Annual Report 2006-2007 - Gammon India

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Annual Report 2006-2007
(b) During the year, pursuant to the retrospective amendment of proviso to section 80 IA of the Income Tax Act, 1961 the Company
has reviewed it’s claim in respect of section 80 IA and has decided to provide for income tax of earlier years without considering
the benefits available u/s. 80 IA. The amount of short provision including interest amounting to Rs. 52.56 Crores is being debited
to the Profit & Loss Account as short provision of earlier years.
(c) GALM:
The tax rate applicable to the joint venture is 12%. For the purpose of determining the tax payable for the period, the accounting
profit has been adjusted for tax purposes. Adjustments for tax purposes include items relating to both income and expenses.
The adjustments are based on the current understanding of the existing tax laws, regulation and practices.
16. Cochin Bridge Infrastructure Company Limited (CBICL) depreciates its BOT project assets being the Bridge over the concession
period in its books. However, the depreciation as per the Income Tax Act does not fully cover the costs over the concession period.
The difference in the charge of depreciation is a permanent difference and hence not recognized in calculation of the deferred tax
liability/asset.
17. In case of Cochin Bridge Infrastructure Company Limited (CBICL) the Annuity income pursuant to the orders of Government of Kerala
dated 24 th January, 2005 and 1 st March, 2005, the revenue of the Company has become positive and due to this there is a virtual
certainty supported by convincing evidence that there would be sufficient future taxable income to realize the Deferred Tax Assets.
The entire amount of Deferred Tax Assets relates to the unabsorbed losses and depreciation as per Income tax Act, 1961.
18. Earning Per Share (EPS) :
Earnings Per Share (EPS) = Net Profit attributable to shareholders/Weighted Number of Shares Outstanding
(a) EPS before Prior Year Tax Charge:
Particulars As at
31 st March,
2007
As at
31 st March,
2006
Net Profit After Tax and Before Prior Period Year Tax Charge (Rs. in Crores) 91.54 143.58
Weighted Number of Shares during the period – Basic 8,67,44,670 7,76,37,190
Weighted Number of Shares during the period – Diluted 8,74,70,470 7,83,62,990
Earning Per Share – Basic (Rs.) 10.56 18.49
Earning Per Share – Diluted (Rs.) 10.46 18.31
(b) EPS After Prior Year Tax Charge:
Particulars As at
31 st March,
2007
As at
31 st March,
2006
Net Profit After Tax Prior Period Year Tax Charge (Rs.in Crores) 35.07 144.59
Weighted Number of Shares during the period - Basic 8,67,44,670 7,76,37,190
Weighted Number of Shares during the period - Diluted 8,74,70,470 7,83,62,990
Earning Per Share – Basic (Rs.) 4.04 18.62
Earning Per Share – Diluted (Rs.) 4.01 18.45
Weighted average number of Equity Shares is computed considering 91,86,900 & 13,72,700 no. of new Equity Shares allotted
under the Global Depository Receipts, on 27 th January, 2006 & 7 th February, 2006 respectively.
There are no potential Dilutive Equity Shares outstanding except 7,25,800 equity shares kept in abeyance from earlier equity
offerings.
19. Sundry Debtors/Loans and Advances:
(a) Recovery of VAT from Annuity Payments:
REL:
On the basis of an interim order of the Honourable Andhra Pradesh High Court, the National Highway Authority of India (NHAI)
recovered Rs. 4.74 Crores being VAT @4% from the annuities paid to Rajahmundry Expressway Limited (REL) by NHAI (including
all annuities of all past years which had been fully paid by NHAI to REL). This amount is included in sundry debtors.
The interim order has directed the NHAI to transfer this amount as a Fixed Deposit in any nationalized bank pending the final
order of the Honourable High Court. The Honourable High Court on 12th April, 2007 passed the final order of the Company’s
position and directed the NHAI to refund the said amount to REL.