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EVEREST KANTO CYLINDER LIMITED
9. Computation of profit for 2010-2011 2009-2010
Earnings per Share:
Profit for the year before earlier
year adjustments and Minority
(Rs. in Lac) (Rs. in Lac)
Interest 7,020.91 1,282.32
Add: Share of Minority Interest
Add / (Less): Tax Adjustments
24.45 8.32
for earlier years (net)
Net Earnings before Excess
5.70 (82.79)
Depreciation written back
Add: Excess Depreciation
7051.06 1,207.85
written back (net of tax) – 2,943.20
Net Profit
Weighted Number of
7,051.06 4,151.05
Equity Shares
Number of Equity Shares
outstanding at the end
105,859,052 101,157,682
of the year
Nominal Value per share
107,157,682 101,157,682
(in Rupees)
Basic and Diluted Earnings
Per Share (in Rupees) before
2.00 2.00
Excess Depreciation written back
Basic and Diluted Earnings
Per Share (in Rupees) after
6.66 1.19
Excess Depreciation written back 6.66 4.10
Note: FCCBs are considered to be anti dilutive for the
purpose of calculation of Earnings Per Share.
10. Deferred Tax: As at As at
(Rs. in Lac)
As at
31.03.2011 31.03.2010 31.03.2009
Deferred Tax Liability
on account of:
Depreciation
Inventory Valuation
2,763.98 2,473.45 422.65
under tax laws – 154.21 -
Deferred Tax Asset
on account of:
Inventory Valuation
2,763.98 2,627.66 422.65
under tax laws
Shares / FCCB
65.54 - 126.88
Issue Expenses 195.33 237.95 279.17
Employee Benefits 90.73 85.45 62.13
Others 2,216.89 1,198.09 30.60
Transfer to Exchange
2,568.49 1,521.49 498.78
Fluctuation Reserve
Deferred Tax (Asset) /
5.01 (18.02) 17.39
Liability (net) 200.50 1,088.15 (58.74)
11. Variation in Accounting Policies:
Employee benefits such as gratuity and long term
compensated absences are recognised by the UAE
subsidiary only in the year in which such liability is
discharged, where as employee benefits are recognised
on the basis of an actuarial valuation by others.
The impact of the above, in the opinion of the management,
would not be significant.
12. In respect of currency options contracts entered into, to hedge
highly probable forecast export transactions, the Company
has followed the principles set out in Accounting Standard -
30 - Financial Instruments: Recognition and Measurement
issued by the Institute of Chartered Accountants of India.
Consequently, such exchange variations are accumulated
in hedging reserve and recognized in the Profit and Loss
Account only on completion of the transaction. Accordingly,
debit balance in the Hedging Reserve, as at 31 st March,
2011, representing mark to market losses, in respect of
contracts maturing upto December, 2012, stands at
Rs. 365.43 Lac.
14. The Company has an investment of Rs. 200 Lac in 2,000,000
Equity Shares of GPT Steel Industries Private Limited (GPT).
As per the latest audited financial statements of GPT, the
networth has fully eroded. The Company has during the
year made an assessment and has accordingly provided
for diminution in value of investments made in GPT.
15. The Company has investments of Rs. 238.88 Lac in and
loans and other receivables aggregating Rs. 853.34 Lac
recoverable from Calcutta Compression & Liquefaction
Engineering Limited (CC&L), a subsidiary with a majority
stake. The networth of CC&L has fully eroded mainly on
account of pre-operating losses. In the opinion of the
management, after considering the projected earnings and
cash flows of CC&L, the improvements in its operational
performance during the last quarter of the current financial
year and the intention to hold this investment on a long term
and strategic basis, no provision for diminution in the value
of investment or for losses on account of loans and other
receivables is considered necessary, at present.
16. As a part of its global expansion plans, the Company has
formed a wholly owned subsidiary in Thailand viz. EKC
Industries (Thailand) Company Limited on 7 th October, 2010.
The said Company will cater to the needs of Thailand market,
since Thailand is promoting Natural Gas Vehicles in a big
way.
Annual Report 2010-11 Schedules forming part of Consolidated Financial Statements
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