|
The
above results for the quarter ended 30th June, 2006 have been subjected to a
'Limited Review' by the Auditors of the Company and were taken on record by
the Board of Directors in their meeting held at New Delhi on 29th July, 2006.
The Company is primarily engaged in the business of Light
Commercial Vehicles and its parts. As
the basic nature of these activities are governed by same set of risk and
returns, these constitute and have been grouped as single segment in above
disclosure as per Accounting Standard 17 dealing with "Segment Reporting".
Through
issue of Excise Notification No. 11/95 dated March 16, 1995, Government
sought to lapse Rs. 4.88 crores out of Modvat Credit receivable balance as on
March 16, 1995. Petition by the
Company and others with the Delhi High Court challenging the said
Notification on grounds of law and equity was allowed by the Supreme Court
vide order dated January 28, 1999. The
Finance Act, 1999 has, however, brought in retrospective amendments
w.e.f. March 16, 1995 in the Central
Excise Act, empowering the Central Government to lapse such Modvat. On legal advise obtained by the Company to
seek redressal against the action of the Government, the Company has filed
writ petition before the Delhi High Court on the ground that the Government
action violates the doctrine of promissory estoppel / expectation principle besides other
grounds. The court has already
admitted the petition. Accordingly,
pending Company’s petition and decision thereupon, the amount of Rs. 4.88
crores though adjusted in Excise Records has not been provided in the books
of account.
During
the quarter, the Company received 2 complaints from the shareholders which
were duly resolved. There are no
complaints remaining unresolved as at the beginning and end of the quarter.
Previous year figures have been regrouped / recast, wherever
necessary.
|