Annual Report FY 2010-11 - Pipavav Shipyard

Annual Report 2010-11
21. Lenders in respect of secured / unsecured loans aggregating to Rs. 1,08,237.83 Lacs (Previous Year Rs. 97,179.75 Lacs)
have right to convert them at their option into fully paid up equity shares of the company if the company is in default for a
period more than what is specified in respective loan agreements.
22. Presently the company is liable to pay Minimum Alternate Tax (MAT) under section 115JB of the Income Tax Act, 1961 (“the
Act”) and the amount paid as MAT is allowed to be carried forward for being set off against the future tax liabilities computed
in accordance with the provisions of the Act, other than section 115JB, in next ten years. Based on the future projection of
the performances the company will be liable to pay the Income Tax as per provisions, other than under section 115JB, of
the Act. Accordingly as advised in Guidance Note on “Accounting for credit available in respect of Minimum Alternate Tax
under the Income Tax Act, 1961” issued by The Institute of Chartered Accountants of India, Rs. 1,127.65 Lacs being the
excess of tax payable under section 115JB of the Act over tax payable as per the provisions other than section 115JB of
the Act has been considered as MAT credit entitlement and credited to Profit and Loss Account. The aggregate MAT credit
entitlement available to the company as on March 31, 2011 is Rs. 1,127.65 Lacs.
23. In accordance with the Accounting Standard (AS – 28) on “Impairment of Assets” the Management during the year carried out
an exercise of identifying the asset that may have been impaired in respect of each cash generating unit. On the basis of this
review carried out by the Management, there was no impairment loss on Fixed Assets during the year ended March 31, 2011.
24. Financial and Other Derivative Instruments:
a. Derivative contracts entered into by the Company and outstanding as on March 31, 2011.
For Hedging Currency related risks
(Rs. in Lacs)
Particulars As at
March 31, 2011
As at
March 31, 2010
Forward Contract 3,572 -
b. All derivative and financial instruments acquired by the company are for hedging purpose only.
c. Foreign currency exposures that are not hedged by derivative instruments or forward contracts as at March 31, 2011
are:
(Rs. in Lacs)
Particulars 2010 – 2011 2009-2010
Receivables 46,975.90 8,108.64
Payables 79,694.65 84,802.76
25. Expenditure in Foreign Currency
(Rs. in Lacs)
Particulars 2010 – 2011 2009-2010
Legal and Professional Charges 1,719.67 1,260.53
Travelling Expenses 74.64 201.00
Fabrication and Manpower Charges 852.19 401.90
Interest and Bank Charges 217.66 630.01
Design and Drawing Fees 483.45 18.71
Technical Fees - 117.24
Brokerage and Commission - 173.84
Others 26.49 2.95
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Total 3,374.10 2,806.18
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