In English - Bharat Heavy Electricals Ltd.

(b) Liquidated damages are provided in line with
the Accounting Policy of the company and the
same is dealt suitably in the accounts on
settlement or otherwise. Contingent liability
relating to liquidated damages is shown in
point no. 5 of Note no. 33.
(c) The provision for contractual obligation is made
at the rate of 2.5% of the contract revenue in
line with significant Accounting Policy No.13
to meet the warranty obligations as per the
terms and conditions of the contract. The same
is retained till the completion of the warranty
obligations of the contract. The actual
expenses on warranty obligation may vary
from contract to contract and on year to year
depending upon the terms and conditions of
the respective contract.
21. Previous year’s figures have been rearranged/
regrouped wherever practicable to make them
comparable to current year’s presentation and
rounded off to the nearest thousand rupees. Further,
previous year figures are given in the revised
Schedule VI format as notified by the Ministry of
Corporate Affairs from the current financial year
2011-12.
22. Liability due to micro and small enterprises has
been determined on the basis of database of such
undertakings created by units/divisions based on
the responses received from suppliers/subcontractors
as to their status and is given below:
2011-12 2010-11
` Lakh ` Lakh
Total outstanding dues
of Micro & Small
Enterprises NIL NIL
23. Revenue recognition as per Significant accounting
policy No: 9A, has been carried out in respect all
relevant orders.
24. Balances shown under debtors, creditors,
contractor’s advances, deposits and stock/ materials
lying with sub-contractors/fabricators are subject to
confirmation, reconciliation and consequential
adjustment, if any. The reconciliation is carried out
ongoing basis & provisions wherever considered
necessary have been made in line with the
guidelines.
ANNUAL REPORT 2011-12
192
25. Disclosure requirements of Accounting Standards
3, 7(R), 15(R), 17, 20, 21, 22 & 27 and Part IV of
Schedule VI of Companies Act are made at
company level.
(a) Accounting Standard 17 - The Company
operates in a single primary business namely
Fabrication / Erection on turnkey basis or
otherwise. The components manufactured by
the Company are meant for utilization in such
projects only. Therefore, the Company feels
no separate disclosure is required.
(b) Accounting Standard 20 – Computation of
Earnings per share (EPS) is as below:
(s in Lakh)
SL No. Description 2011-12 2010-11
1 No. of Shares 337978 Nos 337978 Nos
2 Profit / Loss before
considering Extra
Ordinary Items 1027.93 102.79
3 EPS before considering
Extra Ordinary Items 0.003 0.0003
4 Profit / Loss after
considering Extra
Ordinary Items 1044.17 877.56
5 EPS after considering
Extra Ordinary Items 0.0031 0.0025
(c) Accounting Standard 22 - In the absence of
certainty on the availability of future taxable
income, the deferred tax asset / liability is not
recognized.
(d) Accounting Standard 27 – The Company did
not have any Joint Ventures.
(e) Accounting Standard 28 - Impairment of assets
has not been carried out as per AS-28, as there
is no indication of a potential loss on
impairment of assets.
(f) The disclosure requirement of Accounting
Standard 5 was properly complied with.
(g) The Company has complied with the provisions
of AS 15 and operating the system of making
liability for Gratuity and Leave salary based
on Actuarial Valuation. An amount of ` 1530.27
Lakh (Previous year ` 1706.27 Lakh) is
provided towards Gratuity and ` 643.74 Lakh
(Previous year - ` 702.41 Lakh) is provided
towards Leave Salary. The calculation of
Gratuity and Leave Salary as per Actuarial
Valuation is as follows.