By Himanshu V. Kishnadwala | Chartered Accountant
2. Nestle India Ltd. — (31-12-2009)
From Notes to Accounts :
The Company has created a contingency provision of Rs.457,181 thousands (previous year Rs.325,882 thousands) for various contingencies resulting mainly from matters, which are under litigation/dispute and other uncertainties requiring management judgment. The Company has also reversed/utilised contingency provision of Rs.133,980 thousands (previous year Rs.20,966 thousands) due to the satisfactory settlement of certain disputes for which provision was no longer required. The details of classwise provisions are given below :
Notes:
(a) `Litigations and related disputes — represents estimates made mainly for probable claims arising out of litigations/disputes pending with authorities under various statutes (i.e., Income Tax, Excise Duty, Service Tax, Sales and Purchase Tax, etc.). The provability and the timing of the outflow with regard to these matters depend on the ultimate settlement/conclusion with the relevant authorities.
(b) Others — include estimates made for products sold by the Company which are covered under free replacement warranty on becoming unfit for human consumption during the prescribed shelf life, investments held by the employee benefit trusts and other uncertainties requiring management judgment. The timing and probability of outflow with regard to these matters will depend on the external environment and the consequent decision/conclusion by the management.
3. Fulford India Ltd. — (31-12-2009)
From Notes to Accounts :
Provisions, Contingent Liabilities and Contingent Assets Disclosure for the year December 31, 2009 :
The Company has an understanding with trade associations, based on prevailing trade practices, for the replacement of its date-expired and damaged products upon return of such products subject to certain terms and conditions. With effect from the current financial year; the Company has also opted to replace such products by way of credit notes issued. Provision for replacement of such products of the Company is made, based on the best estimates of the management taking into consideration the type of products sold, the likely returns and the costs required to be incurred for such replacements.
The movement in the provision for such costs is as under :
4. Pfizer Ltd. — (30-11-2009)
From Notes to Accounts :
Personnel-related provisions :
Personnel-related provision at the beginning of the year have been settled based on completion of negotiations and execution of the new contract.
The Company has made provision for pending assessment in respect of duties and other levies, the outflow of which would depend on the outcome of the respective events.
The movement in the above provisions are summarised as under :
