Notes to Accounts - SPECIMEN NOTES TO ACCOUNTS : ----------------- 1. Contingent Liabilities : (i) Bonds/Guarantees issued to Excise/Sales tax/Customs Authorities and outstanding at year end Rs. _________ lacs (Previous Year Rs. ________ lacs). (ii) In respect of Income tax demands pending disposal of appeal Rs. ______ lacs (Previous Year Rs. _________ lacs). (iii) In respect of Excise demands pending disposal of appeal Rs. __________ lacs (Previous Year Rs. _________). (iv) In respect of Sales Tax demands for the year 1998-99 pending disposal of appeals Rs. _________ lacs (Previous Year Rs. _________ lacs). (v) In respect of transfer levy demanded by UPSIDC for allowing change of name of the Company in their records Rs. _________ lacs (Previous Year Rs. ____________ lacs). The Company has obtained a stay order from the Hon'ble Allahabad High Court. (vi) Letter of Credit Acceptances Rs. _________ lacs (Previous Year Rs. _________ lacs.) 2. Cash credit facilities from banks Rs. ____________ lacs (Previous Year Rs. ____________ lacs) are secured by hypothecation of inventories and book debts, present and future, wherever situated and/on in transit. 3. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. ____________ lacs (Previous Year Rs. _________ lacs). 4. Deferred revenue expenditure Rs. ___________ lacs (Previous Year Rs. _________ lacs) has been charged to the Profit and Loss Account. 5. Considering the large number of items, individually not having material values, no separate ledger is maintained in respect of stores, spares and loose tools, Consumption of these items is therefore determined by valuation of physically verified stocks at the year end. 6. Managerial Remuneration for the year does not inlcude remuneration in respect of whole-time executives who are alternate directors. 7. Revenue (gain net on account of Exchange Currency Fluctuation during the year amounting to Rs. __________ lacs (Previous Year Rs. _________ lacs) has been credited to the related heads in the Profit and Loss Account. 8. The Company has during the year revised the useful life of plant and macinery based on a technical evaluation carried out by a committee appointed for the same. Depreciation on plant and machinery has been computed with prospective effect and the additional depreciation amounting to Rs. _________ lacs has been charged to the Profit and Loss Account. 9. During the previous year 200___-200___, the Company had revised the useful life of certain categories of fixed assets based on the recommendation of a technical evaluation committee. Depreciation on these assets was however computed with retrospective effect and not prospectively as prescribed by Accounting Standard-6 issued by the Institute of Chartered Accountants of India, resulting in depreciation for the year 200___-200___ being higher by Rs. __________ lacs and net fixed assets and reserves and surplus lower by the same amount. 10. The Company has provided an amount of Rs. __________ lacs towards cost of sharing interment network facilities, which is payable to ABC Ltd. The principal agreement between ABC Pvt. Ltd. and ABC Corporation, Japan for utilisation of network and cost sharing is subject to RBI approval. 11. Amount due from companies under the same management as defined in Sub-Section (1-B) of Section 370 of Companies Act, 1956, includes Rs. ___________ lacs (Previous Year Rs. ___________ lacs) due from ABC Industries Pvt. Limited. 12. CAPACITIES Class of Goods licensed Capacity Installed Capacity per annum per annum -------------------- This Year Previous Year Nos. Nos. Alternators/Generations with or without vacuum pump complete with regulator Delicensed ________ ________ Starter Motors Delicensed ________ ________ Wiper Motors Delicensed ________ ________ Auto electrical like Distributors, Voltage, Regulators, Flywheel Magnetos, Condenors, Electronic Ignition System, Head Lamps, Fractional Horse Power Motors such as Fan Motors, Blower Motors, Washer Motors, Auto Bulbs Delicensed # Installed Capacity is on the basis of three shift working and is as certified by the Management, being atechnical matter. 13. RAW MATERIALS AND COMPONENTS CONSUMED DURING PRODUCTION : This Year Previous Year (Rs. 000) (Rs. 000) Raw Materials and Components ___________ ___________ Notes : (i) In view of the large number of items which differ in size and nature, each being less then ten percent in value of the total value, it is not practicable furnish quantitative information of Raw Materials and Components. (ii) Includes shortages, write off, etc. 14. PRODUCTION, SALES AND STOCKS : Opening Stock Production* Sales Closing Stock ------------- ---------- ------------- ------------- Quan- Value Quan- Quan- Value Quan- Value tity tity tity tity (Nos.) (Rs. (Nos.) (Nos.) (Rs. (Nos.) (Rs. 000) 000) 000) ---------------------------------------------------------------------- Alternators This Year ______ ______ ______ ______ ______ ______ ______ Prev.Year ______ ______ ______ ______ ______ ______ ______ Starter Motors This Year ______ ______ ______ ______ ______ ______ ______ Prev.Year ______ ______ ______ ______ ______ ______ ______ Wiper Motors This Year ______ ______ ______ ______ ______ ______ ______ Prev.Year ______ ______ ______ ______ ______ ______ ______ Other Auto This Year ______ ______ ______ ______ ______ ______ ______ Electricals Prev.Year ______ ______ ______ ______ ______ ______ ______ Others** This Year ______ ______ ______ ______ ______ ______ ______ Prev.Year ______ ______ ______ ______ ______ ______ ______ ------------------------------------------------------------------------------ Total This Year ______ ______ ______ ______ ______ ______ ______ Prev.Year ______ ______ ______ ______ ______ ______ ______ ------------------------------------------------------------------------------ * Net of rejection. ** In view of large number of items, it is not practicable to furnish quantitative information. 15. VALUE OF IMPORTED AND INDIGENOUS RAW MATERIALS, COMPONENTS, STORES AND SPARES CONSUMED % This Year % Previous Value Year (Rs.000) Value (Rs.000) (a) Raw Materials and Components (i) Imported _____ _________ _____ ________ (ii) Indigenous _____ _________ _____ ________ ---------------------------------------- _____ _________ _____ ________ ---------------------------------------- (b) Stores and Spares (i) Imported _____ _________ _____ ________ (ii) Indigenous _____ _________ _____ ________ Notes : As referred to in note ________ on Schedule ______ above, there is not detailed quantitative stores and spares ledger and therefore classification between Imported and Indigenous is as per management estimates. This Year Previous Year (Rs. `000) (Rs. `000) 16. CIF VALUE OF IMPORTS (a) Raw Materials and Components ___________ ___________ (b) Stores and Spares ___________ ___________ (c) Capital Goods ___________ ___________ ------------- ------------- ___________ ___________ ------------- ------------- 17. EXPENDITURE IN FOREIGN CURRENCY (CASH BASIS) (a) Royalty ___________ ___________ (b) Technical Service Fees/Know-How ___________ ___________ (c) Travelling and Training ___________ ___________ (d) Others ___________ ___________ ------------- ------------- ___________ ___________ ------------- ------------- 18. AMOUNTS PAID/PAYABLE TO AUDITORS (a) Audit Fee ___________ ___________ (b) Tax Audit ___________ ___________ (c) Other Services ___________ ___________ (d) Out of Pocket Expenses ___________ ___________ ------------- ------------- ___________ ___________ ------------- ------------- 19. Whole Time Directors Remuneration* [Schedule] (a) Salary Allowances ___________ ___________ (b) Perquisities ___________ ___________ ------------- ------------- ___________ ___________ ------------- ------------- 20. DIVIDEND REMITTED IN FOREIGN CURRENCY FOR 2000-2001 This Year Previous Year (Rs. `000) (Rs. `000) (a) X.Y.Z. Corporation, Japan on ____shares ___________ ___________ (b) ABC Corporation Japan on ____ shares ___________ ___________ (c) NBC Co. Ltd., Japan on____shares ___________ ___________ (previous year) (d) Ten (prev. year ten) Non-Resident Indians holding shares (previous year ____ ___________ ___________ ------------- ------------- ___________ ___________ ------------- ------------- 21. Sundry creditors include amounts due to Small Scale Industrial undertaking to the extent such parties have been identified from available information with the Company. Names of the Small Scale Industrial Undertakings to whom amount is outstanding along with interest, for morethan 30 days are- ABC (P) Ltd. 22. DEFERRED TAX : (i) The company has adopted Accounting Standard-22. "Accounting for taxes on income" with effect from April 1, 2001. The accumulated net deferred tax liability amounting to Rs. _________ on account of timing differences between book and tax profits as at April 1, 2001 has been debited to the General Reserve Account. (ii) The break-up of deferred tax asset and liabilities as at March 31, 2002 is as under : Deferred tax Deferred tax Asset Liability (Rs. 000) (Rs. 000) Timing differences on account of : Difference between book depreciation and depreciation under Income Tax Act, 1961 ____________ ____________ Expenditure under section 43 B of the Income Tax Act, 1961 ____________ ____________ Expenditure under section 35 AB of the Income Tax Act, 1961 ____________ ____________ Others ____________ ____________ ------------ ------------ Net Defered Tax Liability ____________ ____________ ------------ ------------ 23. EARNING PER SHARE This Year Previous Year Profit attribute to equity shareholders (in Rs.000) ____________ ____________ Basic weighted average number of equity shares outstanding during the year ____________ ____________ Basic and Diluted Earnings Per Equity of Share Rs. 10 each (in Rs.) ____________ ____________ *******