Rolta warned

MUMBAI: Sebi has asked Rolta India to discontinue practice of including cost of self-assembled capital equipment in sales and resist from adopting practices inconsistent with the domestic and international accounting standards.
"Rolta India is advised to discontinue its practice of including the cost of self-assembled capital equipment or any capitalisable item in the sales/revenue henceforth and not to adopt, in future, any accounting practice inconsistent with relevant Indian and international accounting standards," Sebi''s whole-time member T M Nagarajan said.
Rolta, by including cost of self-assembled equipment in the sales, adopted inappropriate accounting practice. Though the practice did not apparently impact the profit or loss, it distorted the sales turnover figures, the order said. Thus, the sales-growth rates had been highlighted at a level better than what they would have been, misleading investors.