2009-10 Annual Report - SPML

ANNUAL REPORT 2009-10SPML INFRA LIMITED & ITS SUBSIDIARIES (formerly Subhash Projects and Marketing Limited)SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AND PROFIT & LOSS ACCOUNT(b) Minorities’ interest in net profit/loss of subsidiaries consolidated during the year has been identified and adjusted against the income in orderto arrive at the net income attributable to the shareholders of the Company. Their share of net assets has been identified and presented inthe Consolidated Balance Sheet separately.(c) The financial statements of SPM Holdings Pte. Ltd. have been prepared in accordance with Singapore Financial Reporting Standard (SFRS).The impact on account of any differences due to adoption of different accounting standards as stated above, in comparison to the IndianGenerally Accepted Accounting Principles (IGAAP) is not material.(d) In translating the financial statements of the non-integral foreign subsidiary for incorporation in the consolidated financial statements, the assetsand liabilities, both monetary and non-monetary are translated at the closing exchange rate, while income and expenses are translated ataverage exchange rate and all resulting exchange differences are accumulated in Foreign Currency Translation Reserve in Schedule 2.(e) The effect of acquisition of stakes in subsidiary companies on the financial statements are as follows:(Rs. ‘000)Name of SubsidiaryEffect on ConsolidatedProfit for the year (afterMinority Interest)Effect on Net Assetsas at March 31, 2010Allahabad Waste Processing Company Private Limited (9.08) 4.81Mathura Nagar Waste Processing Private Limited (9.08) 4.81(f) Investments in Associates have been accounted for using the equity method in accordance with Accounting Standard (AS) 23 ‘Accountingfor Investments in Associates in Consolidated Financial Statements’ notified by the Companies (Accounting Standards) Rules, 2006 (asamended).(g) The Company accounts for its share in the change in the net assets of the associate, post acquisition, after eliminating unrealised profit andlosses resulting from the transactions between the Company and its associate to the extent of its share, through its Profit & Loss Account tothe extent such change is attributable to the associate’s Profit & Loss Account and the same is added to/deducted from the cost of investmentsin the respective associate Companies. The difference between the cost of investment in the associate and the share of net assets at the timeof acquisition of shares in associate is identified in the financial statements as Goodwill or Capital Reserve, as the case may be, and the sameremain included in the carrying values of investments in associates.(h) The associate companies considered in the financial statements are as follows:Name of the AssociatesCountry ofIncorporationProportion of Ownership Interest31st March, 31st March,20102009Pondicherry Port Limited India 49.99% 49.99%Sanmati Infra Developers Pvt. Limited India 25.00% 25.00%Hydro Comp Enterprises ( India ) Limited India 50.00% 50.00%Instituform Pipeline Rehabillitation (P) Ltd. India 41.75% –*PT Vardhman Mining Services Indonesia 45.65% 45.65%PT Vardhman Logistics Indonesia 26.00% 26.00%Rabaan (S) Pte Limited Singapore 45.65% 45.65%* No previous year’s figures given since the company became associate during the year.(i) In terms of Accounting Standard (AS) 27 ‘Financial Reporting of Interests in Joint Venture’ notified by the Companies (Accounting Standards)Rules, 2006 (as amended), the Company’s proportionate interests in the Joint Ventures are consolidated as separate line items in the financialstatements along with the book values of assets, liabilities, income and expenses, after eliminating intra-group balances/transactions andunrealized profit and losses resulting from the transactions between the Company and the joint ventures.85