Accounting Policies of Sanco Trans Ltd. Company
Mar 31, 2018
1. CORPORATE INFORMATION
Sanco Trans Limited (âThe Companyâ) is a listed Public Company domiciled in India and is incorporated under the provisions of the Companies Act 2013 as applicable in India. The registered office headquartered in Chennai, India,
The Standalone financial statements were approved by the Board of Directors on 29th May 2018.
The Company is principally engaged in providing specialized logistics services across multimodal transport operators and container freight station operations,
2. BASIS OF PREPARATION & PRESENTATION
Compliance with Indian Accounting Standard (Ind AS):
The financial statements have been prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015. Up to the year ended March 31, 2017, the Company prepared its financial statements in accordance with the requirements of previous GAAP, which includes Standards notified under the Companies (Accounting Standards) Rules, 2006. These are the Company''s first Ind AS financial statements. The date of transition to Ind AS is April 1, 2016.
First-time adoption:
In accordance with Ind AS 101 on First time adoption of Ind AS, the Company has prepared its first Ind AS financial statements which include:
(i) Three Balance sheets namely, the opening Balance sheet as at April 1, 2016 (the transition date) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing assets or liabilities which are not permitted by Ind AS, by reclassifying assets and liabilities from previous GAAP as required by Ind AS, and applying Ind AS in measurement of recognized assets and liabilities; and Balance sheets as at March 31, 2018 and 2017; and
(ii) Two statements each of profit and loss; cash flows and changes in equity for the years ended March 31, 2018 and 2017 together with related notes.
The same accounting policies have been applied for all the periods presented except when the Company has made use of certain exceptions and/ or exemptions.
The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/ or disclosure purposes in these financial statements is determined on such a basis, except for leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36.
In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
- Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
- Level 3 inputs are unobservable inputs for the asset or liability.
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the schedule III to the Act. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of current - non-current classification of assets and liabilities.
The financial statements are presented in Indian Rupees (Rs.) and all values are rounded to the nearest lakhs, except where otherwise indicated.
The financial statements were approved for issue by the board of directors on May 29, 2018.
The significant accounting policies are detailed below.
3. SIGNIFICANT ACCOUNTING POLICIES
3.1 Revenue Recognition:
Rendering of Services:
Revenue is measured at the fair value of consideration received or receivable.
Revenue is primarily derived from (i) executed work, at contracted rates, (ii) other work yet to be completed, at estimated net realizable value, (iii) warehousing operations, at estimated net realizable value (net of incentives, discounts, rebates, etc), (iv) container freight operations, at estimated net realizable value and (v) goods lying in the container freight station auctioned by the customs department, at the bid money, net of related expenses on clearance of goods from the yard. Revenue is measured at fair value of the consideration received or receivable. Amounts disclosed as revenue are net of discounts and amounts collected on behalf of third party.
The revenue from services is recognized based on the actual service provided till the end of the reporting period, provided that the same can be estimated reliably. When the outcome of the transactions involving the rendering of services cannot be estimated reliably, revenue shall be recognized only to the extent of expenses recognized that are recoverable.
The Company bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. Revenue is recognized where there is no uncertainty as to measurement or collectability of consideration.
Estimates of revenues, costs or extent of progress towards completion are revised if circumstances change. Any resulting increases or decreases in estimated revenues or costs are reflected in Profit or Loss in the period in which the circumstances that give rise to the revision become known by the management.
Dividend:
Dividend income from investments is recognized when the Company''s right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably).
Interest Income:
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably).
3.2 Foreign currency transactions:
The Company''s financial statements are presented in INR, which is also its functional currency. Transactions in currencies other than the entity''s functional currency are translated using the exchange rates at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currency are retranslated at the rates prevailing at that date. Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date are recognized as profit or loss in the period in which they arise.
3.3 Borrowing costs:
Borrowings costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Other borrowing costs are recognized as expense in the year in which it is incurred.
3.4 Employee benefits:
Short term employee obligations:
A liability is recognized for benefits accruing to employees in respect of salaries, wages, compensated absences, medical benefits and other short term benefits in the period the related service is rendered, at the undiscounted amount of the benefits expected to be paid in exchange for that service.
Post-employment obligations and termination benefits:
The company operates the following post-employment schemes-
a. Defined Contribution plan such as provident fund, superannuation fund and Employee State Insurance
b. Defined Benefit Plan such as gratuity and other retirement benefits.
Defined contribution plan
Payments to defined contribution plans i.e., Company''s contribution to provident fund, superannuation fund, employee state insurance and other funds are determined under the relevant schemes and/ or statute and charged to the Statement of Profit and Loss in the period of incurrence when the services are rendered by the employees. The Company has no further payment obligations once the contributions have been paid.
Defined benefit plan
The cost of providing benefits under the defined benefit plan i.e. Gratuity (funded) and other retirement benefits is determined using the projected unit credit method with actuarial valuations being carried out at each balance sheet date, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measure each unit separately to build up the final obligation.
Defined benefit costs are comprised of
a. service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);
b. net interest expense or income; and
c. Re-measurement.
Re-measurement of net defined benefit liability/asset is reflected immediately in the balance sheet with a charge or credit in other comprehensive income in the period in which they occur and is not reclassified to profit or loss.
A liability for termination benefits is recognized at the earlier of when the Company can no longer withdraw the offer of termination benefit or when the Company recognizes any related restructuring costs.
3.5 Income Taxes:
Income tax expense represents the sum of the tax currently payable and deferred tax. Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized directly in other comprehensive income or in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or in equity respectively.
Current tax:
Current tax is determined on taxable profits for the year chargeable to tax in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 including other applicable tax laws that have been enacted or substantively enacted.
Deferred tax:
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are recognized for all unused tax credits, deductible temporary differences and unused tax losses to the extent that it is probable that taxable profits will be available against which those unused tax credits, deductible temporary differences and unused losses can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax asset is recognized for the carry forward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current tax and deferred tax is recognized outside profit or loss if the tax relates to items that are recognized, in the same or a different period, outside profit or loss. Therefore, current tax and deferred tax that relates to items that are recognized, in the same or a different period:
(a) in other comprehensive income, is recognized in other comprehensive income.
(b) directly in equity, is recognized directly in equity
3.6 (a) Property, Plant and Equipment:
Property, Plant and equipment held for use in the supply of services, or for administrative purposes, are stated in the balance sheet at cost (net of eligible credit for duties and taxes) less accumulated depreciation and accumulated impairment losses, if any and inclusive of expenses attributable to bringing the asset to its working condition and also borrowing cost in respect of qualifying assets. Costs of civil works (including electrification and fittings is capitalized).
Depreciation on Property, Plant and Equipment is recognized from the date the assets are ready for their intended use so as to write off the cost of the assets less their residual values over their useful lives using the straight-line method.
The useful life of assets is estimated by the Management based on technical assessment. Estimated useful life of assets different from those prescribed under Schedule II to the 2013 Act are disclosed in the Notes to the financial statements.
Depreciation on Property, Plant and Equipment which are added/disposed off during the year, is provided on prorate basis with reference to the date of addition/ deletion.
When significant parts of an item of property, plant and equipment have different useful lives they are accounted for as separate items (major components) of Property, Plant and Equipment.
Transition to IND AS
The Company has elected to continue with the carrying value of all of its property, plant and equipment recognized as of April 1, 2016 (the transition date) measured as per the previous GAAP and use such carrying value as its deemed cost as of the transition date.
Property, Plant and Equipment that are not ready for their intended use are carried at costs
Comprising direct costs and other incidental/attributable expenses and are reflected under Capital work in progress.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.
3.6 (b) Intangible Assets:
Intangible assets are capitalized when it is probable that the future economic benefits that are attributable to the assets will flow to the Company and the cost of the asset can be measured reliably. Intangible assets comprising software acquired are carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from de-recognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in profit or loss when the asset is derecognized.
The Company has elected to continue with the carrying value of all its intangible assets recognized as of April 1,2016 (the transition date) measured as per the previous GAAP and use such carrying values as its deemed cost as of the transition date.
3.7 Impairment of assets:
Plant, Property and Equipment and intangible assets are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. An impairment loss is recognized for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or Company''s of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.
3.8 Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
Rental expense from operating leases is generally recognized on a straight-line basis over the term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the less orâs expected inflationary cost increases, such increases are recognized in the year in which such benefits accrue.
The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date, whether fulfillment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset, even if that right is not explicitly specified in the arrangement.
3.9 Inventories
Stores and spares for the operating equipments are stated at lower of cost and estimated net realizable value, cost being ascertained on First In First Out basis. Costs also include all other costs incurred in bringing the inventory to their present condition.
3.10 Cash and Cash Equivalents:
Cash and Cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the Balance Sheet.
3.11 Provisions and Contingent Liabilities:
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognized as a provision is management''s best estimate of the consideration required to settle the present obligation at the end of the reporting period. When a provision is measured using the cash flows estimated to settle the present obligation its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
Contingent liability is disclosed in case of:
- A present obligation arising out of past events, when it is not probable that there will be an outflow of resources that will be required to settle the obligation.
- A present obligation arising from past events, when no reliable estimate is possible.
- A possible obligation arising from past events, unless the probability of outflow of resources is remote.
- Provisions, Contingent liabilities, Contingent assets and commitments are reviewed at each Balance sheet date.
- Provision for litigation related obligation represents liabilities expected to materialize in respect of matters in appeal.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursements will be received and the amount of the receivable can be measured reliably.
3.12 Exceptional Items:
On certain occasions, the size, the type or incidence of an item of expense or income, pertaining to the ordinary activities of the Company is such that its disclosure improves the understanding of the performance of the Company, In that event such income or expense is classified as an exceptional item and accordingly disclosed in notes to the financial statements.
3.13 Financial instruments:
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss (FVTPL) are recognized immediately in profit or loss.
A. Financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.
Classification of financial assets:
Financial instruments that meet the following conditions are subsequently measured at amortized cost if the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments on principal and interest on the principal amount outstanding.
Financial instruments that meet the following conditions are subsequently measured at FVTOCI if the asset is held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets; and the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
All other financial assets are subsequently measured at fair value.
Financial assets which are not classified in any of the above categories are measured at fair value at the end of each reporting period, with any gains or losses arising on re-measurement recognized in profit or loss.
Investments in equity instruments of subsidiaries
The Company measures its investments in equity instruments of subsidiaries at cost in accordance with Ind AS
27. At transition date, the Company has elected to continue with the carrying value of such investments measured as per the previous GAAP and use such carrying value as its deemed cost.
Impairment of financial assets:
The Company applies expected credit loss model for recognizing impairment loss on financial assets not designated as at FVTPL.
Expected credit losses are measured through a loss allowance at an amount equal to:
a. the 12 months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or
b. full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).
De-recognition of financial assets:
The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received.
On de-recognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the sum of the consideration received and receivable is recognized in the Statement of profit and loss.
The Company has applied the de-recognition requirements of financial assets prospectively for transactions occurring on or after April 1, 2016 (the transition date).
Effective interest method:
The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The effective interest is the rate that exactly discounts estimated future cash receipts.
B. Financial liabilities and equity instruments Equity instruments:
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a Company entity are recognized at the proceeds received, net of direct issue costs.
Financial liabilities:
All financial liabilities are subsequently measured at amortized cost using the effective interest rate method or at FVTPL.
Financial liabilities at FVTPL
Financial liabilities are classified as at FVTPL when the financial liability is held for trading or it is designated as at FVTPL.
A financial liability is classified as held for trading if:
- It has been incurred principally for the purpose of repurchasing it in the near term; or
- on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking; or
- It is a derivative that is not designated and effective as a hedging instrument.
A financial liability other than a financial liability held for trading, may be designated as at FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise;
Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any interest paid on the financial liability and is included in the ''Other expenses'' line item.
Gains or losses on financial guarantee contracts issued by the Company that are designated by the Company as at FVTPL are recognized in profit or loss.
3.14 Financial liabilities subsequently measured at amortized cost:
Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortized cost at the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortized cost are determined based on the effective interest method. Interest expense that is not capitalized as part of costs of an asset is included in the âFinance Costsâ line item.
The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.
Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument. Financial guarantee contracts issued by the Company are initially measured at their fair values and are subsequently measured (if not designated as at Fair value though profit or loss) at the higher of:
- the amount of impairment loss allowance determined in accordance with requirements of Ind AS 109;
- the amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance with the principles of Ind AS 18.
3.15 De-recognition of financial liabilities:
The Company derecognizes financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired. An exchange between a lender of debt instruments with subs7tantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the Company) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss.
The Company has applied the de-recognition requirements of financial liabilities prospectively for transactions occurring on or after April 1, 2016. (the transition date).
4. Critical Accounting Judgments and key sources of estimation uncertainty:
4.1 Use of Estimates:
The preparation of financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the period.
The estimates and underlying assumptions are reviewed on an ongoing basis.
The following are the critical judgments and estimations that have been made by the management in the process of applying the Company''s accounting policies and that have the most significant effect on the amounts recognized in the financial statements and or key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
4.2 Critical accounting estimates:
a. Revenue recognition:
The revenue from services is recognized based on the actual service provided till the end of the reporting period, provided that the same can be estimated reliably. When the outcome of the transactions involving the rendering of services cannot be estimated reliably, revenue shall be recognized only to the extent of expenses recognized that are recoverable.
The Company bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. Revenue is recognized where there is no uncertainty as to measurement or collectability of consideration.
Estimates of revenues, costs or extent of progress towards completion are revised if circumstances change. Any resulting increases or decreases in estimated revenues or costs are reflected in Profit or Loss in the period in which the circumstances that give rise to the revision become known by the management.
b. Taxation
Tax expense is calculated using applicable tax rate and laws that have been enacted or substantially enacted. In arriving at taxable profit and all tax bases of assets and liabilities, the Company determines the taxability based on tax enactments, relevant judicial pronouncements and tax expert opinions, and makes appropriate provisions which includes an estimation of the likely outcome of any open tax assessments / litigations. Any difference is recognized on closure of assessment or in the period in which the they are agreed.
Deferred income tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences, unused tax losses, unabsorbed depreciation and unused tax credits could be utilised.
3.2 The Company has elected the previous GAAP carrying amount of Investments as at April 1,2016 (transition date) as deemed cost and has accordingly accounted for the above Investments at cost.
3.3 Investments are fully paid - up.
3.4 Refer Note. 35.2
Mar 31, 2016
Statement on Significant Accounting Policies forming part of the Financial Statements for the year ended March 31, 2016
(a) Accounting convention
1. The Financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 as applicable. The financial statements have been prepared on accrual basis under the historical cost convention except for certain categories of fixed assets that are carried at re-valued amounts.
2. All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of current - noncurrent classification of assets and liabilities.
(b) Use of estimates
Preparation of financial statements involves making of estimates and assumptions in accordance with generally accepted accounting principles that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and revenue and expenses during the periods reported. The estimates are based as historical experience, where applicable and other assumptions that management believes are reasonable under the circumstances. Due to inherent uncertainty involved in making estimates, actual results may differ from those estimates under different assumptions or conditions. Any revision to accounting estimate is recognized prospectively in the current and future periods in which the results are known or materialize.
(c) Fixed assets
Cost of assets with certain limits on economic life and cost is capitalized. Cost (less CENVAT, if any) will include inward freight, duties, taxes and other incidental expenses related to acquisition. Certain categories of fixed assets were revalued and are carried at the revalued amounts less accumulated depreciation and impairment loss, if any.
Fixed assets that are not yet ready for their intended use, are carried at costs, comprising direct cost, and other incidental / attributable expenses and reflected under Capital work in progress.
(d) Depreciation /amortization/ impairment
Depreciation is calculated on fixed assets in a manner that amortizes, by equal annual installments, the cost of the asset after commissioning, over its economic useful lives subject to statutory requirements. Depreciation on additions to any asset or with respect to any asset sold/discarded/ demolished, is charged to revenue proportionately from/ up to the date the asset is used.
The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment based on internal/external factors. An impairment loss will be recognized wherever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. Provision for impairment will be reviewed periodically and amended depending on changes in circumstances.
(e) Borrowing costs
Borrowing costs attributable to the acquisition, construction or production of qualifying assets, are added to the cost of those assets, up to the date when the assets are ready for their intended use. Expenditure incurred on raising loans is amortized over the period of such borrowings. Premium paid on prepayment of borrowing is amortized over the unexpired period thereof or sixty months, whichever is less. All other borrowing costs are recognized in the Statement of Profit and Loss in the period in which they are incurred.
(f) Inventories
Stores and spares for the operating equipments are stated at lower of cost and estimated net realizable value, cost being ascertained on First In First Out basis. Obsolete, slow moving and defective items of inventories are adequately provided.
(g) Investments
Long term investments are stated at cost. However, provision for diminution is made to recognize a decline, if any, other than temporary, in the carrying value of the investment.
(h) Revenue recognition
Revenue is recognized in respect of (i) executed work, at contracted rates, (ii) other work yet to be completed, at estimated net realizable value, (iii) warehousing operations, at estimated net realizable value (net of incentives, rebates, discounts etc), (iv) in respect of container freight station operations, at estimated net realizable value and (v) goods lying in the Container Freight Station auctioned by the Customs department, at the bid money, net of related expenses on clearance of goods from the yard. Operating earnings are reckoned net of the relevant expenses and losses claimable from the constituents.
(i) Foreign currency transactions
Foreign currency transactions are recorded at the rates prevailing on the date of the transaction. Monetary assets and liabilities in foreign currency are translated at year-end rates and the gains/ losses arising on settlement of transactions and translation of monetary items is recognized in the Statement of Profit and Loss.
(j) Employee benefits
Employee benefit expenses include salary, wages, compensated absences, medical benefits, and other perquisites. It also includes post-employment benefits such as provident fund, gratuity, pensioner benefits etc.
Short term employee benefit obligations are estimated and provided for.
Post-employment benefits and other long term employee benefits
- Defined contribution plans:
Company''s contribution to provident fund, superannuation fund, employee state insurance and other funds are determined under the relevant schemes and/ or statute and charged to the Statement of Profit and Loss in the period of incurrence when the services are rendered by the employees
- Defined benefit plans and compensated absences:
Company''s liability towards gratuity (funded), other retirement benefits and compensated absences are actuarially determined at each balance sheet date using the projected unit credit method. Actuarial gains and losses are recognized in the Statement of Profit and Loss in the period of occurrence.
Termination benefits
Expenditure on termination benefits is recognized in the Statement of Profit and Loss in the period of incurrence.
(k) Taxation
Provision for income tax expense comprises of current tax and deferred tax. Provision for current tax is made with reference to taxable income for the current accounting year by applying the applicable tax rate in accordance with the provisions of the Income Tax Act, 1961 and other applicable tax laws after considering credit for Minimum Alternate Tax (MAT) available. Deferred income tax charge reflects the impact of the current period timing differences between taxable income and accounting income subject to consideration of prudence. The deferred tax charge or credit is recognized using prevailing tax rates. Deferred tax assets/liabilities are reviewed as at each balance sheet date based on developments during the period and available case laws to reassess realization/liabilities.
(l) Provisions and contingencies
Provision is recognized when (i) the Company has a present obligation as a result of a past event;
(ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and (iii) a reliable estimate can be made of the amount of the obligation. A disclosure of a contingent liability is made when there is a possible obligation that may, but probably will not, require outflow of resources. Where there is possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure is made.
(m) Cash Flow Statement
Cash flow statements are reported using the indirect method, whereby profit/ (loss) before extraordinary items/ exceptional items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipt or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on available information including taxes paid relating to these activities.
Mar 31, 2015
(a) Accounting convention
1. The Financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards specified under
Section 133 of the Companies Act, 2013, read with Rule 7 of the
Companies (Accounts) Rules, 2014 and the relevant provisions of the
Companies Act, 2013 ("the 2013 Act")/ Companies Act, 1956 ("the 1956
Act"), as applicable. The financial statements have been prepared on
accrual basis under the historical cost convention except for certain
categories of fixed assets that are carried at re-valued amounts.
2. All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the schedule III to the Companies Act, 2013. Based
on the nature of products and the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents, the Company has determined its operating cycle as twelve
months for the purpose of current - noncurrent classification of assets
and liabilities.
(b) Use of estimates
Preparation of financial statements involves making of estimates and
assumptions in accordance with generally accepted accounting principles
that affect the reported amount of assets and liabilities and
disclosure of contingent liabilities at the date of the financial
statements and revenue and expenses during the periods reported. The
estimates are based as historical experience, where applicable and
other assumptions that management believes are reasonable under the
circumstances. Due to inherent uncertainty involved in making
estimates, actual results may differ from those estimates under
different assumptions or conditions. Any revision to accounting
estimate is recognized prospectively in the current and future periods.
(c) Fixed assets
Cost of assets with certain limits on economic life and cost is
capitalised. Cost (less cenvat, if any) will include inward freight,
duties, taxes and other incidental expenses related to acquisition.
Certain categories of fixed assets were revalued and are carried at the
revalued amounts less accumulated depreciation and impairment loss, if
any.
(d) Depreciation /amortization/ impairment
Depreciation is calculated on fixed assets in a manner that amortises
the cost of the assets after commissioning over the economic useful
lives as prescribed in Schedule II to the Companies Act, 2013(except for
Office Vehicle depreciated over 5 years) by equal annual installments.
Depreciation on additions to any asset or with respect to any asset
sold/discarded/demolished, is charged to revenue proportionately from/
upto the date the asset is used.
The carrying amount of assets is reviewed at each balance sheet date
for any indication of impairment based on internal/external factors. An
impairment loss will be recognized wherever the carrying amount of an
asset exceeds its estimated recoverable amount. The recoverable amount
is the greater of the asset's net selling price and value in use.
Provision for impairment will be reviewed periodically and amended
depending on changes in circumstances.
(e) Borrowing costs
Borrowing costs attributable to the acquisition, construction or
production of qualifying assets, are added to the cost of those assets,
up to the date when the assets are ready for their intended use.
Expenditure incurred on raising loans is amortised over the period of
such borrowings. Premium paid on prepayment of borrowing is amortised
over the unexpired period thereof or sixty months, whichever is less.
All other borrowing costs are recognised in the Statement of Profit and
Loss in the period in which they are incurred.
(f) Inventories
Stores and spares for the operating equipments are stated at lower of
cost and estimated net realizable value, cost being ascertained on
first in, first out basis. Obsolete, slow moving and defective items of
inventories are adequately provided.
(g) Investments
Long term investments are stated at cost. However, provision for
diminution is made to recognize a decline, if any, other than
temporary, in the carrying value of the investment.
(h) Revenue recognition
Revenue is recognized (i) on executed work, at contracted rates, (ii)
on other work yet to be completed, at estimated net realizable value,
(iii) from warehousing operations, at estimated net realizable value
(net of incentives, rebates, discounts etc), (iv) in respect of
container freight station operations, at estimated net realizable value
and (v) in respect of goods lying in the Container Freight Station
auctioned by the Customs department, at the bid money, net of related
expenses on clearance of goods from the yard. Operating earnings are
reckoned net of the relevant expenses and losses claimable from the
constituents.
(i) Foreign currency transactions
Foreign currency transactions are recorded at the rates prevailing on
the date of the transaction. Monetary assets and liabilities in
foreign currency are translated at year-end rates and the gains/ losses
arising on settlement of transactions and translation of monetary items
is recognized in the revenue.
(j) Employee benefits
Employee benefit expenses include salary, wages, compensated absences,
medical benefits, and other perquisites. It also includes
post-employment benefits such as provident fund, gratuity, pensionary
benefits etc.
Short term employee benefit obligations are estimated and provided for.
Post-employment benefits and other long term employee benefits
* Defined contribution plans:
Company's contribution to provident fund, superannuation fund, employee
state insurance and other funds are determined under the relevant
schemes and/ or statute and charged to the Statement of Profit and Loss
in the period of incurrence when the services are rendered by the
employees
* Defined benefit plans and compensated absences:
Company's liability towards gratuity, other retirement benefits and
compensated absences are actuarially determined at each balance sheet
date using the projected unit credit method. Actuarial gains and
losses are recognised in the Statement of Profit and Loss in the period
of occurrence.
Termination benefits
Expenditure on termination benefits is recognised in the Statement of
Profit and Loss in the period of incurrence.
(k) Taxation
Provision for income tax expense comprises of current tax and deferred
tax. Provision for current tax is made with reference to taxable income
for the current accounting year by applying the applicable tax rate.
Deferred income tax charge reflects the impact of the current period
timing differences between taxable income and accounting income subject
to consideration of prudence. The deferred tax charge or credit is
recognized using prevailing tax rates. Deferred tax assets are
recognized only to the extent there is virtual certainty of realization
in future. Deferred tax assets/ liabilities are reviewed as at each
balance sheet date based on developments during the period and
available case laws to reassess realization/liabilities.
(l) Provisions and contingencies
Provision is recognized when (i) the Company has a present obligation
as a result of a past event;
(ii) it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; and (iii) a
reliable estimate can be made of the amount of the obligation. A
disclosure of a contingent liability is made when there is a possible
obligation that may, but probably will not, require outflow of
resources. Where there is possible obligation or a present obligation
and the likelihood of outflow of resources is remote, no provision or
disclosure is made.
Mar 31, 2014
(a) Accounting convention
1.1 Financial statements are prepared in accordance with the Generally
Accepted Accounting Principles in India to comply with the Accounting
Standards notifed under Section 211 (3C) of the Companies Act 1956("the
1956 Act")[which continues to be applicable in respectof section 133 of
the Companies Act''2013("the 2013 Act") in terms of general circular
15/2013 dated 13 September,2013 of the Ministry of Corporate Affairs]
and the relevant provision of the 1956 Act/ 2013 Act as applicable. The
financial statements have been prepared on accrual basis under
historical cost convention except for certain categories of fixed assets
that are carried at re-valued amounts.
1.2 All assets and liabilities have been classifed as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the revised schedule VI to the Companies Act, 1956.
Based on the nature of products and the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has determined its operating cycle as twelve
months for the purpose of current - noncurrent classifcation of assets
and liabilities.
(b) Use of estimates
Preparation of financial statements involves making of estimates and
assumptions in accordance with generally accepted accounting principles
that affect the reported amount of assets and liabilities and
disclosure of contingent liabilities at the date of the financial
statements and revenue and expenses during the periods reported. The
estimates are based as historical experience, where applicable and
other assumptions that management believes are reasonable under the
circumstances. Due to inherent uncertainty involved in making
estimates, actual results may differ from those estimates under
different assumptions or conditions. Any revision to accounting
estimate is recognized prospectively in the current and future periods.
(c) Fixed assets
Cost of assets with certain limits on economic life and cost is
capitalised. Cost (less cenvat, if any) will include inward freight,
duties, taxes and other incidental expenses related to
acquisition.Certain categories of fixed assets were revalued and are
carried at the revalued amounts less accumulated depreciation and
impairment loss, if any.
(d) Depreciation /amortization/ impairment
Depreciation is calculated on fixed assets in a manner that amortises
the cost of the assets after commissioning over the economic useful
lives based on the rates specified in Schedule XIV to the Companies Act,
1956 by equal annual installments except for service equipments which
is depreciated at twenty percent. Depreciation on additions is charged
to revenue proportionately from the month the assets are used. No
depreciation is reckoned in the year of disposal.
The carrying amount of assets is reviewed at each balance sheet date
for any indication of impairment based on internal/external factors. An
impairment loss will be recognized wherever the carrying amount of an
asset exceeds its estimated recoverable amount. The recoverable amount
is the greater of the asset''s net selling price and value in use.
Provision for impairment will be reviewed periodically and amended
depending on changes in circumstances.
(e) Borrowing costs
Borrowing costs attributable to the acquisition, construction or
production of qualifying assets, are added to the cost of those assets,
up to the date when the assets are ready for their intended use.
Expenditure incurred on raising loans is amortised over the period of
such borrowings. Premium paid on prepayment of borrowing is amortised
over the unexpired period thereof or sixty months, whichever is less.
All other borrowing costs are recognised in the Statement of Profit and
Loss in the period in which they are incurred.
(f) Inventories
Stores and spares for the operating equipments are stated at lower of
cost and estimated net realizable value, cost being ascertained on frst
in, frst out basis. Obsolete, slow moving and defective items of
inventories are adequately provided.
(g) Investments
Long term investments are stated at cost. However, provision for
diminution is made to recognize a decline, if any, other than
temporary, in the carrying value of the investment.
(h) Revenue recognition
Revenue is recognized (i) on executed work, at contracted rates, (ii)
on other work yet to be completed, at estimated net realizable value,
(iii) from warehousing operations, at estimated net realizable value
(net of incentives, rebates, discounts etc), (iv) in respect of
container freight station operations, at estimated net realizable value
and (v) in respect of goods lying in the Container Freight Station
auctioned by the Customs department, at the bid money, net of related
expenses on clearance of goods from the yard. Operating earnings are
reckoned net of the relevant expenses and losses claimable from the
constituents.
(i) Employee benefits
Charge in respect of employee benefits is recognized as under (i) Short
term employee benefits- Provision for the obligations made on estimated
basis; (ii) Past employment benefits and other long term employee
benefits  (1) Deferred contribution plans-Company''s contribution to
provident fund, employees state insurance and other funds are provided
on determination of the liability under the relevant schemes and
charged to revenue: (2) Gratuity and other retirement benefits-
Provision made on the basis of actuarial determination of the Company''s
liability towards the said benefits at each balance sheet date using the
projected unit credit method; actuarial gains and losses are recognized
in the revenue.
(j) Taxation
Provision for income tax expense comprises of current tax and deferred
tax. Provision for current tax is made with reference to taxable income
for the current accounting year by applying the applicable tax rate.
Deferred income tax charge refects the impact of the current period
timing differences between taxable income and accounting income subject
to consideration of prudence. The deferred tax charge or credit is
recognized using prevailing tax rates. Deferred tax assets are
recognized only to the extent there is virtual certainty of realization
in future. Deferred tax assets/ liabilities are reviewed as at each
balance sheet date based on developments during the period and
available case laws to reassess realization/liabilities.
(k) Provisions and contingencies
Provision is recognized when (i) the Company has a present obligation
as a result of a past event; (ii) it is probable that an outflow of
resources embodying economic benefits will be required to settle the
obligation; and (iii) a reliable estimate can be made of the amount of
the obligation. A disclosure of a contingent liability is made when
there is a possible obligation that may, but probably will not, require
outflow of resources. Where there is possible obligation or a present
obligation and the likelihood of outflow of resources is remote, no
provision or disclosure is made.
(l) Foreign currency transactions
Foreign currency transactions are recorded at the rates prevailing on
the date of the transaction. Monetary assets and liabilities in
foreign currency are translated at year-end rates and the gains/ losses
arising on settlement of transactions and translation of monetary items
is recognized in the revenue.
Mar 31, 2013
(a) Accounting convention
Financial statements are prepared in accordance with the generally
accepted accounting principles in India including accounting standards
referred to in Section 211 (3C) of the Companies Act 1956, under
historical cost convention for the revaluation of the net assets made
as on March 31, 2009.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the revised schedule VI to the Companies Act, 1956.
Based on the nature of products and the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has determined its operating cycle as twelve
months for the purpose of current - noncurrent classification of assets
and liabilities.
(b) Use of estimates
Preparation of financial statements involves making of estimates and
assumptions in accordance with generally accepted accounting principles
that affect the reported amount of assets and liabilities and
disclosure of contingent liabilities at the date of the financial
statements and revenue and expenses during the periods reported. The
estimates are based as historical experience, where applicable and
other assumptions that management believes are reasonable under the
circumstances. Due to inherent uncertainty involved in making
estimates, actual results may differ from those estimates under
different assumptions or conditions. Any revision to accounting
estimate is recognized prospectively in the current and future periods.
(c) Fixed assets
Cost of assets with certain limits on economic life and cost is
capitalised. Cost (less cenvat, if any) will include inward freight,
duties, taxes and other incidental expenses related to acquisition.
(d) Depreciation /amortization/ impairment
Depreciation is calculated on fixed assets in a manner that amortises
the cost of the assets after commissioning over the economic useful
lives based on the rates specified in Schedule XIV to the Companies
Act, 1956 by equal annual instalments except for service equipments
which is depreciated at twenty percent. Depreciation on additions is
charged to revenue proportionately from the month the assets are used.
No depreciation is reckoned in the year of disposal.
The carrying amount of assets is reviewed at each balance sheet date if
there is any indication of impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its estimated recoverable amount. The recoverable
amount is the greater of the asset''s net selling price and value in
use. Provision for impairment is reviewed periodically and amended
depending on changes in circumstances.
(e) Borrowing costs
Borrowing costs attributable to the acquisition, construction or
production of qualifying assets, are added to the cost of those assets,
up to the date when the assets are ready for their intended use.
Expenditure incurred on raising loans is amortised over the period of
such borrowings. Premium paid on prepayment of borrowing is amortised
over the unexpired period thereof or sixty months, whichever is less.
All other borrowing costs are recognised in the Statement of Profit and
Loss in the period in which they are incurred.
(f) Inventories
Stores and spares for the operating equipments are stated at lower of
cost and estimated net realizable value, cost being ascertained on
first in, first out basis. Obsolete, slow moving and defective items of
inventories are adequately provided.
(g) Investments
Long term investments are stated at cost. However, provision for
diminution is made to recognize a decline, if any, other than
temporary, in the carrying value of the investment. (h) Revenue
recognition
Revenue is recognized (i) on executed work, at contracted rates, (ii)
on other work yet to be completed, at estimated net realizable value,
(iii) from warehousing operations, at estimated net realizable value
(net of incentives, rebates, discounts etc), (iv) in respect of
container freight station operations, at estimated net realizable value
and (v) in respect of goods lying in the Container Freight Station
auctioned by the Customs department, at the bid money, net of related
expenses on clearance of goods from the yard. Operating earnings are
reckoned net of the relevant expenses and losses claimable from the
constituents.
(i) Employee benefits
Charge in respect of employee benefits is recognized as under (i) Short
term employee benefits- Provision for the obligations made on estimated
basis; (ii) Past employment benefits and other long term employee
benefits - (1) Deferred contribution plans-Company''s contribution to
provident fund, employees state insurance and other funds are provided
on determination of the liability under the relevant schemes and
charged to revenue: (2) Gratuity and other retirement benefits-
Provision made on the basis of actuarial determination of the Company''s
liability towards the said benefits at each balance sheet date using
the projected unit credit method; actuarial gains and losses are
recognized in the revenue.
(j) Taxation
Provision for income tax expense comprises of current tax and deferred
tax. Provision for current tax is made with reference to taxable income
for the current accounting year by applying the applicable tax rate.
Deferred income tax charge reflects the impact of the current period
timing differences between taxable income and accounting income subject
to consideration of prudence. The deferred tax charge or credit is
recognized using prevailing tax rates. Deferred tax assets are
recognized only to the extent there is virtual certainty of realization
in future. Deferred tax assets/liabilities are reviewed as at each
balance sheet date based on developments during the period and
available case laws to reassess realization/liabilities.
(k) Provisions and contingencies
Provision is recognized when (i) the company has a present obligation
as a result of a past event; (ii) it is probable that an outflow of
resources embodying economic benefits will be required to settle the
obligation; and (iii) a reliable estimate can be made of the amount of
the obligation. A disclosure of a contingent liability is made when
there is a possible obligation that may, but probably will not, require
outflow of resources. Where there is possible obligation or a present
obligation and the likelihood of outflow of resources is remote, no
provision or disclosure is made.
(I) Foreign currency transactions
Foreign currency transactions are recorded at the rates prevailing on
the date of the transaction. Monetary assets and liabilities in foreign
currency are translated at year-end rates and the revenue arising on
settlement of transactions and translation of monetary items is
recognized in the revenue.
Mar 31, 2012
(a) Convention
Financial statements are prepared to comply in all material respects
with applicable mandatory accounting standards in India and the
relevant presentational requirements of the Companies Act, 1956.
(b) Basis of accounting
Financial statements are prepared in accordance with the historical
cost convention on the concept of going concern, except for the
revaluation of the net assets made as on March 31,2009 and as per
accrual basis of accounting.
(c) Use of estimates
Preparation of financial statements involves making of estimates and
assumptions in accordance with generally accepted accounting principles
that affect the reported amount of assets and liabilities and
disclosure of contingent liabilities at the date of the financial
statements and revenue and expenses during the periods reported. The
estimates are based as historical experience, where applicable, and
other assumptions that management believes are reasonable under the
circumstances. Due to inherent uncertainty involved in making
estimates, actual results may differ from those estimates under
different assumptions or conditions. Any revision to accounting
estimate is recognized prospectively in the current and future periods.
(d) Fixed assets
Cost of assets with certain limits on economic life and cost is
capitalised. Cost (less cenvat, if any) will include inward freight,
duties, taxes and borrowing costs incurred on qualifying assets and
other incidental expenses related to acquisition.
(e) Depreciation /amortization/ impairment
Depreciation is calculated on fixed assets in a manner that amortises
the cost of the assets after commissioning over the economic useful
lives based on the rates specified in Schedule XIV to the Companies
Act, 1956 by equal annual instalments except for service equipments
which is depreciated at twenty percent. Depreciation on additions is
charged to revenue proportionately from the month the assets are used.
No depreciation is reckoned in the year of disposal.
The carrying amount of assets is reviewed at each balance sheet date if
there is any indication of impairment based on internal/external
factors. An impairment loss will be recognised wherever the carrying
amount of an asset exceeds its estimated recoverable amount. The
recoverable amount is the greater of the asset's net selling price and
value in use. Provision for impairment will be reviewed periodically
and amended depending on changes in circumstances.
(f) Inventories
Stores and spares for the operating equipments are stated at lower of
cost and estimated net realisable value, cost being ascertained on
first in, first out basis. Obsolete, slow moving and defective items of
inventories are adequately provided.
(g) Investments
Long term investments are stated at cost less provision for diminution,
other than temporary, if any.
(h) Revenue recognition
Revenue is recognised (i) on executed work, at contracted rates, (ii)
on other work yet to be completed, at estimated net realisable value,
(iii) from warehousing operations, at estimated net realisable value,
(iv) in respect of container freight station operations, at estimated
net realisable value and (v) in respect of goods lying in the Container
Freight Station auctioned by the Customs department , at the bid money,
net of related expenses on clearance of goods from the yard. Operating
earnings are reckoned net of the relevant expenses and losses claimable
from the constituents.
(i) Amortisation of deferred revenue expenditure
Cost of structures and other expenses on leasehold land are amortised
over the estimated period the benefit from such expenditure is expected
to enure. Expenditure incurred on raising loans is amortised over the
period of the borrowings. Premium paid on prepayment of any borrowings
is amortised over the un-expired period thereof or sixty months,
whichever is less.
(j) Employee benefits
Charge in respect of employee benefits is recognized as under (i) Short
term employee benefits- Provision for the obligations made on estimated
basis; (ii) Past employment benefits and other long term employee
benefits - (1) Deferred contribution plans-Company's contribution to
provident fund, employees state insurance and other funds are provided
on determination of the liability under the relevant schemes and
charged to revenue: (2) Gratuity and other retirement benefits-
Provision made on the basis of actuarial determination of the Company's
liability towards the said benefits at each balance sheet date using
the projected unit credit method; actuarial gains and losses are
recognized in the revenue.
(k) Taxation
Provision for income tax expense comprises of current tax and deferred
tax. Provision for current tax is made with reference to taxable income
for the current accounting year by applying the applicable tax rate.
Deferred income tax charge reflects the impact of the current period
timing differences between taxable income and accounting income subject
to consideration of prudence. The deferred tax charge or credit is
recognised using prevailing tax rates. Deferred tax assets are
recognised only to the extent there is virtual certainty of realization
in future. Deferred tax assets/liabilities are reviewed as at each
balance sheet date based on developments during the period and
available case laws to reassess realization/liabilities.
(I) Provisions and contingencies
Provision is recognized when (i) the company has a present obligation
as a result of a past event;
(ii) it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; and (iii) a
reliable estimate can be made of the amount of the obligation.
A disclosure of a contingent liability is made when there is a possible
obligation that may, but probably will not, require outflow of
resources. Where there is possible obligation or a present obligation
and the likelihood of outflow of resources is remote, no provision or
disclosure is made.
(m) Foreign currency transactions
Foreign currency transactions are recorded at the rates prevailing on
the date of the transaction. Monetary assets and liabilities in
foreign currency are translated at year-end rates and the revenue
arising on settlement of transactions and translation of monetary items
is recognized in the revenue.
Mar 31, 2011
Convention
Financial statements are prepared to comply in all material respects
with applicable mandatory accounting standards in India and the
relevant presentational requirements of the Companies Act, 1956.
Basis of accounting
Financial statements are prepared in accordance with the historical
cost convention on the concept of going concern, except for the
revaluation of the net assets made as on March 31,2009 and as per
accrual basis of accounting.
Use of estimates
Preparation of financial statements involves making of estimates and
assumptions in accordance with generally accepted accounting
principles, that affect the reported amount of assets and liabilities
and disclosure of contingent liabilities at the date of the financial
statements and revenue and expenses during the periods reported. The
estimates are based as historical experience, where applicable, and
other assumptions that management believes are reasonable under the
circumstances. Due to inherent uncertainty involved in making
estimates, actual results may differ from those estimates under
different assumptions or conditions. Any revision to accounting
estimate is recognized prospectively in the current and future periods.
Fixed assets
Cost of assets with certain limits on economic life and cost is
capitalised. Cost (less cenvat, if any) will include inward freight,
duties, taxes and borrowing costs incurred on qualifying assets and
other incidental expenses related to acquisition.
Depreciation /amortisation/ impairment
Depreciation is calculated on fixed assets in a manner that amortises
the cost of the assets after commissioning over the economic useful
lives based on the rates specified in Schedule XIV to the Companies
Act, 1956 by equal annual instalments except for service equipments
which is depreciated at twenty percent. Depreciation on additions is
charged to revenue proportionately from the month the assets are used.
No depreciation is reckoned in the year of disposal.
The carrying amount of assets is reviewed at each balance sheet date if
there is any indication of impairment based on internal/external
factors. An impairment loss will be recognised wherever the carrying
amount of an asset exceeds its estimated recoverable amount. The
recoverable amount is the greater of the assets net selling price and
value in use. Provision for impairment will be reviewed periodically
and amended depending on changes in circumstances.
Inventories
Stores and spares for the operating equipments are stated at lower of
cost and estimated net realisable value, cost being ascertained on
first in, first out basis. Obsolete, slow moving and defective items of
inventories are adequately provided.
Investments
Long term investments are stated at cost less provision for diminution,
other than temporary, if any.
Revenue recognition
Revenue is recognised (i) on executed work, at contracted rates, (ii)
on other work yet to be completed, at estimated net realisable value,
(iii) from warehousing operations, at estimated net realisable value,
(iv) in respect of container freight station operations, at estimated
net realisable value and (v) in respect of goods lying in the Container
Freight Station auctioned by the Customs department , at the bid money,
net of related expenses on clearance of goods from the yard. Operating
earnings are reckoned net of the relevant expenses and losses claimable
from the constituents.
Amortisation of deferred revenue expenditure
Cost of structures and other expenses on leasehold land are amortised
over the estimated period the benefit from such expenditure is expected
to enure. Expenditure incurred on raising loans is amortised over the
period of the borrowings. Premium paid on prepayment of any borrowings
is amortised over the un-expired period thereof or sixty months,
whichever is less. Compensation paid under voluntary separation plan
is amortised over thirty six months or the period up to March 31,2011
whichever is less.
Employee benefits
Charge in respect of employee benefits is recognized as under (i) Short
term employee benefits- Provision for the obligations made on estimated
basis; (ii) Past employment benefits and other long term employee
benefits à (1) Deferred contribution plans-Companys contribution to
provident fund, employees state insurance and other funds are provided
on determination of the liability under the relevant schemes and
charged to revenue: (2) Gratuity and other retirement benefits-
Provision made on the basis of actuarial determination of the Companys
liability towards the said benefits at each balance sheet date using
the projected unit credit method; actuarial gains and losses are
recognized in the revenue.
Taxation
Provision for income tax expense comprises of current tax and deferred
tax. Provision for current tax is made with reference to taxable income
for the current accounting year by applying the applicable tax rate.
Deferred income tax charge reflects the impact of the current period
timing differences between taxable income and accounting income subject
to consideration of prudence. The deferred tax charge or credit is
recognised using prevailing tax rates. Deferred tax assets are
recognised only to the extent there is virtual certainty of realization
in future. Deferred tax assets/ liabilities are reviewed as at each
balance sheet date based on developments during the period and
available case laws to reassess realisation/liabilities.
Provisions and contingencies
Provision is recognized when (i) the company has a present obligation
as a result of a past event; (ii) it is probable that an outflow of
resources embodying economic benefits will be required to settle the
obligation; and (iii) a reliable estimate can be made of the amount of
the obligation. A disclosure of a contingent liability is made when
there is a possible obligation that may, but probably will not, require
outflow of resources. Where there is possible obligation or a present
obligation and the likelihood of outflow of resources is remote, no
provision or disclosure is made.
Foreign currency transactions
Foreign currency transactions are recorded at the rates prevailing on
the date of the transaction. Monetary assets and liabilities in
foreign currency are translated at year-end rates and the revenue
arising on settlement of transactions and translation of monetary items
is recognized in the revenue.
Mar 31, 2010
Convention
Financial statements are prepared to comply in all material respects
with applicable mandatory accounting standards in India and the
relevant presentational requirements of the Companies Act. 1956.
Basis of accounting
Financial statements are prepared in accordance with the historical
cost convention on the concept of going concern except for the
revaluation of the net assets made as on March 31,2010 and as per
accrual basis of accounting.
Use of estimates
Preparation of financial statements involves making of estimates and
assumptions in accordance with Generally Accepted Accounting
Principles, that affect the reported amount of assets and liabilities
and disclosure of contingent liabilities at the date of the financial
statements and revenue and expenses during the periods reported. The
estimates are based as historical experience, where applicable, and
other assumptions that management believes are reasonable under the
circumstances. Due to inherent uncertainty involved in making
estimates, actual results may differ from those estimates under
different assumptions or conditions. Any revision to accounting
estimate is recognized prospectively in the current and future periods.
Fixed assets
Cost of assets with certain limits on economic life and cost is
capitalised. Cost (less cenvat, if any) will include inward freight,
duties, taxes and borrowing costs incurred on qualifying assets and
other incidental expenses related to acquisition.
Depreciation / impairment
Depreciation is calculated on fixed assets in a manner that amortises
the cost of the assets after commissioning over the lives based on the
rates specified in Schedule XIV to the Companies Act, 1956 by equal
annual instalments except for service equipments which is depreciated
at twenty percent. Depreciation on additions is charged to revenue
proportionately from the month the assets are used. No depreciation is
reckoned in the year of disposal.
The carrying amount of assets is reviewed at each balance sheet date if
there is any indication of impairment based on internal/external
factors. An impairment loss will be recognised wherever the carrying
amount of an asset exceeds its estimated recoverable amount. The
recoverable amount is the greater of the assets net selling price and
value in use. Provision for impairment will be reviewed periodically
and amended depending on changes in circumstances.
Inventories
Stores and spares for the operating equipments are stated at lower of
cost and estimated net realisable value, cost being ascertained on
first in, first out basis. Obsolete, slow moving and defective items of
inventories are adequately provided.
Investments
Long term investments are stated at cost less provision for diminution,
other than temporary, if any.
Revenue recognition
Revenue is recognised (i) on executed work, at contracted rates, (ii)
on other work yet to be completed, at estimated net realisable value,
(iii) from warehousing operations, at estimated net realisable value,
(iv) in respect of container freight station operations, at estimated
net realisable value and (v) in respect of goods lying in the Container
Freight Station auctioned by the Customs department, at the bid money,
net of related expenses on clearance of goods from the yard. Operating
earnings are reckoned net of the relevant expenses and losses claimable
from the constituents.
Amortisation of deferred revenue expenditure
Cost of structures on leasehold land is amortised over the estimated
period the benefit from such expenditure is expected to enure.
Expenditure incurred on raising loans is amortised over the period of
the borrowings. Premium paid on prepayment of any borrowings is
amortised over the un-expired period thereof or sixty months, whichever
is less. Compensation paid under voluntary separation plan is amortised
over thirtysix months or the period up to March 31,2011 whichever is
less.
Employee benefits
Charge in respect of employee benefits is recognized as under (i) Short
term employee benefits- Provision for the obligations made on estimated
basis; (ii) Past employment benefits and other long term employee
benefits - (1) Deferred contribution plans-Companys contribution to
provident fund, employees state insurance and other funds are provided
on determination of the liability under the relevant schemes and
charged to revenue: (2) Gratuity and other retirement benefits-
Provision made on the basis of actuarial determination of the Companys
liability towards the said benefits at each balance sheet date using
the projected unit credit method; actuarial gains and losses are
recognized in the revenue.
Taxation
Provision for income tax expense comprises of current tax, deferred
tax. Provision for current tax is made with reference to taxable income
for the current accounting year by applying the applicable tax rate.
Deferred income tax charge reflects the impact of the current period
timing differences between taxable income and accounting income subject
to consideration of prudence. The deferred tax charge or credit is
recognised using prevailing tax rates. Deferred tax assets are
recognised only to the extent there is virtual certainty of realization
in future. Deferred tax assets/liabilities are reviewed as at each
balance sheet date based on developments during the period and
available case laws to reassess realization/liabilities.
Provisions and contingencies
Provision is recognized when (i) the company has a present obligation
as a result of a past event; (ii) it is probable that an outflow of
resources embodying economic benefits will be required to settle the
obligation; and (iii) a reliable estimate can be made of the amount of
the obligation. A disclosure of a contingent liability is made when
there is a possible obligation that may, but probably will not, require
outflow of resources. Where there is possible obligation or a present
obligation and the likelihood of outflow of resources is remote, no
provision or disclosure is made.
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