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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 commented upon by the Auditors of the Company in their report for the year ended 31st March 2003, 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.
f) Based on profitability projections, Deferred Tax Asset has been accounted for till 30.09.2003, as per Accounting Standard 22.
ii) The combined effect of the above accounting policies (excluding Point Nos. 2(i) (e) & (f) above) would result into an increase in losses
up to 31.03.2004 by Rs.5029 lacs.
3) During the quarter and second half of the year, the Company has not created any Deferred Tax Asset as it is examining business restructuring possibilities.
4) Prior period figures have been re-grouped/rearranged, wherever necessary.
5) Number of Investor complaints :
i) Pending at the beginning of this quarter – 0
ii) Received during the quarter – 45
iii) Disposed off during the quarter – 44
iv) Lying unresolved at the end of the quarter – 1
6) The consolidated financial results as indicated in the above table includes Hindustan Motors Limited and its three wholly owned subsidiaries.
7) The above results have been taken on record at the meeting of the Board of Directors of the Company held on 24th May, 2004.
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