| 1 | Significant Accounting Policies |
| (j) | 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 statutory 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 15A below). | |
| Liability towards gratuity, covering eligible employees, is provided and funded on the basis of year-end actuarial valuation. |
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| 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. | |
| (k) | Taxes on Income |
| Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is provided / recognised on timing differences between taxable income and accounting income using the liability method subject to consideration of prudence. Deferred tax assets on unabsorbed depreciation and carry forward of losses under tax laws are not recognised unless there is virtual certainty that there will be sufficient future taxable income available to realise such assets. |
