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) i) 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 had an impact of reducing the losses for the year by Rs.47 lacs (Net of deferred tax).
3) In view of Accounting Standard 22 on “Accounting for taxes on income”, deferred tax asset of Rs.1379 lacs has been considered for the year ending 31.03.2003. The management, based on profitability projections, is hopeful to claim the above tax benefit in future years.
4) The consolidated financial results as indicated in the above table includes Hindustan Motors Limited and its two wholly owned subsidiaries.
5) The figures of the previous year how been re-grouped/rearranged wherever necessary.
6) The above results have been taken on record at the meeting of Board of Directors of the Company held on 19th May, 2003.
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