A change in the policy of accounting for depreciation (from written-down-value method to straight-line-method) enabled tyre manufacturer MRF Ltd overcome the impact of high raw material (rubber) prices and rupee depreciation, and report a higher net profit for 2010-11. (The company follows October-September financial year.)
Net profit for 2010-11 stood at Rs 619.42 crore, against Rs 353.98 crore for last year, thanks to the exceptional item of Rs 404.23 crore, representing “excess depreciation of earlier years.”
via Change in depreciation accounting helps MRF report higher profit
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