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SUMMER TRAINING PROJECT REPORT
APPLICATION OF ACCOUNTING STANDARDS IN AIR
LIQUIDE
Submitted in partial fulfillment of the requirements of
Master of Business Administration (MBA)
Kurukshetra University, Kurukshetra
Training Supervisor: Submitted By:
Mr. Gaurav sachdeva Name of Student:
HUNNY GARG
Designation MBA: 3rd Semester
Roll. No:45
Department of Management Studies
NC College of Engineering
Irena, Panipat
SESSION 2009 2011
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ACKNOWLEDGEMENT
I have been selected in Air Liquid north India pvt ltd. for my summer training. Air Liquid
is the world leader in gas industry.
Our first experience of project has been successfully, thanks to the support staff of
many friends & colleagues with gratitude. We wish to acknowledge all of them.
However, we wish to make special mention of the following.
First of all we are thankful of our project guide Mr. Srinivas prasad & Mr. Gaurav
sachdeva (HEAD OF FINANCE DEPARTMENT) of Air Liquid north India Pvt ltd. in
Delhi under whose guideline we were able to complete our project. We are whole
heartedly thankful to them for giving valueable time & attention & for providing us a
systematic way for completing our project in time.
We must make special mention of (Mr. Saurabh Garg), our project in charge for
their co-operation & assistance in solving a technical problem. We would thank to our
H.O.D. Mrs. Prerna dawar
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INDEX
SERIAL NO CHAPTER NAME PAGE NO
1
2
3
4
ABOUT COMPANY
INTODUCTION
HISTORY
STRATEGY INNOVATION
ENVIRONMENT
HIGHTECH
MISSION
ABOUTACCONTING
STANDARDS
APPLICBLE
ACCONTING
STANDARDS IN AIR
LIQUID
BIBLOGRAPHY
5
5
5
7
8
9
11
19
48
59
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CHAPTER-1
ABOUT AIR LIQUIDE
INTRODUCTION
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Air Liquid is the world leader in gases for industry,heakth and the environment.the group
offer innovative solutions based on constantly enhanced technologies and produces
Air gases(oxygen,nitrogen,argon,rare,gases)and many other gases including hydrogen
AIR LIQUIDE HISTORY
The turn of the 19th century was a major turning point in the race to modernity, when
nearly each day saw new technological advances.
Georges Claudes contribution to his century entailed a project to liquefy air in order to
separate its different components of oxygen, nitrogen and argon. After two years of
tireless perseverance and technical setbacks, he finally succeeded on May 25, 1902 indeveloping a new air liquefaction process.
The launch of the company was sealed with his partnership with Paul Delorme. On
November 8, 1902, a public limited company was constituted with a capital of 100,000
French francs subscribed by 24 shareholders. It was thus that Air Liquide, company for
the Study and Exploitation of Georges Claudes Processes, was born.
AIR LIQUIDE STRATEGY
For this reason, Air Liquide has developed anambitious strategy aiming at a long-term
growth. In a time of transformation for the world and its markets, the goal is to maintain
the momentum gained within the framework ofALMA, the strategic company program.
ALMA will thus enable the Group to hold its course for long-term development around
its five growth drivers that have maintained their potential: Energy, the Environment,
Health, High Tech, and Emerging Economies. Thanks to this, the Group will regain solid
footing on the path of sustained and lasting growth in tomorrows stabilized economic
environment.
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LONG TERM GROWTH STRATEGY
Energy
Contributing to a transformation within the energy industry
Energy is one of todays main issues. Increases in demand, notably in emerging
economies, have accelerated the depletion of fossil resources, which are damaging to the
environment when used in large quantities.
Environment
Preserving our atmosphere
Actively engaged in sustainable development, Air Liquide invests 60% of its Research
and Development (R&D) budget in solutions aiming to preserve the environment and
life.
Health
Preserving patient and improving his quality of life
Mature economies are seeing aging populations and an accompanying desire for
improved quality of life. This has led to an increase in demand for the Group products
and services in the Health field.
High Tech
Pushing the front line of progress
Developing more and more high tech fulfills two objectives: it improves everyday life via
more powerful, compact technologies that cost less; and it drives scientific progress and
knowledge advancement, to open new markets.
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Emerging Economies
Guiding the growth of new markets
Emerging economies are gas needs because of it industrial expansion. The Grouppoursuing its development there. Today, emerging economies amount to more than 80%
of the Group's opportunities portfolio.
AIR LIQUIDE INNOVATION
Innovating allows Air Liquide to open new markets, move its business forward by
creating new solutions for its customers, fully playing its role towards society. Today,
over a third of the Groups revenue is generated through applications that did not exist 10
years ago.
Anticipating the challenges of its markets and innovating allows Air Liquide to progress
and ensure its competitiveness in a way that is ever more respectful of life and the planet.
By doing so, the Group fully plays its role as world leader.
By combining its molecules and innovative applications, AirLiquide provides its
customers withtrue added value by improving the efficiency of their processes, making
their technologies progress and enabling them to open new outlooks in their core
businesses.
Discover "Exploring the Future" video : Innovation by Air Liquide
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ENVIRONMENT
Oxygen for cleaner combustion
To reduce industrial emissions, Air Liquide is developing combustion processes that use
oxygen rather than air.
Many industrial processes such as manufacturing glass, aluminum, steel must heat or
melt raw materials. They traditionally use combustion that combines a fuel (fuel oil,
natural gas) and air (21% oxygen and 78% nitrogen).
By replacing air with oxygen, oxycombustion makes it possible to limit nitrous oxide or
NOx emissions. These emissions, which are harmful for man and the environment, are
produced by the high-temperature reaction of the oxygen and nitrogen present in air.
Air Liquides researchers have developed specific burners, adapted to oxygen use. They
generate oxycombustion flames (2600C) that produce much more energy than air
combustion flames (1900C) and optimize the injection of oxygen into industrial
furnaces.
Using oxycombustion also make it possible to reduce the energy consumption of the
furnace. The cutting-edge expertise Air Liquide has developed is shown by over 800
patents in this field. To this date, 40% of technical glass furnaces have been converted to
oxycombustions filed and their NOx emissions have been divided by 30.
Today, this expertise allows our engineers to develop oxycombustion processes that will
enable CO2 emissions to be efficiently captured as they are released from industrial units
before being buried in the subsoil.
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Reducing CO2 emissions
Today, to preserve our environment, it is vital to develop, technologies that will allow the
reduction of CO2 emissions, a greenhouse gas. Air Liquide is actively participating in
these developments.
Everywhere in the world, power generation uses fossil fuels like coal, which emit CO2
which control is a major challenge in the preservation of the environment.
CO2 capture and storage are promising ways that consist in capturing industrial CO2
emissions as they are released from stacks, transporting them and burying them in the
Earths deep layers. In This technology reproduces what nature has been doing for
millions of years in natural CO2 deposits.
Generally, CO2 will be transported from its emission site to an appropriate site
appropriate one for its burial. This CO2 must be concentrated in order for the process to
be cost-effective and safe.
HIGH TECH
Our researchers and engineers have developed a unique expertise in gases under
exceptional conditions: very high pressure, very low temperatures and very high purity. It
has enabled them to develop innovative solutions, which drive knowledge and
technologies forward.
More efficient chips
To manufacturer increasingly efficient electronic components, the semiconductor
industry must constantly make the materials that compose them evolve.
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The Air Liquide R&D teams are developing patented molecules called advanced
precursors. Respecting our customers quality standards, and especially very high purity,
they make the chips of tomorrow ever more efficient.
Cryogenics: cold for space
Our teams are partners in unique projects to which they contribute their know-how in
very low temperatures. For example, they took part in the design of the cryogenic
systems of both Herschel and Planck satellites.
The LHC: at the heart of the worlds mysteries
At the CERN, they also played a major role in the conception of the LHC (Large Hadron
Collider), the worlds most powerful particle accelerator. It is cooled by means of a
system supplied by Air Liquide.
Nuclear fusion: the energy of the future
Over a longer term, these engineers are taking part in experimental projects on energy
transportation via superconducting cables and energy production through nuclear
fusion. By providing all their technological expertise, they will actively contribute to
design the energy solutions of tomorrow
.
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AIR LIQUIDE MISSION AND VISION
OUR AMBITION
In early 2008, the Group set out a clear vision: to be the recognized world leader in its
industry. Two years later, despite a damaged business environment, following an
unprecedented economic slowdown that affected the entire world, Air Liquide remains on
course for long-term development and reaffirms its ambition. Beyond size and revenue,
its leadership is evident in the vision shared by its entire workforce.
Our vision
Our activities lie at the heart of the most important challenges facing the planet. To meet
these challenges, Air Liquide develops innovative technologies and sustainable solutions,
optimizing the use of air and the planets natural resources, enabling progress and
preserving life.
Our mission
Anticipate the challenges facing our current and future markets worldwide and deliver
sustainable progress for our customers, employees and shareholders
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AIR LIQUIDE MANAGEMENT TEAM
Benot Potier
Chairman and CEO
Pierre Dufour
Senior Executive Vice-President
Jean-Pierre Duprieu
Senior Vice-President
Franois Darchis
Senior Vice-President
Jean-Marc de Royere
Senior Vice-President
Fabienne Lecorvaisier
Group Vice-President, Finance and Operations Control
Ron LaBarre
Group Vice-President,Large Industries World Business Line
Guy Salzgeber
Vice-President, Northern and Central Europe
Augustin de Roubin
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AIR LIQUIDE ETHICS
The Air Liquide Group holds to the highest standards in how it runs its activities,
especially in terms of respecting human rights, social rights and the environment.
Wherever Air Liquide operates, its subsidiaries are integrated into local cultures and
traditions while transmitting the Groups values through their action and local
commitment. Air Liquide respects laws and regulations, especially the rules of free
competition, and prohibits any form of corruption. Integrity, transparency, constant
calling into question, increased performance, through innovation and rigorous
management ,continuously inspire our behaviors and actions.
AIR LIQUIDE SUSTAINABLE DEVELOPMENT
A socially responsible firm
Developing the potential of the Companys men and women in their commitment to
common objectives.
A long term relationship
Creating value for shareholders by developing the Companys activity and performance
over the long term and communicating this performance in a transparent manner.
Corporate citizenship
Preserving life and the environment in the Groups operations and at its customers sites
with 36 % of the Groups sales generated by gas applications and services that help
preserve the environment, protect customer products and, in the healthcare sector, sustain
life.
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AIR LIQUIDE CORPORATE GOVERNANCE
The Board of Directors
The Board of Directors is comprised of twelve members appointed by the General
Shareholders Meeting, including five nationalities (German, English, Dutch,
American, French).
Board of Directors
The Board of Directors has 12 members of whom 9 are independent, and comprises
members with complementary experience and skills.
Board Committees
The Board has established three sub-committees: the Audit and Accounts Committee, the
Appointments and Governance Committee and the Remuneration Committee.
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AIR LIQUIDE SHARE PRICE
Share price
AIR LIQUIDE or GL Multimedia cannot be held responsible for inaccurate, delayed or
interrupted data, regarding the share price announced on its website.
Source : GL Multimedia
Air Liquide Data
opening price86.82
last price 89.33 17h39
change 3.43%
volume 1289985 shares traded (capital turnover: 113260460.60)
highest (day) 89.38
highest (year) 88.49lowest (year) 70.71
closing price 86.37
CAC40 Data
value3752.03
change 2.99%
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AIR LIQUIDE CHALLENGES
Air Liquide traditionally conferred autonomy on its subsidiaries and guaranteed top-notch
client service while seeking out innovative technology to ensure international
collaboration among its teams. In a decentralized group like ours, we quickly realized
web technologies were a way to improve the way we worked, while reducing
the impact of geographic distances, explained Jean-Francois Petrignani, Intranet/Internet
Project e-Business Manager for Air Liquide. But, our decentralized model also
presented challenges. In this case, it left room for a proliferation of different initiatives
Intranets and discussion forumsin addition to portals and videoconferences. They
became major inconveniences because we didnt unify our approach. We ended up being
counterproductive.
In 2000, Air Liquide assembled a teamreporting to the executive committeeto
consolidate the companys e-business initiatives. E-learning was one of our first points
of attack, but we soon realized that we needed a collaborative tool that everybody could
use, explained Petrignani. Following September 11, the search for a solution accelerated
as increased security measures following the attacks made travel more difficult. The e-
business team realized it needed to deploy a permanent, online meeting solution that
would overcome
the new travel-related constraints. The eventual solution needed to facilitate
communication throughout the organization, regardless of geography; increase
interactivity among the teams; be easy to use, eliminating virtual meeting room
reservations; provide full security and fast information flow; and, be quickly deployed for
the entire company
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AIR LIQUIDE FUTURE
Aside from the implementation of an ROI measurement tool, the Air Liquide e-business
team continues to promote the use of WebEx, with the support of convinced users the
current ambassadors for the solution. Our objective is for e-meetings to become a
reflex and that we increase its uses and applications, primarily for training. WebEx has a
specific solution but we are starting tests with our current set-up, particularly for certain
sales trainings.
Im sure that we are going to see an increase due in part to the corporate mandate to
reduce expenses. Secondly, those who have used WebEx are sure to tell those around
them of its efficiency and their satisfaction. I also know that WebEx will easily support
this increase because of the flexibility and performance of its worldwide
platform, concluded Petrignani.
AIR LIQUIDE FINANCIAL DATA
In millions of
euros 2004 2005 2006 2007 2008 2009
2009/20
08
publish
ed
%
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change
Revenue
9,428 10,435 10,94911,801
13,103 11,976 -8.6%
Net profit
(Group share) 780 933 1,002 1,123 1,220 1,230 =
Cash flow from
operating
(before change
in working
capital)
1,692 1,805 1,889 2,054 2,207 2,275 0.8%
Industrial capital
expenditure 901 975 1,128 1,359 1,908 1,411 3.1%
Industrial capital
expenditure/sales
ratio
9.6% 9.3% 10.3% 11.5% 14.6% 11.8%
Financial capital
expenditure
(acquisitions)
2,859 76 72 1,302 242 109
Return on equity
(ROE) 16.3% 17.2% 16.4% 17.7% 18.6% 17.2%
Return o n
capital employed
after tax
11.9% 11.7% 11.9% 12.3% 12.2% 11.6%
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CHAPTER -2
ABOUT
ACCONTING STANDARDS
INTRODUCTION OF ACCONTING STANDARD S
Written Document issued by Government OR Regulatory body
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In India issued by ICAI on 21st april 1977
Initiated by kumar Manglam Birla chairman committee of corporate governance
for financial disclosure
Also initiated by chairman person of nacas
OBJECTIVES
Standardise the diverce Acconting policies
Add the reliablity to the Financial statement
Eradicate baffling variation in treatment of acconting aspects
Facilitate inter-firm and inta-firm comparison
Accounting Standards in different Nations
IN India 32, Accounting Standards IAS under NACAS
As per International, there are 41 Acconting Standards called as IFRS
Adoped by 8 countries in the World
70 to 80 Countries planning to adhere IFRS
EVALUATION AND TYPES OF AS
Acconting Standards Initiated
AS 1 to AS 15 1975 to 1995
AS 16 to AS 29 2000 to 2007
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AS 30 to AS 32 Later part of 2007
LIST OF ACCOUNTING STANDARDS
AS 1 Disclosure of Accounting PoliciesAS 2 Valuation of Inventories
AS 3 Cash Flow Statements
AS 4 Contingencies and Events Occuring after the Balance Sheet Date
AS 5 Net Profit or Loss for the period,Prior Period Items and Changes in Accounting
Policies
AS 6 Depreciation Accounting
AS 7 Construction Contracts (revised 2002)
AS 8 Accounting for Research and Development
AS 9 Revenue Recognition
AS 10 Accounting for Fixed Assets
AS 11 The Effects of Changes in Foreign Exchange Rates (revised 2003),
AS 12 Accounting for Government Grants
AS 13 Accounting for Investments
AS 14 Accounting for Amalgamations
AS 15 (revised 2005) Employee Benefits
Limited Revision to Accounting Standard (AS) 15, Employee Benefits (revised 2005)
AS 15 (issued 1995)Accounting for Retirement Benefits in the Financial Statement of
Employers
AS 16 Borrowing Costs
AS 17 Segment Reporting
AS 18, Related Party Disclosures
AS 19 Leases
AS 20 Earnings Per Share
AS 21 Consolidated Financial Statements
AS 22 Accounting for Taxes on Income.
AS 23 Accounting for Investments in Associates in Consolidated Financial Statements
AS 24 Discontinuing Operations
AS 25 Interim Financial Reporting
AS 26 Intangible Assets
AS 27 Financial Reporting of Interests in Joint Ventures
AS 28 Impairment of Assets
AS 29 Provisions,Contingent` Liabilities and Contingent Assets
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AS 30 Financial Instruments: Recognition and Measurement and Limited Revisions to
AS 2, AS 11 (revised 2003), AS 21, AS 23, AS 26, AS 27, AS 28 and AS 29
AS 31, Financial Instruments: Presentation
Accounting Standard (AS) 32, Financial Instruments: Disclosures, and limited revision
to Accounting Standard (AS) 19, Leases
SOME OF THE ACCOUNTING STANDARDS ARE
STUDIED BELOW
ACCONTING STANDARD
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1
ACCONTIG STANDARD 1
Disclosure of accounting policies
The Standard deals with the disclosure of significant accounting policies followed in
preparing and presenting financial statements.
In the initial years, this accounting standard will be recommendatory in character. During
this period, this standard is recommended for use by
companies listed on a recognized stock exchange and other large commercial ,industrial
and business enterprises in the public and private sectors
Introduction
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1. This statement deals with the disclosure of significant accounting policies followed in
preparing and presenting financial statements.
2. The view presented in the financial statements of an enterprise of its state of affairs andof the profit or loss can be significantly affected by the accounting policies followed in
the preparation and presentation of the financial statements. The accounting policies
followed vary from enterprise to
enterprise.disclosure of significant accounting policies followed is necessary
ASSUMPTION
The following have been generally accepted as fundamental accounting assumptions:
All assumptions applicable on Air liquide
a. Going Concern
The enterprise is normally viewed as a going concern, that is, as continuing in operation
for the foreseeable future. It is assumed that the enterprise has neither the intention nor
the necessity of liquidation or of curtailing materially the scale of the operations.
b. Consistency
It is assumed that accounting policies are consistent from one period to another.
c. Accrual
Revenues and costs are accrued, that is, recognized as they are earned or incurred (and
not as money is received or paid) and recorded in the financial statements of the periods
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to which they relate. (The considerations affecting the process of matching costs with
revenues under the accrual assumption
are not dealt with in this Statement.)
The major considerations governing the selection and application of accounting
policies are:which is adopt by air liquide
a. Prudence
In view of the uncertainty attached to future events, profits are not anticipated but
recognised only when realised though not necessarily in cash. Provision is made for all
known liabilities and losses even though the amount cannot be determined with certainty
and represents only a best estimate in the light of available information.
b. Substance over Form
The accounting treatment and presentation in financial statements of transactions and
events should be governed by their substance and not merely by the legal form.
c. Materiality
Financial statements should disclose all material items, i.e. items the knowledge of
which might influence the decisions of the user of the financial
Disclosure of Accounting Policies
1. To ensure proper understanding of financial statements, it is necessary that all
significant accounting policies adopted in the preparation and presentation of financial
statements should be disclosed.
2. Such disclosure should form part of the financial statements.
3 It would be helpful to the reader of financial statements if they are all disclosed as such
in one place instead of being scattered over several statements, schedules and notes.
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4. Examples of matters in respect which disclosure of accounting policies adopted will
be required are contained in paragraph 14. This list of examples is not, however, intended
to be exhaustive.
5. Any change in an accounting policy which has a material effect should be disclosed.
The amount by which any item in the financial statements is affected by such change
should also be disclosed to the extent ascertainable. Where such amount is not
ascertainable, wholly or in part, the fact should be indicated. If a change is made in the
accounting policies which has no material effect on the financial statements for the
current period but which is reasonably expected to have a material effect in later periods,
the fact of such change should be appropriately disclosed in the period in which the
change is adopted.
6. Disclosure of accounting policies or of changes therein cannot remedy a wrong or
inappropriate treatment of the item in the accounts.
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ACCONTING STANDARDS
2
Valuation of Inventories
This revised Standard supersedes Accounting Standard(AS) 2, Valuation of Inventories, issued in
June, 1981.The revised standard comes into effect in respect of accounting periods
Commencing on or after 1.4.1999 and is mandatory in nature.
Objective
A primary issue in accounting for inventories is the determination of the value at which inventories
are carried in the financial statements until the related revenues are recognised.This Statement
dealswith the determination of such value, including the ascertainment of cost of inventories and any
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write-down thereof to net realisable value.
Measurement of Inventories
Inventories should be valued at the lower of cost and net realizable value.
Cost of Inventories
The cost of inventories should comprise all costs of purchase, costs ofconversion and other costs
incurred in bringing the inventories to theirpresent location and condition.
Costs of Purchase
The costs of purchase consist of the purchase price including duties and taxes (other than those
subsequently recoverable by the enterprise from the taxing authorities), freight inwards and other
expenditure directly attributable to the acquisition. Trade discounts, rebates, duty drawbacks and
other similar items are deducted in determining the costs of purchase.
Costs of Conversion
The costs of conversion of inventories include costs directly related to the units of
production, such as direct labour. They also include a systematic allocation of fixed and
variable production overheads that are incurred in converting materials into finished
goods. Fixed production overheads are those indirect costs of production that remain
relatively constant regardless of the volume of production, such as depreciation and
maintenance of factory
Other Costs
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Other costs are included in the cost of inventories only to the extent that they are incurred
in bringing the inventories to their present location and condition. For example, it may be
appropriate to include overheads other than production overheads or the costs of
designing products for specific customers in the cost of inventories.
Valuation of Inventories
Interest and other borrowing costs are usually considered as not relating to bringing the
inventories to their present location and condition and are, therefore, usually not included
in the cost of inventories.
Exclusions from the Cost of Inventories
In determining the cost of inventories in accordance with paragraph 6, it is appropriate to
exclude certain costs and recognise them as expenses in the period in which they are
incurred. Examples of such costs are:
(a) abnormal amounts ofwastedmaterials, labour, or other production
costs;
(b) storage costs, unless those costs are necessary in the production
process prior to a further production stage;
(c) administrative overheads that do not contribute to bringing the
inventories to their present location and condition; and
(d) selling and distribution costs.
Cost Formulas
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The cost of inventories of items that are not ordinarily interchangeable and goods or
services produced and segregated for specific projects should be assigned by specific
identification of their individual costs.
Specific identification of cost means that specific costs are attributed to identified items
of inventory. This is an appropriate treatment for items that are segregated for a specific
project, regardless of whether they have been purchased or produced.However,when
there are large numbers of items of inventory which are ordinarily interchangeable,
specific identification of costs is inappropriate since, in such circumstances, an enterprise
could obtain predetermined effects on the net profit or loss for the period by selecting a
particular method of ascertaining the items that remain in inventories
.
The cost of inventories, other than those dealt with in paragraph 14, should be assigned
by using the first-in, first-out (FIFO), or weighted average cost formula. The formula
used should reflect the fairest possible approximation to the cost incurred in bringing the
items of inventory to their present location and condition.
Techniques for the Measurement of Cost
Techniques for the measurement of the cost of inventories, such as the standard cost
method or the retail method, may be used for convenience if the results approximate the
actual cost. Standard costs take into account normal levels of consumption of materials
and supplies, labour, efficiency and capacity utilisation. They are regularly reviewed and,
if necessary, revised in the light of current conditions.
The retail method is often used in the retail trade for measuring inventories of large
numbers of rapidly changing items that have similar margins and for which it is
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impracticable to use other costing methods. The cost of the inventory is determined by
reducing from the sales value of the inventory the appropriate percentage gross margin.
The percentage used takes into consideration inventory which has been marked down to
below its original selling price. An average percentage for each retail department
Net Realisable Value
The cost of inventories may not be recoverable if those inventories are
damaged, if they have become wholly or partially obsolete, or if their selling
prices have declined. The cost of inventories may also not be recoverable if
the estimated costs of completion or the estimated costs necessary to make
the sale have increased. The practice of writing down inventories below cost
Valuation of Inventories
to net realisable value is consistent with the view that assets should not be
carried in excess of amounts expected to be realised from their sale or use.
Inventories are usuallywritten down to net realisable value on an itemby-
item basis. In some circumstances, however, it may be appropriate to
group similar or related items. This may be the case with items of inventory
relating to the same product line that have similar purposes or end uses and
are produced and marketed in the same geographical area and cannot be
practicably evaluated separately from other items in that product line. It is
not appropriate to write down inventories based on a classification
of inventory, for example, finished goods, or all the inventories in a
particular business segment.
Estimates of net realisable value are based on themost reliable evidence
available at the time the estimates are made as to the amount the inventories
are expected to realise. These estimates take into consideration fluctuations
of price or cost directly relating to events occurring after the balance sheet
date to the extent that such events confirm the conditions existing at the
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balance sheet date.
Estimates of net realisable value also take into consideration the purpose
for which the inventory is held. For example, the net realisable value of the
quantity of inventory held to satisfy firm sales or service contracts is based
on the contract price. If the sales contracts are for less than the inventory
quantities held, the net realisable value of the excess inventory is based on
general selling prices. Contingent losses on firm sales contracts in excess of
inventory quantities held and contingent losses on firm purchase contracts
are dealt with in accordance with the principles enunciated in Accounting
Standard (AS) 4, Contingencies and Events Occurring After the Balance
Sheet Date5 .
Materials and other supplies held for use in the production of
inventories are not written down below cost if the finished products in
5 Pursuant to AS 29, Provisions, Contingent Liabilities and Contingent Assets, becoming
mandatory in respect of accounting periods commencing on or after 1-4-2004, all
paragraphs of AS 4 that deal with contingencies stand withdrawn except to the extent
they deal with impairment of assets not covered by other Indian Accounting Standards.
Reference may be made to Announcement XX under the section titled 'Announcements
of the Council regarding status of various documents issued by the Institute of
Chartered Accountants of India' appearing at the beginning of this Compendium.
A limited revision to AS 29 was made in 2005, so as to include Onerous Contracts in the
scope of the Standard. The said limited revision to AS 29 comes into effect in respect of
accounting periods commencing on or after April 1, 2006
which they will be incorporated are expected to be sold at or above cost.
However, when there has been a decline in the price of materials and it is
estimated that the cost of the finished products will exceed net realisable
value, the materials are written down to net realisable value. In such
circumstances, the replacement cost of the materials may be the best
available measure of their net realisable value.
An assessment is made of net realisable value as at each balance sheet
date.
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ACCOUNTING STANDARD
3
Accounting Standard (AS) 3, Cash Flow Statements (revised 1997), issued
by the Council of the Institute of Chartered Accountants of India, comes
into effect in respect of accounting periods commencing on or after
1-4-1997. This Standard supersedes Accounting Standard (AS) 3, Changes
in Financial Position, issued in June 1981. This Standard is mandatory in
nature in respect of accounting periods commencing on or after 1-4-2004 for
the enterprises which fall in any one or more of the following categories, at
any time during the accounting period:
(i) Enterprises whose equity or debt securities are listed whether in
India or outside India.
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(ii) Enterprises which are in the process of listing their equity or
debt securities as evidenced by the board of directors resolution
in this regard.
(iii) Banks including co-operative banks.
(iv) Financial institutions.
(v) Enterprises carrying on insurance business.
(vi) All commercial, industrial and business reporting enterprises,
whose turnover for the immediately preceding accounting period
on the basis of audited financial statements exceeds Rs. 50 crore.
Turnover does not include other income.
(vii) All commercial, industrial and business reporting enterprises
having borrowings, including public deposits, in excess of Rs.
10 crore at any time during the accounting period.
(viii)Holding and subsidiary enterprises of any one of the above at
any time during the accounting period.
Cash and Cash Equivalents
Cash equivalents are held for the purpose of meeting short-term cash
commitments rather than for investment or other purposes. For an investment
to qualify as a cash equivalent, it must be readily convertible to a known
amount of cash and be subject to an insignificant risk of changes in value.
Therefore, an investment normally qualifies as a cash equivalent only when it
has a short maturity of, say, three months or less from the date of acquisition.
Investments in shares are excluded from cash equivalents unless they are, in
substance, cash equivalents; for example, preference shares of a company
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acquired shortly before their specified redemption date (provided there is only
an insignificant risk of failure of the company to repay the amount atmaturity).
Cash flows exclude movements between items that constitute cash or
cash equivalents because these components are part of the cash management
of an enterprise rather than part of its operating, investing and financing
activities. Cash management includes the investment of excess cash in cash equivalent
Presentation of a Cash Flow Statement
The cash flow statement should report cash flows during the period
classified by operating, investing and financing activities.
An enterprise presents its cash flows from operating, investing and
financing activities in a manner which is most appropriate to its business.
Classification by activity provides information that allows users to assess
the impact of those activities on the financial position of the enterprise and
the amount of its cash and cash equivalents. This information may also be
used to evaluate the relationships among those activities.
A single transaction may include cash flows that are classified
differently.
Operating Activities
The amount of cash flows arising from operating activities is a key
indicator of the extent towhich the operations of the enterprise have generated
sufficient cash flows to maintain the operating capability of the enterprise,
pay dividends, repay loans and make new investments without recourse to
external sources of financing. Information about the specific components
of historical operating cash flows is useful, in conjunction with other
information, in forecasting future operating cash flows.
Cash flows from operating activities are primarily derived from the
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principal revenue-producing activities of the enterprise. Therefore,
they generally result from the transactions and other events that enter
into the determination of net profit or loss.
Investing Activities
The separate disclosure of cash flows arising from investing activities
is important because the cash flows represent the extent towhich expenditures
have been made for resources intended to generate future income and cash
flows.
Financing ActivitiesThe separate disclosure of cash flows arising from financing activities
is important because it is useful in predicting claims on future cash flows by
providers of funds (both capital and borrowings) to the enterprise.
Reporting Cash Flows from Operating Activities
1. An enterprise should report cash flows fromoperating activities using either:
(a) the direct method, whereby major classes of gross cash receipts and gross cash
payments are disclosed; or
(b) the indirect method, whereby net profit or loss is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating
cash receipts or
payments, and items of income or expense associated with investing or financing cash
flows.
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2. The direct method provides information which may be useful in estimating future cash
flows and which is not available under the indirect method and is, therefore, considered
more appropriate than the indirect method. Under the direct method, information about
major classes of gross cash receipts and gross cash payments may be obtained either:
(a) from the accounting records of the enterprise; or
(b) by adjusting sales, cost of sales (interest and similar income and interest expense and
similar charges for a financial enterprise) and other items in the statement of profit and
loss for:
i) changes during the period in inventories and operating
receivables and payables;
ii) other non-cash items; and
iii) other items for which the cash effects are investing or
financing cash flows.
3. Under the indirect method, the net cash flow from operating activities
is determined by adjusting net profit or loss for the effects of:
(a) changes during the period in inventories and operating receivables and payables;
(b) non-cash items such as depreciation, provisions, deferred taxes,
and unrealised foreign exchange gains and losses; and
.
Reporting Cash Flows from Investing and Financing Activities
An enterprise should report separately major classes of gross cash receipts and gross cash
payments arising from investing and financing activities
Reporting Cash Flows on a Net Basis
Cash flows arising from the following operating, investing or financing activities may be
reported on a net basis:
(a) cash receipts and payments on behalf of customers when the cash flows reflect the
activities of the customer rather than those of the enterprise; and
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(b) cash receipts and payments for items in which the turnover is quick, the amounts are
large, and the maturities are short.
Foreign Currency Cash Flows
Cash flows arising from transactions in a foreign currency should be recorded in an
enterprises reporting currency by applying to the foreign currency amount the exchange
rate between the reporting currency and the foreign currency at the date of the cash flow.
Arate that approximates the actual rate may be used if the result is substantially the same
as would arise if the rates at the dates of the cash flows were used. The effect of changes
in exchange rates on cash and cash equivalents held in a foreign currency should be
reported as a separate part of the reconciliation of the changes in cash and cash
equivalents during the period.
Extraordinary Items
28. The cash flows associated with extraordinary items should be classified as arising
from operating, investing or financing activities as appropriate and separately disclosed.
Interest and Dividends
Cash flows from interest and dividends received and paid should each be disclosed
separately. Cash flows arising from interest paid and interest and dividends received in
the case of a financial enterprise should be classified as cash flows arising from operating
activities. In the case of other enterprises, cash flows arising from interest paid should beclassified as cash flows from financing activities while interest and dividends received
should be classified as cash flows from investing activities.Dividends paid should be
classified as cash flows from financing activities
Taxes on Income
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Cash flows arising from taxes on income should be separately disclosed and should be
classified as cash flows from operating activities unless they can be specifically identified
with financing and investing activities.
Investments in Subsidiaries, Associates and Joint Ventures
When accounting for an investment in an associate or a subsidiary or a joint venture, an
investor restricts its reporting in the cash flow statement to the cash flows between itself
and the investee/joint venture,
Acquisitions and Disposals of Subsidiaries and Other Business Units
The aggregate cash flows arising from acquisitions and from disposals of subsidiaries or
other business units should be presented separately and classified as investing activities.
An enterprise should disclose, in aggregate, in respect of both acquisition and disposal
of subsidiaries or other business units during the period each of the following:
(a) the total purchase or disposal consideration; and
(b) the portion of the purchase or disposal consideration discharged
by means of cash and cash equivalents.
Non-cash Transactions
Investing and financing transactions that do not require the use of cash or cash equivalents should be
excluded from a cash flow statement. Such transactions should be disclosed elsewhere in the financial
statements in a way that provides all the relevant information about these investing and financing
activities.
Components of Cash and Cash Equivalents
An enterprise should disclose the components of cash and cash equivalents and should
present a reconciliation of the amounts in its cash flow statement with the equivalent
items reported in the balance sheet.
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Other Disclosures
An enterprise should disclose, together with a commentary by management, the amount
of significant cash and cash equivalent balances held by the enterprise that are not
available for use by it.
There are various circumstances in which cash and cash equivalent balances held by an
enterprise are not available for use by it. Examples include cash and cash equivalent
balances held by a branch of the enterprise that operates in a countrywhere exchange
controls or other legal restrictions apply as a result of which the balances are not
available for use by the enterprise.
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ACCONTING STANDARD
10
Accounting for Fixed Assets
Financial statements disclose certain information relating to fixed assets.
In many enterprises these assets are grouped into various categories, suchas land, buildings, plant andmachinery,vehicles, furniture and fittings,goodwill,
patents, trade marks and designs.
This statement does not deal with the specialised aspects of accounting
for fixed assets that arise under a comprehensive systemreflecting the effects
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of changing prices but applies to financial statements prepared on historical
cost basis.
This statement does not deal with accounting for the following items to
which special considerations apply:
(i) forests, plantations and similar regenerative natural resources;
(ii) wasting assets including mineral rights, expenditure on the
exploration for and extraction of minerals, oil, natural gas and
similar non-regenerative resources;
(iii) expenditure on real estate development; and
(iv) livestock.
Fair market valueis the price that would be agreed to in an open and
unrestricted market between knowledgeable and willing parties dealing at
arms length who are fully informed and are not under any compulsion to
transact.
Gross book valueof a fixed asset is its historical cost or other amount
substituted for historical cost in the books of account or financial statements.
When this amount is shown net of accumulated depreciation, it is termed as
net book value
Identification of Fixed Assets
Whether items are to be classified as fixed assets. Judgement is required in applying
the criteria to specific circumstances or specific types of enterprises. It may
be appropriate to aggregate individually insignificant items, and to apply the
criteria to the aggregate value. An enterprise may decide to expense an item
which could otherwise have been included as fixed asset, because the amount
of the expenditure is not material.
Stand-by equipment and servicing equipment are normally capitalised.
Machinery spares are usually charged to the profit and loss statement as and
when consumed. However, if such spares can be used only in connection
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with an itemof fixed asset and their use is expected to be irregular, itmay be
appropriate to allocate the total cost on a systematic basis over a period not
exceeding the useful life of the principal item.
Components of Cost
The cost of an itemof fixed asset comprises its purchase price, including
import duties and other non-refundable taxes or levies and any directly
attributable cost of bringing the asset to itsworking condition for its intended
use; any trade discounts and rebates are deducted in arriving at the purchase
price. Examples of directly attributable costs are:
(i) site preparation;
(ii) initial delivery and handling costs;(iii) installation cost, such as special foundations for plant; and
(iv) professional fees, for example fees of architects and engineers.
Self-constructed Fixed Assets
In arriving at the gross book value of self-constructed fixed assets, Included in the gross
book value are costs of construction that relate directly to the specific asset and costs that
are attributable to the construction activity in general and can be allocated to the specific
asset. Any internal profits are eliminated in arriving at such cost
Non-monetary Consideration
When a fixed asset is acquired in exchange for another asset, its
cost is usually determined by reference to the fair market value of the
consideration given. Itmay be appropriate to consider also the fairmarket
value of the asset acquired if this is more clearly evident. An alternative
accounting treatment that is sometimes used for an exchange of assets,
particularly when the assets exchanged are similar, is to record the asset
acquired at the net book value of the asset given up; in each case an
adjustment is made for any balancing receipt or payment of cash or other
consideration.
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When a fixed asset is acquired in exchange for shares or other securities
in the enterprise, it is usually recorded at its fair market value, or the fair
market value of the securities issued, whichever is more clearly evident.
Improvements and Repairs
Frequently, it is difficult to determinewhether subsequent expenditure
related to fixed asset represents improvements that ought to be added to the
gross book value or repairs that ought to be charged to the profit and loss
statement. Only expenditure that increases the future benefits from the
existing asset beyond its previously assessed standard of performance is
included in the gross book value, e.g., an increase in capacity.
The cost of an addition or extension to an existing asset which is of a
capital nature and which becomes an integral part of the existing asset is
usually added to its gross book value.Any addition or extension,which has a
separate identity and is capable of being used after the existing asset is
disposed of, is accounted for separately.
Amount Substituted for Historical Cost
Sometimes financial statements that are otherwise prepared on ahistorical cost basis
include part or all of fixed assets at a valuation in substitution for historical costs and
depreciation is calculated accordingly.Such financial statements are to be distinguished
from financial statementsprepared on a basis intended to reflect comprehensivelytheeffects of changing prices
Retirements and Disposals
An item of fixed asset is eliminated from the financial statements on disposal.
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Items of fixed assets that have been retired from active use and are held for disposal are
stated at the lower of their net book value and net realisable value and are shown
separately in the financial statements. Any expected loss is recognised immediately in the
profit and loss statement. In historical cost financial statements, gains or losses arising on
disposal are generally recognised in the profit and loss statement.
On disposal of a previously revalued itemof fixed asset, the difference between net
disposal proceeds and the net book value is normally charged or credited to the profit and
loss statement except that, to the extent such a loss is related to an increase which was
previously recorded as a credit to revaluation reserve and which has not been
subsequently reversed or utilised, it is charged directly to that account. The amount
standing in revaluation reserve following the retirement or disposal of an asset which
relates to that asset may be transferred to general reserve.
Valuation of Fixed Assets in Special Cases
In the case of fixed assets acquired on hire purchase terms, although
legal ownership does not vest in the enterprise, such assets are recorded at
their cash value, which, if not readily available, is calculated by assuming an
appropriate rate of interest. They are shown in the balance sheet with an
appropriate narration to indicate that the enterprise does not have full
ownership thereof.
Fixed Assets of Special Types
Goodwill, in general, is recorded in the books only when someconsideration in money or
moneys worth has been paid for it.Whenever abusiness is acquired for a price (payable
either in cash or in shares or(otherwise) which is in excess of the value of the net assets of
the business taken over, the excess is termed as goodwill.Goodwill arises frombusiness
connections, trade name or reputation of an enterprise or fromother intangible benefits
enjoyed by an enterprise.
Disclosure
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Certain specific disclosures on accounting for fixed assets are already required by
Accounting Standard 1 on Disclosure of Accounting Policies and Accounting Standard
6 on Depreciation Accounting. Further disclosures that are sometimes made in financial
statements include:
(i) gross and net book values of fixed assets at the beginning and end of an accounting
period showing additions, disposals, acquisitions and other movements;
(ii) expenditure incurred on account of fixed assets in the course of construction or
acquisition; and
(iii) revalued amounts substituted for historical costs of fixed assets, the method adopted
to compute the revalued amounts, the nature of any indices used, the year of any
appraisal made, and whether an external valuer was involved, in case where fixed assets
are stated at revalued amounts.
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CHAPTER-3
HOW THESE ACCOUNTING STANDARDS ARE IN AIR LIQUID
Below are the sample statements of Significant Accounting Policies followed in Air
Liquide and disclosed as per Accounting Standard 1:
(a) Basis of preparation of financial statements ( Disclosure as per Accounting
standard 1)
The financial statements have been prepared and presented under the historical
cost convention on the accrual basis of accounting following generally accepted
accounting principles in India (GAAP) and comply with the Accounting Standards
prescribed by the Companies (Accounting Standards) Rules, 2006 and the relevant
provisions of the Companies Act, 1956 to the extent applicable.
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The accounting policies have been consistently applied by the Company and
except for the change in accounting policy discussed more fully below, are
consistent with those used in the previous year.
(b) Use of Estimates ( Disclosure as per Accounting standard 1)
The preparation of financial statements requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, the
disclosure of contingent liabilities on the date of the financial statements and the
reported amounts of revenues and expenses during the period reported. Actual
results could differ from those estimates. Any revision to accounting estimates is
recognised in accordance with the requirements of the respective accounting
standard.
(c) Fixed Assets ( As per Accounting Standard 10- Accounting for Fixed Assets)
Fixed assets are stated at cost less accumulated depreciation and impairment
losses, if any. Cost comprises the purchase price and any directly attributable cost
of bringing the asset to its working condition for its intended use. Borrowing costs
relating to acquisition of fixed assets are also included to the extent they relate to
the period till such assets are ready to be put to use.
(d) Depreciation ( As per Accounting Standard 10- Accounting for Fixed Assets)
Depreciation is provided using Written Down Value Method (WDV) as per the
useful lives of the assets estimated by the management, or at the rates prescribed
under Schedule XIV of the Companies Act, 1956 whichever is higher.
Depreciation on fixed assets costing up to Rs. 5,000 or less is provided 100% in the
year of acquisition.
Depreciation on Leasehold Land and Leasehold improvements is provided over the
lease period.
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(e) Impairment (As per Accounting Standard 28- Impairment of Assets)
The carrying amounts of assets are reviewed at each balance sheet date if there isany indication of impairment based on internal / external factors. An impairment
loss is recognised wherever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the assets net selling price and
value in use. In assessing value in use the estimated future cash flows are
discounted to their present value at the weighted average cost of capital.
(f) Leases ( Accounting Standard 19)
Where the Company is the lessee
Leases where the lessor effectively retains substantially all the risks and benefits of
ownership of the leased term, are classified as operating leases. Operating lease
payments are recognized as an expense in the Profit and Loss account on straight
line basis over the lease term.
Where the Company is the lessor
Assets subject to operating leases are included in fixed assets. Lease income is
recognised in the Profit and Loss Account on a straight-line basis over the lease
term. Costs, including depreciation are recognised as an expense in the Profit and
Loss Account. Initial direct costs such as legal costs, brokerage costs, etc. are
recognised immediately in the Profit and Loss Account.
(g) Investments ( As per Accounting Standard 13- Accounting for Investments)
Investments that are readily realisable and intended to be held for not more than a
year are classified as current investments. All other investments are classified as
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long-term investment. Current investments are carried at lower of cost and fair
value determined on an individual investment basis. Long-tern investments are
carried at cost. However, provision for diminution in value is made to recognize a
decline other than temporary in the value of the investment.
(h) Inventories ( As per Accounting Standard 2 : Valuation of Inventories)
Inventories are valued as follows :
Raw materials and stores
and spares
Lower of cost or net realizable value. However,
materials and other items held for use in the
production of inventories are not written down
below cost if the finished products in which they
will be incorporated are expected to be sold at or
above cost. Cost is determined on a weighted
average basis.
Finished goods Lower of cost or net realizable value. Cost includes
direct materials and labour and a proportion of
manufacturing overheads based on normal
operating capacity. Cost of finished goods includes
excise duty, wherever applicable.
Goods purchased for resale Lower of cost or net realizable value. Cost is
determined on a weighted average basis.
Net realizable value is the estimated selling price in the ordinary course of
business, less estimated costs of completion and to make the sale.
Closing Value of Finished Goods
Class of Goods Unit
Quantity Value (Rs.)
2009 2008 2009 2008Closing Stock
Liquid Oxygen M3 493,679 491,909 3,512,421 3,722,385
Liquid Nitrogen M3 320,816 385,593 2,268,034 3,330,106
Liquid Argon M3 18,179 5,253 510,998 204,627
Gas & Mix Argon M3 3,814 4,127 193,110 203,091
Gas Oxygen M3 1,117 -- 9,259 --
Gas Nitrogen M3 207 1,659 724 17,934
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Gas Helium M3 970 650 476,037 300,423
Gas CO2 M3 240 705 4,177 13,204
Gas Hydrogen NM3 10,334 9,345 279,750 223,144
Total 849,356 899,241 7,254,540 8,014,914
(i) Revenue recognition ( As per Accounting Standard 9 Revenue Recognition)
Revenue is recognized to the extent that it is probable that the economic benefits will flow to th
Company and the revenue can be reliably measured.
Sale of Goods
Revenue is recognised when the significant risks and rewards of ownership of the goods hav
passed to the buyer. Excise Duty, Sales Tax and VAT deducted from turnover (gross) is t
amount that is included in the amount of turnover (gross) and not the entire amount of liabili
arised during the year.
Income from services
Revenues from service contracts are recognised pro-rata over the period of the contract as an
when services are rendered.
Interest
Revenue is recognised on a time proportion basis taking into account the amount outstandin
and the rate applicable.
(j) Foreign currency transactions ( As per Accounting Standard 11 The effect of changes
Foreign Exchange Rates )
(i) Initial Recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreig
currency amount the exchange rate between the reporting currency and the foreign currency
the date of the transaction.
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(ii) Conversion
Foreign currency monetary items are reported using the closing rate. Non-monetary items whic
are carried in terms of historical cost denominated in a foreign currency are reported using th
exchange rate at the date of the transaction; and non-monetary items which are carried at favalue or other similar valuation denominated in a foreign currency are reported using th
exchange rates that existed when the values were determined.
(iii) Exchange Differences
Exchange differences arising on the settlement of monetary items or on reporting company
monetary items at rates different from those at which they were initially recorded during th
year, or reported in previous financial statements, are recognised as income or as expenses in th
year in which they arise except those arising from investments in non-integral operations.
(k) Retirement benefits ( Disclosure as per Accounting Standard 1)
i. Retirement benefits in the form of Provident Fund are charged to the Profit & Loss Accou
of the year when the contribution to the Provident Fund is due.
ii. Gratuity liability is accrued on the basis of an actuarial valuation made at the end of ea
financial year by the Life Insurance Corporation of India and is contributed to them.
iii. Liability for leave encashment is accrued and provided for on the basis of actual leav
available at the end of each financial year. The leaves are also en-cashable during the tenu
of the employment.
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(l) Expenditure on new projects and substantial expansion
Expenditure directly relating to construction activity is capitalised. Indirect expenditure incurre
during construction period is capitalised as part of the indirect construction cost to the extent
which the expenditure is indirectly related to construction or is incidental thereto. Other indire
expenditure (including borrowing costs) incurred during the construction period which is n
related to the construction activity nor is incidental thereto is charged to the Profit and Lo
Account. Income earned during construction period is deducted from the total of the indire
expenditure.
All direct capital expenditures on expansion are capitalised. As regards indirect expenditure o
expansion, only that portion is capitalised which represents the marginal increase in su
expenditure involved as a result of capital expansion. Both direct and indirect expenditure a
capitalised only if they increase the value of the asset beyond its original standard
performance.
(n) Provisions and Contingent Liabilities and Contingent Assets
Provisions
A provision is recognised when an enterprise has a present obligation as a result of past event;
is probable that an outflow of resources will be required to settle the obligation, in respect
which a reliable estimate can be made. Provisions are not discounted to its present value and a
determined based on best estimate required to settle the obligation at the balance sheet dat
These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
Contingent Liability
A contingent liability is disclosed where, as a result of past events, there is a possible obligati
or a present obligation that may, but probably will not, require an outflow of resources. Wh
there is a possible obligation or a present obligation in respect of which the likelihood of outflo
of resources is remote, no provision or disclosure is made.
Contingent Assets
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Contingent assets are not recognised in the financial statements.
(o) Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprises of cash at bank and in hand and shortterm investments with an original maturity of three months or less.
Air Liquide follows the indirect method for computation of Cash Flows as per Accounting
Standard 3. The format is attached below:
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CHAPTER-4
OBJECTIVES &
METHODOLOGY
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OBJECTIVES&METHDOLOGY
Significance
(i) Significance of the Industry:
To achieve and maintain a competitive advantage is extremely essential for organizations
to survive. This can only be achieved if the organization works as an integrated unit. This
will help them to maintain accounts of the company
(ii) Significance of the Researcher:
I have gained lot of experience while doing this project. In my summer training we know
how these acconting standards applicable in Air liquide
2.2 Objectives
The objective of this project study is to do a conceptual, in depth and comparative
analysis of financial department of air Liquide north India pvt ltd. .
How much these acconting standards is important for a company or organization to do all
the work efficiently
Specific Objectives of this Project is to:
1. To examine critically the current practices being followed in the organization of
these accounting standards
2. To identity weak areas in the process of implementation of these acconting
standards at this organization.
3. To suggest measures to the revenue cycle from invoice through cash receipt.
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4. To suggest a Managing interdependencies of complex Bill of Materials
Tracking the 3-way match between Purchase orders (what was ordered),
Inventory receipts (what arrived), and Costing (what the vendor invoiced)
Methodology
The research was probability based exploratory research.
Primary Data
Internal data from companies offices and employees
Secondary Data
Web site of the company
Internet
Limitations of the study
Time period is very short for that.
Systems are too restrictive and do not allow much flexibility in implementation
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CHAPTER-5
BIBLOGRAPHY
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BIBLOGRAPHY
WEBSITES:
WWW.WIKIPEDIA.COM
WWW.ICAI.ORG
WWW.AIRLIQUIDE.COM
REFRENCE:
Mr Gaurav sachdeva
Mr Srinivas prasad
NEWSPAPER:
THE TIMES OF INDIA
http://www.wikipedia.com/http://www.airliquide.com/http://www.wikipedia.com/http://www.airliquide.com/