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Vintage Foods & Industries Ltd.

BSE: 531940 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Vintage Foods & Industries Ltd
NSE 05:30 | 01 Jan Vintage Foods & Industries Ltd

Vintage Foods & Industries Ltd. (VINTAGEFOODS) - Director Report

Company director report

VINTAGE FOODS & INDUSTRIES LIMITED ANNUAL REPORT 1999-2000 DIRECTORS' REPORT 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. DIVIDEND 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. OPERATIONS 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 possible. MARKETING ACTIVITIES 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. DIRECTORS 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. INDUSTRIAL RELATIONS 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 AUDITORS Messers A Rammohan & Co., Chartered Accountants, Bangalore, Auditors of the Company retire in the ensuing Annual General Meeting and are eligible for appointment. 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 report. Going Concern 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 statements. AUDITORS' REPORT 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 December, 2000. 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. ACKNOWLEDGEMENTS 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 Regd. Office: No.21/B, 2nd Phase, Kumbalgodu Industrial Area, N K Mohta Bangalore - 560 074. Chairman & CEO Date: 26th May, 2001.