| 1. Previous Period
Previous period figures have been regrouped and/or rearranged.
2. Amount in the financial statements are presented in Rupees
thousands, except as otherwise stated
3. The Operations at the Textile Processing Machinery Division at
Baroda have been suspended. The unit has been given on lease. In
pursuance of the approval obtained from the shareholders in the Annual
General Meeting held on 12.10.2012, the Company after scrutiny of the
offers received for sale of undertaking of the textile machinery
division at Baroda has entered in to an MOU with a leading machinery
manufacturer for sale of Textile Machinery Division.
4.The Company is continuing its endeavors foray into the consent of
the Industrial Estate development as well as redevelopment of real
estate projects. The company is taking necessary steps including
securing the approval from various authorities for commencement of real
estate development.
5 Although the net worth of the company has been fully eroded due to
losses incurred, the net worth of the company is being effectively
improved by infusion of promoter from time to time. Certain surplus
capital assets and the suspended unit at Baroda have been sold/or in
the process of being sold, the proceeds of the same have been utilized
for clearance of residual liabilities with a initiative to make the
company totally debt free and liability free. The total liabilities and
majority of the current liabilities have been settled. The Promoters
are endearing to clear the balance liabilities by taking adequate
necessary steps. The Company is hopeful with the proposal to enter into
new areas of operations without fructify in the ensuing years. The
foray in to new areas of operations is expected to generate adequate
additional profits which would wipe out the existing losses.
6.In view of the positive developments as above and special
circumstances, the accounts of the company are continued to be prepared
on going concern basis and consequently no adjustment have made to the
carrying values of modification/classification of Balance sheet
account.
7. Disclosure under Micro, Small and Medium Enterprises Development
Act, 2006 (MSMED)
The management has not yet identified enterprises which have provided
goods & services to the Company and which qualify under the definition
of medium &small enterprises. as defined under micro,small and medium
enterprises Development Act.2006.
8. Segment Reporting
The Company is mainly engaged in the business of manufacturing of
Textile Processing Machineries. All other activities of the Company
revolve around the main business, and as such, there are no separate
reportable segments as required in Accounting standard 17(AS-17)on
Segment Reporting"notified by the Companies(Accounting
Standards)Rule,2006.
9. Related Party Disclosures
As per Accounting Standard (AS-18) on "Related Party Disclosure"
notified by the companies(Accounting Standards)Rules,2006,the
disclosure of transaction with the related parties are given below:
a) List of Related Parties with whom transactions have taken place and
relationship:
Name of Related Party Relationship
i) Venkatramana Food Specialities Ltd. Associate Company
ii) Mr. Gordhanlal Phalore Key Management Personnel
Note: Related party relationship is as identified by the Company and
relied upon by the Auditors.
b) Transactions during the period with related parties :
10. Deferred Taxation
In accordance with Accounting Standard 22 (AS-22) on "Accounting for
Tax on Income"notified by the companies(Accounting Standards)Rules,
2006,deferred tax assets are constituting mainly of carried forward
losses and disallowance of expenses. Deferred Tax Liabilities are
constituting mainly of excess depreciation & expenditure claimed in tax
computation The Company has substantial unabsorbed depreciation and
carry forward losses under the income tax Act 1961. However ,the
availability of sufficient future taxable income against which such
depreciation and losses can be set off cannot be stated to be virtually
certain. Hence deferred tax asset has not been recognised.
11. Contingent Liabilities
a) The Income Tax Demands of earlier years have been nullified /
set-aside by the various orders of the Appellate Authorities. The
Company is confident in securing complete relief. Hence the Board is of
the opinion that there is no liability, contingent or otherwise, in
respect of the above.
b) In respect of export obligations, the Company has been advised that
the export obligation can be set-off against exports executed by the
Company in respect of other products in earlier years. Necessary
application have already been filed with the appropriate authorities
under the applicable Foreign Trade Regulations. The Board is advised
that there would be no liability, contingent or otherwise, in respect
of the above transaction.
12. Licensed and Installed Capacity
The Company is Small Scale Industrial undertaking engaged in
manufacturing of various types of Textile/Chemical/Food processing
machinery produced as per the specification, hence the
Licensed/Installed Capacities can not be quantified.
13. i) Balance of Trade Receivables and Trade Payables including
advance to suppliers are subject to confirmation.
ii) Except stated otherwise, in the opinion of the Management, the
Short-term Loans and Advances, Other Non-current Assets are
approximately of the value stated, if realized in the ordinary course
of business. Provision for all known liabilities are adequate and
neither in excess or nor in short of the amount reasonably necessary.
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