1 ACCOUNTING ASSUMPTION
The financial statements are drawn up in accordance with the historical
cost convention on accrual basis and comply with the accounting
standards referred to in Sec,211 (3C) of the Companies Act, 1956.
2 FIXED ASSETS
The excess of Equity Shares issued to the Shareholders of Nicholas
Piramal (I) Limited over the cost of investment in Equity Shares of
Gujarat Glass Limited (Erstwhile Gujarat Glass (P) Ltd.)is debited to
Goodwill account under Fixed Assets. Following Accounting Standard -
ASH Accounting for Amalgamation, Goodwill is amortized over a period
of five years.
Investments are classified as long-term investments and are stated at
4 REVENUE RECOGNITION
Interest income is accounted on accrual basis. Dividend income is
accounted on receipt basis.
A Current Tax
Provision for Current income tax liability is made on estimated taxable
income under Income Tax Act, 1961 after considering permissible tax
exemptions, deductions and disallowances.
B Deferred Tax
Deferred tax resulting from timing difference between book and tax
profits is accounted for under the liability method, at the current
rate of tax to the extent that the timing difference are expected to