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2015 2014
Rs. Rs.
1. Contingent Liabilities not provided for:
(i) Claims for Sales Tax/Excise/Service tax
not accepted by the Company for which
appeals are pending. 3,51,30,458 3,14,50,973
(ii) Claims against the Company not
acknowledged as debts. 10,02,740 11,33,669
(iii) Export obligations not fulfilled
against EPCG licences. 86,58,000 1,92,73,000
(iv) Duty drawback claim granted and
later revoked.
(The Company has effected transfer
in financial year 12-13 of lease
hold rights) 7,04,000 7,04,000
(v) Capital Commitments on unexecuted
Contract. - 8,68,545
(vi) The Income Tax Assessments have been
completed upto the Assessment year 2013-14
and there is no demand raised by
Income tax Department.
2. In the opinion of the Board, the Current Assets, Loans and Advances
are approximately of the value stated, if realised in the ordinary
course of business. The provision for depreciation and all known
liabilities is adequate and not in excess of the amount reasonably
necessary. The financial statements indicate that the Company has
accumulated losses and the net worth has been fully eroded. The Company
has decided to focus on growth of sale in food products and has plans
to develop the presence and share in the food market and in view of the
projections in growth, the financial statements have been prepared on a
going concern basis.
3. The Company has received a notice of demand from Commercial tax
Department of Government of Karnataka of Rs. 1,91,24,546/- including
interest of Rs. 1,21,36,564/- on reversal of decision of the Karnataka
High Court by the Supreme Court of India. The Company has not made any
provision for the same as it will be approaching through the Karnataka
Photographic Association by representing before the Authorities for
relief.
4. The Companies Act, 2013 requires Companies to compute the
Depreciation based on useful lives of assets prescribed in schedule II
to the Companies Act, 2013. In current year the company has provided
for the depreciation considering the balance of useful lives of assets
as per the schedule II in terms of section 123 of the Companies Act,
2013. Accordingly the depreciation charged includes of Rs.
1,15,35,618/- due to revision in provisioning requirement as per
Companies Act 2013.
5. In respect of Fixed Assets the provision for Impairment loss has
been revised to Rs. 44,14,254/- (Previous year Rs. 61,48,923/-) on
existing Fixed Assets.
6. The Company has effected transfer of Lease Hold rights of the plot
obtained from GIDC and the sale of factory building built thereon.
However formal consent of GIDC is awaited.
7. The Company has continued the Gratuity Scheme of LIC and has made
provision for Gratuity, after considering the corpus with LIC under the
scheme, on actual ascertainment of liability.
8. The Company has unabsorbed depreciation and carried forward losses
etc available for set off under Income Tax Act 1961. However in view of
present uncertainty regarding generation of sufficient future taxable
income, Net Deferred Tax Asset in respect of related credit for the
year has not been recognised in the accounts on prudent basis.
9. The names of Micro, Small and Medium Enterprises to whom the company
owes sums exceeding Rs. 1 Lakh each and which are outstanding for more
than 30 days as at 31st March, 2015 are NIL as the vendors of the
company have not filed intimation about their recognition as "Supplier"
under the provisions of The Micro Small & Medium Enterprises Development
Act 2006.
10. The company operates mainly in food processing segment.
11. Related party relationships have been identified by the management
and relied upon by the auditors.
Transaction with Related Parties a) List of Related Parties
With whom transactions have taken place during the year
Associate Company
New Vision Imaging Private Limited
New Vision Printing Services Private Limited
La Costa Enterprises Private Limited
Cherish Specialties Limited
Key Management Personnel
A. Y Fazalbhoy
B. S. Sridhara
P. Padmanabhan
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