Honeywell Automation
BSE: 517174 | NSE: HONAUT | ISIN: INE671A01010 | Telecommunications - Equipment
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Notes to Accounts | Year End : Dec '08 |
1. a) Estimated amount of contracts remaining to be executed on
capital accounts and not provided for - Rs. 67,954 (000) [Previous
Year Rs. 18,314 (000)].
2. a) The cash credit from Bank is secured by hypothecation of present
and future stocks of raw materials, semi- finished goods, finished
goods, stores and spares and book debts. The vehicle loans are secured
by hypothecation of vehicles.
b) The sales tax liability of Rs.35,031(000) [Previous Year Rs. 47,315
(000)], deferred and classified under unsecured loans is repayable, in
respect of each years collection, in six annual installments
commencing from the year 2005.
c) The sales tax liability of Rs.60,968 (000) [Previous Year Rs.
60,968 (000)], deferred and classified under unsecured loans is
repayable, in respect of each years collection, in five annual
installments commencing from the year 2010.
3. Provision for taxation has been made after considering the various
allowances/deductions available and after excluding profits derived
from an undertaking registered with Software Technology Parks of India
under Section 10A and unit registered under Special Economic Zone under
Section 10AA of the Income Tax Act, 1961.
4. Interest includes interest on fixed loans 2,598 (000) [Previous
Year Rs. 12,635 (000)] and others Rs. 4,639 (000) [Previous Year
Rs.8,077 (000)].
5. Contingent Liabilities
(Rs.000)
December December
31,2008 31,2007
a) Income tax claims against the Company 402,194 109,645
b) Excise duty claims against the Company* 1,475 8,635
c) Sales Tax refunds/claims against the Company* 84,675 153,486
d) Customs Duty claims against the Company* 4,000
e) Octroi* - 1,055
* Excludes penalties, if any, relating to penalty proceedings, since
the precedence indicate that the probability of levy is remote.
Note :
Bank Guarantees given to customers- against performance/advance.
Bank Guarantees issued Rs. 1,966,153 (000) [Previous Year Rs.
1,720,748 (000)] are secured by hypothecation of present and future
stocks of raw materials, semi-finished goods, finished goods, stores
and spares and book debts.
6. During the year, the Company has accounted for corporate overhead
allocation, in respect of various services rendered by Honeywell group
companies, aggregating Rs. 371,338 (000) with effect from January 1,
2007. Out of the above, Rs. 154,862 (000) are in respect of services
rendered in the year 2007.
7. During the previous year, the Company had revised its estimated
useful lives of all assets (except land). As a result, additional
depreciation charge for the previous year was Rs. 50,122 (000).
8. Based on an exercise to ascertain impairment, if any, in the
carrying amount of fixed assets, the Company had in the previous year
provided for an impairment loss of Rs. 8,769 (000) in Product
Distribution Rights.
9. Beginning January 1, 2007, the Company had refined its accounting
practice for revenue recognition under the Accounting Standard 7
(AS-7). Consequent to this refinement the profit before tax for the
previous year was higher by Rs. 36,000 (000).
10. Prior year comparatives have been regrouped, reclassified to
conform to the current year presentation, wherever applicable.
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| Source : Religare Technova | |
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