Mar 31, 2015
A. Leave Salary
The Company has made provision for leave salary on actuarial valuation
basis. These being retirement benefits, an obligation to pay these
amounts might arise at the time of resignation / superannuation of the
employees. There is no reimbursement receivable against these
obligations.
b Investments
VXL Instruments Limited, U.K., a subsidiary in which the Company has
60% share holding amounting to Rs. 51,69,261/- has accumulated losses
in excess of its total paid up capital. Net receivable from VXL
Instruments Limited, U.K., as at 31st March 2015 is Rs. 4,96,36,260/-
(Rs. 5,89,13,634/-). The subsidiary company has made profit during the
current year and has remitted Rs.92,77,374/- (Rs. 76,92,894/-) towards
old dues. Considering these facts and future projections, the
management is of the opinion that no provision is deemed necessary in
respect of the Company's investment in and the amounts due to the
Company.
c Retirement Benefit Plans
1 Defined contribution plans
The Company makes Provident Fund contributions to defined contribution
retirement benefit plans for qualifying employees. Under the scheme,
the Company is required to contribute a specified percentage of the
payroll costs to fund the benefits.
The Company recognised Rs. 22,08,149/- (Rs. 21,45,585/-) for provident
fund contributions in the profit and loss account. The contributions
payable to these plans by the Company are at rates specified in the
rules of the schemes.
2 Defined benefit plans
The Company makes annual contributions to the Employees' Group
Gratuity-cum-Life Assurance Scheme Master Policy of the Life Insurance
Corporation of India, a defined benefit plan for qualifying employees.
The scheme provides for lump sum payment to vested employees at
retirement, death while in employment or on termination of employment
of an amount equivalent to 15 days salary payable for each completed
year of service or part thereof in excess of six months. Vesting occurs
upon completion of five years of service. The present value of the
defined benefit obligation and the related current service cost were
measured using the Projected Unit Credit Method, with actuarial
valuations being carried out at each balance sheet date.
The expected return on plan assets is determined considering several
applicable factors mainly the composition of the plan assets held,
assessed risks of asset management, historical results of the return on
plan assets and the Company's policy for plan asset management
The following table sets out the funded status of the gratuity plan and
the amounts recognized in the Company's financial statements as at
31.03.2015.
d Dues to Micro, Small and Medium Enterprises:
Sundry Creditors include Rs. Nil (Rs. Nil) due to Micro, Small and
Medium Enterprises. The information is determined based on the
information available with the Company. The list of SSIs to whom the
amount outstanding for more than 30 days are as under:
e Segment Information
The Company's segment information is as follows:
Primary/Secondary Segment reporting format
The risk return profile of the Company's business is determined based
on the geographical area in which it operates. Therefore, Geographical
Segments have been identified as Primary Segments Secondary Segments
have been identified on the basis of the nature of products
manufactured by the Company
Segment assets and liabilities
Fixed assets used in the Company's business and liabilities contracted
have not been identified to any of the reportable segments as the fixed
assets and services are used interchangeably between segments
f Operating Leases:
The Company has taken various residential / commercial premises under
cancelable operating leases. These lease agreements are normally
renewed on expiry. The lease agreements provide an option to the
Company to renew the lease period at the end of the period. There are
no exceptional / restrictive covenants in the lease agreements. Rent
debited to profit and loss account Rs.24,03,993/- (Rs. 30,82,970/-).
Contingent rent recognized in the Profit and Loss Account Rs. Nil.
Obligations on long-term, non-cancelable operating leases:
g Confirmation of balance under Sundry Debtors, Loans & Advances,
deposits and sundry creditors, other current liabilities are obtained.
In the opinion of the management Current assets and Loans & Advances
would in the ordinary course of business realise the values stated.
h Effective 1st April 2014, the Company depreciates its fixed assets
over the useful life prescribed in Schedule II to the Companies Act
2013 as against the earlier practice of depreciating under the rates
prescribed under the Schedule XIV to the Companies Act, 1956. Based on
technical evaluation, moulds are depreciated over 3 years which is
different from that prescribed in Schedule II of the Act. During the
year, the Company has changed the method of depreciation of fixed
assets of the Company, from written down value method to straight line
method. Consequent to the change, depreciation charge for the year is
increased by Rs. 13,86,425/- with consequential effect on reserve.
Excess depreciation on account of change in method from written down
value method to straight line method of Rs. 74,68,016/- of earlier
years is credited to statement of profit & loss account under
exceptional items
Sl. No. i: The Honorable High Court of Karnataka has directed the
Assistant Provident Commissioner to consider the grievance of the
Company for reducing the penalty
Sl. No. ii: Sl. No. b: The Company has filed the appeal before the High
Court against the order of Karnataka Appellate Tribunal in respect of
disallowances. Similarly Govt. of Karnataka has filed appeal vide STA
No. 17/2010 and 122-123/2012 dated 13th July, 2012 of High Court of
Karnataka against the relief given to the Company.
Sl. No. iii: In respect of Service Tax pending before the Commissioner
/ CESTAT the Company's Consultants are of the opinion that the Company
has good chances of winning the case since Customs is treating the
sticker labels as goods while importing and hence no provision has been
made for the same.
Sl. No. iv: Commissioner Appeals has given the Order in favour of the
Company but the Department has preferred Appeal before CESTAT
Sl. No. v: Commissioner, Customs has given the Order in favour of the
Company but the Department has appealed to CESTAT
i Figures of the previous year have been recast / regrouped /
rearranged in confirmity with the presentation of the current year.
Figures in bracket relates to the previous year.
Mar 31, 2014
1. a. Terms / Rights attached to equity shares
The Company has only one class of equity shares having par value of Rs.
10 per share. Each holder of an equity share is entitled to one vote
per share. The Company declares and pays dividend in Indian Rupees. The
dividend proposed by the Board of Directors is subject to the approval
of share holders in the Annual General Meeting.
During the year, the Company has not declared any dividend.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of shares held by the equity share
holders.
2. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED
FOR)
CONTINGENT LIABILITIES
Other money for which Company is contingently liable
a. Employees Provident Fund
Contributions under appeal [Net of
Rs. 10,69,469/- deposited with the
respective authorities ] 3,36,896 14,06,365
b. Central Sales Tax liability under
appeal 1,12,61,292 1,56,21,840
c. Service Tax Liability under dispute
on the import of software license
sticker labels considered as goods by
Customs while importing 10,34,66,834 9,22,36,515
d. Education cess on excise duty 3,26,098 3,26,098
e. Disputed Customs Duty 7,70,839 7,70,839
f. Other disputed tax liabilities - 5,95,520
3. Notes:
Sl. No. a : The Honourable High Court of Karnataka has directed the
Assistant Provident Commissioner to consider the grievance of the
Company for reducing the penalty
Sl. No. b: Financial year 2001-02 to 2004-05:- Karnataka Appellate
Tribunal (KAT) has given relief to the Company to the extent of Rs.
30,91,083/- as allowed in the case of Adeshwar Granites Pvt. Ltd by the
Honourable High Court (HC) of Karnataka. Ref.: STA No. 17/2010 and
122-123/2012 dated 13th July, 2012 of High Court of Karnataka. Further
KAT has directed the Deputy Commissioner to rectify the error in
respect of Rs. 23,06,054/-. The Company has filed the appeal before the
High Court of Karnataka in respect of the balance.
Sl. No. c: In respect of Service Tax pending before the Commissioner /
CESTAT the Company''s Consultants are of the opinion that the Company
has good chances of winning the case since Customs is treating the
sticker labels as goods while importing and hence no provision has been
made for the same.
Sl.No. d: Commissioner Appeals has given the Order in favour of the
Company but the Department has preferred Appeal before CESTAT
Sl. No. e: Commissioner, Customs has given the Order in favour of the
Company but the Department has appealed to CESTAT
4. a. Leave Salary:
The Company has made provision for leave salary on estimated basis.
These being retirement benefits, an obligation to pay these amounts
might arise at the time of resignation / superannuation of the
employees. There is no reimbursement receivable against these
obligations. The provision is made based on actuarial valuation.
b. Investments:
VXL Instruments Limited, U.K., a subsidiary in which the Company has
60% share holding amounting to Rs. 51,69,261/- has accumulated losses
in excess of its total paid up capital. Net receivable from VXL
Instruments Limited, U.K., as at 31st March 2014 is Rs. 5,89,13,634/-
(Rs. 6,66,06,528/-). However, the subsidiary Company has made profits
during the last four financial years. Further the said Subsidiary has
remitted Rs. 76,92,894 {(12 % of the Outstanding). {Rs. 11,93,400/- (2%
of the outstanding)} during the year towards old dues. Considering
these facts, the management is of the opinion that no provision is
deemed necessary in respect of the Company''s investment in and the
amounts due to the Company.
c. Retirement Benefit Plans:
1. Defined contribution plans
The Company makes Provident Fund contributions to defined contribution
retirement benefit plans for qualifying employees. Under the scheme,
the Company is required to contribute a specified percentage of the
payroll costs to fund the benefits.
The Company recognised Rs. 21,45,585/- (Rs. 17,21,240/-) for provident
fund contributions in the profit and loss account. The contributions
payable to these plans by the Company are at rates specified in the
rules of the schemes.
5. Defined benefit plans:
The Company makes annual contributions to the Employees'' Group
Gratuity-cum-Life Assurance Scheme Master Policy of the Life Insurance
Corporation of India, a defined benefit plan for qualifying employees.
The scheme provides for lump sum payment to vested employees at
retirement, death while in employment or on termination of employment
of an amount equivalent to 15 days salary payable for each completed
year of service or part thereof in excess of six months. Vesting occurs
upon completion of five years of service. The present value of the
defined benefit obligation and the related current service cost were
measured using the Projected Unit Credit Method, with actuarial
valuations being carried out at each balance sheet date.
The expected return on plan assets is determined considering several
applicable factors mainly the composition of the plan assets held,
assessed risks of asset management, historical results of the return on
plan assets and the Company''s policy for plan asset management
6. a. Segment Information:
The Company''s segment information is as follows:
Primary/Secondary Segment reporting format
The risk return profile of the Company''s business is determined based
on the geographical area in which it operates. Therefore, Geographical
Segments have been identified as Primary Segments
Secondary Segments have been identified on the basis of the nature of
products manufactured by the Company
Segment assets and liabilities
Fixed assets used in the Company''s business and liabilities contracted
have not been identified to any of the reportable segments as the fixed
assets and services are used interchangeably between segments
b. Operating Leases:
The Company has taken various residential / commercial premises under
cancelable operating leases. These lease agreements are normally
renewed on expiry. The lease agreements provide an option to the
Company to renew the lease period at the end of the period. There are
no exceptional / restrictive covenants in the lease agreements. Rent
debited to profit and loss account Rs. 30,82,970/- (Rs. 13,08,994/-).
Contingent rent recognized in the Profit and Loss Account Rs. Nil.
c. Confirmation of balance under Sundry Debtors, Loans & Advances,
deposits and sundry creditors, other current liabilities are not
obtained. In the opinion of the management Current assets and Loans &
Advances would in the ordinary course of business realise the values
stated. Confirmation of balance has been obtained from Priya Limited
which forms over 90% of Sales and Purchases.
d. The revised Schedule VI is applicable to the Company for the year
under review. The Company has reclassified previous year figures to
conform to the current year''s presentation.
Mar 31, 2013
Change in Accounting Policies
The Company has changed the basis of determining cost from weighted
average method to First in First Out method for determining the cost
formula for valuation of inventory. Due to the change, the inventory as
at March 31, 2013, has been reduced by Rs. 25,97,888/- with
consequential effect on profit for the year.
a. Leave Salary
The Company has made provision for leave salary on estimated basis.
These being retirement benefits, an obligation to pay these amounts
might arise at the time of resignation / superannuation of the
employees. There is no reimbursement receivable against these
obligations. The provision is made based on actuarial valuation.
b. Investments :
VXL Instruments Limited, U.K., a subsidiary in which the Company has
60% share holding amounting to Rs.51,69,261/- has accumulated losses in
excess of its total paid up capital. Net receivable from VXL
Instruments Limited, U.K., as at 31st March 2013 is Rs. 6,66,06,528/-
(Rs. 6,77,99,928). However, the subsidiary Company has made profits
during the last four financial years. Further the said Subsidiary has
remitted Rs. 11,93,400/- during the FY 2012-13 and Rs. 54,00,960/-
during the F.Y. 2013-14 towards old dues. Since October 2010, the
Company has received Rs. 2,88,68,806/- against old receivables from
customers other than VXL UK. With this the Company has realised almost
the entire old receivables from customers other than VXL UK. The
Company has also obtained further extension of time of six months from
Reserve Bank of India to collect the old receivables. Considering these
facts, the management is of the opinion that no provision is deemed
necessary in respect of the Company''s investment in and the amounts due
to the Company.
c. Retirement Benefit Plans
1. Defined contribution plans
The Company makes Provident Fund contributions to defined contribution
retirement benefit plans for qualifying employees. Under the scheme,
the Company is required to contribute a specified percentage of the
payroll costs to fund the benefits.
The Company recognised Rs. 17,21,240/- (Rs.11,15,394/-) for provident
fund contributions in the profit and loss account. The contributions
payable to these plans by the Company are at rates specified in the
rules of the scheme.
2. Defined benefit plans
The Company makes annual contributions to the Employees'' Group
Gratuity-cum-Life Assurance Scheme Master Policy of the Life Insurance
Corporation of India, a defined benefit plan for qualifying employees.
The scheme provides for lump sum payment to vested employees at
retirement, death while in employment or on termination of employment
of an amount equivalent to 15 days salary payable for each completed
year of service or part thereof in excess of six months. Vesting occurs
upon completion of five years of service. The present value of the
defined benefit obligation and the related current service cost were
measured using the Projected Unit Credit Method, with actuarial
valuations being carried out at each balance sheet date.
The expected return on plan assets is determined considering several
applicable factors mainly the composition of the plan assets held,
assessed risks of asset management, historical results of the return on
plan assets and the Company''s policy for plan asset management
d. Segment Information
The Company''s segment information is as follows:
Primary/Secondary Segment reporting format
The risk return profile of the Company''s business is determined based
on the geographical area in which it operates. Therefore, Geographical
Segments have been identified as Primary Segments
Secondary Segments have been identified on the basis of the nature of
products manufactured by the Company
Segment assets and liabilities
Fixed assets used in the Company''s business and liabilities contracted
have not been identified to any of the reportable segments as the fixed
assets and services are used interchangeably between segments
e. Disclosure of related parties / related party transactions
a. Parties where control exists
Name of the Related Party Nature of Relationship
i. VXL Instruments Limited (UK) Subsidiary. The Company holds 60% in
the nominal value of the equity share capital
b. Other related parties with whom transactions were carried out
during the year
Name of the Related Party Nature of Relationship
Sattva eTech Private Limited Company in which a Director is interested
Ksense Technologies Private Limited Company in which a Director is
interested
c. Key management personnel and their relatives
Mr. Madireddy V. Nagaraj, Managing Director
Mrs. Shanthi Nagaraj, (Wife of Mr. M. V. Nagaraj)
Mr. M.V. Shetty, Whole-Time Director
Ms. Ridhima Shetty (Daughter of Mr. M. V. Shetty)
Mr. Rishabh Shetty (Son of Mr. M. V. Shetty)
Mrs. Pravina Shetty (Wife of Mr. M. V. Shetty)
Mr. N V Maslekar Director
f. Operating Leases:
The Company has taken various residential / commercial premises under
cancelable operating leases. These lease agreements are normally
renewed on expiry. The lease agreements provide an option to the
Company to renew the lease period at the end of the period. There are
no exceptional / restrictive covenants in the lease agreements. Rent
debited to profit and loss account Rs. 13,08,994 (Rs. 14,30,191).
Contingent rent recognized in the Profit and Loss Account Rs. Nil.
g. Confirmation of balance under Sundry Debtors, Loans & Advances,
deposits and sundry creditors, other current liabilities are not
obtained. In the opinion of the management Current assets and Loans &
Advances would in the ordinary course of business realise the values
stated. Confirmation of balance has been obtained from Priya Limited
which forms over 90% of Sales and Purchases
h. The revised Schedule VI is applicable to the Company for the year
under review. The Company has reclassified the previous year figures to
conform to the current year''s presentation.
Mar 31, 2012
A. Terms / Rights attached to equity shares
The Company has only one class of equity shares having par value of Rs.
10 per share. Each holder of an equity share is entitled to one vote
per share. The Company declares and pays dividend in Indian Rupees. The
dividend proposed by the Board of Directors is subject to the approval
of share holders in the Annual General Meeting.
During the year, the Company has not declared any dividend.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of shares held by the equity share
holders.
* Term loan from banks is secured by hypothecation of vehicles. The
loan is repayable in 60 equated monthly instalments of Rs. 28,970/-
each. and 36 equated monthly instalments of Rs. 11,934/- each.
Instalments payable within a year Rs. 528,878 (Rs. 371,000)
** Other long term borrowing is repayable after 2 years
CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
CONTINGENT LIABILITIES
Other money for which Company is contingently liable
a. Bills discounted with Banks (secured
by letters of credit from buyer's bankers) 13,500,000 85,000,000
b. Employees Provident Fund Contributions
under appeal [Out of which Rs. 10,69,469/-
has been deposited with the respective
authorities and shown under non current
assets] 1,406,365 1,406,365
c. Central Sales Tax liability under
appeal [Out of which Rs. 43,60,548/- has
been deposited with the respective
authorities and shown under non current
assets] 15,621,840 5,878,406
d. Service Tax Liability under dispute
on the import of software license sticker
labels considered as goods by Customs
while importing 76,682,997 -
e. Education cess on excise duty 326,098 -
f. Other disputed tax liabilities 595,520 595,520
g. The Company has closed the unit manufacturing GVX terminals as the
product GVX terminal has been phased out. On this workmen raised
certain objection which has been rejected by the Secretary, Department
of Labour. Now the matter is before the High Court of Karnataka.
Provision has been made for Rs. 19,72,505/- towards settlement amount
due to employees of the unit. Additional liability if any, on this
account is not ascertainable and will be provided on settlement of the
dispute.
a. Leave Salary
The Company has made provision for leave salary on estimated basis.
These being retirement benefits, an obligation to pay these amounts
might arise at the time of resignation / superannuation of the
employees. There is no reimbursement receivable against these
obligations. The provision is made based on actuarial valuation.
b. Investments:
VXL Instruments Limited, U.K., a subsidiary in which the Company has
60% share holding amounting to Rs. 5,169,261/- has accumulated losses
in excess of its total paid up capital. Net receivable from VXL
Instruments Limited, U.K., as at 31st March 2012 is Rs. 67,799,928/-
(Rs. 67,799,928). In the opinion of the Directors no provision is
deemed necessary in respect of the Company's investments in and the
amounts due to the company, from the aforesaid investee company, in
view of the long term prospects.
c. Retirement Benefit Plans:
1. Defined contribution plans
The Company makes Provident Fund contributions to defined contribution
retirement benefit plans for qualifying employees. Under the scheme,
the Company is required to contribute a specified percentage of the
payroll costs to fund the benefits.
The Company recognised Rs. 1,115,394/- (Rs. 730,064/-) for provident
fund contributions in the profit and loss account. The contributions
payable to these plans by the Company are at rates specified in the
rules of the schemes.
2. Defined benefit plans
The Company makes annual contributions to the Employees' Group
Gratuity-cum-Life Assurance
Scheme Master Policy of the Life Insurance Corporation of India, a
defined benefit plan for qualifying employees. The scheme provides for
lump sum payment to vested employees at retirement, death while in
employment or on termination of employment of an amount equivalent to
15 days salary payable for each completed year of service or part
thereof in excess of six months. Vesting occurs upon completion of five
years of service. The present value of the defined benefit obligation
and the related current service cost were measured using the Projected
Unit Credit Method, with actuarial valuations being carried out at each
balance sheet date.
The expected return on plan assets is determined considering several
applicable factors mainly the composition of the plan assets held,
assessed risks of asset management, historical results of the return on
plan assets and the Company's policy for plan asset management
vi Segment Information
The Company's segment information is as follows:
Primary/Secondary Segment reporting format
The risk return profile of the Company's business is determined based
on the geographical area in which it operates. Therefore, Geographical
Segments have been identified as Primary Segments.
Secondary Segments have been identified on the basis of the nature of
products manufactured by the Company.
d. Segment assets and liabilities
Fixed assets used in the Company's business and liabilities
contracted have not been identified to any of the reportable segments
as the fixed assets and services are used interchangeably between
segments.
e. Operating Leases:
The Company has taken various residential / commercial premises under
cancelable operating leases. These lease agreements are normally
renewed on expiry. The lease agreements provide an option to the
Company to renew the lease period at the end of the period. There are
no exceptional / restrictive covenants in the lease agreements. Rent
debited to profit and loss account Rs. 1,430,191 (Rs. 1,269,543).
Contingent rent recognized in the Profit and Loss Account Rs. Nil.
f. Confirmation of balance under Sundry Debtors, Loans & Advances,
deposits and sundry creditors, other current liabilities are not
obtained. In the opinion of the management Current assets and Loans &
Advances would in the ordinary course of business realise the values
stated. Confirmation of balance has been obtained from Priya Limited
which forms over 90% of Sales and Purchases.
g. The revised Schedule VI is applicable to the Company for the year
under review. The Company has reclassified the previous year figures to
conform to the current year's presentation.
Mar 31, 2011
1. Provisions, Contingent Liabilities & Contingent Assets.
As at As at
Particulars 31st March, 2011 31st March, 2010
Rs. Rs.
A Guarantees issued by Bankers 18,590,567 21,824,518
B Liability on account of bills
discounted with Banks (Secured
by Letters of Credit from
buyers' bankers) 8,50,00,000 57,500,000
C Employees' Provident Fund
contributions under appeal [Out of
which Rs 1,069,469/- has been
deposited with respective authority
and shown under Current Assets]. 14,06,365 14,06,365
D Central Sales Tax Liability
under appeal [Out of which
Rs. 4,360,548 /- has been
deposited with respective authority
and shown under Current Assets]. 5,878,406 3,327,514
E. Other disputed tax liabilities 5,95,520 5,95,520
F. The Company has closed the unit manufacturing CRT Terminals as the
product GVX terminal has been phased out. On this, workmen raised
certain objection which has been rejected by the Secretary, Department
of Labour. Provision has been made for Rs. 19,72,505/- towards
settlement amount due to employees of the unit. Additional liability if
any, on this account is not ascertainable and will be provided on
settlement of the dispute.
G. The Company has made provision for leave salary on estimated basis.
These being retirement benefits, an obligation to pay these amounts
might arise at the time of resignation / superannuation of the
employees. There is no reimbursement receivable against these
obligations. The provision is made based on actuarial valuation.
(Amount in Rs.)
Nature of The carrying Additional provisions Amounts
obligation amount at the made during the year incurred and
beginning of the charged
period against
the provision
during the
period
Leave Salary 2,237,472 Ã 260,463
Nature of
obligation Unused amounts The carrying
reversed during amount at the
the period end of the period
Leave Salary 103,908 1,873,101
2. The Company holds investments in the following companies as under:
1. VXL Instruments Limited, U.K., a subsidiary in which the Company
has 60% share holding amounting to Rs. 5,169,261/- has accumulated
losses in excess of its total paid up capital. Net receivable from VXL
Instruments Limited, U.K., as at 31st March 2011 is Rs. 62,706,509 (Rs.
79,186,388/-). During the year under review the company has received
Rs.16,479,879/- towards old receivables. Further, the subsidiary has
earned profit during the year under review and also during the previous
year. Considering these facts and in view of the long term prospects,
in the opinion of the management no provision is deemed necessary in
respect of the Company's investments in and the amounts due to the
company, from the aforesaid investee company.
2. XLnet Software Systems Limited, a 100% subsidiary, in which the
total investment by the company is Rs. 1,500,000/- has been wound up
during the year. Amount due from XLnet Software Systems Limited, as at
31st March 2010, classified under Loans and Advances is Rs. 2,437,394/-
and classified under sundry debtors is Rs. 13,821/- have been written
off during the year.
3. Freehold Land of the Company has been revalued as on 31st March
2011 based on valuation obtained by the Company and the resulting
credit of Rs. 79,323,254/- has been credited to revaluation reserve.
4. Retirement Benefit Plans
Defined contribution plans
The Company makes Provident Fund contributions to defined contribution
retirement benefit plans for qualifying employees. Under the scheme,
the Company is required to contribute a specified percentage of the
payroll costs to fund the benefits.
The Company recognised Rs. 730,064/- (Rs. 826,145/-) for provident fund
contributions in the profit and loss account. The contributions payable
to these plans by the Company are at rates specified in the rules of
the schemes.
Defined benefit plans
The Company makes annual contributions to the Employees' Group
Gratuity-cum-Life Assurance Scheme Master Policy of the Life Insurance
Corporation of India, a defined benefit plan for qualifying employees.
The scheme provides for lump sum payment to vested employees at
retirement, death while in employment or on termination of employment
of an amount equivalent to 15 days salary payable for each completed
year of service or part thereof in excess of six months. Vesting occurs
upon completion of five years of service. The present value of the
defined benefit obligation and the related current service cost were
measured using the Projected Unit Credit Method, with actuarial
valuations being carried out at each balance sheet date.
The expected return on plan assets is determined considering several
applicable factors mainly the composition of the plan assets held,
assessed risks of asset management, historical results of the return on
plan assets and the Company's policy for plan asset management.
5. Other Current liabilities includes dues to Directors Rs. 300,000/-
(Rs. 300,000/-)
6. Managerial Remuneration under section 198 of the Companies Act,
1956.
Due to inadequacy of profits, minimum remuneration as per Schedule XIII
of the Companies Act has been paid to Whole Time Directors.
Consequently, providing of information u/s 349 & 350 of the Companies
Act, related to computation of managerial remuneration is not
applicable
7. Finance Charges include interest paid on deposit to Managing
Director and Whole time Director Rs. 295,827/- (Rs. 538,751/-)
8. Segment Information
The Company's segment information is as follows:
a Primary Segments (Geographical Segments)
Primary/Secondary Segment reporting format
i) The risk return profile of the Company's business is determined
based on the geographical area in which it operates. Therefore,
Geographical Segments have been identified as Primary Segments
ii) Secondary Segments have been identified on the basis of the nature
of products manufactured by the Company
Segment assets and liabilities
Fixed assets used in the Company's business and liabilities contracted
have not been identified to any of the reportable segments as the fixed
assets and services are used interchangeably between segments
9. Disclosure of related parties / related party transactions
a. Parties where control exists
Name of the Related Party Nature of Relationship
i. XLnet Software Systems Limited Wholly Owned Subsidiary
(The Company has been wound
up on 08.10.2010).
ii. VXL Instruments Limited (UK) Subsidiary. The Company holds
60% in the nominal value of
the equity share capital
b. Other related parties with whom transactions were carried out
during the year
Name of the Related Party Nature of Relationship
VXL eTech Limited Associate Company (till 30.10.2009)
c. Key management personnel and their relatives
Mr. M.V. Nagaraj, Managing Director
Mrs. Shanthi Nagaraj, (Wife of Mr. M. V. Nagaraj)
Mr. M.V. Shetty,Whole-Time Director
Ms. Ridhima Shetty (Daughter of Mr. M. V. Shetty)
Mr. Rishab Shetty (Son of Mr. M. V. Shetty)
Mrs. Pravina Shetty (Wife of Mr. M. V. Shetty)
10. Deferred Tax Assets / (Liabilities)
Deferred Tax Asset has been calculated as per the provisions of
Accounting Standard (AS) 22 Ã Accounting for Taxes on Income - issued
by the Institute of Chartered Accountants of India. In respect of
Deferred Tax Asset of Rs. 100,404,865/-(Rs. 106,267,948 /-) detailed
below, the Company's management is confident of earning sufficient
profits in the future to be able to set off this amount and hence the
Deferred Tax Asset has been recognised and quantified.
11. The Company is engaged in the manufacture and export of data
processing units. The quantitative details of turnover, comsumption and
stocks and the information as required under paragraphs 3, 4C, and 4D
of Part II of Schedule VI of the Companies Act, 1956 is furnished to
the extent applicable to the Company.
Consequent to the Central Government giving a general exemption to
manufacturing companies from disclosure of break up of turnover and raw
material consumption and stocks under para 3 (i) (a) and 3 (ii) (a),
the same are not disclosed
12. Operating Leases : The Company has taken various residential /
commercial premises under cancelable operating leases. These lease
agreements are normally renewed on expiry. The lease agreements provide
an option to the Company to renew the lease period at the end of the
period. There are no exceptional / restrictive covenants in the lease
agreements. Rent debited to profit and loss account Rs. 1,269,543 (Rs.
1,263,432).
Contingent rent recognized in the Profit and Loss Account Rs. Nil.
13. Securities for Loans:
Working Capital from a Bank is secured by hypothecation of Inventories,
receivables, Book-Debts and other Current Assets, Equitable Mortgage of
Factory Land and Building and immovable property of the company and
Charge on un-encumbered Plant and Machinery and personal guarantee of
some of the Directors.
Hire Purchase Finance from a bank for purchase of vehicle is secured by
hypothecation of vehicle. Installments payable within a year Rs.
371,267/-(Rs. 331,589/-)
14. Lien on Term Deposit: Out of Rs. 16,480,207/- term deposit Rs.
15,000,000/- is under lien for Bank Guarantee and Letter of Credit
15. Previous year's figures have been recast and regrouped wherever
necessary to make comparable with those of the current year. Figures in
bracket relate to previous year
Mar 31, 2010
1. Provisions, Contingent Liabilities & Contingent Assets.
As at As at
Particulars 31st March,2010 31st March,2009
Rs. Rs.
A Guarantees issued by Bankers 21,824,518 16,456,347
B Liability on account of
bills discounted with Banks.
(Secured by Letters of Credit
from buyers bankers) 57,500,000 63,500,000
C Employees Provident Fund
contributions under appeal
[Out of which Rs 1,069,469/-
has been deposited with
respective authority and
shown under Current Assets]. 2,138,938 2,138,938
D Central Sales Tax Liability
under appeal
(VAT Audit 2005-06) 3,327,514 Nil
E. The Company has informed the Govt. of Karnataka of its intention to
close the unit, manufacturing CRT Terminals as the product GVX terminal
has been phased out. The matter is before the Labour Department/ Labour
Court. Contingent liability, if any, on this has not been quantified.
F. The Company has made provision for leave salary on estimated basis.
These being retirement benefits, an
obligation to pay these amounts might arise at the time of resignation
/ superannuation of the employees.
There is no reimbursement receivable against these obligations. The
provision is made based on actuarial valuation.
(Amount in Rs. )
Nature of obligation The carrying Additional provisions Amounts
amount at the incurred
beginning of made during the year and
the charged
period against
the
provi
sion
during
the
period
Leave Salary 19,10,122 4,76,180 1,48,830
Nature of obligation Unused amounts The carrying
reversed during amount at the
the period end of the
period
Leave Salary Nil 22,37,472
2. The Company holds investments in the following companies as under:
1. VXL Instruments Limited, U.K., a subsidiary in which the Company
has 60% share holding amounting to Rs. 5,169,261/- has accumulated
losses in excess of its total paid up capital. Net receivables from VXL
Instruments Limited, U.K., as at 31st March 2010 is Rs.79,186,388/-
(79,225,266/-). In the opinion of the Directors no provision is deemed
necessary in respect of the CompanyÃs investments in and the amounts
due to the company, from the aforesaid investee company, in view of the
long term prospects. Since these bills are outstanding for a
substantial period, the same have been stated at the exchange rate
prevailing at the time of Billing.
2. XLnet Software Systems Limited, a 100% subsidiary, in which the
total investment by the company is Rs. 1,500,000 has accumulated losses
in excess of its paid up capital and has temporarily discontinued
business since 2004. Amount due from XLnet Software Systems Limited, as
at 31st March 2010, classified under Loans and Advances is Rs.
24,37,394 (Rs. 24,37,394) and classified under sundry debtors is Rs.
13,821 (Rs. 13,821). The Company has made provision for investment in
and amounts due from the Company.
a. Apart from the receivable referred in to clause 2 (1) above Sundry
Debtors includes Rs. 17,088 (Rs. 7,690,622/-) overdue for long period.
In the opinion of the management they are recoverable and hence no
provision is made for the same.
b. Confirmation of balance of certain parties under Sundry Debtors,
Loans & Advances, Deposits and Sundry Creditors, Other Current
Liabilities are not obtained. In the opinion of the management Current
assets and Loans & Advances would in the ordinary course of business
realise the values stated. Confirmation of balance has been obtained
from Priya Ltd which forms over 90% of sales & purchases.
3. Freehold Land of the Company has been revalued as on 26th February
2008 based on valuation obtained by the Company and the resulting
credit of Rs. 211,438,226 has been credited to revaluation reserve.
4. Retirement Benefit Plans
Defined contribution plans
The Company makes Provident Fund contributions to defined contribution
retirement benefit plans for qualifying employees. Under the scheme,
the Company is required to contribute a specified percentage of the
payroll costs to fund the benefits.
The Company recognised Rs.826,145 (Rs. 681,613/-) for provident fund
contributions in the profit and loss account. The contributions payable
to these plans by the Company are at rates specified in the rules of
the schemes.
Defined benefit plans
The Company makes annual contributions to the Employeesà Group
Gratuity-cum-Life Assurance Scheme Master Policy of the Life Insurance
Corporation of India, a defined benefit plan for qualifying employees.
The scheme provides for lump sum payment to vested employees at
retirement, death while in employment or on termination of employment
of an amount equivalent to 15 days salary payable for each completed
year of service or part thereof in excess of six months. Vesting occurs
upon completion of five years of service. The present value of the
defined benefit obligation and the related current service cost were
measured using the Projected Unit Credit Method, with actuarial
valuations being carried out at each balance sheet date.
5. Finance Charges include interest paid on deposit to Managing
Director and Whole Time Director Rs. 5,38,751/-. (Rs. 9,96,595/-)
6. Segment Information
The Companys segment information is as follows:
Segment assets and liabilities
Fixed assets used in the CompanyÃs business and liabilities contracted
have not been identified to any of the reportable segments as the fixed
assets and services are used interchangeably between segments
7. Disclosure of related parties / related party transactions
a. Parties where control exists
Name of the Related Party Nature of Relationship
i. XLnet Software Systems Limited Wholly Owned Subsidiary
ii. VXL Instruments Limited (UK) Subsidiary. The Company
holds 60% in the nominal
value of the equity share
capital
b. Other related parties with whom transactions were carried out
during the year
Name of the Related Party Nature of Relationship
VXL eTech Limited Associate Company
c. Key management personnel and their relatives
Mr. M.V. Nagaraj, Managing Director
Mrs. Shanthi Nagaraj, (Wife of Mr. M V Nagaraj)
Mr. M.V. Shetty, Wholetime Director
Ms. Ridhima Shetty (Daughter of Mr. M V Shetty)
Mr. Rishab Shetty (Son of Mr. M V Shetty)
Mrs. Pravina Shetty (Wife of Mr. M. V. Shetty)
8. Operating Leases: The Company has taken various residential /
commercial premises under cancelable operating leases. These lease
agreements are normally renewed on expiry. Rent debited to profit and
loss account Rs. 12,63,432 (Rs. 12,62,016).
The lease agreements provide an option to the Company to renew the
lease period at the end of the period. There are no exceptional /
restrictive covenants in the lease agreements.
Contingent rent recognized in the Profit and Loss Account Rs. Nil
9. Securities for Loans:
Working Capital from a Bank is secured by hypothecation of Inventories,
Receivables, Book-Debts and other Current Assets, Equitable Mortgage of
Factory Land and Building and immovable property of the company and
Charge on un-encumbered Plant and Machinery and personal guarantee of
some of the Directors.
Installments due within a year Rs. Nil Lakhs (Rs. 165.00 Lakhs).
Hire Purchase Finance from a bank for purchase of vehicle is secured by
hypothecation of vehicle.
Installments payable within a year Rs. 331,589 (Rs.Nil)
10. Lien on Term Deposit: Out of Rs. 20,289,233/- term deposit Rs.
18,865,901/- is under lien for Bank Guarantee and Letter of Credit
11. Previous years figures have been recast and regrouped wherever
necessary to make comparable with those of the current year. Figures
in Bracket relate to previous year.
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