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Moneycontrol.com India | Notes to Account > Food Processing > Notes to Account from Temptation Foods - BSE: 519228, NSE: N.A
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Temptation Foods
BSE: 519228|ISIN: INE244I01019|SECTOR: Food Processing
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Temptation Foods is not traded in the last 30 days
Temptation Foods is not listed on NSE
Mar 08
Notes to Accounts Year End : Mar '10
1.  Contingent Liabilities
 
 a) Claims against the Company not acknowledged as debts: Rs.
    1,073,042/-(Previous Year: Rs. 6,851,986/-).
 
 b) Counter guarantees given to a bank on account of guarantees given by
    them to Value Added Tax authorities: Rs. 2,884,453/- (Previous Year 
    Rs. 2,804,500/-).
 
 c) Estimated amount of contracts remaining to be executed on capital
    account and not provided for (net of advances) Rs. 60,000,000/-
    (Previous Year Rs. NIL).
 
 2.  Capital Reserve
 
 Capital Reserve includes Rs. 146,000,000/ (Previous Year Rs. 962,500)
 being the amount of warrant application money forfeited on 7,300,000
 (Previous Year 275,000) warrants in respect of which the warrant holder
 did not exercise their conversion option.
 
 3.  Convertible Warrants
 
 In the previous year, the company had allotted 7,300,000 convertible
 warrants during the year, including 300,000 warrants allotted to the
 Directors of the company, on 11th August, 2008. Each warrant was
 convertible into one equity share of the company, fully paid up, at a
 conversion price of Rs. 200 per share. The option was required to be
 exercised within the stipulated period from the date of allotment. The
 warrant holders had paid 10% of the conversion price at the time of
 allotment, which stands forfeited and credited to the Capital Reserves
 Account, since the options were not exercised within the stipulated
 period.
 
 Certain warrant holders who were allotted 7,300,000 warrants (Previous
 year 900,000 warrants in November, 2006), did not exercise their rights
 to convert the warrants into shares in respect of 7,300,000 outstanding
 warrants (Previous Year 275,000 outstanding warrants), and on the
 expiry of the conversion period, the application money of Rs.
 146,000,000/- (Previous Year Rs. 962,500) paid in respect of the
 outstanding warrants were forfeited to the Company and credited to the
 Capital Reserve Account.
 
 4.  Formalities for updating information relating to increase in
 Authorised Share Capital of the Company on the portal of Ministry of
 Corporate Affairs are in progress.
 
 5.  Revaluation
 
 The company had revalued as at 31st March, 2007, leasehold land,
 building and plant and machinery assets situated at Jejuri plant based
 on the report by an independent chartered valuer.  The valuation
 resulted in net increase in the value of the said assets by Rs.
 81,082,224/- and corresponding increase in revaluation reserve by like
 amount.
 
 During the year, the company carried out a second revaluation as at
 22nd July, 2009 of plant and machineries located at Jejuri and Sonepat
 plants by an independent chartered valuer. The valuation resulted in a
 net increase in the value of the said assets by Rs. 126,871,462/- and
 corresponding increase in revaluation reserve by like amount.
 
 6.  General Reserves:
 
 During the year, Company transferred Rs. 2,613,173/- to General
 Reserves, the amount of Special Capital Incentive Rs. 2,500,000/- and
 Subsidy from Government Rs. 113,173/-, since the said reserves became
 free on fulflling the conditions relating thereto.
 
 7.  Secured Loans:
 
 Pre/Post Shipment Credit Facility and the Working Capital Demand Loan
 are secured by charge on the current assets of the company, both
 present and future, charge on the immovable and movable assets, present
 and future, and Corporate Guarantee by the Promoter Company (Venture
 Business Advisors Pvt. Ltd.).
 
 Working Capital Loan from Punjab National Bank is secured by first pari
 passu charge on current assets, present and future, charge on all
 movable fixed assets both present and future and Corporate Guarantee
 given by the Promoter.
 
 Cash Credit facility from United Bank of India is secured by first
 charge on current assets, both present and future, charge on plant &
 machineries, both present and future and Corporate Guarantee given by
 the Promoter.
 
 Overdraft facility from Yes Bank is secured by hypothecation of the
 Fixed Deposit Receipt.
 
 Factoring Facility with SBI Global Factors Ltd. is secured by charge on
 fixed Assets, receivables, charge on immovable properties, pledge of
 the shares of the Company held by the Promoter and Corporate Guarantee
 given by the Promoter.
 
 Margin Funding Facilities are secured by the pledge of the shares of
 the company which have been acquired by utilising the facilities and,
 in certain cases, by the pledge of the shares of the Company held by
 the Promoter.
 
 Vehicle loans from Tata Capital Ltd. and Reliance Capital Ltd.  are
 secured by hypothecation of the specific vehicles.
 
 8. Segment Reporting:
 
 The disclosure requirement in respect of Accounting Standard 17 on
 Segment Reporting is as under:
 
 a) Primary Segment
 
 The company is a single segment company dealing in fresh and frozen
 foods in accordance with the criteria for identification of reportable
 segment specified in the said standard.
 
 9. Employee Benefits:
 
 The disclosures pursuant to Accounting Standard (AS) 15 (Revised) on
 Employee Benefits are as follows:
 
 a) Defined Contribution Plan
 
 Contribution to Defined Contribution Plan recognised as an expense and
 included in Personnel Cost  Schedule 13 in the Proft and Loss
 Account is as under:
 
 - Employers contribution to Provident Fund and Other Funds Rs.
 1,345,629/- (Previous year: Rs. 1,666,654/-).
 
 c) The company has an Employees Group Gratuity Scheme with the Life
 Insurance Corporation of India (LIC), to fund the defined benefit plan
 for the qualified employees. The Scheme provides for lump sum payment
 to employees on retirement, death while in employment or termination of
 employment of an amount equivalent to 15 days salary for every
 completed year of service or part thereof in excess of six months,
 provided the employee has completed fve years in service.
 
 The said policy has not been renewed by the company. In view of the
 above, LIC has not given the detailed disclosure required under AS-15.
 The disclosure in the notes to accounts is based on the renewal notice
 received from LIC which in the opinion of the company satisfies the
 requirements relating to disclosure of gratuity liability as per AS-15.
 Since in the opinion of the company the opening provision in the books
 is in excess of the accrued gratuity liability at the year end as
 disclosed in the renewal notice of LIC, the difference has been written
 back as income.
 
 10.  Extraordinary Item
 
 The Company incurred loss of Rs. 119,589,019/- during the year
 (Previous Year: 25,191,443/-) on sales of shares of Kohinoor Foods
 Limited, which has been disclosed as an Extraordinary Item.
 
 11.  Related Party Disclosures:
 
 The disclosure requirements in respect of Accounting Standard 18 on
 Related Party Disclosures are as under:
 
 a) Relationships :
 
 i) For the Financial year 2009-10
 
 a) Company under same Management    Venture Business Advisors Pvt. Ltd.
 
                                     Delika Foods Pvt. Ltd.
 
 b) Wholly Owned Subsidiary 
   Company                           Temptation Foods International 
                                     Ltd.,
 
                                     British Virgin Islands
 
 c) Subsidiary Company               Temptation Foods FZE, 
                                     Sharjah, UAE.
 
 d) Key Management Personnel         Mr. Vinit Kumar, CMD
 
 
 
 
 ii) For the Financial year 
    2008-09
 
 a) Company under the same 
    management                       Venture Business Advisors Pvt.
                                     Ltd.
 
 b) Wholly owned Subsidiary Company  Temptation Foods International
 
                                     Limited, British Virgin Islands.
 
 c) Key Management Personnel         Mr.Vinit Kumar, CMD
 
 
 12. Deferred Taxation:
 
 a) In compliance with the Accounting Standard 22 on Accounting for
 Taxes on Income, the Company has recognized deferred tax on timing
 differences; being the difference between taxable income and accounting
 income that originate in one period and are capable of reversal in one
 or more subsequent periods.
 
 13. Impairment of Assets
 
 As required by Accounting Standard 28 on Impairment of Assets, the
 Company has reviewed the potential generation of economic benefts from
 fixed assets and concluded that the fixed assets employed in the
 business will generate adequate economic returns over their useful
 lives. Consequently, no provision for impairment loss is required.
 
 14. Regrouping / Reclassification:
 
 Figures for the previous year have been regrouped / reclassified
 wherever necessary to make them comparable with those of the present
 year.
Source : Dion Global Solutions Limited
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