Home  »  Company  »  Vimta Labs Ltd.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Vimta Labs Ltd.

Mar 31, 2016

Note : Information of related parties and the relationship is as identified by the Company on the basis of information available with them and relied upon by the auditors.

Note : As the liability for Gratuity is provided on actuarial basis for all the employees of the company including whole-time directors as a whole, amount pertaining to the Key Management Personnel and their relatives is not ascertainable and therefore not included in the above.

1.. Leases (AS-19) :

The Company has taken certain equipment under non canceleable operating lease agreements for a period of 36 months. The lease rental charge grouped under operating lease charges during the year ended March, 2016 is Rs.1,29,250/-(Previous year Rs.627,828/-) and maximum obligation on long-term non-cancelable operating lease payable as per the rentals stated in respective agreements are as follows :

2. Corporate Social Responsibility (CSR) : To comply with the Corporate Social Responsibility (CSR) requirements under the provisions of Section 135 (5) of the Companies Act, 2013 read with the Rules made there under, the Company has determined the eligible amount at Rs.18,96,478/- being the 2% of the average net profits of the Company in the three immediately preceding years. Against which, an amount of Rs.19,59,714/- (including Rs.63,236/- balance amount to be spent against previous year''s obligation) contributed during the year to Charitable Trusts for carrying out the activities specified by the Board and charged the same to statement of Profit and Loss.

3. Previous year''s figures have been regrouped / recasted wherever considered necessary to conform to the layout of the accounts adopted in the current year. Paise have been rounded off to the nearest rupee.


Mar 31, 2015

I) Cash credit from State Bank of India (Limit) Rs. 9,00,00,000/- (previous year Rs. 13,00,00,000/-) carrying interest @ 3.75% above base rate for CC (Hyp.) and for EPC and FBD as applicable to export finance(i.e., 3 Months average LIBOR 150 basis points), is secured by First charge (hypothecation) of all the current assets of the Company on exclusive basis as primary security and collaterally secured by extension of charge on the fixed assets of the Company and structures thereon alongwith EM of Company's land under Plot No. 141/2 & 142 admeasuring 1.66 Ac. situated at IDA, Phase-II, Cherlapally, R.R. Dist. and land under Plot No.5, Alexandria Knowledge Park, Phase-I admeasuring 52620 sq. yards situated at Turkapally Village, Shameerpet Mandal, R.R. Dist.

ii) There are no defaults as on the Balance Sheet date in repayment of the above loan and interest thereon.

2.1 Related party disclosures (AS-18)

Names of the Key Management Personnel related parties, nature of relationships and particulars of transactions with the said related parties during the year are as follows :

i) Names of the related parties and description of relationship.

A) Key Management Personnel

Dr S P Vasireddi Executive Chairman

Harita Vasireddi Managing Director

V Harriman Executive Director - Operations

V V Prasad Executive Director - Administration

A Venkataramana Company Secretary

Sankaraiah Peram Chief Financial Officer

B) Relatives of Key Management Personnel

Swarnalatha Vasireddi Wife of Executive Chairman

Sireesh Chandra Vungal Son of ED - Operations

Sudheshna Vungal Daughter of ED - Operations

Satya Sreenivas Neerukonda Son-in-Law of ED - Administration

Rajeswari Vungal Wife of ED - Operations

Praveena Vasireddi Daughter of Executive Chairman

C) Other related parties Ananth Technologies Limited (Companies in which Bloomedha Info Solutions Limited some of the Directors or other relatives are interested)

Note : Information of related parties and the relationship is as identified by the Company on the basis of information available with them and relied upon by the auditors.

ii) Aggregate Related Party transactions for the year 2013-14

Note : As the liability for Gratuity is provided on actuarial basis for all the employees of the company including whole-time directors as a whole, amount pertaining to the Key Management Personnel and their relatives is not ascertainable and therefore not included in the above.

2.2. Leases (AS-19) :

The Company has taken certain equipment under non canceleable operating lease agreements for a period of 36 months. The lease rental charge grouped under operating lease charges during the year ended March, 2015 is Rs. 627,828/- (Previous year Rs. 17,351,782/-) and maximum obligation on long- term non-cancelable operating lease payable as per the rentals stated in respective agreements are as follows :

Note : The Company's appeals against the orders of Commissioner of Service Tax , Hyderabad - III for the financial years 2005-06 to 2009-10 and 2010-11 before the CESTAT, South Zone Bench, Bangalore were disposed in favour of the Company.

3. Corporate Social Responsibility (CSR) : To comply with the Corporate Social Responsibility (CSR) requirements under the provisions of Section 135 (5) of the Companies Act, 2013 read with the Rules made, thereunder, the Company has determined the eligible amount at Rs. 4,67,236/- being the 2% of the average net profits of the Company in the three immediately preceding years. Against which, an amount of Rs. 4,04,000/- contributed during the year to Charitable Trust for carrying out the activities specified by the Board and charged the same to statement of P&L .

4. Previous year's figures have been regrouped / recasted wherever considered necessary to conform to the layout of the accounts adopted in the current year. Paise have been rounded off to the nearest rupee.


Mar 31, 2014

1. As at As at 31.03.2014 31.03.2013 Rs. Rs.

1) CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

I) Contingent liabilities

a) Claims against the company not acknowledged as debt : i) Disputed service tax demand for the year 2005-06 to 2009-10 277,846,538 277,846,538

ii) Disputed service tax deducted for the year 2010-11 60,335,240 60,335,240

iii) Disputed Lease charges on equipment Nil 15,476,286

b) Guarantees issued by bank 1,36,58,296 12,594,172

II) Commitments b) Other Comitantes : a) Future minimum lease payments under operating lease 646,250 1,412,953

TOTAL 352,486,324 367,665,189

i) The Company has filed appeal and for stay of demand against the order of Commissioner of Service Tax, Hyderabad-III against the Service Tax demand of Rs.277,846,538/- (Service tax of Rs.138,923,269/- & penalty of Rs.138,923,269/-) for financial year 2005-06 to 2009-10 before the CESTAT, South Zonal Bench, Bangalore. The CESTAT has directed the company to pay an amount of Rs.20,000,000/- and granted stay for the balance demand. Accordingly, company has paid the same and the appeal is pending disposal. The legal counsel has confirmed the validity of the Company''s claim. Hence, the same is shown as a contingent liability.

ii) The Company has filed appeal and for stay of demand against the order of commissioner of Service Tax, Hyderabad - III against the Service Tax demand of Rs.60,335,240/- (Service tax of Rs.30,167,620/- and penalty of Rs.30,167,620/-) for financial year 2010-11 before the CESTAT, South Zonal Bench, Bangalore. On appeal, the CESTAT has stayed the demand and the appeal is pending disposal. The legal counsel has confirmed the validity of the Company''s claim. Hence, the same is shown as a contingent liability.


Mar 31, 2013

I) Cash credit from State Bank of India (Limit) Rs. 130,000,000/- (previous yearRs.. 110,000,000/-) carrying interest @ 7% above base rate for CC(Hyp.) and 2.75% above base rate for EPC and FBD, is secured by First charge (hypothecation) of all the current assets of the Company on exclusive basis as primary security and collaterally secured by extension of charge on the fixed assets of the Company and structures thereon along with EM of Company''s land under Plot No. 141/2 & 142 admeasuring 1.66 Ac. situated at IDA, Phase-ll, Cherlapally, R.R. Dist. and land under Plot No.5, Alexandria Knowledge Park, Phase-1 admeasuring 52620 sq. yards situated at Turkapally Village, Shameerpet Mandal, R.R. Dist.

ii) Working capital facility from HSBC Ltd (consisting of PCFC loan and Vendor Finance repayable in foreign currency and Indian Rupees respectively) carried interest @ LIBOR 3.67% and 14% per annum is secured by first pari passu charge on entire current assets of the company both present and future and second pari passu charge on movable fixed assets of the company both present and future.

iii) There are no defaults as on the Balance Sheet date in repayment ofthe above loans and interest thereon.

iv) Corporate Loan from State Bank of India carrying interest @7% above base rate, is secured by First charge on fixed assets of the company and structures thereon along with EM of company''s land under Plot No. 141/2 & 142 admeasuring 1.66 Ac. situated at IDA, Phase-ll, Cherlapally, R.R. Dist. and land under Plot No.5, Alexandria Knowledge Park, Phase-1 admeasuring 52620 sq. yards situated atTurkapally Village, Shameerpet Mandal, R.R. Dist. The loan is repayable in monthly installments of Rs..5,00,000/- each.

v) Term Loan from The Hongkong and Shanghai Banking Corporation Limited (HSBC Bank) repayable in foreign currency was secured by pari passu charge on entire movable and immovable fixed assets of the company, both present and future as primary security and extension of pari passu charge on entire current assets of the company both present and future. The loan amount was carrying interest of LIBOR 65 bps to 150 bps repayable in quarterly installments as per the sanctioned letter. The entire loan amount was repaid before the end of the year.

As at As at 31.03.2013 31.03.2012 Rs. Rs.

1) CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

1.1 Contingent liabilities

a) Claims against the company not acknowledged as debt:

i) Disputed service tax demand for the year 2005-06 to 2009-10 277,846,538 277,846,538 (See note (a) below)

ii) Disputed service tax deducted for the year 2010-11 60,335,240 - (See note (b) below)

iii) Disputed Lease charges on equipment 15,476,286 -

b) Guarantees issued by bank . 12,594,172 16,174,626

1.2 Commitments

a) Future minimum lease payments under operating lease 1,412,953 25,950,271

TOTAL 367,665,189 319,971,435

#The Company has filed an appeal and for stay of demand against the order of Commissioner of Service Tax, Hyderabad-Ill against the demand ofRs.. 277,846,538/-(Service tax ofRs.. 138,923,269/-and penalty ofRs.. 138,923,269/-) before the CESTAT, South Zonal Bench, Bangalore. The CESTAT has directed the company to pay an amount of Rs..20,000,000/- after hearing the stay of demand petition and company has paid Rs.. 20,000,000/-as per the above order. The appeal is pending for disposal. The legal counsel has confirmed the validity of the Company''s claim. Hence no provision is made for this liability.

The Company has filed an appeal against the order of commissioner of Service Tax, Hyderabad - III against the demand of Rs.. 60,335,240/- (Service tax ofRs.. 30,167,620/- and penalty ofRs.. 30,167,620/-) before the CESTAT, South Zonal Bench, Bangalore. The appeal is pending for disposal. The legal counsel has confirmed the validity of the Company''s claim. Hence no provision is made for this liability.


Mar 31, 2012

1) LONG-TERM BORROWINGS

i) Corporate Loan from State Bank of India was secured by hypothecation of equipment procured with the loan as primary security and extension of pari passu charge on other fixed assets of the Company, other than the assets which were acquired with Hire Purchase loans, Grants and Soft loans from Government and other institutions. The loan was also secured by second charge on current assets of the company on pari passu basis. The loan was carrying interest of 16.75% repayable in monthly installments of Rs. 5,00,000/- each.

ii) Term Loan from The Hongkong and Shanghai Banking Corporation Limited (HSBC Bank) repayable in foreign currency was secured by pari passu charge on entire movable and immovable fixed assets of the company, both present and future as primary security and extension of pari passu charge on entire current assets of the company both present and future. The loan amount was carrying interest of LIBOR plus 65 bps to 150 bps, repayable in quarterly installments as per the sanction letter.

Note: There are no continuing defaults as on the Balance sheet date in repayment of all the above loans and interest thereon.

2) SHORT TERM BORROWINGS

i) Cash credit from State Bank of India (limit) Rs. 110,000,000 (Previous Year Rs. 120,000,000) carried interest @ 16.75% and secured by hypothecation of all the current assets of the Company as primary security by way of pari passu charge and extension of parri passu charge on land, buildings and fixed assets of the company, other than the assets which are acquired with Hire Purchase loans, Soft loan from Technology Development Board and grants from Government and other Institutions.

ii) Working capital facility from HSBC Bank (consisting of PCFC loan and Vendor Finance repayable in foreign currency and Indian Rupees respectively) carried interest @ LIBOR plus 3.67% and 14% per annum is secured by first pari passu charge on entire current assets of the company both present and future and second pari passu charge on movable fixed assets of the company both present and future.

iii) There are no continuing defaults as on the Balance sheet date in repayment of the above loans and interest thereon.

3.1 Related party disclosures (AS-18)

Names of the related parties and nature of relationships and particulars of transactions with the said related parties during the year are as follows :

i) Names of the related parties and description of relationship.

A) Key Management Personnel

Dr S P Vasireddi Chairman & Managing Director

V Harriman Director-Technical

V V Prasad Executive Director

Harita Vasireddi Director-Quality

B) Relatives of Key Management Personnel

Swarnalatha Vasireddi Wife of Managing Director

Sireesh Chandra Vungal Son of Director Technical

Sujani Vasireddi Daughter of Executive Director

Satya Sreenivas Neerukonda Son-in-Law of Executive Director

Rajeswari Vungal Wife of Director Technical

C) Associates Vimta Specialities Limited

D) Other related parties Ananth Technologies Limited Bloomedha Info Solutions Limited

Note : Information of related parties and the relationship is as identified by the Company on the basis of information available with them and relied upon by the auditors.

4.1. Leases (AS-19) :

The Company has taken certain equipment under non canceleable operating lease agreements for a period of 36 months. The lease rental charge grouped under operating lease charges during the year ended March, 2012 is Rs. 2,02,02,764/- (Previous year Rs. 2,30,39,190/-) and maximum obligation on long-term non-cancelable operating lease payable as per the rentals stated in respective agreements are as follows:


Mar 31, 2011

1. Secured Loans

I) Cash credit from State Bank of India - limit ` 1200 lakhs,

Outstanding -Rs.1323.17 lakhs (previous year Rs. 900 lakhs and Rs. 1021.44 lakhs respectively) is secured by hypothecation of all the current assets of the Company as primary security by way of pari passu charge and extension of pari passu charge on land, buildings and fixed assets of the Company, other than the assets which are acquired with Hire Purchase loans, Soft loan from Technology Development Board and grants from Government and other Institutions.

ii) Corporate Loan from State Bank of India limit Rs. 250 lakhs; outstanding Rs. 75.77 lakhs (previous year Rs. Nil) is secured by hypothecation of equipment procured with the loan as primary security and extension of pari passu charge on other fixed assets of the Company other than the assets which are acquired with Hire Purchase loans, Technology Development Board and Grants from Government and other institutions. In addition, also secured by second charge on current assets on pari passu basis.

iii) Term Loan from The Hongkong and Shanghai Banking Corporation Limited (HSBC Bank) repayable in foreign currency limit of Rs. 1000 lakhs and outstanding Rs. 546.71 lakhs (previous year Rs. 1000 lakhs and Rs. 887.02 lakhs respectively) is secured by pari passu charge on entire movable and immovable fixed assets of the Company, other than the assets which are acquired with Hire purchase loans, Soft loan from Technology Development Board and Grants from Government and other Institutions both present and future as primary security and extension of pari passu charge on entire current assets of the Company both present and future.

iv) Working capital facility from HSBC Bank aggregating is Rs.650 lakhs (consisting of PCFC loan and Vendor Finance repayable in foreign currency and Indian Rupees), outstanding of ` 472.88 lakhs repayable in Foreign Currency and Rs. Nil in Indian Rupees (Previous year Rs. 473.38 lakhs repayable in foreign currency and Rs. 114.11 lakhs in Indian rupees) is secured by first pari passu charge on entire current assets of the Company other than the assets which are acquired with Hire purchase loans, Soft loan from Technology Development Board and Grants from Government and other Institutions both present and future and second pari passu charge on movable fixed assets of the Company both present and future.

v) Soft loan from Technology Development Board, Limit Rs. 485 lakhs, outstanding Rs. 107.98 lakhs, (previous year Rs. 485 lakhs and ` 243.98 lakhs respectively) is secured by hypothecation of plant and equipment procured with the said loan.

2. Current Liabilities and Provisions

a) Sundry Creditors

I) Amounts due to Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 (as disclosed in schedule 8, Current Liabilities) has been determined to the extent such parties have been identified on the basis of information available with the Company. The disclosures relating to Micro and small enterprises as at 31st March, 2011 are as under :-

Note : Information on SSI Units and the Units covered under Micro, Small and Medium Enterprise Development Act, 2006 is based on the information collected by the Management from the vendors and relied upon by the auditors.

b) Service Tax Demand

Out of the Service tax demand of Rs. 68.86 lakhs raised on the Company in earlier years, the Commissioner (Appeals) - III gave a relief of Rs. 65.17 lakhs to the Company. For the balance demand of Rs. 3.69 lakhs, the Company has filed an appeal before CESTAT, South Zonal Branch, Bangalore and the appeal is pending before them. The legal counsel has confirmed the validity of the Company's claim. Hence no provision is made for this liability. It is shown as a contingent liability. (Refer Sch.10)

c) Export Obligations

In order to obtain Import Licenses under the Export Promotion Capital Goods Scheme of Government of India, the Company has given an undertaking to fulfill certain quantified export obligations. In case of non-fulfillment of such obligations, the Company shall be liable to pay the concessions in duty availed and interest on unfulfilled export obligations under the said scheme. Till 31.03.2011, the Company has fulfilled the required export obligations under the scheme and hence no liability is foreseen on account of this. Accordingly no liability is provided for on account of this.

d) Cess U/s.441A of Companies Act, 1956 As the Central Government has not yet notified the date for levy of Cess u/s 441A of the Companies Act, 1956, no provision has been made for the same.

e) Foreign currency exposure not hedged : Foreign currency exposure not hedged by a derivative instrument or otherwise on account of Borrowings from Banks, including interest accrued thereon - USD 2293720 (Previous year USD 3050001).

3. Current Assets, Loans & Advances : In the opinion of Management, Current Assets, Loans & Advances have a value and realization will be equal to the amount at which they are stated in the Balance Sheet and provision for all known unrecoverable items has been made.

4. Related party disclosures

Pursuant to Accounting Standard-18 (AS-18) issued by the ICAI, the names of the related parties and nature of relationships and particulars of transactions with the said related parties during the year are as follows :

i) Names of the related parties and description of relationship.

A) Key Management Personnel

Dr S P Vasireddi Chairman & Managing Director V Harriman Director - Technical V V Prasad Executive Director Harita Vasireddi Director - Quality

B) Relatives of Key Management Personnel

V Swarnalatha General Manager V Sireesh Chandra Manager-IT V Sujani Asst. Manager-Fin. & Admn. N Satya Sreenivas Manager-BD. V Rajeswari Owner of Chennai Office Premises

C) Associates Vimta Specialities Limited

D) Other related Ananth Technologies Limited Parties L V Prasad Eye Institute

Note : Information of related parties and the relationship is as identified by the Company on the basis of information available with them and relied upon by the auditors.

As the liability for Gratuity is provided on actuarial basis for all the employees of the Company as a whole, the amount pertaining to the Key Management Personnel and their relatives is not ascertainable and therefore not included above.

5. Operating Leases :

The Company has taken certain equipment under non cancelable operating lease agreements for a period of 36 months. The lease rental charge grouped under operating lease charges during the year ended March, 2011 is Rs. 230.39 lakhs (Previous year Rs. 22.04 lakhs) and maximum obligation on long-term non-cancelable operating lease payable as per the rentals stated in respective agreements are as follows :

e) Value of all imported and indigenous raw materials, spare parts & components consumed during the year and the percentage of each to the total consumption

The Company is not carrying on any manufacturing activities but engaged in the business of Contract Research and Testing in the fields of Clinical and Pre Clinical Studies, Clinical Reference, Analytical Testing, Advanced Molecular Biology and Environmental studies. The Company’s business requires variety of chemicals and consumables in small quantities and does not require any raw materials. It is not practicable to furnish the quantitative details of these chemicals & consumables as number of small quantities are consumed. Hence, aggregate value of all imported and indigenous chemicals & consumables and spares & components consumed and the percentage of each to the total consumption are furnished below :

6. Information to be furnished under Sec. 22 of Micro, Small and Medium Enterprises Development Act, 2006 in relation to dues and interest payable on the dues to micro, small and medium enterprises is — Nil

7. As per the provisions of Income tax Act, 1961 applicable for the current year, no tax needs to be deducted at source from the proposed dividend on equity shares.

8. Previous year's figures have been regrouped / recasted wherever considered necessary to conform to the layout of the accounts adopted in the current year.

9. Paise are rounded off to the nearest rupee.

10. Information pursuant to the provisions of part IV of schedule VI of the companies Act, 1956.


Mar 31, 2010

1. Secured Loans

i) Cash credit limit ` 900 lakhs, Outstanding - ` 1021.44 lakhs (previous year ` 1000 lakhs and ` 1095.23 lakhs respectively) from State Bank of India is secured by hypothecation of all the current assets of the Company as primary security by way of pari passu charge and extension of parri passu charge on land, buildings and fixed assets of the company, other than the assets which are acquired with Hire Purchase loans, Soft loan from Technology Development Board and grants from Government and other Institutions.

ii) Term Loans repayable in foreign currency from State Bank of India (limit ` 3300 lakhs; outstanding ` NIL lakhs) (previous year ` 3300 lakhs and ` 868.92 lakhs respectively) are secured by equitable mortgage of land and hypothecation of buildings situated at Plot Nos. 141/2 & 142, IDA Phase II, Cherlapally, Hyderabad and Plot No: 5, Alexandria Knowledge Park (formerly known as S P Bio-Tech Park), Genome Valley, Hyderabad and hypothecation of equipment procured with the term loans as primary security by way of pari passu charge and extension of pari passu charge on other fixed assets of the Company situated at other places, other than the assets which are acquired with Hire Purchase loans, Grants and Soft loans from Government and other institutions.

iii) Term Loan repayable in foreign currency from The Hongkong and Shanghai Banking Corporation Limited (HSBC Bank) limit of ` 1000 lakhs and outstanding of ` 887.02 lakhs (previous year ` 1000 Lakhs and ` 154.64 lakhs respectively) is secured by pari passu charge on entire movable and immovable fixed assets of the company, both present and future as primary security and extension of pari passu charge on entire current assets of the company both present and future.

iv) Working capital facilities from HSBC Bank aggregating is ` 650 lakhs consisting of PCFC loan and Vendor Finance repayable in foreign currency and Indian Rupees respectively, outstanding of ` 473.39 lakhs in Foreign Currency and ` 114.12 lakhs in Indian Rupees aggregating to ` 587.51 lakhs (Previous year ` Nil) is secured by first pari passu charge on entire current assets of the company both present and future and second pari passu charge on movable fixed assets of the company both present and future.

v) Soft loan from Technology Development Board, Limit ` 485 lakhs, outstanding ` 243.98 lakhs, (previous year ` 485 lakhs and ` 343.51 lakhs respectively) is secured by hypothecation of plant and equipment procured with the said loan.

2. Current Liabilities and Provisions

a) Sundry Creditors

i) Name(s) of small scale industrial undertakings to whom the Company owe any sum together with interest outstanding for more than 30 days - Nil (Previous year Nil)

ii) The amount due to Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 (as disclosed in schedule 8, Current Liabilities) has been determined to the extent such parties have been identified on the basis of information available with the company. The disclosures relating to Micro and small enterprises as at 31st March, 2010 are as under :-

(in Rs.)

Sl. Description As at As at No. 31.03.2010 31.03.2009

1. The principal amount remaining

unpaid at the end of accounting year Nil Nil

2. The interest due thereon remaining

unpaid to supplier as at the end of Nil Nil

accounting year

3. The amount of interest paid in terms of

Section 16, along with the amount of the Nil Nil

payment made to the supplier beyond

the appointed day during the year.

4. The amount of interest due and

payable for the period of delay in Nil Nil

making payment (which have been paid

but beyond the appointed day during

the year) but without adding the interest

specified under this act.

5. The amount of interest accrued

during the year and remaining unpaid Nil Nil

at the end of the accounting year.

6. The amount of further interest

remaining due and payable even in the Nil Nil

succeeding years, until such date when

the interest dues as above are actually paid to the small enterprises, for the

purpose of disallowance as a

deductable expenditure under Sec. 23.



Note : Information on SSI Units and the Units covered under Micro, Small and Medium Enterprise Development Act, 2006 is based on the information collected by the Management from the vendors and relied upon by the auditors.

b) Income Tax Demand

An aggregate demand of Rs. 89.90 lakhs has been raised on the Company in the Income-tax assessments completed for assessment years 2002-03 to 2004-05, rejecting the claim of the Company for deduction of income from exports from its total income. The Companys legal counsel has confirmed the validity of the deductions claimed by the Company. The Company has deposited the demands in full under protest and disputed before the Appellate Authorities and the same are pending before ITAT, Hyderabad as on date. In view of the above, no provision is made for the said demand of Rs. 89.90 lakhs in the books of account. The same is reflected in the contingent liabilities.(Refer Sch. 10)

c) Service Tax Demand

A Service tax demand of Rs. 68.86 lakhs has been raised on the company for the period from 01.04.2003 to 31.01.2006 and the company has contested the same before Commissioner (Appeals) - III and got a relief of Rs. 65.17 lakhs. For the balance demand of Rs.3.69 lakhs, the Company has filed an appeal before CESTAT, South Zonal Branch, Bangalore and the appeal is pending before them. The legal counsel has confirmed the validity of the companys claim. Hence no provision is made for this demand liability. It is shown as a contingent liability.(Refer Sch.10)

d) Export Obligations

In order to obtain Import Licenses under the Export Promotion Capital Goods Scheme of Government of India, the Company has given an undertaking to fulfill certain quantified export obligations. In case of non-fulfillment of such obligations, the Company shall be liable to pay the concessions in duty availed and interest on unfulfilled export obligations under the said scheme. Till 31.03.2010, the Company has fulfilled the required export obligations under the scheme and hence no liability is foreseen on account of this. Accordingly no liability is provided for on account of this.

e) Cess U/s.441A of Companies Act, 1956

As the Central Government has not yet notified the date for levy of Cess u/s 441A of the Companies Act, 1956, no provision has been made for the same.

f) Foreign currency exposure not hedged :

Foreign currency exposure not hedged by a derivative instrument or otherwise on account of Borrowings from Banks, including interest accrued thereon - USD 3050001 (Previous year USD 2109000).

3. Current Assets, Loans & Advances : In the opinion of Management, Current Assets, Loans & Advances have a value and realization will be equal to the amount at which they are stated in the Balance Sheet and provision for all known unrecoverable items has been made.

5. Related party disclosures

Pursuant to Accounting Standard-18 (AS-18) issued by the ICAI, the names of the related parties and nature of relationships and particulars of transactions with the said related parties during the year are as follows :

i) Names of the related parties and description of relationship.

A) Key Management Personnel

Dr S P Vasireddi Chairman & Managing Director

V Harriman Director - Technical

V V Prasad Executive Director

Harita Vasireddi Director - Quality

B) Relatives of Key Management Personnel

V Swarnalatha General Manager

V Sireesh Chandra Manager-II

V Sujani Asst. Manager-Fin. & Admn.

N Satya Sreenivas Manager-BD.

V Rajeswari Owner of Chennai Office Premises

C) Associates Vimta Specialities Limited

D) Other related parties Ananth Technologies Limited

L V Prasad Eye Institute

Note : Information of related parties and the relationship is as identified by the Company on the basis of information available with them and relied upon by the auditors.

e) Value of all imported and indigenous raw materials, spare parts & components consumed during the year and the percentage of each to the total consumption

f) Managerial Remuneration

Notes:

i) The above amount consists of remuneration paid up to 25.03.2010 in accordance with the terms of appointment approved by the members in the general meeting held on 19.09.2009 and for the balance period in accordance with the terms of appointment approved by the Board in its meeting held on 26.03.2010, which requires approval of shareholders by way of Special resolution.

ii) As the net profit computed in accordance with the provisions of Sec.349 of the Companies Act, 1956 is inadequate to pay the remuneration and commission to the Managing and other whole-time directors as per Section 198, minimum remuneration permissible under Clause B of Section II of Part II of Schedule XIII to the Companies Act, 1956 is paid.

iii) Perquisites include Companys contribution towards PF and other non-monetary benefits valued as per Income Tax Rules.

iv) As the liability for Gratuity is provided on actuarial basis for all the employees of the company as a whole, the amount pertaining to the Directors is not ascertainable and therefore not included above.

6. Information to be furnished under Sec. 22 of Micro, Small and Medium Enterprises Development Act, 2006 in relation to dues and interest payable on the dues to micro, small and medium enterprises is — Nil

7. As per the provisions of Income tax Act, 1961 applicable for the current year, no tax needs to be deducted at source from the proposed dividend on equity shares.

8. Previous years figures have been regrouped / recasted wherever considered necessary to conform to the layout of the accounts adopted in the current year.

9. Paise are rounded off to the nearest rupee.

10. Information pursuant to the provisions of part IV of schedule VI of the companies Act, 1956.

Find IFSC