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Bajaj Auto has not disclosed the guidelines for the revaluation. Also, no information has been provided on impairment or revaluation of any of the fixed assets. Following are the investments that Bajaj has revalued over the financial year 2009-10. Bajaj Auto had created a provision for diminution in the value of investments vested in the company on 1st April, 2007 by adjusting the general reserve. The corresponding deferred tax asset resulting from this diminution was also recognized at a short term gain tax rate of 33.99%. As of 2009-10, since the remaining balance of these investments had been held over a long term (over 3 years) , the deferred tax assets recognized on corresponding provision for diminution was reversed out at a special long term capital gain tax rate of 22.145%. The deferred tax asset was therefore revalued at 22.145% tax rate and the difference was adjusted in the profit and loss account. The revaluation resulted in a decrease of 2.8 crores in the value of the deferred tax asset.
In addition to the above revaluation, following are the investments that Bajaj has revalued over the financial year 2010-11. Bajaj Auto Ltd invested in PT. Bajaj Auto Indonesia (PT. BAI), a subsidiary of the company. Bajaj currently holds a 98.94% stake in the subsidiary. The subsidiary recorded considerable losses over the past years. Considering the losses and longer gestation period, the company assessed the carrying value of investments made in PT. BAI and determined an impairment amount of 102.27 crore, as a diminution in the value of investment and accordingly made a provision of the said amount.
Following are the assets that Bajaj has revalued over the financial year 2008-09: TVS recognized impairment in fixed assets. According to its annual report 2008-09, a sum of 0.20 crores was provided towards impairment of fixed assets. TVS has also recognized impairment/diminution in the value of investments.