Afcon Book.indd - Afcons Infrastructure Ltd.

More documents

Recommendations

Info

AFCONS INFRASTRUCTURE INTERNATIONAL LIMITED(d) Revenue recognitionInterest income is recognised as it accrues unless collectibility is in doubt.Dividend income is recognised when the right to receive payment is established.(e) Expense recognitionAll expenses are recognised for in the statement of comprehensive income on the accruals basis.(f)Income taxIncome taxes currently payable are provided for in accordance with the existing legislation of the various countries in which the Companyoperates.(g) Deferred taxDeferred tax is provided, using the liability method, for all temporary differences arising between the tax bases of assets and liabilities andtheir carrying values for financial reporting purposes. Currently enacted tax rates are used to determine deferred tax.The principal temporary differences arise from tax losses carried forward. Deferred tax assets are recognised to the extent that it is probablethat future taxable profit will be available against which the temporary differences can be utilised.(h) Related partiesRelated parties are individuals and companies where the individual or company has the ability, directly or indirectly to control the other partyor exercise significant influence over the other party in making financial or operating decisions.(i)(j)Impairment of assetsAt each reporting date the Company reviews the carrying amounts of its assets to determine whether there is any indication that those assetshave suffered any impairment loss. When an indication of impairment loss exists, the carrying amounts of the assets are assessed and writtendown to their recoverable amounts.ProvisionsProvisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable thatan outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of theobligation can be made. At the time of the effective payment, the payment is deducted from the corresponding provision.(k) EquityStated capital is determined using the nominal value of shares that have been issued.(l)Foreign currency translation(i) Functional and presentation currencyItems included in the financial statements are measured using the currency of the economic environment in which the Companyoperates (functional currency). The financial statements of the Company are presented in USD, which is the Company’s functional andpresentation currency.(ii) Transactions and balancesForeign currency transactions are translated into USD using the exchange rates prevailing at the dates of the transactions. Foreignexchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates ofmonetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income.(m) Consolidated financial statementsThe Company owns 100 % of the equity shares capital of Afcons Gulf International Projects Services FZE and 99 % in Afcons MadagascarOverseas SARL. International Accounting Standard “IAS 27 - Consolidated Financial Statements and Accounting for Investments inSubsidiaries”, require the Company to prepare consolidated financial statements which include the financial statements of the subsidiaries.The directors are of opinion that presentation of the consolidated financial statements that comply with International Financial ReportingStandards will not be useful to its parent as the company is wholly owned by Afcons Infrastructure Limited, situated at Afcons House, 16, ShahIndustrial Estate Veera Desai Road Azad Nagar P.O Post Box No. 11978, Andheri (W) Mumbai 400053, India which prepares consolidatedfinancial statements as per Indian GAAP and which is available for public use.3. Critical accounting estimates and judgementsThe following are significant management judgement in applying the accounting policies of the Company that have the most significant effecton the financial statements.(i) Determination of functional currencyThe determination of functional currency of the Company is critical since recording of transactions and exchange differences arising thereare dependent on the functional currency selected. As described in note 2, the directors have considered those factors therein and havedetermined that the functional currency of the Company is the USD.(ii) Investment in subsidiariesThe Company has taken advantage of the exemption provided by the Mauritian Companies Act 2001 allowing a wholly owned orvirtually wholly owned parent holding a Category 1 Global Business Licence not to present consolidated financial statements which containinformation about Afcons Infrastructure International Limited as an individual company and do not contain consolidated financialinformation as the parent of a group4. Estimation uncertaintyWhen preparing the financial statements, management undertakes a number of judgements, estimates and assumptions about recognitionand measurement of assets, liabilities, income and expenses. There has not been any significant judgement made by management in thepreparation of the financial statements during the year that may lead to a material impact on the results.The actual result may differ from the judgements, estimates and assumptions made by management and will seldom equal the estimatedresults.80
AFCONS INFRASTRUCTURE INTERNATIONAL LIMITED5. Investments in SubsidiariesDetails of investments are as follows:Investee Companies Country of incorporation % holding No of shares Cost USD2009AFCONS GULF INTERNATIONAL PROJECTS SERVICES FZE Fujairah 100 1000 272,287AFCONS MADAGASCAR OVERSEAS SARL Madagascar 99 99 1,070Total 273,357The above investments have been stated at costs which the directors consider to approximate their fair values.6. Stated capital812009 2008USDUSDShares issued and fully paid20,000 Ordinary shares of EURO 1 each at par 27,838 27,8387. Loan from holding company2009 2008USDUSDAfcons Infrastructure LimitedAt 1 January 290,470 290,470Payment during the year (290,470) -At 31 December - 290,470The loan from holding company is unsecured, bears interest at 12% per annum and is repayable after more than one year.8. Payables2009 2008USDUSDAccrued interest on loan - 3,682Accruals 4,525 6,0254,525 9,7079. TaxationUnder current laws and regulations in Mauritius, the Company is liable to pay income tax on its net income at a rate of 15%. The Company ishowever entitled to a tax credit equivalent to the higher of actual foreign tax suffered and 80% of Mauritius tax payable in respect of its foreignsource income tax thus reducing its effective tax rate to 3%.At 31 December 2009, the Company had accumulated tax losses of USD 11,665 (2008 : USD 15,449)The tax reconciliation is as follows:2009 2008USDUSDProfit / (loss) for the year / period 3,951,332 (16,836)Tax loss brought forward (15,449) -Exempt income (12,237) (113)Disallowed expenses - 1,500Adjustment for disallowed expenses (1,500) -Adjustment for exempt income 113 -3,922,169 (16,836)Income tax at 15% 588,325 -Effect of:Exempt Income (197,063) -Underlying tax (402,927) -Tax loss carried forward (11,665) (15,449)10. Financial risk factorsFair valuesThe carrying amounts of investments, cash and cash equivalents, receivables loan from related company and payables approximate their fairvalues.Currency profileThe currency profile of the Company’s financial assets and liabilities is summarised as follows:Financial assets Financial liabilities Financial assets Financial liabilities2009 2009 2008 2008USD USD USD USDUnited States Dollar(USD) 3,655,726 4,525 7,592 300,177Euro (Eur) 35,676 - 26,780 -Dirham (AED) 272,287 - 272,287 -Malagasy Franc (MGF) 1,070 - 1,070 -3,964,759 4,525 307,729 300,177
Page 2 and 3:
AFCONS INFRASTRUCTURE LIMITEDDIRECT
Page 4 and 5:
AFCONS INFRASTRUCTURE LIMITED12. AW
Page 7:
AFCONS INFRASTRUCTURE LIMITEDB. Oth
Page 11:
AFCONS INFRASTRUCTURE LIMITEDC. COM
Page 19 and 20:
AFCONS INFRASTRUCTURE LIMITEDSCHEDU
Page 23:
AFCONS INFRASTRUCTURE LIMITEDSCHEDU
Page 27 and 28:
AFCONS INFRASTRUCTURE LIMITEDiv) Co
Page 31 and 32: AFCONS INFRASTRUCTURE LIMITEDAssump
Page 33 and 34: AFCONS INFRASTRUCTURE LIMITEDDetail
Page 35: AFCONS INFRASTRUCTURE LIMITED17. Ma
Page 38 and 39: AFCONS INFRASTRUCTURE LIMITEDAdditi
Page 40 and 41: AFCONS INFRASTRUCTURE LIMITEDFINANC
Page 42 and 43: HAZARAT & COMPANY PRIVATE LIMITEDCO
Page 44: HAZARAT & COMPANY PRIVATE LIMITEDBA
Page 47 and 48: HAZARAT & COMPANY PRIVATE LIMITED7.
Page 49 and 50: SSS ELECTRICALS (INDIA) PRIVATE LIM
Page 59 and 60: AFCONS OFFSHORE AND MARINE SERVICES
Page 62: AFCONS OFFSHORE AND MARINE SERVICES
Page 65 and 66: AFCONS OFFSHORE AND MARINE SERVICES
Page 67 and 68: AFCONS CONSTRUCTION MIDEAST (LLC),
Page 75 and 76: AFCONS INFRASTRUCTURE INTERNATIONAL
Page 84 and 85: AFCONS MADAGASCAR OVERSEAS S.A.R.LD
Page 86 and 87: AFCONS MADAGASCAR OVERSEAS S.A.R.LB
Page 88 and 89: AFCONS MADAGASCAR OVERSEAS S.A.R.LS
Page 90 and 91: AFCONS MADAGASCAR OVERSEAS S.A.R.L4
Page 92 and 93: AFCONS MADAGASCAR OVERSEAS S.A.R.L7
Page 95 and 96: AFCONS GULF INTERNATIONAL PROJECTS
Page 97 and 98: AFCONS GULF INTERNATIONAL PROJECTS
Page 99 and 100: CONSOLIDATED FINANCIAL STATEMENT OF
Page 103: CONSOLIDATED FINANCIAL STATEMENT OF
Page 116: CONSOLIDATED FINANCIAL STATEMENT OF
show all

Afcon Book.indd - Afcons Infrastructure Ltd.

Create successful ePaper yourself

Delete template?

Save as template?