From Notes to Accounts :
The Honourable Supreme Court of India has upheld the interest claim of the Company against HUDCO vide their order dated 12th February 2008. The Company has recognised interest income of Rs.46.15 crores (Previous years Rs.10.63 crores) during the year under review. Computation of interest payable is disputed by HUDCO and the matter is pending before the Execution Court i.e., The High Court of Delhi. Total disputed interest income recognised by the Company till 31st March 2008 amounted to Rs.110.30 crores.
From Auditors’ Report :
(f) In our opinion, and to the best of information and according to the explanation given to us, the said accounts, give the information required by the Companies Act, 1956 in the manner so required, subject to our inability to express an opinion on the impact of disputed interest income recognised as referred to in Note 10 of Schedule K to the accounts and read with other notes, give a true and fair view :
Recognition of Sales on despatch of goods from works
Setco Automotive Ltd. — (31-3-2008)
From Accounting Policies :
(i) Sales and services are accounted for on dispatch of products from the works.
From Notes to Accounts :
The sales determined in accordance with the accounting policy followed (Refer Note 7, Schedule 17) include Rs.954.80 lacs (Rs.312.55 lacs) being sales value of dispatches in transit as on 31st March 2008. The inventory value thereof amounts to Rs.690.83 lacs (Rs.223.47 lacs).
From Auditors’ Report :
In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956; except as regards :
(i) Accounting Standard-9, which provides for recognition of revenue from sales only on transfer of significant risks and rewards of ownership to the buyer, whereas the Company has been recognising sales on dispatch of goods from works. As a result, goods in transit valued at Rs.690.83 lacs have been recognised as sales at a value of Rs.954.80 lacs. [Refer Accounting Policy 7(i) of Schedule 17 and Note 08 of Schedule 18]