2008 - 2009 - Tata Investment Corporation Limited

More documents

Recommendations

Info

44 Seventy-second annual report 2008 - 2009 Tata Investment Corporation Limited SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2009 Schedule ‘J’ OTHER EXPENDITURE (1) Miscellaneous [includes loss on foreign exchange Rs.Nil; (Previous Year Rs.1.82 lacs)] Rupees (in lacs) Rupees (in lacs) Previous Year Rupees (in lacs) 240.11 192.14 (2) Donations 75.35 127.30 (3) Insurance 0.96 0.96 (4) Rent 0.51 0.51 (5) Commission/Sitting fees to non-whole time directors (See Note 11 to Schedule K) 59.85 43.35 (6) Repairs and Maintenance : a) Plant and Machinery 2.75 1.61 b) Buildings 1.18 1.04 c) Others 5.42 5.15 (7) Auditors’ Remuneration : 9.35 7.80 (i) Statutory Auditors* a) Audit fees 7.50 7.50 b) Tax audit fees 2.00 2.00 c) Other services 5.75 5.40 d) Service tax 1.68 1.90 e) Out-of-pocket expenses – 0.46 16.93 17.26 (ii) Fees paid to Internal Auditors 3.37 1.68 20.30 18.94 (8) Rights Issue expenses [includes amount paid to Statutory Auditors* for other services (Rs. 25.00 lacs net of service tax of Rs.3.09 lacs) (Previous Year Rs.Nil)] 382.07 – Less: Adjusted against Securities Premium Account 382.07 – – *includes payment made to a firm in which some of the partners of the audit firm are partners. 406.43 391.00
Schedule ‘K’ NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2009 1. Signifi cant Accounting Policies: (i) Basis of Preparation of Financial Statements. The fi nancial statements have been prepared on the historical cost convention, on an accrual basis and comply in all material respect with the Accounting Standards notifi ed by Companies (Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act, 1956. (ii) The preparation of the fi nancial statements requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including the contingent liabilities) and the reported income and expenses during the reporting period. The Management believes that the estimates used in the preparation of the fi nancial statements are prudent and reasonable. The differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise. (iii) Fixed assets are stated at cost less accumulated depreciation provided on the written down value method at the following rates:- (% p.a.) (a) Building 5 (b) Furniture, Fixtures and Equipment 100 (c) Motor Cars 26 (d) Plant and Machinery 40 (iv) Income from Dividend is accounted as and when such dividend has been declared and the Company’s right to receive payment is established. Interest income is recognised on a time proportion basis, taking into account the amount outstanding and the rate applicable. (v) a) Short-term employee benefi ts are recognised as an expense at the undiscounted amount in the profi t and loss account of the period in which the related service is rendered. b) Contributions under Defi ned Contribution Plans are recognised in the Profi t and Loss Account in the period in which the employee has rendered the service. c) Company’s liability towards Defi ned Benefi t Plans / Long term compensated absences is determined by an independent actuary using the projected unit credit method. Past services are recognised on a straight line basis over the average period until the benefi ts become vested. Actuarial gains and losses are recognised immediately in the statement of Profi t and Loss Account as income or expense. Obligation is measured at the present value of estimated future cash fl ows using a discounted rate that is determined by reference to the market yields at the Balance Sheet date on Government Bonds where the currency and terms of the Government Bonds are consistent with the currency and estimated terms of the defi ned benefi t obligation. (vi) a) Long Term investments are stated at average cost except where there is a diminution other than temporary, for which provision is made. b) Current investments are stated at the lower of cost and fair value, considered category wise. 2. (vii) Income tax expense comprises current tax and deferred tax charge or credit. The current tax is determined as the amount of tax payable in respect of the estimated taxable income for the period. The deferred tax charge or credit is recognised using prevailing enacted or substantively enacted tax rates. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future. Deferred tax assets/liabilities are reviewed at each balance sheet date based on developments during the year and available case laws to reassess realisation/liabilities. In accordance with the High Court Orders dated 27th September, 2002 and 30th January, 2009 and the Accounting Practice adopted earlier, provision for diminution in the value of investments amounting to Rs.2185.68 lacs (Previous Year Rs.Nil) has been debited to the securities premium account instead of Profi t and Loss Account as prescribed under Accounting Standard (AS) 13 on ‘Accounting for Investments’. Consequently, the profi ts for the year is higher to that extent. Further an amount of Rs. Nil (Previous Year Rs. 42.24 lacs) has been credited to the securities premium account being write back of provision for diminution in value of certain investments no longer required, which had been debited to such account in earlier years. Rupees (in lacs) Previous Year Rupees (in lacs) 3. Contingent Liabilities - a) Uncalled liability on partly paid shares, debentures and bonds 0.13 16.93 b) Income Tax matters decided in the Company’s favour by appellate authorities, where the department is in further appeal 9.49 430.19 c) Claims against the Company not acknowledged as debts in respect of income-tax matters – 33.61 4. Expenditure in foreign currency a) For professional fees 0.09 0.09 b) For bank charges 0.02 – 5. Earnings in foreign currency - a) Sale proceeds of investments [net profi t on sale Rs. 248.72 lacs (Previous Year Rs. 698.25 lacs)] 580.58 700.58 b) Interest received on deposits 3.80 3.59 c) Dividend received (kept in Suspense, pending receipt in India) 0.15 0.09 45
Page 1 and 2: TATA INVESTMENT CORPORATION LIMITED
Page 3 and 4: e) Members are requested to notify
Page 5 and 6: Name of the Director Details of the
Page 7 and 8: DIRECTORS’ REPORT TO THE MEMBERS,
Page 9 and 10: India was not immune to some of the
Page 11 and 12: 12. DIRECTORS : Pursuant to the pro
Page 13 and 14: REPORT ON CORPORATE GOVERNANCE The
Page 15 and 16: over-all functioning of the Company
Page 17 and 18: (c) They accept responsibility for
Page 19 and 20: Registrars & Share Transfer Agents
Page 21 and 22: AUDITORS’ REPORT TO THE MEMBERS O
Page 23 and 24: Insurance, Income-tax, Sales-tax, V
Page 25 and 26: PROFIT AND LOSS ACCOUNT FOR THE YEA
Page 27 and 28: SCHEDULE FORMING PART OF THE BALANC
Page 31 and 32: Particulars Face value Rupees 5 ELE
Page 33 and 34: Particulars Face value Rupees LIST
Page 43: SCHEDULE FORMING PART OF THE PROFIT
Page 47 and 48: c) Details of material related part
Page 49 and 50: d) The detail of experience adjustm
Page 51 and 52: Schedule appended to the Balance Sh
Page 53 and 54: Year Paid up Capital Reserves and S
Page 55: TATA INVESTMENT CORPORATION LIMITED

2008 - 2009 - Tata Investment Corporation Limited

Create successful ePaper yourself

Delete template?

Save as template?