Notes:
1) The company adopts Cenvat inclusive method of accounting and therefore, excise duty is accounted as expenditure net of Cenvat benefits. Accordingly, net sales figure has been derived by deducting from gross sales value the amount of such Excise Duty.
2) The Company continues to adopt the same accounting policies in respect of the matters referred to by the Auditors of the Company, in their report for the year ended 31st March 2002, which are as follows: -
a) Leave liability in respect of employees is accounted for to the extent of actual encashment. b) Gratuity liability is accounted for to the extent of actual payments, which together with future payments would be sufficient to meet the liability as and when it arises.
c) Future monthly payments to employees under Voluntary Early Retirement Schemes are accounted for as and when paid.
d) Cenvat element is included in valuation of inventories in view of the requirement of Section 145A of the Income Tax Act, 1961.
e) No provision has been considered necessary in respect of certain doubtful debts, claims and advances, as the Company is hopeful of recovering these amounts.
ii) The combined effect of the above accounting policies would result into an increase in losses upto the period ended 31.03.2003 by Rs.3281 lacs (Net of deferred tax) and for the quarter ended 30th September 2003 by Rs.49 lacs (Net of deferred tax).
3) In view of Accounting Standard 22 on “Accounting for taxes on income”, deferred tax asset of Rs.997 lacs has been considered for the quarter ending 30.09.2003. The management, based on profitability projections, is reasonably certain of claiming the above tax benefit in future years.
4) Prior period figures have been re-grouped/rearranged, wherever necessary.
5) During the quarter the Company has invested Rs 16 lacs (US$ 35000) in the share capital of its wholly owned subsidiary, which has recently been incorporated in Delaware, USA.
6) Number of Investor complaints :
i) Pending at the beginning of this quarter – 2
ii) Received during the quarter – 68
iii) Disposed off during the quarter – 70
iv) Lying unresolved at the end of the quarter – 0
7) The above results have been taken on record at the meeting of the Board of Directors of the Company held on 28th October, 2003.
8) The quarterly results have been reviewed by the auditors as required under clause 41 of the Listing Agreement
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