annual report - Jindal Group of Companies

h. Revenue RecognitionRevenue is recognized in accordance with Accounting Standard (AS-9) "Revenue recognition" on the basis of rendering ofservices to customers in accordance with the respective Contracts / Agreements.Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.i. Employee Benefits(a)(b)(c)Short term employee benefits are recognised as an expense at the undiscounted amount in the profit and loss accountof the year in which the related service is rendered.Post employment and other long term benefits are recognised as an expense in the profit and loss account for the yearin which the employee has rendered services. The expense is recognised at the present value of the amounts payabledetermined using actuarial valuation techniques at the end of Financial Year. Actuarial gains and losses in respect ofpost employment and other long term benefits are charged to the profit and loss account.Payment to defined contribution retirement benefit scheme, if any, are charged as expenses as they fall due.j. Foreign Currency Transactions(i)RecognitionInternational Transactions are recognised on the basis of International Commercial principles in regard to thosetransactions wherever applicable. Foreign currency transactions during the year are accounted for in the reportingcurrency at the exchange rates prevailing on the date of the respective transaction in accordance with the RevisedAccounting Standard 11 ( read with the notification no. GSR 225 (E) dated 31-3-2009) for "The Effects of Changes inForeign Exchange Rates".(ii)ConversionAll monetary assets and liabilities remaining unsettled at the year-end are translated using the year end exchange rates.Any income or expenses on account of exchange difference either on settlement or on translation is recognised in theprofit & loss account except exchange differences arising on foreign currency monetary items relating to acquisitionof fixed assets, which is adjusted to the carrying amount of such assets.(iii) Non-monetary items are carried at cost.(iv) Forward Exchange ContractsIn case of forward contracts taken for underlying transactions, the exchange differences are dealt-with, in the Profit &Loss Account over the period of the contracts. All derivative contracts including forward contracts, other than thosecontracts covered under AS-11 (The effect of change in foreign exchange rates), are recognised pursuant of theannouncement of Institute of Chartered Accountants of India and other appropriate authorities. Accordingly these aremarked to market on balance sheet date and shortfall if any, is recognised in the profit & loss account.k. Borrowing CostBorrowing costs directly attributable to the acquisition or construction of the qualifying assets are capitalised as a part ofthe cost of asset up to the date when such asset is ready for its intended use. Other borrowing costs are recognised as anexpense in the period in which they are incurred.l. Taxation:Current Tax:Provision for Taxation is ascertained on the basis of assessable profit computed in accordance with the provisions of IncomeTax Act, 1961 & tax advices, wherever considered necessary.47