Mar 31, 2018
1 General Information
GKB Ophthalmics Limited (the âCompanyâ) is a public limited company domiciled in India and was incorporated on 10th December 1981 under the provisions of the Companies Act, 1956 applicable in India. Its registered and principal office of business is located at 16-A, Tivim Industrial Estate, Mapusa, Goa 403 526, India.
The company manufactures and deals in unfinished ophthalmic lenses made up of Glass and Plastic.
The financial statements of the Company for the year ended 31 March 2018 were authorised in accordance with a resolution of the directors on 30th May, 2018.
2 Significant accounting judgments, estimates and assumptions
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future years.
2.1 Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the year end date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
a) Taxes
Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.
b) Defined benefit plans (gratuity benefits and leave encashment)
The cost of the defined benefit plans such as gratuity and leave encashment are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each year end.
The principal assumptions are the discount and salary growth rate. The discount rate is based upon the market yields available on government bonds at the accounting date with a term that matches that of liabilities. Salary increase rate takes into account of inflation, seniority, promotion and other relevant factors on long term basis. For details refer Note 38.
3 Standards (including amendments) issued but not yet effective
The standards and interpretations that are issued, but not yet effective up to the date of issuance of the financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective.
(a) Appendix B to Ind AS 21, Foreign currency transactions and advance consideration
On 28th March, 2018, Ministry of Corporate Affairs (âMCAâ) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from 1st April, 2018. The Company is currently evaluating the requirements of amendments. The Company believe that the adoption of this amendment will not have a material effect on its financial statements.
(b) Ind AS 115- Revenue from Contract with Customers
On March 28, 2018, Ministry of Corporate Affairs (âMCAâ) has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entityâs contracts with customers.
The standard permits two possible methods of transition:
(i) Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors
(ii) Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach) The effective date for adoption of Ind AS 115 is financial periods beginning on or after 1st April, 2018.
The Company is currently evaluating the requirements of amendments. The Company believes that the adoption of this amendment will not have a material effect on its financial statements.
4 First-time adoption of Ind-AS
These financial statements are the first set of Ind AS financial statements prepared by the Company. Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for year ending on 31st March 2018, together with the comparative year data as at and for the year ended 31st March 2017, as described in the significant accounting policies. In preparing these financial statements, the Companyâs opening balance sheet was prepared as at 1st April 2016, being the Companyâs date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1st April 2016 and the financial statements as at and for the year ended 31st March,2017.
4.1 Exemptions availed on first time adoption of Ind AS
Ind AS 101, First-time Adoption of Indian Accounting Standards, allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has accordingly applied the following exemptions.
(a) Deemed Cost
Since there is no change in the functional currency, the Company has elected to continue with carrying value for all of its property, plant and equipment as recognized in its Indian GAAP financial statements as its deemed cost at the date of transition after making adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38, Intangible Assets and investment properties. Accordingly the management has elected to measure all of its property, plant and equipment, investment properties and intangible assets at their Indian GAAP carrying value.
(b) Estimates
An entityâs estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with Indian GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
(c) Derecognition of financial assets and financial liabilities
A first-time adopter should apply the derecognition requirements in Ind AS 109, Financial Instruments, prospectively to transactions occurring on or after the date of transition. Therefore, if a first-time adopter derecognized non-derivative financial assets or non-derivative financial liabilities under its Indian GAAP as a result of a transaction that occurred before the date of transition, it should not recognize those financial assets and liabilities under Ind AS (unless they qualify for recognition as a result of a later transaction or event). A first-time adopter that wants to apply the derecognition requirements in Ind AS 109,Financial Instruments, retrospectively from a date of the entityâs choosing may only do so, provided that the information needed to apply Ind AS 109,Financial Instruments, to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.
The Company has elected to apply the de-recognize provisions of Ind AS 109 prospectively from the date of transition to Ind AS.
(d) Classification and measurement of financial assets
Ind AS 101, First-time Adoption of Indian Accounting Standards, requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.
4.2 Reconciliations
The following reconciliations provides the effect of transition to Ind AS from Indian GAAP in accordance with Ind AS 101, Firsttime Adoption of Indian Accounting Standards:
(b) Other commitments
The Company is a 100% EOU registered under the SEEPZ Special Economic Zone. As per the amendment to Letter of Permission dated November 20, 2008, the Company was required to achieve export turnover of USD 35.82 million and Net Foreign Exchange Earning (NFE) of USD 3.26 million during the period April 1, 2008 to March 31, 2013. Although the Company achieved Net Foreign Exchange Earnings (NFE) as required, export turnover obligation remained unfulfilled to the extent of USD 8.03 million. By letter dated May 27, 2013, the EOU status of the Company has been further extended by a period of 5 years. However, the letter granting the extension does not make any mention of export turnover obligation. The Company is of the view that the condition of achieving export turnover no longer applies and the only requirement is that the Company should be NFE positive.
Note 5
Disclosures as required by Indian Accounting Standard (Ind AS) 19 âEmployee Benefitsâ:
a) Defined Contribution Plans :
Contribution to Defined Contribution Plans, recognised as an expense and included under âEmployee Benefits Expensesâ Note 33 to the Statement of Profit and Loss are as under :
Employerâs contribution to Provident Fund and EDLI Rs 20,93,869 (31 March 2017: Rs 17,40,926)
Employerâs contribution to Family Pension Scheme Rs 19,15,896 (31 March 2017: Rs 19,29,458 )
Employerâs contribution to Employees State Insurance Scheme Rs 19,62,265 (31 March 2017: Rs 17,35,077 )
Employerâs contribution to Superannuation Fund Rs 1,68,863 (31 March 2017: Rs 1,85,316)
Employerâs contribution to Labour Welfare Fund Rs 1,05,630 (31 March 2017: Rs 1,30,495)
b) Defined Benefit Plans :
The Companyâs gratuity and leave encashment plans are defined benefit plans :
General description of the defined benefit plans :
1) The Company operates a gratuity scheme, which is a funded scheme for qualifying employees, except in the case of directors where the scheme is unfunded. The scheme provides for lump sum payment to employees on retirement, death, while in employment or termination of employment or an amount equivalent to 15 days salary for every completed year of service or part thereof in six months, provided the employee has completed 5 years of service.
2) The Company operates a leave encashment scheme, which is a unfunded scheme. The present value of obligation under this scheme is based on an actuarial valuation using the Projected Unit Credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
Note 6
Disclosures as required by Indian Accounting Standard (IAS) 24 - Related Party Disclosures :
(a) Relationships:
List of related parties where control exists:
(i) Subsidiary companies
1 GKB Ophthalmics Products FZE
2 GKB Ophthalmics GmbH
(ii) Associates/ Enterprises in which directors exercise significant influence
1 Prime Lenses Pvt Ltd
2 GKB Vision Private Limited
3 Lensco-The Lens Company
4 GKB Opticals Limited
5 GKB Optic Technologies Pvt.Ltd.
6 GKB Vision FZC
(iii) Key Management Personnel
1 Mr. K.G Gupta - Managing Director
(iv) Relatives of key management personnel
1 Mrs. Veena Gupta
2 Mr. Gaurav Gupta
3 Mr. Vikram Gupta
4 Mr. K. M. Gupta (resigned w.e.f. 9th August, 2017)
(b) The following transactions were carried out with the related parties in the ordinary course of business:
Note 7
Accounting classifications and fair values
The fair value of other current financial assets, cash and cash equivalents, bank balances other than cash and cash equivalents, trade receivables, loans and advances, trade payables, short-term borrowings and other financial liabilities approximate the carrying amounts because of the short term nature of these financial instruments.
The amortized cost using effective interest rate (EIR) of non-current financial assets are not significantly different from the carrying amount.
Carrying values of non-current security deposits and non-current term deposits are not significant and therefore the impact of fair value is not considered for disclosure.
The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
- Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
- Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
-Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)
The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:
Note 8
Financial Risk Management
The Company is exposed to various financial risks. These risks are categorized into market risk, credit risk and liquidity risk. The Companyâs risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.
(A) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings.
Equity Price Risk
The companyâs investment portfolio consists of investments in publicly traded companies, unquoted equity instruments carried at fair value in the balance sheet.The Company has investments in unquoted equity instruments.
(B) Credit risk
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.
The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forward-looking information such as :
(i) Actual or expected significant adverse changes in business,
(ii) Actual or expected significant changes in the operating results of the counterparty,
(iii) Financial or economic conditions that are expected to cause a significant change to the counterpartyâs ability to meet its obligations,
(iv) Significant increases in credit risk on other financial instruments of the same borrower
(v) Significant changes in the value of the collateral supporting the obligationor in the quality of third-party guarantees or credit enhancements
Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the company. The company categorises a loan or receivable for write off when a debtor fails to make contractual payments greater than 2 years past due. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in profit or loss.
Balances with banks is subject to low credit risks due to good credit ratings assigned to these banks.
The ageing analysis of the receivables (gross of provision) has been considered from the date the invoice falls due.
(C) Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Companyâs corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Companyâs net liquidity position through rolling forecasts on the basis of expected cash flows.
Maturity profile of financial liabilities
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.
Capital management
For the purposes of the Companyâs capital management, capital includes issued capital and all other equity reserves. The primary objective of the Companyâs Capital Management is to maximise shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.
Note 9
Disclosures as required by Indian Accounting Standard (Ind AS) 108 - Segment Reporting :
a) Operating Segment :
The Companyâs operations predominantly relate to manufacturing of unfinished ophthalmic lenses made up of Glass and Plastic. The Chief Operating Decision Maker (CODM) reviews the operations of the Company as one operating segment.
b) Geographical Segment :
* Revenue within India includes deemed export sales of Rs 9,14,53,415 (31 March 2017: Rs 13,79,43,004) made to other EOU units in India Figures in brackets pertain to the previous year
Country wise breakup of revenue and assets outside India
Note 10 : The products manufactured by the company do not have a warranty period, hence provision for warranty as specified in Accounting Standard (AS) 37 on âProvisions, Contingent Liabilities and Contingent Assetsâ is not required to be made.
Note 11 : During the year the Company has not capitalised any borrowing costs as per Ind AS 23- âBorrowing costsâ.
Note 12 : The Companyâs international and domestic transfer pricing certification is carried out by an independent firm of Chartered Accountants.
The Company has established a system of maintenance of documents and information as required by the transfer pricing legislation u/s. 92-92F of the Income Tax Act, 1961. Up to 31 March, 2017, the last date for which the transfer pricing certification was carried out, there were no adjustments made to the transactions entered into with âassociated enterprisesâ as defined in section 92A of the Income Tax Act, 1961. The management believes that the international transactions and specified domestic transactions entered into with âassociated enterprisesâ during the financial year are at armâs length price and that there will be no impact on the amount of tax expense or the provision of tax on the application of the transfer pricing legislation to such transactions.
Note 13: Unclaimed dividend: There is no amount due to be credited to the Investors Education & Protection Fund as at 31 March, 2018.
Note 14: As per Ind AS 36 âImpairment of Assetsâ, the Company has reviewed potential generation of economic benefits from fixed assets.
Accordingly, no impairment loss has been provided for the year ended 31 March, 2018 (31 March 2017: Rs Nil, 01 April 2016: Rs Nil) in the books.
Note 15: Previous yearâs figures have been regrouped/ reclassified to correspond to current yearâs classification/ disclosure.
Mar 31, 2016
Note
(a) Secured term loans from banks:
Vehicle loan of Rs. 917,654/- (previous year Rs. Nil) is repayable in 48 equated monthly installment from November, 2015. Vehicle loan of Rs. 257,728/- (previous year Rs. 410,452) is repayable in 47 equated monthly installment from November, 2013. Vehicle loan of Rs. Nil (previous year Rs. 128,598) is repayable in 48 equated monthly installment from April, 2012.
Term loan of Rs. Nil (Previous year Rs. 3,681,623) is repayable in 28 monthly installments from January, 2014.
Term loan of Rs. Nil (Previous year Rs. 9,438,022) is repayable in 35 monthly installments from January, 2014.
Term loan of Rs. Nil (Previous year Rs. 1,561,967) is repayable in 34 monthly installments from January, 2014.
(b) Secured term loans from financial institutions:
Vehicle loan of Rs. 877,901/- (previous year Rs. Nil) is repayable in 36 equated monthly installment from November, 2015.
Note 1:
During the year the Company sold the entire shareholding in GKB Vision Limited, an associate company, in which the Company was holding 36.47% of the equity paid up share capital. The said shares were sold on 2nd July 2015 for a net consideration of Rs. 228,800,982/-, resulting in a net gain of Rs. 218,191,122/- over the book value of the said shares of Rs. 10,609,860/-.
Note 2:
During the year, consequent to issue of additional equity shares by Prime Lenses Private Limited (PLPL), without a change in the holding of the Company, the shareholding of the Company in PLPL has reduced to 14.26% consequent to which PLPL has ceased to be an associate company.
Note :
Due from others includes reinstated amount of Rs. Nil (net of provision of Rs. 590,124) (previous year Rs. 623,536) due from Sarl Imol (Bengherbia), Algeria; Rs. 3,887,099 (previous year Rs. 1,780,338) due from Precision Optical, U.K; Rs. 264,633 (previous year Rs. Nil) due from International Co. for Optical & Hearing Aids Ind., Jordan; Rs. 3,228,180 (previous year Rs. Nil) due from Dehlawi Optical Industry, Saudi Arabia and Rs. 287,654 (previous year Rs. 272,784) due from Pamonte SA, Ecuador against exports which are overdue for a period exceeding 12 months. The Company proposes to apply to the Reserve Bank of India (RBI), to regularize the transaction.
b) Other commitments
The Company is a 100% EOU registered under the SEEPZ Special Economic Zone. As per the amendment to Letter of Permission dated November 20, 2008, the Company was required to achieve export turnover of USD 35.82 million and Net Foreign Exchange Earning (NFE) of USD 3.26 million during the period April 1, 2008 to March 31, 2013. Although the Company achieved Net Foreign Exchange Earnings (NFE) as required, export turnover obligation remained unfulfilled to the extent of USD 8.03 million. By letter dated May 27, 2013, the EOU status of the Company has been further extended by a period of 5 years. However, the letter granting the extension does not make any mention of export turnover obligation. The Company is of the view that the condition of achieving export turnover no longer applies and the only requirement is that the Company should be NFE positive.
1) The Company operates a gratuity scheme, which is a funded scheme for qualifying employees, except in the case of directors where the scheme is unfunded. The scheme provides for lump sum payment to employees on retirement, death, while in employment or termination of employment or an amount equivalent to 15 days salary for every completed year of service or part thereof in six months, provided the employee has completed 5 years of service.
2) The Company operates a leave encashment scheme, which is a unfunded scheme. The present value of obligation under this scheme is based on an actuarial valuation using the Projected Unit Credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
3 During the year the Company has not capitalized any borrowing costs as per Accounting Standard (AS)
4 - "Borrowing costs".
5 Disclosures as required by Accounting Standard (AS) 17 - Segment Reporting : a) Primary Segment :
The Company operates in one primary segment i.e. ophthalmic lenses, and that is the only primary reportable segment.
* Revenue within India includes deemed export sales of Rs. 61,247,181 (Previous Year Rs. 37,961,333) made to other EOU units in India Figures in brackets pertain to the previous year
The above information and that given in Note 7 - "Trade Payables" pertaining to micro and small enterprises has been determined to the extent such parties have been identified on the basis of the information available with the Company. This has been relied upon by the auditors.
6 Disclosures as required by Accounting Standard (AS) 18 - Related Party Disclosures :
(a) Relationships:
List of related parties with whom transactions were carried out during the year or previous year:
(i) Associates/ Enterprises in which directors exercise significant influence
1 Prime Lenses Pvt Ltd
2 GKB Vision Limited
3 Lensco-The Lens Company
4 GKB Opticals Limited
5 GKB Optic Technologies Pvt.Ltd.
(ii) Key Management Personnel
1 Mr. K.G Gupta - Managing Director
(iii) Relatives of key management personnel
1 Mrs. Veena Gupta
2 Mr. Gaurav Gupta
3 Mr. Vikram Gupta
4 Mr. K. M. Gupta
7 There were no Loans and Advances in the nature of loans given to subsidiaries and associates. Hence disclosure requirements of clause 32 of the Listing Agreement are not applicable.
8 Unclaimed dividend: There is no amount due to be credited to the Investors Education & Protection Fund as at 31st March, 2016.
9 Disclosures as required by Accounting Standard (AS) 20 - Earning per share :
10. As per Accounting Standard (AS) 28 "Impairment of Assets", the Company has reviewed potential generation of economic benefits from fixed assets. Accordingly, no impairment loss has been provided for the year ended March 31, 2016 (previous year - Nil) in the books.
11. The products manufactured by the company do not have a warranty period, hence provision for warranty as specified in Accounting Standard (AS) 29 on "Provisions, Contingent Liabilities and Contingent Assets" is not required to be made.
12 The Company''s international and domestic transfer pricing certification is carried out by an independent firm of Chartered Accountants. The Company has established a system of maintenance of documents and information as required by the transfer pricing legislation u/s. 92-92F of the Income Tax Act, 1961. Up to March 31, 2015, the last date for which the transfer pricing certification was carried out, there were no adjustments made to the transactions entered into with ''associated enterprises'' as defined in section 92A of the Income Tax Act, 1961. The Management believes that the international transactions and specified domestic transactions entered into with ''associated enterprises'' during the financial year are at arm''s length price and that there will be no impact on the amount of tax expense or the provision of tax on the application of the transfer pricing legislation to such transactions.
13. Previous year''s figures have been regrouped/reclassified, to correspond to current year''s classification/disclosure.
Mar 31, 2015
1. Rights, preferences and restrictions attached to shares
The company has one class of equity shares having a par value of Rs. 10
per share. Each shareholder is eligible for one vote per share held.
The dividend proposed by the Board of Directors is subject to the
approval of shareholders in the ensuing Annual General Meeting except
in case of interim dividend. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the
Company in proportion to their shareholding.
2. Nature of security :
The above short term borrowings from banks are secured by hypothecation
of the inventories, book debts receivable and other current assets, and
personal guarantees of three directors and corporate guarantee of GKB
Vision Limited, an associate company.
3. Contingent Liabilities Rs. Rs.
a) Sales tax liability that
may arise in respect of
matters in appeal 11,170,738 11,170,738
b) Excise duty liability that may
arise in respect of matters in dispute 51,747,843 3,361,887
c) Other claims against the Company
not acknowledged as debts - 7,525,000
d) Guarantees given on behalf of
associate companies. 363,008,000 312,108,000
e) Bills discounted 9,615,392 9,881,502
f) Letters of credit outstanding 21,619,309 7,714,789
g) Bank guarantees 5,229,403 5,229,403
4. It is not practical to estimate the timing of outflows in respect of
''a'', ''b'' and ''c'' above pending resolution of legal proceedings.
Commitments Rs. Rs.
a) Estimated amount of contracts
remaining to be executed on capital
account and not - -
provided for (net of advances)
b) Other commitments
The Company is a 100% EOU registered under the SEEPZ Special Economic
Zone. As per the amendment to Letter of Permission dated November 20,
2008, the Company was required to achieve export turnover of USD 35.82
million and Net Foreign Exchange Earning (NFE) of USD 3.26 million
during the period April 1, 2008 to March 31, 2013. Although the Company
achieved Net Foreign Exchange Earnings (NFE) as required, export
turnover obligation remained unfullfilled to the extent of USD 8.03
million. By letter dated May 27, 2013, the EOU status of the Company
has been further extended by period of 5 years. However, the letter
granting the extension does not make any mention of export turnover
obligation. The Company is of the view that the condition of achieving
export turnover no longer applies and the only requirement is that the
Company should be NFE positive.
5. Disclosures as required by Accounting Standard (AS) 15 "Employee
Benefits": a) Defined Contribution Plans :
Contribution to Defined Contribution Plans, recognised as an expense
and included under "Employee Benefits Expenses"
6. to the Statement of Profit and Loss are as under :
* Employer''s contribution to Provident Fund and EDLI Rs.1,434,650
(Previous year Rs.1,296,171)
* Employer''s contribution to Family Pension Scheme Rs.1,326,089
(Previous year Rs.1,103,600 )
* Employer''s contribution to Employees State Insurance Scheme
Rs.1,555,731 (Previous year Rs. 1,285,686 )
* Employer''s contribution to Superannuation Fund Rs.437,495 (Previous
year Rs.310,903)
* Employer''s contribution to Labour Welfare Fund Rs.58,380 (Previous
year Rs.47,805)
7. eneral description of the defined benefit plans :
1) The Company operates a gratuity scheme, which is a funded scheme for
qualifying employees, except in the case of directors where the scheme
is unfunded. The scheme provides for lump sum payment to employees on
retirement, death, while in employment or termination of employment or
an amount equivalent to 15 days salary for every completed year of
service or part thereof in six months, provided the employee has
completed 5 years of service.
2) The Company operates a leave encashment scheme, which is a unfunded
scheme. The present value of obligation under this scheme is based on
an actuarial valuation using the Projected Unit Credit method, which
recognises each period of service as giving rise to additional unit of
employee benefit entitlement and measures each unit separately to build
up the final obligation.
8. During the year the Company has not capitalised any borrowing costs
as per Accounting Standard (AS) 16 - "Borrowing costs".
9. Disclosures as required by Accounting Standard (AS) 17 - Segment
Reporting : a) Primary Segment :
The Company operates in one primary segment i.e. ophthalmic lenses, and
that is the only primary reportable segment.
10. Disclosures as required by Accounting Standard (AS) 18 - Related
Party Disclosures :
(a) Relationships:
List of related parties with whom transactions were carried out during
the year or previous year:
(i) Subsidiary companies
1 GKB Ophthalmics Products FZE
2 GKB Ophthalmics GmbH
(ii) Associates/ Enterprises in which directors exercise significant
influence
1 Prime Lenses Pvt Ltd
2 GKB Vision Limited
3 Lensco-The Lens Company
4 GKB Opticals Limited
5 GKB Optic Technologies Pvt.Ltd.
(iii) Key Management Personnel
1 Mr. K.G Gupta - Chairman and Managing Director
(iv) Relatives of key management personnel
1 Mrs. Veena Gupta
2 Mr. Gaurav Gupta
3 Mr. Vikram Gupta
4 Mr. K. M. Gupta
11. There were no Loans and Advances in the nature of loans given to
subsidiaries and associates. Hence disclosure requirements of clause 32
of the Listing Agreement are not applicable.
12. Unclaimed dividend: There is no amount due to be credited to the
Investors Education & Protection Fund as at 31st March, 2015.
13. As per Accounting Standard (AS) 28 "Impairment of Assets", the
Company has reviewed potential generation of economic benefits from
fixed assets. Accordingly, no impairment loss has been provided for the
year ended March 31, 2015 (previous year - Nil) in the books.
14. The products manufactured by the company do not have a warranty
period, hence provision for warranty as specified in Accounting
Standard (AS) 29 on "Provisions, Contingent Liabilities and Contingent
Assets" is not required to be made.
15. The Company''s international and domestic transfer pricing
certification is carried out by an independent firm of Chartered
Accountants. The Company has established a system of maintenance of
documents and information as required by the transfer pricing
legislation u/s. 92-92F of the Income Tax Act, 1961. Up to March 31,
2014, the last date for which the transfer pricing certification was
carried out, there were no adjustments made to the transactions entered
into with ''associated enterprises'' as defined in section 92A of the
Income Tax Act, 1961. The Management believes that the international
transactions and specified domestic transactions entered into with
''associated enterprises'' during the financial year are at arm''s length
price and that there will be no impact on the amount of tax expense or
the provision of tax on the application of the transfer pricing
legislation to such transactions.
16. No Provision for current tax expense has been made in the current
year due to tax losses incurred by the Company.
17. Previous year''s figures have been regrouped/reclassified, to
correspond to current year''s classification/disclosure.
Mar 31, 2014
1 Contingent Liabilities and Commitments : 31.03.2014 31.03.2013
Contingent Liabilities Rs. Rs.
a) Sales tax liability that may arise 11,170,738 11,170,738
in respect of matters in appeal
b) Excise duty liability that may arise 3,361,887 3,361,887
in respect of matters in appeal
c) Other claims against the Company not 7,525,000 7,525,000
acknowledged as debts
d) Guarantees given on behalf of associate 312,108,000 306,108,000
companies.
e) Bills discounted 9,881,502 14,898,384
f) Letters of credit outstanding 7,714,789 15,710,536
g) Bank guarantees 5,229,403 5,379,403
Note :
It is not practical to estimate the timing of outflows in respect of
''a'', ''b'' and ''c'' above pending resolution of legal proceedings.
Commitments Rs. Rs.
a) Estimated amount of contracts remaining to be executed on capital
account and not - -
provided for (net of advances)
b) Other commitments
The Company is a 100% EOU registered under the SEEPZ Special Economic
Zone. As per the amendment to Letter of Permission dated November 20,
2008, the Company was required to achieve export turnover of USD 35.82
million and Net Foreign Exchange Earning (NFE) of USD 3.26 million
during the period April 1, 2008 to March 31,2013. Although the Company
achieved Net Foreign Exchange Earnings (NFE) as required, it did not
meet the export turnover obligation.
By letter dated May 27, 2013, the period for achievement of export
targets has been extended upto March 31,2018. As at March 31, 2014, the
export turnover ob ligatio n re maining to be achieved is USD 8.03 mil
-lion .
2 Trade receivable, loans and advances and trade payable balances are
subject to confirmation, reconciliation and consequent adjustments, i f
any.
3 Disclosures as required by Accounting Standard (AS) 15 "Employee
Benefits": a) Defined Contribution Plans :
Contribution to Defined Contribution Plans, recognised as an expense
and included under "Employee Benefits Expenses"
Note 4 to the Statement of Profit and Loss are as under :
- Employer''s contribution to Provident Fund and EDLI Rs.1,296,171
(Previous year Rs.1,278,195)
- Employer''s contribution to Family Pension Scheme Rs.1,103,600
(Previous year Rs.1,056,240 )
- Employer''s contribution to Employees State Insurance Scheme
Rs.1,285,686 (Previous year Rs.1,178,245 )
- Employer''s contribution to Superannuation Fund Rs.310,903 (Previous
year Rs.322,225)
- Employer''s contribution to Labour Welfare Fund Rs.47,805 (Previous
year Rs.43,010)
5 During the year the Company has not capitalised any borrowing costs
as per Accounting Standard (AS) 16 - "Borrowing costs".
6 Disclosures as required by Accounting Standard (AS) 17 - Segment
Reporting : a) Primary Segment :
The Company operates in one primary segment i.e. ophthalmic lenses, and
that is the only primary reportable segment.
7 Disclosures as required by Accounting Standard (AS) 18 - Related
Party Disclosures :
(a) Relationships:
List of related parties with whom transactions were carried out during
the year or previous year:
(i) Subsidiary companies
1 GKB Ophthalmics Products FZE
2 GKB Ophthalmics GmbH
(ii) Associates/ Enterprises in which directors exercise significant
influence
1 Prime Lenses Pvt Ltd
2 GKB Vision Limited
3 Lensco-The Lens Company
4 GKB Opticals Limited
5 GKB Optic Technologies Pvt.Ltd.
6 GKB Rx Lens Pvt Ltd
7 Indo Prime Visual Technologies Pvt Ltd
(iii) Key Management Personnel
1 Mr. K.G Gupta - Chairman and Managing Director
(iv) Relatives of key management personnel
1 Mrs. Veena Gupta
2 Mr. Gaurav Gupta
3 Mr. Vikram Gupta
4 Mr. K. M. Gupta
8 There were no Loans and Advances in the nature of loans given to
subsidiaries and associates. Hence disclosure requirements of clause 32
of the Listing Agreement are not applicable.
9 Unclaimed dividend: There is no amount due to be credited to the
Investors Education & Protection Fund as at 31st March, 2014
10 As per Accounting Standard (AS) 28 "Impairment of Assets", the
Company has reviewed potential generation of economic benefits from
fixed assets. Accordingly, no impairment loss has been provided for the
year ended March 31, 2014 (previous year - Nil) in the books.
11 During the previous year, the Company terminated the Joint Venture
agreement and applied to the Ministry of Corporate Affairs (MCA) under
the Easy Exit Scheme for the de-registration and dissolution of the
Joint Venture entity, M/s Indo Prime Visual Technologies Private
Limited. Accordingly, the value of investment in the Joint Venture
entity was written off during the previous year after considering the
realisation proceeds of Rs. 185,656/-.
12 The products manufactured by the company do not have a warranty
period, hence provision for warranty as specified in Accounting
Standard (AS) 29 on "Provisions, Contingent Liabilities and Contingent
Assets" is not required to be made.
13 The Company''s international and domestic transfer pricing
certification is carried out by an independent firm of Chartered
Accountants. The Company has established a system of maintenance of
documents and information as required by the transfer pricing
legislation u/s. 92-92F of the Income Tax Act, 1961. Up to March 31,
2013, the last date for which the transfer pricing certification was
carried out, there were no adjustments made to the transactions entered
into with ''associated enterprises'' as defined in section 92A of the
Income Tax Act, 1961. The Management believes that the international
transactions and specified domestic transactions entered into with
''associated enterprises'' during the financial year are at arm''s length
price and that there will be no impact on the amount of tax expense or
the provision of tax on the application of the transfer pricing
legislation to such transactions.
14 Previous year''s figures have been regrouped/reclassified, to
correspond to current year''s classification/disclosure.
Mar 31, 2013
31.03.2013 31.03.2012
1 Contingent Liabilities and
Commitments :
Contingent Liabilities Rs. Rs.
a) Sales tax liability that may
arise in respect of matters in
appeal 11,170,738 11,170,738
b) Excise duty liability that may
arise in respect of matters
in appeal 3,361,887 3,361,887
c) Other claims against the
Company not acknowledged as debts 7,525,000 7,140,000
d) Guarantees given on behalf of
associate companies. 306,108,000 306,108,000
e) Bills discounted 14,898,384 22,500,515
f) Letters of credit outstanding 15,710,536 19,841,978
g) Bank guarantees 5,379,403 5,252,568
2 Trade receivable, loans and advances and trade payable balances are
subject to confirmation, reconciliation and consequent adjustments, if
any.
3 Disclosures as required by Accounting Standard (AS) 15 "Employee
Benefits":
a) Defined Contribution Plans :
Contribution to Defined Contribution Plans, recognised as an expense
and included under "Employee Benefit Expenses" Note 21 to the Statement
of Profit and Loss are as under :
- Employer''s contribution to Provident Fund and EDLI Rs.1,278,195
(Previous year Rs. 1,139,840)
- Employer''s contribution to Family Pension Scheme Rs. 1,056,240
(Previous year Rs. 1,025,332)
- Employer''s contribution to Employees State Insurance Scheme Rs.
1,178,245 (Previous year Rs. 1,151,033)
- Employer''s contribution to Superannuation Fund Rs. 322,225 (Previous
year Rs. 318,344)
b) Defined Benefit Plans :
The Company''s gratuity and leave encashment plans are defined benefit
plans :
4 During the year the Company has not capitalised any borrowing costs
as per Accounting Standard (AS) 16 - "Borrowing costs".
5 Disclosures as required by Accounting Standard (AS) 17 - Segment
Reporting :
a) Primary Segment :
The Company operates in one primary segment i.e. ophthalmic lenses, and
that is the only primary reportable segment.
b) Secondary Segment (Geographical Segment) :
6 Disclosures as required by Accounting Standard (AS) 18 - Related
Party Disclosures :
(a) Relationships:
List of related parties with whom transactions were carried out during
the year or previous year:
(i) Subsidiary companies
1 GKB Ophthalmics Products FZE
2 GKB Ophthalmics GmbH
(ii) Associates/Joint venture/Enterprises in which directors exercise
significant influence
1 Prime Lenses Pvt Ltd
2 GKB Vision Limited
3 GKB Rx Lens Pvt Ltd
4 Indo Prime Visual Technologies Pvt Ltd
5 Lensco-The Lens Company
6 GKB Opticals Limited
(iii) Key Management Personnel
1 Mr. K.G Gupta - Chairman and Managing Director
(iv) Relatives of key management personnel
1 Mrs. Veena Gupta
2 Mr. Gaurav Gupta
3 Mr. Vikram Gupta
4 Mr. K. M. Gupta
7 There were no Loans and Advances in the nature of loans given to
subsidiaries and associates. Hence disclosure requirements of clause 32
of the Listing Agreement are not applicable.
8 Unclaimed dividend: There is no amount due to be credited to the
Investors Education & Protection Fund as at 31st March, 2013
9 As per Accounting Standard (AS) 28 "Impairment of Assets", the
Company has reviewed potential generation of economic benefits from
fixed assets. Accordingly, no impairment loss has been provided for the
year ended March 31, 2013 (previous year - Nil) in the books.
10 Disclosure as required by Accounting Standard (AS) 27 - " Financial
Reporting of Interests in Joint Ventures"
a) Details of Investment in Joint Venture *
Name of the Joint Venture Entity : Indo Prime Visual Technologies
Private Limited Description of Interest : Incorporated Joint Venture
(Sale of Indo equipment in India) Proportion of Interest : 48.50%
Country of incorporation : India
* During the year, the Company terminated the joint venture agreement
and an application has been made to the Ministry of Corporate Affairs
(MCA) under the Easy Exit Scheme for the de-registration and
dissolution of the Joint Venture entity. Accordingly, the value of
investment in the Joint Venture entity has been written off during the
year after considering the realisation proceeds of Rs. 185,656/-.
11 The products manufactured by the company do not have a warranty
period, hence provision for warranty as specified in Accounting
Standard (AS) 29 on "Provisions, Contingent Liabilities and Contingent
Assets" is not required to be made.
12 The Company''s international and domestic transfer pricing
certification is carried out by an independent firm of Chartered
Accountants. The Company has established a system of maintenance of
documents and information as required by the transfer pricing
legislation u/s. 92-92F of the Income Tax Act, 1961. Up to March 31,
2012, the last date for which the transfer pricing certification was
carried out, there were no adjustments made to the transactions entered
into with ''associated enterprises'' as defined in section 92A of the
Income Tax Act, 1961. The Management believes that the international transactions and specified domestic transactions entered into with
''associated enterprises'' during the financial year are at arm''s length
price and that there will be no impact on the amount of tax expense or
the provision of tax on the application of the transfer pricing
legislation to such transactions.
13 Previous year''s figures have been regrouped/reclassified, to
correspond to current year''s classification/disclosure.
Mar 31, 2012
Rights, preferences and restrictions attached to shares
The company has one class of equity shares having a par value of Rs. 10
per share. Each shareholder is eligible for one vote per share held.
The dividend proposed by the Board of Directors is subject to the
approval of shareholders in the ensuing Annual General Meeting except
in case of interim dividend. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the
Company in proportion to their shareholding.
Nature of security :
The above short term borrowings from banks are secured by hypothecation
of the inventories, book debts receivable and other current assets and
personal guarantees of three directors and corporate guarantee of GKB
Vision Limited, an associate company.
* Purchases include prior period items of Rs. Nil (previous year
reversal of Rs. 1,737,159)
* Interest expenses on borrowings include prior period items of Rs. Nil
(previous year Rs. 2,524)
** Interest expenses on account of Income Tax includes interest related
to earlier years Rs. 6,229,000 (previous year Rs. 3,219,096)
Note:
* Rates and taxes include prior period items of Rs. Nil (previous year
Rs. 70,897)
# Freight and forwarding expenses include prior period items of Rs. Nil
(previous year Rs. 15,776)
1 Contingent Liabilities and Commitments :
31.03.2012 31.03.2011
Contingent Liabilities Rs. Rs.
a) Sales tax liability that may arise
in respect of matters in appeal 11,170,738 -
b) Excise duty liability that may arise
in respect of matters in appeal 3,361,887 3,361,887
c) Guarantees given on behalf of
associate companies 306,108,000 52,198,000
d) Bills discounted 22,500,515 -
e) Letters of credit outstanding 19,841,978 76,415,440
f) Bank guarantees 5,252,568 5,102,568
Note :
ii) It is not practical to estimate the timing of outflows in respect
of ''a'' and ''b'' above pending resolution of legal proceedings.
2 Trade receivable, loans and advances and trade payable balances are
subject to confirmation, reconciliation and consequent adjustments, if
any.
3 Disclosures as required by Accounting Standard (AS) 15 "Employee
Benefts":
a) Defned Contribution Plan:
Contribution to Defined Contribution Plan, recognised as an expense and
included under "Employee Benefits
Expenses"
Note 21 to the Statement of Profit and Loss are as under :
- Employer''s contribution to Provident Fund and EDLI Rs.1,139,840
(Previous year Rs. 1,077,766)
- Employer''s contribution to Family Pension Scheme Rs. 1,025,332
(Previous year Rs. 991,589)
- Employer''s contribution to Employees State Insurance Scheme Rs.
1,151,033 (Previous year Rs. 1,141,526)
- Employer''s contribution to Superannuation Fund Rs. 318,344 (Previous
year Rs. 475,671)
General description of the defned beneft plan ;
1) The Company operates a gratuity scheme, which is a funded scheme for
qualifying employees, except in the case of directors where the scheme
is unfunded. The scheme provides for lump sum payment to employees on
retirement, death, while in employment or termination of employment or
an amount equivalent to 15 days salary for every completed year of
service or part thereof in six months, provided the employee has
completed 5 years of service.
2) The Company operates a leave encashment scheme, which is a unfunded
scheme. The present value of obligation under this scheme is based on
an actuarial valuation using the Projected Unit Credit method, which
recognises each period of service as giving rise to additional unit of
employee benefit entitlement and measures each unit separately to build
up the final obligation.
4 During the year the Company has not capitalised any borrowing costs
as per Accounting Standard (AS) 16 - "Borrowing costs".
5 Disclosures as required by Accounting Standard (AS) 17 - Segment
Reporting :
a) Primary Segment :
The Company operates in one primary segment i.e. ophthalmic lenses, and
that is the only primary reportable segment.
* Revenue within India includes deemed export sales of Rs. 36,423,476
(Previous Year Rs. 34,285,394) made to other EOU units in India.
Figures in brackets pertain to the previous year.
6 Disclosure under the Micro, Small and Medium Enterprises Development
Act, 2006 (MSMED Act) as at 31st March, 2012, as per information
available with the Company.
The above information and that given in Note 7 - "Trade Payables"
pertaining to micro and small enterprises has been determined to the
extent such parties have been identified on the basis of the
information available with the Company. This has been relied upon by
the auditors.
7 Disclosures as required by Accounting Standard (AS) 18 - Related
Party Disclosures:
(a) Relationships:
List of related parties with whom transactions were carried out during
the year:
(i) Subsidiary companies
1 GKB Ophthalmics Products FZE
2 GKB Ophthalmics GmbH
(ii) Associates/Joint venture
1 Prime Lenses Pvt. Ltd.
2 GKB Vision Limited
3 GKB Rx Lens Pvt. Ltd.
4 Indo Prime Visual Technologies Pvt. Ltd.
5 Lensco-The Lens Company
6 GKB Opticals Limited
(iii) Key Management Personnel
1 Mr. K.G. Gupta - Chairman and Managing Director
(iv) Relatives of key management personnel
1 Mrs. Veena Gupta
2 Mr. Gaurav Gupta
3 Mr. Vikram Gupta
4 Mr. K. M. Gupta
Note: Amounts paid/received includes amounts charged/credited to the
statement of profit and loss.
8 There were no Loans and Advances in the nature of loans given to
subsidiaries and associates. Hence disclosure requirements of Clause
32 of the Listing Agreement is not applicable.
9 Unclaimed dividend: There is no amount due to be credited to the
Investors Education & Protection Fund as at 31st March, 2012.
10 As per Accounting Standard (AS) 28 "Impairment of Assets", the
Company has reviewed potential generation of economic benefits from
fixed assets. Accordingly, no impairment loss has been provided for the
year ended March 31, 2012 (previous year - Nil) in the books.
11 The products manufactured by the company do not have a warranty
period, hence provision for warranty as specified in Accounting
Standard (AS) 29 on "Provisions, Contingent Liabilities and Contingent
Assets" is not required to be made.
12 The Company''s transfer pricing certification is carried out by an
independent firm of Chartered Accountants. The Company has established
a system of maintenance of documents and information as required by the
transfer pricing legislation u/s. 92-92F of the Income Tax Act, 1961.
Up to March 31, 2011, the last date for which the transfer pricing
certification was carried out, there were no adjustments made to the
transactions entered with ''associated enterprises'' as defined in
Section 92A of the Income Tax Act, 1961. The Management believes that
the international transactions entered into with ''associated
enterprises'' during the financial year are at arm''s length price and
that there will be no impact on the amount of tax expense or the
provision of tax on the application of the transfer pricing legislation
to such transactions.
13 Consequent to the notification of Revised Schedule VI under the
Companies Act, 1956, the Company has prepared the financial statements
for the year ended 31st March, 2012 as per the requirements of the
Revised Schedule VI issued by the Ministry of Corporate Affairs.
Accordingly, the figures for the previous year have been regrouped /
reclassified to conform to the current year''s classification. Further,
the adoption of the Revised Schedule VI for the previous year''s figures
does not impact recognition and measurement principles followed for
preparation of the financial statements.
Mar 31, 2011
1. Contingent liabilities not provided for:
As at As at
31.03.2011 31.3.2010
(a) Letter of credit outstanding 76,415,440 42,414,159
(b) Bank Guarantees 5,102,568 5,102,568
(c) Corporate Guarantees 52,198,000 52,198,000
(d) Bills discounted 16,348,310 17,846,589
(e) Disputed Demand in respect of:
- Central Excise 3,361,887 3,361,887
* Not Applicable due to the abolition of Industrial Licenses as per
notification issued under the Industries Development and Regulation
Act, 1951.
** Installed Capacity is as certified by the Managing Director and
relied upon by the auditors, being a technical matter.
B) Particulars in Respect of Goods Traded (Ophthalmic Lenses)
C) Raw Materials Consumed
D) Value of Raw Materials Consumed
E) Value of Stores, Spares and Consumable Tools Consumed
F) Value of imports calculated on CIF Basis
2. Micro, Small and Medium Enterprises Development Act, 2006
Disclosure pertaining to Micro, Small and Medium Enterprises(as per
information available with the company)
3. a) The Company holds an investment of Euros 25,624.92 i.e. Rs.
10,81,488/- (Previous year Rs.10,81,488/-) in GmbH, which had informed
the Company that although it holds the entire capital of the GmbH there
is no "Subsidiary - Holding Company" relationship between the two
Companies as per the German Law. The latest financial statement
received from the GmbH is for the year ended 31.12.2010 and GmbH has
incurred a loss in Euro 620,97 compared to the Loss of Euros 902,37 in
the previous year ended on 31.12.2009. The financial statement of the
company and GKB Ophthalmics GmbH, a company incorporated in Germany has
therefore not been consolidated due to absence of subsidiary holding
relationship.
b) The GmbH has also intimated to the Company that it holds in the GmbH
only one share for the entire investment. No share Certificate has
however been issued to the company, since as per the German Law no such
certificate is required to be issued to the shareholder.
4. The Company had during the earlier year invested a sum of DHS
150,000/- ( Rs.1,830,150/-) in GKB Ophthalmic Products FZE in Saif
Zone, Sharjah, U.A.E. The GKB Ophthalmic Products FZE ("the FZE") was
incorporated on 29.02.2004 in the Sharjah Airport International Free
Zone, Sharjah as a Free Zone Establishment with limited Liability.
The FZE has informed the Company that although it holds the entire
capital of the FZE there is no "Subsidiary - Holding Company"
relationship between the two Companies as per the U.A.E Law. The
enterprise is licensed to import, export and Distribution of Optical
Products. The latest financial statement received from the FZE is for
the year ended 31.12.2010 and the FZE has earned a profit of DHS
822,682 as compared to the profits of DHS 786,847/- previous period
ended 31.12.2009. The financial statement of the Company and GKB
Ophthalmics Products FZE, an establishment incorporated in U.A.E have
therefore not been consolidated due to absence of subsidiary holding
relationship.
The FZE has also intimated to the Company that it holds in the
Establishment only one share of DHS. 150,000/- for the entire
investment.
5. During the year the company sold 5,32,592 Equity shares held by it
in Prime Lenses Pvt. Ltd. to GKB Vision Ltd. a company in which the 3
directors of the company are directors for a Book Value of Rs.
2,87,60,000/-.
6. Non Accounting of Dividend:
GKB Ophthalmic Products FZE, whose entire share capital is held by the
company had declared dividend of Rs.44,23,000 for the year ending
31.12. 2010 after the close of the accounting year of the company. As
per the requirement of the schedule VI, the said dividend should have
been recognised as income since the same is in respect of the period
which was closed before the date of the Balance Sheet of the company.
However the company has not recognised the said dividend as income in
the accounts for the year, as the GKB Ophthalmic Products FZE has not
been considered as subsidiary of the company in view of the explanation
given in note no. 5.
7. Advances recoverable in cash or in kind or for value to be received
include:
8. Particulars in respect of Loans and Advances in the nature of loans
as required by the listing agreement.
NOTE : There were no Loans and Advances where interest is not charged
or charged below bank rate.
9. After the end of the year, the Company has sent Balance
Confirmation letters to the parties showing debit/credit outstanding
balances as on 31st March, 2011. Very few parties have confirmed their
balances. Necessary adjustments, if any shall be made in the accounts
on the settlements of the outstanding balances of the remaining
parties.
10. Unclaimed Dividend: There is no amount due to be credited to
Investors Education & Protection Fund.
The Company has been advised that the computation of net profit for the
purpose of Directors remuneration under Section 349 of Companies Act,
1956 need not be enumerated since no commission by way of percentage of
profits is payable for the year to any of the directors of the Company.
In accordance with Accounting Policy No. I-k, the Company assessed at
the end of the year, whether there is any indication that any asset may
be impaired. During this assessment, the Company found that no Asset
has been impaired, hence no impairment loss is recognised in the
accounts of the year.
11. Disclosure of related parties/related party transactions :
The Company has identified all related parties and details of
transactions are given below. No provision for doubtful debts or
advances is made. Also no amounts have been written off or written back
during the year in respect of debts due from related parties.
NOTE : Related party relationship is as identified by the Company and
relied upon by the Auditors.
12. Segment Information:
i) Primary Segments: Business Segment
The Company is primarily engaged in a single segment business of a
manufacture and sale of Ophthalmics lenses and that is the only primary
reportable segment. The Company''s operations are solely situated in
India.
ii) Secondary Segments: Geographical Segment
Both the units of the Company are 100% Export Oriented Units. The
secondary segmental reporting is based on the geographical location of
customers. The geographical segments have been disclosed based on
revenues within India (sales to customers in India) and revenues
outside India (sales to customers located outside India).
The Company has common Assets for producing goods for Domestic market
and Overseas market. Hence separate figures for assets / additions to
Fixed Assets cannot be furnished.
* Includes deemed export Sales of Rs.3,42,85,394/- (Previous Year
Rs.6,97,85,647/-) made to other EOU in India.
13. Earnings per share
Basic and diluted earnings per share are calculated by dividing the net
profit for the year attributable to equity shareholders by the weighted
average number of equity shares. The Company does not have any
outstanding dilutive potential equity shares. Consequently the basic
and diluted earnings per share remain the same.
14. Provision for taxation comprises of the following:
i) Provision for Wealth Tax Rs.1,21,400/- (Previous year Rs.
1,21,651/-).
ii) Rs.51,19,096/- being provision for Current Income Tax (Previous
Year Rs.1,10,00,000/-) and Rs.15,20,100/- being provision for Income
Tax in respect of earlier years (Previous Year Rs.36,58,243/-). iii)
Provision for Fringe Benefit Ta x Rs.1,30,032/- in respect of earlier
years (Previous Year Rs.1,46,893/-). iv) Provision for Deferred tax
Rs.8,84,724/- (Previous Year Rs.-16,37,694/-).
15. Payment of Cess
The Company has not made any provision for the Cess under provision of
Section 441A of the Company''s Act, 1956 in the absence of notification
regarding rate and manner of remittance.
16. Excise duty
The company which is the 100% EOU is exempted from payment of excise
duty on the Export Sales, however the company was liable to pay custom
duty which was in the nature of excise duty till 28th Feb. 2011, after
this date the company is liable to pay both the excise duty as well as
the custom duty which is in the nature of excise duty. During the year,
the company has made domestic sales of Rs.6,10,58,798/- (excluding
duty) (Previous Year Rs.4,50,47,521/-) on which the following duties
of above nature are paid to Excise Department.
17. The products manufactured by the company do not have warranty
period, hence provision for warranty as specified in AS-29 on
provision, contingent liabilities & contingent assets is not required
to be made.
18. Previous years figures have been regrouped and / or rearranged
wherever considered necessary to make their classification comparable
with that of the current year.
19. Additional information as required under Part IV of Schedule VI to
the Companies Act, 1956 Balance Sheet Abstract and Company''s General
Business Profile:
Notes: 1) Cash and cash equivalents includes "Cash and Bank Balances"
as disclosed under Schedule F of the annual accounts.
2) The aforesaid statement has been prepared under the indirect method,
as set out in "Accounting Standard 3 - Cash Flow Statement" issued by
the Institute of Chartered Accountants of India.
3) Previous years figures are regrouped/ Reclassified wherever
necessary.
Mar 31, 2010
1. The Company in its accounts of the earlier year had disclosed under
the head " Investments" 28,76,000 shares of Rsl 0/- each in Prime
Ophthalmic Products Pvt. Ltd. Subsequent to the closure of the accounts
of the earlier year the Bombay High court has approved the merger of
Prime Ophthalmic Products Pvt. Ltd in another company namely Prime
Lenses Pvt. Ltd with effect from 01.07.2009. As a consequence of this
merger the Company is entitled to receive 5,32,592 shares of Rs 1 0/-
each in Prime Lenses Pvt. Ltd. as against 28,76,000 shares of Rs. 1 0/-
each held earlier in Prime Ophthalmic Products Pvt. Ltd. Considering
the aforesaid change in the share holding, the Company has disclosed in
the accounts of current year 5,32,592 shares of Rs. 1 0/-each in Prime
Lenses Pvt. Ltd. and Nil Shares in Prime Ophthalmic Products Pvt. Ltd.
2 a) The Company had during the earlier years invested a sum of Euros
127,822.92 (Rs. 53,99,488/-) in GKB Ophthalmics GmbH, in Germany.
During the financial year 2004-05, GmbH had refunded Euros 60,000/- at
cost in partial disinvestment of capital reserves i.e. export of lenses
converted into equity. During the financial year 2006-07, GmbH has
further refunded 24,258/- Euros at cost in partial disinvestment of
Capital reserve. As on the year end, the Company holds a n investment
of Euros 25,624.92 (Rs. 10,81,488/-) in GmbH.
b) The GmbH has informed the Company that although it holds the entire
capital of the GmbH there is no "Subsidiary - Holding Company"
relationshipbetweenthetwoCompaniesaspertheGermanLaw.Thelatestfinancial
statement received from the GmbH is for the year ended 31.12.2009 and
GmbH has incurred a loss in Euro 902,37 compared to the Loss of Euros
691,20 in the previous year endedon31.12.2008. Thefinancial statement
of the company and GKB Ophthalmics GmbH, a company incorporated in
Germany has therefore not been consolidated due to absence of
subsidiary holding relationship.
c) The GmbH has also intimated to the Company that it holds in the GmbH
only one share for the entire investment. No share Certificate has
however been issued to the company, since as per the German Law no such
certificate is required to be issued to the shareholder.
3 The Company had during the earlier year invested a sum of DHS
150,000/-( Rs. 1,830,150/-) in GKB Ophthalmic Products FZE in SAIF
Zone, Sharjah, U.A.E. The GKB Ophthalmic Products FZE ("the FZF) was
incorporated on 29.02.2004 in the Sharjah Airport International Free
Zone, Sharjah as a Free Zone Establishment with limited Liability.
FZE has informed the Company that although it holds the entire capital
of the FZE there is no "Subsidiary - Holding
Company"relationshipbetweenthetwoCompaniesaspertheU.A.ELawThe
enterprise is licensed to import, export and Distribution of Optical
Products. The latest financial statement received from the FZE is for
the year ended 31.12.2009 and the FZE has earned a profit of DHS
7,86,847/- as compared to the profits of DHS 821,369/- previous period
ended 31.12.2008. The financial statement of the Company and GKB
Ophthalmics Products FZE, an establishment incorporated in U.A.E have
therefore not been consolidated due to absence of subsidiary holding
relationship.
c) The FZE has also intimated to the Company that it holds in the
Establishment only one share of DHS. 1 50,000/- for the entire
investment.
Note: There were no Loans & Advances where interest is not charged or
charged below bank rate.
4 After the end of the year, the Company has sent Balance Confirmation
letters to the parties showing debit/credit outstanding balances as on
31 st March, 2010. Some of the parties have confirmed their balances.
Necessary adjustments, if any shall be made in the accounts on the
settlements of the outstanding balances of the other remaining parties.
The Company has been advised that the computation of net profit for the
purpose of Directors remuneration under section 349 of Companies Act,
1956 need not be enumerated since no commission by way of percentage of
profits is payable for the year to any of the directors of the Company.
5. Payment of Cess
The Company has not made any provision for the Cess under provision of
section 441A of the Companys Act, 1956 in the absence of notification
regarding rate and manner of remittance.
6. Micro, Small and Medium Enterprises Development Act,2006
Disclosure pertaining to Micro, Small and Medium Enterprises (as per
information available with the company) :
7. Disclosure of related parties/related party transactions :
The Company has identified all related parties and details of
transactions are given below. No provision for doubtful debts or
advances is made. Also no amounts have been written off or written back
during the year in respect of debts dues from related parties.
i) List of Related parties :
Associate Companies/firms/parties
1. Prime Lenses Pvt. Ltd
2. GKB Vision Limited.
3. GKB Opticals Limited.
4. Gopal Krishna & Brothers.
5. GKB Rx Lens Pvt. Ltd.
6. Mega motion infotech Pvt. Ltd.
7. GKB Ophthalmics Products FZE
8. GKB Ophthalmics GmbH
9. Prime Ophthalmic Products Pvt. Ltd.
10. Indo Prime Visual Technologies Pvt. Ltd.
11. Crysta lenses Pvt. Ltd.
Key Management Personnel
1. Mr. K. G. Gupta - Chairman & Managing Director
Relatives of Key Management Personnel.
1. Mrs. Veena Gupta
2. Mr. Gaurav Gupta
3. Mrs. Shefali Chawla
4. Mr. Vipul Chawla
5. Mr. R. K. Gupta
6. Mr. B. K. Gupta
7. Mrs. Uma Gupta
8. Mr. K. M. Gupta
9. Mrs. Usha Gupta
10. Mrs. Sushma Gupta
11. Mr. N. K. Gupta
12. Dr. G. N. Agrawal
13.Vikram Gupta
NOTE : Related party relationship is as identified by the Company and
relied upon by the Auditors.
8. Segment Information:
i) Primary Segments: Business Segment The Company is primarily engaged
in a single segment business of a manufacture and sale of Ophthalmic
lenses and that is the only primary reportable segment. The Companys
operations are solely situated in India.
ii) Secondary Segments: Geographical Segment Both the units of the
Company are 100% Export Oriented Units. The secondary segmental
reporting is based on the geographical location of customers. The
geographical segments have been disclosed based on revenues within
India (sales to customers in India) and revenues outside India (sales
to customers located outside India)
9. Earnings per share
Basic and diluted earnings per share are calculated by dividing the net
profit for the year attributable to equity shareholders by the weighted
average number of equity shares. The Company does not have any
outstanding dilutive potential equity shares. Consequently the basic
and diluted earnings per share remain the same.
10. Excise duty
The company is a 100% EOU and as per prevailing laws& guidelines it is
exempted from customs & excise duties & levies. The company is however
required to pay custom duty which is in the nature of excise duty
payable at concessional rates on domestic sales.During the year, the
company has made domesic sales of Rs 4,50,47,521/- (excluding duty) on
which excise duty of Rs.21,64,211/- has been paid to excise Department.
11. The product manufactured by the company do not have warranty period,
hence provision for warranty as specified in AS-29 on provision,
contingent liabilities and contingent assets is not required to be
made.
12. Previous years figures have been regrouped and/or rearranged
wherever considered necessary to make their classification comparable
with that of the current year.
Mar 31, 2009
1 Contingent liabilities not provided for:
As at 31.3.2009 As at 31.3.2008
(a) Letter of credit outstanding 47,198,856 34,278,739
(b) Bank Guarantees 4,371,393 31,72,500
(c) Corporate Guarantees 52,198,000 58,198,000
(d) Bills discounted 37,327,246 35,381,173
(e) Disputed Demand in respect of:
- Income Tax 3,396,154 4,414,507
- Central Excise 3,361,887 3,361,887
2 a) The Company bod during the earlier years invested a sum of Euros
127822.92 (Rs. 53,99,488/-) in GKB Ophthalmics GmbH, in Germany.
During the financial year 2004-05, GmbH had refunded Euros 60,000/- at
cost in partial disinvestment of capital reserves i.e. export of lenses
converted into equity. During the financial year 2006-07, GmbH has
further refunded 24,258/- Euros at cost in partial disinvestment of
Capital reserve. As on the year end, the Company holds an investment of
Euros 25,624.92 (Rs. 10,81,488/-) in GmbH.
b) The GmbH has informed the Company that although it holds the entire
capital of the GmbH there is no Subsidiary - Holding Company"
relationship between the two Companies as per the German Law, The
latest financial statement received from the GmbH is for the year ended
31,12.2008 and GmbH has incurred a loss in Euro 691,20compared to the
Loss of Euros 526,23 in the previous year ended on 31.12.2007 The
financial statement of the company and GKB Ophthalmia GmbH, a company
incorporated in Germany has therefore not been consolidated due to
absence of subsidiary holding relationship.
c) The GmbH has also intimated to the Company that it holds in the GmbH
only one share for the entire investment. No share Certificate has
however been i.ssued to the company, since as per the German Law no
such certificate is required to be issued to the shareholder.
3 a) The Company had during the earlier year invested a sum of DHS
150,000/- (Rs. 1,830,150/-) in GKB Ophthalmic Products FZE in SAIF
Zone, Sharjah,U.A.E.The GKB Ophthalmic Products FZE ("the FZE") in the
Sharjah Airport International Free Zone, Sharjah as a Free Zone
Establishment with limited Liability.
b) The FZE has informed the Company that although it holds the entire
capital of the FZE there is no "Subsidiary - Holding Company
relationship between the two Companies as per the U.A.E. law The
enetrprise is licensed to import, export and Distribution of Optical
Products. The latest financial statement received from the FZE is for
the year ended 31.12.2008 and the FZE has earned a profit of DHS
2,894,222/- as compared to the profits of DHS 2,072,853/- previous
period ended 31.12.2007. The financial statement of the Company and GKB
Ophthalmics Products FZE, an establishment incorporated in U.A.E have
therefore not been consolidated due to absence of subsidiary holding
relationship.
c) The FZE has also intimated to the Company that it holds in the
Establishment only one share of DHS. 150,000/- for the entire
investment, 3 After the end of the year, the Company has sent Balance
Confirmation letters to the parties showing debit/credit outstanding
balances as on 31 st March, 2009. Some of the parties have confirmed
their balances. Necessary adjustments, if any shall be made in the
accounts on the settlements of the outstanding balances of the other
remaining parties, Unclaimed Dividend: There is no amount due to be
credited to investors Education & Protection fund
4. Payment of Cess
The Company has not made any provision for the Cess under provision of
section 441A of the Companys Act, 1956 in the absence of notification
regarding rate and manner of remittance.
5 Disclosure of related parties/related party transactions :
The Company has identified all related parties and details of
transactions are given below. No provision for doubtful debts or
advances is made. Also no amounts have been written off or written back
during the year in respect of debts due from related parties.
i) List of Related parties: Associate Companies/firms/parties
1. Prime Lenses Pvt. Ltd 5. GKB Rx Lens Pvt. ltd. 9. Prime Ophthalmic
Products Pvt. Ltd.
2. GKB Vision Limited. 6. Mega motion infotech Pvt.
Ltd. 10. Indo Prime Visual
Technologies Pvt. Ltd.
3. GKB Opticals Limited. 7. GKB Ophthalmics
Products FZE 11. Crysta lenses Pvt. Ltd.
4. Gopo) Krishna & Brothers. 8. GKB Ophthalmics GmbH
Key Management Personnel
1. Mr, K. G. Gupta - Chairman & Managing Director
2. Mr. Vilcram Gupta - Wholetime Director (upto 31st March, 2008)
Relatives of
1. Mrs. Veena Gupta 5. Mr. R. K. Gupta 9. Mrs. Usha Gupta
Key Management 2. Mr. Gaurav Gupta 6. Mr, B. K. Gupta
10. Mrs, Sushma Gupta
Personnel. 3. Mrs, Shefali Chawla 7. Mrs. Uma Gupta 11. Mr, N. K.
Gupta
4, Mr. Vipul Chawla 8, Mr. K, M, Gupta 12, Dr. G. N, Agrawal
NOTE : Related party relationship is as identified by the Company and
relied upon by the Auditors,
6. Segment Information:
i) Primary Segments: Business Segment
The Company is primarily engaged in a single segment business of a
manufacture and sale of Ophthalmic lenses and that is the only primary
reportable segment. The Companys operations are solely situated in
India.
7 Earnings per share
Basic and diluted earnings per share are calculated by dividing the net
profit for the year attributable to equity shareholders by the weighted
average number of equity shares. The Company does not have any
outstanding dilutive potential equity shares. Consequently the basic
and diluted earnings per share remain the same.
8 Excise duty
The company is a 100% EOU and as per prevailing laws & guidelines it is
exempted from customs & excise duties & levies. The company is however
required to pay custom doty which is in the nature of excise duty
payable at concessional rates on domestic sales.During the year, the
company has made domesic sales of Rs 7,47,00,136/- {excluding duty) on
which excise duty of Rs.39,31,343/- has been paid to excise Department.
9 The product manufactured by the company do not have warranty period,
hence provision for warranty as specified in AS-29 on provision,
contingent liabilities and contingent assets is not required to be
made.
10 Previous years figures have been regrouped and/or rearranged
wherever considered necessary to mate their classification comparable
with that of the current year.
Mar 31, 2008
1 Contingent liabilities not
provided for: As at 31.3.2008 As at 31.3.2007
(a) Letter of credit outstanding 34,278,739 49,850,187
(b) Bank Guarantees 31,72,500 3,089,500
(c) Corporate Guarantees 58198,000 52,198,000
(d) Bills discounted 35,381,173 35,881,173
(e) Disputed Demand in respect of:
- Income Tax 4,414,507 411,865
- Central Excise 3,361,887 3,361,887
2 a) The Company had during the earlier years invested a sum of Euros
127,822.92 ( Rs. 53,99,488/-) in GKB Ophthalmics GmbH, in Germany.
During the financial year 2004-05, GmbH had refunded Euros 60,000/- at
cost in partial disinvestment of capital reserves i.e. export of lenses
converted into equity. During the financial year 2006-07, GmBH has
further refunded 24,258 Euros at cost in partial disinvestment of
Capital reserve. As on the year end, the Company holds an investment of
Euros 25,624.92 (Rs. 10,81,488/-) in GmbH.
b) The GmbH has informed the Company that although it holds the entire
capital of the GmbH there is no Subsidiary - Holding Company
relationship between the two Companies as per the German Law. The
latest financial statement received from the GmbH is for the year ended
31.1 2.2007 and GmbH has incurred a loss in Euro 526.23 compared to the
Loss of Euros 806.54 in the previous year ended on 31.1 2.2006. The
financial statement of the company and GKB Ophthalmics GmbH, a company
incorporated in Germany has therefore not been consolidated due to
absence of subsidiary holding relationship.
c) The GmbH has also intimated to the Company that it holds in the GmbH
only one share for the entire investment. No share Certificate has
however been issued to the company, since as per the German Law no such
certificate is required to be issued to the shareholder.
3 a) The Company had during the earlier year invested a sum of DHS
150,000/- (Rs. l,830,150/-) in GKB Ophthalmic Products FZE in Saif
Zone, Sharjah, U.A.E. The GKB Ophthalmic Products FZE ("the FZE") was
incorporated on 29.02.2004 in the Sharjah Airport International Free
Zone, Sharjah as a Free Zone Establishment with limited Liability.
b) The FZE has informed the Company that although it holds the entire
capital of the FZE there is no Subsidiary - Holding Company
relationship between the two Companies as per the U.A.E Law. The
enterprise is licensed to import, export and Distribution of Optical
Products. The latest financial statement received from the FZE is for
the year ended 31.12.2007 and the FZE has earned a profit of DHS
2,072,853 /- as compared to the profits of DHS 1,059,744/- previous
period ended 31.12.2006. The financial statement of the company and GKB
Ophthalmics Products FZE, an establishment incorporated in U.A.E have
therefore not been consolidated due to absence of subsidiary holding
relationship.
c) The FZE has also intimated to the Company that it holds in the
Establishment only one share of DHS. 150,000/- for the entire
investment.
4 After the end of the year, the Company has sent Balance Confirmation
letters to the parties showing debit/credit outstanding balances as on
31st March, 2008. Some of the parties have confirmed their balances.
Necessary adjustments, if any shall be made in the accounts on the
settlements of the outstanding balances of the other remaining parties.
5 Unclaimed Dividend: There is no amount due to be credited to
Investors Education & Protection fund
6. Payment of Cess
The Company has not made any provision for the Cess under provision of
section 441A of the Companys Act, 1956 in the absence of notification
regarding rate and manner of remittance.
7. In the absence of any intimation received from Venders regarding
the status of their registration under micro , small and medium
Enterprise Development Act 2006, The company is unable to comply with
the disclosures required to be made under the said Act.
8 Disclosure in respect of Impairment of Assets pursuant to Accounting
Standard - 28:
As per exercise carried out by the company as on 31.03.2008 there were
no indication of impairment of any assets hence, in the opinion of the
management no provision for impairment loss as per AS 28 on "Impairment
of Assets" is required to be made.
9 Excise duty
The company is a 100% EOU and as per prevailing laws & guidelines it is
exempted from customs & excise duties & levies. The company is however
required to pay custom duty which is in the nature of excise duty
payable at concessional rates on domestic sales. During the year, the
company has made domestic sales of Rs 2,10,75,128/- (excluding duty) on
which excise duty of Rs.5,39,210/- has been paid to excise Department.
10 The product manufactured by the company do not have warranty period,
hence provision for warranty as specified in AS-29 on provision,
contingent liabilities and contingent assets is not required to be
made.
11 Previous years figures have been regrouped and/or rearranged
wherever considered necessary to make their classification comparable
with that of the current year.
Mar 31, 2007
1 Contingent liabilities not provided for:
As at 31.3.2007 As at 31.3.2006
(a) Letter of credit outstanding 49,850,187 24,430,720
(b) Bank Guarantees 3,089,500 3,089,000
(c) Corporate Guarantees 52,198,000 52,850,000
(d) Bills discounted 43,857,862 41,404,068
(e) Disputed Demand in respect of:
- Income Tax 411,865 448,691
- Central Excise 3,361,887 1,717,200
2 a) The Company had during the earlier years invested a sum of Euros
127,822.92 ( Rs. 53,99,488/-) in GKB Ophthalmics GmbH, in Germany.
During the financial year 2004-05, GmbH had refunded Euros 60,000/- at
cost in partial disinvestment of capital reserves i.e. export of lenses
converted into equity. During the financial year 2006-07, GHBH has
further refunded 24,258 Euros at cost in partial disinvestment of
Capital reserve. As on the year end, the Company holds an investment of
Euros 25,624.92 (Rs. 10,81,490/-) in GmbH.
b) The GmbH has informed the Company that although it holds the entire
capital of the GmbH there is no "Subsidiary - Holding Company"
relationship between the two Companies as per the German Law. The
latest financial statement received from the GmbH is for the year ended
31.12.2006 and GmbH has earned a loss in Euro 806.54 compared to the
Profit of Euros 1 951 8.37 in the previous year ended on 31.12.2005.
The financial statement of the company and GKB Ophthalmics GmbH, a
company incorporated in Germany has therefore not been consolidated due
to absence of subsidiary holding relationship.
c) The GmbH has also intimated to the Company that it holds in the GmbH
only one share for the entire investment. No share Certificate has
however been issued to the company, since as per the German Law on such
certificate is required to be issued to the shareholder.
3 a) The Company had during the earlier year invested a sum of DHS
150,000/- (Rs. l,830,150/-) in GKB Ophthalmic Products FZE in Saif
Zone, Sharjah, U.A.E. The GKB Ophthalmic Products FZE ("the FZE") was
incorporated on 29.02.2004 in the Sharjah Airport International Free
Zone, Sharjah as a Free Zone Establishment with limited Liability.
b) The FZE has informed the Company that although it holds the entire
capital of the FZE there is no "Subsidiary - Holding Company"
relationship between the two Companies as per the U.A.E Law The
enterprise is licensed to import, export and Distribution of Optical
Products. The latest financial statement received from the FZE is for
the year ended 31.12.2006 and the FZE has earned a profit of DHS
10,59,744 /- as compared to the profits of DHS 5,40,449/- previous
period ended 31.12.2005. The financial statement of the company and GKB
Ophthalmics Products FZE, an establishment incorporated in U.A.E have
therefore not been consolidated due to absence of subsidiary holding
relationship.
c) The FZE has also intimated to the Company that it holds in the
Establishment only one share of DHS. 1 50,000/- for the entire
investment.
4 After the end of the year, the Company has sent Balance Confirmation
letters to the parties showing debit/credit outstanding balances as on
31st March, 2007. Some of the parties have confirmed their balances.
Necessary adjustments, if any shall be made in the accounts on the
settlements of the outstanding balances of the other remaining parties.
5 Sundry Creditors shown under Current Liabilities (Schedule G)
include Rs.50,583/- due to Shreeniwas Signange Spectrum Rs 3287/- &
Gorson Enterprise Rs 47,296/- a SSI unit. But this amount is not due
for more than 30 days on the Balance Sheet date. The above information
regarding the SSI undertakings has been determined to the extentsuch
parties have been identified on the basis of information available with
the Company. This has been relied upon by the Auditors.
6. Unclaimed Dividend: There is no amount due to be credited to
Investors Education & Protection fund
7. Payment of Cess
The Company has not made any provision for the Cess under provision of
section 441A of the Companys Act, 1 956 in the absence of notification
regarding rate and manner of remittance.
8 In the absence of any intimation received from Venders regarding the
status of their registration under micro , small and medium Enterprise
Development Act 2006,The company is unable to comply with the
disclosures required to be made under the said Act.
9 Segment Information:
i) Primary Segments: Business Segment
The Company is primarily engaged in a single segment business of a
manufacture and sale of Ophthalmias lenses and that is the only primary
reportable segment. The Companys operations are solely situated in
India.
ii) Secondary Segments: Geographical Segment
Both the units of the Company are 1 00% Export Oriented Units. The
secondary segmental reporting is based on the geographical location of
customers. The geographical segments have been disclosed based on
revenues within India ( sales to customers in India) and revenues
outside India (sales to customers located outside India )
10 Leases:
The Company had prior to 31.03.2001 taken under financial lease, plant
& machinery having an aggregate cost of Rs.21,18,542/-.The Company has
paid lease rentals of Rs. NIL (31.03.2006 Rs.3,64,446/-) and the future
obligation of lease rentals amounts to Rs. Nil. (31.3.2006 : Rs. NIL )
The Company has not acquired any asset on lease after 31.03.2001
11 Disclosure in respect of Impairment of Assets pursuant to Accounting
Standard - 28:
As per exercise carried out by the company as on 31.03.2007 there were
no indication of impairment of any assets hence, in the opinion of the
management no provision for impairment loss as per AS 28 on "Impairment
of Assets" is required to be made.
12 Excise duty
The company is a 100% EOU and as per prevailing laws & guidelines it is
exempted from customs & excise duties & levies. The company is however
required to pay custom duty which is in the nature of excise duty
payable at concessional rates on domestic sales. During the year, the
company has made domesic sales of Rs 98,74,707/- (excluding duty) on
which excise duty of Rs.3,1 5,502/- has been paid to excise Department.
13 The Company until last year followed the policy of making provision
for leave encashment benefit on retirment on estimated basis. However
the provision made for the above benefits during the current year is
based on the total laibiIity as determined by independent acturial
valuer as at the yea rend. Had the policy adopted in the earlier year
continued during the year, the profit for the year would have been
higher by Rs.3,09,604/-
14 The Products Manufactured by the company do not have warranty
period, hence provision for warranty as specified in AS-29 on
provision, contingent liabilities & contingent assets is not required
to be made.
15 Previous years figures have been regrouped and 7 or rearranged
wherever considered necessary to make their classification comparable
with that of the current year.
Mar 31, 2005
1. Contingent liabilities not provided for:
a) Letter of credit issued by the Companys Bankers on behalf of the
Company outstanding as on 31.03.2005: Rs 4,40,87,653/- (Previous year:
Rs. 4,56,87,397/-)
b) Bank Guarantees issued by the Bank on behalf of the Company : Rs.
30,89,500/- (Previous year : Rs. 50,09,500/-)
c) Corporate Guarantees issued by the Company to associate companies
Rs. 6,50,00,000/- (Previous Year Rs. Nil).
d) Bills discounted with the Companys Bankers: Rs. 5,13,51,923/-
(Previous year: Rs 2,62,48,115/-)
e) Disputed demand in respect of Income Tax : Rs. 36,826/- (Previous
year: Rs. 36,826/-)
3. Advances recoverable in cash or in kind or for the value to be
received include:
i) Amount recoverable from a Director of the Company : NIL (Previous
year: Rs.: 54000/-) Maximum amount due at anytime during the year: Rs.
54,000/- (Previous year: Rs, 54,000/-)
ii) Amount due from Prime Lenses Pvt. Ltd. (Formerly GKB Marketing
Services Pvt. Ltd.), a company in which two Directors of the Company
are Directors ; Rs, 23,393/- (Previous year : 11,55,623/-) Maximum
amount due at anytime during the year: Rs, 11,79,016/- (Previous year:
Rs. 17,22,664/-)
iii) Amount due from Prime Ophthalmics Products Pvt, Ltd.. a company
under the same management ; Rs. 653,135/- (Previous year : 15,91,314/-)
Maximum amount due at any time during the year: Rs.4,934,327/-
(Previous year: Rs. 52,52,280/-)
iv) Amount due from GKB Ophthalmics Products FZE an establishment under
the same management Rs. 998,884/- (Previous year ; 884781/-) Maximum
amount due at any time during the year Rs. 998,884/- (Previous year :
884,781/-)
4. Sundry Debtors includes :
i) Amount due from Prime Lenses Pvt. Ltd. (Formerly GKB Marketing
Services Pvt. Ltd.),, a Company in which two Directors of the Company
are Directors : Rs. 25,137/- (Previous year: Rs. 25,85,721/-) Maximum
amount due at any time during the year: Rs 25,85,721/- (Previous
year: Rs. 25,85,721/-),
ii) Amount due from M/s. GKB Rx Lens Pvt. Ltd., in which a director of
the Company is a director: Rs. NIL (Previous year: Rs.11,700/-).
Maximum amount due at any time during the year : NIL (Previous year :
Rs. 11,700/-)
iii) Amount due from GKB Vision Ltd., a Company in which directors of
the Company are directors: Rs. NIL (Previous year: Rs. 8,20,050/-)
Maximum amount due at any time during the year: Rs 8,20,050/- (Previous
year: Rs. 1,35,75,871/-)
5. After the end of the year, the Company has sent Balance
Confirmation letters to the parties showing debit/credit outstanding
balances as on 31st March, 2005, Some of the parries have confirmed the
balances. Necessary adjustments, if any shall be made in the accounts
on the settlements of the outstanding balances of the other remaining
parties.
6. Sundry Creditors shown under `Current Liabilities (Schedule `G
) include Rs. 58,326/- due to SSI units, Listed below are the SSI units
to whom the company owes amounts outstanding for more than 30 days as
at the Balance Sheet date :
1. Hindustan Micron Abbrassives
2. Enarai Computer Stationery
3. Prakash Colour Cartons
4. Esdee Paints Ltd.
The above information regarding the SSI undertakings has been
determined to the extent such parties hove been identified on the basis
of information available with the Company, This has been relied upon by
the
Auditors,
7. The Company had during the earlier years invested a sum of Euros
127,822.92 (Rs, 53,99,488/-) in GKB Ophthalmics GmbH, in Germany. The
GmbH has informed the Company that although it holds the entire capital
of the GmbH there is no "Subsidiary-Holding Company" relationship
between the two Companies as per the German Low. The latest financial
statement received from the GmbH is for the year ended 31,12,2004 and
GmbH has earned a profit of Euro 29,662.24 compared to Profit of Euros
1,64,662.81 in the previous period ended on 31.12.2003,
During the year GmbH had refunded a total sum of Euros 60,000/- at cost
in partial divestment of Capital Reserves. i.e Exports of lenses
converted into equity. Exchange difference on this transaction has been
accounted in Exchange Difference Account.
The GmbH has also intimated to the Company that it holds in the GmbH
only one share for the entire investment. No Share Certificate has
however been issued to the Company, since as per the German Law no such
certificate is required to be issued to the shareholder.
The financial statement of the company and GKB Ophthalmics GmbH, a
company incorporated in Germany have however not been consolidated due
to absence of subsidiary holding relationship.
8. The Company had during the previous year invested a sum of DHS.
1,50,000/- (Rs. 18,30,150/-) in GKB Ophthalmics Products FZE in
SaifZone, Sharjah, U.A.E. The GKB Ophthalmic products FZE (the
enterprise) was incorporated on 29-02-2004 in Sharjah Airport
International Free Zone, Sharjah as a Free Zone Establishment with
limited liability. The FZE has informed the Company that although it
holds the entire capital of the FZE there is no "Subsidiary-Holding
Company" relationship between the two Companies as per the U.A.E. Laws,
The enterprise is licensed to import export and Distribution of Optical
Products, The latest financial statement received from the FZE is for
the year ended 31.12.2004. As per the statement FZE has earned a profit
of DHS. 35042/-,
The FZE has also intimated to the Company that it holds in the
establishment only one share of DHS.150000/- for the entire investment.
The financial statement of the company and GKB Ophthalmics Products
FZE, an establishment incorporated in U.A.E have however not been
consolidated due to absence of subsidiary holding relationship.
9. The interest of Rs. 27,10,881/- charged to the Profit & Loss
account is net of the interest earned on following:
2004-2005 2003-2004
*
1) On Deposits, Loans & Others :
(Gross) (Tax deducted at source : 9,73,346/- 5,11,020/-
Rs. 1,27,864/-
Previous year: Rs. 1,00,421/-)
10. The customs clearance charges and traveling expenses charged to
Profit & Loss account include Rs. 1,68,000/- (Previous Year Rs Nil)
which are not supported by any evidence for having incurred the said
expenses, The management has relied on the declarations given by the
employees who have incurred these expenses.
11. Prior period adjustment (Net) comprises the following :
2004-2005 2003-2004
Rs. Rs.
i) Stores & Spares 16,954 Nil
ii) Provident Fund NIL 1,08,073
iii) Plant Repairs NIL 98,786
iv) Security Expenses 26,809 6,702
v) Freight & Cartage NIL 35,101
vi) Auditors Remuneration 2,040 9,700
vii) Bonus Paid NIL 14
viii) Miscellaneous Expenses 905 NIL
ix) ESI 7,178 NIL
x) Sales Tax 7,036 NIL
xi) Depreciation/Amortisation 90,900 NIL
1,51,822 2,58,376
12. Sales of goods shown in the Accounts are net of returns relating to
earlier years aggregating to Rs. 8,50,035/- (Previous Year Rs.
3,38,103/-)
13. As per the requirement of the standard for accounting for
retirement benefits in the financial statement of employers (AS-15)
issued by the Institute of Chartered Accountants of India, the
provision for leave encashment has to be made for the accrued future
liability determined on actuarial basis. However in accordance with the
past practice followed by the company, the provision for leave
encashment benefits on retirement is made on estimated basis.
16. Deferred Tax,
2004-2005 2003-2004
Deferred Tax Liability on account of:
Depreciation 1,34,44,336 1,42,48,942
Deferred Tax Asset on account of:
Expenditure disallowed under
Income Tax Act 2,72,574 -
Directors Gratuity &
Leave Encashment 6,55,276 (78,914)
Net Deferred tax liability 1,25,16486 1,41,70,028
17. Leases:
The Company had prior to 31.03.2001 taken under financial lease, plant
& machinery having an aggregate cost of Rs. 21,18,542/- (31.3.2004 :
Rs. 21,18,542). The Company has paid lease rentals of Rs. 6,37,377/-
(31.3,2004; Rs. 6,55,782/-) and the future obligation of lease rentals
amounts to Rs. 5,06,166/- (31.3.2004 : Rs, 10,01,823/-). The Company
has not acquired any asset on lease after 31.03.2001
Lease rentals payable at the Balance Sheet date are as under:
2004-05 2003-04
For a period not later than one year 5,06,166/- 7,42,497/-
For a period later than one year
but not later than five years NIL 2,59,326/-
For a period later than five years NIL NIL
5,06,166/- 10,01,823/-
19. Unclaimed Dividend :
There is no amount due to be credited to Investors Education &
Protection fund.
20. Payment of Cess :
The Company has not made any provision for the Cess under provision of
section 441 A of the Companys Act 1956 in the absence of notification
regarding rate and manner of remittance.
21. Earnings per share :
Basic and diluted earnings per share are calculated by dividing the net
profit for the year attributable to equity shareholders by the weighted
average number of equity shares. The Company does not have any
outstanding dilutive potential equity shares. Consequently the basic
and diluted earnings per share remain the same,
2004-05 2003-04
Net Profit attributable to shareholders (Rs.): 1,48,61,012 1,32,21,495
Weighted average numbers of equity shares : 41,53,580 41,53,580
Basic earnings per share of Rs. 10/- each (Rs.) : 3.58 3.18
22. Auditors Remuneration (including Service Tax)
2004-05 2003-04
(a) as auditor -
(i) statutory audit 1,00,000 90,000
(ii) tax audit 25,000 20,000
(b) certification charges 44,010 72,620
(c) reimbursement of expenses 4,500 4,000
1,73,510 186,620
24. The Company has been advised that the computation of net profit for
the purpose of Directors remuneration under section 349 of Companies
Act, 1956 need not be enumerated since no commission by way of
percentage of profits is payable for the year to any of the Directors
of the Company.
25. Disclosure as required by AS-28 (Impairment of assets)
In terms of accounting Standard 28 (AS-28) there was no impairment Loss
on Assets as on 01.04.2004 and also during year under report.
27. Previous years figures have been regrouped and/or rearranged,
wherever considered necessary to make their classification comparable
with that of the Current year.
Mar 31, 2003
Out of the above shares, 2744982 shares ore allotted as fully paid up
Bonus shares by way of capitalisation of General Reserve and premium on
Equity shares.
1. Contingent liabilities not provided for:
a) Letter of credit issued by the Company's Bankers on behalf of the
Company outstanding as on 31,03.2003 : Rs. 396,23,891 (Previous year;
Rs. 207,77,586)
b) Bank Guarantees issued by the Bank on behalf of the Company : Rs.
44,39,000 (Previous year: Rs. 42,89,000)
c) Bills discounted with the Company's Bankers: Rs, 171,75,459
(Previous year: Rs 91,90,578)
d) Disputed demand in respect of Income Tax : Rs. 36,826 (Previous
year: Rs. NIL)
2. Advances recoverable in cash or in kind or for the value to be
received include:
i) Amount recoverable from a Director of the Company: Rs. 50,000
(Previous year: Rs. 50,000) Maximum amount due at anytime during the
year: Rs. 50,000 (Previous year: Rs. 50,000)
ii) Amount due from M/s. GKB Rx Lens Pvt. Ltd., in which a Director of
the Company is a Director.: NIL (Previous year: Rs, 5,00,000). Maximum
amount due at anytime during the year: Rs. 5,00,000 (Previous year :
Rs. 5,00,000)
iii) Amount due from M/s. GKB Vision Ltd., a Company under the same
management: Rs. : NIL (Previous year: Rs. NIL) Maximum amount due at
anytime during the year: Rs. NIL (Previous year: Rs. 11,87,965)
iv) Amount due from GKB Marketing Services Pvt.Ltd., a company under
the same management: Rs. 9,97,705 (Previous year: Rs. 9,86,836).
Maximum amount due at anytime during the year: Rs. 9,97,705 (Previous
year : Rs. 9,86,836)
v) Amount due from Mega Motion infotech Pvt. Ltd. in which two
directors of the company are directors : Rs. 7,24,959 (Previous year:
Rs. 2,24,959). Maximum Amount due at any time during the year: Rs.
7,24,959 (Previous year: Rs. 2,24,959)
3. Sundry Debtors include :
i) Amount due from GKB Marketing Services Pvt. Ltd., a Company under
the same management: Rs.1,99,162 (Previous year: Rs.17,82,964) Maximum
amount due at any time during the year: Rs.28.38.819 (Previous year :
Rs.37,66,795)
ii) Amount due from GKB Ophthalmics GmbH, Bremen - Germany : Rs.
40,01,885 (Previous year: Rs. 77,72,728)' Maximum amount due at any
time during the year: Rs. 77,72,728 (Previous year: Rs. 1,12,19,376)
iii) Amount due from M/s. GKB Rx Lens Pvt. Ltd., in which a director of
the Company is a director: Rs. 1,01,126 (Previous year: Rs. NIL),
Maximum amount due at any time during the year: 1,01,126 (Previous
year: Rs, NIL).
4. Balances of Sundry Debtors and Creditors shown in the account are
subject to confirmation by the parties concerned.
5. The Company had invested during the earlier years a sum of DM
2,50,000/- (Rs, 53,99,488) in GKB Ophthalmics GmbH (GmbH), a Company
incorporated in Germany. The GmbH has informed the Company that
although it holds the entire capital of the GmbH there is no
"Subsidiary- Holding Company" relationship between the two Companies as
per the German Law. According to the latest financial statement
received, the GmbH had incurred a loss of DM 1,50,184.65 in the
accounting year ended 31,12.2001 as compared to a loss of DM 5,457.35
in the previous year ended31.12.00.
The GmbH has also intimated to the Company that it holds in the GmbH
only one share for the entire investment. No Share Certificate has-
however been issued to the Company, since as per the German Law no such
certificate is required to be Issued to the shareholder.
The financial statement of the company and GKB Ophthalmics GmbH, a
company incorporated in Germany have however not been consolidated due
to absence of subsidiary holding relationship.
6. The interest charged to the Profit & Loss account is net of the
interest earned on following :
2002-2003 2001-2002
On Deposits & Others: (Gross) (Tax deducted at
source : Rs. 91,923 (Previous year: Rs. 93,568)) 5,27,822 4,31,997
7. The Company is not able to disclose the names of the small scale
industrial undertakings to whom it owes sums outstanding for more than
30 days, on account of non-availability of sufficient information from
the suppliers regarding their status under the " Industries
(Development and Regulation) Act, 1951".
9. Prior period adjustment account represents: 2002-2003 2001-2002
Rs. Rs.
(i) Credits relating to earlier years 2,832 NIL
(ii) Debits relating to earlier years (2,82,691) (3,62,667)
(2,79,859) (3,62,667)
10. Sales of goods shown in the Accounts are net of returns relating to
earlier years aggregating to Rs. 45,13,868 (Previous Year Rs.
41,90,026).
11. Related Party Disclosures: The Company has identified all related
parties and details of transactions are given below. No provision for
doubtful debts or advances is made. Also no amounts have been written
off or written back during the year in respect of debts dues from
related parties.
(b) Names of related parties and description of relationship, having
transactions during the year.
1. Associate Companies/firms :
i) GKB Marketing Services Pvt. Ltd.
ii) GKB Vision Limited.
iii) GKB Opticals Limited.
iv) Gopal Krishna & Brothers.
v) GKB Rx Lens Pvt. Ltd.
vi) Megamotion Intotech Pvt. Ltd.
2. Key Management Personnel :
i) Mr. K. G. Gupta - Chairman & Managing Director
ii) Mr. Vikram Gupta - Wholetime Director.
3. Relatives of Key Management Personnel. :
i) Mrs. Veena Gupta
ii) Mr. Gaurav Gupta
iii) Mrs. Shefali Chawla
iv) Mr. Vipul Chawla
v) Mr. R.K. Gupta
vi) Mrs. Maltila+a Gupta
vii) Mr. B.K. Gup+a
viii) Mrs. Uma Gupta
ix) Mr. K.M. Gupta
x) Mrs. Usha Gupta
xi) Mrs. Sushma Gupta
xii) Mr. N.K. Gupta
xiii) Dr. G.N. Agrawal
xiv) Mrs. Beena Agrawal.
Note : related party relationship is as identified by the Company and
relied upon by the Auditors.
12. Segment Information :
i) Primary Segments : Business Segment
The Company is primarily engaged in a single segment business of a
manufacture and sale of Ophthalmics lenses and that is the only primary
reportable segment.
ii) Secondary Segments : Geographical Segment
The Company is a 100% Export Oriented Unit, The secondary segmental
reporting is based on the geographical location of customers. The
geographical segments have been disclosed based on revenues within
India (sales to customers in India) and revenues outside India (sales
to customers located outside India)
Revenue: In India Outside India Total
(a) Sales 24,43,583 18,45,28,103 18,69,71,686
(b) Others 11,30,345 - 11,30,345
The Company has common Assets for producing goods for Domestic market
and Overseas market Hence separate figures for Assets/additions to
Fixed Assets cannot be furnished.
13. Deferred Tax. : 2002-2003 2001-2002
Deferred Tax Liability On account of:
Depreciation 1,25,88,000 -31,32,000
Deferred Tax Asset on Account of:
Directors Gratuity & Leave Encashment 4,06,000 NIL
Net Deferred tax liability 1,21,82,000 31,32,000
14. Leases: The Company had prior to 31.03.2001 taken under financial
lease, plant & machinery having an aggregate cost of Rs. 21,18,542
(31.3.2002 : Rs. 21,18,542). The Company has paid lease rentals of Rs.
4,39,279 (2001-02: Rs. 2,93,957) and the future obligation of lease
rentals amounts to Rs. 16,80,600 (31.3.2002 : Rs. 20,96,884) . The
Company has not acquired any asset on lease after 31.3.2001.
15. Buildings;
During the year, the company has purchased a shed constructed on
Leasehold Land for a purchase consideration of Rs, 19,77,887/-. The
Deed of Sale executed with the party from whom the shed was purchased
does hot state the cost of shed and Leasehold land separately. The
Company has therefore included the entire consideration in additions
made to the Building disclosed in the Schedule of Fixed Assets and
necessary depreciation is charged on this Building.
16. Assets acquired on Hire Purchase Arrangement:
The Company has acquired assets under Hire Purchase Agreements. The
written down value of such assets in respect of which instalments are
outstanding but not due, is Rs. 15,53,187/- as on 31.03.03,
The total of minimum Hire Installments payable at the Balance Sheet
date Is as under:
For a period not later than one Year Rs. 2,55,343/-
For a period later than one Year but not
later than Five Years Rs. 13,63,693/-
For a period later than Five Years Rs. NIL
17. Unclaimed Dividend :
There is no amount due to be credited to Investors Education &
Protection fund.
18. Payment of Cess:
The Company has not made any provision for the Cess under provision of
section 441 A of the Company's Act 1956 in the absence of notification
regarding rate and manner of remittance.
19. Earnings per share :
Basic and diluted earnings per share are calculated by dividing the net
profit for the year attributable to equity shareholders by the weighted
average number of equity shares. The Company does not have any
outstanding ' dilutive potential equity shares. Consequently the basic
and diluted earnings per share remain the same.
Net Profit attributable to shareholders (Rs.) : 94,84,243
Weighted average numbers of equity shares : 41,53,580
Basic earnings per share of Rs. 10/- each (Rs.) : 2.28
20. Previous years figures have been regrouped and/or rearranged,
wherever considered necessary to make their classification comparable
with that of the Current year.
Mar 31, 2002
1) Contingent liabilities not provided for:
a) Letter of credit issued by the Companys Bankers on behalf of the
Company outstanding as on 31.03.2002: Rs. 2,07,77,586 (Previous year:
Rs. 3,37,70,651)
b) Bank Guarantees issued by the Bank on behalf of the Company: Rs.
42,89,000 (Previous year: Rs. 33,21,000)
c) Bills discounted with the Companys Bankers: Rs. 91,90,578 (Previous
year: Rs. 63,94,538)
d) Penalty levied by Sales Tax Department which is disputed in appeal:
Rs. NIL (Previous year: 10,000)
2) Advances recoverable in cash or in kind or for the value to be
received include:
i) Amount recoverable from an Officer of the Company: Rs. 50,000
(Previous year: Rs. NIL) Maximum amount due at anytime during the year:
Rs. 50,000 (Previous year. Rs. 50,000)
ii) Amount recoverable from a Managing Director : Rs. NIL (Previous
year: NIL). Maximum amount due at anytime during the year: Rs. NIL
(Previous year: Rs. 1,91,794)
iii) Amount due from M/s. GKB Rx Lens Pvt. Ltd., in which a director of
the Company is a director : Rs. 5,00,000 (Previous year: Rs. 5,00,000)
iv) Amount due from M/s. GKB Vision Ltd., a Company under the same
management: Rs. Nil (Previous year : 10,52,248) Maximum amount due at
anytime during the year: Rs. 11,87,965 (Previous year: 10,52,248)
v) Amount due from GKB Marketing Services Pvt. Ltd. , a compa ny under
the same management: Rs. 9,86,836 (Previous year: NIL) maximum amount
due at anytime during the year: 9,86,836/- (Previous year: NIL)
3) Sundry Debtors include:
i) Amount due from GKB Marketing Services Pvt. Ltd., Company under
the same management : Rs. 17,82 964 (Previous year: Rs. 37,66,795)
Maximum amount due at any time during the year: Rs. 37,66,795 (Previous
year. Rs. 56,30,957)
ii) Amount due from GKB Ophthalmics GmbH, Bremen - Germany: Rs.
77,72,728 (Previous year: Rs. 1,12,19,376) Maximum amount due at any
time during the year: Rs 1,12,19,376 (Previous year: Rs. 1,79,65,301)
4) Balance of Sundry Debtors and Creditors shown in the account are
subject to confirmation by the parties concerned.
5) The Company had invested during the earlier years a sum of DM
2,50,000/- (Rs, 53,99,488) in GKB Ophthalmics GmbH (GmbH), a Company
incorporated in Germany. The GmbH has informed the Company that
although it holds the entire capital of the GmbH there is no
"Subsidiary-Holding Company" relationship between the two Companies as
per the German Law. According to the latest financial statement
received, the GmbH had incurred a loss of DM 5,457.35 in the accounting
year ended 31.12.2000 as compared to a profit of DM 11,783.88 in the
previous year ended 31.12.99.
The GmbH has also intimated to the Company that it holds in the GmbH
only one share for the entire investment. No Share Certificate has
however been issued to me Company, since as per the German Law no such
certificate is required to be issued to the shareholder.
The financial statement of the company and GKB Ophthalmics GmbH, a
company incorporated in Germany have however not been consolidated due
to absence of subsidiary holding relationship.
6) Goods having Invoice value of Rs. 38,68,336 have been returned to
the Company by GKB Ophthalmics GmbH offer close of the accounting year
under review. The value of these goods which were sold prior to
01.04.01 has however, not been adjusted the sales made during the year
under review.
7) The interest charged to the Profit & Loss account is net of the
interest earned on following:
2001-2002 2000-2001
1) On Margin Money:
(Gross) [Tax deducted of source :
Rs. 93,568) (Previous year: Rs. 1,20,750)] 4,31,997 5,92,176
8. The Company is not able to disclose the names of the small scale
industrial undertakings to whom it owes sums outstanding for more than
30 days, on account of non-availability of sufficient information from
the suppliers regarding their status under the "Industries
(Developments Regulation) Act, 1951".
9. Donation to a political party : Nil (Previous year: Rs. 10,000/-)
10. Prior Period adjustments account represents:
2001-2002 2000-2001
Rs. Rs.
i) Credits relating to earlier years NIL NIL
ii) Debits relating to earlier years (3,62,667) (8,600)
(3,62,667) (8,600)
11. Previous years figures have been regrouped and/or rearranged,
wherever considered necessary to make their classification comparable
with that of the current year.
12. Segment Information:
i) Primary Business Segments.
The Company is primarily engaged in a single segment business of a
manufacture and sale of Ophthalmics lenses and that is the only primary
reportable segment.
ii) Geographical Segments.
The Company is a 100% Export Oriented Unit. The secondary segmental
reporting is based on the geographical location of customers. The
geographical segments have been disclosed based on revenues within
India (sales to customers in India) and revenues outside lndia(sales to
customers located outside India)
i) Information about Secondary Geographical Segments.
In India Outside India Total
Revenue:
(a) Sales 10,00,00 13,21,67,410 13,31,67,410
(b) Others - 26,681 26,681
Carrying amount of
segments assets. 19,94,93,207 - 19,94,93,207
Additions to fixed assets 58,12,763 - 58,12,763
13. Deferred Taxation : In conformity with Accounting Standard no.22
issued by the Institute of Chartered Accountants of India as
"Accounting for taxes on Income", the Company has provided for deferred
tax during the year. Accordingly, the deferred tax charge for the year,
of Rs. 6,46,000 has been recognized in the Profit & Loss Account and
the cumulative net deferred tax liability up to 31st March, 2001 of Rs.
24,86,000 has been deducted from the General Reserve.
14. Leases : The Company had taken under financial lease, plant &
machinery having an aggregate cost of Rs. 21,18,542(31.3.2001: Rs.
21,18,542). The Company has paid lease rentals of Rs. 2,93,957
(2000-01: Rs. 31,294) and the future obligation of lease rentals
amounts to Rs. 20,96,884(31.3.2001 : Rs. 23,90,841). The Company has
not acquired any asset on lease/hire purchase after 31.3.2001.
15. Earnings per share :
Basic and diluted earnings per share are calculated by dividing the net
profit for the year attributable to equity shareholders by the weighted
average number of equity shares. The Company does not have any
outstanding dilutive potential equity shares. Consequently the basic
and diluted earnings per share remain the same.
Net Profit attributable to shareholders (Rs.) : 1,05,10,508
Weighted average numbers of equity shares : 41,53,580
Basic earnings per share of Rs. 10/-each (Rs.) : 2.53
Mar 31, 2001
SHARE CAPITAL
Out of the above shores 2744982 shares are allotted as fully paid up
Bonus shares by way of capitalization of General Reserves and premium
on Equity shares.
SECURED LOANS
i) Working Capital loan from Bank is secured by Hypothecation of raw
materials, stock in process, finished goods, Stores, Spares, Book
debts and other receivables, both present and future & further secured
by irrevocable joint and several personal guarantees of two Directors
of the Company.
ii) Term Loans from Bank is secured by hypothecation of Machinery and
Personal Guarantees of two Directors of the Company.
iii) Term Loan instalments falling due within the next 12 months amount
to Rs. 15,00,000/- ( Previous year Rs. 31,900/-)
OTHER NOTES
1) Contingent liabilities not provided for:
a) Letter of credit issued by the Company's Bankers on behalf of the
Company outstanding as on 31.03.2001 : Rs. 3,37,70,651 (Previous year:
Rs. 2,35,5 1,439)
b) Bank Guarantees issued by the Bank on behalf of the Company : Rs.
33,21,000 (Previous year: Rs. 15,32,000)
c) Bills discounted with the Company's Bankers : Rs. 63,94,538
(Previous year: Rs. 94,72,523)
d) Penalty levied by Sales Tax Department which is disputed in appeal:
Rs. 10,000 (Previous year: Nil)
2) Advances recoverable in cash or in kind or for the value to be
received include:
i) Amount recoverable from an Officer of the Company: Rs. 50,000
(Previous year: Rs. 50,000) Maximum amount due at anytime during the
year : Rs. 50,000 (Previous year: Rs. 50,000)
ii) Amount recoverable from a Managing Director : Rs. Nil (Previous
year: 1,91,794). Maximum amount due at anytime during the year: Rs.
1,91,794 (Previous year: Rs. 1,91,794)
iii) Amount due from M/s. GKB Rx Lens Pvt. Ltd., In which a director of
the Company is a director : Rs. 5,00,000 (Previous year: Rs. 5,00,000)
iv) Amount due from M/s. GKB Vision Ltd., a Company under the same
management: Rs. 10,52,248 (Previous year:
Nil) Maximum amount due at anytime during the year: Rs. 10,52,248
(Previous year: Nil)
3) Sundry Debtors include :
i) Amount due from GKB Marketing Services Pvt. Ltd., a Company under
the same management: Rs. 37,66,795 (Previous year: Rs. 56,30,957)
Maximum a mount due at any time during the year: Rs. 56,30,957
(Previous year: Rs. 72,88,735)
ii) Amount due from GKB Ophthalmics GmbH, Bremen - Germany : Rs.
1,12,19,376 ( Previous year: Rs. 1,48,49,199) Maximum amount due at any
time during the year : Rs 1,79,65,301 (Previous year :
Rs. 2,01,66,469)
4) Balance of Sundry Debtors and Creditors shown in the account are
subject to confirmation by the parties concerned.
5) The Company had invested during the earlier years a sum of DM
2,50,000/- (Rs, 53,99,488) in GKB Ophthalmics GmbH (GmbH), a Company
incorporated in Germany. The GmbH has informed the Company that
although it holds the entire capital of the GmbH there is no
"Subsidiary-Holding Company" relationship between the two Companies as
per the German Law. The GmbH has incurred a loss of DM 5,457.35 in the
accounting year ended 31.1 2.2000 as against a profit of DM 11,78,338
earned during the previous year ended 31.12.99.
The GmbH has also intimated to the Company that it holds in the GmbH
only one share for the entire investment. No Share Certificate has
however been issued to the Company, since as per the German Law no such
certificate is required to be issued to the shareholder.
6) The Company in the earlier year had constructed a factory building
on land acquired from Industrial Development Corporation of Goa. During
the year under review, the Company has transferred the land along with
building at book value of Rs. 1,00,53,264 to GKB Vision Limited, a new
Company floated by it. Although this new company was a subsidiary of
the Company on the date of transfer, it was not a subsidiary on
31.03.2001.
7) The Company is not able to disclose the amount due to small scale
industrial undertakings & also their dues in excess of Rs. 1.00 Lac and
outstanding for more than 30 days, on account of non-availability of
sufficient information from the suppliers regarding their status under
the "Industries (Development & Regulation) Act, 1951".
8) Donation to political party : Nil (Previous year: Rs. 10,000/-)
9) Previous years figures have been regrouped and/or rearranged,
wherever considered necessary to make their classification comparable
with that of the current year.
Mar 31, 2000
Notes on Secured Loans :
i) Working Capital loan from Bank is secured by Hypothecation of raw
materials, stock in process, finished goods, Stores & Spares, Book
debts and other receivables, both present and future & further secured
by irrevocable joint and several personal guarantees of two Directors
of the Company.
ii) Term Loans from EDC Limited is secured by hypothecation of
Machinery and Personal Guarantees of two Directors of the Company.
iii) Term Loan instalments falling due within the next 12 months amount
to Rs. 31,900/- (Previous year Rs. 33,33,200)-
Other Notes:
1) Contingent liabilities not provided for :
a) Letter of credit issued by the Company's Bankers on behalf of the
Company outstanding as on 31.03.2000 Rs 2,35,51,439 (Previous year :
Rs. 92,34,706)
b) Bank Guarantees issued by the Bank on behalf of the Company : Rs.
15,32,000 (Previous year : Rs. 8,19,000)
c) Bills discounted : Rs. 94,72,523 (Previous year : Rs. 1,25,55,848)
2) Advances recoverable in cash or in kind or for the value to be
received include :
i) Amount recoverable from an Officer of the Company: Rs. 50,000
(Previous year: Rs. 50,000) Maximum amount due at anytime during the
year : Rs. 50,000 (Previous year : Rs. 50,000)
ii) Amount recoverable from a Firm in which a Director is interested as
partner : Nil (Previous year : 74,647)
iii) Amount recoverable from a Managing Director : Rs. 1,91,794
(Previous year : Nil)
3) Sundry Debtors include :
i) Amount due from GKB Marketing Services Pvt. Ltd., a Company under
the same management as defined under section 370(1-B) of the Companies
Act, 1956 : Rs. 56,30,957 (Previous year : Rs. 72,88,735) Maximum
amount due at anytime during the year : Rs. 72,88,735 (Previous year :
Rs. 83,14,058)
ii) Amount due from GKB Ophthalmics GmbH, Bremen - Germany : Rs.
148,49,199 (Previous year : Rs. 1,02,44,954) Maximum amount due at any
time during the year : Rs 201,66,469 (Previous year : Rs. 145,65,742)
4) Balance of Sundry Debtors and Creditors shown n the account are
subject to confirmation by the parties concerned.
5) The Company had invested during the years 1997-98 & 1998-99 a sum of
DM 2,50,000/- (Rs. 53,99,488) in GKB Ophthalmics GmbH (GmbH), a Company
incorporated in Germany. The GmbH has informed the Company that
although it holds the entire capital of the GmbH there is no
"Subsidiary Holding Company" relationship between the two Companies as
per the German Law. The GmbH has incurred a loss of DM 4,216.12 in the
accounting year ended 31.12.99 as against a loss of DM 44,987.46
incurred during the previous year ended 31.12.98.
The GmbH has also intimated to the Company that it holds in the GmbH
only one share for the entire investment. No Share Certificate has
however been issued to the Company, since as per the German Law no such
certificate is required to be issued to the shareholder.
6) No provision for Income Tax has been considered necessary in view of
admissible relief under the Income Tax Act, 1961.
7) The interest charged to the Profit & Loss account is net of the
interest earned on following :
1) On Margin Money : (Gross) (Tax deducted of source : Rs. 87,254)
(Previous year: Rs.81,406)
8. The Company is not able to disclose the amount due to small scale
industrial undertakings & also their dues in excess of Rs. 1.00 Lakh &
outstanding for more than 30 days, on account of non-availability of
sufficient information from the suppliers regarding their status
under the "Industries (Development& Regulation) Act, 1951".
9. Donation : During the year under review, the Company has given a
donation of Rs. 10,000/- to a political party - Bharatiya Janata Party.
10. Prior Period adjustments account represents :
i) Credits relating to earlier years : Rs. 2,25,733
ii) Debits relating to earlier years : Rs. (2,22,000)
Rs. 3,733
11. Previous years figures have been regrouped and/or rearranged,
wherever considered necessary to make their classification comparable
with that of the current year.
Mar 31, 1999
Details cannot be disclosed as information is taken from 1999-2000 Annual Report.
Mar 31, 1997
1) Bank Loan is secured by Hypothecation of raw materials, stock in
process, finished goods. stores and spares, book debts and other receivables, both present and future and further secured by irrevocable
Joint and several personal guarantees of two Directors of the Company.
2) Term Loan from Economic Development Corporation of Goa. Daman & Diu
Limited is secured by Hypothecation of Machinery & Personal guarantees of two Directors of the Company.
3) Term Loan instalment falling due within the next 12 months amounts to Rs. 33.33.200 (Previous year Rs. 33,33,200).
4) Advances recoverable in cash or in kind includes :
i) Rs. 1,07,490 recoverable from a firm in which the Directors are interested as partners (Previous year Rs. 1,07,490)
ii) Rs.49,670 recoverable from a Private Company in which a Director of
the Company is a Director.
iii) Amount recoverable from GKB Marketing Services Pvt. Ltd., a Company under the same management as defined under section 370(1-B) of the Companies Act 1956: Rs. 64,93,481 (Previous year : Rs. 29,38,651). Maximum amount due at anytime during the year : Rs. 66,74,353 (Previous
year Rs. 29,38,651)
iv) Amount recoverable from wholetime Directors : Rs. 99,000 (Previous
year : Nil) Maximum amount due at anytime during the year : Rs. 99.000
(Previous year : Nil)
v) Amount recoverable from an Officer of the Company : Rs. 50,000 (Previous year : Nil) Maximum amount due at anytime during the year : Rs. 50.000 (Previous year : Nil)
5) Balance of Sundry Debtors. Creditors shown in the accounts are subject to confirmation by the parties concerned.
6) The Company has made during the year an estimated provision of Rs. 37,742 in respect of encashment of leave salary in order to comply with
the accounting standard on "Accounting for Retirement Benefits (AS 15)", issued by the Institute of Chartered Accountants of India. Consequently profit for the year is lower to that extent.
7) Income tax liability amounting to Rs. 10,61,918 has been computed in
accordance with the provisions of Section 115 JA of the Income Tax Act,
1961.
8) Of the 41,53,580 Equity Shares
a) 11,03,600 Equity Shares of Rs. 10/- each were allotted at a premium
of Rs. 25/- per share in July, 1996. Barring the shares forfeited on 16.06.97, these shares are entitled to dividend from 1st April, 1996.
b) 2,13,300 shares of Rs. 10/- each (Rs. 5/- paid up) are forfeited on
16.06.97.
c) 27,44,982 shares are allotted as fully paid up Bonus shares capitalizing General Reserves and Premium on ordinary shares.
Mar 31, 1996
1. No provision for income tax has been considered necessary in view of the tax-holiday benefit and export turnover benefits under section 10 B and under section 80 HHC of the Income tax Act 1961 respectively.
2. Secured loan instalments falling due within the next 12 months amount to : 33,33,200:00 (Previous year : NIL)
3. a. Advances recoverable in cash or kind includes
i) Rs.1,07,489.95 recoverable from a firm in which the Directors are
interested as partners (Previous year Rs. 1,18,876.10)
ii) Amount recoverable from GKB Marketing Services Pvt. Ltd., a Company under the same management as defined under section 370 (1-B) of the Companies Act, 1956 : Rs. 29,38,651.00 (Previous year Rs.4,00,000,00) Maximum amount due at anytime during the year - 29,38,651.00 (Previous year Rs. 4,00,000.00)
iii) Amount recoverable from Managing Directors NIL (Previous year :
25,180.00) Maximum amount
b. Amount due from any Officer of the Company at the end of the year
: NIL (Previous year 25,180.00) Maximum amount due at anytime during the year : NIL (Previous year : Rs. 25,180.00)
4. Balance of Sundry Debtors, Creditors shown in the accounts are
subject to confirmation by the parties concerned.
5. In view of Accounting Standard on "Accounting for the effect of the change in foreign exchange rate" (AS 11), issued by the Institute of Chartered Accountants of India being mandatory with effect from 01-04-95, foreign currency transactions are translated as per the
accounting policy referred to in note no.1 (f) above. Consequent to
this change, profit for the year is higher by Rs. 10,686.50.
6. Commission on Sales : No provision for commission on sales payable to agents is made since none of the export sales was made against orders solicited through the agents.
7. Miscellaneous expenses do not include any items of expenditure
exceeding 1% of the total revenue of the Company or Rs. 5,000.00
whichever is higher.
8. Previous years figures hove been regrouped and/or rearranged, wherever considered necessary, to make their classification comparable with that of the Current year.
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