I)Accounting policies not specifically referred to above are
consistent with Generally Accepted Accounting Policies (GAAP)
Ib) Custom duty saved on Machinery imported against advance license
scheme as on 31st March, 2014 and 31st March, 2013 is 2136.31 lacs and
Rs 2136.31 lacs respectively. The management is of the view that the
necessary Compliance will be adhere to.
II) Company has provided Rs. NIL ( last year Rs 2.48 lacs ) as
liability on account of Anti Dumping Duty for the period 1-4-2013 to
31-3-2014 on the basis of last assessment. Difference, if any, will be
accounted for at the time of final assessment for the period.
III) Under the provisions of Accounting Standard-18 Issued by the
Institute of Chartered Accounts of India following information is
disclosed: Particulars of Transactions
V) Deferred Tax Liability
Accounting for Taxes on Income - Disclosure as per AS 22: Major
components of deferred tax assets and liabilities on account of timing
differences are as follows:
The company follows Accounting Standard -22 "Accounting for Taxes on
Income" issued by the Institute of Chartered Accountants of India.
Since there is no convincing evidence which demonstrates virtual
certainty of realization of deferred tax assets, the company has
prudently decided not to recognise deferred tax asset.
VII) SEGMENT INFORMATION
Company deals in one product i.e. export of canned mushroom. As such
Board is of the opinion that no disclosure is required as per
accounting standard 17.
Note : Write off on account of Apeda Transport Subsidy is due to
rejection of claim by the
respective agencies. As regards expense on Freight and others on recall
refer point XV below.
IX) Valuation of Work-in-Process & Finished Goods being a technical
matter has been taken as certified by the Management and Cost
Accountant.
X) As per notification of APEDA, the Company is entitled to transport
Subsidy in respect of freight on Exports made during the year. The
estimated value of Subsidy works out to NIL ( previous year Rs 17.30
lacs ) for the year 2013-14. The same amount has been considered in the
Profit & Loss account against the Ocean Freight.
Company is also entitled for C.S.T reimbursement and Duty drawback on
H.S.D under the EXIM Policy. During the year company paid Rs. 2.71 Lacs
(Previous year Rs. 33.35 Lacs) as C.S.T. The amount has been taken
under the head advance since the whole amount is reimbursable under the
above policy. Duty drawback for NIL (previous year Rs 4.24 Lacs) on
Diesel has been adjusted against consumption of diesel.
XI) On the basis of information available with the Company, regarding
the status of suppliers as defined under the "Micro Small and Medium
Enterprises Development Act 2006", total dues to suppliers as at 31st
March 2014 amounts to Rs. 74,09,527/- (Previous Year : Rs. 78,93,830/-)
Further as per information available the company has not provided any
interest on overdues amount during the period/close of the year as
required under the Act.
XII) In the opinion of the Board Current Assets, Loans & Advances are
approximately of the value stated which if realized in the ordinary
course of business except stated otherwise. The provisions for all the
known liability are adequate.
XIII) Comissioning of Can making plant at chennai is getting delayed
due to final integration of the unit, which is pending due to liquidity
problem being faced by the Company.
XIV) The Company is continously incurring substantial losses and its
net worth has been fully eroded. The entire Loan accounts of the
Company has become Non Performing/recalled/doubtfull and has been
accordingly been shown under the head 'Current Liabilities' .
Subsequent upon erosion of entire net worth, The Company filed fresh
reference to the BIFR. The same has been registered vide case no.
75/2013
The Secured Consortium Lenders have issued notice under section-13(2)
of SARFESI ACT,2002. The Company has suitably replied the same.
The Secured Lenders have decided to sell surplus and non core assets
through Asset Sale Committee & UBI Consortium.
The company expect the liquidation of the Secured Term Debts by way of
disposing the said non core and surplus assets. Further the activity of
the company shall continue with the remaining assets as going concern.
Taking into account the above facts, the financial statements have
been prepared on the basis that the company is a going concern and
that no adjustments are required to the carrying value of assets and liabilities.
XV) The Operations of the Company continued to be adversely affected
due to presence of some traces of Carbendazim in Shipments of Canned
Mushrooms to US. The said development has resulted into reduced level
of production. The freight forwarder agency has served a legal notice
of Rs. 3.75 Crores, which is towards inward and outward freight and
also includes an amount of Rs. 1.55 Crores towards detention and
demurrage charges. The Company has not made any provision towards that
detention and demurrage as the said claim is not tenable as per the
legal opinion obtained by the company.
XVI) As per the financial restructuring scheme approved by the CDR -
EG, there is no provision relating to penal interest and other charges.
As such the company has not made any provision on that account .More
over since the company is approaching BIFR , it is hopeful of suitable
package which will result in reduction
XVII) DISCLOUSERS IN ACCORDANCE WITH REVISED AS-15 ON "EMPLOYEEES
BENEFITS"
a) Defined Contribution Plan:-
The Company has recognized the following amounts in the Profit and Loss
Account for the Year:
b) Defined Benefit Plans:-
The following figures are as per actuarial valuation, as at the Balance
Sheet Date, carried out by an independent actuary.
i) A reconciliation of Opening and Closing Balances of the Present
Value of the Defined Benefit Plan (DBO).
iii) Amount recognized in Balance Sheet including a Reconciliation of
the Present Value of the Defined obligation in (a) and Fair value of
the Plan assets in (b) to the assets and liabilities recognized in the
balance sheet.
vi) The overall expected rate of return on assets is based on the
expectation of the average long term rate of return expected on
investments of the fund during the estimated term of the obligations.
vii) Following are the Principal Actuarial Assumptions used as at the
Balance Sheet Date:
The above said Rupee Term Loan/FITL/WCTL/Corporate term loans are
secured by way of pari passu first charge on the Fixed assets of the
company and Pari passu second charge on current assets of the company ,
present and future.
The above said Term Loan/WCTL/FITL ( except Foreign Currency Loans )
are further secured by way personal guarantee of two directors of the
company ( Out of which one has resigned) as well as pledge of their
100% holding ( present and future ) in the company. The said facilities
are further secured by the corporate guarantee of M/S Vishwa Calibre
Builders Pvt. Ltd. and M/S Penta Homes Pvt. Ltd . The later's guarantee
being limited to the extent of face value of 19,00,000 equity shares in
Agro Dutch Industries Limited.
The Secured Lenders (UBI Consortium) have issued a notice under section
13(2) of SARFESI ACT,2002 for repayment of Debt, Which has been
Suitably replied by the company.
The above said Working Capital Demand loan are secured by way of pari
passu first charge on the Fixed assets of the company and Pari passu
second charge on current assets of the company, present and future.
Working capital facilities are secured by way of pari passu first
charge on the current assets of the company and pari passu second
charge on the fixed asets of the company , present and future.
The above said Working Capital facilities & Working Capital Demand
Loans are further secured by way personal guarantee of two directors of
the company as well as pledge of their 100% holding ( present and
future ) in the company. The said facilities are further secured by the
corporate guarantee of M/S Vishwa Calibre Builders Pvt. Ltd. And M/S
Penta Homes Pvt. Ltd . The later's guarantee being limited to the
extent of face value of 19,00,000 equity shares in Agro Dutch
Industries Limited.
Note All term loan liabilites have become Non Performing
Assets/recalled/doubtful and as such have been shown under the head
Current Maturities of lon g term Debts.
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