Board of Directors - Opto Circuits

NOTES TO THE CONSOLIDATED BALANCE SHEET:
1 The consolidated financial statements have been prepared in accordance with the general principals of Accounting standards 21
“Consolidated Financial Statements” issued by the ICAI.
2 The Subsidiaries (which along with Opto Circuits (India) Limited, the Holding Company ) considered in the preparation of these
consolidated financial statements are:
Name of the Company Country of Percentage of Percentage of
Incorporation ownership interest ownership interest
as at 31.03.2006 as at 31.03.2005
1 Advanced Micronic Devices Limited India 59.71% 59.71%
2 Mediaid Inc., USA USA 100% 100%
3 Altron Industries Pvt Limited India 100% NIL
3 Further the subsidiaries not considered in preparation of these financial statements are:
Name of the Company Country of Percentage of Percentage of
Incorporation ownership interest ownership interest
as at 31.03.2006 as at 31.03.2005
1 Eurocor GmbH., Germany 100% NIL
The financial statements of Eurocor are prepared as of December each year. Eurocor GmbH., was acquired by Opto Circuits (India) Ltd., during
January 2006, consequently the Financial Statement of Eurocor for the period ended December 2005have not been considered for consolidation.
4 The financial statements of all subsidiaries, considered in the consolidated accounts, are drawn up to 31st March.
5 The total amount of accumulated depreciation as per consolidated accounts is Rs.88,503,356/- out of which an amount of Rs.
10,596,992/- pertaining to Depreciation calculated by Written Down Value method, (which constitutes 11.97% of the total accumulated
depreciation).
6. Stock Reserve on inventories held by the subsidiaries have not been considered while preparing Consolidated Financial Statements.
7. Deferred Tax Asset/Liability has not been recognized in the holding companies accounts as there is a Deferred Tax Asset on the opening
st
timing difference for the year ending 31 March 2002 of the depreciation charged on the Fixed Assets and there is no virtual certainty
supported by convincing evidence that sufficient future taxable income will be available against which such Deferred Tax Asset can be
realized.
st
Deferred Tax liability in case of Advanced Micronic Devices Limited, the subsidiary, as at 31 March 2006 represents the tax effect of temporary
difference substantially on account of WDV of fixed assets on account of differing depreciation methods/rates and other timing differences
arising during the accounting year. Accumulated net deferred tax liability arising out of timing differences of the earlier years has not been
recognized.
31.03.2006 31.03.2005
(Rs.) (Rs.)
st
Deferred tax liability as at 31 March 2006 Comprises of
Timing difference on account of depreciation
Deferred Tax liability
7,26,000 10,60,000
Other timing differences-Deferred Tax Asset NIL NIL
Net Deferred Tax Liability (7,26,000) (10,60,000)
SIGNIFICANT ACCOUNTING POLICIES
Convention:
To prepare financial statements in accordance with the applicable accounting standards in India. A summary of important accounting policies,
adopted and applied by the Holding Company which have been applied consistently, is set out below.
Basis of Accounting
To prepare financial statements in accordance with the historical cost convention modified by revaluation of certain fixed assets as and when
undertaken as detailed below.
98