Accounting Standards Accounting Standards
Annual Reports
Annual Reports
AS 12: Accounting for AS 12: Accounting for
Government Grants
Government Grants
GRASIM INDUSTRIES LIMITED GRASIM INDUSTRIES LIMITED
Capital Gains relating to specific assets are reduced from Capital Gains relating to specific assets are reduced from the gross value of the Fixed Assets and capital grants for the gross value of the Fixed Assets and capital grants for Project Capital Subsidy are credited to Capital reserve.
Project Capital Subsidy are credited to Capital reserve.
Other revenue grants are credited to Profit and Loss Other revenue grants are credited to Profit and Loss Account or deducted from the related expenses.
Account or deducted from the related expenses.
ASHOK LEYLAND ASHOK LEYLAND
Grants in the form of capital/Investment subsidy are Grants in the form of capital/Investment subsidy are treated as Capital Reserve. Incentives in the nature of treated as Capital Reserve. Incentives in the nature of subsidies given by the Government are reckoned in subsidies given by the Government are reckoned in revenue in the year of eligibility.
revenue in the year of eligibility.
MARUTI UDYOG LIMITED MARUTI UDYOG LIMITED
Government Grants are recognized in the profit and loss Government Grants are recognized in the profit and loss account in accordance with the related scheme and in the account in accordance with the related scheme and in the period in which these are accrued.
period in which these are accrued.
CMC LIMITED CMC LIMITED
i.i.
Grants received for capital expenditure incurred are included Grants received for capital expenditure incurred are included in ‘Capital Reserve’. Fixed Assets received free of cost are in ‘Capital Reserve’. Fixed Assets received free of cost are
considered as a grant and are capitalized at notional value with considered as a grant and are capitalized at notional value with a corresponding credit to the Capital Reserve account.
a corresponding credit to the Capital Reserve account.
An amount equivalent to the depreciation charge on such An amount equivalent to the depreciation charge on such
assets is appropriated from capital reserve and recognized as assets is appropriated from capital reserve and recognized as revenue in the Profit and Loss Account.
revenue in the Profit and Loss Account.
ii.ii.
Grants received for execution of projects is recognized as Grants received for execution of projects is recognized as revenue to the extent utilised.
revenue to the extent utilised.
IBP CO. LIMITED IBP CO. LIMITED
Revenue Grants are reckoned as per the scheme notified Revenue Grants are reckoned as per the scheme notified by the Government of India from time to time.
by the Government of India from time to time.
MAHINDRA & MAHINDRA LIMITED MAHINDRA & MAHINDRA LIMITED
The Company is entitled to various incentives from a The Company is entitled to various incentives from a State Government, such as grants by way of refund of State Government, such as grants by way of refund of octroi duty paid by the Company for its manufacturing octroi duty paid by the Company for its manufacturing unit located in a developing region. The said grants to unit located in a developing region. The said grants to which the Company has been entitled for a number of which the Company has been entitled for a number of
years remain to be received, creating uncertainty. Hence, years remain to be received, creating uncertainty. Hence, such grants are accounted for as and when the
such grants are accounted for as and when the disbursements are received.
disbursements are received.
AS 13: Accounting for AS 13: Accounting for
Investments
Investments
GRASIM INDUSTRIES LIMITED GRASIM INDUSTRIES LIMITED
Current investments are stated at lower of cost and fair value.
Current investments are stated at lower of cost and fair value.
Long term investments are stated at cost after deducting Long term investments are stated at cost after deducting
provisions made for permanent diminution in the value.
provisions made for permanent diminution in the value.
TAMILNADU PETROPRODUCTS LIMITED TAMILNADU PETROPRODUCTS LIMITED
Investments are valued at their acquisition cost. Provision for Investments are valued at their acquisition cost. Provision for permanent diminution in value has been made, wherever permanent diminution in value has been made, wherever
necessary.
necessary.
ASHOK LEYLAND ASHOK LEYLAND
Current investments are valued at cost or market value Current investments are valued at cost or market value
whichever is lower. Long term investments are stated at cost whichever is lower. Long term investments are stated at cost less provision for diminution other than temporary, if any, in less provision for diminution other than temporary, if any, in
value of such investments.
value of such investments.
COROMANDEL FERTILISERS LIMITED COROMANDEL FERTILISERS LIMITED
Long term investments are valued at cost of acquisition including Long term investments are valued at cost of acquisition including
related expenses. Provision is made when there is permanent fall in related expenses. Provision is made when there is permanent fall in
the valuation of long term investments.
the valuation of long term investments.
TATA MOTORS LIMITED TATA MOTORS LIMITED
Long-term investments are stated at cost less other than temporary Long-term investments are stated at cost less other than temporary
diminution in value, if any, Current Investments comprising diminution in value, if any, Current Investments comprising
investments in mutual funds are stated at lower of cost and fair investments in mutual funds are stated at lower of cost and fair
value, determined on a portfolio basis.
value, determined on a portfolio basis.
TATA CONSULTANCY SERVICES LIMITED TATA CONSULTANCY SERVICES LIMITED
Long-term investments are stated at cost less provision for other Long-term investments are stated at cost less provision for other
than temporary diminution in value. Current investments
than temporary diminution in value. Current investments
MARUTI UDYOG LIMITED MARUTI UDYOG LIMITED
Current investments are valued at lower of cost and fair value.
Current investments are valued at lower of cost and fair value.
Long-term investments are valued at cost, except in the case of Long-term investments are valued at cost, except in the case of
permanent diminution in their value, in which case the permanent diminution in their value, in which case the
necessary provision is made.
necessary provision is made.
SRF LIMITED SRF LIMITED
a.
a.
Long term quoted investments are valued at cost unless there Long term quoted investments are valued at cost unless there is a permanent fall in their value as at the date of Balance
is a permanent fall in their value as at the date of Balance Sheet.
Sheet.
b.b.
Unquoted investments in subsidiaries being of long-term Unquoted investments in subsidiaries being of long-term
nature are valued at cost and no loss is recognized in the fall in nature are valued at cost and no loss is recognized in the fall in
their net worth, if any, unless there is a permanent fall in their their net worth, if any, unless there is a permanent fall in their
value. The fluctuations in exchange rates in respect of value. The fluctuations in exchange rates in respect of
investments held in foreign currencies in the subsidiary are investments held in foreign currencies in the subsidiary are
also not recognized for the same reason.
also not recognized for the same reason.
NEYVELI LIGNITE CORPORATION LIMITED NEYVELI LIGNITE CORPORATION LIMITED
Long Term Investments are valued as required by Accounting Long Term Investments are valued as required by Accounting Standard 13.
Standard 13.
CMC LIMITED CMC LIMITED
Long-term investments are stated at cost, less any permanent Long-term investments are stated at cost, less any permanent diminution in value, if any.
diminution in value, if any.
LARSEN & TOUBRO LIMITED LARSEN & TOUBRO LIMITED
Current investments are carried at the lower of cost or market value.
Current investments are carried at the lower of cost or market value.
The determination of carrying costs of such investments is done on The determination of carrying costs of such investments is done on the basis of specific identification. Long-term investments
the basis of specific identification. Long-term investments
(including interests in Joint Ventures which are in the nature of
(including interests in Joint Ventures which are in the nature of
Jointly Controlled Entities) are carried at cost, after providing for
Jointly Controlled Entities) are carried at cost, after providing for
SUNDARAM FASTENERS LIMITED SUNDARAM FASTENERS LIMITED
(a)(a)
Investments are accounted at the cost of acquisition which includes stamp Investments are accounted at the cost of acquisition which includes stamp fees, etc. All the investments are long term investments. Diminution in fees, etc. All the investments are long term investments. Diminution in the market value of long term investments is provided for only when the market value of long term investments is provided for only when there is a permanent diminution in the value of such investments.
there is a permanent diminution in the value of such investments.
(b)
(b)
Investments made during the year Investments made during the year Investments in subsidiary companies Investments in subsidiary companies
As at/year ended 31-
3-2005
As at/year ended 31-3-
2004 Cramlington Precision Forge Limited,
Northumberland, United Kingdom - 1523.14
TVS International Inc., Michigan, USA 22.98 37.09 RBI Autoparts Sdn, Bhd., Kuala Lumpur,
Malaysia - 48.47
As at/year ended 31-
3-2005
As at/year ended 31-
3-2004 Investments in Sundaram Mutual
Fund, Chennai (made and redeemed during the year)
1600.00 1600.00
As at/year ended 31-3-
2005
As at/year ended 31-3-
2004 Sale of shares in Devendra Exports
Limited, Chennai - 13.80
Investments realised during the year
HERO HONDA MOTORS HERO HONDA MOTORS
Current investments are stated at lower of cost and fair value. Long Current investments are stated at lower of cost and fair value. Long
term investments are stated at cost less provision for permanent term investments are stated at cost less provision for permanent
diminution, if any.
diminution, if any.
IBP CO. LIMITED IBP CO. LIMITED
All long term investments are valued at cost and provision for All long term investments are valued at cost and provision for
diminution in value, thereof is made, wherever such diminution is diminution in value, thereof is made, wherever such diminution is
not temporary.
not temporary.
All current investments are valued at lower of cost or fair market All current investments are valued at lower of cost or fair market
value.
value.
RAJSHREE SUGARS & CHEMICALS LIMITED RAJSHREE SUGARS & CHEMICALS LIMITED
Investments are stated at cost inclusive of expenses incidental to Investments are stated at cost inclusive of expenses incidental to
acquisition
acquisition
SUNDARAM CLAYTON LIMITED SUNDARAM CLAYTON LIMITED
Investments are valued at cost. Provision for diminution in the Investments are valued at cost. Provision for diminution in the
carrying cost of long term investments is made if such carrying cost of long term investments is made if such
diminution is other than temporary in nature in the opinion of diminution is other than temporary in nature in the opinion of
the management.
the management.
HINDUSTAN LEVER LIMITED HINDUSTAN LEVER LIMITED
Investments are classified into current and long-term Investments are classified into current and long-term
investments. Current investments are stated at the lower of investments. Current investments are stated at the lower of
cost and fair value.
cost and fair value.
Long-term investments are stated at cost. A provision for Long-term investments are stated at cost. A provision for
diminution is made to recognize a decline, other than diminution is made to recognize a decline, other than
temporary, in the value of long-term investments.
temporary, in the value of long-term investments.
BAJAJ AUTO LIMITED BAJAJ AUTO LIMITED
a)a)
Investments are valued at cost of acquisition, less provision for Investments are valued at cost of acquisition, less provision for diminution as necessary.
diminution as necessary.
b)b)
Investments made by the Company are of a long-term nature Investments made by the Company are of a long-term nature and hence diminutions in value of quoted investments are and hence diminutions in value of quoted investments are
generally not considered to be of a permanent nature.
generally not considered to be of a permanent nature.
c)c)
The management has laid out guidelines for the purpose of The management has laid out guidelines for the purpose of assessing likely impairments in investments and for making assessing likely impairments in investments and for making provisions there against based on given criteria. Appropriate provisions there against based on given criteria. Appropriate provisions are accordingly made which in the opinion of the provisions are accordingly made which in the opinion of the
management are considered adequate.
management are considered adequate.
MAHINDRA & MAHINDRA LIMITED MAHINDRA & MAHINDRA LIMITED
All long term investments are valued at cost or lower, if All long term investments are valued at cost or lower, if
written down. Current investments are valued at the lower of written down. Current investments are valued at the lower of
cost and faire value, determined by category of investments.
cost and faire value, determined by category of investments.
AS 15: Accounting for AS 15: Accounting for
Retirement Benefits In The Retirement Benefits In The
Financial Statements Of Financial Statements Of
Employers
Employers
GRASIM INDUSTRIES LIMITED GRASIM INDUSTRIES LIMITED
The company makes regular contribution to provident fund The company makes regular contribution to provident fund
and superannuation fund and these contributors are charged to and superannuation fund and these contributors are charged to
Profit and Loss account.
Profit and Loss account.
Contributors to the Gratuity Fund and provision for leave Contributors to the Gratuity Fund and provision for leave encashment are made on the basis of actuarial valuation at the encashment are made on the basis of actuarial valuation at the
end of year and charged to Profit & Loss Account.
end of year and charged to Profit & Loss Account.
ASHOK LEYLAND ASHOK LEYLAND
Liabilities for gratuity to all employees and for Liabilities for gratuity to all employees and for superannuation to the eligible employees are determined in superannuation to the eligible employees are determined in accordance with the schemes administered by the Life accordance with the schemes administered by the Life Insurance Corporation of India and contributions payable Insurance Corporation of India and contributions payable under the said schemes are charged to revenue. Liability for under the said schemes are charged to revenue. Liability for
leave encashment is provided on actuarial basis.
leave encashment is provided on actuarial basis.
CHEMPLAST SANMAR LIMITED CHEMPLAST SANMAR LIMITED
Contributions to the Provident Fund are paid to the funds Contributions to the Provident Fund are paid to the funds maintained by the Commissioners and Employees’
maintained by the Commissioners and Employees’
Provident Fund Trust and charged off to revenue.
Provident Fund Trust and charged off to revenue.
The company has covered its superannuation liability with The company has covered its superannuation liability with Life Insurance Corporation of India (LIC) and the
Life Insurance Corporation of India (LIC) and the contributors to LIC are charged off to revenue.
contributors to LIC are charged off to revenue.
Gratuity liability is ascertained and provided based on Gratuity liability is ascertained and provided based on actuarial valuation carried out as of 1
actuarial valuation carried out as of 1 st st November of every November of every year. The incremental liability for the period 1
year. The incremental liability for the period 1 st st November November to 31
to 31 st st March is determined and accrued on total liability March is determined and accrued on total liability basis.
basis.
TAMILNADU PETROPRODUCTS LIMITED TAMILNADU PETROPRODUCTS LIMITED
Contribution to provident fund is made monthly, at a Contribution to provident fund is made monthly, at a predetermined rate, to the Provident Fund Trust and predetermined rate, to the Provident Fund Trust and debited to the Profit and Loss Account on an accrual debited to the Profit and Loss Account on an accrual basis. The company has an arrangement with Life basis. The company has an arrangement with Life Insurance Corporation of India (LIC) to administer its Insurance Corporation of India (LIC) to administer its superannuation and gratuity schemes. Contribution to the superannuation and gratuity schemes. Contribution to the superannuation scheme is made annually at a superannuation scheme is made annually at a predetermined rate while the premium paid/payable for predetermined rate while the premium paid/payable for gratuity is determined based on an actuarial valuation gratuity is determined based on an actuarial valuation carried out by LIC and are debited to the Profit and Loss carried out by LIC and are debited to the Profit and Loss Account on an accrual basis. Provision for leave Account on an accrual basis. Provision for leave encashment on retirement is made on an actuarial basis.
encashment on retirement is made on an actuarial basis.
COROMANDEL FERTILISERS LIMITED COROMANDEL FERTILISERS LIMITED
a) Retirement benefits to employees are provided for by a) Retirement benefits to employees are provided for by means of Provident Fund, Superannuation, Gratuity and means of Provident Fund, Superannuation, Gratuity and Leave encashment. Liability towards superannuation, Leave encashment. Liability towards superannuation, Gratuity and Leave encashment are determined based on Gratuity and Leave encashment are determined based on
the actuarial valuation as on the Balance Sheet date.
the actuarial valuation as on the Balance Sheet date.
b) Compensation payable under voluntary Retirement Scheme b) Compensation payable under voluntary Retirement Scheme is charged to Profit and Loss account in the year in which is charged to Profit and Loss account in the year in which
the liability is incurred.
the liability is incurred.
TATA CONSULTANCY SERVICES LIMITED TATA CONSULTANCY SERVICES LIMITED
Contributions to Provident and Superannuation Funds are Contributions to Provident and Superannuation Funds are
recognized as expense when incurred.
recognized as expense when incurred.
Liability for gratuity and encashable leave are actually
Liability for gratuity and encashable leave are actually
TATA MOTORS LIMITED TATA MOTORS LIMITED
Retirement benefits are dealt with in the following manner:
Retirement benefits are dealt with in the following manner:
I) I) The liability for Superannuation (for certain employees) The liability for Superannuation (for certain employees) and Gratuity is ascertained by an independent, actuarial and Gratuity is ascertained by an independent, actuarial valuation. The liability so determined and contribution to valuation. The liability so determined and contribution to
Provident Fund / Superannuation Fund is provided for.
Provident Fund / Superannuation Fund is provided for.
II) II) Provision for incremental liability in respect of Provision for incremental liability in respect of encashable privilege leave on separation and post- encashable privilege leave on separation and post- retirement medical benefits are made as per independent retirement medical benefits are made as per independent
actuarial valuations at the year end.
actuarial valuations at the year end.
MARUTI UDYOG LIMITED MARUTI UDYOG LIMITED
Gratuity and Leave encashment benefits on retirement Gratuity and Leave encashment benefits on retirement are accounted for on the basis of actuarial valuation at are accounted for on the basis of actuarial valuation at
the end of the period
the end of the period
SRF LIMITED SRF LIMITED
a. a. Encashment of accrued leave salary is fully Encashment of accrued leave salary is fully provided for on actuarial basis.
provided for on actuarial basis.
b. b. The liability on account of retirement benefits The liability on account of retirement benefits such as provident fund, gratuity and
such as provident fund, gratuity and
superannuation funds are administered through superannuation funds are administered through separate funds. Contributions to Provident and separate funds. Contributions to Provident and
Superannuation funds are accounted at respective Superannuation funds are accounted at respective
specified rates.
specified rates.
c. c. Gratuity is accrued on actuarial valuation basis Gratuity is accrued on actuarial valuation basis
and funded through Trusts, which have taken out
and funded through Trusts, which have taken out
NEYVELI LIGNITE CORPORATION LIMITED NEYVELI LIGNITE CORPORATION LIMITED
a. a. Contributions to Provident Fund is recognized in Contributions to Provident Fund is recognized in Profit & Loss Account on the basis of actual
Profit & Loss Account on the basis of actual liability.
liability.
b. b. Liabilities for future payment of Gratuity, Liabilities for future payment of Gratuity,
encashable earned leave; half pay leave and Post encashable earned leave; half pay leave and Post
Retirement Medical Scheme are provided based Retirement Medical Scheme are provided based
on actuarial valuation. Contribution to Gratuity is on actuarial valuation. Contribution to Gratuity is
made to L.I.C. Group Gratuity Fund.
made to L.I.C. Group Gratuity Fund.
c. c. Ex-gratia to employees retiring under voluntary Ex-gratia to employees retiring under voluntary
retirement scheme is charged off in full in the year retirement scheme is charged off in full in the year
in which they are relieved from service.
in which they are relieved from service.
CMC LIMITED CMC LIMITED
i. i. The company’s contribution to the Employees’ Provident The company’s contribution to the Employees’ Provident Fund is deposited in a trust formed by the Company
Fund is deposited in a trust formed by the Company
under the Employees’ Provident Fund and Miscellaneous under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 which is recognized by the Income- Provisions Act, 1952 which is recognized by the Income- tax authorities. Such contributions are charged to the
tax authorities. Such contributions are charged to the profit and loss account each year.
profit and loss account each year.
ii. ii. Gratuity to employees is based on the Group Gratuity Gratuity to employees is based on the Group Gratuity Scheme of the life Insurance Corporation of India.
Scheme of the life Insurance Corporation of India.
Contributions made to the scheme are expensed in the Contributions made to the scheme are expensed in the year.
year.
iii. iii. The balance of unavailed leave due to employees has The balance of unavailed leave due to employees has been provided on the basis of actuarial valuation.
been provided on the basis of actuarial valuation.
LARSEN & TOUBRO LIMITED LARSEN & TOUBRO LIMITED
Provisions for / contributions to retirement benefit schemes are Provisions for / contributions to retirement benefit schemes are
made as follows:
made as follows:
(a)(a)
Provident fund on actual liability basis. Provident fund on actual liability basis.
(b)(b)
Superannuation/Pension schemes on the basis of actual Superannuation/Pension schemes on the basis of actual liability/actuarial valuation.
liability/actuarial valuation.
(c)(c)
Gratuity based on actuarial valuation. Gratuity based on actuarial valuation.
(d)(d)
Leave Encashment benefit on retirement on actuarial valuation Leave Encashment benefit on retirement on actuarial valuation basis.
basis.
Liability in respect of medical benefits provided to retired Liability in respect of medical benefits provided to retired
employees (net of reimbursements received from the Insurance employees (net of reimbursements received from the Insurance Company) is accounted on cash basis.
Company) is accounted on cash basis.
Lump sum compensation paid under Voluntary Retirement- Lump sum compensation paid under Voluntary Retirement- cum-Pension Schemes are amortised over a period of five cum-Pension Schemes are amortised over a period of five years. The future pensions under Voluntary Retirement-cum- years. The future pensions under Voluntary Retirement-cum- Pension Scheme are amortised over the period for which
Pension Scheme are amortised over the period for which pensions are payable.
pensions are payable.
SUNDARAM FASTENERS LIMITED SUNDARAM FASTENERS LIMITED
Contribution to Provident Fund is made to the Provident Fund Trust Contribution to Provident Fund is made to the Provident Fund Trust maintained by the Company except with respect to employees of maintained by the Company except with respect to employees of Iron Powder Division and Autolec Division for whom contributions Iron Powder Division and Autolec Division for whom contributions are made to the Employees Provident Fund Organisation.
are made to the Employees Provident Fund Organisation.
Contributions to superannuation and gratuity fund are made to the Contributions to superannuation and gratuity fund are made to the respective schemes maintained by Life Insurance Corporation of respective schemes maintained by Life Insurance Corporation of India. Gratuity payments are made directly to employees. All the India. Gratuity payments are made directly to employees. All the above expenditure are debited to Profit and Loss Account.
above expenditure are debited to Profit and Loss Account.
Provision for Leave Salary has been made on the basis of actuarial Provision for Leave Salary has been made on the basis of actuarial valuation.
valuation.
RAJSHREE SUGARS & CHEMICALS LIMITED RAJSHREE SUGARS & CHEMICALS LIMITED
The gratuity and superannuation liabilities of the Company are
The gratuity and superannuation liabilities of the Company are
covered under Master policies with Life Insurance Corporation of
covered under Master policies with Life Insurance Corporation of
HERO HONDA MOTORS HERO HONDA MOTORS
The Company has various schemes of retirement benefits such as The Company has various schemes of retirement benefits such as
Provident Fund, Superannuation Fund, Gratuity Fund duly recognized Provident Fund, Superannuation Fund, Gratuity Fund duly recognized by the income-tax authorities and leave encashment benefit fund. The by the income-tax authorities and leave encashment benefit fund. The funds are administered through trustees and the contributions are
funds are administered through trustees and the contributions are charged against revenue every year.
charged against revenue every year.
IBP CO. LIMITED IBP CO. LIMITED
Compensation paid under Voluntary Retirement Scheme is charged off Compensation paid under Voluntary Retirement Scheme is charged off in the year of payment.
in the year of payment.
Gratuity Gratuity
Payment of gratuity is made through trust and the amount of Payment of gratuity is made through trust and the amount of
contribution, based on actuarial valuation, is charged to Profit & Loss contribution, based on actuarial valuation, is charged to Profit & Loss Account.
Account.
Leave Encashment/Post Retirement Medical Benefits/Resettlement Leave Encashment/Post Retirement Medical Benefits/Resettlement
Benefits : Accruing liability is charged to Profit & Loss Account based Benefits : Accruing liability is charged to Profit & Loss Account based on actuarial valuation.
on actuarial valuation.
SUNDARAM CLAYTON LIMITED SUNDARAM CLAYTON LIMITED
a)a)
Contributions to Provident Fund are made to recognized Contributions to Provident Fund are made to recognized trusts.
trusts.
b)b)
Contributions to gratuity, deposit linked insurance fund and Contributions to gratuity, deposit linked insurance fund and superannuation fund are made to Life Insurance Corporation superannuation fund are made to Life Insurance Corporation
of India in accordance with the scheme framed by the of India in accordance with the scheme framed by the
Corporation.
Corporation.
c)c)
The company has evolved a pension policy for senior The company has evolved a pension policy for senior
managers. Provision in this regard is made on actuarial basis managers. Provision in this regard is made on actuarial basis
for current and past services.
for current and past services.
d)d)
Leave salary payable in respect of encashable leave has Leave salary payable in respect of encashable leave has been provided for according to the service rules of the been provided for according to the service rules of the
company based on actuarial valuation. Unavailed leave
company based on actuarial valuation. Unavailed leave
HINDUSTAN LEVER LIMITED HINDUSTAN LEVER LIMITED
Contributions to defined contribution schemes such as Contributions to defined contribution schemes such as Provident Fund and Family Pension Fund are charged to Provident Fund and Family Pension Fund are charged to the Profit and loss Account as incurred. The Company the Profit and loss Account as incurred. The Company also provides retirement/post-retirement benefits in the also provides retirement/post-retirement benefits in the
form of gratuity, pensions, leave encashment and medical.
form of gratuity, pensions, leave encashment and medical.
Such benefits are provided for based on valuations, as at Such benefits are provided for based on valuations, as at the balance sheet date, made by independent actuaries.
the balance sheet date, made by independent actuaries.
MAHINDRA & MAHINDRA LIMITED MAHINDRA & MAHINDRA LIMITED
Retirement Benefits in respect of gratuity and leave Retirement Benefits in respect of gratuity and leave
encashable at retirement/cessation are provided for based encashable at retirement/cessation are provided for based on valuations, as at the Balance Sheet date, made by
on valuations, as at the Balance Sheet date, made by independent actuaries.
independent actuaries.
BAJAJ AUTO LIMITED BAJAJ AUTO LIMITED
a)
a)
Gratuity Gratuity
Payment for present liability of future payment of gratuity is Payment for present liability of future payment of gratuity is
being made to approved Gratuity Funds, which fully covers the being made to approved Gratuity Funds, which fully covers the
same under Cash Accumulation Policy of the Life Insurance same under Cash Accumulation Policy of the Life Insurance
Corporation of India.
Corporation of India.
b)b)
Superannuation Superannuation
Contribution to Superannuation fund is being made as per the Contribution to Superannuation fund is being made as per the
scheme of the Company.
scheme of the Company.
c)
c)
Provident Fund Contributions are made to the Company’s Provident Fund Contributions are made to the Company’s Provident Fund Trust.
Provident Fund Trust.
d)
d)
Contributions to Employees Pension Scheme 1995 are made to Contributions to Employees Pension Scheme 1995 are made to Government Provident Fund Authority.
Government Provident Fund Authority.
Privilege Leave entitlements are recognized as a liability, in the
Privilege Leave entitlements are recognized as a liability, in the
AS 16: Borrowing Costs
AS 16: Borrowing Costs
GRASIM INDUSTRIES LIMITED GRASIM INDUSTRIES LIMITED
Interest and other costs in connection with the borrowing of the Interest and other costs in connection with the borrowing of the funds to the extent related/ attributed to the funds to the extent related/ attributed to the acquisition/construction of qualifying fixed assets are acquisition/construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its capitalised upto the date when such assets are ready for its intended use and other borrowing costs are charged to Profit &
intended use and other borrowing costs are charged to Profit &
Loss Account.
Loss Account.
CHEMPLAST SANMAR LIMITED CHEMPLAST SANMAR LIMITED
Salaries and related costs, travel and other direct costs relating Salaries and related costs, travel and other direct costs relating to new projects incurred prior to their commencement of to new projects incurred prior to their commencement of operation which are in the process of implementation are operation which are in the process of implementation are capitalized.
capitalized.
Borrowing costs that are directly attributable to the acquisition,
Borrowing costs that are directly attributable to the acquisition,
SUNDARAM CLAYTON LIMITED SUNDARAM CLAYTON LIMITED
The borrowing cost has been treated in accordance with The borrowing cost has been treated in accordance with
Accounting Standard on Borrowing Cost (AS 16) issued by Accounting Standard on Borrowing Cost (AS 16) issued by The Institute of Chartered Accountants of India. During the The Institute of Chartered Accountants of India. During the
year, there were no borrowings attributable to qualifying assets year, there were no borrowings attributable to qualifying assets and hence no borrowing costs have been capitalized.
and hence no borrowing costs have been capitalized.
LARSEN & TOUBRO LIMITED LARSEN & TOUBRO LIMITED
Borrowing Costs that are attributable to the acquisition, Borrowing Costs that are attributable to the acquisition,
construction or production of a qualifying asset are capitalized construction or production of a qualifying asset are capitalized as part of cost of such asset till such time as the asset is ready as part of cost of such asset till such time as the asset is ready for its intended use or sale. A qualifying asset is an asset that for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for necessarily requires a substantial period of time to get ready for its intended use or sale. All other Borrowing Costs are
its intended use or sale. All other Borrowing Costs are recognized as expenses in the period in which they are recognized as expenses in the period in which they are incurred.
incurred.
SUNDARAM FASTENERS LIMITED SUNDARAM FASTENERS LIMITED
Interest on borrowings to finance fixed assets are capitalized only if the Interest on borrowings to finance fixed assets are capitalized only if the borrowing costs are attributable to the acquisition of fixed assets that borrowing costs are attributable to the acquisition of fixed assets that take a substantial period of time to get ready for its intended use.
take a substantial period of time to get ready for its intended use.
Expenditure incurred on alteration/temporary constructions is charged Expenditure incurred on alteration/temporary constructions is charged off as expenditure under appropriate heads of expenditure in Profit and off as expenditure under appropriate heads of expenditure in Profit and Loss account in the year in which it is incurred.
Loss account in the year in which it is incurred.
IBP CO. LIMITED IBP CO. LIMITED
Borrowing Costs, on weighted average basis, that are attributable to Borrowing Costs, on weighted average basis, that are attributable to construction of qualifying assets are capitalized as part of the cost of construction of qualifying assets are capitalized as part of the cost of such assets. Qualifying asset is the one that necessarily takes substantial such assets. Qualifying asset is the one that necessarily takes substantial period of time to get ready for intended use.
period of time to get ready for intended use.
MARUTI UDYOG LIMITED MARUTI UDYOG LIMITED
Borrowing Costs that are directly attributable to the acquisition,
Borrowing Costs that are directly attributable to the acquisition,
AS 17: Segment AS 17: Segment
Reporting
Reporting
TATA MOTORS LIMITED TATA MOTORS LIMITED
The Company is exclusively engaged in the business of The Company is exclusively engaged in the business of automobile products consisting of all types of commercial automobile products consisting of all types of commercial and passenger vehicles. These in the context of
and passenger vehicles. These in the context of
Accounting Standard 17 on Segment Reporting, issued by Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountants of India, are
the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.
considered to constitute one single primary segment.
SUNDARAM CLAYTON LIMITED SUNDARAM CLAYTON LIMITED
The Company operates in only one segment viz., The Company operates in only one segment viz., Automative components and there are no separate Automative components and there are no separate
reportable segments. The income from software services reportable segments. The income from software services is less than 10% of total revenue. Hence, this is not
is less than 10% of total revenue. Hence, this is not
LARSEN & TOUBRO LIMITED LARSEN & TOUBRO LIMITED
I.I.
Segment Accounting Policies Segment Accounting Policies
Segment accounting policies are in line with the accounting Segment accounting policies are in line with the accounting policies of the Company. In addition, the following specific policies of the Company. In addition, the following specific accounting policies have been followed for segment reporting:
accounting policies have been followed for segment reporting:
a) a) Segment revenue includes sales and other income directly Segment revenue includes sales and other income directly identifiable with / allocable to the segment including inter- identifiable with / allocable to the segment including inter- segment revenue.
segment revenue.
b) b) Expenses that are directly identifiable with / allocable to Expenses that are directly identifiable with / allocable to
segments are considered for determining the segment result.
segments are considered for determining the segment result.
Expenses which relate to the company as a whole and not Expenses which relate to the company as a whole and not allocable to segments are included under “Unallocable allocable to segments are included under “Unallocable Corporate Expenditure”.
Corporate Expenditure”.
c) c) Income which relates to the company as a whole and not Income which relates to the company as a whole and not allocable to segments is included under “Unallocable allocable to segments is included under “Unallocable Corporate Income”.
Corporate Income”.
d) d) Segment results include margins on inter-segment capital jobs, Segment results include margins on inter-segment capital jobs, which are reduced in arriving at the profit before tax of the
which are reduced in arriving at the profit before tax of the Company.
Company.
e) e) Segment assets and liabilities include those directly identifiable Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable corporate assets and with the respective segments. Unallocable corporate assets and
liabilities represent the assets and liabilities that relate to the liabilities represent the assets and liabilities that relate to the
Company as a whole and not allocable to any segment.
Company as a whole and not allocable to any segment.
Unallocable assets mainly comprise trade investments in Unallocable assets mainly comprise trade investments in
subsidiaries and associate companies that contribute or relate to subsidiaries and associate companies that contribute or relate to
the portfolio of the Company’s core / thrust areas of business the portfolio of the Company’s core / thrust areas of business
such as infrastructure development and software solutions.
such as infrastructure development and software solutions.
Unallocable liabilities include mainly loan funds, provisions for Unallocable liabilities include mainly loan funds, provisions for
employee retirement benefits and proposed dividend, employee retirement benefits and proposed dividend,
II.II.
Inter-segment transfer pricing Inter-segment transfer pricing
Segment revenue resulting from transactions with other business Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer price agreed
segments is accounted on the basis of transfer price agreed
SUNDARAM FASTENERS LIMITED SUNDARAM FASTENERS LIMITED
The Company operates in the same segment which is subject to The Company operates in the same segment which is subject to the similar risks and returns.
the similar risks and returns.
HINDUSTAN LEVER LIMITED HINDUSTAN LEVER LIMITED
The accounting policies adopted for segment reporting are in The accounting policies adopted for segment reporting are in line with the accounting policies of the Company with the line with the accounting policies of the Company with the following additional policies for segment reporting:
following additional policies for segment reporting:
a)a)
Inter segment revenue have been accounted for based on the Inter segment revenue have been accounted for based on the
transaction price agreed to between segments which is primarily transaction price agreed to between segments which is primarily market led.
market led.
b)b)
Revenue and expenses have been identified to segments on the Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the
basis of their relationship to the operating activities of the
segment. Revenue and expenses, which relate to the enterprise segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable as a whole and are not allocable to segments on a reasonable basis, have been included under “Unallocable Corporate
basis, have been included under “Unallocable Corporate Expenses”.
Expenses”.
AS 18: Related Party AS 18: Related Party
Disclosures
Disclosures
SUNDARAM CLAYTON LIMITED SUNDARAM CLAYTON LIMITED
Disclosures are made as per the requirements of the Disclosures are made as per the requirements of the standard and clarifications issued by The Institute of standard and clarifications issued by The Institute of Chartered Accountants of India.
Chartered Accountants of India.
AS 19: Leases
AS 19: Leases
COROMANDEL FERTILISERS LIMITED COROMANDEL FERTILISERS LIMITED
The company’s significant leasing arrangements are in respect The company’s significant leasing arrangements are in respect of operating leases for premises (Residences, Office, Storage of operating leases for premises (Residences, Office, Storage Godowns for finished goods, etc.). The leasing arrangements Godowns for finished goods, etc.). The leasing arrangements which are not cancelable range between 11 months to 5 years which are not cancelable range between 11 months to 5 years generally, and are usually renewable by mutual consent on generally, and are usually renewable by mutual consent on agreed terms. The aggregate lease rents payable are charged as agreed terms. The aggregate lease rents payable are charged as rent in the Profit and Loss Account
rent in the Profit and Loss Account
TATA CONSULTANCY SERVICES LIMITED TATA CONSULTANCY SERVICES LIMITED
Lease arrangements where the risks and rewards incident to Lease arrangements where the risks and rewards incident to ownership of an asset substantially vest with the lessor, are ownership of an asset substantially vest with the lessor, are recognized as operating leases. Lease rents under operating recognized as operating leases. Lease rents under operating leases are recognized in the profit and loss account on a
leases are recognized in the profit and loss account on a straight line basis.
straight line basis.
TATA MOTORS LIMITED TATA MOTORS LIMITED
Assets acquired under finance leases are recognized at Assets acquired under finance leases are recognized at
the lower of the fair value of the leased assets at the lower of the fair value of the leased assets at
inception and the present value of minimum lease inception and the present value of minimum lease
payments. Lease payments are apportioned between the payments. Lease payments are apportioned between the
finance charge and the reduction of the outstanding finance charge and the reduction of the outstanding liability. The finance charge is allocated to periods liability. The finance charge is allocated to periods during the lease term at a constant periodic rate of during the lease term at a constant periodic rate of
interest on the remaining balance of the liability. Assets interest on the remaining balance of the liability. Assets given under finance lease are recognized as receivables given under finance lease are recognized as receivables
at an amount equal to the net investment in the lease and at an amount equal to the net investment in the lease and
the finance income is based on a constant rate of return
the finance income is based on a constant rate of return
LARSEN & TOUBRO LIMITED LARSEN & TOUBRO LIMITED
a)a)
Lease transactions entered into prior to April 1, 2001: Lease transactions entered into prior to April 1, 2001:
Assets leased out are stated at original cost. Lease equalization Assets leased out are stated at original cost. Lease equalization adjustment is the difference between capital recovery included adjustment is the difference between capital recovery included
in the lease rentals and depreciation provided in the books.
in the lease rentals and depreciation provided in the books.
Lease rentals in respect of assets acquired under leases are Lease rentals in respect of assets acquired under leases are
charged to Profit and Loss Account.
charged to Profit and Loss Account.
b)b)
