currency items are carried at cost.
The resulting gain or loss on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.
The Company has w.e.f. 07th December,2006 chosen to apply notification issued by Companies (Accounting Standard) Amendment Rules 2011 GSR 913 (E) & 914 (E) dated 29.12.2011 as regards monetary long term assets and liabilities. Consequently, the resulting gain or loss on account of exchange difference on settlement or on translation is so far as they relate to depreciable assets is added or deducted from the cost of the asset.
xiv). Derivative Accounting
The Institute of Chartered Accountants of India has, in 2008, issued an announcement on ''Accounting for Derivatives'' inter alia requiring provision for losses on all derivative contracts outstanding at the balance sheet date by marking them to market keeping in view the principle of prudence, other than for forward contracts to which Accounting Standard (AS) 11- ''The Effect of Change in Foreign Exchange Rates'' is applicable.
xv). Government Subsidy
Government subsidy related to shipbuilding contracts are recognized on compliance with the relevant conditions and is recognized in the Statement of Profit and Loss and presented under ''Revenue from Operations''.
xvi). Operating Leases
Leases where the less or effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease payments / receipts are recognized as an expense / income in the Statement of Profit and Loss on a straight-line basis over the lease term.
xvii) Provisions for Current and Deferred Tax
Provision for Current Tax is made on the basis of taxable income under the provision of the Income Tax Act, 1961.
Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.
Deferred tax assets relating to unabsorbed depreciation/business losses are recognized and carried forward to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.
Other deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.
Minimum Alternate Tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax. The company recognizes MAT credit available as an asset only to the extent there is convincing evidence that the company will pay normal income tax during the specified period, i.e., the period for which MAT Credit is allowed to be carried forward. In the year in which the Company recognizes MAT Credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961, the said asset is created by way of credit to the statement of Profit and Loss and shown as âMAT Credit Entitlement.â The Company reviews the âMAT Credit Entitlementâ asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the sufficient period.
xviii). Provisions, Contingent Liabilities and Contingent Assets
A provision is made based on reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities, if material, are disclosed in notes forming part of financial statements. Contingent Assets are not recognized/ disclosed.
i) The Company has two classes of shares referred to as Equity Shares and Compulsorily Convertible Preference Shares (CCPS) having par value of Rs 10/- respectively. Each holder of equity share(s) is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive the remaining assets of the company after distribution of all preferential amounts.
ii) Pursuant to the scheme of CDR, the company has alloted total 3,109,047 equity shares of Rs. 10 /- each at a premium of Rs. 265.92 per equity shares to the CDR lenders towards conversion of the Funded interest Term Loan (FITL) / Interest on FITL till date.
iii) Pursuant to the scheme of CDR, the Company has allotted total 33,36,46,056 of 0.01 % Compulsorily Convertible Preference Shares (CCPS) of Face Value Rs.10/- each and have been issued to CDR lenders towards conversion of the Funded interest Term Loan (FITL) / Interest on FITL,if any till date. These CCPS were to be converted in Equity Shares by 26th March, 2016 being last entitlement date but due to restraint by High Court Order dated 29th September, 2015 from altering Capital Structure, the same were not converted.
iv) None of the above shares are reserved for issue under options and contract / commitments for sale of shares or disinvestment.
v) During the year , the company ceased to be a subsidiary of ABG International Pvt. Ltd.
vi) Shares alloted , as fully paid up, pursuant to contract(s) without payment being effected in cash / bonus shares /bought back / forfeited/ calls unpaid in the previous 5 years - NIL
The above debentures were falling due for repayment till 31st March 2016 amounting to Rs. 6,638.93 lacs subsequent to restructuring terms of repayment by the debenture holders. In view of sec 71 of the Companies Act, 2013 read with Rule 18 of the Companies (Share Capital and Debentures) Rule, 2014, the Company was required to invest 15% of the said amount in specified securities. Due to liquidity constraints , the company has not deposited the 15% amount.
Mar 31, 2015
I). Basis of Accounting
The financial statements are prepared under the Historical Cost
Conventions on the basis of Going Concern and as per applicable Indian
Accounting Standards notified under relavant provisions of The
Companies Act, 2013.
ii). Use of estimates
The preparation of financial statements requires the management of the
company to make estimates and assumptions that affect the reported
amount of assets and liabilities on the date of financial statements
and the reported amount of revenues and expenses during the reporting
period. Difference, if any, between the actual results and estimates is
recognised in the year in which the results are known / materialized .
iii). Revenue
Revenue is recognized in accounts in accordance with Accounting
Standard-7 'Accounting for Construction Contracts'. The method of
recognition is on percentage completion basis. Revenue is recognised
under Percentage Completion Method on the basis of proportion that
contract costs incurred for work performed up to the reporting date
bears to the estimated total contract costs.
Revenue from ship repair is recognised on the basis of job completion.
Dividend income on investment is accounted for in the year in which the
right to receive the payment is established.
Interest income is recognised on the time proportion basis.
iv). Fixed Assets
Tangible Assets:
Fixed Assets are recorded at Cost. Cost is purchase cost and in the
case of Freehold Land, includes development cost incurred, together
with all incidental costs of acquisition, borrowing costs and other
related internal costs and is netted of for Cenvat and Value Added Tax.
Profit/Loss on disposal of fixed assets is recognised in the
Statement of Profit and Loss.
Intangible Assets:
Intangible assets are recognized and accounted at cost in accordance
with Accounting Standard-26 'Intangible Assets'.
v). Capital Work In Progress
All expenditure, relating to development of land, buildings, dry docks
and plant & machinery etc. are accumulated and shown as capital
work-in-progress till the completion of such activities. Capital
advances are presented under loans and advances .
vi). Investments
Long Term investments are stated at cost. Cost includes incidental
expenses of acquisition. Decline in value of investment other than of
temporary nature is recognised in Statement of Profit and Loss.
vii). Borrowing costs
Borrowing Costs attributable to the acquisition and construction of the
Qualifying Assets, which take substantial period of time to get ready
for their intended use, are capitalized as part of the cost of
respective assets up to the date when such assets are ready for their
intended use. Other Borrowing costs are charged to the Profit and Loss
account.
viii). Depreciation and Amortisation
a) Freehold land is not depreciated. Leasehold land is amortised
equally over the period of lease.
b) Dry Docks (included in Plant & Machinery) and Dry Docks Civil Works
(included in Factory Building) and Jetty are depreciated on Straight
Line Method as per estimated useful life of the asset prescribed in
Schedule II to the Companies Act, 2013.
c) Other assets are depreciated on Written Down Value Method as per
estimated useful life of the asset prescribed in Schedule II to the
Companies Act, 2013.
d) Depreciation on additions / deletions to Fixed Assets made during
the year is provided on pro-rata basis from or up to date of such
additions / deletions as the case may be.
e) Depreciation on amounts added on revaluation is recouped from
Revaluation Reserve
f) Intangible assets are amortised over a period of five years
ix). Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. The company assesses at each Balance
Sheet date whether there is any indication that any asset may be
impaired and if such indication exists, the carrying value of such
asset is reduced to its recoverable amount and a provision is made for
such impairment loss in the profit and loss account. The impairment
loss recognized in prior accounting period is reversed if there has
been a change in the estimate of recoverable amount
x). Employees' Benefits
Provident Fund: Provident Fund contributions are made as per a defined
contribution scheme and the contribution of company is charged to
Profit and Loss account of the year when become due. The company has no
other obligation other than to contribute and deposit the contribution
to respective authorities.
NOTES FORMING PART OF FINANCIAL STATEMENTS AS AT 31st MARCH, 2015
Short term employee benefits are recognized as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related service is rendered.
Long term employee benefits are recognized as an expense in the
Statement of Profit and Loss for the year in which the employee has
rendered services. The expense is recognized at the present value of
the amount payable determined using actuarial valuation techniques.
Actuarial gains and losses in respect of long term benefits are
charged to the Profit and Loss account.
xi). Valuation of Inventory
Inventories of spares, consumables, components are valued at lower of
cost and net realizable value. Cost represents purchase cost and other
incidental costs, if any. Cost of inventories is computed on Weighted
Average and specific inventory on specific identification basis.
Finished goods are valued at lower of cost and net realisable value.
xii). Work in Progress and Cost Allocation
Each construction contract is considered as a cost center and all costs
directly identifiable to the Contract are charged on actual basis.
Indirect miscellaneous costs are also allocated to the various
contracts using appropriate overhead recovery method. Contract
work-in-progress is valued at cost, including therein profit or loss
arrived at in accordance of Accounting Standard -7 'Accounting for
Construction Contracts'
xiii). Foreign Currency Transactions
Transactions in Foreign Currencies are recorded at the exchange rate
prevailing on the date of the transactions. Monetary assets and
liabilities are translated at the year end using closing rate if remain
unsettled at the year end. Non monetary foreign currency items are
carried at cost.
The resulting gain or loss on account of exchange difference either on
settlement or on translation is recognised in the Statement of Profit
and Loss.
The Company has w.e.f. 07th December,2006 chosen to apply notification
issued by Companies (Accounting Standard) Amendment Rules 2011 GSR 913
(E) & 914 (E) dated 29.12.2011 as regards monetary long term assets and
liabilities. Consequently, the resulting gain or loss on account of
exchange difference on settlement or on translation is so far as they
relate to depreciable assets is added or deducted from the cost of the
asset.
xiv). Derivative Accounting
The Institute of Chartered Accountants of India has, in 2008, issued an
announcement on 'Accounting for Derivatives' inter alia requiring
provision for losses on all derivative contracts outstanding at the
balance sheet date by marking them to market keeping in view the
principle of prudence, other than for forward contracts to which
Accounting Standard (AS) 11- 'The Effect of Change in Foreign Exchange
Rates' is applicable.
xv). Government Subsidy
Government subsidy related to shipbuilding contracts are recognized on
compliance with the relevant conditions and is recognized in the
Statement of Profit and Loss and presented under 'Revenue from
Operations'.
xvi). Operating Leases
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets are classified as
operating leases. Operating lease payments / receipts are recognized as
an expense / income in the Statement of Profit and Loss on a
straight-line basis over the lease term.
xvii). Provisions for Current and Deferred Tax
Provision for Current Tax is made on the basis of taxable income under
the provision of the Income Tax Act, 1961.
"Deferred tax is recognized on timing differences between the
accounting income and the taxable income for the year and quantified
using the tax rates and laws enacted or substantively enacted as on the
Balance Sheet date."
Deferred tax assets relating to unabsorbed depreciation / business
losses are recognized and carried forward to the extent there is
virtual certainty that sufficent future taxable income will be
available against which such deferred tax assets can be realised.
Other deferred tax assets are recognized and carried forward to the
extent that there is a reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realised.
Minimum Alternate Tax (MAT) paid in a year is charged to the Statement
of Profit and Loss as current tax. The company recognizes MAT credit
available as an asset only to the extent there is convincing evidence
that the company will pay normal income tax during the specified
period, i.e., the period for which MAT Credit is allowed to be carried
forward. In the year in which the Company recognizes MAT Credit as an
asset in accordance with the Guidance Note on Accounting for Credit
Available in respect of Minimum Alternate Tax under the Income Tax Act,
1961, the said asset is created by way of credit to the statement of
Profit and Loss and shown as "MAT Credit Entitlement." The Company
reviews the "MAT Credit Entitlement" asset at each reporting date and
writes down the asset to the extent the company does not have
convincing evidence that it will pay normal tax during the sufficient
period.
xviii). Provisions, Contingent Liabilities and Contingent Assets
A provision is made based on reliable estimate when it is probable that
an outflow of resources embodying economic benefits will be required
to settle an obligation. Contingent liabilities, if material, are
disclosed in notes forming part of financial statements. Contingent
Assets are not recognized/ disclosed.
a) The Company has two classes of shares referred to as Equity Shares
and Compulsorily Convertible Preference Shares (CCPS) having par value
of Rs 10/- respectively. Each holder of equity share(s) is entitled to
one vote per share. In the event of liquidation of the company, the
holders of equity shares will be entitled to receive the remaining
assets of the company after distribution of all preferential amounts.
The holders of CCPS will be entitled to apply for equity shares of the
Company on Entitlement Date as per Special Resolutions passed by the
shareholders through Postal Ballott on 27th September, 2014 and as
amended vide Special Resolution passed through Postal Ballott on 29th
December, 2014 and the equity shares shall be allotted at the minimum
price determined pursuant to Regulation 76(1) of SEBI ICDR Regulations,
2009. Hence the total number of Equity Shares assuming full conversion
shall be determined as per Revelant date being the date 30 days prior
to the Entitlement date.
b) None of the above shares are reserved for issue under options and
contract / commitments for sale of shares or disinvestment.
c) 31211040 (P.Y.34212057) Equity Shares of Rs.10/- each are held by the
holding company ABG International Pvt. Ltd.
d) Shares alloted , as fully paid up, pursuant to contract(s) without
payment being effected in cash / bonus shares /bought back / forfeited/
calls unpaid in the previous 5 years - NIL
e) Pursuant to the scheme of CDR , the company has alloted total
29,17,768 nos. of equity shares of Rs. 10 /-each at a premium of Rs. 265.92
per equity shares to the CDR lenders towards conversion of the Funded
interest Term Loan (FITL)/Interest on FITL.
f) Pursuant to the scheme of CDR, the Company has allotted total
25,70,93,339 Nos. of 0.01 % Compulsorily Convertible Preference Shares
(CCPS) of Face Value Rs.10/- each have been issued to CDR lenders towards
conversion of the Funded interest Term Loan (FITL)/ Interest on FITL..
g) Shareholders holding above 5% Equity Shares with voting rights in
the company.
Out of the above debentures, debentures were falling due for repayment
till 31st March 2015 amounting to Rs. 50.00 crores subsequent to
restructuring terms of repayment by the debenture holders In view of
sec 71 of the Companies Act, 2013 read with Rule 18 of the Com- panies
(Share Capital and Debentures) Rule, 2014, the Company was required to
invest 15% of the said amount in specified securities. In view of
management the said amount need to be deposited on maturity and not on
restructuring of repayment term for debentures already matured in
earlier years Due to liquidity constraints , the company has not
deposited the 15% amount even if a contrary view is taken.
Mar 31, 2014
I). Basis of Accounting
The financial statements are prepared under the Historical Cost
Conventions on the basis of Going Concern and as per applicable Indian
Accounting Standards notified under section 211 (3C) of The Companies
Act, 1956.
ii). Use of estimates
The preparation of financial statements requires the management of the
company to make estimates and assumptions that affect the reported
amount of assets and liabilities on the date of financial statements
and the reported amount of revenues and expenses during the reporting
period. Difference, if any, between the actual results and estimates is
recognised in the year in which the results are known / materialized .
iii). Revenue
Revenue is recognized in accounts in accordance with Accounting
Standard-7 ''Accounting for Construction Contracts'' issued by Institute
of Chartered Accountants of India. The method of recognition is on
percentage completion basis. Revenue is recognised under Percentage
Completion Method on the basis of proportion that contract costs
incurred for work performed up to the reporting date bears to the
estimated total contract costs.
Revenue from ship repair is recognised on the basis of job completion.
iv). Fixed Assets Tangible Assets:
Fixed Assets are recorded at Cost. Cost is purchase cost and in the
case of Freehold Land, includes development cost incurred, together
with all incidental costs of acquisition, borrowing costs and other
related internal costs and is netted of for Cenvat and Value Added Tax.
Profit/Loss on disposal of fixed assets is recognised in the Statement
of Profit and Loss.
Intangible Assets:
Intangible assets are recognized and accounted at cost in accordance
with Accounting Standard-26 ''Intangible Assets'' issued by Institute of
Chartered Accountants of India.
v). Capital Work In Progress
All expenditure, relating to development of land, buildings, dry docks
and plant & machinery etc. are accumulated and shown as capital
work-in-progress till the completion of such activities. Capital
advances are presented under loans and advances
vi). Investments
Long Term investments are stated at cost. Cost includes incidental
expenses of acquisition. Decline in value of investment other than of
temporary nature is recognised in Statement of Profit and Loss.
vii). Borrowing costs
Borrowing Costs attributable to the acquisition and construction of the
Qualifying Assets, which take substantial period of time to get ready
for their intended use, are capitalized as part of the cost of
respective assets up to the date when such assets are ready for their
intended use. Other Borrowing costs are charged to the Profit and Loss
account.
viii). Depreciation and Amortisation
a) Freehold land is not depreciated. Leasehold land is amortised
equally over the period of lease.
b) Dry Docks (included in Plant & Machinery) and Dry Docks Civil Works
(included in Factory Building) and Jetty are depreciated on Straight
Line Method in accordance with Accounting Standard - 6 ''Depreciation
Accounting'' of the Institute of Chartered Accountants of India at the
rates prescribed in Schedule XIV to the Companies Act, 1956.
c) Other assets are depreciated on Written Down Value Method at the
rates prescribed in Schedule XIV to the Companies Act, 1956.
d) Depreciation on additions / deletions to Fixed Assets made during
the year is provided on pro-rata basis from or up to date of such
additions / deletions as the case may be.
e) Depreciation on amounts added on revaluation is recouped from
Revaluation Reserve
f) Intangible assets are stated at cost less accumulated amortisation
and are amortised over a period of five years.
ix). Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. The Company assesses at each Balance
Sheet date whether there is any indication that any asset may be
impaired and if such indication exists, the carrying value of such
asset is reduced to its recoverable amount and a provision is made for
such impairment loss in the profit and loss account. The impairment
loss recognized in prior accounting period is reversed if there has
been a change in the estimate of recoverable amount
x). Employees'' Benefits
Provident Fund: Provident Fund contributions are made as per a defined
contribution scheme and the contribution of company is charged to
Profit and Loss account of the year when become due. The Company has no
other obligation other than to contribute and deposit the contribution
to respective authorities.
Short term employee benefits are recognized as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related service is rendered.
Long term employee benefits are recognized as an expense in the
Statement of Profit and Loss for the year in which the employee has
rendered services. The expense is recognized at the present value of
the amount payable determined using actuarial valuation techniques.
Actuarial gains and losses in respect of long term benefits are charged
to the Profit and Loss account.
xi). Valuation of Inventory
Inventories of spares, consumables, components are valued at lower of
cost and net realizable value. Cost represents purchase cost and other
incidental costs, if any. Cost of inventories is computed on Weighted
Average/ FIFO basis. Finished goods are valued at lower of cost and net
realisable value.
xii). Work in Progress and Cost Allocation
Each construction contract is considered as a cost center and all costs
directly identifiable to the Contract are charged on actual basis.
Indirect miscellaneous costs are also allocated to the various
contracts using appropriate overhead recovery method. Contract
work-in-progress is valued at cost, including therein profit or loss
arrived at in accordance of Accounting Standard -7 ''Accounting for
Construction Contracts''
xiii). Foreign Currency Transactions
Transactions in Foreign Currencies are recorded at the exchange rate
prevailing on the date of the transactions. Monetary assets and
liabilities are translated at the year end using closing rate if remain
unsettled at the year end. Non monetary foreign currency items are
carried at cost.
The resulting gain or loss on account of exchange difference either on
settlement or on translation is recognised in the Statement of Profit
and Loss.
The Company has w.e.f. 07th December,2006 chosen to apply notification
issued by Companies (Accounting Standard) Amendment Rules 2011 GSR 913
(E) & 914 (E) dated 29.12.2011 as regards monetary long term assets and
liabilities. Consequently, the resulting gain or loss on account of
exchange difference on settlement or on translation is so far as they
relate to depreciable assets is added or deducted from the cost of the
asset.
xiv). Derivative Accounting
The Institute of Chartered Accountants of India has, in 2008, issued an
announcement on ''Accounting for Derivatives'' inter alia requiring
provision for losses on all derivative contracts outstanding at the
balance sheet date by marking them to market keeping in view the
principle of prudence, other than for forward contracts to which
Accounting Standard (AS) 11- ''The Effect of Change in Foreign Exchange
Rates'' is applicable. The Company has entered into Forward Contracts to
hedge a firm commitment or a highly probable forecast transaction to
which AS-11 is not applicable and hence, the Company has applied
aforesaid announcement.
xv). Government Subsidy
Government subsidy related to shipbuilding contracts are recognized on
compliance with the relevant conditions and is recognized in the
Statement of Profit and Loss and presented under ''Revenue from
Operations''.
xvi). Operating Leases
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets are classified as
operating leases. Operating lease payments / receipts are recognized as
an expense / income in the Statement of Profit and Loss on a
straight-line basis over the lease term.
xvii). Provisions for Current and Deferred Tax
Provision for Current Tax is made on the basis of taxable income under
the provision of the Income Tax Act, 1961.
Deferred Tax resulting from "timing differences" between book and
taxable profit is accounted for using the tax rates and laws that have
been enacted or substantively enacted as on the balance sheet date. The
deferred tax asset is recognised and carried forward only to the extent
that there is a reasonable certainty that the asset will be realised in
future.
In accordance with the guidance note issued by Institute of Chartered
Accountants of India, the Company recognises MAT Credit as an asset
only to the extent ,the probability exists that the Company will become
liable to pay normal Income Tax during the specified period as per
provision of the Income Tax Act, 1961.
xviii). Provisions, Contingent Liabilities and Contingent Assets
A provision is made based on reliable estimate when it is probable that
an outflow of resources embodying economic benefits will be required to
settle an obligation. Contingent liabilities, if material, are
disclosed in notes forming part of financial statements. Contingent
Assets are not recognized/ disclosed.
a) During the year the company has increased its authorised capital
vide shareholder resolution in Extra Ordinary General Meeting held on
29th March 2014. Registration of the same with the Registering
authority is pending.
b) The Company has only one class of shares referred to as Equity
Shares having par value of Rs 10/-. Each holder of equity share(s) is
entitled to one vote per share. In the event of liquidation of the
company, the holders of equity shares will be entitled to receive the
remaining assets of the company after distribution of all preferential
amounts. The distribution will be in proportion of the number of equity
shares held by the shareholders.
c) None of the above shares are reserved for issue under options and
contract / commitments for sale of shares or disinvestment.
d) 34212057 (P.Y.33648204 ) Equity Shares of Rs.10/- each are held by
the holding company ABG International Pvt. Ltd, as per dematerialised
holding statement and includes shares pending for registration.
31605002 equity shares are pledged with lenders
e) Shares alloted, as fully paid up, pursuant to contract(s) without
payment being effected in cash / bonus shares /bought back / forfeited/
calls unpaid in the previous 5 years - NIL
Mar 31, 2012
I) Basis of Accounting
The financial statements are prepared under the Historical Cost
Conventions on the basis of Going Concern and as per applicable
Indian Accounting Standards notified under section 211 (3C) of The
Companies Act, 1956
ii) Use of estimates
The preparation of financial statements requires the management of the
company to make estimates and assumptions that affect the reported
amount of assets and liabilities on the date of financial statements
and the reported amount of revenues and expenses during the reporting
period. Difference, if any, between the actual results and estimates is
recognised in the year in which the results are known / materialized .
Mi) Revenue
Revenue is recognized in accounts in accordance with Accounting
Standard-7 Accounting for Construction Contracts' issued by Institute
of Chartered Accountants of India. The method of recognition is on
percentage completion basis. Revenue is recognised under Percentage
Completion Method on the basis of proportion that contract costs
incurred for work performed up to the reporting date bears to the
estimated total contract costs.
Revenue from ship repair is recognised on the basis of job completion.
iv) Fixed Assets
Tangible Assets:
Fixed Assets are recorded at Cost. Cost is purchase cost and in the
case of Freehold Land, includes development cost incurred, together
with all incidental costs of acquisition, borrowing costs and other
related internal costs and is netted of for Cenvat and Value Added Tax.
Profit/Loss on disposal of fixed assets is recognised in the Statement
of Profit and Loss.
Intangible Assets:
Intangible assets are recognized and accounted at cost in accordance
with Accounting Standard-26 'Intangible Assets- issued by Institute of
Chartered Accountants of India.
v) Capital Work In Progress
All expenditure, relating to development of land, buildings, dry docks
and plant & machinery etc. are accumulated and shown as capital
work-in-progress till the completion of such activities. Capital
advances are presented under loans and advances.
vi) Investments
Long Term investments are stated at cost. Cost includes incidental
expenses of acquisition. Decline in value of investment other than of
temporary nature is recognised in Statement of Profit and Loss.
vii) Borrowing costs
Borrowing Costs attributable to the acquisition and construction of the
Qualifying Assets, which take substantial period of time to get ready
for their intended use, are capitalized as part of the cost of
respective assets up to the date when such assets are ready for their
intended use. Other Borrowing costs are charged to the Statement of
Profit and Loss.
viii) Depreciation and Amortisation
a) Freehold land is not depreciated. Leasehold land is amortised
equally over the period of lease.
b) Dry Docks (included in Plant & Machinery) and Dry Docks Civil Works
(included in Factory Building) and Jetty are depreciated on Straight
Line Method in accordance with Accounting Standard - 6 'Depreciation
Accounting' of the Institute of Chartered Accountants of India atthe
rates prescribed in Schedule XIV to the Companies Act, 1956.
c) Other assets are depreciated on Written Down Value Method at the
rates prescribed in Schedule XIV to the Companies Act, 1956.
d) Depreciation on additions / deletions to Fixed Assets made during
the year is provided on pro-rata basis from or up to date of such
additions/deletions as the case may be.
e) Depreciation on amounts added on revaluation is recouped from
Revaluation Reserve
f) Intangible assets are stated at cost less accumulated amortisation
and are amortised over a period of five years.
ix) Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. The company assesses at each Balance
Sheet date whether there is any indication that any asset may be
impaired and if such indication exists, the carrying value of such
asset is reduced to its recoverable amount and a provision is made for
such impairment loss in the Statement of Profit and Loss. The
impairment loss recognized in prior accounting period is reversed if
there has been a change in the estimate of recoverable amount.
x) Employees' Benefits
Provident Fund: Provident Fund contributions are made as per a defined
contribution scheme and the contribution of company is charged to
Statement of Profit and Loss of the year when become due. The company
has no other obligation other than to contribute and deposit the
contribution to respective authorities.
Short term employee benefits are recognized as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related service is rendered.
Long term employee benefits are recognized as an expense in the
Statement of Profit and Loss for the year in which the employee has
rendered services. The expense is recognized at the present value of
the amount payable determined using actuarial valuation techniques.
Actuarial gains and losses in respect of long term benefits are charged
to the Statement of Profit and Loss.
xi) Valuation of Inventory
Inventories of spares, consumables, components are valued at lower of
cost and net realizable value. Cost represents purchase cost and other
incidental costs, if any. Cost of inventories is computed on Weighted
Average/ FIFO basis. Finished goods are valued at lower of cost and
net realisable value.
xii) Work in Progress and Cost Allocation
Each construction contract is considered as a cost center and all costs
directly identifiable to the Contract are charged on actual basis.
Indirect miscellaneous costs are also allocated to the various
contracts using appropriate overhead recovery method. Contract
work-in-progress is valued at cost, including therein profit or loss
arrived at in accordance of Accounting Standard -7 'Accounting for
Construction Contracts'
xiii) Foreign Currency Transactions
Transactions in Foreign Currencies are recorded at the exchange rate
prevailing on the date of the transactions. Monetary assets and
liabilities are translated at the year end using closing rate if remain
unsettled at the year end. Non monetary foreign currency items are
carried at cost.
The resulting gain or loss on account of exchange difference either on
settlement or on translation is recognised in the Statement of Profit
and Loss.
The Company has chosen to apply notification issued by Companies
(Accounting Standard) Amendment Rules 2011 GSR 913 (E) & 914 (E) dated
29 12.2011 as regards monetary long term assets and liabilities.
Consequently, the resulting gain or loss on account of exchange
difference on settlement or on translation is so far as they relate to
depreciable assets is added or deducted from the cost of the asset.
xvi) Derivative Accounting
The Institute of Chartered Accountants of India has, in 2008, issued an
announcement on 'Accounting for Derivatives- inter alia requiring
provision for losses on all derivative contracts outstanding at the
balance sheet date by marking them to market keeping in view the
principle of prudence, other than for derivative contracts to which
Accounting Standard (AS) 11 - 'The Effect of Change in Foreign Exchange
Rates' is applicable. The Company has entered into Derivative Contracts
to hedge a firm commitment or a highly probable forecast transaction to
which AS-11 is not applicable and hence, the Company has applied
aforesaid announcement.
xv) Government Subsidy
Government subsidy related to shipbuilding contracts are recognized on
compliance with the relevant conditions and is recognized in the
Statement of Profit and Loss and presented under 'Revenue from
Operations'.
xvi) Operating Leases
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets are classified as
operating leases. Operating lease payments / receipts are recognized as
an expense / income in the Statement of Profit and Loss on a
straight-line basis over the lease term.
xvii) Provisions for Current and Deferred Tax
Provision for Current Tax is made on the basis of taxable income under
the provision of the Income Tax Act, 1961. Deferred Tax resulting from
"timing differences" between book and taxable profit is accounted for
using the tax rates and laws that have been enacted or substantively
enacted as on the balance sheet date. The deferred tax asset is
recognised and carried forward only to the extent that there is a
reasonable certainty that the asset will be realised in future. In
accordance with the guidance note issued by Institute of Chartered
Accountants of India, the Company recognises MAT Credit as an asset
only to the extent ,the probability exists that the Company will become
liable to pay normal Income Tax during the specified period as per
provision of the Income Tax Act, 1961.
Mar 31, 2011
1. Basis of Accounting
The financial statements are prepared under the Historical Cost
Conventions on the basis of Going Concern and as per
applicable Indian Accounting Standards notified u/s 211 (3C) of The
Companies Act, 1956.
2. Use of estimates
The preparation of financial statements requires the management of the
company to make estimates and assumptions that affect the reported
amount of assets and liabilities on the date of financial statements
and the reported amount of revenues and expenses during the reporting
period . Difference if any between the actual results and estimates is
recognised in which the results are known / materialized.
3. Revenue
Revenue is recognized in accounts in accordance with Accounting
Standard-7 Accounting for Construction Contracts' issued by Institute
of Chartered Accountants of India. The method of recognition is on
percentage completion basis. Revenue is recognized under Percentage
Completion Method on the basis of proportion that contract costs
incurred for work performed up to the reporting date bears to the
estimated total contract costs.
Revenue from ship repair is recognized on the basis of job completion.
4. Fixed Assets
Tangible Assets:
Fixed Assets are recorded at Cost. Cost is purchase cost and in the
case of Freehold Land, includes development cost incurred, together
with all incidental costs of acquisition, borrowing costs and other
related internal costs and is netted of for Cenvat and Value Added Tax.
Profit/Loss on disposal of fixed assets is recognised in the Profit and
Loss Account.
Intangible Assets:
Intangible assets are recognized and accounted at cost in accordance
with Accounting Standard-26 Intangible Assets' issued by Institute of
Chartered Accountants of India.
5. Capital Work In Progress
All expenditure, including advances given relating to development of
land, buildings, dry docks and plant & machinery etc. are accumulated
and shown as capital work-in-progress till the completion of such
activities.
6. Borrowing costs
Borrowing Costs attributable to the acquisition and construction of the
Qualifying Assets, which takes substantial period of time to get ready
for its intended use, are capitalized as part of the cost of respective
assets up to the date when such asset is ready for its intended use.
Other Borrowing costs are charged to the Profit and Loss account.
7. Depreciation and Amortisation
a) Freehold land is not depreciated. Leasehold land is amortised
equally over the period of lease.
b) Dry Docks (included in Plant & Machinery) and Dry Docks Civil Works
(included in Factory Building) and Jetty are depreciated on Straight
Line Method in accordance with Accounting Standard -6 'Depreciation
Accounting' of the Institute of Chartered Accountants of India at
ther ates prescribed in Schedule XIV to the Companies Act, 1956.
c) Other assets are depreciated on Written Down Value Method at the
rates prescribed in Schedule XIV to the Companies Act, 1956.
d) Depreciation on additions / deletions to Fixed Assets made during
the year is provided on pro-rata basis from or up to date of such
additions / deletions as the case may be.
e) Depreciation on amounts added on revaluation is recouped from
Revaluation Reserve
f) Intangible assets are stated at cost less accumulated amortisation.
g) Software is amortised over a period of five years.
8. Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. The company assesses at each Balance
Sheet date whether there is any indication that any asset may be
impaired and if such indication exists, the carrying value of such
asset is reduced to its recoverable amount and a provision is made for
such impairment loss in the profit and loss account. The impairment
loss recognized in prior accounting period is reversed if there has
been a change in the estimate of recoverable amount.
9. Employees'Benefits
Provident Fund: Provident Fund contributions are made as per a defined
contribution scheme and the contribution of company is charged to
Profit and Loss account of the year when become due. The company has no
other obligation other than to contribute and deposit the contribution
to respective authorities.
Short term employee benefits are recognized as an expense at the
undiscounted amount in the Profit and Loss account of the year in which
the related service is rendered.
Long term employee benefits are recognized as an expense in the Profit
& Loss account for the year in which the employee has rendered
services. The expense is recognized at the present value of the amount
payable determined using actuarial valuation techniques. Actuarial
gains and losses in respect of long term benefits are charged to the
Profit and Loss account.
10. Valuation of Inventory
Inventories of spares, consumables, components are valued at lower of
cost and net realizable value. Cost represents purchase cost and other
incidental costs, if any. Cost of inventories is computed on Weighted
Average/ Fl FO basis.
11. Work in Progress and Cost Allocation
Each construction contract is considered as a cost center and all costs
directly identifiable to the Contract are charged on actual basis.
Indirect miscellaneous costs are also allocated to the various
contracts using appropriate overhead recovery method. Contract
work-in-progress is valued at cost, including therein profit or loss
arrived at in accordance of Accounting Standard -7 'Accounting for
Construction Contracts'
12. Foreign Currency Transactions
Transactions in Foreign Currencies are recorded at the exchange rate
prevailing on the date of the transactions. Monetary assets and
liabilities are translated at the year end using closing rate if remain
unsettled at the year end. Non monetary foreign currency items are
carried at cost.
The resulting gain or loss on account of exchange difference either on
settlement or on translation is recognised in the Profit & Loss account
The Company has w.e.f. or December,2006 chosen to apply notification
issued by Companies (Accounting Standard) Amendment Rules 2009 GSR 225
(E) dated 31.03.2009 as regards monetary long term assets and
liabilities. Consequently the resulting gain or loss on account of
exchange difference on settlement or on translation is so far as they
relate to depreciable assets is added or deducted from the cost of the
asset.
13. Derivative Accounting
During the year ended 31st March, 2008, The Institute of Chartered
Accountants of India has issued an announcement on 'Accounting for
Derivatives' inter alia requiring provision for losses on all
derivative contracts outstanding at the balance sheet date by marking
them to market keeping in view the principle of prudence, other than
for forward contracts to which Accounting Standard (AS) 11- 'The Effect
of Change in Foreign Exchange Rates' is applicable. The Company has
entered into Forward Contracts to hedge a firm commitment or a highly
probable forecast transaction to which AS-11 is not applicable and
hence, the Company has applied aforesaid announcement. Premium paid on
forward contracts is recognized in the year of entering of contract.
14. Government Subsidy
Government subsidy related to shipbuilding contracts are recognized on
compliance with the relevant conditions and is recognized in the Profit
and Loss account and presented under 'Revenue from Operations'.
15. Operating Leases
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets are classified as
operating leases. Operating lease payments / receipts are recognized as
an expense / income in the Profit and Loss Account on a straight-line
basis over the lease term.
16. Provisions for Current and Deferred Tax
Provision for Current Tax is made on the basis of taxable income under
the provision of the Income Tax Act, 1961.
Deferred Tax resulting from "timing differences" between book and
taxable profit is accounted for using the tax rates and laws that have
been enacted or substantively enacted as on the balance sheet date. The
deferred tax asset is recognised and carried forward only to the extent
that there is a reasonable certainty that the asset will be realised in
future.
In accordance with the guidance note issued by Institute of Chartered
Accountants of India, the Company recognises MAT Credit as an asset
only to the extent ,the probability exists that the Company will become
liable to pay normal Income Tax during the specified period as per
provision of the Income Tax Act, 1961.
17. Provisions, Contingent Liabilities and Contingent Assets
A provision is made based on reliable estimate when it is probable that
an outflow of resources embodying economic benefits will be required to
settle an obligation. Contingent liabilities, if material, are
disclosed by way of Notes to Accounts. Contingent
Assete are not recognized/disclosed.
18. Investments
Long Term investments are stated at cost. Cost includes incidental
expenses of acquisition. Decline in value of investment other than of
temporary nature is recognised in Profit & Loss account.
Mar 31, 2010
1. Basis of Accounting
The financial statements are prepared under the Historical Cost
Conventions on the basis of Going Concern and as per
applicablelndianAccountingStandardsnotifiedu/s211 (3C) of The Companies
Act, 1956.
2. Revenue
Revenue is recognized in accounts in accordance with Accounting
Standard - 7 Accounting for Construction Contracts issued by
Institute of Chartered Accountants of India. The method of recognition
is on percentage completion basis. Revenue is recognized under
Percentage Completion Method on the basis of proportionate contract
costs incurred for work performed up to the reporting date bears to the
estimated total contract costs.
Revenue from ship repair is recognized on the basis of job completion.
3. Fixed Assets
Tangible Assets:
Fixed Assets are recorded at Cost. Cost is purchase cost and in the
case of Freehold Land, includes development cost incurred, together
with all incidental costs of acquisition, borrowing costs and other
related internal costs and is netted of for Cenvat and Value Added Tax.
Profit/Loss on disposal of fixed assets is recognised in the Profit and
Loss Account.
Intangible Assets:
Intangible assets are recognized and accounted at cost in accordance
with Accounting Standard-26 Intangible Assets issued by Institute of
Chartered Accountants of India.
4. Capital Work In Progress
All expenditure, including advances given relating to development of
land, buildings, dry docks and plant & machinery etc. are accumulated
and shown as capital work-in-progress till the completion of such
activities
5. Borrowing costs
Borrowing Costs attributable to the acquisition and construction of the
Qualifying Assets, which takes substantial period of time to get ready
for its intended use, are capitalized as part of the cost of respective
assets up to the date when such asset is ready for its intended use.
Other Borrowing costs are charged to the Profit and Loss account.
6. Depreciation and Amortisation
a) Freehold land is not depreciated. Leasehold land is amortised
equally over the period of lease.
b) Dry Docks (included in Plant & Machinery) and Dry Docks Civil Works
included in Factory Building) and Jetty are depreciated on Straight
Line Method in accordance with Accounting Standard - 6 Depreciation
Accounting of the Institute of Chartered Accountants of India at the
rates prescribed in Schedule XIV to the Companies Act, 1956.
c) Other assets are depreciated on Written down Value Method at the
rates prescribed in Schedule XIV to the Companies Act, 1956.
d) Depreciation on additions / deletions to Fixed Assets made during
the year is provided on pro-rata basis from or up to date of such
additions / deletions as the case may be.
e) Depreciation on amounts added on revaluation is recouped from
Revaluation Reserve.
f) Intangible assets are stated at cost less accumulated amortisation.
g) Software is amortised over a period of five years.
7. Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. The company assesses at each Balance
Sheet date whether there is any indication that any asset may be
impaired and if such indication exists, the carrying value of such
asset is reduced to its recoverable amount and a provision is made for
such impairment loss in the profit and loss account. The impairment
loss recognized in prior accounting period is reversed if there has
been a change in the estimate of recoverable amount.
8. Employees Benefits
Provident Fund: Provident Fund contributions are made as per a defined
contribution scheme and contribution of company is charged to Profit
and Loss account of the year when become due. The company has no other
obligation other than to contribute and deposit the contribution to
respective authorities. Short term employee benefits are recognized as
an expense at the undiscounted amount in the profit and loss account of
the year in which the related service is rendered.
Long term employee benefits are recognized as an expense in the Profit
& Loss account for the year in which the employee has rendered
services. The expense is recognized at the present value of the amount
payable determined using actuarial valuation techniques. Actuarial
gains and losses in respect of long term benefits are charged to the
Profit and Loss account.
9. Valuation of Inventory
Inventories of spares, consumables, components are valued at lower of
cost and net realizable value. Cost represents purchase cost and other
incidental costs, if any. Cost of inventories is computed on weighted
average / FIFO basis.
10. Work in Progress and Cost Allocation
Each construction contract is considered as a cost center and all costs
directly identifiable to the Contract are charged on actual basis.
Indirect miscellaneous costs are also allocated to the various
contracts using appropriate overhead recovery method. Contract
work-in-progress is valued at cost, including therein profit or loss
arrived at in accordance of Accounting Standard -7, Accounting for
Construction Contracts.
11. Foreign Currency Transactions
Transactions in Foreign Currencies are recorded at the exchange rate
prevailing on the date of the transactions. Monetary assets and
liabilities are translated at the year end using closing rate if remain
unsettled at the year end. Non monetary foreign currency items are
carried at cost.
The resulting gain or loss on account of exchange difference either on
settlement or on translation is recognised in the Profit & Loss account
The Company has w.e.f. 07th December,2006 chosen to apply notification
issued by Companies (Accounting Standard) Amendment Rules 2009 GSR 225
(E) dated 31.03.2009 as regards monetary long term assets and
liabilities. Consequently, the resulting gain or loss on account of
exchange difference on settlement or on translation is so far as they
relate to depreciable assets is added ordeducted from the cost of the
asset.
12. Derivative Accounting
During the year ended 31st March, 2008, The Institute of Chartered
Accountants of India has issued an announcement on Accounting for
Derivatives inter alia requiring provision for losses on all
derivative contracts outstanding at the balance sheet date by marking
them to market keeping in view the principle of prudence, other than
for forward contracts to which Accounting Standard (AS) 11- The Effect
of Change in Foreign Exchange Rates is applicable. The Company has
entered into Forward Contracts to hedge a firm commitment or a highly
probable forecast transaction to which AS-11 is not applicable and
hence, the Company has applied aforesaid announcement. Premium paid on
forward contracts is recognized in the year of entering of contract.
13. Government Subsidy
Government subsidy related to shipbuilding contracts are recognized on
compliance with the relevant conditions and is recognized in the Profit
and Loss account and presented underRevenue from Operations.
14. Operating Leases
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets are classified as
operating leases. Operating lease payments / receipts are recognized as
an expense / income in the Profit and Loss Account on a straight-line
basis overthe lease term.
15. Provisions for Current and Deferred Tax
Provision for Current Tax is made on the basis of taxable income under
the provision of the Income Tax Act, 1961.
Deferred Tax resulting from "timing differences" between Book and
Taxable profit is accounted for using the tax rates and laws that have
been enacted or substantively enacted as on the balance sheet date. The
deferred tax asset is recognised and carried forward only to the extent
that there is a reasonable certainty that the asset will be realised in
future.
In accordance with the guidance note issued by The Institute of
Chartered Accountants of India, the Company recognises MAT Credit as an
asset only to the extent ,the probability exists that the Company will
become liable to pay normal Income Tax during the specified period as
per provision of the Income Tax Act1961.
16. Provisions, Contingent Liabilities and Contingent Assets
A provision is made based on reliable estimate when it is probable that
an outflow of resources embodying economic benefits will be required to
settle an obligation. Contingent liabilities, if material, are
disclosed by way of Notes to Accounts. Contingent Assets are not
recognized/disclosed.
17. Investments
Long Term investments are stated at cost. Cost includes incidental
expenses of acquisition. Decline in value of investment other than of
temporary nature is recognised in Profit & Loss account.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article