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(vii) Provident fund and family pension
The eligible employees of the Company and some of its subsidiaries are entitled to receive benefits in respect of provident fund, a defined contribution plan,
in which both employees and the company / subsidiaries make monthly / annual contributions at a specified percentage of the covered employees’ salary
(currently 12% of employees’ salary). The contributions, as specified under the law, are made to the provident fund and pension fund set up as irrevocable
trust by the Company and its subsidiaries or to respective Regional Provident Fund Commissioner and the Central Provident Fund under the State Pension
scheme. The Company and some of its subsidiaries are generally liable for monthly / annual contributions and any shortfall in the fund assets based on the
government specified minimum rates of return or pension and recognises such contributions and shortfall, if any, as an expense in the year incurred.
(viii) Compensated absences
The Company and some of its subsidiaries provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled to
accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilized leave at each balance
sheet date on basis of an independent actuarial valuation.
(l)
Investments
(i)
Long term investments are stated at cost less other than temporary diminution in value, if any.
(ii)
Investment in associate companies are accounted as per the ‘Equity method’, and accordingly, the share of post acquisition reserves of each of the associate
companies has been added to / deducted from the cost of investments.
(iii)
Current investments are stated at lower of cost and fair value. Fair value of investments in mutual funds are determined on portfolio basis.
(m) Income taxes
Tax expense comprises current and deferred taxes. Current taxes are determined based on respective taxable income of each taxable entity and tax rules applicable
for respective tax jurisdictions. Current tax is net of credit for entitlement for Minimum Alternative Tax.
Deferred tax is recognised, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable
of reversal in one or more subsequent periods. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised if there is virtual
certainty that there will be sufficient future taxable income available to realise such losses.Such deferred tax assets and liabilities are computed separately for each
taxable entity and for each taxable jurisdiction.
Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when asset is realised or the liability is settled, based
on tax rates and tax laws that have been enacted or substantially enacted by the balance sheet date.
The tax expense is not comparable with the profit before tax, since it is consolidated on a line-by-line addition for each subsidiary company and no tax effect is
recorded in respect of consolidation adjustments. This accounting treatment is as per accounting standard AS-21.
(n) Redemption premium on Foreign Currency Convertible Notes (FCCN) / Non Convertible Debentures (NCD)
Premium payable on redemption of FCCN / NCD as per the terms of issue, is provided fully in the year of issue by adjusting against the Securities Premium Account
(SPA) (net of tax). Any change in the premium payable, consequent to conversion or exchange fluctuations is adjusted to the SPA.
(o) Borrowing costs
Fees towards structuring / arrangements and underwriting and other incidental costs incurred in connection with borrowings are amortised over the period
of the loan.
(p) Liabilities and contingent liabilities
The Company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses suchmatters in its financial statements,
if material. For potential losses that are considered possible, but not probable, the Company provides disclosure in the financial statements but does not record a
liability in its accounts unless the loss becomes probable.
NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
Independent Auditors’Report
Balance Sheet
(176-206)
Statement of Profit and Loss
Cash Flow Statement
Notes to Accounts
