Annual Report 2011 - Ballarpur Industries Limited

ConsoLIDATeD sCheDuLes "I" To "VIII" attached to and forming part of the profit & loss account for the year ended June 30, 2011
which they arise except for adjustment of exchange difference arising on reporting of long term foreign currency monetary items in so
far they related to the acquisition of a depreciable capital assets which are adjusted to the cost of the assets.
(iv) The operation of foreign subsidiaries which are considered as non-integral operations, their financial statements are translated at the
following exchange rates:
(a) revenue and expenses : at the average exchange rate during the year
(b) Current assets and current liabilities : exchange rate prevailing at the end of the year
(c) Fixed Assets : exchange rate prevailing at the end of the year
(d) Share Capital : At the Original rate when the capital was infused
I.
The resultant exchange difference is accounted as Foreign Currency Translation reserve until the disposal of the net Investment.
reVenue reCoGnITIon
As per the requirement of the Companies (Amendment) Act, 1988, all Incomes and expenses are accounted for on accrual basis.
J. reseArCh & DeVeLopmenT
revenue expenditure on research and Development is charged to the Profit & Loss Account in the year in which it is incurred. Capital
expenditure on research and Development is shown as an addition to Fixed Assets or Work in Progress, as the case may be.
K. empLoYees BeneFITs
Short term employee benefits are charged off in the year in which the related services are rendered.
Post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. The
amount charged off is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial
gain and losses in respect of post employment and other long term benefits are charged to Profit & Loss Accounts.
L. InCome From InVesTmenTs
Income from Investments, where appropriate, is taken to revenue in full on declaration or receipt and tax deducted at source thereon is
treated as advance tax.
m. ADVAnCe LICense, ImporT enTITLemenTs
Advance license, Import entitlements are recognized at the time of export and the benefit in respect of advance License received by the
company against export made by it are recognized as and when goods are imported against them.
n. TAXATIon
Provision for Current Tax is made on the basis of estimated taxable income for the relevant accounting year in accordance with the Income
Tax Act, 1961.
The deferred tax liability on account of timing differences between the book profits and the taxable profits for the year is accounted by
applying the tax rates as applicable as on the balance sheet date.
Deferred Tax assets arising from timing differences are recognised on the Principles of virtual certainty that these would be realised in
future.
o. ImpAIrmenT oF AsseTs
The company applies the test of Impairment of certain assets as provided in Accounting Standard (AS) – 28 “Impairment of Assets”.
p. proVIsIon AnD ConTInGenCIes
The Company create a provision when there is a present obligation as a result of past events that probably require an outflow of resources
and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made, when there is a possible
obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot
be made.
Q. shAre premIum ACCounT: uTILIsATIon
Debenture / Share / Zero Coupon Convertible Bonds issue expenses incurred and premium payable on Zero Coupon Convertible Bonds
are adjusted in the same year against the Securities Premium Account as permitted by section 78(2) of the Companies Act, 1956.
Consolidated FinanCials
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