ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Disastrous Account

Hansavivek RALLIS INDIA'S results are disastrous, with a net loss of Rs 1.19 crores, as against a net profit of Rs 58 lakhs previously, despite higher sales of Rs 131 crores against Rs 101 crores. The directors have changed the method of computation of depreciation from 'writ ten-down' basis to 'straight-line' basis, and have written hack the resultant excess depreciation of Rs 1.54 crores relating to past years. In addition, they have taken into account about Rs 4 lakhs being the net profit on the sale of property and the investment and development rebate ..reserve no longer required, to show a surplus of Rs 39 lakhs. As against this, they have provided Rs 1.04 crores for stock obsolescence, Rs 24 lakhs for contingencies and Rs 2 lakhs for taxation, leaving a loss of Rs 91 lakhs which has been transferred to the general reserve. The company is skipping payment of dividends on both preference and equity shares. Last year, it had paid 12 per cent on equity and also issued bonus shares on a three-for-ten basis. The auditors in their report have referred to an expenditure of Rs one lakh incurred by the management for advertisement in souvenirs issued by a political party.

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