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Financial Reporting and Analysis

Impairment of Fixed Assets and Investments

27 crore. The subsidiary recorded considerable losses over the past years.  Bajaj Auto had created a provision for diminution in the value of investments vested in the company on 1st April. other than those with a maturity of less than one year and those intended to be held for less than one year. following are the investments that Bajaj has revalued over the financial year 2010-11. are stated at lower of cost or fair value. The revaluation resulted in a decrease of 2. since the remaining balance of these investments had been held over a long term (over 3 years) . BAI and determined an impairment amount of 102. appropriate provisions are made.145%.99%. the company assessed the carrying value of investments made in PT.8 crores in the value of the deferred tax asset. Bajaj Auto Indonesia (PT.e. the deferred tax assets recognized on corresponding provision for diminution was reversed out at a special long term capital gain tax rate of 22.94% stake in the subsidiary. The company does not consider the diminution in the value of investments made by the company.  Bajaj Auto Ltd invested in PT. Bajaj currently holds a 98.Bajaj Auto Ltd Accounting policy of Bajaj Auto Ltd regarding revaluation  The management of Bajaj Auto Ltd has laid out certain guidelines for the purpose of assessing likely impairments in investments and for making provisions based on given criteria. . representing fixed income securities with a maturity less than 1 year and investment not intended to be held for a period more than 1 year.  In addition to the above revaluation. The deferred tax asset was therefore revalued at 22. Current investments. BAI). Following are the investments that Bajaj has revalued over the financial year 2009-10.   Bajaj Auto has not disclosed the guidelines for the revaluation. to be of a permanent nature. Considering the losses and longer gestation period.145% tax rate and the difference was adjusted in the profit and loss account. The corresponding deferred tax asset resulting from this diminution was also recognized at a short term gain tax rate of 33. a subsidiary of the company. As of 2009-10. Based on these guidelines. as a diminution in the value of investment and accordingly made a provision of the said amount. Also. no information has been provided on impairment or revaluation of any of the fixed assets. that are of long term nature i. 2007 by adjusting the general reserve.

According to its annual report 2008-09. a sum of 0.  .TVS Motor Company Ltd Accounting policy of TVS Motor Company Ltd regarding revaluation  Investments are valued at cost. Following are the assets that Bajaj has revalued over the financial year 2008-09:  TVS recognized impairment in fixed assets. Provision for diminution in the carrying cost of investments is made if such diminution is other than temporary in nature in the opinion of the management. TVS has also recognized impairment/diminution in the value of investments.20 crores was provided towards impairment of fixed assets.