| 1. | Significant Accounting Policies |
| c. | Investments |
| Long Term Investments are stated at cost where applicable; provision for diminution is made or carrying amount is written down to recognise a decline other than temporary in the carrying amount of long term investments as determined by the Board of Directors on periodical review. Current investments are carried at lower of cost and fair value. Gains / losses on disposal of the investments are recognised as income / expenditure. | |
| d. | Inventories |
| Inventories are stated at lower of cost and net realisable value. Cost is determined on weighted average / FIFO basis, as considered appropriate by the Company and includes expenditure incurred in the normal course of business in bringing inventories to its location and condition including appropriate overheads, where applicable. Provision is made for obsolete / slow moving / defective stocks, wherever necessary. | |
| e. | Borrowing Cost |
| Borrowing costs attributable to qualifying assets (assets which require substantial period of time to get ready for its intended use) are capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue. | |
| f. | Foreign Currency Translation |
| Transactions in foreign currency are accounted for at the exchange rates prevailing on the date of transactions. Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end exchange rates. Gains / losses arising out of fluctuations in the exchange rates are recognised in Profit and Loss Account in the period in which they arise. Differences between the forward exchange rates and the exchange rates at the date of transactions are accounted for as income / expense over the life of the contracts. |
|
| g. | Sales |
| Sales represent value of goods sold and are net of trade discounts / allowances, sales return and excluding sales tax / value added tax. | |
| h. | Investment Income |
| - | Income from investments is accounted for on accrual basis, inclusive of related tax deducted at source. |
| i. | Employee Benefits |
| Short-term Employee Benefits (i.e. benefits payable within one year) are recognised in the period in which employee services are rendered. Contributions towards superannuation at rates specified in related approved scheme covering eligible employees are recognised as expense and funded. Contributions towards provident funds are recognised as expense. Provident fund contributions in respect of certain employees are made to Trusts administered by the Company; the interest rate payable to the members of the Trusts is not lower than the rate of interest declared annually by the Central Government under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, is to be made good by the Company. The remaining provident fund contributions are made to employer established provident funds (for other than covered employees) / government administered provident fund towards which the Company has no further obligations beyond its monthly contributions. (Also refer Note 15B below). Liability towards gratuity, covering eligible employees, is provided and funded on the basis of year-end actuarial valuation. Accrued liability towards leave encashment benefits, covering eligible employees, evaluated on the basis of year-end actuarial valuation is recognised as a charge. Contribution to Central Government administered Employees' State insurance Scheme for eligible employees is recognised as charge. Actuarial gains / losses arising in Defined Benefit Plans are recognised immediately in the Profit and Loss Account as income / expense for the year in which they occur. |
