| 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, 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 their intended use) are capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue. | ||
| (f) | Foreign Currency Translation as applicable under accounting standard 11 on 'The effects of Changes in Foreign Exchange Rates'. | |
| 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 (other than relating to reporting of Long term foreign currency monetory items) arising out of fluctuations in the exchange rates are recognised in Profit and Loss Account in the period in which they arise. Exchange differences arising on reporting of Long term foreign currency monetory items (i) relating to acquisition of depreciable capital assets is adjusted to the carrying amount of such assets (to be depreciated over the balance life of the related asset) and (ii) in other cases accumulate in a ‘Foreign Currency Monetory Item Translation Difference Account’ (to be amortised over the balance period of the related long term monetory asset/liability but not beyond 31st March, 2011). 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) | Derivative Contracts | |
| In respect of derivative contracts (other than forward exchange contracts covered under Accounting Standard 11 on ‘The Effects of Changes in Foreign Exchange Rates’), gains/losses on settlement and mark to market loss (net) relating to outstanding contracts as at the Balance Sheet date is recognised in the Profit and Loss Account. | ||
| Refer Note 1(f) above for forward exchange contracts covered under Accounting Standard 11 on ‘The Effects of Changes in Foreign Exchange Rates’. | ||
| (h) | Sales | |
| Sales represent value of goods sold and are net of trade discounts/ allowances, sales return and excluding sales tax/ value added tax. | ||
| (i) | Investment Income | |
| Income from investments is accounted for on accrual basis, inclusive of related tax deducted at source. | ||
