Bajaj Auto Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2020
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2020
1. The Company, during the year ended 31 March 2015, had expensed off the payments made towards deposit of ‘National Calamity Contingent Duty’ (NCCD) and applicable education cess and secondary and higher education cess thereon, together with interest and penalty amounting to Rs. 342.00 crore for the period from 1 April 2007 to 30 September 2014, pursuant to an order from the Honourable High Court of Uttarakhand on 9 October 2014 that the levy of NCCD is out of the purview of exemptions granted to the Company under the scheme of incentives for industries in certain identified growth areas in Uttarakhand.
In the previous year, pursuant to a special leave petition filed by the Company, the Honourable Supreme Court vide its judgement dtd. 27 March 2019 had held that the Company is not liable to pay NCCD, education cess and secondary and higher education cess; and set aside the orders of Division Bench of the Honourable High Court of Uttarakhand and quashed the show cause notices. The Company had accordingly reversed the charge of Rs. 342.00 crore as an exceptional item in the previous year; and had disclosed the corresponding amount in the Balance Sheet as “Deposits receivable from the Government". During current year, the Company has received the refund of the said amount from the Excise authorities.
2. Pursuant to The Taxation Laws (Amendment) Ordinance 2019, promulgated on 20 September 2019, the Company intends to exercise the option permitted u/s 115BAA of the Income Tax Act, 1961 to compute income tax at the revised rate (i.e 25.17%) from the current financial year.
3. The Company has considered the possible effects that may result from the global health pandemic relating to COVID-19 on its operations. In developing the assumptions relating to the possible future uncertainties in the economic conditions because of this pandemic, the Company, as at the date of approval of these financial statements has used internal sources of information and market based intelligence to arrive at its estimates.
4. Figures for previous year / period have been regrouped wherever necessary.
5. During the quarter, the Board of Directors declared an interim dividend of 1120 per equity share (1200%) at its meeting held on 21 February 2020 and the same is paid to eligible shareholders on 9 March 2020. The interim dividend has been considered as final dividend for the year ended 31 March 2020.
6. The figures of the last quarter are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the current financial year, which were subjected to a limited review.
7. The above results have been reviewed by the Audit Committee and approved by the Board of Directors in the meeting held on 20 May 2020.