Maulik Dlink Finance

8/8/2019 Maulik Dlink Finance

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PREFACE

Finance is regarded as a blood of business organization. Financial Managementis concerned with the efficient use of animportant economic resource.

Financial Management is an importantorgan of the Management. Without FinancialManagement the body of Management isworkless.

As a student of Business Administration Iget an opportunity to make a report onVoltas Limited in the area of finance. I get

practical knowledge about finance which isdifferent form theories.


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ACKNOWLEDGEMENTIt is great pleasure to me to get an

opportunity to prepare a project report in thefinance area.

I am really thankful to faculty andDharmsinh Desai University which providestheoretical as well as practical knowledge tous.

I am thankful to our Director Mr. G. S.Shah and also hardly thankful to our Mr.Rajan(Prof) under her kind guidance I makemyself to prepare this report.

I am extremely thankful to my parentswho provide me all possible help.

Last but not least, I would like to thank allthose persons who directly or indirectlyhelped me to prepare this report.

Patel Maulik.A..123SY BBA


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INDEX

1) Company Profile

2) Result of operation

3) Ratio Analysis and Interpretation

4) Directors Report

5) Auditors Report

6) Cash flow statement

7) Common size statement

8) Accounting Policies

9) Conclusion


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Company Profile

Name of Company:

D.Link India Limited Address: D.Link House

Bandra Kurla coplex road,Plot No:5C.S.T Road.

Santacruz (E)Mumbai 400098.

Registered Office:

L-5, verna electronics city,Verna plateau,Goa 403722.

Software and R and D center# 10-A, Kiadb industrial area,

Electronic city, Phase 2,Konappan agrahan (Po)Banglore-560100

Regional branch of company- Chandighar- New delhi- Jaipur- Luckhnow- Guwahati

- Ahemadbad


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- Indore- Jamshedpur- Kolkatta

- Mumbai- Pune- Cohin- Chennai- Banglore- Goa

Networking (Active)Broad band wireless networking

network security LAN swithing Routers peripheral shaaring surucillance

storage IP telephone digital home.

Networking (passive)

Copper range:- Digi-link r200(cat5t)- Digi-link p350(cat6)- Digi-link p500(cat6t)- Digi-link p800(cat6a)

Fibre Range:

- opti-link p500(multimode)- opti-link p800(multimode)- opti-link pu (single mode)

Board Of director:

K.R.NaikJangoo.palal


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Pattraj salgaocarTony Tsao

A.P.chen

R.T.krishnanPankaj BaligaK.M.gaonkarPradeep rana

Name of senior managerial person :

MR.C.M.gaonkar* MR.J.V.auadhanulu# MR.Nitin Kunkolienker MR. Vijay Rane MR. S. Arvindan* MR. Shridhar Kadam MR. Tushar sighat*

Executive director:

-Mr K.R.Naik (Executive chairman)-Mr jangoo Dallal (M.D. And C.E.O)

Name of non Executive director

-Mr K.M gaonkar-Mr Tony Tsao-Mr DuttaRaj Salgaocor-Mr pankaj baliga-Prof.R.T.Krishnan


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Result of Operations:

2007-08 2006-07

Turn OverIncome for serviceProfit before depn and taxLast depn for the yrProfit before taxs explanationAdd:expentional Item (Net)Profit before taxLess: Provision for taxA)Current taxB)deferred taxC)Fringe benefits tax

Profit after taxAdd/Less: Tax adjustmentNet ProfitBalance of profit brought forwardAmountavailable for appropriationTransferred to GRDividendTax on Dividend

B/F to balance sheetEarning per share (Rs)

2945.0684.32451.8874.61377.264.45381.71

104.62(13.32)5.06

285.34-285.341123.731409.0729.0060.0010.20

1309.869.51

3057.9924.80343.8676.33267.53-267.53

52.50(0.1)3.19

211.947.93219.27996.681215.9422.0060.0010.201123.73

7.31


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Total Turnover for Structure ClimbingSystem

0

2040

60

80

100

120

140

160

2007-082006-07

Ratio Analysis


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Meaning of Ratio:The Comparison between two or more

variables. It can be represented as

percentage (%), Oblique (/), times,isto (:).

A ratio is customarily expressed inthree different ways. It may beexpressed as a proportion between twovariable. E.g If the current asset aretwice then current ratio is 2:1.Second way is to percentage. E.g Therate on return on capital employed isto express the ratio as rate forexample stock turnover is six times ayear.

Importance of Ratio:

The use of ratios was started bybanks for ascertaining the liquidityand profitability of companiesbusiness for the purpose of advancing

loans to them.

1.Profitability:

The trend of profitability isavailable from profitability ratios.The gross profit ratio, net profitratio and ratio of return oninvestment give a good idea of the


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profitability of business, Themanagement gets an idea about theoverall efficiency of managers and

bank as well as other creditors drawuseful conclusions about repayingcapacity of the borrowers.

2.Liquidity:

The current ratio, liquid ratio andacid-test ratio will tell whether thebusiness will be able to meet itscurrent liability as and when theymature. Banks and other lenders willbe able to conclude from these ratioswhether the firm will be able to payregularly the interest and along withinstallments.

3.Efficiency :

The turn over ratio are excellentguides to measures the efficiency ofmanagers, E.g the stock turnover willindicate how efficiently the sale is

being made, the debtors turnover ofcollection department and assetsturnover shows the efficiency withwhich the assets are used in business .

4.Inter-firm Comparison :

The absolute ratio of firm are notof much use, unless they are compared


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ratio of return on investment willguide the management.

Ratios of D-Link Limited.

A. Profitability Ratio:-

1.Gross Profit Ratio:Meaning:

The gross profit ratio measures thegross earning of the company to itsnet sales. If the ratio is less itsshows the inefficiency of company. The

gross profit ratio is expressed inpercentage(%).

Formula:

Gross profit Ratio =Gross profit *100


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Net Sales

2006-07= 590287431.50 *1002831177450.00

=20.85%

2007-08= 758494276 *100

2913841480

=26.03%

Graph and Table:Year Percentage2006-07

20.85

2007-08

26.03


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0

5

10

15

20

25

30

2006-07 2007-08/

Percentage

Interpretation:

In this ratio of Gross profit thecompany for the year 2006-2007 is26.03% it means when companys salesof Rs 100, gross earning of Rs 20.85%and 26.03 for the year 2006-2007 and

2007-08 respectively is available fromwhich operating expenses of businessare to be recovered. Gross profitratio in the year 2007-08 is increasedat 20.85% and 26.03%.

The conclusion the ratio is found that

the companys progress is extendingeveryday.

2.Net Profit Ratio :


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Meaning:

Net profit ratio is useful to

measure the overall performance of thebusiness and efficiency of the companyto earn amount on net profit on netsales.

Formula:

Net profit ratio=Net profit*100

Net Sales

2006-07= 219272323 * 100

2831177450

=7.74%

2007-08=287340512 * 100

2913841480

=9.86%


7.74

2007-8 9.86


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0

2

4

6

8

10

2006-07 2007-08

Percentage

Interpretation:The net profit ratio of the company

in the year 2006-07 is 7.74% and inyear 2007-08 9.86%. It means that thecompany is making the net profit ofRs.7.74for sales of every Rs.100 in2006-07. And the net profit of Rs.9.86for net sales of every Rs.100in 2007-08. It shows that the current yearsnet profit increased by Rs.2.12 whichshows better profitability of thecompany as compared to last year.


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5.Return on Shareholder Fund: Meaning:

It is a profitability of businessfrom the viewpoint of shareholders ascompare to their investment. Return onshare holders ratio expressed inpercentage(%).

Formula :Return on shareholders fund

=Net profit after tax *100Shareholders fund

2006-07= 219272323*100197294386

=11.11 %

2007-08=13.21 %


11.11 %

2007-

08

13.21 %


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10

10.5

11

11.5

12

12.5

13

13.5

2006-07 2007-08

Percentage

Interpretation:The ratio of year 2006-07 & 2007-08

are 11.11% & 13.21% respectively. Itshows that the shareholders earn11.11% Rs. for their investment in

year 2006-07 which increase in year2007-08 is Rs.13.21. This is good forcompanys shareholders and also forthe companys reputation in themarket.


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7.Earning Per Share: Meaning:

Earning per share measures theearnings available to the equity

Shareholders as compare to theirinvestment made per share.

Formula:Earning per Share=Profit after Tax Preference Dividend

Number of equity shares

2006-07=219272323.00

30004850.00=7.31 Rs 2007-08=287340512

30004850.00 = 9.58 Rs


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Graph and Table:Year Amount(Rs)2006-

07

7.31

2007-08

9.58

0

1234

56

78

910

2006-07 2007-08

Rs

Interpretation:Earning per share ratio measures

the earning of the equity shareholdersas compared to investment made on eachshare. Here the ratio of 2006-07is7.31 Rs. and ratio of 2007-08is 9.58Rs. It shows that if the face value ofone share is Rs.10 then shareholdersgets Rs.7.31 in year 2006-07 andRs.9.58 in year 2007.08.


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9.Stock Turnover Ratio:Meaning:

Stock turnover ratio represents theturnover of stock done during a year.Higher the ratio found better for thecompany. Stock turnover ratio isexpressed in times .

Formula:

Stock Turnover Ratio=Cost of Goods*100Cl Stock

2

006-07=2240890018.50 * 100328766509

=6.82times

2007-08=2155347204 * 100

339037996

=6.36 timesGraph and Table:


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Year Times2006-07

6.82

2007-08 6.36

66.16.26.36.46.56.66.76.86.9

2006-07 2007-08

Times

Interpretation:

In the company there is a stockturnover ratio of year 2006-07 is6.82times and ratio of year 2007-08 is6.36 times. It means ratio is decreaseby 0.46 times during the current yearwhich is not good for the company.


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10.Debtors Turnover Ratio:Meaning:

Debtors ratio shows the number oftimes the rotation of debtor cycle isdone during a year. The ratio showsthe number of days taken to collectthe dues of credit sale. The lower theratio good for the Company.

This ratio is also known as averagecollection period or debtors days ordebt collection period.

Formula:Debtors Turnover Ratio

=Debtors + Billreceivable*365

Credit Sales 2006-07=2831177450 * 365

492953947

=63.55days


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2007-08=2913841480 * 365585733496

=73.37days

Graph and Table:Year Days2006-

07

63.55

2007-08

73.37

58

60

62

64

66

68

70

72

74

2006-07 2007-08

Days

Interpretation:

Debtors velocity ratio of the year2006-07 and 2007-08 are 63.55 and

73.37 days respectively. It shows thatthe debtor cycle or average collection


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is made in 63.55 days in year2006-07while in year 2007-08 the averagecollection period is 73.37 days. This

means that the average collectionperiod has increased from 2006-07 to2007-08 by 9.82 days. So, this ratiodoes not show the satisfactoryposition of the company.

11 . Creditors Turnover Ratio: Meaning:

Creditors velocity ratio shows thenumber of days within which companymake payment to the creditor. Itmeasures the number of times therotations of creditors cycle is doneduring a year.

This ratio is also known as averagepayment period or creditors days orcredit payment period.


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Formula:Creditors Velocity Ratio=Credit Purchase

Creditors + Bills Payable

2006-07=994737802303146973

=3.28times

2007-08=1555753192433236329

=3.59 times


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3.1

3.2

3.3

3.4

3.5

3.6

2006-07 2007-08

Times

Interpretation:

The creditors ratio of the year2006-07 and 2007-08 are 3.28 and 3.59respectively. It shows that the thereis a increase in ratio by 0.30 which

is good for company also the creditorvelocity ratio has changed to 101.64up to 111.23 days in current years andit is good for company


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2007-08=1123092544

597999431

=1.88 : 1

Graph and Table:Year Times2006-07

2.22:1

2007-08

1.88:1

1.7

1.8

1.9

2

2.1

2.2

2.3

2006-07 2007-08

Times

Interpretation:The companys current ratio of

year2006-07 is 2.22and in year 2007-08is 1.88 times. This ratio shows whenat Rs. 1 liability of the company thenexcess of assets is 2.22 in year 2006-07 and 1.88 in year 2007-08. The ratiois decreased in year 2006-07 as


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compared to 2006-07. It means thatthere is decline in current assets andincrease in liability which is not

good for the company.

14.Liquid Ratio:Meaning:

Liquid ratio measures the liquidposition of the Company to pay off itsdebt within very short period ascompared to it liquid assets. Ideal

liquid ratio is 1:1 .Liquid assets can be obtained bydeducting stock and prepaid expensesfrom current assets.

Liquid liability can be obtained bydeducting bank overdraft from currentliability.

Formula:


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Liquid Ratio= Liquid assetsLiquid Liabilities

2006-07=650077624430582642

=1.51: 1

2007-08=784054548

576158351

=1.36: 1

Graph and Table:

Year Times2006-07

1.51:1

2007-

08

1.36:1


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1.25

1.3

1.35

1.4

1.45

1.5

1.55

2006-07 2007-08

Times

Interpretation:This ratio shows the liquid

position of the company. The liquidratio of the year 2006-07 is 1.51 andin year 2007-08 is 1.36. The idealratio is 1:1. According to, liquidratio it is higher than the idealratio. It means company having a goodand satisfactory level.


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Year Times2006-07

0.13:1

2007-08 0.08:1

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

2006-07 2007-08

Times

Interpretation:

The quick ratio of the company ofthe year 2006-07 is 0.13 and of year2007-08 is 0.08. It shows that howmuch quick funds are available to payoff quick liabilities. The standardquick ratio is 0.5:1. Here, the quick

ratio of current year is less thanstandard ratio, it means company hasinsufficient quick assets to pay outits quick liabilitie.


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16.Proprietary Ratio: Meaning:

The proprietary ratio is measurethe proportion of contribution made bythe propriety as compare to the totalassets of the business. This proprietyor Shareholders Fund consist of Sharecapital and reserve and surplus. Thisratio can be measured in percentage.

Formula: Proprietary ratio= Proprietary fund

Total assets

2006-07=972943896 *1002418528240

=0.82

2007-08=21743839802774972064

=0.78

Graph and Table:

Year Percentages2006-07 0.82 %2007-08

0.78%


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0.76

0.77

0.78

0.79

0.8

0.81

0.82

2006-07 2007-08

Percentage

Interpretation: The higher the ratio, the stronger

the financial position of the companyas it signifies that the proprietorshave provided larger funds to purchasethe assets. The current years ratio

is 0.78 it means the company usesoutside funds. This ratio cannotexceed 100%. If it is 100% then itmeans that the business uses onlyproprietors funds and not outsidersfunds.

17.Debt Equity Ratio:


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Meaning:Debt equity ratio measures outsiders funds

as compared to owners funds. It means debt ismeasures with equity its ideal ratio is 1:1.

Debt include outsiders fund (Debenture +Long Term Borrowing + secured and unsecuredloans.)

Equity includes share capital, equity sharecapital + Owners fund (All reserve and surplusfictitious assets.

Formula:

Debt equity ratio= Debt

Equity

2006-07=52063271972943896

=0.003:1 2007-08=2618553

2174353980

=0.001:1

Graph And Table

Year Times2006-07 0.003:12007-08 0.00:1


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0

0.0005

0.001

0.0015

0.002

0.0025

0.003

2006-07 2007-08

times

Interpretation:

The ratio of the year 2006-07 and2007-08 are 0.003 and 0.001 timesrespectively. It means the debt is Rs.

0.003 for every 1Re. in year2006-07and 0.001 Rs. for every 1Re. in year2007-08. It means the ratio hasdecreased in current year as comparedto previous year.

18. Capital Gearing Ratio:Meaning:

This ratio expresses theproportion of preference capital andordinary capital. This ratio should be lower. It includes

funds bearing fixed interest and charges.


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Formula:

Capital Gearing Ratio=Fixed interest bearing capitalOrdinary Capital

2006-07=5106327

1972943896

=0.003:1

2007-08=2618553

2174353980

=0.001:1

Graph And Table

Year Times

2006-07 0.003:1

2007-08 0.001:1


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0

0.0005

0.001

0.0015

0.002

0.0025

0.003

times

Interpretation:

In these ratio the company capitalyear 2006-07 is 0.003 and in year2007-08 is 0.001.The ratio indicatethe higher ratio the more unstablewill be the ordinary share.


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Directors Report

Directors have pleasure inpresenting their report and auditedaccounts of the company for the yearended march 31, 2008

Business Performance:During the year company set up global

Engineering service center the totalrevenue from the engeering servicefrom thecenter in the financial year2007-08 your company achived aturnover of is 2945.06 million ascompared to Rs 3051.99 million in theprevious year.product has groan by16.21% to Rs 2534.09 million in theprevious year. Income for service grewfromRs 24.80 million in the previousyear to Rs 84.32 million in thecurrent year. Dividend:-

Dividend has been divided at therate of Rs 10 per equity sharefor theyear ended march 2008


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Responsibility Statement:-

The applicable accounting standardshave been followed in preparation offinal accounts and there are nomaterials departuresSuch accounting policies have beenselected and applied consistencymade are reasonable and prodent soas to give a true and fair view of

state of affairs of companys profitof companys accounting year endedon march 2008

Foreign Exchange:-

Total foreign exchange earning s and out gois stated in the notes forming parts of theaccounts Research & Development:-

Transfer of technology initiated forKaplan or software equipment andcontrol.


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AUDITORS REPORT:-They have conducted their audit inaccordance with the auditingstandards generally accepted inIndia. Those standards require thatthey have plan and perform the auditto obtain responsible assuranceabout the financial statement arefree of material misstatement. Anaudit includes examining on the test

basis, evidence supporting theamount and disclose in the financialstatement.

As required by the company order2003 issued by the centralgovernment in terms of section 227

of the companys act 1956. they havein closed in the annexure asstatement on the matter specified inparagraphs hands of the said order.

Comments in the annexure referred


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They have obtained out theinformation and theexplanation which to thebest of their knowledge andbelief were necessary forthe audit. In theiropinion, Proper books ofaccount as required by lawhave been kept by thecompany so far as appearsfrom their examination ofbooks .

The balance sheet, Profitand loss account and cashflow statement seek with bythis report are inagreement with books ofaccounts.In their opinion, the

balance sheet P And L andcash flow statement withthis report are comply withthe accounting standardsreffered to in sub-section(3c) of section 211 of the

companies act, 1956.


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In the manner so requiredand give a true and fairview in company withaccounting principlesgenerally accepted inIndia.

In the cash of the balancesheet of the state of thecompany as act 31 st march,2008.

In the cash of the profitand loss account of theprofit for the year endedon the date.

In the cash flow statementof the cash flow for the

year ended on the date.

CASHFLOW STATEMENT

Meaning:-


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Cash is the most liquid asset of abusiness. All business transactionsare ultimately results into cash

inflow or cash outflow. Hence, astatement that shows a cash flow isconsidered to be an important one. Itcan be said that cash is both thebeginning and the end of the businessoperations. The business should havesufficient cash on hand so that theliabilities can be paid as & when theyfall due. The cash on hand should notbe excessive; otherwise the cash wouldremain idle, reducing the overallprofitability. The fund flow statementshows the changes in the net workingcapital, while the cash floe statementshows the inflow and outflow of cashonly. The statement shows the amountof cash received due to eachtransaction of the business and cashpaid. The total cash inflow is addedto the opening balance of cash and thetotal cash outflow is deducted therefrom. This gives the final cash

balance.

Importance:-

(1)Efficient Cash Management:-


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If the finance manager has clearidea of cash receipts and paymentsthen cash resources can be efficiently

managed. Excess cash found at anytimes may be profitable invested forthe time being and profitability isincreased.

(2)Useful For Internal Financial Management:-

The management can plan out paymentof dividend, repayment of long termloans, purchase of machines orequipment etc. If it has good ideaabout the timing when enough cash willbe on hand. This will avoid thepossibility of borrowing funds athigher rate of interest.

(3)Information About Cash Receipt And Payments:-

Such a statement will giveinformation about the trend of cashreceipt and payment. Such information

is useful to the management in meetingany future contingencies and alsoseizing any profitable opportunity.

(4)Useful For Control:-The historical cash flow statement

prepared for last year is useful for

comparing the figures of cash budgetsand points of difference may be


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located this facilitates managerialcontrol on the use of cash.

(5)Ease In Obtaining Funds:-By comparing the figures of cashflow statement and cash budgets, thecash planning and control becomes moreeffective. In turn this facilitatesraising of additional fund easily whenneeded.

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 ST

MARCH,2007Schedule Rs in

Lacs 2007Rs. in

Lacs 2006 A. Cash flow

from operatingactivitiesProfit beforetax

381709355 267533354

Adjustment for:

Depreciation 74614038 76331522(Profit)loss onsale of fixedassets

(1662465) 8083836

Loss on sale offixed assets

36965308 -

Loss on sales oflongterm

57307739 -


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invt(trade)Provision fordimination in

value of currentinvt (non-trade)

2991860 225888

Provision fordimination invalue of longterm invt[trade]

- 4799900

interestinfinance charge 5398402 4731410Provision forqratuing

1282603 (1166198)

Provision forleave encashment

2017053 179530

Unrealizedexchangedifference

(5110013) (3101276)

Dividend income (51688393)

(20058782)

Provision fordoubtful debts

(17547363)

(6936009)

Provision fordimination invalue of currentinvest(non-trade)

(345494) (503074)

Provision fordimination invalue of current

invt written

(829930) -


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backProvision fordoubtful debts

and ad

20435227 8429845

bed debtswritten off

11731705 16700349

Sundry debtorswritten back

(7966702) (9621520)

Sundry balancewritten off

10694297 4603086

Profitonsale of currentinvt(non trade)(net)

(15031490) (10154406)

Operating profitbefore workingcapital

495889153 337306523

(Increase)/decrease in tradereceivable

(106962608) 124152159

(Increase)/decrease ininventories

(10271487)

118833080

(Increase)/decrease in loan andadvance

(60298150)

2631776

(Increase)/decrease in trade andother payable

153502164 (126993415)

Cash gence rated

from operation

472129072 479690123


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Direct taxespaid

(100411703)

(44125096)

Net cash from

operating ac

371717364 103556503

7Cash flows from investingactivitiesPurchased offixed assts

80556463 92086690

Purchased of

investment

546942150

7

489238126

Loan tosubsidiary

100000 14194

Sales of fixedassets

8022192 9748826

Sales ofinvestment

5182450921

4620403321

Repayment ofloans bysubsidary

100000 14194

Dividendrecieved

51688393_ 20058782

Interst recieved 5037534 3032285Net cash (usedin)investingactivities

302778930 331224739


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Table Of Ratios:

Particulars 2006-07 2007-08

1 Gross Profitratio

20.85% 26.03%

2 Net profitratio

7.74% 9.86%

3 Return on

shareholdersfund ratio

11.11% 13.21%

4 Return onequityshareholdersfund ratio

11.11% 13.21%

5 Earning per

share

7.31Rs. 9.58Rs.

6 Dividend pershare

0.00Rs. 0.00Rs.

7 Debtorsturnover ratio

63.55days 73.37days

8 Creditorsturnover ratio

111.23times 101.64times

9 Current ratio 2.22:1 1.88:110 Liquid ratio 1.51:1 1.36:111 Quick ratio 0.13:1 0.08:112 Proprietary

ratio0.82% 0.78%

13 Debt Equityratio

0.003:1 0.001:1


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14 Capital gearingratio

0.003:1 0.001:1

COMMON SIZE STATEMENT OFBALANCE SHEET

Particular Sch. No.

2007-08 2006-07

Sources ofFundsShareholdersFund

1 500000 500000

CapitalReserve &Surplus

2 955379 1092177

Loan FundsunsecuredLoans

3 - 96973

Deferred taxliability net

595983 592587

Total 2051362 2281737

Applicationof Fund

Fixed Assets 4


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Gross block 4364635 4311085--Less Dep. 1907080 1039156Net block 2457555 3271929

Capital workin progressTotal 2457555 3271929Investment 5Currentassets, loansand advances

Inventories 6Sundrydebtors

7 111468 1106750

Cash and bankbal.

8 18768 52978

Loans andadvances

9 389161 120748

Total 519396 1280476LessCurrentliability andprovisions.

Currentliability

10 913284 2256298

Provisions 11 12305 14370Total 925589 2270668

Net currentassets

406193 9901921

Total 2051362 2281737


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COMMON SIZE STATEMENT FOR PROFIT & LOSS A/C

Particular Sch.No.

2007-08 % 2006-07 %

IncomeTrainingincome

2893107 3868922

Otherincome

3772 -

Total 2896879 3868922Less

:Expenditure

Manu. &other exp.

2146250 1433641

Depreciati

on

867924 845467


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Interest 4422 92130Total 3018596 2371238Profit

beforeexceptional itemsand tax

121717 1497684

Provisionfor tax

16858

Deferred

tax

3396 451190

Fringebenefittax

11685 11725

Profitafter tax

136798 866189

Surplusbroughtforward

1092177 225988

Amountavailableforappropriation

955379 1092177

APPROPRIATION

955379 1092177

Basic anddullitedearningper share

2.74 17.32


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Accounting Policies

(1) Fixed assets:-Fixed assets are recorded at cost

of acquisition or construction. Theyare stated at historical cost lessaccumulated depreciation andimpairment loss, if any.

(2)Depreciation:-Depreciation on fixed assets is

provided on the straight-line basis inaccordance with the Companies Act,1956. (refer note 4 of schedule 17).

(3)Impairment loss:-Impairment loss is provided to the

extent the carrying amount(s) ofassets exceed their recoverableamount(s). Recoverable amount is thehigher of an assets net selling priceand its value in use. Value in use isthe present value of estimated futurecash-flows expected to arise from the


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continuing use of the asset and fromits disposal at the end of its usefullife. Net selling price is the amount

obtainable from sale of the asset inan arms length transaction betweenknowledgeable, willing parties, laysthe costs of disposal.

(4)Investment:-Long terms investment are carried

at cost. Provision is made torecognize a decline, other thantemporary, in the carrying amount oflong-term investments.

(5)Inventories:-Items of inventory are valued at

cost or net realizable value, whichever is lower. Cost is determined onthe following basis:

A. Raw materials, stores and sparesWeighted average

B.Process stocks and finished goodsAt material cost plus

appropriate value of overheads

C.Trading goodsFIFO

(6)Retirement and other employee benefits:-

A. Contributions are made towardsProvident fund, family pension

fund and superannuation fund, whichare defined contribution schemes.


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Liability in respect thereof isdetermined on the basis ofcontribution as required under the

statute/rules.

B. Gratuity liability, a definedbenefit scheme, and provision forleave encashment is accrued andprovided for on the basis ofactuarial valuations made at theyear end.

(7)Foreign currency transactions:-Transactions in foreign currency

(including those related toacquisition of fixed assets fromoutside India) are recorded at theoriginal rates of exchange in force atthe time the transactions areeffected. At the year-end, monetaryitems denominated in foreign currencyand forward exchange contracts arereported using closing rates ofexchange. Exchange differences arisingthereon and on realization/ payment of

foreign exchange are accounted, in therelevant year, as income or expense,except in respect of liabilitiesincurred in foreign currency foracquiring fixed assets from outsideIndia, in which case, these areadjusted in the carrying amounts of

respective fixed assets.


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In case of forward exchangecontract, or other financialinstruments that are in substance

forward exchange contracts, thepremium or discount arising at theinception of the contracts isamortized as expense or income overthe life of the contracts. Gains/losses on settlement of transactionarising on cancellation/ renewal offorward exchange contracts arerecognized as income or expense.

(8)Borrowing costs:-

Borrowing costs that areattributable to the acquisition,construction or production ofqualifying assets are capitalized aspart of the cost of such assets. Aqualifying asset is one thatnecessarily takes a substantial periodof time to get ready for its intendeduse. All other borrowing costs arecharged to revenue.

(9)Revenue recognition:-Revenue (income) is recognized

when no significant uncertainty as toits determination or realizationexists.

(10)Taxes on income:-


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Tax expense comprises both currentand deferred tax at the applicableenacted/ substantively enacted rates.

Current tax represents the amount ofincome tax payable/ recoverable inrespect of the taxable income/ lossfor the reporting period. Deferred taxrepresents the effect of timingdifferences between taxable income andaccounting income for the reportingperiod that originate in one periodand are capable of reversal in one ormore subsequent periods.

(11)Provisions and contingencies:-A provision is recognized when the

company has a legal and constructiveobligation as a result of a pastevent, for which it is probable thatcash outflow will be required and areliable estimate can be made of theamount of the obligation. A contingentliability is disclosed when thecompany has a possible or presentobligation where it is not probable

that an outflow of resources will berequired to settle it. Contingentassets are neither recognized nordisclosed.


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In case of liquidity ratiocompanys current ratio and quickratio are satisfactory, but the liquid

ratio is very good, therefore we cansay that the over all performance ofthe D-Link project limited s betterin current year as compared toprevious year.

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Maulik Dlink Finance