VINTAGE FOODS & INDUSTRIES LIMITED
ANNUAL REPORT 1999-2000
The Directors of your Company have pleasure in presenting the 17th Annual
Report of the Company along with the Audited Accounts of the Company for
the Financial Year ended 31st December, 2000.
In view of insufficient distributable profits, it has been decided to skip
dividend for the year.
The members may recall that dividend for the year 1999 was approved at the
last AGM subject to approvals of Financial Institutions. Despite best
efforts, the requisite approvals having not been received, your Board has
decided to write back the same.
The turnover during the year was Rs. 276.95 million as compared to Rs.
247.56 million during the previous year. Due to severe financial crunch,
the turn over could not be steppedup and only marginal increase was
The Company's order position in the bulk consumer segment has been very
comfortable. However. there is a need 16 improve on the retail front and
your Company has plans to rejuvenate the retail sales by increasing
advertising and marketing activities in this segment.
Mr. M D Narayan, Director, retires by rotation at the forthcoming Annual
General Meeting and being eligible, offers himself for reappointment.
PARTICULARS OF EMPLOYEES
There are no employees who are drawing remuneration in excess of the limits
prescribed under Section 217(2A) of the Companies Act, 1956.
Due to the consistent labour policies followed by the Company and the
welfare measures initiated, there has been healthy working environment and
harmonious inter-personal relations. The industrial relations were very
peaceful during the year under review.
OTHER STATUTORY DISCLOSURES
Energy conservation continues to be an area of major emphasis in your
Company. The Company has adopted the strategy of bringing about a general
awareness amongst all its personnel regarding energy conservation. waste
reduction and cost savings. The Company has the state-of-the-art machinery
with in-built technology imported from abroad.
FOREIGN EXCHANGE EARNINGS AND OUTGO
Foreign Exchange Earnings Nil
Foreign Exchange Outgo Rs.1,155,026
Messers A Rammohan & Co., Chartered Accountants, Bangalore, Auditors of the
Company retire in the ensuing Annual General Meeting and are eligible for
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors have fulfilled their responsibility for the preparation of
the accompanying financial statements by taking all reasonable steps to
ensure that :
These statements have been prepared in conformity with generally accepted
accounting principles and appropriate accounting standards. Judgements and
estimates that are reasonable and prudent have been made where necessary.
The accounting policies selected and applied consistently give a true and
fair view of the financial statements.
The Company has implemented internal controls to provide reasonable
assurance of the reliability of its financial records, proper safeguarding
and use of its assets arid detection of frauds and irregularities. Such
controls are based on established policies and procedures, and are
implemented by trained, skilled and qualified personnel with an appropriate
segregation of duties.
The Company's statutory auditors, Messrs. A. Rammohan & Co., Chartered
Accountants, have audited the financial statements in accordance with
generally accepted auditing standards and practices as indicated in their
The Directors are satisfied that the Company has adequate resources to
continue its business in the foreseeable future and consequently consider
it appropriate to adopt the Going concern basis in preparing financial
Your Directors furnish the following explanations on the comments of the
Auditors on the books of account of the Company for the year ended 31st
Para No. 2(d) : - The rate of providing depreciation has been changed as
the management is of the opinion that the assets will be better reflected
at their true value.
Para No. 2(e) : - The Inventories are valued at cost in order to arrive at
the true and actual valuation of stock.
Para No. 2(f) : - As and when retirement benefits of the employees actually
become payable, the same will be accounted and therefore no provision has
been made in the books.
Para No. 2(g) : - The Development Expenditure incurred primarily towards
development of a large network of milk farmers, the benefits of which have
commenced accruing to the Company in terms of uninterrupted supply, good
price and quality milk. Considering the concept of this kind of expenditure
which is peculiar to the industry, they have been amortised.
Para 15 of Annexure : - The Company has an Internal Audit Department headed
by Manager Audit. However, steps will be taken to infuse further strength.
The Directors of your Company wish to place on record their sincere thanks
to the Governments of India, Karnataka. Andhra Pradesh and Tamilnadu,
participating Financial Institutions. Bankers. Glanbia Cheese Limited - UK,
Farmers. Business constituents, shareholders and the esteemed customers for
the support extended.
The Directors also wish to record their appreciation for the dedicated and
sincere services rendered by workers, staff and executives at all levels of
the operations of the Company during the year.
By Order of the Board of Directors
No.21/B, 2nd Phase,
Kumbalgodu Industrial Area, N K Mohta
Bangalore - 560 074. Chairman & CEO
Date: 26th May, 2001.