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 ACCOUNT16. Earning Per ShareBasic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted averagenumber of equity shares outstanding during the year.For the purpose of calculating diluted earning per share, the net profit or loss for the year attributable to equity shareholders and the weightedaverage number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.17. ProvisionsA provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources willbe required to settle the obligation, in respect of which a reliable estimate can be made.Provisions made in terms of Accounting Standard 29 are not discounted to its present value and are determined based on management estimatesrequired to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and appropriately adjusted to reflectthe current management estimates.18. Cash and Cash EquivalentsCash and cash equivalents as indicated in the Cash Flow Statements comprise cash at bank and in hand and short term investments with an originalmaturity of three months or less.19. Contingent liabilitiesLiabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and disclosedby way of notes to the accounts.B. Notes on accounts1. Contingent Liabilities not provided for in respect of(Rs. ’000)As at31st March, 2010As at31st March, 2009Claims against the Company not acknowledged as debts 16,355 11,887Claims towards liquidated damages not acknowledged as debts by the Company*.Against the above, debts of the like amount are withheld by the customers. However, the Companyexpects no liability to accrue on account of these claims.Outstanding bank guarantees and Letters of Credit (including Rs. 437,589 thousands (Rs. 473,409)for Joint Ventures)Corporate guarantees given for subsidiaries and other body corporates* (including Rs. 80,000thousands (Rs. 80,000 thousands) for Joint Ventures)725,199 5,80,6478,785,977 11,891,7932,727,300 2,045,800Disputed Income Tax, Service Tax and Sales Tax demands under appeal 316,819 157,585Share in Joint Venture Nil Nil* Includes Rs.90,000 thousands (Rs.90,000 thousands) in relation to which the original title deeds of the property situated at 8/2, Ulsoor Road,Bangalore are lying with Guwahati High Court as security on behalf of Bharat Hydro Corporation Limited.2.Estimated amount of contracts remaining to be executed on Capital Account and not provided for[Net of Advances][Share in Joint Venture – Rs. Nil (Rs. Nil)]673,173 566,448(Rs. ’000)90