NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015 Note 1: General Information B.L. Kashyap And Sons Ltd (BLK) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Founded in 1978 as a partnership firm, BLK owes its success to Shri B L Kashyap, a veteran construction professional. Incorporated as a limited company in 1989. Today, BLK is one of India's most respected construction and infrastructure development companies with a pan India brsence. Our service portfolio extends across the construction of factories and manufacturing facilities, IT campuses, commercial & residential complexes, malls and hotels. Note 2 : Significant Accounting Policies The Company follows mercantile basis of accounting. The accounts are brpared on historical cost on going concern basis and are consistent with generally accepted accounting principles and materially comply with the notified Accounting Standards by the Companies (Accounting Standards) Rules 2006 (as amended) and the relevant provisions thereof. The significant Accounting policies followed by the Company are as stated below: 2.1 Fixed Assets Fixed Assets are shown at cost less accumulated debrciation. Cost comprises of purchase price, import duties and other non refundable taxes or levies and any other directly attributable costs. 2.2 Debrciation (a) The Company follows the written down value method in computing debrciation. (b) Debrciation is computed on the basis of useful lives of the Tangible Assets which are in accordance with part XI' of Schedule II of the Companies Act, 2013. (c) Debrciation is computed on intangible Assets in accordance with the Accounting Standard 26. (d) The Debrciation is computed or computer software on the basis of expired period of license to use and / or the expired life the assets. (e) The residual value of an asset shall not be more than five percent of the original cost of the asset. (f) Leasehold improvements are written off over the lease period. 2.3 Borrowing Costs Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue. 2.4 Investments Investments are classified as Current and Long-term, Current Investments are stated at lower of cost and fair value. Long-term Investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of Long-term Investments. 2.5 Inventory - Work-in-progress including materials at sites is valued at cost. - Stock in Trade is valued at lower of cost and net realizable value. 2.6 Revenue & Expenditure Recognition Revenue from construction is recognized as follows: Contract revenue rebrsents the cost of work performed on the contract plus proportionate margin using the percentage of completion method. Percentage of completion is determined as a proportion of cost of work performed to date to the total estimated contract costs. Full provision is made for any loss in the period in which it is foreseen. Project and construction related work in progress is reflected at cost till such time the outcome of the job cannot be ascertained reliably and at realizable value thereafter. The above policy is not materially different from the policy hitherto being followed and therefore there is no material variation in revenue booked. 2.7 Use of Estimates The brparation of financial statements is in conformity with generally accepted accounting principals. It requires estimates and assumptions to be made which affect the reported amounts of assets and liabilities on the date of the financial statements, and the reported amount of revenue and expenses during the reporting period. Difference between actual results and estimates are recognized in the year in which the results are known / materialized. 2.8 Employees Retirement Benefits The company has accounted for liability towards Gratuity and Leave Encashment on the basis of actuarial valuation. 2.9 Provision for Current and Deferred Tax Provision for current tax is made after taking into consideration various benefits and disallowances as per the Income Tax Act 1961. Deferred tax in accordance with AS-22 is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originates in one period and is capable of reversal in one or more subsequent periods. 2.10 Cash Flow Statement Cash Flows are reported as per the indirect method as specified in the Accounting Standard (AS-3), 'Cash Flow Statement'. 2.11 Impairment of Assets An asset is treated as impaired when the carrying cost of asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. 2.12 Foreign Currency Transactions (I) Initial Recognition Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount, the exchange rate between the reporting currency and the foreign currency at the date of the transaction. (II) Conversion Foreign Currency monetary items are reported using the closing rate. Non monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of transaction and nonmonetary items which are carried at fair value or similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined. (III) Exchange Difference Exchange difference arising on settlement of monetary items or on reporting company's monetary items at rates different from those at which they were initially recorded during the year, or reported in brvious financial statements, are recognized as income or as expenses in the year in which they arise. Note 3- Other Notes on Accounts Contingent Liabilities : 3.1.1 Claims against the company not acknowledged as debts: (a) Other demands not acknowledged as liability:- (Rs. in Lacs) Income Tax TDS 35.04 Service Tax 1398.01 Excise Duty 3.5 VAT 189.44 (b) The company has not provided for penal and overdue interest on the Outstanding Loans as on 31 March 2015. The aggregate of such penal and overdue interest is Rs. 8,78,94,779 (c) Differencial amount of Interest sacrificed by Bankers persuant to scheme of Corporate Debt Restructuring (Refer Note 6A) amount Rs. 17.70 Cr as Bankers have a right of recompose of sacrifices. (d) Additional tax liability, if any pending assessments is indeterminate. (e) No disputed/legal cases which may have any material and adverse financial implication pending against the company. 3.1.2 Guarantees : (a) Liability in respect of Bank Guarantees is Rs. 130,37,44,572 (Previous year Rs. 142,12,04,208) (b) Liabiility in respect of Letter of Credits is Rs. NIL (Previous year Rs. NIL) (c) Corporate Guarantees of Rs. 226,10,89,672 (Previous year Rs. 200,65,81,468) in favour of:- - Clients Rs. 74,10,89,672 - Subsidiaries Rs. 152,00,00,000 |
