Nippo Batteries Company

1) Fixed Deposits Rs. 15,70,59 (Rs.29,19,00) with Scheduled Banks
 include those pledged to Central Excise Department Rs.Nil (Rs.578),
 Sales Tax Department Rs.3,28 (Rs.3,42).
 
 2) National Savings Certificates included under Loans & Advances
 (Schedule 4d) have been lodged as under Central Excise Department Rs.l
 (Rs.l), Sales Tax Department Rs.7 (Rs.7) and Transport Authorities Rs.l
 1 (Rs.11).
 
 3) Tax deducted at source on interest Rs. 1,68,43 (1,46,94)
 
 4) Interest received from Banks (under other income) is net of Interest
 paid Rs. 14,65 (Rs. 48)
 
 5) The aggregate working capital limit of Rs. 11,00,00 (Rs. 11,00,00)
 sanctioned by Banks are secured by hypothecation of imported and
 indigenous Raw Materials, Components, Spares, Goods in process,
 Finished Goods.
 
 6.  The Company received Show Cause Notices in the year 1996 from the
 Commissioner of Commercial Taxes for the Years from 1978-79 to 1985-86
 and 1987-88 seeking to revise the orders of Sales Tax Appellate
 Tribunal / Appellate Deputy Commissioner, allowing exemption on stock
 transfers made to the Depots for the above years in the appeals filed
 by the Company. The Sales Tax Department also filed Tax Revision Cases
 for the years from 1978-79 to 1 980-81, which were set-aside by the
 High Court.
 
 For the years 1981 -82 to 1985-86 and 1987-88 however, on a reference
 on the question of Revisional Jurisdiction, to a larger Bench of A.R
 High Court, order was passed in October 2001 in favour of the Company,
 quashing the Revisional Notices issued by the Commissioner of
 Commercial Taxes.
 
 Against this, A.R Salestax Authorities have filed Special Leave
 Petitions before the Supreme Court for the above years, which have been
 admitted. The Apex Court however did not grant the departments request
 for stay of operation of High Courts order.
 
 The disputed sales tax liability in respect of these years viz. from
 1981 -82 to 1985-86 and 1987-88 is Rs.20.62 Crores which remains to be
 provided for.
 
 In respect of the completed assessments for the subsequent years viz.,
 1988-89 to 2006-07 no such liability arose as the Assessing Authority
 himself has allowed exemption of sales-tax on the stock transfers made
 by the company.
 
 7. No Provision has been made for
 
 a) Differential Sales Tax of Rs.62.68 Lakhs levied by APGST authorities
 for the period from April 2001 to September 2002, based on sales
 turnover of Companys Authorised Wholesale Dealer, treating them as
 related persons under the amended provisions of the Sales Tax Act. The
 collection of tax has been stayed by the High Court of Andhra Pradesh
 on a Writ Petition filed by the Company. The company has so far paid
 Rs.75.59 lakhs, as per the directions of the High Court under
 protest.
 
 8.  Provision of current Tax includes Provision for Fringe benefit Tax
 of Rs. 14,00 (Rs.12,80).
 
 9. Related party disclosures : Are disclosed as per Accounting
 Standards 18 Associates under Common Control: a) Panasonic Corporation
 
 b) Panasonic Energy India Co. Ltd.
 
 c) Panasonic Carbon India Co. Ltd.
 
 d) Panasonic Home Appliances India Co. Ltd.,
 
 e) Sindoori Travels
 
 f) Apollo Hospitals & Enterprises Ltd.,
 
 g) Zodiac Travels Pvt. Ltd., h) Salora International Ltd., i) Essjay
 Ericsson R Ltd
 
 j) Sindhya Aqua Minerale Private Limited
 
 k) Keesara Plastics Pvt. Ltd.,
 
 I) Safe Corrugated Containers Pvt. Ltd.,
 
 m) Associated Electrical Agencies - Chennai and Branches
 
 n) Apex Agencies
 
 o) Kalpatharu Enterprises Pvt. Ltd.,
 
 p) R. R Electronics
 
 q) JSK Marketing Pvt. Ltd.
 
 r) Sab Electronics Pvt. Ltd.,
 
 s) Radiohms Agencies
 
 t) Radiohms Agencies Ltd.
 
 u) R Obul Reddy & Sons
 
 Key Managerial Personnel Mr. P. Obul Reddy
 
 Mr. S.R.Jiwarajka Relatives of Key Managerial Mr. P Dwarakanath Reddy
 S/o.Mr.P.Obul Reddy
 
 Mr. K.K.Jiwarajka, S/o. Mr. S. R. Jiwarajka
 
 10.  Confirmation of Balances in respect of Debtors, Loans and
 Advances, Creditors etc., remains to be received in some cases.
 
 11.  Figures has been given in Thousands of Rupees.
 
 12.  Figures in brackets in the Notes on Accounts refer to those of the
 previous year.
 
 13.  Figures for the previous year have been regrouped wherever
 necessary to conform to those of the Current Year.
 
 14.  Schedules 1 to 11 form an integral part of the Accounts and have
 been duly authenticated.