annual repot 2010-11 final
TRANSCRIPT
CONTENTS
Board of Directors 3
Directors’ Report 4
Auditors’ Report 9
Balance Sheet 12
Profit and Loss 13
Cash Flow Statement 14
Schedule forming part of the Accounts 15
1 Content.p65 2011/09/07, 03:57 PM2
Board of Directors
� Daya Krishna Goyal, Chairman
� Ajay Krishna Goyal, President & Managing Director
� Madhava Ravindra
� Rear Admiral (Retd.) Jagadish Janardan Baxi
� Major General (Retd.) Ashok Kalyan Verma
� Dr. Horst Eckert
� Premila Goyal
� Sanjay Krishna Goyal
� Sita Ram Agarwal
� Mohinder Pratap Gupta
� Harish Kumar Saraf
Auditors
Anil Maheshwari & Co.
Chartered Accountants
G-66/2, Gautam Nagar
New Delhi 110 049
Bankers
State Bank of India Axis Bank Limited Central Bank of India
Overseas Branch Statesman House Parliament Street Branch
Jawahar Vyapar Bhawan Ground Floor Jeevan Tara Building
1, Tolstoy Marg 148, Barakhamba Road Parliament Street Branch
New Delhi 110 001 New Delhi 110 001 New Delhi 110 001
Punjab National Bank ICICI Bank Limited IndusInd Bank Limited
Mid-Corporate Branch Phelps Building Gopal Das Building
A-9, Connaught Place 9A, Connaught Place 28, Barakhamba Road
New Delhi 110 001 New Delhi 110 001 New Delhi 110 001
Standard Chartered Bank Barclays Bank PLC ING Vysya Bank Limited
Wholesale Banking Eros Corporate Tower 101-107, Narain Manzil
H-2, Connaught Place Nehru Place 23, Barakhamba Road
New Delhi 110 001 New Delhi 110 019 New Delhi 110 001
Export-Import Bank of India
Statesman House
148, Barakhamba Road
New Delhi 110 001
Corporate Centre for
IT Enabled Engineering Services
Angelique Tower, Plot No. 12, Sector 125
Noida 201 301, Dist. Gautambudh Nagar
Uttar Pradesh, India
Phones : +91.120.4193000
Registered and Head Office
# 104-107, 1st Floor, Hemkunt Tower
98, Nehru Place, New Delhi 110 019, India
Phones : +91.11.26413873-74-75
Fax : +91.11.26413876
Email : [email protected]
Website : www.angelique-india.com
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4
DIRECTORS' REPORT
To,
The Members of
Angelique International Limited
Your Directors are pleased to present the Fifteenth Annual Report together with the audited accounts of the
Company for the Financial Year ended 31st
March, 2011.
FINANCIAL RESULTS
Rs. in Millions
Particulars Year ended Year ended
31st
March, 2011 31st
March, 2010
Sales and other income 8,903.15 7,621.55
Profit before Depreciation, amortization and tax,
exceptional and prior period items 853.74 740.01
Depreciation/ amortization 35.85 23.63
Profit before Tax 817.89 716.38
Profit after Exceptional items and Taxes 524.89 468.15
Balance brought forward 1,048.49 829.10
Balance available for appropriation 1,573.38 1,315.35
Appropriations :
Profit transferred to General Reserve 100.00 100.00
Dividends 127.57 127.57
Tax on distributed profits 20.82 21.19
Balance carried forward 1,324.99 1,048.49
OPERATIONS
The year, under review, has seen healthy growth of 17% in terms of revenue growth to Rs 8,903.15 million
against Rs 7,621.55 Million in the previous year. Profit Before Tax, depreciation and exceptional items is
Rs 853.74 million, against Rs 740.01 million during previous year. Tax outgo is Rs 278.96 million against
Rs 228.07 million during previous year, Profit After Tax and exceptional items stands at Rs 524.89 million, up
by 12.12%, over Rs 468.15 million in the previous year.
The profitability of the Company has been under pressure during the year due to volatile foreign exchange
markets and continuing weakness of the dollar coupled with rising input costs and growing competitive
business environment. With the better volume driven performance your company envisages to improve
margins in coming years.
International Operations
Africa, remains key market for your Company with international operations revenue contribution of 70%
followed by South East Asia and East Asia.In terms of segments, power related activities contributed 47% of
the operations revenue as compared to 54% during the previous year. Contribution from Agriculture and
potable water related projects contributed 18% against 24% last year. Industrial Project sector emerged with
19% revenue contribution
Domestic Operations
In domestic market., your company continues its focus on completion and closure of projects undertaken
during the last years. These results are envisaged to reach optimum level during the next financial year. Your
Directors take this opportunity to re-endorse their belief in growth of Indian Economy and infrastructure in
years to come which will provide vast opportunities for companies in EPC sector. As such with multiplicity of
strategies presence in Indian market shall be focused, in selective areas, in coming years.
FUTURE OUTLOOK
Your Company continues with successful inroads into its chosen African Continent markets with repeat orders
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from markets where your Company is already present. The nature of Company's business is also undergoing
shift toward higher end complex projects and long gestation projects. Your Directors are confident of
transformation of your Company into a world class multi skill engineering company.
The future has great potential and opportunities for your Company. Your Company is positioning itself in very
advantageous place in Africa continent which is emerging to be hot spot of business opportunities in 21st
Century. The development work in Africa is being supported very liberally not only by Government of India,
providing opportunities to Indian companies but also by multi-lateral developmental and local specialized
intermediary developmental banking institutions like African Development Bank, ECOWAS Bank for Industrial
Development in Western Africa. Your Company is already experiencing positive outcome in terms of successful
business acquisition from multi-lateral funding. Your Directors are also evaluating some business opportunities
in Middle East too which shall be taken up with due prudence and safeguards.
Your Directors are also weighing setting up/ acquiring of back end manufacturing facilities, in India, in high
volume and repetitive inputs to achieve synergies of operations leading to cost efficiency, quality products
and timely delivery for better customer satisfaction.
Your Company has also taken steps to diversify its operations in the areas of mining for long term sustainable
cash flows. Beginning is being made from Republic of Mali with initiation of steps for formation of a mining
company, to be named, Dhruv Metals and Minerals (Mali) Sarl. Intial investment in this venture is proposed to
be made out of internal accruals of the Company.
SUBSIDIARIES
Company's subsidiary in Repulbic of Mali, Societer d'Assemblage de Tracteurs SA abbreviated Mali Tracteurs
SA for assembly and marketing of tractors which became operational during previous financial year, has
moved on and has made cash profit of F.CFA 13.82 million (i.e Rs 1.30 million) during the financial year ended
on 31-12-2010. However due to high incidence of depreciation of F.CFA 296.13 million (i.e Rs 28.03 million)
there is an overall loss of F.CFA 282.31 million (i.e Rs 26.73 million).
In case of other subsidiary of the Company in Singapore, Angelique International Pte Limited, any fresh
activities are yet to take place and due to this a loss of US$ 45,202 (i.e Rs 2.02 million) reflecting the
administrative expenses of the subsidiary, has been incurred during the year ended 31/3/2011.
Annual Report of the Company's both the subsidiary companies pursuant of Section 212 of the Companies
Act 1956 is attached with Balance Sheet of the Company.
As reported earlier, during the year under review, Company has also taken steps for formation of another
subsidiary Company, proposed to be named Dhruv Metals and Minerals (Mali) Sarl in Republic of Mali, This
new subsidiary is proposed to undertake mineral exploration and mining activities in Mali.
DIVIDEND
Your Directors declared an interim dividend of 25% during the year, with a total cash outgo of Rs 37.19
million (consisting of divided of Rs 31.89 million and Dividend Distribution Tax of Rs 5.30 million). Your
Directors are pleased to recommend a final dividend of 75% which will involve a further cash outgo of
Rs 111.19 million (consisting of dividend payment of Rs 95.68 Million to shareholders and Rs 15.52 Million, by
way of Dividend Distribution Tax, as per current tax provisions ). Thus, total dividend pay out during the year
is Rs 127.57 million and dividend distribution tax of Rs 20.82 million.
DIRECTORS
Smt. Premila Goyal, Shri Sita Ram Agarwal and Dr. Horst Ekcert retire by rotation at the forthcoming Annual
General Meeting. Smt Premila Goyal being eligible, offers herself for re-appointment. Your Director also place
on record vote of thanks for the valuable services rendered by other two Directors Dr. Horst Eckert and Shri
S R Agarwal who are retiring by rotation.
BANKING ARRANGEMENTS
Your Company continues to have growing support of Banks. The consortium of banks providing fund based/
non fund based financial support to Company, led by State Bank of India Overseas Branch New Delhi has
been further expanded by induction of ING Vysya Bank. This along with other member banks being in
addition of the lead bank State Bank of India are Central Bank of India, Punjab National Bank, Axis Bank
Limited, Standard Chartered Bank, ICICI Bank Limited, IndusInd Bank Limited and Barclays Bank. The
Consortium consists of a mix nationalized, large private Indian and foreign banks, reflecting growing support
of the community of bankers.
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6
Export-Import Bank of India for their vital role and support in realizing the Exim Bank lines of credit funded
business.
Credit Rating
Your Directors are pleased to inform you that in respect of working capital facilities being availed by your
Company from consortium of banks, rating of your company for fund based cash credit facilities has been
upgraded by CRISIL to "BBB+ (Stable)" and for export related fund based and all non-fund facilities to "P2".
This rating by the leading credit rating agency of the country reflects the financial strength and prudence of
financial policies of the Company.
CORPORATE GOVERNANCE
Audit Committee
The Company continues to have the Audit Committee of Directors, which comprises of Shri Ajay Krishna
Goyal- President & Managing Director, as its Chairman and two independent directors Shri Sita Ram Agarwal
and Rear Admiral (Retd) J.J.Baxi. This Audit Committee complies with the provisions of Section 292A of the
Companies Act 1956. The audit committee has reviewed the Audit Report of statutory auditors as well
recommendations of Internal auditors from time to time.
Remuneration Committee
The remuneration of the Whole time /Managing Director (s) is approved by Board on the recommendations
of the Remuneration Committee within the overall approval of the shareholders and compliances under
Schedule XIII and other applicable provisions of Companies Act 1956.
Internal Audit
Company has made elaborate arrangement for internal audit, by way of appointment of firms of Chartered
Accountants, to ensure review of internal controls policies and procedures and adherence thereto, review
and reporting of the compliance, including secretarial and company law compliances. The management duly
considers and takes appropriate action on the recommendations made by internal auditors and Audit Committee
of the Board of Directors.
Angelique has policy of maintaining the highest standards of health , safety and environmental norms while
executing projects and adherence to this policy is ensured through proper reporting mechanism.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to section 217 (2AA) of the Companies Act, 1956, with regard to the audited annual accounts for
the year ended 31st
March, 2011, your Directors confirm ;
a) That in preparation of the annual accounts for the year ended 31st
March, 2011, the applicable accounting
standards read with the requirements set out under Schedule VI of the Companies Act, 1956 have been
followed along with proper explanation relating to departures, if any, wherever applicable.;
b) That the Directors have selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company as at 31st
March 2011 and of profit of the company for the year ended on that
date;
c) That the Directors have taken proper and sufficient care for the maintenance of adequate accounting
records in accordance with the provisions of Companies Act, 1956 for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities;
d) That the Directors had prepared the annual accounts on a 'going concern' basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS &
OUTGO
a) Conservation of energy
In accordance with the provisions of section 217 (2) (e) of the Companies Act, 1956 read with Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, there are no relevant particulars
to be reported with regard to conservation of energy as the Company's energy requirements are very
limited on account of the nature of its business .
b) Technology absorption
Your company is taking all possible steps to absorb latest efficient and green technologies with regard to
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its area of operations as a part of its corporate policy of customer satisfaction.
c) Foreign Exchange Earnings and Outgo
Foreign Exchange earned and used:
Amount (Rs in Million)
Earned 7,587.41
Used 2,817.59
AUDITORS
The statutory auditors of the Company, Anil Maheshwari and Company, Chartered Accountants, retire at the
conclusion of this ensuing Annual General Meeting and are eligible for re-appointment .
Company has received letters from the Auditors to the effect that their reappointment, if made, would we
within the prescribed limits under Section 224 (IB) of the Company Act 1956 and that they are not disqualified
for the reappointment with the meaning of Section 226 of the said Act.
The auditors' observations in their Report and the "Notes to Accounts" are self-explanatory and do not call for
any further explanation/comments by the Directors.
Branch Auditors
In respect of some of the foreign operations, to comply with the local requirements, your Company, is
appointing Branch Auditors in pursuance of Section 228(3) of the Companies Act, 1956 .
HUMAN RESOURCES
Human resources continue to remain a priority focus area with world class working environment and suitably
evolving policies to induct, train and retain talent in the company notwithstanding challenges being faced by
EPC sector in this regard.
Particulars of Employees
As required under Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees)
Rules 1975, as amended upto date, is attached to this Report.
ACKNOWLEDGEMENTS
Your Directors, would like to express their appreciation, to all the customers particularly governments of
foreign state clients including their ministries/authorities for their reposing their growing trust in your Company
as a reward to Company's relentless pursuit for delivering appropriate technological solutions to its customers.
Your Directors also wish to place on records their deep sense of appreciation to all the vendors and other
business partners, like BHEL, Water and Power Consultants (WAPCOS) and various service providers, and all
the member banks of the Banks' Consortium as well as Export-Import Bank of India, who have all supported
Company in continuing with the business growth .
Your Directors would like to convey appreciation for the committed services by the executive and staff of the
Angelique Family.
Thanks you all with best wishes. For and on behalf of the Board of Directors
Sd/-
Place : New Delhi Daya Krishna Goyal
Date : July 9, 2011 (Chairman)
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8
AN
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Inform
atio
n as per sectio
n 217(2A) of the Com
panie
s Act, 1956 read w
ith the Com
panie
s (Partic
ula
rs of Em
plo
yees) Rule
s, 1975 and form
ing part of the report
of D
irectors for the year ended M
arch 31, 2011
S.
Nam
eD
esig
natio
nQ
ualific
atio
nAge
Gross
Experie
nce
Date of
Last Em
plo
ym
ent &
No.
(Years)
Rem
uneratio
n(Years)
Appoin
tm
ent
Desig
natio
n
(Rs.)
1.
Mr. D
aya Kris
hna
Chairm
an &
W
hole
B.E. (M
echanic
al)
72
10,729,211
51
03-Jan-1996
Cim
mco Lim
ited,
Goyal
Tim
e D
irector
Chie
f Executiv
e Presid
ent
2.
Mr. Ajay Kris
hna
Presid
ent &
B.E. (Textiles)
43
8,289,846
20
01-Apr-2002
Angelique O
verseas Pvt. Ltd.,
Goyal
Managin
g D
irector
Whole
Tim
e D
irector
3.
Mr. M
ohin
der
Join
t Presid
ent &
B.E. (M
echanic
al)
57
6,089,000
36
01-Feb-1999
Cim
mco Internatio
nal,
Pratap G
upta
Whole
Tim
e D
irector
General M
anager
Note:(1) All D
irectors have been appoin
ted for full year.
(2) Rem
uneratio
n in
clu
ded basic
sala
ry, allow
ances, ex gratia
bonus, com
pany's
contrib
utio
n to PF and taxable
valu
e of perquis
ites.
(3) M
r. M
.P G
upta- Join
t Presid
ent &
w
hole
tim
e D
irector is
not rela
ted to any director of the Com
pany.
Pla
ce: N
ew
D
elh
iBy order of the Board
Date : July
9, 2011
Sd
/-
Da
ya
K
rish
na
G
oya
l
(Chairman)
AUDITOR'S REPORT TO THE MEMBERS OF
ANGELIQUE INTERNATIONAL LIMITED
1. We have audited the attached Balance Sheet of ANGELIQUE INTERNATIONAL LIMITED as at 31st
March, 2011 and also the Profit & Loss Account and Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally accepted in India. Those
Standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (as amended) issued by the Central
Government of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we report that :
(i) We have obtained all the information and explanations, which to the best of our knowledge and belief
were necessary for the purposes of our audit;
(ii) In our opinion, proper books of account as required by law have been kept by the Company so far as
appears from our examination of the books;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in
agreement with the books of account;
(iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this
report comply with the mandatory accounting standards, to the extent applicable to the company,
referred to in sub - section (3C) of Section 211 of the Companies Act, 1956;
(v) On the basis of the written confirmations received from the Directors, as on 31st
March, 2011, and taken
on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st
March,
2011 from being appointed as a Director in terms of clause (g) of sub - section (1) of Section 274 of the
Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to the explanations given to us, the said
accounts read together with the Accounting Policies and Notes on Accounts as per Schedule '25', give
the information required by the Companies Act, 1956 in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in India:-
a) in the case of Balance Sheet, of the state of affairs of the Company as at 31st
March, 2011;
b) in the case of the Profit and Loss Account of the Profit for the year ended on that date; and,
c) in the case of Cash Flow Statement of the cash flow for the year ended on that date.
For Anil Maheshwari & Co.
Chartered Accountants
Firm Registration No. 011558N
Sd/-
Place : New Delhi Anil Maheshwari
Date : July 09, 2011 Partner
Membership No. 071188
2 AIL 3-36.p65 2011/09/07, 03:57 PM9
10
ANNEXURE TO THE AUDITOR'S REPORT
Referred to in Paragraph 3 of our Report to even date:
(i) (a) In our opinion the Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets;
(b) The management has physically verified the fixed assets at reasonable intervals. In our opinion,
the frequency of physical verification is reasonable having regard to the size of the Company and
nature of its business. We have been informed that discrepancies noticed on such physical verification
have properly been dealt with in the books;
(c) The Company has not disposed off substantial part of the fixed assets during the year;
(ii) (a) In our opinion, the management has conducted physical verification of inventory at reasonable
intervals;
(b) In our opinion, the procedure of physical verification of the inventory followed by the management
are reasonable and adequate having regard to the size of the Company and nature of its business;
(c) In our opinion, the Company has maintained proper records of inventory and no material discrepancies
were noticed on physical verification of inventory;
(iii) (a) The Company has not granted any loans, secured or unsecured to companies, firms or other
parties covered under the register maintained under Section 301 of the Companies Act, 1956;
(b) The Company has granted loans to employees. In our opinion, the terms and conditions on which
loans have been granted are not prima facie prejudicial to the interest of the Company;
(c) The principal amount is being received regularly, no interest is being charged on loans given to
employees;
(d) There is no overdue amount of loan exceeding Rs. one lac.
(e) The company has not taken any loans, secured or unsecured from companies, firms or other
parties covered in the register maintained under Section 301 of the Companies Act, 1956;
(iv) In our opinion, there are adequate internal control systems commensurate with the size of the Company
and nature of its business with regard to purchase of inventory and fixed assets and for sale of goods
and services. In our opinion, there is no continuing failure to correct major weakness in internal control
system.
(v) (a) In our opinion and according to the explanations given to us, all transactions in respect of each
party that need to be entered in the register maintained under Section 301 of the Companies Act,
1956; have been so entered;
(b) In our opinion and according to the information and explanations given to us, each of these
transactions have been made at the prices which are reasonable having regard to the prevailing
market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system commensurate with the size and the nature of
its business.
(viii) The maintenance of cost records is not applicable to the Company as prescribed by the Central Government
in terms of section 209 (1) (d) of the Companies Act, 1956.
(ix) (a) In our opinion and according to the information and explanation given to us, the Company has
generally been regular in depositing undisputed dues of Provident Fund, Employees' State Insurance,
Income - tax, Sales tax, VAT, Wealth tax, Service tax, Custom Duty, Excise Duty, Education Cess
and other statutory dues with the appropriate authorities. There are no arrears of undisputed
outstanding statutory dues as at 31.03.2011 for a period of more than six months from the date
they became payable.
2 AIL 3-36.p65 2011/09/07, 03:57 PM10
(b) According to the information and explanations given to us and the records of the Company examined
by us, the particulars of dues of Income tax as on March 31, 2011 which have not been deposited
on account of dispute are given in Note No. 25.2.11 of Schedule '25'.
(x) There are no accumulated losses in the Company as at 31.03.2011. The Company has not incurred
cash losses in the financial year under report and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations given to us, the Company has not
defaulted in repayment of dues to financial institutions and banks.
(xii) The Company has not granted any loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) Provisions of chit fund, nidhi, mutual benefit fund and societies are not applicable to the Company.
(xiv) In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other
investments.
(xv) In our opinion and according to the information and explanations given to us, the Company has not
given any guarantee for loans taken by others from banks or financial institutions.
(xvi) In our opinion and according to the information and explanations given to us, the Company has applied
the term loan for the purpose for which the loan was obtained.
(xvii) In our opinion and according to the information and explanations given to us, the Company has not
used funds raised on short - term basis for long term investment.
(xviii)The Company has not made any preferential allotment of shares to parties and companies covered in
the register maintained under section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures.
(xx) The Company has not raised any money during the year by public issue of shares.
(xxi) On the basis of checks carried out by us and according to the information and explanations given to us,
no fraud on or by the Company have been noticed or reported during the year.
For Anil Maheshwari & Co.
Chartered Accountants
Firm Registration No. 011558N
Sd/-
Place : New Delhi Anil Maheshwari
Date : July 09, 2011 Partner
Membership No. 071188
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12
BALANCE SHEET AS AT MARCH 31, 2011
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
SCHEDULE AS AT AS AT
31ST
MARCH 2011 31ST
MARCH 2010
SOURCES OF FUNDS
Shareholders’ fund
Share Capital 1 127,566,630 127,566,630
Reserves and surplus 2 1,877,647,321 1,501,139,838
2,005,213,951 1,628,706,468
Loan funds
Secured loans 3 752,958,627 832,138,652
Unsecured loans 4 1,776,547 10,753,949
754,735,174 842,892,601
Deferred tax liability, net 5 27,719,000 10,850,000
2,787,668,125 2,482,449,069
APPLICATION OF FUNDS
Fixed assets 6
Gross block 940,081,600 792,504,462
Less: Accumulated depreciation 83,862,340 48,890,024
Net block 856,219,260 743,614,438
Investments 7 163,437,156 91,390,530
Current assets, loans and advances
Inventories 8 604,268,533 614,551,279
Sundry debtors 9 3,544,608,356 3,668,211,823
Cash and bank balances 10 1,125,360,265 998,026,600
Other current assets 11 28,259,357 36,212,100
Loans and advances 12 1,524,758,061 1,318,707,231
6,827,254,572 6,635,709,033
Current liabilities and provisions
Current liabilities 13 4,242,412,866 4,168,138,396
Provisions 14 816,829,997 820,126,536
5,059,242,863 4,988,264,932
Net current assets 1,768,011,709 1,647,444,101
Miscellaneous expenditure 15 - -
(To the extent not written off or adjusted)
2,787,668,125 2,482,449,069
SIGNIFICANT ACCOUNTING POLICIES
AND NOTES TO ACCOUNTS 25
The schedules referred to above form an integral part of the Balance Sheet
As per our report of even date
for Anil Maheshwari & Co.
Chartered Accountants
Sd/- Sd/- Sd/- Sd/-
Anil Maheshwari Daya Krishna Goyal Ajay Krishna Goyal Madhava Ravindra
Partner Chairman President and Managing Director Director
Membership No. 071188
Sd/-
Place : New Delhi Pankaj Goyal
Date : 09 July, 2011 CFO and Company Secretary
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PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED
MARCH 31, 2011
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
SCHEDULE FOR THE FOR THE
YEAR ENDED YEAR ENDED
31ST
MARCH 2011 31ST
MARCH 2010
INCOME
Sales 16 8,510,577,361 7,324,315,554
Other income 17 392,568,302 297,236,105
Increase/(decrease) in stock 18 (11,051,559) 269,432,267
8,892,094,104 7,890,983,926
EXPENDITURE
Purchases 3,948,669,190 3,620,054,650
Civil construction expenses 1,085,749,840 1,183,504,700
Personnel expenses 19 518,446,614 399,488,695
Administrative expenses 20 484,488,785 459,481,773
Selling expenses 21 1,777,227,907 1,285,050,072
Finance expenses 22 223,774,039 203,397,695
Depreciation 35,850,995 23,224,460
Preliminary expenses written off - 406,250
8,074,207,370 7,174,608,295
Profit before taxation 817,886,734 716,375,631
Provision for taxation 23 278,959,449 228,072,003
Profit after taxation 538,927,285 488,303,628
Exceptional and prior period items 24 14,035,491 20,162,419
Balance in profit and loss account brought forward 1,048,487,576 829,100,220
Amount available for appropriation 1,573,379,370 1,297,241,429
APPROPRIATIONS
Interim dividend on equity shares 31,891,658 -
Tax on interim dividend 5,296,806 -
Proposed dividend on equity shares 95,674,974 127,566,630
Tax on proposed dividend 15,520,873 21,187,223
Transferred to General Reserve 100,000,000 100,000,000
Balance carried forward 1,324,995,059 1,048,487,576
1,573,379,370 1,297,241,429
Earnings per share
On profit after taxation and exceptional items
Basic and diluted - Par value Rs. 10 per share 41.15 36.70
SIGNIFICANT ACCOUNTING POLICIES
AND NOTES TO ACCOUNTS 25
The schedules referred to above form an integral part of the Profit and Loss Account
As per our report of even date
for Anil Maheshwari & Co.
Chartered Accountants
Sd/- Sd/- Sd/- Sd/-
Anil Maheshwari Daya Krishna Goyal Ajay Krishna Goyal Madhava Ravindra
Partner Chairman President and Managing Director Director
Membership No. 071188
Sd/-
Place : New Delhi Pankaj Goyal
Date : 09 July, 2011 CFO and Company Secretary
2 AIL 3-36.p65 2011/09/07, 03:57 PM13
14
CASH FLOW STATEMENT FOR THE YEAR ENDED
ON MARCH 31, 2011
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
FOR THE FOR THE
YEAR ENDED YEAR ENDED
31ST
MARCH 2011 31ST
MARCH 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 817,886,734 716,375,631
Adjustments
Depreciation 35,850,995 23,224,460
Amortization of preliminary expenses - 406,250
Loss on sold/discarded fixed asset 2,072,880 5,469,215
Loss on sale/diminution of investment (net) 13,076,147 15,332,603
Dividend income (4,014,508) -
Interest income (40,059,824) (40,747,371)
Interest paid 24,561,398 16,540,997
Exchange difference on translation of foreign currency on (821,930) 21,388,873
cash and cash equivalents
Provision for deferred tax (16,869,000) (6,325,000)
Operating cash flows before working capital changes 831,682,892 751,665,658
Adjusted for:
Trade and other receivables (74,494,620) (742,134,757)
Inventories 10,282,746 (295,772,483)
Trade payables 87,846,931 1,030,649,949
Cash generated from operations 855,317,949 744,408,367
Exceptional and prior period items (14,035,491) (20,162,419)
Tax paid (262,090,449) (221,747,003)
Net cash provided by operating activities 579,192,009 502,498,945
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets and capital work-in-progeress (151,239,903) (296,046,840)
Proceeds from sale of fixed assets 711,206 1,003,823
Purchase of investments (100,922,773) (54,403,677)
Proceeds from sale of investments 15,800,000 13,778,770
Interest received 40,059,824 40,747,371
Dividend received 4,014,508 -
Net cash used in investing activities (191,577,138) (294,920,553)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings (net of repayments) (88,157,427) 2,274,077
Interest paid (24,561,398) (16,540,997)
Dividend paid (including dividend tax) (148,384,311) (148,753,853)
Net cash provided by financing activities (261,103,136) (163,020,773)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 126,511,735 44,557,619
Cash and cash equivalents at the beginning of the period 998,026,600 974,857,854
Effect of exchange difference on cash and cash equivalents 821,930 (21,388,873)
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 1,125,360,265 998,026,600
As per our report of even date
for Anil Maheshwari & Co.
Chartered Accountants
Sd/- Sd/- Sd/- Sd/-
Anil Maheshwari Daya Krishna Goyal Ajay Krishna Goyal Madhava Ravindra
Partner Chairman President and Managing Director Director
Membership No. 071188
Sd/-
Place : New Delhi Pankaj Goyal
Date : 09 July, 2011 CFO and Company Secretary
2 AIL 3-36.p65 2011/09/07, 03:57 PM14
SCHEDULES FORMING PART OF
THE BALANCE SHEET
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
AS AT AS AT
31ST
MARCH 2011 31ST
MARCH 2010
SCHEDULE “1”
SHARE CAPITAL
Authorised
15,000,000 (previous year: 15,000,000) equity shares of 150,000,000 150,000,000
Rs. 10/- each
Issued, subscribed and paid-up
12,756,663 (previous year: 12,756,663) equity shares of 127,566,630 127,566,630
Rs. 10/- each fully paid
Of the above, 8,100,900 equity shares were issued as fully paid
bonus shares in 2004-05 by capitalisation of share premium reserve,
general reserve and profit and loss account.
127,566,630 127,566,630
SCHEDULE “2”
RESERVES & SURPLUS
General reserve
Balance at the beginning of the year 433,376,000 333,376,000
Add : Transferred from profit and loss account 100,000,000 100,000,000
533,376,000 433,376,000
Share premium account 19,276,262 19,276,262
Profit and loss account
Balance in profit and loss account 1,324,995,059 1,048,487,576
1,877,647,321 1,501,139,838
2 AIL 3-36.p65 2011/09/07, 03:57 PM15
16
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
AS AT AS AT
31ST
MARCH 2011 31ST
MARCH 2010
SCHEDULE “3”
SECURED LOANS
From banks
Term loan from State Bank of India - 194,400,000
(Secured by way of first charge on the office premises at Noida,
second charge on the current assets of the company and
personal guarantee of four directors of the company including
the managing director)
(Repayable within one year - Rs. Nil; Previous year 55,600,000)
Working capital facilities
Schedules to Balance Sheet (Continued)
Packing credit accounts 196,692,485 137,306,035
Cash credit accounts (incl. Working Capital Demand Loan) 110,379,963 40,052,356
Overdraft against fixed deposits 30,123,770 30,612,137
Bills discounted 409,498,846 420,121,384
746,695,064 628,091,912
Vehicle loans
From ICICI Bank Limited 21,722 377,048
From HDFC Bank Limited - 355,998
From Kotak Mahindra Prime Limited 6,241,841 8,913,694
6,263,563 9,646,740
752,958,627 832,138,652
SCHEDULE “4”
UNSECURED LOANS
Short term loan from banks
Temporary overdraft in current account 1,776,547 10,753,949
1,776,547 10,753,949
(Under consortium of State Bank of India, Central Bank of India,
Axis Bank Limited, ICICI Bank Limited, IndusInd Bank Limited,
Standard Chartered Bank, Barclays Bank PLC, Punjab National Bank
and ING Vysya Bank Limited, and are secured by way of pari-passu
first charge on stock of finished goods, book debts, all other current
assets and movable fixed assets of the company, both present and
future (excluding specifically hypothecated vehicles) and pari-passu
first charge on the immovable fixed assets of the company situated
in India, excluding Noida property which is under second pari-passu
charge, both present and future, and personal guarantees of four
directors of the company including the managing director)
2 AIL 3-36.p65 2011/09/07, 03:57 PM16
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
AS AT AS AT
31ST
MARCH 2011 31ST
MARCH 2010
SCHEDULE “5”
DEFERRED TAX - NET
Deferred tax liabilities
On fiscal allowances on fixed assets 34,385,759 18,491,990
Deferred tax assets
On employees’ seperation and retirement 6,666,827 7,641,525
27,718,932 10,850,465
27,719,000 10,850,000
Schedules to Balance Sheet (Continued)
SCHEDULE “6”
FIXED ASSETS
GROSS BLOCK DEPRECIATION NET BLOCK
Description as at additions deletions/ as at as at for the deletions/ as at as at as at
01/04/2010 adjustments 31/03/2011 01/04/2010 year adjustments 31/03/2011 31/03/2011 31/03/2010
Tangible Assets :
Land - Freehold 3,434,699 - - 3,434,699 - - - - 3,434,699 3,434,699
Land - Leasehold 163,012,500 - - 163,012,500 - 1,897,913 - 1,897,913 161,114,587 163,012,500
Office Premises 297,761,591 6,801,379 40,000 304,522,970 2,262,897 6,195,146 40,000 8,418,043 296,104,927 295,498,694
Plant And Machinery* 160,380,831 92,124,730 1,484,900 251,020,661 11,476,998 11,514,181 2,015,296 20,975,883 230,044,778 148,903,833
Furniture And Fixtures 29,762,182 4,079,475 109,910 33,731,747 2,384,216 2,103,277 20,660 4,466,833 29,264,914 27,377,966
Office Equipments 23,401,716 4,099,333 899,791 26,601,258 1,666,817 1,343,665 153,000 2,857,482 23,743,776 21,734,899
Computers 20,747,527 4,236,391 196,765 24,787,153 8,332,047 3,420,266 145,750 11,606,563 13,180,590 12,415,480
Air Conditioners 2,819,944 680,770 - 3,500,714 103,299 141,694 - 244,993 3,255,721 2,716,645
Vehicles 79,586,970 37,098,233 931,399 115,753,804 17,949,822 8,951,093 319,510 26,581,405 89,172,399 61,637,148
Intangible Assets :
Softwares 11,596,502 2,119,592 - 13,716,094 4,713,928 2,099,297 - 6,813,225 6,902,869 6,882,574
Total 792,504,462 151,239,903 3,662,765 940,081,600 48,890,024 37,666,532 2,694,216 83,862,340 856,219,260 743,614,438
Previous Year 506,585,596 466,895,444 180,976,578 792,504,462 29,320,500 23,224,460 3,654,936 48,890,024 743,614,438 477,265,096
Depreciation for the year 37,666,532
Less : Adjustments in Plant and machinery for assets in branch office 1,815,537
Charged to Profit and Loss Account 35,850,995
* Plant and machinery includes Rs. 17,701,369 (Previous year - Nil) in transit.
2 AIL 3-36.p65 2011/09/07, 03:57 PM17
18
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
AS AT AS AT
31ST
MARCH 2011 31ST
MARCH 2010
SCHEDULE “7”
INVESTMENTS
Long term at cost, unless otherwise specified
UNQUOTED INVESTMENTS
Non-trade
(a) In Equity Shares fully paid-up
In Subsidiary Companies
12,000 (previous year: 12,000) ordinary shares of 338,371 338,371
Singapore $ 1 each of Angelique International Pte. Ltd.,
Singapore
51,000 (previous year: nil) ordinary shares of FCFA 51,903,677 51,903,677
10,000 each of Société d’Assemblage de Tracteurs
SA, Mali
Less : Diminution in value of investment 34,682,740 21,052,131
17,220,937 30,851,546
Share Application Money - Dhruv Minerals & Metals 111,625 -
Sarl., Mali
In Others
175,022 (previous year: 175,022) equity shares of 25,153,255 25,153,255
Rs. 10/- each of ACL Wireless Limited, India
(b) In Preference Shares fully paid up
1,500,000 (previous year: 1,500,000) non-cumulative 15,000,000 15,000,000
redeemable preference shares of Rs. 10/- each of
Spanind Designs Pvt. Ltd., India
(c) In Debentures
Nil (previous year: 150,000) non-convertible - 15,000,000
redeemable debentures of Rs. 100/- each of
Spanind Designs Pvt. Ltd., India
57,824,188 86,343,172
CURRENT INVESTMENTS
In Mutual Fund - at cost
600 (previous year: 1,400) units of Crayon Capital 600,000 1,400,000
Art Fund - Scheme 1
200,000 (previous year: 200,000) units of Tata Indo-Global 2,000,000 2,000,000
Infrastructure Fund
100,000 (previous year: 100,000 ) units of Axis Equity Fund 1,000,000 1,000,000
100,000 (previous year: 100,000 ) units of Principal 1,500,000 1,500,000
Mutual Fund
5,073,859.055 (previous year: nil) units of SBI Ultra Short 50,769,034 -
Term Fund - Institutional Plan - Daily Dividend
4,581,433.529 (previous year: nil) units of SBI Magnum 50,042,114 -
Income Fund - FRSPB - Weekly Dividend
105,911,148 5,900,000
Less : Diminution in value of current investment 298,180 852,642
105,612,968 5,047,358
163,437,156 91,390,530
During the year, the following current investments were purchased and sold:
(1) 1,492,510.5819 Units of SBI Magnum Insta Cash Fund - Daily Dividend Option, at cost of Rs. 25,000,000
(2) 19,988,007.196 Units of SBI-SHF Ultra Short Term Fund, Institutional Plan - Daily Dividend Option, at cost of
Rs. 220,000,000.
Schedules to Balance Sheet (Continued)
2 AIL 3-36.p65 2011/09/07, 03:57 PM18
Schedules to Balance Sheet (Continued)
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
AS AT AS AT
31ST
MARCH 2011 31ST
MARCH 2010
SCHEDULE “8”
INVENTORIES
As taken, valued and certified by the management
Finished goods 249,561,473 240,324,915
Consumables and spares 27,109,029 26,340,216
Work in progress 327,598,031 347,886,148
604,268,533 614,551,279
SCHEDULE “9”
SUNDRY DEBTORS
Unsecured, considered good
Debts outstanding for a period exceeding six months
From Subsidiary 35,043,614 52,681,749
From Others 767,410,339 686,135,723
Other Debts
From Subsidiary 49,485,553 39,163,298
From Others 2,692,668,850 2,890,231,053
3,544,608,356 3,668,211,823
SCHEDULE “10”
CASH AND BANK BALANCES
Cash and cheques in hand 6,446,388 1,686,915
Balances with scheduled banks
In current accounts 26,473,071 31,529,904
In EEFC current accounts 273,427,265 293,754,024
In deposit accounts 176,869,562 178,847,927
In margin money accounts 559,609,871 460,180,463
Balances with non-scheduled banks outside India
In current accounts 82,534,108 32,027,367
1,125,360,265 998,026,600
SCHEDULE “11”
OTHER CURRENT ASSETS
Unsecured, considered good
Security deposits 20,710,723 23,956,705
Deposits with Government, public bodies and others 4,109,510 1,200,000
Interest accrued 3,439,124 11,055,395
28,259,357 36,212,100
SCHEDULE “12”
LOANS AND ADVANCES
Unsecured, considered good
Advances to suppliers 280,477,137 226,771,055
Advances recoverable in cash or in kind or for value to 479,159,971 367,574,632
be received
Advances with Government and public bodies
Export incentives receivable 120,410,870 114,526,864
Other advances - 397,605
Advances Tax 644,488,696 609,437,075
Advances with subsidiaries 221,387 -
1,524,758,061 1,318,707,231
2 AIL 3-36.p65 2011/09/08, 09:50 AM19
20
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
AS AT AS AT
31ST
MARCH 2011 31ST
MARCH 2010
SCHEDULE “13”
CURRENT LIABILITIES
Sundry creditors
Micro, small and medium enterprises (Refer note 25.2.12) 8,252,392 -
Others 1,447,472,376 1,824,226,360
Advances from customers 1,996,852,170 1,377,483,523
Other liabilities 789,835,928 966,428,513
4,242,412,866 4,168,138,396
SCHEDULE “14”
PROVISIONS
Taxation 682,500,000 637,500,000
Wealth Tax 670,661 -
Fringe benefit tax 9,200,000 16,283,166
Employees’ benefit 13,263,489 17,589,517
Proposed dividend 95,674,974 127,566,630
Tax on proposed dividend 15,520,873 21,187,223
816,829,997 820,126,536
SCHEDULE “15”
MISCELLANEOUS EXPENDITURE
To the extent not written-off or adjusted
Preliminary expenses - 406,250
Less: Written-off during the year - 406,250
- -
Schedules to Balance Sheet (Continued)
2 AIL 3-36.p65 2011/09/07, 03:57 PM20
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
FOR THE FOR THE
YEAR ENDED YEAR ENDED
31ST
MARCH 2011 31ST
MARCH 2010
SCHEDULE “16”
SALES
From projects and goods 7,124,223,636 6,346,270,652
From services 1,386,353,725 978,044,902
8,510,577,361 7,324,315,554
SCHEDULE “17”
OTHER INCOME
Miscellaneous income 2,118,861 9,889,345
Interest on deposits 40,059,824 40,747,371
Dividend income 4,014,508 -
Insurance claim received 8,576,233 1,134,801
Export incentives 245,320,565 223,793,223
Balances written-back (net) 71,675,769 -
Exchange Fluctuation - net 20,802,542 21,671,365
392,568,302 297,236,105
Schedules to Profit & Loss Account
SCHEDULE “19”
PERSONNEL EXPENSES
Salary and perquisites 433,254,949 342,703,418
Directors' remuneration 24,526,614 17,771,242
Contribution to employees' welfare funds 21,832,884 19,527,468
Staff welfare expenses 38,832,167 19,486,567
518,446,614 399,488,695
SCHEDULE “20”
ADMINISTRATIVE EXPENSES
Travelling and conveyance expenses 197,525,459 122,391,369
Communication expenses 18,915,659 18,018,132
Rent, rates and taxes 136,511,419 85,970,762
Legal and professional expenses 17,541,220 73,334,657
Repair and maintenance expenses 23,683,383 21,092,584
Vehicle running and maintenance expenses 19,119,208 42,529,802
Water and electricity expenses 18,822,917 12,146,931
Printing and stationery expenses 9,267,621 6,785,637
Insurance expenses 3,976,623 1,987,192
Miscellaneous expenses 25,645,249 45,702,706
Auditors' remuneration 1,448,909 917,000
Balances written-off (net) - 17,502,269
Donation 9,958,238 5,612,287
Loss on sold/discarded fixed assets 2,072,880 5,469,215
Loss on sale of investments - 21,230
484,488,785 459,481,773
SCHEDULE “18”
VARIATION IN STOCK
Closing
Finished goods 235,847,704 240,324,915
Finished goods - in transit 13,713,769 -
Work in progress 327,598,031 577,159,504 347,886,148 588,211,063
Opening
Finished goods 240,324,915 132,214,657
Work in progress 347,886,148 588,211,063 186,564,139 318,778,796
Variation in stock [Increase/(Decrease)] (11,051,559) 269,432,267
2 AIL 3-36.p65 2011/09/07, 03:57 PM21
22
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
FOR THE FOR THE
YEAR ENDED YEAR ENDED
31ST
MARCH 2011 31ST
MARCH 2010
Schedules to Profit & Loss Account (Continued)
SCHEDULE “23”
PROVISION FOR TAXATION
Income tax for the year
Current tax 265,000,000 230,000,000
Wealth tax 670,661 -
Deferred tax 16,869,000 6,325,000
Taxes for earlier years (net) (3,580,212) (8,252,997)
278,959,449 228,072,003
SCHEDULE “24”
EXCEPTIONAL AND PRIOR PERIOD ITEMS
Service tax and interest thereon for earlier years - 4,815,150
Prior period items
Purchases - (511,408)
Civil construction expenses 781,128 -
Administrative expenses 107,565 529,339
Selling expenses 70,651 17,965
Diminution in value of current investments 13,076,147 15,311,373
14,035,491 20,162,419
SCHEDULE “21”
SELLING EXPENSES
Advertisement and publicity expenses 1,509,792 2,032,429
Clearing and forwarding expenses 150,890,638 76,600,331
Inland freight outwards 52,166,678 40,952,813
Air/sea freight on sales 353,597,899 205,606,554
Commission/discount on sales 460,105,826 474,008,123
Project consultancy charges 143,732,803 51,198,958
Delegation expenses 8,110,237 27,211,765
Documentation expenses 55,683,488 13,373,626
Inspection expenses 14,304,519 15,285,325
Installation and commissioning expenses 121,230,018 115,145,453
ECGC premium charges 5,140,954 6,132,962
Marine insurance expenses 30,386,114 13,594,820
Sales promotion expenses 334,599,220 225,833,073
Sample expenses - 17,765
Miscellaneous selling expenses 45,769,721 18,056,075
1,777,227,907 1,285,050,072
SCHEDULE “22”
FINANCE EXPENSES
Interest to banks 90,135,682 65,260,945
Interest to others 3,490,456 10,832,469
Bank charges 130,147,901 127,304,281
223,774,039 203,397,695
2 AIL 3-36.p65 2011/09/07, 03:57 PM22
SCHEDULE “25” SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS
25.1 Significant accounting policies
25.1.1 Basis of preparation of financial statements
The financial statements are prepared in accordance with Generally Accepted Accounting Principles (“GAAP”)
under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as
specified in the Companies (Accounting Standards) Rules, 2006, and the provisions of the Companies Act, 1956.
25.1.2 Use of estimates
The preparation of the financial statements in conformity with GAAP requires Management to make estimates and
assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets
and liabilities as at the date of the financial statements and reported amounts of income and expenses during the
period. Examples of such estimates include provisions for doubtful debts, future obligations under employee retirement
benefit plans, income taxes, post-sales customer support and the useful lives of fixed assets and intangible assets.
25.1.3 Fixed assets
Fixed assets are stated at cost net of taxes, less accumulated depreciation. All costs are capitalized until fixed
assets are ready for use.
25.1.4 Depreciation
Depreciation on fixed assets is provided on the straight line method at the rates and in the manner prescribed in
Schedule XIV to the Companies Act, 1956. Depreciation for fixed assets purchased/sold during the year has been
provided on pro-rata basis. Leasehold land is amortised over the unexpired lease period.
25.1.5 Impairment of assets
The Company on an annual basis tests the carrying amount of assets for impairment so as to determine -
• the provision required for impairment loss, if any.
• the reversal, if any, required of impairment loss recognised in previous periods.
25.1.6 Investments
Current investments are carried at lower of cost or fair value. Cost of overseas investments comprises the Indian
Rupee value of the consideration paid for the investment. Long-term investments are carried at cost. Provision for
diminution is made if the decline is other than temporary in nature.
2 5.1.7 Revenue recognition
Revenue is recognized to the extent that it can be reliably measured and is probable that the economic benefits will
flow to the Company.
• The revenue in respect of export sales of products is recognized when the significant risks and rewards of
title of the goods are transferred to the customers as per Inco terms.
• The revenue in respect of export of services is recognized when the services are rendered and bills for
services raised.
• The revenue in respect of contracts for supplies, erection and installation is recognized when the supplies
have been effected, however in cases where erection and installation is pending, attributable expenses to
be incurred for erection and installation are provided for on best estimate basis.
• Liquidated damages for delay in completion of projects/contracts in terms of the agreement are provided
for in the accounts.
• The revenue in respect of other contracts is recognized on the basis of work completed as per terms and
conditions of respective agreements.
• Inter-branch transfers are not included in export sales.
• In work-sharing Joint Venture agreements, revenue, expenses, assets and liabilities are accounted for in
the accounts to the extent work is executed by the Company.
• The revenue in respect of export incentives, i.e., DEPB, Duty Drawback and Focus Market Scheme is
recognized on post-export basis at estimated realisable value to the Company.
• Interest is recognized using the time-proportion method, based on rates implicit in the transaction.
25.1.8 Inventories
• Closing Stock of finished goods are stated at cost or net realizable value whichever is lower.
• Project and construction related work-in-progress are stated at cost.
• Consumables are valued at cost. Cost is arrived at on FIFO basis.
Schedules to Financial Statements for the year ended March 31, 2011
2 AIL 3-36.p65 2011/09/07, 03:57 PM23
24
25.1.9 Foreign currency transactions
Revenue from overseas customers and collections deposited in foreign currency bank accounts are recorded at the
exchange rate as of the date of the respective transaction. Expenditure in foreign currency is accounted for at the
exchange rate prevalent when such expenditure is incurred. The exchange differences arising on foreign currency
transactions are recognized as income or expense in the period in which they arise.
Fixed assets purchased at overseas offices are recorded at cost, based on the exchange rate as of the date of
purchase. The charge for depreciation is determined as per the Company’s accounting policy.
Monetary items that are denominated in foreign currency are translated at the exchange rate prevalent at the date
of the balance sheet. The resulting difference is also recorded in the profit and loss account.
Any profit or loss arising on cancellation of a forward contract is recognised as income or expense for the year.
25.1.10 Retirement benefits to employees
25.1.10.a. Gratuity
The gratuity liability in respect of the eligible employees of the Company is provided on the basis of
actuarial valuations and is covered under a policy taken with Kotak Mahindra Old Mutual Life Insurance
Ltd. and LIC of India. Premium paid for the policy is charged to profit and loss account.
25.1.10.b. Leave encashment
Leave encashment liability is provided on the basis of actuarial valuation and is charged to profit and loss
account.
25.1.10.c. Provident fund and Employees’ state insurance fund
Contribution to Provident fund and Employees’ state insurance fund is made in accordance with the
provisions of the respective Acts and is charged to profit and loss account.
25.1.11 Taxes on income
Current tax is provided on the basis of profit for the year after considering applicable tax rates and laws.
Deferred tax is provided on timing difference between tax and accounting treatments that originate in one period
and are expected to be reversed or settled in subsequent periods. Deferred Tax Assets and Liabilities are measured
using the enacted or substantially enacted tax rate for continuing operations. Deferred Tax Assets are recognised
only if there is reasonable certainty that sufficient future taxable income will be available against which such
deferred tax asset can be realised.
25.1.12 Earnings per share
In determining earnings per share, the Company considers the net profit after tax and includes the post tax effect
of any extra-ordinary / exceptional item. The number of shares used in computing basic earnings per share is the
weighted average number of shares outstanding during the period. The number of shares used in computing
diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per
share, as adjusted for the effects of all dilutive potential equity shares.
25.1.13 Cash flow statement
Cash flows are reported using the indirect method as set out in the Accounting Standard (AS-3) on Cash Flow
Statements issued by the Institute of Chartered Accountants of India, whereby net profit before tax is adjusted for
the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, investing and financing activities of the Company are
segregated.
Cash and cash equivalents at the beginning and end of the year represent cash and bank balances only.
25.1.14 Borrowing cost
Borrowing costs include interest, fees and other charges incurred in connection with the borrowing of funds and is
considered as revenue expenditure for the year in which it is incurred except for borrowing cost attributed to the
acquisitions/improvement of qualifying capital asset and incurred till the commencement of commercial use of the
asset and which is capitalized as cost of that asset.
25.1.15 Contingencies and provisions
A provision is recognised when the company has a present obligation as a result of past event and it is probable
that an outflow of resources embodying economic benefit will be required to settle the obligation in respect of
which a reliable estimate can be made. Provisions are not discounted to their present value and are determined
based on the best estimate of the expenditure required to settle the obligation at the balance sheet date. These are
reviewed at each balance sheet date and adjusted to reflect the current best estimate.
A contingent liability is disclosed, unless the possibility of an outflow of resources embodying the economic benefit
is remote.
Contingent liabilities are disclosed after careful evaluation of the facts and legal aspects of matter involved.
Schedules to Financial Statements for the year ended March 31, 2011 (Continued)
2 AIL 3-36.p65 2011/09/07, 03:57 PM24
25.2 Notes on accounts
25.2.1 Capital commitments and contingent liabilities
PARTICULARS AS AT AS AT
31ST
MARCH 2011 31ST
MARCH 2010
Estimated amount of unexecuted capital contracts 134,574,087 -
(net of advances and deposits)
Bank guarantees outstanding (net of margin money) 3,383,571,743 2,297,437,027
Letter of credits outstanding (net of margin money) 787,904,017 928,926,358
Claims against the Company not acknowledged as debts -
• In respect of Income tax for A. Y. 2002-03 5,907,977 5,907,977
• In respect of Income tax for A. Y. 2003-04 5,687,664 5,687,664
• In respect of Income tax for A. Y. 2004-05 2,006,609 2,006,609
• In respect of Income tax for A. Y. 2005-06 448,678 448,678
• In respect of Income tax for A. Y. 2007-08 - 2,455,438
• In respect of Income tax for A. Y. 2008-09 141,036,989 -
• In respect of Sales tax for F. Y. 2002-03 409,352 409,352
• In respect of Sales tax for F. Y. 2003-04 94,679 94,679
Forward contracts outstanding -
In US $ - 19,000,000
Equivalent approximate in Rs. - 857,660,000
Options outstanding -
Range barrier options in US $ 5,250,000 10,000,000
Equivalent approximate in Rs. 234,412,500 451,400,000
FOR THE YEAR FOR THE YEAR
ENDED ENDED
31ST
MARCH 2011 31ST
MARCH 2010
25.2.2 Managerial remuneration
Paid/payable to Managing Director/Whole-time Directors :
• Salary 18,639,600 14,680,800
• Contribution to provident and other funds 1,490,400 1,172,160
• Allowances 3,358,607 1,657,882
• Other perquisites 1,619,450 260,400
25,108,057 17,771,242
25.2.3 Directors’ travelling
Travelling and conveyance include Directors’ travelling of Rs. 19,216,935 (Previous year - Rs. 18,993,800).
25.2.4 Foreign office advance
Foreign office advance represents foreign exchange equivalent approximate to Rs. 15,136,345 (Previous year -
Rs. 9,859,301).
25.2.5 Tax deducted at source
Tax deducted at source on interest earned Rs. 4,405,144 (Previous year - Rs. 4,161,690).
25.2.6 Auditors’ remuneration
Statutory audit fee 300,000 300,000
Tax audit fee 100,000 100,000
Branch audit fee 290,909 -
Certification charges 708,000 442,000
Other services 50,000 75,000
1,448,909 917,000
25.2.7 Export Incentives
The sale includes sale of DEPB and other export promotional licences amounting to Rs. 222,051,516 (Previous year
- Rs. 129,256,216). Export incentive receivable include a sum of Rs. 4,905,109 (Previous year - Rs. 9,161,803)
being the estimated realisable value of entitlement held as at the close of the year and yet to be sold or utilised.
During the year, export entitlement of Focus Market Scheme (FMS) has been provided on accrual basis. In earlier
years, FMS was being recognised on cash basis due to uncertainty of its availability.
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
Schedules to Financial Statements for the year ended March 31, 2011
2 AIL 3-36.p65 2011/09/07, 03:57 PM25
26
25.2.8 Advances with Government and public bodies
Advances with Government and public bodies include Rs. Nil (Previous year - Rs. 1,675,790) deposited with Sales
Tax Authorities under protest. The appeal has been settled during the year and relevant expense booked.
25.2.9 Earnings per share
The basic and diluted earnings per share of Rs. 41.15 (Previous year - Rs. 36.70) has been calculated by dividing
the net profit for the year ended 31st
March, 2011, attributable to equity shareholders by the weighted average
number of 12,756,663 (Previous year - 12,756,663) equity shares outstanding during the said financial year.
25.2.10 Foreign exchange fluctuation
Foreign exchange fluctuation includes loss of Rs. 7,915,814 (Previous year - gain of Rs. 55,582,895) booked on
cancellation/ maturity of forward/derivative contracts.
25.2.11 Disputed statutory dues
The statement of disputed statutory dues not paid is given below:
Nature of Nature of dues Amount Period Forum where dispute
Statute (Rs.) is pending
Income Tax Income Tax 5,907,977 Assessment Rectification of the Order of ITAT
Act, 1961 Year 2002-2003 is pending with Assessing Officer
Income Tax Income Tax 5,687,664 Assessment Year Rectification of the Order of ITAT
Act, 1961 2003-2004 is pending with Assessing Officer
Income Tax Income Tax 2,006,609 Assessment Year Rectification of the Order of ITAT
Act, 1961 2004-2005 is pending with Assessing Officer
Income Tax Income Tax 448,678 Assessment Year Rectification of the Order of CIT
Act, 1961 2005-2006 (Appeals) is pending with
Assessing Officer
Income Tax Income Tax 141,036,989 Assessment Year Commissioner of Income Tax
Act, 1961 2008-2009 (Appeals), New Delhi
25.2.12 Dues to small-scale industrial undertakings and dues to micro enterprises and small enterprises
On the basis of intimations received from suppliers regarding their status under the Micro, Small and Medium
Enterprises Development Act, 2006, there is no Micro, Small and Medium Enterprise to whom amounts are due for
more than 45 days.
The information was received from few suppliers’ only, the company is making efforts to get the information from
other suppliers also.
25.2.13 Related party disclosure
The disclosures with related parties as described in the Accounting Standard - 18 issued by the Institute of Chartered
Accountants of India, are given below:
a. The related parties where control exists are the subsidiaries and joint ventures. There are no other parties
over which the Company has control.
b. Related parties where control exists or where significant influence exists and with whom transactions have
taken place during the year.
(i) List of related parties where control exists and related parties with whom transactions have
taken place and relationships:
Sr. No. Name of the related party Relationship
1. Angelique International Pte. Ltd., Singapore
2. Société d’Assemblage de Tracteurs SA, Mali Subsidiary
3 Dhruv Minerals and Metals Sarl., Mali (under formation)
4 Salma Dam Joint Venture Joint Venture
5 AILLCJV
6 Mr. Daya Krishna Goyal Key Management Personnel
7 Mr. Ajay Krishna Goyal represented on the Board
8 Mr. Mohinder Pratap Gupta
9 Mrs. Premila Goyal Non-Executive and
10 Mr. Sanjay Krishna Goyal Independent Directors on
11 Mr. Madhava Ravindra the Board
12 Rear Admiral (Retd.) Jagadish Janardan Baxi
13 Major General (Retd.) Ashok Kalyan Verma
14 Mr. Sita Ram Agarwal
15 Dr. Horst Eckert
16 Mr. Harish Kumar Saraf
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
Schedules to Financial Statements for the year ended March 31, 2011 (Continued)
2 AIL 3-36.p65 2011/09/07, 03:57 PM26
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
Schedules to Financial Statements for the year ended March 31, 2011
(ii) Transaction during the year with related parties
PARTICULARS FOR THE FOR THE
YEAR ENDED YEAR ENDED
31ST
MARCH 2011 31ST
MARCH 2010
Capital transactions
(i) Investment in Equity Shares
Société d’Assemblage de Tracteurs SA - 51,903,677
(ii) Share Application Money
Dhruv Minerals & Metals Sarl., Mali 111,625 -
(iii) Provision for decline in the value of long term investment
Société d’Assemblage de Tracteurs SA, Mali 13,630,609 21,052,131
Revenue transactions
(i) Sale of material
Angelique International Pte. Ltd. - 91,241,404
Société d’Assemblage de Tracteurs SA 108,790,035 119,383,188
Salma Dam Joint Venture 41,141,315 54,115,848
AILLCJV 273,824,634 101,283,873
423,755,984 366,024,313
(ii) Dividend received
Angelique International Pte. Ltd., Singapore 3,195,986 -
(iii) Key Management Personnel
Remuneration
Mr. Daya Krishna Goyal 10,729,211 7,776,082
Mr. Ajay Krishna Goyal 8,289,846 6,133,200
Mr. Mohinder Pratap Gupta 6,089,000 3,861,960
25,108,057 17,771,242
(iv) Other Directors
Sitting Fees
Mrs. Premila Goyal 40,000 40,000
Mr. Sanjay Krishna Goyal 40,000 20,000
Mr. Madhava Ravindra 30,000 30,000
Rear Admiral (Retd.) Jagadish Janardan Baxi 30,000 30,000
Major General (Retd.) Ashok Kalyan Verma 20,000 30,000
Mr. Sita Ram Agarwal 40,000 30,000
Dr. Horst Eckert 20,000 10,000
Mr. Harish Kumar Saraf 20,000 -
240,000 190,000
(v) Guarantee given on behalf of joint ventures
Advance Payment Bank Guarantee
AILLCJV 33,960,655 -
Performance Bank Guarantee
Salma Dam Joint Venture 15,181,000 -
AILLCJV 33,960,655 42,223,340
83,102,310 42,223,340
The related party relationship is as identified by the Company and relied upon by the Auditors.
Details of amounts due from or due to and maximum dues from related parties:
(i) Due from related parties:
Loans and advances
Société d’Assemblage de Tracteurs SA, Mali 197,473 176,000
Dhruv Minerals & Metals Sarl., Mali 23,914 -
Salma Dam Joint Venture 8,791,485 8,094,383
9,012,872 8,270,383
2 AIL 3-36.p65 2011/09/07, 03:57 PM27
28
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
Schedules to Financial Statements for the year ended March 31, 2011 (Continued)
Details of amounts due from or due to and maximum dues from related parties: (Contd.)
PARTICULARS FOR THE FOR THE
YEAR ENDED YEAR ENDED
31ST
MARCH 2011 31ST
MARCH 2010
Sundry debtors
Angelique International Pte. Ltd., Singapore - 27,084,000
Société d’Assemblage de Tracteurs SA, Mali 84,529,167 64,761,047
Salma Dam Joint Venture 110,599,140 132,972,782
AILLCJV 107,092,464 249,557,622
302,220,771 474,375,451
(i) Due to related parties:
Advances from Customer
Salma Dam Joint Venture 8,754,383 11,665,462
AILLCJV 5,747,718 32,541,737
14,502,101 44,207,199
Maximum balances of loans and advances 9,209,022 8,270,383
Maximum balances of guarantees outstanding 198,620,395 149,478,740
25.2.14 Inventories
Stock of finished goods and consumables and spares at the end of the year is lying with third parties and at
different project sites, and also includes stock-in-transit of Rs. 21,661,213 (Previous year - Rs. 129,038,293). Work
in progress includes material lying at different project sites of the Company and also includes expenses incurred on
civil works, construction and erection materials, etc.
25.2.15 Sundry debtors
Sundry debtors include Rs. 342,191,297 (Previous year - Rs. 65,414,933) against supply of material payable after
erection of said material and Rs. 543,879,447 (Previous year - Rs. 309,202,903) retention amount payable after
project completion/warranty period.
25.2.16 Financial and derivative instruments
Foreign currency exposure in terms of debtors, creditors, advances received from debtors, advances paid to suppliers
and any other liability that are not hedged by derivative instruments as on 31st
March, 2011 amount to Rs. 551,537,988
(Previous year - Rs. 967,055,483).
25.2.17 Cash and bank balances
Details of balances as on balance sheet dates with non-scheduled banks :
BALANCES WITH NON-SCHEDULED BANKS AS AT AS AT
31ST
MARCH 2011 31ST
MARCH 2010
In current accounts
Bank Atlantique, Abidjan, Cote D’Ivoire 46,946 -
Bank Atlantique, Bamako, Mali 9,355,161 2,368,902
Bank Nacionale de Guinea Equitorial, Malabo, Equitorial Guinea 312,510 1,182,778
BDM, Sikasso, Mali 1,907,715 2,070,837
Banque Commerciale du Rwanda S. A., Rwanda 13,094,824 4,302,257
Banque Internationale Pour L’Afrique au Congo, D R Congo 2,080,452 19,190
Banque Malienne de Solidarite, Mali 957,171 87,927
Banque Pour Le Commerce, Vientiane, Lao PDR 982,457 550,628
Canadian Bank PLC, Phnom Penh, Cambodia 10,112 886,456
Commercial Bank of Ethiopia, Addis Ababa, Ethiopia 16,263,890 4,609,509
Diamond Bank, Benin 3,142,709 -
Eco Bank Ghana Limited, Accra, Ghana - 1,049,260
Eco Bank, Senegal 2,232,470 73,148
Eco Bank, Togo 10,577,261 6,091,524
Fidelity Bank Ltd., Ghana 677,992 -
2 AIL 3-36.p65 2011/09/07, 03:57 PM28
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
Fina Bank, Rwanda 5,783,686 -
Financial Bank, N’Djamena, Tchad 486,861 1,771,061
First International Bank Guinea S. A., Guinea Conakry 435,411 28,008
Kabul Bank, Kabul, Afghanistan 24,682 19,453
Maiwand Bank, Afghanistan 228,162 -
Millenium Bim Lenine, Maputo, Mozambique 253,028 1,152,491
Myanma Foreign Trade Bank, Yangon, Myanmar 88,136 219,900
National Bank of Abu Dhabi, Khartoum, Sudan 174,749 4,195
National Bank of Yemen, Yemen 1,354,056 1,351,762
Raw Bank Sarl, Kinshasa, Congo D. R. 622,750 586,813
SG Bank EN, Malabo, Equitorial Guinea 3,467,553 1,132,056
Sierra Leone Commercial Bank, Sierra Leone 7,973,338 2,469,187
Soni Bank, Niamey, Niger 26 25
82,534,108 32,027,367
Details of maximum balances during the period with non-scheduled banks :
PARTICULARS FOR THE FOR THE
YEAR ENDED YEAR ENDED
31ST
MARCH 2011 31ST
MARCH 2010
In current accounts
Bank Atlantique, Abidjan, Cote D’Ivoire 2,157,927 4,408,860
Bank Atlantique, Bamako, Mali 38,381,125 26,073,967
Bank Nacionale de Guinea Equitorial, Malabo, Equitorial Guinea 12,117,293 6,144,235
BDM, Sikasso, Mali 5,503,449 2,166,942
Banque Commerciale du Rwanda S. A., Rwanda 4,611,430 19,023,412
Banque Internationale Pour L’Afrique au Congo, D R Congo 3,358,490 560,834
Banque Malienne de Solidarite, Mali 6,665,564 100,300
Banque Pour Le Commerce, Vientiane, Lao PDR 3,902,369 15,307,632
Canadian Bank PLC, Phnom Penh, Cambodia 1,620,106 1,955,108
Commercial Bank of Ethiopia, Addis Ababa, Ethiopia 121,618,739 15,236,077
Diamond Bank, Benin 3,029,934 -
Eco Bank Ghana Limited, Accra, Ghana 1,286,981 7,785,841
Eco Bank, Senegal 6,066,302 11,955,657
Eco Bank, Togo 32,313,247 10,511,512
Fidelity Bank Ltd., Ghana 5,950,098 -
Fina Bank, Rwanda 11,518,953 -
Financial Bank, N’Djamena, Tchad 2,350,706 2,403,829
First International Bank Guinea S. A., Guinea Conakry 7,044,852 1,209,422
Kabul Bank, Kabul, Afghanistan 5,627,093 8,066,088
Maiwand Bank, Afghanistan 5,627,093 -
Millenium Bin Lenine, Maputo, Mozambique 8,610,070 6,972,827
Myanma Foreign Trade Bank, Yangon, Myanmar 2,322,577 2,093,247
National Bank of Abu Dhabi, Khartoum, Sudan 1,656,270 2,032,704
National Bank of Yemen, Yemen 2,820,444 1,380,600
Raw Bank Sarl, Kinshasa, Congo D. R. 9,278,057 17,109,131
SG Bank EN, Malabo, Equitorial Guinea 82,804,568 163,189,740
Sierra Leone Commercial Bank, Sierra Leone 31,852,622 3,889,509
Soni Bank, Niamey, Niger - 1,158,713
420,096,359 330,736,187
Schedules to Financial Statements for the year ended March 31, 2011 (Continued)
BALANCES WITH NON-SCHEDULED BANKS AS AT AS AT
31ST
MARCH 2011 31ST
MARCH 2010
In current accounts
2 AIL 3-36.p65 2011/09/07, 03:57 PM29
30
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
25.2.18 Retirement benefit plans
25.2.18.a. Defined contribution plans
Company’s contribution paid/payable to provident fund, employees state insurance and labour welfare fund are
charged to profit and loss account. There is no other obligation other than the contribution payable to the respective
authorities.
25.2.18.b. Defined benefit plans
The Company makes annual contributions to the Employees’ Group Gratuity Assurance Scheme of Kotak Mahindra
Old Mutual Life Insurance Ltd., and the Life Insurance Corporation of India, a funded defined benefit plan for
qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while
in employment or on termination of employment of an amount equivalent to 15 days basic salary, payable for each
completed year of service or part thereof in excess of six months. Vesting occurs on completion of five years of
service.
The present value of the defined benefit obligation and the related current service cost were measured using the
Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.
The obligation for leave encashment is recognised in the same manner as gratuity.
The folowing tables summarize the components of net benefit expense recognised in the profit and loss account
and the funded status and amounts recognised in the balance sheet for the respective plans.
FOR THE YEAR ENDED FOR THE YEAR ENDED
31ST
MARCH 2011 31ST
MARCH 2010
Gratuity Leave Gratuity Leave
Encashment Encashment
(Funded) (Unfunded) (Funded) (Unfunded)
(a) Reconciliation of opening and closing
balances of Defined Benefit Obligation :
Defined benefit obligation at the beginning of the year 19,722,741 12,526,769 17,633,270 11,899,491
Current Service Cost 4,829,503 2,318,004 4,584,096 3,360,482
Interest Cost 1,577,819 1,002,142 1,410,662 951,959
Actuarial (Gain)/Loss 673,517 5,424,342 (3,322,479) (1,673,279)
Benefits Paid (608,192) (14,228,469) (582,808) (2,011,884)
Defined benefit obligation at year end 26,195,388 7,042,788 19,722,741 12,526,769
(b) Reconciliation of opening and closing
balances of fair value of plan assets :
Fair value of plan assets at the beginning of the year 23,803,641 - 17,021,914 -
Expected return on plan assets 1,904,291 - 1,588,555 -
Actuarial Gain/(Loss) 32,672 - (2,280) -
Employer Contribution 3,338,782 - 5,778,260 -
Benefits paid (608,192) - (582,808) -
Fair value of plan assets at year end 28,471,194 - 23,803,641 -
(c) Reconciliation of fair value of assets
and obligations :
Fair value of plan assets as at 31st
March 28,471,194 - 23,803,641 -
Present value of obligation as at 31st
March 26,195,388 7,042,788 19,722,741 12,526,769
Net assets/(liability) recognised in Balance Sheet 2,275,806 (7,042,788) 4,080,900 (12,526,769)
(d) Expenses recognised during the year :
Current Service Cost 4,829,503 2,318,004 4,584,096 3,360,482
Interest Cost 1,577,819 1,002,142 1,410,662 951,959
Expected return on plan assets (1,904,291) - (1,588,555) -
Actuarial (Gain)/Loss 640,846 5,424,342 (3,320,199) (1,673,279)
Expenses recognised in P & L A/c. 5,143,877 8,744,488 1,086,004 2,639,162
(e) Investment details :
Insurer managed funds (including interest) 28,471,194 - 23,803,641 -
Others - - - -
Schedules to Financial Statements for the year ended March 31, 2011 (Continued)
2 AIL 3-36.p65 2011/09/07, 03:57 PM30
(f) Actuarial assumptions :
Mortality Table (LIC) 1994-96 1994-96 1994-96 1994-96
(Ultimate) (Modified) (Ultimate) (Modified)
Discount rate (per annum) 8.00% 8.00% 8.00% 8.00%
Expected rate of return on plan assets (per annum) 8.00% 0.00% 9.25% 0.00%
Rate of escalation in salary (per annum) 6.00% 6.00% 5.00% 6.00%
25.2.19 Subsidiary
During the year, subsidiary of the company, viz., Société d’Assemblage de Tracteurs SA, Mali, has incurred losses.
The company has recognised proportionate loss amounting to Rs. 13,630,609 (Previous year - Rs. 14,458,731) as
determined in the audited accounts for the period ended 31st
December, 2010, by way of diminution in the value of
company’s investment in the said subsidiary.
25.2.20 Employee benefit plans
During the year, 2,300 (Previous year - 15,100) Share Appreciation Rights granted to employees in the year
2003-2004, were redeemed by the employees.
25.2.21 Segment information
The accounting principle used in preparation of the financial statements are consistently applied in all segments
and are set out in the note on significant accounting policies.
The Company’s business activity is centered around international and domestic turnkey projects and export of
goods and equipments. The turnover in respect of international and domestic projects and geographical segment
is as under :
in Indian Rupees (millions)
BUSINESS SEGMENT GEOGRAPHICAL FOR THE FOR THE
SEGMENT YEAR ENDED YEAR ENDED
31ST
MARCH 2011 31ST
MARCH 2010
Export - Project Engineering, African countries 5,328.69 3,374.99
- Procurement and Construction Asian countries 1,211.21 1,489.42
Export - Equipments and Other African countries 342.74 1,008.62
Products Asian countries 652.57 268.64
American countries 351.38 55.30
Domestic - Projects India 322.48 401.91
Others India 301.51 725.43
Total 8,510.58 7,324.31
25.2.22 General
In the opinion of the Board of Directors, all known Liabilities have been provided for and to the best of their
knowledge and belief, the value on realisation of Current Assets, Loans and Advances in the ordinary course of
business will not be less than the amount at which they are stated in the Balance Sheet.
Balances of debtors, creditors and other parties are subject to confirmation.
Previous years’ figures have been regrouped/rearranged wherever considered necessary.
The figures in brackets indicate deductions.
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
Schedules to Financial Statements for the year ended March 31, 2011 (Continued)
FOR THE YEAR ENDED FOR THE YEAR ENDED
31ST
MARCH 2011 31ST
MARCH 2010
Gratuity Leave Gratuity Leave
Encashment Encashment
(Funded) (Unfunded) (Funded) (Unfunded)
2 AIL 3-36.p65 2011/09/07, 03:57 PM31
32
25.2.23 Quantitative details
Additional information pursuant to the provisions of paragraphs 3 and 4 of Part II of Schedule VI to the Companies
Act, 1956.
PARTICULARS UNIT FOR THE YEAR ENDED FOR THE YEAR ENDED
31ST
MARCH 2011 31ST
MARCH 2010
Quantity Amount Quantity Amount
Opening Stock, Purchases,
Sales and Closing Stock
1 Opening Stock - Finished Goods
Projects and Engineering Goods N. A. NIL 234,019,915 NIL 121,246,847
Equipments N. A. NIL 5,485,000 NIL 10,967,810
Other Products N. A. NIL 820,000 NIL -
2 Purchases
Projects and Engineering Goods N. A. NIL 2,395,306,202 NIL 2,083,718,770
Equipments N. A. NIL 396,192,826 NIL 599,464,161
Soya Bean Meal M. T. 38,020.925 705,911,948 11,250.000 211,230,000
Other Products N. A. NIL 451,258,214 NIL 725,641,719
3 Sales
Projects and Engineering Goods N. A. NIL 6,862,370,361 NIL 5,266,324,936
Equipments N. A. NIL 406,201,736 NIL 1,113,132,213
Soya Bean Meal M. T. 38,020.925 686,793,597 11,250.000 205,439,401
Other Products N. A. NIL 555,211,667 NIL 739,419,004
4 Closing Stock - Finished Goods
Projects and Engineering Goods N. A. NIL 137,453,655 NIL 234,019,915
Equipments N. A. NIL 108,350,992 NIL 5,485,000
Other Products N. A. NIL - NIL 820,000
Note : Quantities are given wherever applicable.
25.2.24 Imports (valued on the cost, insurance and freight basis)
PARTICULARS FOR THE FOR THE
YEAR ENDED YEAR ENDED
31ST
MARCH 2011 31ST
MARCH 2010
Trading goods 377,909,561 218,058,072
Consumables and others 61,989,988 54,326,158
Capital goods 34,302,346 46,799,740
474,201,895 319,183,970
Schedules to Financial Statements for the year ended March 31, 2011 (Continued)
2 AIL 3-36.p65 2011/09/07, 03:57 PM32
As per our report of even date
for Anil Maheshwari & Co.
Chartered Accountants
Sd/- Sd/- Sd/- Sd/-
Anil Maheshwari Daya Krishna Goyal Ajay Krishna Goyal Madhava Ravindra
Partner Chairman President and Managing Director Director
Membership No. 071188
Sd/-
Place : New Delhi Pankaj Goyal
Date : 09 July, 2011 CFO and Company Secretary
25.2.25 Activity in foreign currency
FOR THE FOR THE
YEAR ENDED YEAR ENDED
31ST
MARCH 2011 31ST
MARCH 2010
Earnings in foreign currency
F.O.B. value of direct exports 7,560,020,502 6,067,646,979
Other Income 27,389,008 -
Expenditure in foreign currency
Travel expenses (including visa charges) 47,680,303 44,774,555
Installation and service charges - 149,938,819
Interest and bank charges 27,581,582 29,686,292
Commission on export sale 458,329,409 468,973,879
Project consultancy expenses 383,922,428 51,198,958
Civil construction expenses 1,114,621,580 1,021,177,012
Other expenses 312,657,696 414,326,100
Schedules to Financial Statements for the year ended March 31, 2011 (Continued)
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1 Registration details
Registration No.: U18109DL1996PLC075132
State Code: 55
Balance Sheet Date: 31.03.2011
2 Capital raised during the year (Amount in Rs. thousands)
Public Issue: NIL
Rights Issue: NIL
Bonus Issue: NIL
Private Placement: NIL
3 Position of Mobilisation and Deployment of Funds (Amount in Rs. thousands)
Total Liabilities: 7846911
Total Assets: 7846911
Sources of Funds:
Paid-up Capital: 127567
Reserves and Surplus: 1877647
Secured Loans: 752959
Unsecured Loans: 1776
Other Liabilities: 27719
Application of Funds:
Net Fixed Assets: 856219
Investments: 163437
Net Current Assets: 1768012
Miscellaneous Expenditure: NIL
4 Performance of the Company (Amount in Rs. thousands)
Turnover: 8510577
Total Expenditure: 7692690
Profit Before Tax: 817887
Profit After Tax: 524892
Earning Per Share in Rs. 41.15
Dividend Rate % 100
5 Generic Names of Principal Products/Services of the Company
Item Code No.: N.A.
(ITC Code)
Product Description: N.A.
Sd/- Sd/- Sd/-
Daya Krishna Goyal Ajay Krishna Goyal Madhava Ravindra
Chairman President and Managing Director Director
Sd/-
Place : New Delhi Pankaj Goyal
Date : 09 July, 2011 CFO and Company Secretary
BALANCE SHEET ABSTRACT AND COMPANY’S
GENERAL BUSINESS PROFILE
ALL AMOUNTS IN INDIAN RUPEES EXCEPT SHARE DATA AND WHERE OTHERWISE STATED
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Notes
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Notes
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