Notes to Accounts of Andhra Sugars Ltd.

Mar 31, 2024

r) Provisions and contingent liabilities

i) Provision:

A provision is recorded when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated. The estimated liability for product warranties is recorded when products are sold based on technical evaluation.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. Provisions are discounted when time value of money is material. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expenses.

ii) Contingent liabilities:

Wherever there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because (a) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (b) the amount of the obligation cannot be measured with sufficient reliability. Show cause notices are not considered as Contingent Liabilities unless converted into demand.

iii) Contingent assets:

Wherever there is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. A contingent asset is disclosed when the inflow of economic benefit is probable.

s) Fair value measurement:

In determining the fair value of its financial instruments, the company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value resulting general approximation of value, and such value may never actually be realized.

t) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and net of returns, trade allowances rebates and amounts collected on behalf of third parties. It excludes Goods and Services Tax.

Sale of products:

As per Ind AS 115, “Revenue from contracts with customers” Revenue from sale of products is recognized, when the performance obligation is satisfied, by transferring promised goods to the customer. An asset is transferred when (or as) the customer obtains control to the Asset, as per the terms of contract and it is probable that the economic benefits associated with the transaction will flow to the Company.

Internal Transfers from one unit to the other unit are recognized at Market value of the Product/Service at the Time of Transfer.

Interest Income:

Interest income from debt instruments is recognized using the effective interest rate method and is accrued on a time basis. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying value of a financial asset. While calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options), but does not consider the expected credit losses.

Dividends:

Dividends are recognized in profit or loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of dividend can be reliably measured.

u) Government Grants

Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions.

Grants related to revenue items are presented as part of profit or loss under general heading such as other income or they are deducted in reporting the related expenses.

Government grants relating to the purchase of property, plant and equipment are included in noncurrent liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected lives of the related assets and presented within other income.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the company with no future related costs are recognized in profit or loss in the period in which they become receivable.

The benefit of a government loan at a below-market rate of interest is treated as a government grant, measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates.

Exceptional Items

An item of income or expense which by its size, nature, type or incidence requires disclosure in order to improve an understanding of the performance of the Company is treated as an exceptional item and disclosed as such in the financial statements.

v) Employee benefits

i) Short term obligations:

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees’ services upto the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

ii) Other long-term employee benefit:

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of the expected future payments to be made in respect of services provided by employee upto the end of reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Re-measurements as a result of experience adjustments and changes in actuarial assumptions are recognized in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

iii) Post-employment obligation:

The Company operates the following post-employment schemes:

a) Defined benefit plans such as gratuity for its eligible employees,

b) Defined contribution plans such as provident fund and

c) Superannuation Gratuity obligation:

The liability or asset recognized in the balance sheet in respect of defined benefit pension and gratuity plan is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by Actuaries using the projected unit credit method.

The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on the Government Bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income (net-off deferred tax). They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service cost.

Provident Fund and Employees’ state Insurance Scheme:

Eligible employees of The Andhra Sugars Limited receive benefits from a provident fund and Employees’ State Insurance scheme which is a defined benefit plan. Both the eligible employee and the company make monthly contributions to the Provident Fund and Employees’ State Insurance equal to a specified percentage of the covered employee’s salary.

Superannuation:

Certain employees of The Andhra Sugars Limited are participants in a defined contribution plan. The Company has no further obligations to the Plan beyond its monthly contributions which are periodically contributed to a trust fund, the corpus of which is invested with the Life Insurance Corporation of India.

w) Taxes on income:

Tax expense comprises of current and deferred taxes. The income tax expense(income) for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

The current income tax is the amount of income taxes payable in respect of the taxable profit (tax loss) for a period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.

However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

x) Leases

The Company has adopted Ind AS 116-Leases effective from 1st April, 2019, using the modified retrospective method. The company has applied the standard to its lease with the cumulative impact recognised on the date of initial application (1^st April, 2019). Accordingly, previous period information has not been restated.

The Company’s lease asset consists of lease for Building. The Company assesses whether a contract is or contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and

(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognises a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and leases of low value assets.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

The lease liability is initially measured at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made.

A lease liability is remeasured upon the occurrence of certain events such as a change in the lease term or a change in an index or rate used to determine lease payments. The remeasurement normally also adjusts the leased assets.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

y) Dividend:

Final dividends on shares are recorded as liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the company’s board of directors.

z) Expenditure on approved Research and Development Programme:

In respect of approved Research and Development Programme expenditure of capital nature is included in Property, Plant and Equipment and other expenditure is charged off to revenue in the year in which such expenditure is incurred.

aa) Segment reporting

Operating segments are defined as components of our entity for which discrete financial information is available that is evaluated regularly by the chief operating decision maker, in deciding how to allocate resources and assessing performance, the company’s chief operating decision maker is the Chairman and Managing Director.

The company has identified business segments (industry practice) as reportable segments. The business segments comprise 1) Sugars, 2) Chlor Alkali, 3) Power Generation, 4) Industrial Chemicals -such as Suphuric Acid, UH 25 and MMH, Liquid Hydrogen, HTPB and 5) Others such as bulk drugs and Cattle Feed, Superphosphate etc.,

Revenue and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly attributable to each reporting segment have been allocated on the basis of associated revenue of the segment. All other expenses which are not attributable or allocable to segments have been disclosed as un-allocable expenses.

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as un-allocable. Property, Plant and equipment that are used interchangeably among segments are not allocated to reportable segments.

The Accompanying Notes are an Integral Part of the Financial Statements.

As per our report of even date For and on behalf of the Board of Directors

for Brahmayya & Co., of THE ANDHRA SUGARS LTD,

C h a rte red Acco u nta nts Firm Regn. No. 000513S

P. Narendranath Chowdary Chairman & Managing Director

DIN:00015764

T.V Ramana P. Achuta Ramayya Joint Managing Director

Partner DIN:00015065

Membership No: 200523

UDIN:24200523BKBFQG6206 P.V.S. Viswanadha Kumar V.P.(Finance) & Addl.Secretary

Place :Tanuku Place :Tanuku

Date:30.05.2024 Date:30.05.2024

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Mar 31, 2022

The cost of inventories recognized as an expense during the year in respect of continuing operations was Rs. 40939.71 Lakhs for the year ended 31st March 2022 and Rs. 33571.85 Lakhs for the year ended 31st March 2021.

The amount of write-down of inventories to net realisable value recognised as an expense was Rs.2546.07 Lakhs for the year ended 31st March 2022 and Rs.2679.79 Lakhs for the year ended 31st March 2021. The amount of goods in transit is Rs.818.44 lakhs (Rs. 340.24 lakhs for previous year)

The mode of valuation of inventories has been stated in note "m" in significant accounting policies.

c) Rights, Preference and restrictions attached to Equity shares

1) The Company has only one class of Equity shares having a face value of Rs 2/- each. Each holder of equity share is entitles to one vote per share held. In the event of liquidation of Company, the holders of equity share will be entitles to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to the number of equity shares held by the share holders.

2) The financial statements of the company were approved by Board of Directors on 28-05-2022.

‘Forfeited Debentures have been transferred to Capital Reserve on total redemption of the remaining debentures in the same series.

General reserve: General Reserve is created out of profit after tax earned by the Company by way of transfer from surplus in the statement of profit and loss.The Company can use this Reserve for payment of dividend and issue of fully paid-up shares. As General Reserve is“created by transfer of one component of equity to another and is not an item of other comprehensive income."

Securities Premium: This reserve represents the premium on issue of shares and can be utilised in accordance with the provision of the Companies Act 2013.

Surplus in Profit & Loss; This Reserve represents the cumulative profits of the Company. This reserve can be utilised for the payment of dividend and other purposes in accordance with the provisions of the Companies Act 2013.

Other Comprehensive Income :

Investment Revaluation Reserve: This Reserve represent the cumulative gain or loss arising on Revaluation of Equity Instruments measured at Fair value through Other Comprehensive Income, net of amounts reclassified,if any,to retained earnings when those investments are disposed of.

Acturial Gain/Loss Reserve: This Reserve represents the cumulative acturial gains/losses on account of remeasurement of defined benefit plans, net of amounts reclassified,if any , to retained earnings.

NOTE:

1) The amount that can be distributed by the company as dividends to equity shareholders is determined based on separate financial statements and as per the requirements of companies Act 2013.

2) The Board of Directors, at their meeting held on 11th August, 2021, recommended for the sub-division of equity shares of the Company from existing face value of Rs. 10/- each to face value of Rs.2/- each (i.e. Split of 1 equity share of Rs.10/- each into 5 equity shares of Rs.2/- each), and same has been approved by the shareholders in the Annual General Meeting of the Company held on 23rd September, 2021. The Board of Directors, at their meeting held on 13th November, 2021 fixed 31st December 2021 as the record date. Accordingly, 1 Equity Share of the Company of Rs. 10/- each has been sub-divided into 5 equity shares of Rs. 2/- each on the record date 31st December 2021, and Earnings Per Equity Share has been restated for all the periods presented.

3) For the year ended March 31,2022, the Board of Directors proposed a dividend of Rs.4/- per share of Rs.2/- each face Value is subject to the approval of Shareholders in the ensuing Annual General Meeting.

a) Cash Credit is Secured by Hypothecation of inventories and receivables and collaterally secured by a First charge on the fixed assets of the company except those at the COP division and Wind power divisions in Tamilnadu and Ramagiri,3 MW Solar Plant at Kovvur, and ISRO Plant assets, ranking pari passu among the members of the consortium of working capital lending banks.

b) There is no Foreign Currency Exposure hedged by derivative Instruments in the current and previous years.

As per the enterprise''s accounting policy acturial gains and losses are recognized immediately during the same year itself. The above information is Certified by the Actuary.

Risk exposure and asset-liability matching

Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies take on uncertain long term obligations to make future benefit payments.

1) Liability risks

a) Asset-liability mismatch risk

Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the Company is successfully able to neutralize valuation swings caused by interest rate movements.

b) Discount rate risk

Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practice can have a significant impact on the defined benefit liabilities.

c) Future salary escalation and inflation risk

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at management’s discretion may lead to uncertainties in estimating this increasing risk.

2) Asset risks

All plan assets are maintained in a trust fund managed by a public sector insurer viz. LIC of India and other insurance companies. LIC has a sovereign guarantee and has been providing consistent and competitive returns over the years. The Company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The Company has no control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.

Financial Instruments a) Management of Credit Risk

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract, leading to financial loss. The credit risk arises principally from its operating activities (primary trade receivables) and from its investing activities, including deposits with banks and other financial instruments. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom credit has been granted after obtaining necessary approvals for credit. The collection from the trade receivables are monitored on a continuous basis by the receivables team.

Credit risk arising from trade receivables is managed in accordance with the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on a detailed study of credit worthiness and accordingly individual credit limits are defined/modified.

(c) Under the provisions of "The Levy Sugar Price Equalization Fund Act, 1976" the excess amount collected over the notified levy sale price pursuant to the interim stay granted by the Courts vests in the fund. In a writ petition No: 1534/76 filed by the Company against these provisions, the High Court of Andhra Pradesh has held that provisions of the said Act are not applicable to the excess collections made prior to 15-6-1972, against which the Union Government filed a civil appeal No: 274/79 before the Supreme Court, which is pending.

While admitting the appeal, the Supreme Court granted stay of operation of Judgment of A.P High Court in W.P.No: 1534/76 and directed the Company to furnish a Bank Guarantee for Rs.9.60 lakhs being the difference in levy Sugar price for the Sugar Season 1969-70. The Bank Guarantee was furnished on 7-12-1979 in favour of Registrar, High Court of Andhra Pradesh. Interest, if any, payable under the said Act, estimated at Rs. 64.39 lakhs (Rs 62.66 lakhs) has not been provided for in the accounts pending final legal decision in the matter. However, an amount of Rs.66.80 lakhs was appropriated during the financial year 2008-2009 by Govt India, New Delhi, against payment of buffer stock subsidy dues, which was protested by the company.

40. Consequent to the judgement given by the Hon''ble Supreme Court of India vide its order dated 29th November 2019, upholding the power of Andhra Pradesh Electricity Regulatory Commission (APERC)to determine the levy of wheeling charges, the company has received demands from Andhra Pradesh Eastern Power Distribution Company Limited (APEPDCL), for an amount of Rs. 3092.18 lakhs in respect of four service numbers situated at Kovvuru, Taduvai, Tanuku and Gutala. The company has not received any demand in respect of one service situated at Saggonda from APEPDCL, which is not ascertainable on account of various pending cases at Hon''ble High Court of Andhra Pradesh and Telangana and Hon''ble Supreme Court of India, pertaining to wheeling charges and Allocation of Surplus power generated and transmitted by Andhra Pradesh Gas Power Corporation Limited (APGPCL) to its participating industries. Considering the revised wheeling charges as determined by APERC, in service situated at Saggonda, the company has to get refund of wheeling charges.

In this regard, the company has made liability towards differential wheeling charges and on account of allocation of surplus power based on the bills raised by APEPDCL for an amount of Rs. 8177.56 lakhs. Further, the differential payments made to APGPCL were shown as advance to the extent of Rs. 3764.71 lakhs (including back up bank guarantees en cashed to the extent of Rs. 520.01 lakhs by APGPCL due to invocation of bank guarantees by AP Transco., consequent to the judgement of Hon''ble Supreme Court of India on wheeling charges).

Pending disposal of cases on account of Allocation of Surplus power before Hon''ble Supreme Court of India, the liability towards wheeling charges as per APERC and energy charges payable to APEPDCL is unascertainable. Hence, the demands issued by APEPDCL need further revision and the company has contended for the demands raised by APEPDCL.

Further, APEPDCL is raising monthly electricity bills without considering the power wheeled from APGPCL and continue to disclose this unadjusted amount as arrears in the monthly bills. However, monthly Electricity payments made by the Company as per the Directions of Honourable Courts are being acknowledged by APEPDCL.

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Mar 31, 2021

* Forfeited Debentures have been transferred to Capital Reserve on total redemption of the remainingdebentures in the same series.

General reserve: The general reserve is used from time to time profits from retained earnings for appropriation. This can be utilised inaccrordance with the provisions of the Companies Act 2013.

Securities Premium: This reserve represents the premium on issue of shares and can be utilised in accordance with the provision of the Companies Act 2013.

Surplus in Profit & Loss; This Reserve represents the cumulative profits of the Company. This reserve can be utilised for the payment of dividend and other purposes in accordance with the provisions of the Companies Act 2013.

Other Comprehensive Income :

Investment Revaluation Resereve: This Reserve represent the cumulative gain or loss arising on Revaluation of Equity Instruments measured at Fair value through Other Comprehensive Income, net of amounts reclassified,if any,to retained earnings when those investments are disposed of.

Acturial Gain/Loss Reserve: This Reserve represents the cumulative acturial gains/losses on account of remeasurement of defined benefit plans, net of amounts reclassified,if any , to retained earnings.

NOTE:

1) The amount that can be distributed by the company as dividends to equity shareholders is determined based on separate financial statements and as per the requirements of companies Act 2013.

2) For the year ended March 31st, 2021 the Board of Directors declared a Final dividend of Rs. 10/- per Share.

a) Cash Credit is Secured by Hypothecation of inventories and receivables, and collaterally secured by a First charge on the fixed assets of the company except those at the COP division and Wind power divisions in Tamilnadu and Ramagiri,3 MW Solar Plant at Kovvur, and ISRO Plant assets, ranking pari passu among the members of the consortium of working capital lending banks.

b) Foreign Currency Exposure hedged by derivative Instruments as on 31st March 2021 is Nil and as on 31.03.2020 is Nil.

1) Liability risks

a) Asset-liability mismatch risk

Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the Company is successfully able to neutralize valuation swings caused by interest rate movements.

b) Discount rate risk

Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practice can have a significant impact on the defined benefit liabilities.

c) Future salary escalation and inflation risk

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at management''s discretion may lead to uncertainties in estimating this increasing risk.

2) Asset risks

All plan assets are maintained in a trust fund managed by a public sector insurer viz. LIC of India and other insurance companies. LIC has a sovereign guarantee and has been providing consistent and competitive returns over the years. The Company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The Company has no control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.

Financial Instruments a) Management of Credit Risk

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract, leading to financial loss. The credit risk arises principally from its operating activities (primary trade receivables) and from its investing activities, including deposits with banks and other financial instruments. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom credit has been granted after obtaining necessary approvals for credit. The collection from the trade receivables are monitored on a continuous basis by the receivables team.

Credit risk arising from trade receivables is managed in accordance with the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on a detailed study of credit worthiness and accordingly individual credit limits are defined/modified.

b) Management of market risk

i) Commercial risk

ii) Fair value risk

iii) Foreign exchange risk

The above risks may affect income and expenses, or the value of its financial instruments of the Company. The objective of the Management of the Company for market risk is to maintain this risk within accepatable parameters, while optimising returns. The Company exposure to, and the Management of, these risks is explained below:

C) Management of Liquidity risk

Liquidity risk is the risk that the company will not be able to meet its obligations associated with its financial liabilities that are settled by delivering cash or another financial asset as they fall due. The Company is expected to this risk from its operating activites and financial activities. The Company''s approach to managing liability is to ensure as far as possible that it will have sufficient liquidity to meet its liabilities when they become due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. Liquidity requirements are maintained within the credit facilites established and are available to the Company to meet its obligations. The table now provides details regarding the contractual maturities of significant financial liabilities as of the reporting date.

40.	Disclosures on payments and dues to "suppliers" as defined in Micro, Small and Medium enterprises Development Act 2006 ("The Act"). 31.03.2021 Rs.in Lakhs
1.	Amount remaining unpaidto any " Supplier" at the end of the year, (a) Principal amount of bills to be paid	0.00
	(b) Interest due thereon	0.03
2.	Payments made to suppliers, during the year, but beyond appointed / agreed by (a) Payments made to Suppliers.	2.40
	(b) Interest paid along with such payments during the year u/s 16 of the Act.	0.00
3.	The amount of interest due and payable for the period of delay in making payment but without adding the interest specified under MSMED Act, 2006	0.00
4.	Amount of interest accrued and remaining unpaid, at the end of each accounting year	0.03
5.	Amount of further interest remaining due and payable even in succeeding years, until such date when the interest dues above are actually paid to the small enterprise, for the purpose of disallowance of deductible expenditure under section 23 of MSMED Act, 2006	0.00
Note:For the purpose of the above details of the status of the supplier''s under the Act has been determined, to the extent of and based on information furnished by the respective parties, and has accordingly, been relied upon by the company and its auditors.

41. Consequent to the judgement given by the Hon''ble Supreme Court of India vide its order dated 29th November 2019, upholding the power of Andhra Pradesh Electricity Regulatory Commission (APERC)to determine the levy of wheeling charges, the company has received demands from Andhra Pradesh Eastern Power Distribution Company Limited (APEPDCL), for an amount of Rs. 3092.18 lakhs in respect of four service numbers situated at Kovvuru, Taduvai, Tanuku and Gutala. The company has not received any demand in respect of one service situated at Saggonda from APEPDCL, which is not ascertainable on account of various pending cases at Hon''ble High Court of Andhra Pradesh and Telangana and Hon''ble Supreme Court of India, pertaining to wheeling charges and Allocation of Surplus power generated and transmitted by Andhra Pradesh Gas Power Corporation Limited (APGPCL) to its participating industries. Considering the revised wheeling charges as determined by APERC, in service situated at Saggonda, the company has to get refund of wheeling charges.

In this regard, the company has made liability towards differential wheeling charges and on account of allocation of surplus power based on the bills raised by APEPDCL for an amount of Rs. 8177.56 lakhs. Further, the differential payments made to APGPCL were shown as advance to the extent of Rs. 3764.71 lakhs (including back up bank guarantees encashed to the extent of Rs. 520.01 lakhs by APGPCL due to invocation of bank guarantees by AP Transco., consequent to the judgement of Hon''ble Supreme Court of India on wheeling charges).

Pending disposal of cases on account of Allocation of Surplus power before Hon''ble Supreme Court of India, the liability towards wheeling charges as per APERC and energy charges payable to APEPDCL is unascertainable. Hence, the demands issued by APEPDCL need further revision and the company has contended for the demands raised by APEPDCL.

3) Relatives of Key Management Personnel

Smt. Pendyala Jhansi Jayalakshmi Wife of Sri P.Narendranath Chowdary, Sri Pendyala Venkata Krishna Rao Brother of Sri P.Narendranath Chowdary, Smt. Sri Balusu Ranganayaki Alias Radhika Sister of Sri P.Narendranath Chowdary, Smt. Ethirajulu Rama Lakshmi Sister of Sri P.Narendranath Chowdary, Smt. Jujjavarapu Usha Rani Sister of Sri P.Narendranath Chowdary, Smt. Maddipati Kamala Devi Sister of Sri P.Narendranath Chowdary, Smt. Mullapudi Satyanarayanamma Sister of Sri P.Narendranath Chowdary, Smt. Nutakki Anantha Lakshmi Sister of Sri P.Narendranath Chowdary, Smt. Jayaraman Anantha Lakshmi Sister of Sri M.Narendranath, Smt. Kosaraju Rama Lakshmi Sister of Sri M.Narendranath, Smt. Nidadavolu Venkata Ramanamma (Deceased on 07.11.20) Sister of Sri M.Narendranath, Smt. Yelamarthy Narayanamma Sister of Sri M.Narendranath, Smt. Mullapudi Narayanamma Wife of Sri M.Narendranath, Sri Mullapudi Vikram Prasad Son of Sri M.Narendranath, Smt. Gaddipati Anuradha Daughter of Sri M.Narendranath, Smt. Goli Jayashree Daughter of Sri M.Narendranath, Smt. Mullapudi Renuka Wife of Sri M.Thimmaraja, Sri Mullapudi Mrutyumjaya Prasad Son of Sri M.Thimmaraja, Smt. Goli Devi Daughter of Sri M.Thimmaraja, Smt. Pendyala Sesha Shailaja Wife of Sri P.Achuta Ramayya, Smt. Pendyala Divya Atchmamba Daughter of Sri P.Achuta Ramayya, Smt. Pendyala Sruthi Rajeswari Daughter of Sri P.Achuta Ramayya, Smt. Pendyala Sujatha Mother of Sri P.S.R.V.K.Ranga Rao, Smt. Pendyala Usha Lakshmi Wife of Sri P.S.R.V.K.Ranga Rao, Kum. Pendyala Meghana Sri Sai Sujatha Daughter of Sri P.S.R.V.K.Ranga Rao, Chy. Pendyala Prithvi Sri Narendra Rayudu Son of Sri P.S.R.V.K.Ranga Rao,

---

Mar 31, 2017

1) Classification of financial assets

Debt instruments that meet the following conditions are subsequently measured at amortized cost(except for debt instruments that are designated as at fair value through profit or loss on initial recognition):

- the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and

- the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income (except for debt instruments that are designated as at fair value through profit or loss on initial recognition):

- the asset is held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets; and

- the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Interest income is recognized in profit or loss for FVTOCI debt instruments. For the purposes of recognizing foreign exchange gains and losses, FVTOCI debt instruments are treated as financial assets measured at amortized cost. Thus, the exchange differences on the amortized cost are recognized in profit or loss and other changes in the fair value of FVTOCI financial assets are recognized in other comprehensive income and accumulated under the heading of ''investment Revaluation reserve'' through other comprehensive income''. When the investment is disposed of the cumulative gain or loss previously accumulated in this reserve is reclassified to profit or loss.

All other financial assets are subsequently measured at fair value through Profit and loss.

2) Effective interest method

The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Income is recognized on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL. Interest income is recognized in profit or loss and is included in the "Other income" line item.

3) Investments in equity instruments at FVTOCI

On initial recognition, the company can make an irrevocable election (on an instrument-by-instrument basis) to present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments. This election is not permitted if the equity investment is held for trading. These elected investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in the ''investment Revaluation Reserve'' through other comprehensive income''. The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.

A financial asset is held for trading if:

- it has been acquired principally for the purpose of selling it in the near term; or

- on initial recognition it is part of a portfolio of identified financial instruments that the company manages together and has a recent actual pattern of short-term profit-making; or

- it is a derivative that is not designated and effective as a hedging instrument or a financial guarantee.

The company has equity investments which are not held for trading. The company has elected the FVTOCI irrevocable option for both of these investments. Fair value is determined in the manner described in Para No. AB.

Dividends on these investments in equity instruments are recognized in profit or loss when the company’s right to receive the dividends is established, it is probable that the economic benefits associated with the dividend will flow to the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably. Dividends recognized in profit or loss are included in the ''Other income'' line item.

4) Financial assets at fair value through profit or Loss (FVTPL)

Investments in equity instruments are classified as at FVTPL, unless the company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investments in equity instruments which are not held for trading (see note T.3 above).

Debt instruments that do not meet the amortized cost criteria or FVTOCI criteria (see above) are measured at FVTPL. In addition, debt instruments that meet the amortized cost criteria or the FVTOCI criteria but are designated as at FVTPL are measured at FVTPL.

A financial asset that meets the amortized cost criteria or debt instruments that meet the FVTOCI criteria may be designated as at FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases. The company has not designated any debt instrument as at FVTPL.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on re-measurement recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any dividend or interest earned on the financial asset and is included in the ''Other income ''line item. Dividend on financial assets at FVTPL is recognized when the company''s right to receive the dividends is established, it is probable that the economic benefits associated with the dividend will flow to the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably.

5) De-recognition of financial assets

The Companied-recognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received.

6) Foreign exchange gain and losses

The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of each reporting period.

- For foreign currency denominated financial assets measured at amortized cost and FVTPL, the exchange differences are recognized in profit or loss except for those which are designated as hedging instruments in a hedging relationship.

- Changes in the carrying amount of investments in equity instruments at FVTOCI relating to changes in foreign currency rates are recognized in other comprehensive income.

- For the purposes of recognizing foreign exchange gains and losses, FVT OCI debt instruments are treated as financial assets measured at amortized cost. Thus, the exchange differences on the amortized cost are recognized in profit or loss and other changes in the fair value of FTVOCI financial assets are recognized in other comprehensive income.

Financial liabilities and equity instrument

7) Classification as debt or equity

Debt and equity instruments issued by a company entity are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument

8) Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a company entity are recognized at the proceeds received, net of direct issue costs.

Repurchase of the Company''s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.

9) Financial liabilities

All financial liabilities are subsequently measured at amortized cost using the effective interest method or at FVTPL.

(i) Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is either contingent consideration recognized by the Company as an acquirer in a business combination to which Ind AS 103 applies or is held for trading or it is designated as at FVTPL.

A financial liability is classified as held for trading if:

- it has been incurred principally for the purpose of repurchasing it in the near term; or

- on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking; or

- it is a derivative that is not designated and effective as a hedging instrument.

A financial liability other than a financial liability held for trading or contingent consideration recognized by the Company as an acquirer in a business combination to which Ind AS 103 applies, maybe designated as at FVTPL upon initial recognition if:

- such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise;

- the financial liability forms part of a company of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Company’s documented risk management or investment strategy, and information about the companying is provided internally on that basis; or

- it forms part of a contract containing one or more embedded derivatives, and Ind AS 109 permits the entire combined contract to be designated as at FVTPL in accordance with lnd AS 109.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any interest paid on the financial liability and is included in the ''Other income'' line item.

However, for non-held-for-trading financial liabilities that are designated as at FVTPL, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability''s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss, in which case these effects of changes in credit risk are recognized in profit or loss. The remaining amount of change in the fair value of liability is always recognized in profit or loss. Changes in fair value attributable to a financial liability''s credit risk that are recognized in other comprehensive income are reflected immediately in retained earnings and are not subsequently reclassified to profit or loss.

Gains or losses on financial guarantee contracts and loan commitments issued by the Company that are designated by the Company as at fair value through profit or loss are recognized in profit or loss.

Fair value is determined in the manner described in Para AB.

(ii) Financial liabilities subsequently measured at amortized cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortized cost at the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subset queenly measured at amortized cost are determined based on the effective interest method. interest expense that is not capitalized as part of costs of an asset is included in the ‘Finance costs'' line item.

The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

De-recognition of financial liabilities

The Companied-recognizes financial liabilities when and only when, the Company''s obligations are discharged, cancelled or have expired. An exchange between with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability de-recognized and the consideration paid and payable is recognized in profit or loss.

Hedge Accounting

Derivatives are initially recognized at fair value on the date when a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Company designates certain derivatives as either:

- hedges of the fair value of recognized assets or liabilities or a firm commitment (fair value hedges), or

- hedges of a particular risk associated with the cash flows of recognized assets and liabilities and highly probable forecast transactions (cash flow hedges).

The Company documents at the inception of the hedging transaction the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. The Company also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions have been and will continue to be highly effective in offsetting changes in fair values or cash flows of hedged items.

The fair values of various derivative financial instruments used for hedging purposes are disclosed in Note ---. Movements in the hedging reserve in shareholders'' equity are shown in Note ---. The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months; it is classified as a current asset or liability when the remaining maturity of the hedged item is less than 12 months.

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in the other comprehensive income in cash flow hedging reserve within equity, limited to the cumulative change in fair value of the hedged item on a present value basis from the inception of the hedge. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss, within other gains/(losses).

When forward contracts are used to hedge forecast transactions, the company generally designates only the change in fair value of the forward contract related to the spot component as the hedging instrument. Gains or losses relating to the effective portion of the change in the spot component of the forward contracts are recognized in other comprehensive income in cash flow hedging reserve within equity. In some cases, the entity may designate the full change in fair value of the forward contract (including forward points) as the hedging instrument. In such cases, the gains and losses relating to the effective portion of the change in fair value of the entire forward contract are recognized in the cash flow hedging reserve within equity.

Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss (for example, when the forecast sale that is hedged takes place).

When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in equity at that time remains in equity until the forecast transaction occurs. When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of hedging that were reported in equity are immediately reclassified to profit or loss within other gains/(losses).

w) Borrowings

Borrowing costs incurred in connection with the funds borrowed for acquisition/erection of assets that necessarily take substantial period of time to get ready for intended use, are capitalized as part of such assets. Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing cost eligible for capitalization. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowings costs. All other borrowing costs are charged to revenue.

x) Current and Non-current classification

The Company presents assets and liabilities in the balance sheet based on current / non-current classification.

Cash or cash equivalent is treated as current, unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. In respect of other assets, it is treated as current when it is:

- expected to be realized or intended to be sold or consumed in the normal operating cycle

- held primarily for the purpose of trading

- expected to be realized within twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

- it is expected to be settled in the normal operating cycle

- it is held primarily for the purpose of trading

- it is due to be settled within twelve months after the reporting period, or

- there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

y) Dividend:

Final dividends on shares are recorded as liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the company''s board of directors.

z) Accounting for Derivatives:

The company uses derivative instruments to hedge its exposure to movements in foreign exchange rates, interest rates and currency risks. The objective of these derivative instruments is only to reduce the risk or cost to the company and is not intended for trading or speculation.

aa) Earnings per share:

The company''s Basic EPS is calculated by dividing profit or loss from continuing operations attributable to ordinary equity holders by the weighted average number of ordinary shares outstanding during the period as per IND AS-33, Earnings per Share.

The diluted EPS of an entity is calculated on the same basis as basic EPS, after adjusting for the effects of dilutive potential ordinary shares unless the effect of the potential dilutive equity shares is anti-dilutive.

ab) Investment Property:

Investment properties are measured initially at cost, including transactions costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.

The cost includes the cost of replacing parts and borrowing costs for long term construction projects if the recognition criteria are met. When significant parts of the property are required to be replaced at intervals, the company depreciates them separately based on their specific useful lives. All other repair and maintenance costs are recognized in profit or loss as incurred.

The company depreciates building component of investment property over 30 years from the date of original purchase.

Though the company measures investment property using cost based measurement the fair value of investment property is disclosed in the notes. Fair values are determined based on an annual evaluation performed by an accredited external independent valuer.

Investment properties are de-recognized either when they have been disposed off or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period of de-recognition.

ac) Fair value measurement:

In determining the fair value of its financial instruments, the company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value resulting general approximation of value, and such value may never actually be realized.

ad) Expenditure on approved Research and Development Programme:

In respect of approved Research and Development Programme expenditure of capital nature is included in Property, Plant and Equipment and other expenditure is charged off to revenue in the year in which such expenditure is incurred.

ae) Non-current assets held for sale:

Non- current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such asset(or disposal group) and its sale is highly probable. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.

Non-current assets (and disposal group) classified as held for sale are measured at the lower of their carrying amount and fair value less cost to sell.

10. First-time adoption of Ind-AS

These standalone financial statements of The Andhra Sugars Limited for the year ended 31st March 2017 have been prepared in accordance with Ind AS. For the purposes of transition to Ind AS, the company has followed the guidance prescribed in Ind AS 101 - First Time adoption of Indian Accounting Standard, with April 1, 2015 as the transition date and IGAAP as the previous GAAP.

The transition to Ind AS has resulted in changes in presentation of the financial statements, disclosures in the notes thereto and accounting policies and principles. The accounting policies set out in Note 1 have been applied in preparing standalone financial statements for the year ended March 31, 2017 and the comparative information. An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s Balance Sheet, Statement of Profit and Loss, is set out in note 3.2 and 3.2.2. Exemptions on first time adoption of Ind AS availed in accordance with Ind AS 101 have been set out in note 3.1.1.

11. Exemptions availed on first time adoption of Ind AS 101

a) Deemed Cost

For transition to Ind AS, the company has elected to continue with the carrying value of all its property, plant and equipment, Investment property and intangible assets are recognized as of April 1, 2015 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date, as there is no change in its functional currency.

b) Leases

For transition to Ind AS, the company has adopted the same determination of whether an arrangement contained a lease in accordance with previous GAAP as that required by Appendix C of Ind AS 17.

c) Investments in subsidiaries and Associates

The company has elected to adopt the carrying value under previous GAAP as on the date of transition i.e., April 1, 2015 in its separate financial statements.

d) Designation of previously recognized financial instruments

Under Ind AS 109,at initial recognition of a financial asset, an entity may make an irrecoverable election to present subsequent changes in the fair value of an investment in an equity instrument in other comprehensive income. Ind AS 101 allows such designation of previously recognized financial assets, as ''fair Value through other comprehensive income'' on the basis of the facts and circumstances that existed at the date of transition to Ind AS.

Accordingly, the company has designated its investments in certain equity instruments at fair value through other comprehensive income on the basis of the facts and circumstances that existed at the date of transition to Ind AS.

e) Fair value measurement of financial assets or financial liabilities at initial recognition

Company has applied the requirements in Ind As 109 prospectively to transactions entered into on or after the date of transition to Ind ASs.

Notes to Reconciliation (a) Property, Plant and equipment

Adjustments includes impact of spares capitalization, life expired assets and application of component accounting as per Ind AS.

(b) Capital-work-in-Progress

Adjustments reflect the amount of spares transferred to capital work-in-progress.

(c) Investments

Investments in National Savings Certificates are carried at amortized cost under Ind AS. Investments in Equity instruments are carried at fair value through OCI in Ind AS compared to being carried at cost under IGAAP.

(d) Inventories

Adjustments that reflect spares capitalized to Property, Plant and Equipment and Capital work-in-progress.

(e) Trade Receivables

Adjustments that include loss allowance provided on financial asset i.e., Trade receivables.

(f) Other Equity

Adjustments to retained earnings and other comprehensive income has been made with Ind AS, for the above mentioned items. In addition, as per Ind AS-19, acturial gains and losses are recognized in other comprehensive income as compared to being recognized in the statement of profit and loss under IGAAP

(g) Borrowings

Adjustments include effect due to recognition of Government grant from Interest free Loans and Benefits received from Government earlier recognized under Borrowings.

(h) Deferred Tax Liabilities

The adjustments include recognition of Deferred Tax on investments under Ind AS and due to Deferred Tax impact on Ind AS adjustments.

(i) Other Non-Current Liabilities

Adjustment include the impact of discounting of Liabilities based on their expected date of settlement.

(j) Other Income

Adjustments include Amortization of Government Grant recognized in accordance with Ind AS-20-"Govern-ment Grants" and due to fair value change of investments classified as Fair value through Profit and Loss.

(k) Employee benefit expenses

As per Ind-AS 19 - Employee Benefits, acturial gains and losses are recognized in other comprehensive income and not reclassified to profit and loss in subsequent period.

(l) Finance Cost

Adjustments include notional interest charged on Interest free Loans and Benefits received from Government and due to discounting impact of Liabilities measured at Fair value

(m) Depreciation and Amortization expenses

Adjustments are due to Ind AS impacts made to Property, Plant and Equipment, i.e., Depreciation on Spares Capitalized, Change in Depreciation due to application of Component Accounting as per Ind AS.

(n) Other Expenses

Adjustment is due to change in provision for Loss allowance on Financial Assets (trade receivables).

(o) Deferred Tax

Adjustment include Deferred Tax changes due to above mentioned adjustments.

The cost of inventories recognized as an expense during the year in respect of continuing operations was Rs.2.96 lakhs for the year ended 31 st March 2017 and Rs.0.37 lakhs for the year ended 31 st March 2016

The mode of valuation of inventories has been stated in note "K" in significant accounting policies

Amount of goods in transit is Rs.25.23 lakhs.

* Forfeited Debentures have been transferred to Capital Reserve on total redemption of the remaining debentures in the same series.

General reserve : The general reserve is used from time to time profits from retained earnings for appropriation purposes

Fair value reserve : This reserve represents the cumulative gain or loss arising on the revaluation of equity instruments measured at fair value through other comprehensive income.

NOTE:

1) The amount that can be distributed by the company as dividends to equity shareholders is determined based on separate financial statements and as per the requirements of companies Act 2013.

2) In respect of the year ended March 31,2017 the directors propose that a dividend of Rs. 10 per share shall be paid on fully paid equity shares. This equity dividend is subject to approval by shareholders at the Annual General Meeting .The proposed equity dividend is payable to all holders of fully paid equity shares and the total estimated equity dividend to be paid is Rs.2711.01 Lakhs

Note on undrawn borrowing facilities:

The company have been sanctioned with an aggregate term loan of Rs.14000 lakhs i.e;Rs.10000 lakhs from Andhra Bank & Rs.4000 lakhs from Axis Bank.The company have availed the loan amount so far to the extent of Rs.7,143 lakhs from Andhra Bank & RS.2,857 lakhs from Axis Bank.Keeping in view financial strength of the company the management has decided to not to utilise the undrawn sanctioned amount i.e;Rs.4000 lakhs. The same has been informed to the lenders.

a) Cash Credit is Secured by Hypothecation of inventories and receivables, and colleterally secured by a second charge on the fixed assets of the company except those at the COP division and Wind power divisions in Tamilnadu and Ramagiri,3 MW Solar Plant at Kovvur,ISRO Plants and 33 MW Power Plant assets, ranking pari passu among the members of the consortium of working capital lending banks.

b) Foreign Curreny Exposure hedged by derivative Instruments as on 31 st March 2017 Nil and as on 31.03.2016 is Rs.686.60 Lakhs.

(c) Under the provisions of "The Levy Sugar Price Equalization Fund Act, 1976" the excess amount collected over the notified levy sale price pursuant to the interim stay granted by the Courts vests in the fund. In a writ petition No: 1534/76 filed by the Company against these provisions, the High Court of Andhra Pradesh has held that provisions of the said Act are not applicable to the excess collections made prior to 15-6-1972, against which the Union Government filed a civil appeal No: 274/79 before the Supreme Court, which is pending.

While admitting the appeal, the Supreme Court granted stay of operation of Judgment of A.P High Court in W.P.No: 1534/76 and directed the Company to furnish a Bank Guarantee for Rs.9.60 lakhs being the difference in levy Sugar price for the Sugar Season 1969-70. The Bank Guarantee was furnished on 7-12-1979 in favour of Registrar, High Court of Andhra Pradesh. Interest, if any, payable under the said Act, estimated at Rs. 64.39 lakhs (Rs 62.66 lakhs) has not been provided for in the accounts pending final legal decision in the matter. However, an amount of Rs.66.80 lakhs was appropriated during the financial year 2008-2009 by Govt India, New Delhi, against payment of buffer stock subsidy dues, which was protested by the company.

Note: For the purpose of the above details of the status of the supplier''s under the Act has been determined, to the extent of and based on information furnished by the respective parties, and has accordingly, been relied upon by the company and its auditors.

41. Loans and Advances include an amount of Rs.4000.00 Lakhs (Rupees Forty Crores only) being the amount given as an Inter Corporate Advance u/s 186 of the Companies Act 2013, to The Andhra Petrochemicals, an associate of the company, on the following terms and conditions.

12. RELATED PARTY DISCLOSURES FOR THE PERIOD 01.04.2016 TO 31.03.2017. (A) LIST OF RELATED PARTIES: 1) Subsidiary Companies:

(a) JOCIL LIMITED

(b) The Andhra Farm Chemicals Corporation Limited

(c) Hindustan Allied Chemicals Limited

2) Key Management Personnel (KMP) & Whole time Directors :

Dr. B.B.Ramaiah

Sri Pendyala Narendranath Chowdary Sri Mullapudi Narendranath Sri Mullapudi Thimmaraja Sri Pendyala Achuta Ramayya Sri P.S.R.V.K.Ranga Rao

Company Secretary :

Sri M. Palachandra

General Manager (Finance) & Dy. Secretary :

Sri P.V.S. Viswanadha Kumar

3) Relatives of Key Management Personnel

Sri B.V.V.S.Ramesh Kumar Son of Dr.B.B.Ramaiah

Smt. Pendyala Jhansi Jayalakshmi Wife of Sri PNarendranath Chowdary

Sri Pendyala Venkata Krishna Rao Brother of Sri PNarendranath Chowdary

Smt. Sri Balusu Ranganayaki alias Radhika Sister of Sri PNarendranath Chowdary

Smt. Ethirajulu Rama Lakshmi Sister of Sri PNarendranath Chowdary

Smt. Jujjavarapu Usha Rani Sister of Sri PNarendranath Chowdary

Smt. Maddipoti Kamala Devi Sister of Sri PNarendranath Chowdary

Smt. Mullapudi Satyanarayanamma Sister of Sri PNarendranath Chowdary

Smt. Nutakki Anantha Lakshmi Sister of Sri PNarendranath Chowdary

Smt. Jayaraman Anantha Lakshmi Sister of Sri M.Narendranath

Smt. Kosaraju Rama Lakshmi Sister of Sri M.Narendranath

Smt. Nidadavolu Venkata Ramanamma Sister of Sri M.Narendranath

Smt. Yelamarthy Narayanamma Sister of Sri M.Narendranath

Smt. Mullapudi Narayanamma Wife of Sri M.Narendranath

Sri Mullapudi Vikram Prasad Son of Sri M.Narendranath

Smt. Gaddipati Anuradha Daughter of Sri M.Narendranath

Smt. Goli Jayashree Daughter of Sri M.Narendranath

Smt. Mullapudi Renuka Wife of Sri M.Thimmaraja

Sri Mullapudi Mrutyumjaya Prasad Son of Sri M.Thimmaraja

Smt. Goli Devi Daughter of Sri M.Thimmaraja

Smt. Pendyala Sesha Shailaja Wife of Sri PAchuta Ramayya

Smt. Pendyala Divya Atchmamba Daughter of Sri PAchuta Ramayya

Smt. Pendyala Sruthi Rajeswari Daughter of Sri PAchuta Ramayya

Smt. Pendyala Sujatha Mother of Sri P.S.R.V.K.Ranga Rao

Smt. Pendyala Usha Lakshmi Wife of Sri P.S.R.V.K.Ranga Rao

Kum. Pendyala Meghana Sri Sai Sujatha Daughter of Sri P.S.R.V.K.Ranga Rao

Chy. Pendyala Prithvi Sri Narendra Rayudu Son of Sri P.S.R.V.K.Ranga Rao

4) Enterprises in which Key Management Personnel and/or their relatives are Interested

Andhra Pradesh Gas Power Corporation Limited

Jaya Industries

Jayalakshmi Estates

Jayalakshmi Estates Limited

Jayalakshmi Fertilisers

Jayalakshmi Plastics and Chemicals

Ramaiah & Co.,

Royal Printing Works Mullapudi Venkatarayudu Eye Centre Mullapudi Kamala Devi Cardiovascular Centre Sree Akkamamba Textiles Limited

Sree Mullapudi Timma Raju Memorial Library & Cultural Centre

Sree Mullapudi Venkataramanamma Memorial Hospital

Sree Rangaraya Estates

Sree Sarvaraya Sugars Limited

Sree Satyanarayana Spinning Mills Limited

Sree Pendyala Venkata Krishna Rangaraya Memorial Trust

Sree Harischandra Prasad Investment & Finance Company Limited

Sree Mullapudi Venkatarayudu Memorial Educational Trust

Sree Mullapudi Venkataraya Memorial Polytechnic

Sree Mullapudi Venkatarayudu Memorial Medical Trust

Sugarfield Constructions Pvt. Limited

The Mullapudi Investment & Finance company Pvt. Limited

Sree Thimmaraja Investment & Finance Company Pvt. Limited

Vibhas Polymers Pvt. Limited

5) Associate Company :

The Andhra Petrochemicals Limited

---

Mar 31, 2016

1.) Loans and Advances include an amount of Rs.1500.00 Lakhs (Rupees Fifteen Crores only) being the amount given as an Inter Corporate Advance u/s 186 of the Companies Act 2013, to The Andhra Petrochemicals, an associate of the company, on the following terms and conditions.

2. In the opinion of the management, all the amounts stated under sundry debtors and loans and advances are Recoverable at the values at which they are stated.

3. Disclosures on payments and dues to "suppliers" as defined in Micro, Small and Medium enterprises Development Act, 2006 ("The Act").

Note: For the purpose of the above details of the status of the supplier''s under the Act has been determined, to the extent of and based on information furnished by the respective parties, and has accordingly, been relied upon by the company and its auditors.

4. Loans and Advances in the nature of loans given to subsidiary Hindustan Allied Chemicals Limited as per Regulation 53 (f) and Schedule V of SEBI (listing Obligations and Disclosure Requirements) Regulations,2015 is Rs. Nil as on 31.3.2016. (Maximum balance outstanding during the year is Rs. 0.93 Lakhs ). The investment in the Equity shares of the company is Nos. 328760.

5. Closing stock units of Wind farm at Ramagiri and power generation unit at Taduvai as per the books of the company and as confirmed by the APGENCO is subject to reconciliation, to the extent of Rs.11.83 lakhs due to certain matters pending before Honourable High Court of Andhra Pradesh.

6. PARTICULARS DISCLOSED PURSUANT TO "ACCOUNTING STANDARD -18 RELATED PARTY DICCLOSURES" (A) LIST OF RELATED PARTIES: 1) Subsidiary Companies:

(a) JOCIL LIMITED

(b) The Andhra Farm Chemicals Corporation Limited

(c) Hindustan Allied Chemicals Limited

7) Key Management Personnel (KMP) : Wholetime Directors :

Dr. B.B.Ramaiah

Sri Pendyala Narendranath Chowdary Sri Mullapudi Narendranath Sri Mullapudi Thimmaraja Sri Pendyala Achuta Ramayya Sri P.S.R.V.K.Ranga Rao

Company Secretary :

Sri M. Palachandra

General Manager (Finance) & Asst. Secretary :

Sri P.V.S. Viswanadha Kumar

8 Relatives of Key Management Personnel

Sri B.V.V.S.Ramesh Kumar Son of Dr.B.B.Ramaiah

Smt. Pendyala Jhansi Jayalakshmi Wife of Sri PNarendranath Chowdary

Sri Pendyala Venkata Krishna Rao Brother of Sri PNarendranath Chowdary Smt. Sri Balusu Ranganayaki alias Radhika Sister of Sri PNarendranath Chowdary

Smt. Ethirajula Rama Lakshmi Sister of Sri PNarendranath Chowdary

Smt. Jujjavarapu Usha Rani Sister of Sri PNarendranath Chowdary

Smt. Maddipoti Kamala Devi Sister of Sri PNarendranath Chowdary

Smt. Mullapudi Satyanarayanamma Sister of Sri PNarendranath Chowdary

Smt. Nutakki Anantha Lakshmi Sister of Sri PNarendranath Chowdary

Smt. Jayaraman Anantha Lakshmi Sister of Sri M.Narendranath

Smt. Kosaraju Rama Lakshmi Sister of Sri M.Narendranath

Smt. Nidadavolu Venkata Ramanamma Sister of Sri M.Narendranath

Smt. Yelamarthy Narayanamma Sister of Sri M.Narendranath

Smt. Mullapudi Narayanamma Wife of Sri M.Narendranath

Sri Mullapudi Vikram Prasad Son of Sri M.Narendranath

Smt. Gaddipati Anuradha Daughter of Sri M.Narendranath

Smt. Goli Jayashree Daughter of Sri M.Narendranath

Smt. Mullapudi Renuka Wife of Sri M.Thimmaraja

Sri Mullapudi Mrutyumjaya Prasad Son of Sri M.Thimmaraja

Smt. Goli Devi Daughter of Sri M.Thimmaraja

Smt. Pendyala Sesha Shailaja Wife of Sri PAchuta Ramayya

Smt. Pendyala Divya Atchmamba Daughter of Sri PAchuta Ramayya

Smt. Pendyala Sruthi Rajeswari Daughter of Sri PAchuta Ramayya

Smt. Pendyala Sujatha Mother of Sri P.S.R.V.K.Ranga Rao

Smt. Pendyala Usha Lakshmi Wife of Sri P.S.R.V.K.Ranga Rao

Kum. Pendyala Meghana Sri Sai Sujatha Daughter of Sri P.S.R.V.K.Ranga Rao

Chy. Pendyala Prithvi Sri Narendra Rayudu Son of Sri P.S.R.V.K.Ranga Rao

9) Enterprises in which Key Management Personnel and/or their relatives are Interested

Andhra Pradesh Gas Power Corporation Limited

Jaya Industries

Jayalakshmi Estates

Jayalakshmi Estates Limited

Jayalakshmi Fertilisers

Jayalakshmi Plastics and Chemicals

Ramaiah & Co.,

Royal Printing Works Mullapudi Venkatarayudu Eye Centre Mullapudi Kamala Devi Cardiovascular Centre Sree Akkamamba Textiles Limited

Sree Mullapudi Timma Raju Memorial Library & Cultural Centre

Sree Mullapudi Venkataramanamma Memorial Hospital

Sree Rangaraya Estates

Sree Sarvaraya Sugars Limited

Sree Satyanarayana Spinning Mills Limited

Sree Pendyala Venkata Krishna Rangaraya Memorial Trust

Sree Harischandra Prasad Investment & Finance Company Limited

Sree Mullapudi Venkatarayudu Memorial Educational Trust

Sree Mullapudi Venkataraya Memorial Polytechnic

Sree Mullapudi Venkatarayudu Memorial Medical Trust

Sugarfield Constructions Pvt. Limited

The Mullapudi Investment & Finance company Pvt. Limited

Thimmaraja Investment & Finance Company Pvt. Limited

Vibhas Polymers Pvt. Limited

10) Associate Company : The Andhra Petrochemicals Limited

11. The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act,1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entailed to the exemption. Necessary information relating to the subsidies has been included in the Consolidated Financial Statements.

12. GENERAL:

Figures have been rounded off to the nearest thousand.

Previous year figures have been regrouped wherever necessary.

Figures in Brackets are for previous year.

---

Mar 31, 2015

1. Loans and Advances include an amount of Rs.15.00 Crores (Rupees Fifteen Crores only) being the amount given as an Inter Corporate Advance u/s 186 of the Companies Act 2013, to The Andhra Petrochemi- cals, an associate of the company, on the following terms and conditions.

a) Amount of Advance : Rs.1500.00 Lakhs

b) Date of Advance : Rs.1000.00 Lakhs on 03.04.2014.

Rs. 500.00 Lakhs on 23.09.2014.

c) Interest Rate : 13.00% p.a

d) Security : Unsecured

e) Purpose of Advance : To meet Temporary Requirement of Funds.

f) Tenor : Repayable on or before 31.03.2016.

2. In the opinion of the management, all the amounts stated under sundry debtors and loans and advances are Recoverable at the values at which they are stated.

3. Disclosures on payments and dues to "suppliers" as defined in Micro, Small and Medium enterprises Development Act, 2006 ("The Act").

Note: For the purpose of the above details of the status of the supplier's under the Act has been determined, to the extent of and based on information furnished by the respective parties, and has accordingly, been relied upon by the company and its auditors.

4. Loans and Advances in the nature of loans given to subsidiary Hindustan Allied Chemicals Limited as per clause 32 of the listing agreement is Rs. Nil as on 31.3.2015. (Maximum balance outstanding during the year is Rs. 0.94 Lakhs ). The investment in the Equity shares of the company is Nos. 328760.

5. Closing stock units of Wind farm at Ramagiri and power generation unit at Taduvai as per the books of the company and as confirmed by the APGENCO is subject to reconciliation, to the extent of Rs.11.83 lakhs due to certain matters pending before Honourable High Court of Andhra Pradesh.

6. The Ministry of Corporate Affairs,Government of India, vide General Circular Nos. 2 and 3 dated 8th February, 2011 and 21st February, 2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act,1956, subject to fulfillment of conditions stipulated in the Circular. The Company has satisfied the conditions stipulated in the Circular and hence is entiled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

7. GENERAL:

Figures have been rounded off to the nearest thousand. Previous year figures have been regrouped wherever necessary. Figures in Brackets are for previous year.

---

Mar 31, 2014

1. Exceptional item in 2012-13 represents Liability of the Company towards Fuel Surcharge Adjustment Charge payable to Eastern Power Distribution Company of Andhra Pradesh Ltd., for the years 2010-11 and 2011- 12 as per the orders of APERC.

2. In the opinion of the management, all the amounts stated under sundry debtors and loans and advances are recoverable at the values at which they are stated.

3. Disclosures on payments and dues to "suppliers" as defined in Micro, Small and Medium enterprises Development Act, 2006 ("The Act").

4. Loans and Advances in the nature of loans given to subsidiary Hindustan Allied Chemicals Limited as per Clause 32 of the Listing Agreement is Rs. Nil as on 31.3.2014. (Maximum balance outstanding during the year is Rs. 0.64 Lakhs ). The investment in the Equity Shares of the company is Nos. 328760.

5. Closing stock units of Wind farm at Ramagiri and power generation unit at Taduvai as per the books of the Company and as confirmed by the APGENCO is subject to reconciliation, to the extent of Rs.11.83 lakhs due to certain matters pending before the Honourable High Court of Andhra Pradesh.

PARTICULARS DISCLOSED PURSUANT TO "ACCOUNTING STANDARD -18 RELATED PARTY DISCLOSURES"

(A) LIST OF RELATED PARTIES:

1) Subsidiary Companies:

(a) JOCIL LIMITED

(b) The Andhra Farm Chemicals Corporation Limited

(c) Hindustan Allied Chemicals Limited

2) Key Management Personnel (KMP) :

Wholetime Directors

Dr. B.B.Ramaiah

Sri Pendyala Narendranath Chowdary

Sri Mullapudi Narendranath

Sri Mullapudi Thimmaraja

Sri Pendyala Achuta Ramayya

Sri P.S.R.V.K.Ranga Rao

3) Relatives of Key Management Personnel

Sri B.V.V.S.Ramesh Kumar Son of Dr.B.B.Ramaiah

Smt. Pendyala Jhansi Jayalakshmi Wife of Sri P.Narendranath Chowdary

Sri Pendyala Venkata Krishna Rao Brother of Sri P.Narendranath Chowdary

Smt. Sri Balusu Ranganayaki alias Radhika Sister of Sri P.Narendranath Chowdary

Smt. Ethirajulu Ramalakshmi Sister of Sri P.Narendranath Chowdary

Smt. Jujjavarapu Usha Rani Sister of Sri P.Narendranath Chowdary

Smt. Maddipoti Kamala Devi Sister of Sri P.Narendranath Chowdary

Smt. Mullapudi Satyanarayanamma Sister of Sri P.Narendranath Chowdary

Smt. Nutakki Ananthalakshmi Sister of Sri P.Narendranath Chowdary

Kum. Pendyala Ananthalakshmi Satyavathi Devi Daughter of Sri P.Narendranath Chowdary

Smt. Jayaraman Ananthalakshmi Sister of Sri M.Narendranath

Smt. Kosaraju Ramalakshmi Sister of Sri M.Narendranath

Smt. Nidadavolu Venkata Ramanamma Sister of Sri M.Narendranath

Smt. Yelamarthy Narayanamma Sister of Sri M.Narendranath

Smt. Mullapudi Narayanamma Wife of Sri M.Narendranath

Sri Mullapudi Vikram Prasad Son of Sri M.Narendranath

Smt. Gaddipati Anuradha Daughter of Sri M.Narendranath

Smt. Goli Jayashree Daughter of Sri M.Narendranath

Smt. Mullapudi Renuka Wife of Sri M.Thimmaraja

Sri Mullapudi Mrutyumjaya Prasad Son of Sri M.Thimmaraja

Smt. Goli Devi Daughter of Sri M.Thimmaraja

Smt. Pendyala Sesha Shailaja Wife of Sri P.Achuta Ramayya

Smt. Pendyala Divya Atchamamba Daughter of Sri P.Achuta Ramayya

Smt. Pendyala Shruthi Rajeshwari Daughter of Sri P.Achuta Ramayya

Smt. Pendyala Sujatha Mother of Sri P.S.R.V.K.Ranga Rao

Smt. Pendyala Usha Lakshmi Wife of Sri P.S.R.V.K.Ranga Rao

Kum. Pendyala Meghana Sri Sai Sujatha Daughter of Sri P.S.R.V.K.Ranga Rao

Chy. Pendyala Prithvi Sri Narendra Rayudu Son of Sri P.S.R.V.K.Ranga Rao

4) Enterprises in which Key Management Personnel and/or their relatives have significant influence

Andhra Pradesh Gas Power Corporation Limited

Jaya Industries

Jayalakshmi Chemical Enterprises Pvt. Limited

Jayalakshmi Estates

Jayalakshmi Estates Limited

Jayalakshmi Fertilisers

Jayalakshmi Plastics and Chemicals

Ramaiah & Co.

Royal Printing Works

Mullapudi Venkatarayudu Eye Centre

Mullapudi Kamala Devi Cardiovascular Centre

Sree Akkamamba Textiles Limited

Sree Mullapudi Thimma Raju Memorial Library & Cultural Centre

Sree Mullapudi Venkataramanamma Memorial Hospital

Sree Rangaraya Estates

Sree Sarvaraya Sugars Limited

Sree Satyanarayana Spinning Mills Limited

Sree Pendyala Venkata Krishna Rangaraya Memorial Trust

Sree Harischandra Prasad Investment & Finance Company Limited

Sree Mullapudi Venkatarayudu Memorial Educational Trust

Sree Mullapudi Venkataraya Memorial Polytechnic

Sree Mullapudi Venkatarayudu Memorial Medical Trust

Sugarfield Constructions Pvt. Limited

The Mullapudi Investment & Finance Company Pvt. Limited

Thimmaraja Investment & Finance Company Pvt. Limited

Vibhas Polymers Pvt. Limited

5) Associate Company :

The Andhra Petrochemicals Limited

6.The Ministry of Corporate Affairs,Government of India, vide General Circular Nos. 2 and 3 dated 8th Febru- ary, 2011 and 21st February, 2011 respectively has granted a general exemption from compliance with Sec- tion 212 of the Companies Act,1956, subject to fulfillment of conditions stipulated in the Circular. The Com- pany has satisfied the conditions stipulated in the Circular and hence is entiled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

7.GENERAL:

Figures have been rounded off to the nearest thousand. Previous year figures have been regrouped wherever necessary. Figures in Brackets are for previous year.

JOCIL LIMITED

1. The Andhra Sugars Limited held 48,86,500 Equity Shares of Rs.10/- each fully paid-up out of the total paid-up shares of 88,81,150 amounting to Rs. 8,88,11,500/-.

2. The subsidiary company earned a profit of Rs.11,32,53,257/- for the year ended 31st March, 2014 and no part of this was dealt with in the holding company''s Accounts.

THE ANDHRA FARM CHEMICALS CORPORATION LIMITED

1. The Andhra Sugars Limited held 3,45,700 Equity Shares of Rs.10/- each fully paid-up out of the total subscribed shares of 4,50,000.

2. The subsidiary company incurred a loss of Rs.54,88,106/- for the year ended 31st March, 2014 and no part of this was dealt with in the holding company''s Accounts.

HINDUSTAN ALLIED CHEMICALS LIMITED

1. The Andhra Sugars Limited held 3,28,760 Equity Shares of Rs.2.50 ps per share called and paid- up out of the total subscribed shares of 4,25,012 of Rs.10/- each.

2. The subsidiary company earned a profit of Rs.4,96,804/- for the year ended 31st March, 2014 and no part of this was dealt with in the holding company''s Accounts.

Since the accounting year of the subsidiary companies coincide with that of the holding company, furnishing of information relating to material changes of subsidiary companies, does not arise.

---

Mar 31, 2013

Note -1

1. Other monies for which the Company is contingently liable :

(a) Guarantees issued by the Company for obligations

arising out of events occurred at the Balance Sheet date 1894.28 1563.04

(b) On letter of Credit opened with banker for purchase of Material 1333.13 4417.47

(c) Under the provisions of "The Levy Sugar Price Equalisation Fund Act, 1976" the excess amount collected over the notified levy sale price pursuant to the interim stay granted by the Courts vests in the fund. In a writ petition No: 1534/76 filed by the Company against these provisions, the High Court of Andhra Pradesh has held that provisions of the said Act are not applicable to the excess collections made prior to 15-6-1972, against which the Union Government filed a civil appeal No: 274/79 before the Supreme Court, which is pending.

While admitting the appeal, the Supreme Court granted stay of operation of Judgment of A.P. High Court in W.P.No: 1534/76 and directed the Company to furnish a Bank Guarantee for Rs.9.60 lakhs being the difference in levy Sugar price for the Sugar Season 1969-70. The Bank Guarantee was furnished on 7-12-1979 in favour of Registrar, High Court of Andhra Pradesh. Interest, if any, payable under the said Act, estimated at Rs. 64.39 lakhs (Rs 62.66 lakhs) has not been provided for in the accounts pending final legal decision in the matter. However, an amount of Rs.66.80 lakhs was appropriated during the financial year 2008-09 by Govt India, New Delhi, against payment of buffer stock subsidy dues, which was protested by the company.

Note - 2

2. Exceptional items represents Liability of the Company towards Fuel Surcharge Adjustment Charge payable to Eastern Power Distribution Company of Andhra Pradesh Ltd., for the years 2010-11 and 2011-12 as per the orders of APERC.

Note - 3

3. In the opinion of the management, all the amounts stated under sundry debtors and loans and advances are Recoverable at the values at which they are stated.

4. Loans and Advances in the nature of loans given to subsidiary Hindustan Allied Chemicals Limited as per clause 32 of the listing agreement is Rs.Nil (0.46 Lakhs) as on 31.3.2013. (Maximum balance outstanding during the year is Rs. 0.82 Lakhs ). The investment in the Equity Shares of the company is Nos. 328760.

Note - 5

5. Closing stock units of Wind farm at Ramagiri and power generation unit at Taduvai as per the books of the Company and as confirmed by the APGENCO is subject to reconciliation, to the extent of Rs.11.83 lakhs due to certain matters pending before Honourable High Court of Andhra Pradesh.

6. PARTICULARS DISCLOSED PURSUANT TO "ACCOUNTING STANDARD -18 RELATED PARTY DISCLOSURES"

(A) LIST OF RELATED PARTIES:

1) Subsidiary Companies:

(a) JOCIL LIMITED

(b) The Andhra Farm Chemicals Corpn. Ltd.

(c) Hindustan Allied Chemicals Ltd.

2) Key Management Personnel (KMP) :

Wholetime Directors

Dr. B.B.Ramaiah

Sri P.Narendranath Chowdary

Sri M.Narendranath

Sri M.Thimmaraja

Sri P.Achuta Ramayya

Sri P.S.R.V.K.Ranga Rao

3) Relatives of Key Management Personnel

Sri B.V.V.S.Ramesh Kumar

Smt. Pendyala Jhansi Jayalakshmi

Sri Pendyala Venkata Krishna Rao

Smt. Sri Balusu Ranganayaki

Smt. Ethirajulu Rama Lakshmi

Smt. Jagarlamudi Akkamamba

Smt. Jujjavarapu Usha Rani

Smt. Maddipoti Kamala Devi

Smt. Mullapudi Satyanarayanamma

Smt. Nutakki Anantha Lakshmi

Kum. Pendyala Anantha Lakshmi Satyavathi Devi

Smt. Jayaraman Anantha Lakshmi

Smt. Kosaraju Rama Lakshmi

Smt. Nidadavolu Venkataramanamma

Smt. Yalamarthi Narayanamma

Smt. Mullapudi Narayanamma

Sri Mullapudi Vikram Prasad

Smt. Gaddipati Anuradha

Smt. Goli Jayashree

Smt. Mullapudi Renuka

Sri Mullapudi Mrutyumjaya Prasad

Smt. Goli Devi

Smt. Pendyala Sesha Shailaja

Son of Dr.B.B.Ramaiah

Wife of Sri P.Narendranath Chowdary

Brother of Sri P.Narendranath Chowdary

Sister of Sri P.Narendranath Chowdary

Sister of Sri P.Narendranath Chowdary

Sister of Sri P.Narendranath Chowdary

Sister of Sri P.Narendranath Chowdary

Sister of Sri P.Narendranath Chowdary

Sister of Sri P.Narendranath Chowdary

Sister of Sri P.Narendranath Chowdary

Daughter of Sri P.Narendranath Chowdary

Sister of Sri M.Narendranath

Sister of Sri M.Narendranath

Sister of Sri M.Narendranath

Sister of Sri M.Narendranath

Wife of Sri M.Narendranath

Son of Sri M.Narendranath

Daughter of Sri M.Narendranath

Daughter of Sri M.Narendranath

Wife of Sri M.Thimmaraja

Son of Sri M.Thimmaraja

Daughter of Sri M.Thimmaraja

Wife of Sri P.Achuta Ramayya

Smt. Pendyala Divya Atchamamba

Kum. Pendyala Sruthi Rajeswari

Smt. Pendyala Sujatha

Smt. Pendyala Usha Lakshmi

Kum. Pendyala Meghana Sri Sai Sujatha

Chy. Pendyala Pridvi Sri Narendrarayudu

Daughter of Sri P.Achuta Ramayya Daughter of Sri P.Achuta Ramayya Mother of Sri P.S.R.V.K.Ranga Rao Wife of Sri P.S.R.V.K.Ranga Rao Daughter of Sri P.S.R.V.K.Ranga Rao Son of Sri P.S.R.V.K.Ranga Rao

4) Enterprises in which Key Management Personnel and/or their relatives have significant influence

Andhra Pradesh Gas Power Corporation Limited

J J Finance

J L Finance

Jaya Agro Chemicals

Jaya Finance

Jaya Industries

Jayalakshmi Chemical Enterprises Pvt. Limited

Jayalakshmi Estates

Jayalakshmi Estates Limited

Jayalakshmi Fertilisers

Jayalakshmi Finance

Jayalakshmi Plastics and Chemicals

Ramaiah & Co.,

Royal Printing Works

Sree Akkamamba Textiles Limited

Sree Mullapudi Kamala Devi Cardio Vascular Centre

Sree Mullapudi Thimmaraju Memorial Library and Cultural Centre

Sree Mullapudi Venkataramanamma Memorial Hospital

Sree Rangaraya Estates

Sree Sarvaraya Sugars Limited

Sree Satyanarayana Spinning Mills Limited

Sri Pendyala Venkata Krishna Rao Memorial Trust

Sugarfield Constructions Pvt. Limited

Sree Harischandra Prasad Investment & Finance Company Limited

Sree Mullapudi Venkatarayudu Memorial Education Trust

Sree Mullapudi Venkataraya Memorial Polytechnic

Sree Mullapudi Venkatarayudu Memorial Medical Trust

The Mullapudi Investment & Finance Company Pvt. Limited

Thimmaraja Investment & Finance Company Pvt. Limited

Vibhas Polymers Pvt. Limited

5) Associate Company :

The Andhra Petrochemicals Limited

7.The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February, 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act,1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entiled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

8.GENERAL:

Figures have been rounded off to the nearest thousand. Previous year figures have been regrouped wherever necessary. Figures in Brackets are for previous year.

---

Mar 31, 2012

Note - 1

1. "Sundry Creditors" includes Rs.7.53 lakhs received from State Trading Corporation (STC) towards damages for breach of Contract pursuant to the orders of the Appellate Authorities/ Arbitrators. Since, further Appeals preferred by the S.T.C. Before the higher appellate authorities are pending, the said amount is not recognised as revenue in the year of receipt, pending disposal of final appeal.

Note - 2

2. In the opinion of the management, all the amounts stated under sundry debtors and loans and advances are recoverable at the values at which they are stated.

Note - 3

3. Disclosures on payments and dues to "suppliers" as defined in Micro, Small and Medium enterprises Development Act, 2006 ("The Act"). 31.03.2012

1. Amount remaining unpaid, beyond the appointed / agreed date at the end of the year. Rs.in Lakhs

(a) Principal amount of bills to be paid 0

(b) Interest due thereon 0

4. (a) Payments made to suppliers, during the year, but beyond appointed / agreed by 140.02 Interest thereon in terms of Sec. 16 of the Act 0.14

(b) Interest paid along with such payments during the year

(c) Interest due and payable at the end of the year, on such payments made during the year 0.14

5. Amount of interest, for the year, u/s. 16 of the Act, including that accrued and remaining unpaid, at the end of the year 0.14

6. Total amount of interest, u/s. 16 of the Act, including that arising in earlier years, accrued and remaining unpaid at the end of the year 0.14

Note: For the purpose of the above details of the status of the supplier's under the Act has been determined, to the extent of and based on information furnished by the respective parties, and has accordingly, been relied upon by the Company and its auditors.

Note - 4

7. Loans and Advances in the nature of loans given to subsidiary Hindustan Allied Chemicals Limited as per clause 32 of the listing agreement is Rs.0.46 lakhs as on 31.3.2012. (Maximum balance outstanding during the year is Rs. 11.02 lakhs ). The investment in the Equity Shares of the Company is Nos. 328760.

Note - 5

8. Closing stock units of Wind farm at Ramagiri and power generation unit at Taduvai as per the books of the Company and as confirmed by the APGENCO is subject to reconciliation, to the extent of Rs.11.83 lakhs due to certain matters pending before Honourable High Court of Andhra Pradesh.

---

Mar 31, 2011

(A) Under the provisions of "The Levy Sugar Price Equalisation Fund Act, 1976" the excess amount collected over the notified levy sale price pursuant to the interim stay granted by the Courts vests in the fund. In a writ petition No: 1534/76 filed by the Company against these provisions, the High Court of Andhra Pradesh has held that provisions of the said Act are not applicable to the excess collections made prior to 15-6-1972, against which the Union Government filed a civil appeal No: 274/79 before the Supreme Court, which is pending.

While admitting the appeal, the Supreme Court granted stay of operation of Judgment of A.P. High Court in W.P.No: 1534/76 and directed the Company to furnish a Bank Guarantee for Rs.9.60 lakhs being the difference in levy Sugar price for the Sugar Season 1969-70. The Bank Guarantee was furnished on 7-12-1979 in favour of Registrar, High Court of Andhra Pradesh. Interest, if any, payable under the said Act, estimated at Rs.62.66 lakhs (Rs.60.93 lakhs) has not been provided for in the accounts pending final legal decision in the matter. However, an amount of Rs.66.80 lakhs was appropriated during the Financial Year 2008-2009 by Govt India, New Delhi, against payment of buffer stock subsidy dues, which was protested by the company.

1. "Sundry Creditors" includes Rs.7.53 lakhs received from State Trading Corporation (STC) towards damages for breach of Contract pursuant to the orders of the Appellate Authorities/ Arbitrators. Since further Appeals preferred by the S.T.C. before the higher Appellate Authorities are pending, the said amount is not recognised as revenue in the year of receipt, pending disposal of final appeal.

2. In the opinion of the management, all the amounts stated under sundry debtors and loans and advances are recoverable at the values at which they are stated.

3. Balances in some of the customers accounts are subject to confirmation by and reconciliation with the said parties.

4. Disclosures on payments and dues to "suppliers" as defined in Micro, Small and Medium enterprises Development Act, 2006 ("The Act").

Note: For the purpose of the above details of the status of the suppliers under the Act has been determined, to the extent of and based on information furnished by the respective parties, and has accordingly, been relied upon by the Company and its auditors.

5. Loans and Advances in the nature of loans given to subsidiary Hindustan Allied Chemicals Limited as per Clause 32 of the Listing Agreement is Rs.NIL as on 31.3.2011. (Maximum balance outstanding during the year is Rs.3.68 lakhs). The investment in the Equity Shares of the Company is Nos. 328760.

6. Closing stock units of Wind farm at Ramgiri and power generation unit at Taduvai as per the books of the Company and as confirmed by the AP Genco is subject to reconciliation, to the extent of Rs.11.83 lakhs due to certain matters pending before Honorable High Court of Andhra Pradesh.

Note: The above figures include Excise Duty recovered

Note: Where one class of goods is used in the manufacture of another, consumption of raw-materials and sales have been arrived at after deducting inter unit transfers. Excise Duty, if any, is adjusted in Schedule No.18.

1 The above licensed capacities are as registered with the concerned authorities, wherever necessary, consequent to delicencing of the respective products.

2 Production of Electrical energy is net after deductions towards wheeling and banking charges.

3 The installed capacities are as certified by the Managing Director.

7. GENERAL:

Figures have been rounded off to the nearest thousand. Previous year figures have been regrouped wherever necessary. Figures in brackets are for previous year.

Statement Pursuant to Section 212 of the Companies Act, 1956. JOCIL LIMITED

1. The Andhra Sugars Limited held 24,43,250 Equity Shares of Rs.10/- each fully paid-up out of the total paid-up shares of 44,40,575 amounting to Rs.4,44,05,750/-.

2. The Subsidiary Company earned a profit of Rs.28,45,33,470/- for the year ended 31st March, 2011 and no part of this dealt with in the Holding Company's Accounts.

THE ANDHRA FARM CHEMICALS CORPORATION LIMITED

1. The Andhra Sugars Limited held 3,45,700 Equity Shares of Rs.10/- each fully paid-up out of the total subscribed shares of 4,50,000.

2. The Subsidiary Company incurred a loss of Rs.47,63,288/- for the year ended 31st March, 2011 and no part of this dealt with in the Holding Company's Accounts.

HINDUSTAN ALLIED CHEMICALS LIMITED

1. The Andhra Sugars Limited held 3,28,760 Equity Shares of Rs.2.50 ps per share called and paid- up out of the total subscribed shares of 4,25,012 of Rs.10/- each.

2. The Subsidiary Company earned a profit of Rs.62,96,167/- for the year ended 31st March, 2011 and no part of this dealt with in the Holding Company's Accounts.

Since the accounting year of the Subsidiary Companies, coincide with that of the Holding Company, furnishing of information relating to material changes of Subsidiary Companies, does not arise.

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Mar 31, 2010

1. Under the provisions of "The Levy Sugar Price Equalisation Fund Act, 1976" the excess amount collected over the notified levy sale price pursuant to the interim stay granted by the Courts vests in the fund. In a writ petition No: 1534/76 filed by the Company against these provisions, the High Court of Andhra Pradesh has held that provisions of the said Act are not applicable to the excess collections made prior to 15-6-1972, against which the Union Government filed a civil appeal No: 274/79 before the Supreme Court, which is pending.

While admitting the appeal, the Supreme Court granted stay of operation of Judgement of A.P. High Court in W.P.No: 1534/76 and directed the Company to furnish a Bank Guarantee for Rs.9.60 lakhs being the difference in levy Sugar price for the Sugar Season 1969-70. The Bank Guarantee was furnished on 7-12-1979 in favour of Registrar, High Court of Andhra Pradesh. Interest, if any, payable under the said Act, estimated at Rs. 60.93 lakhs (Rs 59.20 lakhs) has not been provided for in the accounts pending final legal decision in the matter. However, an amount of Rs.66.80 lakhs was appropriated during the Financial year 2008-2009 by Govt India, New Delhi, against payment of buffer stock subsidy dues, which was protested by the company.

2. "Sundry Creditors" includes Rs.7.53 lakhs received from State Trading Corporation (STC) towards damages for breach of Contract pursuant to the orders of the Appellate Authorities/ Arbitrators. Since, further Appeals preferred by the S.T.C. Before the higher appellate authorities are pending, the said amount is not recognised as revenue in the year of receipt, pending disposal of final appeal.

3. In the opinion of the management, all the amounts stated under sundry debtors and loans and advances are recoverable at the values at which they are stated.

4. Balances in some of the customers accounts are subject to confirmation by and reconciliation with the said parties.

Note: For the purpose of the above details of the status of the suppliers under the Act has been deter- mined, to the extent of and based on information furnished by the respective parties, and has accordingly, been relied upon by the Company and its auditors.

5. Loans and Advances in the nature of loans given to subsidiary Hindustan Allied Chemicals Limited as per clause 32 of the listing agreement is Rs.0.91 lakhs as on 31.3.2010. (Maximum balance outstanding during the year is Rs.0.91 lakhs). The investment in the Equity Shares of the company is Nos. 328760.

6. Closing stock units of Wind farm at Ramagiri and power generation unit at Taduvai as per the books of the company and as confirmed by the AP Genco is subject to reconciliation, to the extent of Rs.11.83 lakhs due to certain matters pending before Honourable High Court of Andhra Pradesh.

Note: Where one class of goods is used in the manufacture of another, consumption of raw-materials and sales have been arrived at after deducting inter unit transfers. Excise Duty, if any, is adjusted in Schedule No.18.

7. GENERAL:

Figures have been rounded off to the nearest thousand. Previous year figures have been regrouped wherever necessary. Figures in brackets are for previous year.