DAEWOO MOTORS INDIA LIMITED
ANNUAL REPORT 2001-2002
THE MEMBERS OF
DAEWOO MOTORS INDIA LIMITED
(1) We have audited the attached Balance Sheet of Daewoo Motors India
limited as at 31st March 2002 and the Profit & Loss Account for the year
ended on that date annexed thereto. These financial statements are the
responsibility of the management of the Company. Our responsibility is to
express an opinion on these financial statements, based on our audit.
(2) We Conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatements. An audit includes, examining on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall Financial Statement's Presentation. We believe that our audit
provides a reasonable basis for our opinion.
(3) As required by the Manufacturing and Other Companies (Auditor's Report)
Order, 1988 issued by Company Law Board in terms of Section 227(4A) or the
Companies Act, 1956, we annex hereto a statement on the matters specified
in paragraphs 4 and 5 of the said Order. (Annexure I)
(4) a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit except for the information and explanations given in Annexure II,
which were not provided by the company. Subject to above, in our opinion,
proper books of account as required by law have been kept by the company
and the Balance Sheet dealt with by this report are in agreement with the
books of account.
b) Subject to our comments in para d (i) and (xi), in our opinion, the
Balance Sheet and Profit and Loss Account comply with the accounting
standards referred to in sub section (3 C) of section 211 of the Companies
Act, 1956 to the extent applicable.
c) Based on the Written representations received from management, we report
that none of the Directors were disqualified as on March 31, 2002 from
being appointed as Director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
d) (i) As explained in Note No. 13 of Schedule 12, the Company has
capitalized to fixed assets, the interest incurred on foreign currency
loans taken from financial institutions upto 30th June 1985 for the entire
period of the loans including
the period after the date of commencement of commercial production and
premium payable on redemption of debentures issued against the advance of
Rs. 500 Lacs received upto 30 June 1985 has also been capitalized to fixed
assets. The aforesaid method of accounting for interest adopted by the
Company is not in accordance with the method recommended by the Institute
of Chartered Accountants of India. As a result, the depreciation and loss
for the year are overstated by Rs 37.81 lacs and the accumulated debit
balance in the Profit and Loss Account and the net block of fixed assets as
at 31st March 2002 are understated and overstated respectively by Rs.
(ii) As explained in Note No. 14 of Schedule 12, the Company has
capitalized to fixed assets, the debenture issue expenses incurred on the
total issue of Rs. 1858 lacs against which advance of Rs. 500 lacs had been
received upto 30 June 1985. This is not in accordance with the Company's
policy of treating such expenditure as deferred revenue expenditure to be
written off over a period of five years. As a result, the depreciation and
loss for the year is overstated by Rs. 3.70 Lacs and the accumulated debit
balance in the Profit & Loss Account and fixed assets as 31.03.2002 are
understated and overstated respectively by Rs. 27.17 lacs.
(iii) As explained in Note No. 15 of Schedule 12, unutilised MODVAT balance
amounting to Rs. 1120.39 lacs outstanding as at 16th March 1995 lapsed with
effect from that date pursuant to a notification issued by the Central
Government. The Company's writ petition in the Supreme Court challenging
the said notifications pending for disposal, however the Supreme Court had
favourably decided a petition in the similar case of another manufacturer
in its favour. Subsequently, the Central Excise and Salt Act, 1944 has been
amended retrospectively with effect from 16th March 1995 as a result of
which the said notification lapsing the MODVAT credit is deemed to have
been made under the authority of law. The Company has been legally advised
that should it challenge the amendment in the Supreme Court, the likelihood
of a decision in its favour is high. Further, we have been informed that
the Company along with other affected manufacturers has represented to the
Government of India to withdraw the amendment and is also contemplating
legal action. In view of the aforesaid, no provision or write off has been
made in this regard. Since the final outcome of this matter is not
ascertainable at this stage, we are unable to express an opinion on the
availability or otherwise of the presently lapsed MODVAT credit. However,
had such provision been made in the accounts, the loss for the year and the
accumulated debit balance in the Profit and Loss Account as at 31st March
2002 would have been higher by Rs. 640.44 lacs and the net current assets
would have been lower by Rs. 640.44 lacs.
(iv) Reference is drawn to Note No. 19 of Schedule 12 regarding change in
accounting policy of accounting of interest regarding change in accounting
policy of accounting of interest on external commercial borrowings from
Daewoo Corporation and Daewoo Motor Co. Ltd., Korea which was previously
accounted for on accrual basis. During the last year the Company has
decided to account for the interest on external commercial borrowings on
payment basis. As a result, loss for the year is lower by Rs. 11920.99 lacs
and the debit balance in the Profit & Loss Account as on 31st March 2002 is
lower by the same amount.
(v) Reference is drawn to Note No. 20 of Schedule 12 regarding change in
accounting policy of accounting for running royalty from accrual basis to
cash basis in the last year. As a result, loss for the year is lower by Rs.
301.03 lacs and the debit balance in the Profit & Loss Account as on 31st
March 2002 is lower by 1609.05 lacs.
vi) Reference is drawn, to Note No. 21 of Schedule 12 regarding change in
accounting policy of accounting for interest on DA (Supplier Credit) from
accrual basis to cash basis in the last year. As a result, loss for the
year is lower by Rs. 1546.35 Lacs and the debit balance in the Profit &
Loss Account as on 31st March 2002 is lower by the same amount.
vii) Reference is drawn to Note No. 26 in the Schedule 12, wherein it is
mentioned that there is a difference of Rs. 809.71 lacs between the
interest on secured loans provided by the company and as stated by the
financial institutions in their loan recall letters. Had the company
provided the interest as per loan recall letters of the financial
institutions, the amount of interest on secured loans would be higher by
Rs. 809.71 lacs and the loss for the year would have been higher by the
same amount. The company has not been following the consistent policy in
reconciliation of its loans outstanding with the financial institutions.
(viii) Of the total Inter Corporate Deposits, no provision has been made
against deposits aggregating to Rs. 358.62 lacs placed with public limited
companies. In addition, an amount of Rs. 4.24 lacs is recoverable on
account of interest on some of the aforesaid deposits. The recoverability,
or otherwise, of these amounts is not determinable. We are, therefore,
unable to express an opinion on recoverability or otherwise of these
deposit, the interest accrued thereon and the consequential effect, if any,
on the loss for the year and the accumulated debit balance in the Profit
and Loss Account as 31st March 2002. However, had the provision been made
for such deposits, and interest accrued thereon, the loss for the year, and
the accumulated losses would have been higher by Rs. 392.86 lacs and net
current assets lower by Rs. 392.86 lacs;
(ix) Out of total loans and advances granted by the company, no provision
has been made against advances of Rs. 140 lacs the recoverability of which
in our opinion is doubtful. However, had the provision been made for such
advances, the loss for the year, and the accumulated losses would have been
higher by Rs. 140 lacs and net current assets lower by Rs. 140 lacs;
(x) The company has not charged depreciation on it's Engine and Transaxle
Plant during the year. Had the company provided depreciation on all its
assets, the loss for the year would have been higher by Rs. 11465.45 lacs
and the net block of the fixed assets would have been lower by the same
(xi) As per Accounting Standard 10 issued by the Institute of Chartered
Accountants of India, items of fixed assets that have been retired from
active use and are held for disposal should be stated at lower of their net
book value and net realizable value and shown separately in the financial
statements. The company has shutdown it's Engine and Transaxle Plant during
the year. Since we have no details of the net realizable value of the
Engine and Transaxle Plant, we are unable to quantify the impact of non-
compliance of the above accounting standard. The net block of the engine
and Transaxle plant is Rs. 234384.34 lacs. as on 31st March 2002.
(xii) Reference is drawn to Note No. 23 of Schedule 12 regarding the non-
fulfillment of obligation for export and the consequent possible liability
towards payment of customs duty, interest and penalty, if levied. The
company has not made any provision in this regard. Considering the
available trends till date and other relevant factors, we are unable to
assess whether the company would be able to meet the entire future
obligations in this regard and, therefore we are unable to quantify the
consequent shortfall/liability on this account, if any.
(xiii) The Company has written off certain assets treating these as scrap
by De-capitalization of Plant & Machinery of Light Commercial Vehicles
Plant (LCVP). The gross block of these assets was originally shown as Rs.
2660.38 lacs and on inquiry the amount was revised to Rs. 1976.47 lacs. By
scrapping the plant the company has incurred an unusual loss of Rs. 1269.25
lacs. These assets have also been sold as scrap. However compliance with
the requirements of law has not been observed, such as the company needs
the approval of the board as well as shareholders under section 293 (1)(a)
of the Companies Act, 1956. The accounting practices followed were not in
conformity with the usual practice. We were not provided a copy of
accounting manual to verify the procedure to be adopted for
decapitalization and disposal of these assets. These assets are also
subject to charge in respect of the loans taken from the financial
institutions. The requirements of the Companies Act, as well as loan
agreements have not been complied with.
(xiv) Attention is invited to Note No. 25 of Schedule 12, wherein Daewoo
Corporation, Korea had assigned all shares held by it to Daewoo Motors Co.
Ltd., Korea by virtue of which, Daewoo Motors Co. Ltd., Korea had now
become the holding company. This assignment has not yet been registered.
Further this year and last year we had issued a going concern questionnaire
to the company's management. No reply has been received for this year.
Replies received for last year are reproduced below:
A1 & 2. There are recurring losses to the entity. There are adverse key
As on 31.03.2001 our accumulated losses stand at Rs. 390.53 Cr as compared
with accumulated depreciation on 478.46 Cr. This shows that predepreciation
our accumulated profit is Rs. 87.93 Crores. Current year loss of Rs. 196.41
Crore has arisen primarily on account of drop in turnover due to the news
of financial difficulties that affected Daewoo, Korea in mid 200. However
with the signing of MOU between General Motors Corporation and Daewoo,
Korea it is expected that the customer confidence will be restored and we
will achieve growing production volume and turnover.
We are working on a Restructuring package comprising financial supports
including waiver /restructuring /conversion from Daewoo, Korea.
A3. There have been instances, of late of default in payment of
In the first nine-month of financial year, there have been no defaults in
payments of interest and in the repayment of principal. Defaults started
only in last quarter of financial year due to liquidity crunch. However,
the company is still making part payments and is closely working with
financial institutions on rescheduling / assistance package. Financial
Institutions are positively inclined towards this proposal.
A4. The company is carrying excessive and obsolete stocks.
As regard the excessive stock we would like to highlight that in the year
200-01 our inventory level has gone down from 2.46 months in 199900 to 1.99
months in 2000-01. This level of inventory is essential for supporting
market needs & building customer confidence.
Inventory of the company is not obsolete and is usable for existing and
A5 What are the terms of carrying out transactions with GM. Will they not
be less favourable than what they are now.
As part of MOU between GM and Daewoo, Korea Chown won plant has been taken
overby GM, which is the main source of supply for CKD, parts and materials
to DMIL. This will ensure continuity and viability of supplies of
components/ materials to DMIL. GM has also agreed for supplies of
technology /parts/CKD to us.
B1. There has been loss of key management and staff.
The company is fully equipped with quality manpower to surmount the
challenging being faced by the company. All the key positions are held by
professionals having requisite quality and international experience.
Certain reduction in manpower has been made with conscious efforts for
rightsizing the organisation strength.
B2. The company is dependent on Korea for it's supplies. What is the
assurance that the raw materials and spares would be available to the
company so that production of the car is not affected? Will GM honour the
commitments of erstwhile Korean Company
Please refer to our observation at A.5 above.
What are the conditions that led to closure of the engine and transaxle
plant? Have all the legal issues regarding closure and employees dues etc.
have been settled. How much the company wishes to values its investment of
around Rs. 2200 crores in the ETA plant as on date. How the short fall is
to be provided.
The decline in export demand has resulted in closure of engine & TA plant.
All legal issues regarding closure and employees dues has been settled with
necessary approvals from appropriate Government authorities. The company is
exploring options including sale of ETA plant and negotiation in this
regard are on with respective parties.
C2. The company has considerable export obligations to fulfil Non-
fulfillment of the export obligations would involve stringent financial
pressure on the company. In the current scenario the fulfilment of export
obligations looks difficult by Aug 2003.
The export obligation is excessive. In view of the India becoming the
member of WTO and also having regard to liberalization measures taken by
the government. We hope that the Govt. will appreciate real concern of the
company and allow either further extension or reduction in export
obligations. In the past also Govt. has extended time for fulfillment of
export obligations, which reflects Govt.'s objectivity and concern on the
The company would have turned a potentially sick company had the accounts
been made on accrual basis.
Accounts have been made up on accrual basis except for interest and royalty
to Korea. Rationale behind adopting cash basis for these items is:
a. No interest has been ever paid or demanded in the past.
b. In the past interest has been waived.
c. The company is vigorously following up for waivers, which has been
delayed due to current restructuring going on in Korea.
We are hopeful forgetting these waivers in due course.
We are strongly of the opinion that accounting these items on cash basis
will be more reflective of true and fair view of the company financial
What are the terms in the agreement with GM for upgradation of technology
so that the cars of company do not become obsolete?
Please refer to our observation at B2 above.
Whether the terms of the loans from the parent company regarding repayment
of interest and principal etc. would now be strictly enforced by the new
In the current scenario, loans and investments by Daewoo Korea to/ in DMIL
have not been taken over by GM. DMIL's restructuring effort are being
considered by Daewoo Korea and are expected to be fructified in near
D1. What are the management plants to mitigate the hardships faced by the
company. What are the chances of success of such a plan?
The Company is working vigorously on restructuring / rehabilitation package
with Daewoo Korea as well as with Indian FI's and Banks. We are very
hopeful of waivers / restructuring from Korea and re-schedulement/
conversion form Indian FI's and Banks.
D2. Confirmation of existence, legality and enforceability of arrangements
to provide or maintain financial support with related and third parties,
and assessment of the financial abilities of such parties to provide
The company is working on restructuring and rehabilitation package with
Daewoo, Korea as well as Indian FI's and Banks. We are not seeking, at
present, any additional fund from any related parties.
D3. What is the management plan to counter the negative image of Daewoo as
a company in market.
The company is coming out with media campaign to disseminate awareness
about GM, Daewoo collaboration at Korea. And consequent rehabilitation of
DWMC Korea with a view to allay any fear or confusion regarding long term
viability of the company and its products.
In view of the fact that all the management's perceptions regarding the
company have not proved true, and the production in the car plant of the
company having been stopped during the year under audit and taking
cognizance of public notice dated 20th November 2002 of Mumbai Debt
Recovery Tribunal No. III, in original application No. 162 of 2002, in the
matter of ICICI Bank Limited Versus Daewoo Motors India Limited and Ors.,
where offers have been invited for bid of suit properties of Daewoo Motors
India Limited on "as is where is basis" and "as is what is basis" subject
to the sanction of the Debt Recovery Tribunal, Mumbai and taking other
qualifications in this report in totality, we are of the opinion that the
company does no longer conform to the concept of going concern.
(xv) Notwithstanding the observations in d (xi) to d (xiv) above, we
further report that had the observations made by us in paragraphs d (i) to
d (x) above been considered, the loss for the year would have been Rs.
59663.88 lacs (as against the reported figure of Rs. 32518.86 lacs) and the
accumulated losses would have been Rs. 86919.81 lacs (as against the
reported figure of Rs. 71571.71 lacs). The net block of fixed assets would
have been Rs. 347728.93 lacs (as against the reported figure of Rs.
359461.43 lacs). The net current assets would have been Rs. 4921.93 lacs
(as against the reported figure of Rs. 6065.23 lacs) and the secured loans
would have been Rs. 311496.7 lacs as against the reported figure of Rs.
(xii) Subject to above, in our opinion and to the best of our information
and according to the explanations given to us, the said accounts give the
information required by the Companies Act, 1956 in the manner so required.
However in view of substantial uncertainties as explained in preceding
paras, we are unable to state whether the accounts give a true and fair
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2002, and
(ii) In the case of the Profit and Loss Account of the loss of the Company
for the year ended on that date.
For V. Malik & Associates
Place: New Delhi Vipin Malik
Dated: 25th November, 2002 (Proprietor)
ANNEXURE I TO THE AUDITORS REPORT (REFERRED TO IN PARAGRAPH 1 OF OUR REPORT
OF EVEN DATE)
1. The company has maintained proper records, including quantitative
details and situation of its fixed assets, but not to the full extent. As
explained to us, the Company has a programme of physically verifying its
fixed assets once in every three years. However the details relating to
certain assets are not updated as to when they are scrapped, sold, disposed
off, transferred to other locations and plants or otherwise consumed. The
verification of fixed assets was also carried out by the receiver appointed
by the Debt Recovery Tribunal but we do not have details of the same hence
we are unable to comment on the quantitative details of the fixed assets.
2. None of the fixed assets of the Company have been revalued during the
3. The stocks of finished goods, stores, spare parts, raw materials and
components, other than stocks lying with third parties at the year-end for
which confirmations have been obtained and physically verified during the
year by the managements and also by the Receiver appointed by the Debt
Recovery Tribunal NO. III, we do not have details of the same.
4. In our opinion, the procedures of physical verification of stocks
followed by the management ate reasonable and adequate in relation to the
size of the Company and the nature of its business. We have been explained
that the stocks were also verified by the Receiver appointed by Debt
Recovery Tribunal No. III but we do not have the details of the same.
5. Due to the considerably large number of items, individuals issue of raw
materials, stores, spare parts and components, are not recorded and hence
book balances are not available for comparison with physical balances of
these items. However, since inventories have been valued on the basis of
physically verified stocks, the discrepancies, if any, have been adjusted
in the accounts. In respect of finished goods, the discrepancies between
physical balances and book records were not material and have been properly
dealt with in the books of account.
6. In our opinion, the valuation of stocks is fair and proper in accordance
with normally accepted accounting principles and is on the same basis as in
the preceding year.
7. We have informed that no loans have been taken from companies, firms and
other parties listed in the Register maintained under section 301 of the
Companies Act, 1956. Further, in our opinion and according to the
information and explanations given to us, the rate of interest and other
terms and conditions on which the Company has taken loans from companies
under the same management as defined under section 370 (1-B) of the
Companies Act, 1956, are not prima facie, prejudicial to the interests of
8. In our opinion and according to the information and explanations given
to us, the rate of interest and other terms and conditions on which loans
have been granted to companies, firms and other parties listed in the
register maintained under section 301 of the Companies Act, 1956 are not,
prima facie, prejudicial to the interests of the company. We have been
informed that no loans have been granted to companies under the same
management as defined under section 370(1-B) of the Companies Act.
9. The parties to whom loans or advances in the nature of loans have been
given by the Company are generally repaying the principal amounts as
stipulated and are also generally regular in the payment of interest where
applicable, except in respect of inter-corporate deposits and loans given
to employees who are no longer in employment with the Company, aggregating
to Rs. 2601.85 lacs and interest of Rs. 832.85 lacs accrued thereon as at
the year end, where the recoveries have not been as per stipulated terms.
We have been informed that appropriate steps have been/are being taken by
the Company for recovery of the principal amounts and / or interest
10. In our opinion and according to the information and explanations given
to us, considering the fact that certain items of inventory are for
specific requirements of the Company and no alternative quotations are
available, there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business for the purchase of
stores, raw materials including components, plant and machinery, equipment
and other assets, and for the sale of goods.
11. In our opinion and according to the information and explanations given
to us, the transactions of purchase of goods and materials and sale of
goods, materials and services made in pursuance of contracts or
arrangements entered in the Register maintained under section 301 of the
Companies Act, 1956 and aggregating during the year to Rs. 50000 or more in
respect of each party, have been made at prices which are reasonable having
regard to prevailing market prices for such goods and materials or the
prices at which transactions for similar goods or materials have been made
with other parties, except for items stated to be of a specialised nature
for which there are not alternate sources of supply to enable a comparison
of the prices paid.
12. As explained to us, the Company has a system for determining
unserviceable or damaged stores and spare parts, raw materials and
components and finished goods and adequate provisions have been made for
such stocks in the accounts.
13. In our opinion and according to information and explanations given to
us, the Company has complied with the provisions of section 58A of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975
with regard to the deposits accepted from the public.
14. In our opinion, reasonable records have been maintained by the Company
for the sale and disposal of realisable scrap. We have been informed that
the Company's operations do not generate any realisable by-products.
However it was noticed during the course of this year's audit that the
Company has scrapped certain fixed assets and sold the same as scrap
without any approvals, which is not correct accounting policy.
15. The Company has an internal audit system, which is commensurate with
the sizes of the Company and the nature of its business.
16. We have broadly reviewed the books of accounts maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies Act,
1956 and are of the opinion that, prima facie, the prescribed accounts and
records have been maintained.
17. According to the records of the Company examined by us, the Company has
generally been regular in depositing provident fund and Employees State
Insurance dues with the appropriate authorities.
18. We have been informed that there are no undisputed amounts payable in
respect of income tax, wealth tax, sales tax, customs duty and excise duty
as at 31 March 2002 which are outstanding for a period of more than six
months from the date they became payable.
19. According to the information and explanations given to us and the
records of the Company examined by us, no personal expenses have been
charged to the revenue account, other than those payable under contractual
obligations or in accordance with generally accepted business practices.
20. In view of our Note No. (xv) in the auditors report, we are unable to
state whether the Company is a sick industrial company within the meaning
of clause (o) of the sub-section (1 of section 3 of the Sick Industrial
Companies (Special Provisions) Act, 1985.
21. In respect of the Company's trading activities, adequate provision had
been made for the damaged goods identified.
For V. Malik & Associates
Place: New Delhi Vipin Malik
Dated: 25th November, 2002 (Proprietor)
ANNEXURE TO THE AUDITORS REPORT
List of information/ Explanations which were not provided for verification
1. Documentation for Working Capital Loans amounting to Rs. 15053.44 lacs
have not been provided and any penalty or penal interest, which may become
due on these accounts, could not be verified.
2. Balance confirmations were not provided in respect of secured and
Debtors and creditors
1. Confirmation letters were not received from debtors amounting to Rs.
4543.10 lacs and creditors amounting to Rs. 2469.02 lacs.
At any given time the individual debtors of the company cannot be
ascertained from the computerised books of accounts maintained by the
Vouchers and other books keying records
1. Certain vouchers for Chennai Branch Accounts were not produced for
2. Certain vouchers were not signed by the approving authorities, further
certain vouchers were not available for verification.
Details not provided
1. Basis for provision on inventory
2. Schedule for security paid.
3. Schedule for retention money.
4. Sales tax Expenses.
5. Wealth Tax Provision.
6. Margin Money.
7. Details of legal expenses.
8. Details of consultancy expenses.
9. Shortfalls in secretarial practices noticed during the course of audit
are highlighted below:-
a. The application for approval of remuneration of Mr. Y.C. Kim has been
rejected by the Central Govt. The application has been again submitted to
the Central Govt. on 24.05.01 but the grounds, on which the application has
been made, are no longer sustainable. It may be further noted that he has
resigned from the directorship. Therefore, it is difficult to say whether
the application will be approved by Central Govt. or not. The board was not
informed of the full developments in this regards. During the year the
company has paid Rs.1,50,048.00 in excess of limits laid down in Schedule
XIII of the Companies Act, 1956.
b. Central Govt. has rejected the application for approval of appointment
and remuneration of Mr. YT Cho, ex-Managing Director and CEO, of the
Company. The company has again made the application to Central Govt. on
26th June, 2002 and no reply has been received till date. Practice of
making application for treating the managerial remuneration issue alive &
outstanding for sanction and payment in our opinion is not a good corporate
practice. During the year, the company has paid Rs. 5,83,538.00 in excess
of limits laid down in Schedule XIII of the Companies Act, 1956.
For V. Malik & Associates
Place : New Delhi Vipin Malik
Dated : 25th November, 2002 (Proprietor)
1. The above Cash flow statement has been prepared under the indirect
method setout in AS-3 issued by the institute of Chartered Accountants of
2. Figures in brackets indicate cash outgo.
3. Previous period figures have been regrouped and recast wherever
necessary to conform to the current period classification.
4. Following non cash transactions have not been considered in the cash
- Tax deducted at source (on income)
- Assets acquired on credit / lease / hire purchase - Others
5. Cash and cash equivalents includes Rs.49.73 lacs which are not available
for use by the Company. (Refer schedule 6 of the financial statements)
The above Cash Flow Statement has been compiled from and is based on the
audited accounts of Daewoo Motors India Limited for the year ended 31st
March 2002 reported upon by us on 25.11.2002, According to the information
and explanations given together with the notes thereon/attached thereto and
the Schedule of Significant Accounting Policies, the aforesaid Cash Flow
Statement has been prepared in consonance with the requirements of the
Accounting Standard (AS)-3 on Cash Flow Statements issued by the Institute
of Chartered Accountants of India and the reallocations required far the
purpose arc as made by the Company.
For V MALIK & ASSOCIATES
Place : New Delhi VIPIN MALIK
Dated : 25.11.02 Propreitor