Untitled - Domain-b

Schedules forming part of the accounts(All amounts in crores of rupees except share data and unless otherwise stated)Schedule 20: Significant accounting policies and notes to the accounts (Contd.)d)e)iv) OthersProt on sale of Investments is recorded on transfer of title from the Company and is determined as the differencebetween the sales price and the then carrying value of the investment. Interest on the deployment of surplus fundsis recognised using the time-proportion method, based on interest rates implicit in the transaction. Dividend income,brokerage, commission and rent are recognised when the right to receive the same is established. Dividend fromsubsidiaries is recognised even if same are declared after the balance sheet date but pertains to period on or before thedate of balance sheet as per the requirement of schedule VI of the Companies Act, 1956.Fixed assetsFixed assets are stated at the cost less accumulated depreciation and impairment losses if any. Cost comprises the purchaseprice and any attributable cost of bringing the asset to its working condition for its intended use. Fixed assets underconstruction, advances paid towards acquisition of xed assets and cost of assets not ready for use before the year-end,are disclosed as capital work in progress.Depreciation and amortizationDepreciation on xed assets except leasehold land and leasehold improvements is provided on the straight-line methodover their estimated useful lives, as determined by the management, at the rates which are equal to or higher than therates prescribed under Schedule XIV of the Companies Act, 1956. Leasehold land is amortised over the period of lease.Leasehold improvements are amortised over a period of four years or the remaining period of the lease, whichever is shorter.Depreciation is charged on a pro-rata basis for assets purchased/sold during the year. Assets costing less than Rs. 5,000are fully depreciated in the year of purchase.Intangible assets are amortized over their respective individual estimated useful life or straight line basis.The management’s estimate of the useful life of the various xed assets is as follows:Life (in years)Buildings 20Plant and machinery (including ofce equipment,air conditioners and electrical installations) 4Computers 2 - 4Software 3Furniture and xtures 4Vehicles-Owned 5Vehicle–LeasedOver the period of lease or 5 years, whichever is lowerf)g)h)Impairment of assets:(i) The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based oninternal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverableamount. The recoverable amount is the greater of the asset’s net selling price and value in use. In assessing value in use,the estimated future cash ows are discounted to their present value at the weighted average cost of capital.LeasesWhere the Company is the lesseeFinance leases, which effectively transfer to the Company substantially all the risks and benets incidental to ownership of theleased item, are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception ofthe lease term and disclosed as leased assets. Lease payments are apportioned between the nance charges and reductionof the lease liability based on the implicit rate of return. Finance charges are charged directly against income.Leases where the lessor effectively retains substantially all the risks and benets of ownership of the leased item, areclassied as operating leases. Operating lease payments are recognized as an expense in the Prot and Loss account on astraight-line basis over the lease term.InvestmentsTrade investments are the investments made to enhance the Company’s business interests. Investments that are readilyrealisable and intended to be held for not more than a year are classied as current investments. All other investments76