Annual Reports - Indraprastha Gas Limited

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2.12 Taxation Income tax expense comprises current tax, deferred tax and fringe benefit tax. Current Tax and Fringe Benefit Tax is amount of tax for the period determined in accordance with the Income-tax Act, 1961. Deferred Tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liability or deferred tax asset are recognized using the tax rates that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty of realisation in the future. Such assets are reviewed at each balance sheet date to reassess realisation. Where there are unabsorbed depreciation and carry forward losses under tax laws, deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that such deferred tax assets can be realised in future. 2.13 Earnings per share Basic earning per share is computed using the weighted average number of equity shares outstanding during the year. Diluted earning per share is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti dilutive. 2.14 Contingencies A provision is recognized in the financial statements where there exists a present obligation as a result of a past event, the amount of which can be reliably estimated, and it is probable that an outflow of resources would be necessitated in order to settle the obligation. Contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the enterprise, or is a present obligation that arises from past events but is not recognized because either it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or a reliable estimate of the amount of the obligation cannot be made. 2.15 Deposits with Government Agencies, Local Authorities and Other Electricity Companies Deposits given to Government agencies, local authorities and other electricity companies which are perennial in nature are charged to revenue in the year of payment. 3. Contingent liabilities 3.1 Income Tax cases In respect of Assessment Year 2001-02 to Assessment Year 2006-07, the department disallowed certain claims made or set offs availed by the Company. This resulted into adjustments to past carried forward losses aggregating Rs 29,448,913 (previous year Rs. 29,448,913) and demands raised aggregating Rs. 63,289,287 (Previous year Rs. 56,968,002) against which Company has deposited Rs. 32,858,902 (Previous Year Rs. 22,118,716) under protest. The Company has filed appeals against the above which are pending at various stages. 3.2 UP Trade Tax Cases The Commercial Tax department of Uttar Pradesh has raised the demand towards UP Trade Tax for the Assessment year 2007-08 amounting to Rs. 1,776,435 (Previous year Rs. 1,776,435) against which Rs. 863,019 (Previous Year Rs. 863,019) has been deposited and a Bank Guarantee of Rs. 914,000 is issued in favour of the department. The Company has filed appeals against the above demand with Tribunal, Commercial Taxes, Noida. 3.3 Bank Guarantees The Company’s total liability towards un-expired Bank Guarantees is Rs.494,809,876 (Previous year Rs. 219,175,559). 3.4 Service charges During the year the Company has received a demand of Rs. 43,745,684 towards service charges on purchase of natural gas for the period 1 July, 2008 to 31 March, 2009 The Company is of the view that the amount is not payable and is disputing the demand made by the supplier and hence no provision has been made in the books of accounts for this amount. 46
4. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs 701,143,333 (previous year Rs 639,812,199). 5. The Company has installed CNG Stations on land leased from various Government Authorities under leases for periods ranging from one to five years. However, assets constructed/installed on such land are depreciated generally at the rates specified in Schedule XIV to the Companies Act, 1956, as the management does not foresee non-renewal of the above lease arrangements by the Authorities. 6. Deposits from customers of natural gas, refundable on termination/alteration of the gas sales agreements, are considered as long term funds. 7. Earnings per share 47 For the Year ended For the Year ended March 31, 2009 March 31, 2008 Net profit attributable to Shareholders (in Rs.) 1,724,742,617 1,744,555,553 Weighted average number of equity shares (Nos.) 140,000,160 140,000,160 Nominal value per share (in Rs.) 10 10 Basic earnings per share of Rs 10 each (in Rs.) 12.32 12.46 The Company does not have any outstanding dilutive potential equity shares. Consequently, the basic and diluted earnings per share of the Company remain the same. 8. Segment reporting The Company operates in a single segment of Natural <strong>Gas</strong> Business mainly in the National Capital Region and therefore the disclosure requirements as per Accounting Standard 17 “Segment Reporting” are not applicable to the Company. 9. Management has carried out a review of the carrying value of assets as at 31 March 2009 in accordance with the provisions of Accounting Standard – 28, Impairment of Assets. Based on the review, the management is of the opinion that there are no impairment indicators that necessitate any adjustments to the carrying value of assets. 10. Managerial remuneration under Section 198 of the Companies Act, 1956 (see note below) For the year ended For the year ended 31 March, 2009 (Rs.) 31 March, 2008 (Rs.) Managing Director Salary and allowances 1,404,853 1,229,845 Perquisites 321,169 132,306 Contribution to provident and other funds* 162,756 76,419 Commission on Profit for financial year 2007-08 559,062 - 2,447,840 1,438,570 Whole Time Director (refer note below) Salary and allowances 1,555,066 1,290,036 Perquisites 599,545 355,889 Contribution to provident and other funds* 86,470 78,891 2,241,081 1,724,816 Total 4,688,921 3,163,386 * Does not include provisions for employee retirement benefits, which are based on actuarial valuation carried out on overall Company basis.
Page 3 and 4: BOARD OF DIRECTORS Shri B.C. Tripat
Page 5 and 6: Shri Murli Deora, Hon’ble Union M
Page 7 and 8: Smt Pratibha Devi Singh Patil, Hon
Page 9 and 10: Companies (Disclosure of Particular
Page 11 and 12: Dr. U.D. Choubey, Chairman & Managi
Page 13 and 14: FORM-B EFFORTS MADE IN TECHNOLOGY A
Page 15 and 16: REPORT ON CORPORATE GOVERNANCE I. C
Page 17 and 18: CODE OF CONDUCT The Board of Direct
Page 19 and 20: DETAILS OF SHAREHOLDERS’ COMPLAIN
Page 21 and 22: AT NATIONAL STOCK EXCHANGE (NSE) MO
Page 23 and 24: NON-MANDATORY REQUIREMENTS (1) CHAI
Page 25 and 26: MANAGEMENT DISCUSSION AND ANALYSIS
Page 27 and 28: Earnings per share Earnings per sha
Page 29 and 30: ANNEXURE TO THE AUDITORS’ REPORT
Page 31 and 32: 11. Based on our examination of the
Page 33 and 34: BALANCE SHEET AS AT MARCH 31, 2009
Page 35 and 36: PROFIT AND LOSS ACCOUNT FOR THE YEA
Page 37 and 38: CASH FLOW STATEMENT FOR THE YEAR EN
Page 39 and 40: SCHEDULES FORMING PART OF THE ACCOU
Page 47: 2.4 Depreciation and amortization (
Page 51 and 52: c) Value of imported and indigenous
Page 53 and 54: D. Balance Sheet Reconciliation 51

Annual Reports - Indraprastha Gas Limited

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