ABG Shipyard

1.  Contracts remaining to be executed on capital account and not
 provided for are estimated at Rs. 231.45 crores (Previous year Rs.
 87.92 crores).
 
 2.  (a) Contingent liability not provided for:
 
 Particulars                              31st March 2009  31st March 2008 
 
 In respect of Performance/ Delivery Guarantees 
 given by banks to the buyers                     97.37      115.46 
 Other bank guarantees to Government Authorities   6.30        0.50
 
 Claims against the company not acknowledged 
 as debts                                          0.36        0.34
 
 (b) Contingencies provided for in accordance with 
 Accounting Standard 29 issued by the Institute of 
 Chartered Accountants of India Rs. 0.30
 crores (Previous year 0.60 crores)
 
 Carrying amount as on 01.04.2008.                             0.60
 
 Provision during the year.                                    0.30
 
 Amounts incurred and charged against the provision.            -
 
 Unused amount reversed during the year.                        -
  
 Closing Balance                                               0.90
 
 The contingencies provided are in respect of estimated warranties on
 sold hulls.
 
 3.  In terms of the approval of the shareholders of the Company and as
 per the applicable statutory provisions including Securities and
 Exchange Board of India (Disclosure and Investor Protection) Guidelines
 2000, the Company, on 15th January, 2008 has allotted 40,00,000
 warrants on preferential basis to the Holding Company entitling it to
 apply for equivalent number of fully paid up equity shares of Rs.
 10/-each of the Company, at a price of Rs. 796.66 per equity share and
 received 10% on allotment. The warrant holder has a right to apply for
 conversion into equity shares within 18 months from the date of
 allotment of the warrants on payment of the balance consideration.
 Amounts received against the warrants are shown under Share Warrants in
 the Balance Sheet, pending exercise thereof.
 
 4.  On the basis of the report of Chartered Engineers and Government
 approved Valuers, the Company had revalued the Freehold Land, Factory
 Building, Other Building and Dry Docks on 30th June, 1994 and again on
 30th June 2002 and consequently an amount of Rs. 10 90 crores and Rs.
 59.99 crores respectively being the differences between the amount of
 fair market value of the same and depreciated value as per books as on
 those dates, have been added to the value of Fixed Assets and
 corresponding credit shown as Revaluation Reserve.
 
 Consequent to the revaluation there is an additional depreciation of
 Rs.1.62 crores (Previous year Rs. 1.79 crores) which has been withdrawn
 from Revaluation Reserves and credited to Profit and Loss account.
 
 5.  The company has chosen to avail the option under Accounting
 Standard-11 notification as per Companies (Accounting Standard)
 Amendment Rules 2009 GSR 225 (E) dated 31.03.2009 issued by Ministry of
 Corporate Affairs. The company has exercised the option with respect to
 long term monetary liabilities viz Foreign currency term loan availed
 by it. The company has no other long term monetary Assets /
 Liabilities.
 
 Consequential to the exercise of option the net effect of the
 adjustment relating to forex losses/gains previously recognised in
 financial years ending 31st March 2007 and 31st March 2008 is Rs.5.47
 crores. The same is debited to general reserve and credited to capital
 asset viz Fixed Assets and CWIP Depreciaton on corresponding
 depreciable assets is worked out accordingly, prorata from date of
 capitalization.
 
 Due to the exercise of the above option resulting in change of
 Accounting Policy, the impact on Profit & Loss Account for year is
 Rs.22.38 crores which has been capitalized with CWIP.
 
 6.  The company has not received any information from suppliers
 regarding their status under Micro, Small and Medium Enterprises
 Development Act 2006, and hence disclosures relating to amount unpaid
 at the end of the year and interest payable if any, have not been
 given.
 
 7.  (i) Interest received from banks Rs. 6.22 crores - TDS Rs.1.24
 crores. (Previous year Interest Rs. 7.48 crores -TDS Rs. 1.58 crores).
 
 (ii) Exchange fluctuation- loss (net) included in the Profit and Loss
 account is Rs 36.19 crores out of which Rs.32.72 crore is translation
 loss related to material being included in consumption. (Previous year
 gain Rs. 12.23 crores).
 
 Net forward cover loss included in Profit and Loss account Rs. 3.04
 crores. (Previous year gain Rs. 9.47 crores).
 
 8.  Disclosure in respect of Operating Leases (Assets taken on lease):
 
 (a) The company has taken commercial / residential premises under
 cancelable operating leases. The lease agreements are usually renewable
 by mutual consent on mutually agreeable terms.
 
 (b) The expenses in respect of operating leases are accounted in
 General, Administration & Selling Expenses under Schedule-17.
 
 9.  The Company has firm commitments in foreign exchange as regards
 both its payables and receivables. The company has applied the
 principle of Hedge Accounting contained in Accounting Standard 30
 issued by the Institute of Chartered Accountants of India for its net
 firm commitment in receivable and payables in foreign exchange. In view
 of the same, Mark to Market difference as on 31st March 2009 of Rs. 81
 Crores on payables does not have any material impact on the financial
 statement, as the receivables are higher than the payables.
 
 10.  Related Parties Disclosure as per Accounting Standard (AS) 18: A.
 LIST OF RELATED PARTIES:
 
 Holding Company
 
 ABG International Private Limited
 
 Subsidiary /Controlling Stake
 
 Eleventh Land Developers Private Limited Vipul Shipyard (Partnership
 Firm )
 
 Fellow Subsidiary Companies
 
 ABG Cement Limited
 
 PFS Shipping (India) Limited
 
 ABG Foods Private Limited
 
 ABG Acqafarm Private Limited
 
 ABG Engineering & Construction Limited
 
 Banal Investment & Trading Private Limited
 
 B.F Engineering Private Limited
 
 Waste Re- Energy Private Limited
 
 ABG Energy Private Limited
 
 Companies over which Directors / relatives are able to exercise
 Significant Influence
 
 ABG Infralogistics Limited
 
 ABG Power Private Limited
 
 ABG Cranes Private Limited
 
 Pacific First Shipping Pte. Ltd., Singapore. (Along with its SPVs)
 
 Agbros Leasing & Finance Private Limited
 
 Jarrow Finance & Trading Private Limited
 
 ABG Motors Limited
 
 Key Management Personnal
 
 Shri. RishiAgarwal
 
 Shri. Ram Swaroop Nakra
 
 Major Arun Phatak
 
 11.  The figures for the previous year have been rearranged/regrouped
 wherever considered necessary.