Paper type: Report Pages: 6 (1496 words)
Collect any TWO listed company’s director’s report of a selected industry and critically examine the applicable Accounting standards, Mandatory disclosures, components of financial statements, Accounting policies and practices followed by the company in the context of Ind As TECH MAHINDRA LTDTech Mahindra Limited (alluded to as TechM or the Company) is a main supplier of counseling drove coordinated portfolio administrations to clients which are Telecom Equipment Manufacturers, Telecom Service Providers and IT Infrastructure Service Providers, Business Process Outsourcing Service Providers and Enterprise Solutions Services (BFSI, Retail and Logistics, Manufacturing, E&U, and Healthcare, Life Sciences, and so on.
) of Information Technology (IT) and IT-empowered administrations conveyed through a system of different areas around the world. It is a backup of Mahindra gathering. The fiscal reports for the year finished March 31, 2018 were endorsed by the Board of Directors and approved for issue on May 25, 2018DIRECTORS REPORT OF TECH MAHINDRAFor the year ended March 31 2018 2017INCOME 253,919 240,583Profit before Interest, Depreciation and tax 56,335 45,647INTEREST (708) (638)DEPRICIATION (6562) (6222)PROFIT BEFORE TAX 49,065 38,787PROVISION FOR TAXATION (9072) (8314)PROFIT AFTER TAX 39,993 30,473OTHER COMPREHENSIVE INCOME 128 (1)Balance brought forward from previous year 120,789 106,118Profit available for appropriation 160,910 136,590Final Dividend Including tax (10,361)^1 (13,787)^2Transfer from Share Option Outstanding Account 51 28Transfer from General Reserve – -Transferred on merger of US branch with US subsidiary – (2042)Transferred to Special Economic Zone re-investment reserve (42) -Balance carried forward 150558 120789FINANCIAL RESULTS (STAND ALONE) (IN MILLION)1 Dividend for the financial year ended March 31, 20172 Dividend for the financial year ended March 31, 2016ACCOUNTING STANDARDS FOLLOWED BY TECH MAHINDRA:Accounting for Research and development: Research costs are recognized as an expense in the statement of profit and loss in the period they are incurred.
Development costs are recognized in the statement of profit and loss unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Company has an ability to complete the development project and use the asset fully.ACCOUNTING POLICIES FOLLWED BY TECH MAHINDRA:Statement of compliance:1 These financial statements have been prepared in accordance with Indian Accounting Standards as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of the Companies Act, 2013 (”the Act”) read with Rule 3 the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Indian Accounting Standards) Amendment Rules, 2016, guidelines issued by the Securities and Exchange Board of India (”SEBI”) and other relevant provisions of the Companies Act, 2013 2 Basis for preparation of financial statements:These financial statements have been prepared on the historical cost basis and on an accrual basis, except for certain financial instruments which are measured at fair values at the end of each reporting period. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services . In evaluating the reasonable estimation of an advantage or risk, the Company considers the attributes of the benefit or obligation that market members would consider when valuing the advantage or risk at the estimation dates. 3 Property, plant and equipmentProperty, plant and equipment represents an important aspect of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company’s assets are determined by management at the time the asset is acquired and reviewed at the end of each reporting period. 4 Impairment testingInvestments in subsidiaries and intangible assets are tested for impairment at least annually and when events occur or changes in circumstances indicate that the recoverable amount of the asset or cash generating units to which these pertain is less than its carrying value. The recoverable amount of cash generating units is higher of value-in-use and fair value less cost to dispose. The calculation of value in use of a cash generating unit involves use of significant estimates and assumptions which includes turnover and earnings, growth rates and net margins used to calculate projected future cash flows, risk-adjusted discount rate, future economic and market conditions. COMPONENTS OF FINANCIAL STATEMENTSIncome Profit before Interest, Depreciation and tax Interest Depreciation Profit Before Tax Provision for taxation Profit after tax Other Comprehensive Income Final Dividend Including tax Transfer from Share Option Outstanding Account Transfer from General Reserve Transferred on merger of US branch with US subsidiary Transferred to Special Economic Zone re-investment reserveMANDATORY DISCLOSURES BY TECH MAHINDRA1. There have been no materially significant related party transactions that may have potential conflict with the interests of the Company at large.2. During the most recent three years, there were no examples of resistance by the Company and no punishment or strictures were forced on the Company by the Stock Exchanges or SEBI or any statutory expert, on any issue identified with the capital markets.3. The Company has set out a Whistle Blower Policy, which incorporates Vigil Mechanism with definite procedure for raising worries by any of the workers, clients, sellers and financial specialists, tending to the worries and answering to the Board. The Company asserts that no work force had been denied access to the review board of trustees under Whistle Blower Policy 4 The Company has followed the compulsory necessities of Corporate Governance as determined in Regulations 17 to 27 and 46(2) of Listing Regulations. 5 The Company has planned an arrangement on materiality of Related Party transactions and managing Related Party Transactions which has been transferred on the Company’s site www.techmahindra.com. LARSEN & TOUBROLarsen and Toubro Infotech Limited (LTI) is a worldwide IT arrangements and administrations organization situated in Mumbai, India. LTI was positioned number 6 in India IT organizations in 2013″2014. The organization has 39 workplaces in 27 nations. It utilizes guidelines of the Software Engineering Institute’s (SEI) Capability Maturity Model Integration (CMMI) and is a Maturity Level 5 evaluated association. LARSEN TOUBRO DIRECTOR’S REPORTFINANCIAL RESULTS:PARTICULARS 2017-18 2016-17 RS. CRORE RS. CROREPROFIT BEFORE DEPRECIATION EXCEPTIONAL ITEMS & TAX 7881.31 7079.06LESS: DEPRECIATION AMORTIZATION IMPAIRMENT AND OBSOLESCENCE 1049.46 1215.19PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX 6831.85 5863.87ADD: EXCEPTIONAL ITEMS 430.53 893.97PROFIT BEFORE TAX 7262.38 6757.84LESS: PROVISION FOR TAX 1875.08 1304.10PROFIT FOR THE PERIOD CARRIED TO BALANCE SHEET 5387.30 5453.74ADD: BALANCE BROUGHT FORWARD FROM PREVIOUS YEAR 1 1225.53 7710.27LESS: DIVIDEND PAID DURING THE PREVIOUS YEAR (INCLUDING DIVIDEND DISTRIBUTION TAX) 2278.69 1842.71ADD: GAIN/(LOSS) ON REMEASUREMENT OF THE NET DEFINED BENEFIT PLANS 2.50 (8.02)ADD: TRANSFER UNDER SCHEME OF ARRANGEMENT 15.55 _BALANCE AVAILABLE FOR DISPOSAL (WHICH THE DIRECTORS APPROPRIATE AS FOLLOWS) 14352.19 11313.28LESS: DEBENTURE REDEMPTION RESERVE 102.18 87.75BALANCE TO BE CARRIED FORWARD 14250.01 1 1225.53The Directors recommend payment of final dividend of Rs.16 per equity share of Rs.2/-each on 1401369456 sharesACCOUNTING POLICIES FOLLOWED BY L&T INFOTECHa. Presentation of financial statementsThe statement of financial position (including statement of changes in equity) and the statement of profit and loss are prepared and presented in the format prescribed in Schedule III to the Companies Act, 2013. The cash flow statement has been prepared and presented as per the requirements of Ind AS 7 Cash Flow Statements. The disclosure requirements with respect to items in the balance sheet and statement of profit and loss, as prescribed in Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standardsb. Operating cycle for current and non-current classification The company identifies asset/liabilities as current if the same are receivable/payable within twelve months else the same are considered as non-current.c. Revenue recognitionRevenue is recognised only when evidence of an arrangement is obtained and the other criteria to support revenue recognition are met, including the price is fixed or determinable, services have been rendered and collectability of the resulting receivables is reasonably assured. Revenue is measured at the fair value of the consideration received or receivable and is reduced for estimated rebates and other similar allowances.ACCOUNTING STANDARDS FOLLOWED BY L&T INFOTECHThis statement ,which is the responsibility of the holding company’s management and approved by the board of directors ,has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 INTERIM FINANCIAL REPORTING(IND AS 34′),prescribed under section 133 of the Companies Act,2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India.COMPONENTS OF FINANCIAL STATEMENTRevenue from operationsOther IncomeOperating ExpenditureFinance CostDepreciation and amortizationProfit Before Tax (PBT)Provision for TaxProfit for the year (PAT) Non-Controlling Interest Other Comprehensive Income Dividend (excluding tax) Tax on DividendsMANDATORY DISCLOSURES1 The Company has disclosed the impact of pending litigations on the financial position in its standalone financial statements 2 The Company did not have any long-term contracts for which there were any material foreseeable losses. Provision has been made in the standalone financial statements as required under the applicable law or accounting standards, for material foreseeable losses, if any, on derivative contracts.3 There were no amounts required to be transferred, to the Investor Education and Protection Fund by the Company.
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Collect any TWO listed company’s director’s report of a selected industry and. (2019, Aug 20). Retrieved from https://studymoose.com/collect-any-two-listed-companys-directors-report-of-a-selected-industry-and-essay