Seeking to consolidate its accounting system, leading infrastructure company Lanco Infratech on Monday announced that it had registered a 3 per cent fall in its net profit to Rs.446.10 crore for the fiscal ended March 31, 2011. The drop is attributed to eliminations following the Indian accounting standards. Total revenue after elimination stands at Rs.8,004.40 crore against Rs.8,233.60 crore in 2009-10, a drop of 3 per cent.
As per Indian Accounting Standards, companies are required to eliminate revenue, which it earns by providing services to its subsidiary companies. Therefore, Lanco eliminated higher revenue as EPC and construction is providing services to subsidiary company developing power projects. The company eliminated Rs.3,260.78 crore from the net operating income and Rs.498.84 crore from the net profit.
“It may be noted that the above eliminations do not reduce the cash earnings of the company on the standalone or consolidated basis,” according to a company statement issued here. The company registered a growth of 18 per cent in operating revenues at Rs.11,265.20 crore and 55 per cent growth in profit after tax before elimination at Rs.862.80 crore.
Revenue from the power division was up 37 per cent at Rs.4,945.20 crore and that from the EPC and construction division 2 per cent at Rs.5,961.70 crore.
The company is planning to commission the second unit of 600 MW capacity at its Anpara power project in Uttar Pradesh by September, while another 600 MW capacity at Udupi is expected to be commissioned by December.
