C2-Sewage Pumps DN 32 to DN 600 - 2008.pdf

Reliance Lifestyle Holdings Limited17Schedules forming part of the Balance SheetSCHEDULE N (Contd.)10 TurnoverTurnover includes sale of goods, service and service tax, adjusted for discounts (net) and Value Added Tax (VAT), if any.11 Employee Benefitsi) 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.ii) Post employment and other long term employee benefits are recognised as an expense in the Profit and Loss Accountfor the year in which the employee has rendered services. The expense is recognised at the present value of the amountspayable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment andother long term benefits are charged to the Profit and Loss Account.12 Provision for Current and Deferred TaxProvision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-taxAct, 1961. Deferred tax resulting from “timing difference” between taxable and accounting income is accounted for using thetax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognisedand carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.13 Provision, Contingent Liabilities and Contingent AssetsProvisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as aresult of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognisedbut are disclosed in the notes.Contingent Assets are neither recognised nor disclosed in the financial statements.14 Miscellaneous ExpenditurePreliminary and Issue Expenses incurred are amortised over a period of 5 years.SCHEDULE ONOTES ON ACCOUNTS1 The previous year’s figures have been regrouped, rearranged and reclassified wherever necessary. Accordingly, amounts andother disclosures for the preceding year are included as an integral part of the current year financial statements and are to be readin relation to the amounts and other disclosures relating to the current year.2 The Company is mainly engaged in ‘Organised Retail’ in India. All the activities of the Company revolve around this mainbusiness. Accordingly, the Company has only one identifiable segment reportable under Accounting Standard 17 “SegmentReporting”, notified in the Companies (Accounting Standards) Rules 2006.3 Turnover Include Income from Services of Rs. 49 63 500 (Previous year Rs.1 95 14 222).4 The Company is in the process of setting up various facilities for conducting its business. The expenditure incurred during theimplementation period for bringing the Project in the condition of its intended use, is treated as “Project DevelopmentExpenditure” pending capitalisation and included in Capital Work-in-Progress. Capitalisation is done in the ratio of phasedimplementation. The necessary details as per Part II of Schedule VI to the Companies Act, 1956 have been disclosed below: