Team24 Consumer Products Ltd. के अकाउंट के लिये नोट

Mar 31, 2024

x) PROVISIONS AND CONTINGENT LIABILITIES

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. When the effect of the time value of money is material, the Company determines the level of provision by discounting the expected cash flows at a pre-tax rate reflecting the current rates specific to the liability These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised but disclosed in the notes.

xi) LEASES

The Company assess whether a contract contains a lease, at the inception of the contract. A contract is, or contains, a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether (i) the contract involves the use of identified asset; (ii) the Company has substantially all of the economic benefits from the use of the asset through the period of lease and (iii) the Company has rightto direct the use of the asset.

xii) Operating Leases as a Lessor

Lease income from operating leases where the company is a lessor is recognised in income on either a straight-line basis or another systematic basis .The respective leased assets are included in the balance sheet based on their nature.

xii) TAXES ON INCOME

Income tax expense comprises current and deferred tax. Itis recognised in the statement of profit and loss except to the extentthatitrelates to items recognised directly in equity or in other comprehensive income (OCI)

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in India. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the liability method, on temporaiy differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the assetand settle the liability simultaneously.

xiii) RETIREMENT BENEFITS

a) Contribution to Provident Fund is made to Regional Provident Fund Commissioner. Contributions towards Gratuity are made to the schemes of life Insurance Corporation of India based on premium actuarially assessed and intimated in terms of the policies taken with them. These contributions are charged to Profit & Loss Account.

b) Provision for incremental liability in respect of encashable privilege leave is made on the basis ofactual determination of the liability at the year end.

xiv) EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

xv) SEGMENT REPORTING

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Company''s Chief Operating Decision Maker ("CODM") to make decisions for which discrete financial information is available. The Board of Directors, which have been identified as the CO DM, regularly review the performance reports and make decisions about allocation of resources.

xvi) CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby profit /(loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

21 Financial Risk management Objectives and Policies

(a) Credit risk

Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument fails to meet its contractual obligations. Cash and cash equivalents, bank deposits are held with only high rated banks/financial institutions, credit risk on them is perceived to be low.

(b) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes.

(c) Interest rate risk

Interest rate risk results from changes in prevailing market interest rates, which can cause a change in the fair value of fixed rate instruments and changes in the interest payments of the variable rate instruments. The management is responsible for the monitoring of the group interest rate position. Various variables are considered by the management in structuring the group borrowings to achieve a reasonable, competitive cost of funding.

(d) Foreign currency exchange rate risk

The Company has no exposure to foreign currency risk.

0) Liquidity risk

Liquidity risk is the risk that the Company is unable to meet its existing or future obligations due to insufficient availability of cash or cash equivalents. Managing liquidity risk, and therefore allocating resources and hedging the Company''s financial independence, are some of the central tasks of the Company''s treasury department. In order to be able to ensure the Company''s solvency and financial flexibility at all times, long-term credit limits and cash and cash equivalents are reserved on the basis of perennial financial planning and periodic rolling liquidity planning. The Company''s financing is also secured for the next fiscal year.

The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

Note 22 Financial instrunents-^ccourting dassif cations and fair value measurements

The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in notes to the financial statements.

Fair value hierarchy

"This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at fair value. The fair value of financial assets are classified into three categories i.e. Level 1, 2 or 3 depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active market for identical assets or liabilities (level 1 measurements] and lowest priority to unobservable inputs (level 3 measurements).

All financial assets and liabilities are measured at amortised cost and are classified under level 3. Being short term in nature, their carrying amount is considered a reasonable approximation of their fair value.

The financial statements indicate that the Company has accumulated losses and the net worth has been fully eroded. Since the company was suffering from losses. It has sold its land and building and closed down its operation.Further, the plant and equipment is also in the process of being sold. Accordingly, the plant and equipment is classified as assets held for sale as on March 31, 2024 The financial statements have been prepared on a non-going concern basis.

27

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.

28 Title Deeds of Immovable Property not held in name of the Company

There are no Immovable Properties owned by the company in its name

29 Revaluation based on Valuation by a registered valuer

The Company has not revalued any of its Property, Plant & Equipment during the year.

30 Loans or Advance in the Nature of Loans Granted to Promoters, Directors, KMPs & Other Related Parties

There are no Loans or Advances in the nature of Loans granted during the year by the Company to Promoters, Directors, KMPs and other Related parties.

31 Capital-Work-in Progress (CWIP)

There is no Capital Work in Progress which is capitalised within a year from end of financial year. Completion of any capital is not overdue and has not exceeded its cost compared to its original plan.

32 Intangible assets under development

There are no Intangible assests under development during the year, or whose completion is overdue or has exceeded its cost compared to its original plan.

33 Details of Benami Property held

There are no proceedings which have been initiated during the year or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and the rules made thereunder.

34 Wilful Defaulter

The Company has not been declared as a wilful defaulter by any Banks or Financial institutions or other lenders.

35 Registration of charges or satisfaction with Registrar of Companies

The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies (ROC) beyond the statutory period.

36 Compliance with number of layers of companies

The Company has not invested in any company or body corporate.

37 Compliance with approved Scheme(s) of Arrangements

The Company has not entered into any scheme of arrangment during the year.

38 Utilisation of borrowed funds and Share Premium

1) During the year, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources of kind of funds) by the Company to or in any other persons or entities,including foreign entities ("Intermediaries"),with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

2) During the year, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

39 Undisclosed Income

There are no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

40 Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in any Crypto Curreny or Virtual Currency during the year.

41

Previous year figures have been recast, regrouped, restated, reclassified wherever necessary.

. . c ...... For and on behalf of the Board of Directors

As per our report of even date attached ....

Kore Foods Limited

For V.C. Shah & Co Sayed Abbas Abdullah Y.Fazalbhoy Director

Chartered Accountants Chairman

Firm Registration No 109818W DIN:08057330 uin.uzizuiw*

John Silveira

Managing Director Ms.Mona D Souza Director

DIN:06411293 DIN:08459994

V. C. Shah

Partner Ms. Shalini Lobo

Membership No. 10360 Chief Financial Officer K.D.Bhat Director

Puja Joshi ^{DIN :} 01685944

Company Secretary Membership No.ACS21466

Dated : 28.05.2024 G.S.Shenoy Director

Place : Mumbai DIN: 00875061

Dated :28.05.2024 Place: Tivim, Goa

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Mar 31, 2015

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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Mar 31, 2014

2014 2013 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. 3,14,50,973 3,34,93,973

(ii) Claims against the Company not acknowledged as debts. 11,33,669 11,33,669

(iii) Export obligations not fulfilled against EPCG licences. 1,92,73,000 1,92,73,000

(iv) Duty drawback claim granted and later revoked. 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 2010-11 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.

3. In respect of fixed assets the provision for impairment loss of Rs. 61,48,923/- on existing Fixed Assets.

The food processing factory was partially working in the past when impairment provision was made in respect of all assets including food processing factory.

During the current year the company has decided to focus on growth in sale of food products and has taken steps to renovate the factory building to get HACCP Certification which certifies maintenance of hygiene and sanitation standards in production of food products. Accordingly, the management has reviewed the realizable value of factory building in use and have written back partially the impairment loss of Rs. 1,11,83,700/-

4. 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.

5. 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.

6. 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.

7. 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, 2014 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.

8 The company operates mainly in food processing segment.

9. Related party relationships have been identified by the management and relied upon by the auditors.

10. 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

Performance Logistics (India) Private Limited

Key Management Personnel

A.Y. Fazalbhoy

B. S. Sridhara

11. Previous year''s figures have been regrouped where necessary.

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Mar 31, 2013

2013 2012 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 3,34,93,973 4,69,81,313

(ii) Claims against the Company not acknowledged as debts. 11,33,669 1,32,25,000

(iii) Export obligations not fulfilled against EPCG licences. 1,92,73,000 1,92,73,000

(iv)Duty drawback claim granted and later revoked. 7,04,000 7,04,000

(v) The Income Tax Assessments have been completed upto the Assessment year 2010-11 and there is no demand raised by Income tax Department.

(vi)Penalty imposed by Commissioner - Customs & Central Excise, Goa, in respect of CVD on bulk (semi-packed / semi-finished) films which were imported by Phil Marketing Services Pvt. Ltd. and given to Company for further packing and in respect of which excise duty has been paid by the Company. Customs, Excise & Service Tax Tribunal, Western Region have passed order in July, 2012 against - 1,70,46,000 the recovery of the penalty.

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.

3. In respect of fixed assets the provision for impairment loss of Rs. 27116958/- on existing fixed assets is continued. Further the management has reviewed the realisable value of assets in use and are of the opinion that no further provision for impairment of fixed assets is considered necessary.

4. 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.

5. Gratuity liability in respect of ex-employees and employees transferred to Associate Companies is being paid directly by the Company for which the necessary provision has been made in the Books of Accounts.

6. 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.

7. 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, 2013 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.

8 The company operates mainly in food processing segment.

9. Previous year''s figures have been regrouped where necessary.

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Mar 31, 2012

1. Contingent Liabilities not provided for:

(i) Claims for Sales Tax/Excise/Service tax not accepted by the Company for which appeals are pending 4,69,81,313 4,73,85,313

(ii) Claims against the Company not acknowledged as debts. 1,32,25,000 1,32,25,000

(iii) Export obligations not fulfilled against EPCG licences. 1,92,73,000 1,92,73,000

(iv)Duty draw back claim granted and later revoked. 7,04,000 7,04,000

(v) The Income Tax Assessments have been completed upto the Assessment year 2008-09 and there is no demand raised by Income tax Department. - -

(vi) Penalty imposed by Commissioner-Customs & Central Excise, Goa, in respect . of CVD on bulk (semi-packed/semi-finished) films which were imported by Phil .

Marketing Services Pvt. Ltd. and given to Company for further packing And in 1,70,46,000 1,70,46,000 respect of which excise duty has been paid by the Company. Customs, Excise & Service Tax Tribunal, Western Region have granted stay against the recovery of the penalty.

2. In respect of fixed assets the provision for impairment loss of Rs. 5,18,82,172/- on existing fixed assets is continued. Further the management has reviewed the realisable value of assets in use and are of the opinion that no further provision for - impairment of fixed assets is considered necessary.

3. Gratuity liability in respect of bx-employees and employees transferred to Associate Companies is being paid directly by the Company for which the necessary provision has been made in the Books of Accounts.

4. 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.

5. The realisability of Defferred Tax Assets of erstwhile subsidary has been reviwed and adjustment has been made in the previous year.

6. 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, 2012 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.

7 On account of uncertainty of restructuring of business no segment reporting can be done.

8. Previous year's figures have been regrouped where necessary.

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Mar 31, 2011

1. SCHEME OF AMALGAMATION

In accordance with the Scheme of Amalgamation (the" Scheme") as approved by the Hon'ble High Court of Bombay at Goa vide its orders dated 06-08-2010 the whole business and affairs of the erstwhile GOKHATAK ENTERPRISES LIMITED the Wholly owned Subsidiary of the Company (the "Transferor Company") have been transferred to and vested in the Company with effect from the Appointed Date i.e. 01-04-2008. The scheme has accordingly been given effect to in the accounts.

The amalgamation being in the nature of merger has been accounted for under "Pooling of interests method" of accounting as prescribed by Accounting Standard (AS)

2 "Accounting for Amalgamation" issued by the Institute of Chartered Accountants of India.

As per the scheme all the Assets and Liabilities of the Transferor Company have been taken at book value.

As per the Scheme, w.e.f. 1st April, 2008 upto 6th August, 2010 erstwhile Transferor Company has been carrying its business in "trust" on behalf of the Company. All the Income and Expenditure of the Transferor Company have been included in the Company.

2. Contingent Liabilities not provided for: 2011 2010 Rs. Rs.



(i) Estimated amounts of contract - 5,00,000 remaining to be executed on capital account not . provided for (net of ad vances)

(ii) Claims for Sales Tax / Excise / 4,73,85,313 9,59,72,654 Service Tax not accepted by the Company for which appeals are pending.

(iii) Claims against the Company not 1,32,25,000 2,50,42,516 acknowledged as debts. -

(iv) Export obligations not fulfillied 1,92,73,000 1,92,73,000 against advance/EPCG licences.

(v) Duty drawback claim granted and 7,04,000 7,04,000 later revoked.

(vi) Counter Guarantee given to bankers - 15,97,000 against guarantee given by them for Sales . Tax and Deposit for Electricity.

(vii) The Income Tax Assessments have - - been completed upto the Assessment Year 2008-09 and there is no demand raised by Income Tax Department.

(viii)Penalty imposed by Commissioner 1,70,46,000 1,70,46,000 - Customs & Central Excise, Goa, in respect of CVD on bulk (semi-packed / semi-finished) films which were imported by Phil Marketing Services Pvt. Ltd. and given to the Company for further packing and in respect of which Excise Duty has been paid by the Company. Customs,Excise & Service Tax Tribunal, Western Region have granted stay against the recovery of the penalty. 3. 1,00,000 -13.75% Redeemable Cumulative Preference Shares of Rs. 100 each of the Company are held equally by General Insurance Corporation of India and New India Assurance Co. Ltd. These were due for redemption in June 2003. Dividend on Non Convertible Cumulative Redeemable Preference Shares upto the due date of Redemption not provided for, there being no profit : Rs. 41,25,000/-. Proposal for settlement of redemption of the said Preference Shares and waiver of right to cumulative dividend has been submitted by the Company.

4. In respect of Fixed Assets the provision for impairment loss of Rs. 5,18,82,172/- on existing Fixed Assets is continued. Further the management has reviewed the realisable value of assets in use and are of the opinion that no further provision for impairment of fixed assets is considered necessary.

5. During the financial year 2007-08 the Company had funded the actual liability for gratuity in respect of continuing employees amounting to Rs. 28,39,032/-. Further liability in respect of the gratuity based on the actuarial valuation informed by LIC has been provided in the Books of Accounts and funded. Gratuity liability in respect of ex- employees and employees transferred to Associate Companies is being paid directly by the Company for which the necessary provision has been made in the Books of Accounts.

6. 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.

7. The readability of Deferred Tax Assets of erstwhile subsidiary has been reviewed and adjustment has been made in the current year.

8. Extraordinary items relate to write back of Provision made in earlier year for Sales-tax, arising due to favourable decision of Tribunal and of cessation of liability for customs duty on goods in Bonds.

9. Cost of goods sold includes the value of Rs. 17,98,097/-of obsolete stocks written off during the year.

10. Earning in Foreign Currency Exports of Goods on F.O.B. basis

11. The names of Micro, Small and Medium Enterprises to whom the Company owes sums exceeding Rs. 1 lac each and which are outstanding for more than 30 days as at 31st March, 2011 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.

12. On account of uncertainty of restructuring of business no segment reporting can be done.

13. Previous year's figures have been regrouped where necessary.

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Mar 31, 2010

1. SCHEME OF AMALGAMATION

In accordance with the Scheme of Amalgamation (the" Scheme") as approved by the Honble High Court of Bombay at Goa vide its orders dated 06-08-2010 the whole business and affairs of the erstwhile GOKHATAK ENTERPRISES LIMITED the Wholly owned Subsidiary of the Company (the "Transferor Company") have been transferred to and vested in the Company with effect from the Appointed Date i.e. 01-04-2008. The scheme has accordingly been given effect to in the accounts.

The amalgamation being in the nature of merger has been accounted for under "Pooling of interests method" of accounting as prescribed by Accounting Standard (AS) 14 "Accounting for Amalgamation" issued by the Institute of Chartered Accountants of India.

As per the scheme all the Assets and Liabilities of the Transferor Company have been taken at book value.

As per the Scheme, w.e.f. 1st April, 2008 upto 6th August, 2010 erstwhile Transferor Company has been carrying its business in "trust" on behalf of the Company. All the Income and Expenditure of the Transferor Company have been included in the Company.

The audited Consolidated Accounts of the Company for the year ended 31st March, 2009, which were circulated to the members of the Company for the 26th AGM held on 25th September, 2009, have become merged accounts of the Company andhave therefore been incorporated in the previous years figures for F. Y. 2008-09 in the statement of Accounts for the financial year ended 31st March, 2010. While giving effect to the amalgamation of the Subsidiary Company capital reserve on consolidation has been adjusted against the brought forward losses.

2. Contingent Liabilities not provided for:

(i) Estimated amounts of contract remaining to be executed on capital account not 5,00,000 provided for (net of advances)

(ii) Claims for Sales Tax / Excise / Service Tax not accepted by the Companies for 9,59,72,654 8,87,28,784 which appeals are pending.

(iii) Claims against the Company not acknowledged as debts. 2,50,42,516 2,50,42,516

(iv) Export obligations not fulfillied against advance /EPCG licences. 1,92,73,000 1,92,73,000

(v) Duty drawback claim granted and later revoked. 7,04,000 7,04,000

(v) Counter Guarantee given to bankers against guarantee given by them for Sales 15,97,000 15,97,000 Tax and Deposit for Electricity.

(vii) The Income Tax Assessments have been completed upto the Assessment Year - 10,99,583

2006-07 and there is no demand raised by Income Tax Department. The Liability for A. Y. 1998-99 of Rs. 10,99,593/- stands deleted.

(viii) Penalty imposed by Commissioner - Customs & Central Excise, Goa, in respect of 1,70,46,000 1,70,46,000 CVD on bulk (semi-packed / semi-finished) films which were imported by Phil Marketing Services Pvt. Ltd. and given to the Company for further packing and in respect of which Excise Duty has been paid by the Company. Customs, Excise & Service Tax Tribunal, Western Region have granted stay against the recovery of the penalty.

3. 1,00,000 -13.75% Redeemable Cumulative Preference Shares of Rs. 100 each of the Company are held equally by General Insurance Corporation of India and New India Assurance Co. Ltd. These were due for redemption in June 2003. Dividend on Non Convertible Cumulative Redeemable Preference Shares upto the due date of Redemption not provided for, there being no profit Rs. 41,25,000/-. Proposal for settlement of redemption of the said Preference Shares and waiver of right to cumulative dividend has been submitted by the Company.

4. In respect of Fixed Assets the provision for impairment loss of Rs. 5,18,82,172/- on existing Fixed Assets is continued. Further the management has reviewed the realisable value of assets in use and are of the opinion that no further provision for impairment of fixed assets is considered necessary. During the year the impairment loss of the erstwhile wholly owned subsidiary Gokhatak Enterprises Limited which has been merged with the Company has been reversed due to the sale / scrap of Assets.

5. During the financial year 2007-08 the Company had funded the actual liability for gratuity in respect of continuing employees amounting to Rs. 28,39,032/-. Further liability in respect of the gratuity based on the actuarial valuation informed by LIC has been provided in the Books of Accounts and Funded. Gratuity liability in respect of ex-

6 employees and employees transferred to Associate Companies is being paid directly by the Company.for which the necessary provision has been made in the Books of Accounts.

7. 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.

8. The names of Small Scale Industrial Undertaking and to whom the Company owes sums exceeding Rs. 1 lac each and which are outstanding for more than 30 days as at 31 st March, 2010 are nil; as the vendors of the Company have not filed intimation about their recognition as "Supplier" under the provisions of the Small Scale Industrial Undertaking Development Act, 2006.

9. Previous years figures have been regrouped where necessary.