2009-10 Annual Report - SPML

SPML INFRA LIMITEDSPML INFRA LIMITED & ITS SUBSIDIARIES (formerly Subhash Projects and Marketing Limited)SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AND PROFIT & LOSS ACCOUNTNote:a. The estimates of future salary increase considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevantfactors, such as supply and demand in the employment market.b. The gratuity liability is unfunded. Accordingly, information regarding planned assets are not applicable.c. Amounts for the current and previous two periods are as follows:(Rs. in ‘000)Description March 31, 2010 March 31, 2009 March 31, 2008Defined Benefit Obligation 32,380 26,408 26,289Assets/ ( Liability) (32,380) (26,408) (26,289)The information in respect of defined benefit obligation for years prior to 2007-08 are not available and hence not furnished.14. Prior period items as indicated in the Profit & Loss Account comprise of the following:(Rs. in ’000)Particulars 2009-10 2008-09Debit:Share of Loss from SPML CISC JV 7,191 10,671Materials consumed - 31,973Direct Expenses 20,930 -Interest on Mobilisation advance 457 23,777Others 3,443 1,364Total (A) 32,021 67,785Credit:Purchase/Expenses wrongly recorded in earlier years now written back 9,321 44,254Total (B) 9,321 44,254Net (A-B) 22,700 23,53115. The Company has claimed 80IA benefits of Rs.2,052,698 thousands (Rs. 1,235,414 thousands) approx. having tax impact of Rs. 561,400thousands including Rs.183,900 thousands for the year, approx. under Income Tax Act, 1961 on construction contracts for certain infrastructureprojects executed on behalf of various departments / agencies of different State Governments during the financial years 2003-04 onwards. Thetax assessments for the financial years upto 2007-08 are already completed and the above claims have been fully allowed by the Tax Authorities.However, in-view of the recent amendment in the Finance Act ‘2010, the company has filed a writ with the Honorable Calcutta High Court,which has been admitted as well, challenging the validity of above retrospective amendment which as per legal opinion obtained, is ultra vires tothe main section of the Act. The Company does not expect any tax liability in this regard and thus no provision thereof, has been made in theseaccounts.16. Pursuant to resolution passed at the meeting of the Board of Directors of the Company held on February 27, 2010, the Company has decided todispose/sell its ‘ Cement Pole’ manufacturing unit situated at Tumkur in Karnataka and accordingly sold the said unit to the buyer for a lump sumconsideration of Rs. 6,515 thousands.The disclosure required by the Accounting Standard – 24, in respect of the said ‘ Discontinued Operation’ is given below:(Rs. in ’000)Particulars 2009-10 2008-09Revenue from discontinuing operations 6,613 9,546Expenses from discontinuing operations 6,263 10,063Pre-tax Profit/(loss) from activities attributable to discontinuing operations 350 (516)Carrying amount of assets as at balance sheet date 2,000 21,660Carrying amount of liabilities as at balance sheet date Nil 174Net cash flows attributable to the discontinuing operation 9,946 (17,080)104