Prestige Foods Ltd. के अकाउंट के लिये नोट

Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. NIL

2. Contingent Liabilities

2009-10 2008-09 (In Rs.) (In Rs.)

a) Claims against the Company not 9108057 9108057 acknowledged as debts

b) Central Excise Demand under 1890323 1890323 Appeal

c) Sales Tax/Central Sales Tax 6437292 7042866 & Entry Tax demand under appeal

d) Demand ofProvident Fund under 301128 401128 Appeal

3. (a) The Company provides depreciation on fixed assets on straight-line method in accordance with the provisions of section 205(2)(b) of the Schedule XIV to the Companies Act, 1956. Consequent upon revision of rates in respect of certain class of assets vide notification dated 16/12/93 and circular No. 12/93 issued by Department of Company Affairs the rate of depreciation on assets acquired before 01/04/94 have also been revised without recomputing the specified period. Forthe purpose of providing appropriate rate of depreciation on plant and machinery falling under the category of continuous Process Plant, the Company has relied upon the technical opinion obtained. b) No depreciation on revaluation of.assets has been provided during the year in view of depreciation already provided 95% of its revalued cost.

4. a) The Company has filed appeal/revision Appellate Authority against sales tax demand in unit No. I (Prestige Foods), of Rs.64.37 Lacs for the year 2003-2004 to 2004-2005 which is pending and included under the contingent liability in 2(d) above. b) In view of Power Purchase Agreements for purchase of wind power in Companys Unit Unit No.Ill (Prestige Vanaspati Industries) the Company has claimed exemption from Commercial Tax under Notification No.A-3-32-94-ST-V(5) dated 28/02/95. Accordingly liability determined by department from 1995-96 to 2002-03 of Rs. 175.59 Lacs has not been made by the Company due to exemption was available in the relevant years. Though the Companys application for the said exemption is under process before appropriate authorities, the Company does not expect any commercial tax liability to arise.

c) A fire accident occurred in the assessment year 2000-01 & 2001-02 and consequently plant remained closed fora period of 102 days. As this period was within the exemption period the company had applied for extension of exemption period by 102 days. Although the assessing officer has raised a demand of Rs.39.16 Lacs, the company expects that the same will not survive in the view of its representation to the State Government which is under their active consideration. In view of the above no liability has been provided in the books of accounts.

d) Pursuant to the Sanctioned Scheme circulated by BIFR on 31st January 2002 and order issued by Madhya Pradesh State Government Company has been declared as "Relief Undertaking" vide notification no. F-15-9/99/11/D-B dated 13th May 2003 for a period of one year from 01/04/2002 to 31/03/2003 and subsequently it has been extended for further period up to 31/03/2009. Companys application for renewal of status as "Relief Undertaking" for a further period of one year is under consideration before the appropriate authority.

5. Accounts of certain debtors, Loans and Advances and creditors are subject to reconciliation, pending confirmation of balances.

6. Interest on unsecured loans from other Companies / Firms has not been provided.

7. In the opinion of the Board the Current Assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated and that provision for liabilities is adequate and not in excess of the amount considered reasonable and necessary. There are no contingent liabilities other than those stated above.

8. Loans and advances Include Rs.18.15 Lacs (previous year Rs. 18.15 Lacs) given to Firms/ Companies in which some of the Directors are interested, Interest whereof calculated @ 10% p.a. (previous year 10% p.a.) at Rs.1.82 Lacs has not been provided. (Previous year Rs. 1.82 Lacs).

9. The company has an outstanding of investor education & protection funds of Rs.6.96 lacs (after transferring Rs.98.73 Lacs in previous year to General reserve ) which has still not been transfer to the Investor & Education Protection fund as required U/s 205 (A) of the companies Acf 1956 as the details are being asked from banks to reconcile the Accounts balances with books of Accounts.

10. (a) In view of brought forward losses and depreciation, no provision for Income Tax has been made during the year (b) In accordance with Accounting Standard 22 "Accounting for taxes on income" issued by the Institute of Chartered Accountants of India which has become mandatory from 01.04.2001, the Company has to account for the deferred tax assets/liability. While making the calculation the Company has to account for the deferred tax assets (net), to the extent of Rs.1017.50 Lacs (previous year Rs. 1012.85 Lacs). However, in view of heavy losses and since there is no reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized no adjustment of deferred tax assets has been accounted during the year.

11. (i) Prior year adjustment includes various amounts written off which were shown as receivables/payables in earlier years and constitute various income/expenses pertaining to earlier years determined and adjusted during the year Rs.3.86 lacs (previous year Rs.2.64 lacs). (ii) Duty draw back claim of Rs. 11.05 lacs related to earlier year.

12. (i) The Company has provided its liability towards gratuity as per demand made by LIC and has debited the amount to profit & loss account as per revised AS-15 (ii) The company has made its payment of leave encashment on payment basis yearly and no provision has been made separately

(iii) All the defined contribution plans are debited to profit & loss account.

(iv) Separate disclosure as required by AS -15 have not been given

13. The Company has been declared as sick Industrial Company u/s 15 of SICA, 1985. The units of the Company are in operation and the rehabilitation Scheme is under implementation

14. a) There are no dues to small-scale industrial undertaking as at the yearend.

b) The Company is still in the process of identifying the Micro, Small & Medium enterprises, As defined under the "Micro, Small & Medium Enterprises Development act 2006", hence The disclosure in this regard as per schedule VI of the companies Act 1956, have not been provided.

15 SEGMENT REPORTING

During the current year, the company deals in one line of business "Soya Products" only, hence separate disclosure of segment wise does not apply.

16. Expenditure in foreign currency-NIL previousyear(NIL)

17. Earning in Foreign Exchange-NIL previous year (NIL)

18. The company has not entered into any forward contract to offset foreign currency Transaction.

19. The company has not hedged any derivative instruments.

20. Figures of previous year have been regrouped/ rearranged/ recast Wherever considered necessary.

21. Figures have been rounded off to the nearest rupee

22. Figures in bracket relate to previous year