a. Leave Salary
The Company has made provision for leave salary on actuarial valuation
basis. These being retirement benefits, an obligation to pay these
amounts might arise at the time of resignation / superannuation of the
employees. There is no reimbursement receivable against these
obligations.
b Investments
VXL Instruments Limited, U.K., a subsidiary in which the Company has
60% share holding amounting to Rs. 51,69,261/- has accumulated losses
in excess of its total paid up capital. Net receivable from VXL
Instruments Limited, U.K., as at 31st March 2015 is Rs. 4,96,36,260/-
(Rs. 5,89,13,634/-). The subsidiary company has made profit during the
current year and has remitted Rs.92,77,374/- (Rs. 76,92,894/-) towards
old dues. Considering these facts and future projections, the
management is of the opinion that no provision is deemed necessary in
respect of the Company's investment in and the amounts due to the
Company.
c Retirement Benefit Plans
1 Defined contribution plans
The Company makes Provident Fund contributions to defined contribution
retirement benefit plans for qualifying employees. Under the scheme,
the Company is required to contribute a specified percentage of the
payroll costs to fund the benefits.
The Company recognised Rs. 22,08,149/- (Rs. 21,45,585/-) for provident
fund contributions in the profit and loss account. The contributions
payable to these plans by the Company are at rates specified in the
rules of the schemes.
2 Defined benefit plans
The Company makes annual contributions to the Employees' Group
Gratuity-cum-Life Assurance Scheme Master Policy of the Life Insurance
Corporation of India, a defined benefit plan for qualifying employees.
The scheme provides for lump sum payment to vested employees at
retirement, death while in employment or on termination of employment
of an amount equivalent to 15 days salary payable for each completed
year of service or part thereof in excess of six months. Vesting occurs
upon completion of five years of service. The present value of the
defined benefit obligation and the related current service cost were
measured using the Projected Unit Credit Method, with actuarial
valuations being carried out at each balance sheet date.
The expected return on plan assets is determined considering several
applicable factors mainly the composition of the plan assets held,
assessed risks of asset management, historical results of the return on
plan assets and the Company's policy for plan asset management
The following table sets out the funded status of the gratuity plan and
the amounts recognized in the Company's financial statements as at
31.03.2015.
d Dues to Micro, Small and Medium Enterprises:
Sundry Creditors include Rs. Nil (Rs. Nil) due to Micro, Small and
Medium Enterprises. The information is determined based on the
information available with the Company. The list of SSIs to whom the
amount outstanding for more than 30 days are as under:
e Segment Information
The Company's segment information is as follows:
Primary/Secondary Segment reporting format
The risk return profile of the Company's business is determined based
on the geographical area in which it operates. Therefore, Geographical
Segments have been identified as Primary Segments Secondary Segments
have been identified on the basis of the nature of products
manufactured by the Company
Segment assets and liabilities
Fixed assets used in the Company's business and liabilities contracted
have not been identified to any of the reportable segments as the fixed
assets and services are used interchangeably between segments
f Operating Leases:
The Company has taken various residential / commercial premises under
cancelable operating leases. These lease agreements are normally
renewed on expiry. The lease agreements provide an option to the
Company to renew the lease period at the end of the period. There are
no exceptional / restrictive covenants in the lease agreements. Rent
debited to profit and loss account Rs.24,03,993/- (Rs. 30,82,970/-).
Contingent rent recognized in the Profit and Loss Account Rs. Nil.
Obligations on long-term, non-cancelable operating leases:
g Confirmation of balance under Sundry Debtors, Loans & Advances,
deposits and sundry creditors, other current liabilities are obtained.
In the opinion of the management Current assets and Loans & Advances
would in the ordinary course of business realise the values stated.
h Effective 1st April 2014, the Company depreciates its fixed assets
over the useful life prescribed in Schedule II to the Companies Act
2013 as against the earlier practice of depreciating under the rates
prescribed under the Schedule XIV to the Companies Act, 1956. Based on
technical evaluation, moulds are depreciated over 3 years which is
different from that prescribed in Schedule II of the Act. During the
year, the Company has changed the method of depreciation of fixed
assets of the Company, from written down value method to straight line
method. Consequent to the change, depreciation charge for the year is
increased by Rs. 13,86,425/- with consequential effect on reserve.
Excess depreciation on account of change in method from written down
value method to straight line method of Rs. 74,68,016/- of earlier
years is credited to statement of profit & loss account under
exceptional items
Sl. No. i: The Honorable High Court of Karnataka has directed the
Assistant Provident Commissioner to consider the grievance of the
Company for reducing the penalty
Sl. No. ii: Sl. No. b: The Company has filed the appeal before the High
Court against the order of Karnataka Appellate Tribunal in respect of
disallowances. Similarly Govt. of Karnataka has filed appeal vide STA
No. 17/2010 and 122-123/2012 dated 13th July, 2012 of High Court of
Karnataka against the relief given to the Company.
Sl. No. iii: In respect of Service Tax pending before the Commissioner
/ CESTAT the Company's Consultants are of the opinion that the Company
has good chances of winning the case since Customs is treating the
sticker labels as goods while importing and hence no provision has been
made for the same.
Sl. No. iv: Commissioner Appeals has given the Order in favour of the
Company but the Department has preferred Appeal before CESTAT
Sl. No. v: Commissioner, Customs has given the Order in favour of the
Company but the Department has appealed to CESTAT
i Figures of the previous year have been recast / regrouped /
rearranged in confirmity with the presentation of the current year.
Figures in bracket relates to the previous year.
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