Notes to Accounts of Davangere Sugar Company Ltd.

Mar 31, 2025

(K) Provisions and Contingencies
Provisions:

Provisions are recognised when there is a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation and there is a reliable estimate of the amount of the
obligation. Provisions are measured at the best estimate of the expenditure required to settle
the present obligation at the Balance sheet date and are discounted to its present value as
appropriate.

Contingent Liabilities:

Contingent liabilities are disclosed when there is a possible obligation arising from past
events, the existence of which will be confirmed only by the occurrence or nonoccurrence of
one or more uncertain future events not wholly within the control of the company or a
present obligation that arises from past events where it is either not probable that an
outflow of resources will be required to settle or a reliable estimate of the amount cannot be
made, is termed as a contingent liability.

(L) Revenue recognition

Revenue is measured at fair value of the consideration received or receivable. Revenue is
recognized when (or as) the Company satisfies a performance obligation by transferring a
promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the

customer obtains control of that asset.

When (or as) a performance obligation is satisfied, the Company recognizes as revenue the
amount of the transaction price (excluding estimates of variable consideration) that is allocated
to that performance obligation.

The Company applies the five-step approach for recognition of revenue:

i. Identification of contract(s) with customers;

ii. Identification of the separate performance obligations in the contract;

iii. Determination of transaction price;

iv. Allocation of transaction price to the separate performance obligations; and

v. Recognition of revenue when (or as) each performance obligation is satisfied.

(M) Other income:

Interest: Interest income is calculated on effective interest rate, but recognised on a time
proportion basis taking into account the amount outstanding and the rate applicable.

Dividend: Dividend income is recognised when the right to receive dividend is established.

(N) Finance Cost

Borrowing costs that are directly attributable to the acquisition or construction of qualifying
assets are capitalised as part of the cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its intended use. based on
borrowings incurred specifically for financing the asset or the weighted average rate of all
other borrowings, if no specific borrowings have been incurred for the asset.

Interest income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for
capitalisation.

Borrowing costs include exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the interest cost.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for
which they are incurred.

(O) Earnings per share (EPS):

Basic EPS is calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted EPS, the net profit or loss for the period attributable to
equity shareholders and the weighted average number of additional equity shares that would
have been outstanding are considered assuming the conversion of all dilutive potential equity
shares. Earnings considered in ascertaining the EPS is the net profit for the period and any
attributable tax thereto for the period.

(P) Employee benefits

i. Provident Fund

Retirement benefit in the form of Provident Fund is a defined contribution scheme. The Company
has no obligation, other than the contribution payable to the provident fund. The Company
recognises contribution payable to the provident fund scheme as an expense when an employee
renders the related service.

ii. Gratuity

The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan") covering eligible
employees in accordance with the Payment of Gratuity Act, 1972 as amended. The Gratuity Plan
provides a lump sum payment to vested employees at the time of separation, retirement, death,
incapacitation or termination of employment, of an amount based on the respective employee''s
salary and the tenure of employment. For defined benefit retirement benefit plans, the cost of
providing benefits is determined using the projected unit credit method, with actuarial valuations
being carried out at the end of each annual reporting period by an independent Actuary.
Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset
ceiling (if applicable) and the return on plan assets (excluding net interest)(if applicable), is
reflected immediately in the balance sheet with a charge or credit recognised in other
comprehensive income in the period in which they occur. Remeasurement recognised in other
comprehensive income is reflected immediately in retained earnings and is not reclassified to
profit or loss. Past service cost is recognised in the Statement of profit or loss in the period of a
plan amendment. Net interest is calculated by applying the discount rate to the net defined
benefit liability or asset.

Defined benefit costs are categorised as follows:

a. Service cost (including current service cost, past service cost, as well as gains and losses on
curtailments and settlements);

b. Net interest expense or income; and

c. Remeasurements - The Company presents the service costs in profit or loss in the line item
''Employee benefits expense''. Curtailment gains and losses are accounted for as past service costs.
The retirement benefit obligation recognised in the balance sheet represents the actual deficit or
surplus in the Company''s defined benefit plans. Any surplus resulting from this calculation is
limited to the present value of any economic benefits available in the form of refunds from the
plans or reductions in future contributions to the plans.

A liability for a termination benefit is recognised at the earlier of when the Company can no longer
withdraw the offer of the termination benefit and when the Company recognises any related
restructuring costs.

iii. Long Term Employee Benefits:

The Company accounts for its liability towards compensated absences based on actuarial valuation
done as at the Balance Sheet date by an independent actuary using the Projected Unit Credit
Method. The liability includes the long-term component accounted on a discounted basis and the
short-term component which is accounted for on an undiscounted basis.

iv. Short-term and other long-term employee benefits:

A liability is recognised for benefits accruing to employees in respect of wages and salaries in the
period the related service is rendered at the undiscounted amount of the benefits expected to be
paid in exchange for that service.

Liabilities recognised in respect of short-term employee benefits are measured at the
undiscounted amount of the benefits expected to be paid in exchange for the related service.
Liabilities in respect of other long-term employee benefits are measured at the present value of
the estimated future cash outflows expected to be made by the Company in respect of services
provided by employees upto the reporting date.

(Q) Fair Value Measurement:

The Company measures financial instruments such as investments in quoted share, certain other
investments etc. at fair value at each Balance Sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability at the
measurement date. All assets and liabilities for which fair value is measured or disclosed in the
financial statements are categorized within the fair value hierarchy, described as follows, based on
the lowest level input that is significant to the fair value measurement as a whole.

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.

(R) Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.

Financial assets:

Initial recognition

Financial assets are recognised when the Company becomes a party to the contractual
provisions of the instruments. Financial assets other than trade receivables and other specific
assets are initially recognised at fair value plus transaction costs for all financial assets not
carried at fair value through profit or loss. Financial assets carried at fair value through profit

or loss are initially recognised at fair value, and transaction costs are expensed in the
Statement of Profit and Loss.

Subsequent measurement

Financial assets, other than equity instruments, are subsequently measured at amortised
cost, fair value through other comprehensive income or fair value through profit or loss on
the basis of both:

i. The entity''s business model for managing the financial assets and

ii. The contractual cash flow characteristics of the financial asset.

De-recognition

The Company derecognizes a financial asset when the contractual rights to the cash flows
from the financial asset expire, or it transfers rights to receive cash flows from an asset, it
evaluates if and to what extent it has retained the risks and rewards of ownership. When it
has neither transferred nor retained substantially all of the risks and rewards of the asset,
nor transferred control of the asset, the Company continues to recognise the transferred
asset to the extent of the Company''s continuing involvement. In that case, the Company also
recognises an associated liability. The transferred asset and the associated liability are
measured on a basis that reflects the rights and obligations that the Company has retained.

Financial Liabilities:

Initial Recognition and Subsequent Measurement

All financial liabilities are recognised initially at fair value and in case of borrowings and
payables, net of directly attributable cost. Financial liabilities are subsequently carried at
amortized cost using the effective interest method. For trade and other payables maturing
within one year from the Balance Sheet date, the carrying amounts approximate fair value
due to the short maturity of these instruments. Changes in the amortised value of liability are
recorded as finance cost.

De-recognition

A financial liability is de-recognised when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit or loss.

1.3 Recent Pronouncements:

Ministry of Corporate Affairs("MCA") notifies new standards or amendment to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to
time.

For the year ended 31 March 2025, MCA has not notified any new standards or amendments
to the existing standards applicable to the Company.

ISSl V0\

The previous year''s figures have been reworked, regrouped, and reclassified wherever
necessary. Amounts and other disclosures for the preceding year are included as an integral part
of the current annual financial statements and are to be read in relation to the amounts and
other disclosures relating to the current financial year.

33. Credit and Debit balances of unsecured loans, sundry creditors, sundry Debtors, loans and
Advances are subject to confirmation and therefore the effect of the same on profit could not be
ascertained.

34. The Company has not revalued its Property, Plant and Equipment for the current year.

35. There has been Capital work in progress carried forward from the previous year and there is no
additional capital work in progress for the current year of the company.

36. There is no Intangible assets under development in the current year.

37. The Company does not have any charges or satisfaction which is yet to be registered with ROC
beyond the statutory period.

38. Quarterly returns or statements of current assets filed by the Company with banks or financial
institutions are in agreement with the books of accounts.

39. The Company has not traded or invested in Crypto currency or Virtual Currency during the
financial year.

40. No proceeding has been initiated or pending against the Company for holding any Benami
property under the Benami Transactions (Prohibition) Act, 1988, as amended, and rules made
thereunder.

41. The company has not been declared as willful defaulter by any bank or financial institution or
government or government authority.

42. The Company has not advanced or loaned to or invested in funds to any other person(s) or
entity(is), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall:

a. directly or indirectly lend to or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries

43. The Company has not received any fund from any person(s) or entity(is), including foreign
entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that
the Company shall

a. directly or indirectly lend to or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries)or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

44. The company does not have transaction with the struck off under section 248 of companies act,
2013 or section 560 of Companies act 1956.

45. The company is in compliance with the number of layers prescribed under clause (87) of section
2 of company''s act read with companies (restriction on number of layers) Rules, 2017.

46. Related Parties Disclosure: -

The Disclosures of Transaction with the related parties as defined in the related parties as
defined in the Accounting Standard are given below:

48.Notes forming part of accounts in relation to Micro and small enterprise

1. Based on information available with the company, on the status of the suppliers being Micro or
small enterprises, on which the auditors have relied, the disclosure requirements of Schedule III to
the Companies Act,2013 with regard to the payments made/due to Micro and small Enterprises are
given below:

The company has initiated the process of obtaining the confirmation from suppliers who have
registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006
(MSMED Act, 2006) but has not received the same in totality. The above information is compiled
based on the extent of responses received by the company from its suppliers.

49. Title deeds of immovable Property

Tittle deeds of immovable property has not been held in the name of promoter, director, or
relative of promoter/ director or employee of promoters / director of the company, hence same
are held in the name of the company.

50. Loans or Advances in the nature of loans to promoters, directors, KMPs and the related
parties:-

No Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the
related parties (as defined under Companies Act, 2013,) either severally or jointly with any other
person.

51. Compliance with approved Scheme(s) of Arrangements

The Company does not have made any arrangements in terms of section 230 to 237 of
companies act 2013, and hence there is no deviation to be disclosed.

52. Utilization of Borrowed funds and share premium:-

As on March 31, 2025 there is no unutilized amount in respect of any issue of securities and long
term borrowings from bank and financial institutions. The borrowed funds have been utilized for
the specific purpose for which the funds were raised.

---

Mar 31, 2024

(K) Provisions and Contingencies Provisions:

Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are discounted to its present value as appropriate.

Contingent Liabilities:

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is termed as a contingent liability.

(L) Revenue recognition

Revenue is measured at fair value of the consideration received or receivable. Revenue is recognized when (or as) the Company satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset.

When (or as) a performance obligation is satisfied, the Company recognizes as revenue the amount of the transaction price (excluding estimates of variable consideration) that is allocated to that performance obligation.

The Company applies the five-step approach for recognition of revenue:

i. Identification of contract(s) with customers;

ii. Identification of the separate performance obligations in the contract;

iii. Determination of transaction price;

iv. Allocation of transaction price to the separate performance obligations; and

v. Recognition of revenue when (or as) each performance obligation is satisfied.

(M) Other income:

Interest: Interest income is calculated on effective interest rate, but recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend: Dividend income is recognised when the right to receive dividend is established.

(N) Finance Cost

Borrowing costs that are directly attributable to the acquisition or construction of qualifying

assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. based on borrowings incurred specifically for financing the asset or the weighted average rate of all other borrowings, if no specific borrowings have been incurred for the asset.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

(O) Earnings per share (EPS):

Basic EPS is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted EPS, the net profit or loss for the period attributable to equity shareholders and the weighted average number of additional equity shares that would have been outstanding are considered assuming the conversion of all dilutive potential equity shares. Earnings considered in ascertaining the EPS is the net profit for the period and any attributable tax thereto for the period.

(P) Employee benefits

i. Provident Fund

Retirement benefit in the form of Provident Fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognises contribution payable to the provident fund scheme as an expense when an employee renders the related service.

ii. Gratuity

Gratuity is in the nature of a defined benefit plan. Provision for gratuity is calculated on the basis of actuarial valuations carried out at balance sheet date and is charged to the statement of profit and loss. The actuarial valuation is performed using the projected unit credit method. Remeasurement, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

(Q) Fair Value Measurement:

The Company measures financial instruments such as investments in quoted share, certain other investments etc. at fair value at each Balance Sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability at the measurement date. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole.

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

(R) Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets:

Initial recognition

Financial assets are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial assets other than trade receivables and other specific assets are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value, and transaction costs are expensed in the Statement of Profit and Loss.

Subsequent measurement

Financial assets, other than equity instruments, are subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss on the basis of both:

i. The entity''s business model for managing the financial assets and

ii. The contractual cash flow characteristics of the financial asset.

De-recognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers rights to receive cash flows from an asset, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Financial Liabilities:

Initial Recognition and Subsequent Measurement

All financial liabilities are recognised initially at fair value and in case of borrowings and payables, net of directly attributable cost. Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments. Changes in the amortised value of liability are recorded as finance cost.

De-recognition

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

(S) Global Health Pandemic COVID - 19

The outbreak of Coronavirus (COVID-19) pandemic globally and in India is causing significant slow disturbance and slowdown of economic activity. The company has evaluated impact of this pandemic on its business operations and based on its review and current indicators for future economic conditions, there is no significant impact on its financial statements.

1.3 Recent Pronouncements:

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On 23rd March, 2022, MCA notified the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from 1st April, 2022, as below:

i. Ind AS 16 - Proceeds before intended use

The amendments specify that the excess of net sale proceeds of items produced while the Company is preparing the asset for its intended use over its cost of testing, if any, shall not be recognized in the profit or loss but shall be deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment. The Company does not expect the amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.

ii. Ind AS 103 - Reference to Conceptual Framework

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired, and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any

significant impact in its financial statements.

iii. Ind AS 109 - Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the ''10 percent'' test of Ind AS 109 in assessing whether to derecognize a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements.

The previous year''s figures have been reworked, regrouped, and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current annual financial statements and are to be read in relation to the amounts and other disclosures relating to the current financial year.

27. Credit and Debit balances of unsecured loans, sundry creditors, sundry Debtors, loans and Advances are subject to confirmation and therefore the effect of the same on profit could not be ascertained.

28. The Company has not revalued its Property, Plant and Equipment for the current year.

29. There has been Capital work in progress carried forward from the previous year and there is no additional capital work in progress for the current year of the company.

30. There is no Intangible assets under development in the current year.

31. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

32. Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

33. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

34. No proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988, as amended, and rules made thereunder.

35. The company has not been declared as willful defaulter by any bank or financial institution or government or government authority.

36. The Company has not advanced or loaned to or invested in funds to any other person(s) or entity(is), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend to or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

37. The Company has not received any fund from any person(s) or entity(is), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall

a. directly or indirectly lend to or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries)or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

38. The company does not have transaction with the struck off under section 248 of companies act, 2013 or section 560 of Companies act 1956.

39. The company is in compliance with the number of layers prescribed under clause (87) of section 2 of company''s act read with companies (restriction on number of layers) Rules, 2017.

40. Related Parties Disclosure: -

The Disclosures of Transaction with the related parties as defined in the related parties as defined in the Accounting Standard are given below:

42. Corporate Social Responsibility (CSR)

The section 135 (Corporate social responsibility) of companies act, 2013 is applicable to the company for the Financial Year 2023-24 since the PAT of the company exceeds Rs.5 crores. The Company made a profit of Rs. 1768 Lakhs (Profit Before Tax) during the Financial Year 2022- 23 and hence the CSR provisions are applicable for the Financial Year 2023-24. The company has spent Rs. 14.26 lacs being 2% of the average Net Profit for the past 3 years on enhancement of the education activities. The CSR provisions are applicable for the FY 2023-24 and the company has to spend Rs.25.87 Lakhs during the current FY 2024-25 (before end of FY) for the CSR activities as specified in the Schedule VII to the Companies Act, 2013.

43. Notes forming part of accounts in relation to Micro and small enterprise

1. Based on information available with the company, on the status of the suppliers being Micro or small enterprises, on which the auditors have relied, the disclosure requirements of Schedule III to the Companies Act,2013 with regard to the payments made/due to Micro and small Enterprises are given below :

The company has initiated the process of obtaining the confirmation from suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) but has not received the same in totality. The above information is compiled based on the extent of responses received by the company from its suppliers.

44. Title deeds of immovable Property

Tittle deeds of immovable property has not been held in the name of promoter, director, or relative of promoter/ director or employee of promoters / director of the company, hence same are held in the name of the company.

45. Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties:-

No Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

46. Compliance with approved Scheme(s) of Arrangements

The Company does not have made any arrangements in terms of section 230 to 237 of companies act 2013, and hence there is no deviation to be disclosed.

47. Utilization of Borrowed funds and share premium:-

As on March 31, 2024 there is no unutilized amount in respect of any issue of securities and long term borrowings from bank and financial institutions. The borrowed funds have been utilized for the specific purpose for which the funds were raised.

---

Mar 31, 2023

1. The previous year''s figures have been reworked, regrouped, and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current annual financial statements and are to be read in relation to the amounts and other disclosures relating to the current financial year.

2. Credit and Debit balances of unsecured loans, sundry creditors, sundry Debtors, loans and Advances are subject to confirmation and therefore the effect of the same on profit could not be ascertained.

3. The Company has not revalued its Property, Plant and Equipment for the current year.

32. There is no Intangible assets under development in the current year.

33. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

34. Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

35. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

36. No proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988, as amended, and rules made thereunder.

37. The company has not been declared as willful defaulter by any bank or financial institution or government or government authority.

38. The Company has not advanced or loaned to or invested in funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend to or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

39. The Company has not received any fund from any person(s) or entity(is), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall

a. directly or indirectly lend to or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries)or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

40. The company does not have transaction with the struck off under section 248 of companies act, 2013 or section 560 of Companies act 1956.

41. The company is in compliance with the number of layers prescribed under clause (87) of section 2 of company''s act read with companies (restriction on number of layers) Rules, 2017.

42. Related Parties Disclosure: -

The Disclosures of Transaction with the related parties as defined in the related parties as defined in the Accounting Standard are given below:

45. Corporate Social Responsibility (CSR)

The section 135 (Corporate social responsibility) of companies act, 2013 is applicable to the company for the Financial Year 201-22 since the PAT of the company exceeds Rs.5 crores. The provisions of section 135 of the Companies Act, 2013 was not applicable to the company for the last to last Financial Years i.e. 2020-21, since the Pat for the Financial year 20-21 was below Rs.5 crores. The Company made a profit of Rs. 1321.54 Lakhs during the Financial Year 2022-23 and hence the CSR provisions are applicable for the Financial Year 2022-23. The company has to spend Rs. 14.26 lacs being 2% of the average Profit After Taxes for the 3 years. The Company complied with CSR Provisions and spent the amount partly on educating the children of poor farmers and partly to promote the environmental sustainability in the local area.

The company has initiated the process of obtaining the confirmation from suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) but has not received the same in totality. The above information is compiled based on the extent of responses received by the company from its suppliers.

47. Title deeds of immovable Property

Tittle deeds of immovable property has not been held in the name of promoter, director, or relative of promoter/ director or employee of promoters / director of the company, hence same are held in the name of the company.

48. Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties:-

No Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

49. Compliance with approved Scheme(s) of Arrangements:-

The Company does not have made any arrangements in terms of section 230 to 237 of Companies act 2013, and hence there is no deviation to be disclosed.

50. Utilization of Borrowed funds and share premium:-

As on March 31, 2022 there is no unutilized amount in respect of any issue of securities and long term borrowings from bank and financial institutions. The borrowed funds have been utilized for the specific purpose for which the funds were raised.

---

Mar 31, 1993

1. CONTINGENT LIABILITY NOT PROVIDED FOR:

a) The Company has given a consolidated continuing guarantee of Rs. 100.00 lakhs in favour of State Bank of Mysore covering Sugarcane crop Loans advanced by the Bank to the Company's sponsored loan applications under the direct agricultural financing scheme. Total outstandings as on 31.3.1993 covered under the guarantee was Rs. 42 lakhs.

b) Amount included in "SALE OF SUGAR" in the respective years (as detailed hereunder) representing the difference between the levy price fixed by the Central Government for the levy sugar and the higher price allowed by the High Court of Karnataka in it's interim orders and the same having not been credited to Levy Price Equalisation Fund:

SUGAR YEAR ACCOUNTING YEAR AMOUNT

1974-75 1974-76 1,66,811 1975-76 4,66,348 1975-76 1976-77 14,497 1977-78 1977-78 2,86,429 1977-78 1978-79 5,51,457 --------- Total 14,85,542 ---------

c) Interest at 12.5% upto 31.3.1993 payable as per the provisions of the Levy Sugar Price Equalisation Fund Act, 1976 on the differential amount of Rs. 43,57,091/- collected on sale of levy sugar pursuant to interim orders of High Court of Karnataka, such excess realisation not having been credited to Levy Price Equalisation Fund: Rs. 75,62,172/-.

d) Counter Guarantee issued in favour of State Bank of Mysore (Levy Price Writ Petition matters Rs. 37,09,435 and for damages claimed for breach of contract by State Trading Corporation Rs. 3,63,109): Rs. 40,72,544/-.

e) Land Revenue demand in respect of survey Nos. 44,50/1,2P, 51/1,2,3,4,5P,52/1, 2P and 71P situated at Kukkuwada: Rs. 37,645/-.

f) Contribution towards loss on export on 8523 quintals of 1992-93 Season's free Quota sugar as per the Sugar Export Promotion Act, 1958, the amount of which is not ascertainable.

g) From the year 1990-91, the purchase tax is being calculated and paid on the price of Statutory Minimum price fixed by the Central Government. The Sales Tax Authorities are demanding on the full payment made to cane Groweres (which include Harvesting & Transport subsidy) and the matter is in dispute. The amount works out to Rs. 79.33 lakhs.

2) SECURED LOANS:

a) Term Loans from Financial Institutions and Term Loans from State Bank of Mysore alongwith debentures (sub-sequently converted into loan) from Unit Trust of India are secured by registered/equitable mortgage of all immovable properties of the company, present and future and/or hypothecation of all the movable properties of the company, present and future (subject to the charge created on finished and semi finished goods and consumable stores in favour of Bankers for Working Capital requirements) in favour of the Financial Institutions/Banks/Trustees ranking pari-passu Interse.

b) Other Converted Term Loans as per the earlier Package of reliefs and concessions extended to the Company during the year 1982 are secured by registered mortgage of all immovable and movable properties of the Company, present and future and/or hypothecation of movable properties of the company, present and future (subject to the charges created on raw-materials, finished goods and semi-finished goods and consumable stores in favour of the Bankers for Working Capital requirements) ranking Pari-Passu Interese alongwith the charges already created in favour of the Financial Institutions/Banks/Trustees as stated in 2 (a) above.

c) All the Term Loans are guaranteed by the Government of Karnataka.

3. UNSECURED LOANS:

a) FROM GOVERNMENT OF KARNATAKA:

Purchase Tax (Interest Free) loan of Rs. 261.00 lakhs representing Purchase Tax on cane and surcharge thereon upto the year 1983-84 has been formally approved for convertion to Loan.

In the meantime, during the year 1986, as a rehabilitation measure, the Government has communicated to M/s Industrial Development Bank of India that it has agreed to extend moratorium for a further period of 10 years upto October, 1994 subject to the condition that the financial position of the company would be reviewed from time to time and also that if the financial position improves, the same would be collected before.

b) FROM M/S. KARNATAKA STATE INDUSTRIAL INVESTMENT AND DEVELOPMENT CORPORATION LTD:

Under the Package of Reliefs extended to the Company, the Unsecured Loan of Rs. 25.00 Lakhs due to M/s. KSIIDC Ltd., obtained to meet the additional cane price of 1982-83 Season has been agreed by the State Government to be treated as loan, which would be subordinate to all the Institutional Loans having last charge. As per the recent package of reliefs communicated to the company by M/s IDBI., after approval by B.I.F.R., it has to be converted to Equity.

4. CURRENT LIABILITIES:

a) Sundry Creditors for others includes differential amounts collected on sale of Levy sugar pursuant to the orders of High Court of Karnataka on the Writ Petitions filed by the company as detailed hereunder:

SUGAR YEAR ACCOUNTING YEAR AMOUNT 1978-79 1979-80 6,13,663 1979-80 1979-80 11,41,108 1979-80 1980-81 11,16,778 --------- Total 28,71,549 ---------

Bank Guarantee with 100% margin on stocks of Sugar is provided in respect of excess realisations aggregating to Rs. 37,09,435/- for Sugar Years 1977-78 to 1979-80 as detailed above and at 2 (b) & 4 (a).

b) Sundry Creditors for others includes a sum of Rs. 78,55,010/- representing the amount due to the Govt. of Karnataka against the Purchase Tax dues for the Years 1988-89 to 1992-93 on Sugarcane crushed. As per the rehabilitation scheme communicated to the Company by M/s. IDBI after approval of B.I.F.R., the collection of future Purchase Tax dues of the company has to be deferred by the Govt. of Karnataka until the dues of the Company to the Financial Institutions and Banks are cleared by the company. Despite this, the Recovery Officer of the commercial Tax Department had sent a notice of attachment of the properties of the company during July, 1989 under the K.S.T. Rules for a sum of Rs. 11,71,583/-.

The Company, through a writ petition to the High Court of Karnataka had brought an interim stay on the operation of the notice contending that such an action would be violative of section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985. The Hon'ble High Court has passed final orders in favour of the company, staying the recovery of the Purchase Tax.

5. FIXED ASSETS.

FREE HOLD LAND:

a. In respect of 50 acres and 24 guntas acquired on 12.9.1974, the value of Leasehold land represents amounts already paid by way of compensation directly and 20% down payment and annual lease rent instalments paid in respect of Lease-cum-Sale Deed for Rs. 38,581/- entered into with M/s Karnataka Industrial Areas Development Board on 10.2.1975. The Lease period in this regard has expired and steps are being taken to get the title deeds transferred in Company's name.

b. In respect of 102 Acres and 36 guntas acquired on 4.5.1981, the value of Lease hold land represents 20% down payment, enhanced compensation and Lease rent instalments paid to M/s Karnataka Industrial Areas Development Board towards provisional cost of the lands allotted to the Company on Lease-cum-Sale basis. The Lease period in this regard also has expired during the year 1989-90 and steps are being taken to transfer the title in the name of the Company.

6. Investments includes National Savings Certificates of the face value of Rs. 3,400/- lodged with the Central Excise Department, Deputy Commissioner, Chitradurga, for obtention/renewal of Licences.

7. CASH AND BANK BALANCE:

a. Includes Term Deposit of Rs. 3,500/- held in the joint name of the Company and Deputy Director of Public Instruction, Chitradurga, towards stability fund of the Primary School.

b. Includes Term Deposit of Rs. 3,63,109/- kept with State Bank of Mysore, against the Guarantee issued by them to the High Court of New Delhi, in State Trading Corporation of India matters.

c. Includes term Deposits of Rs. 10,00,000/- kept with State Bank of Mysore, Agriculture Development Branch, Davangere, as lien against guarantee issued by the Company towards the overdues of our sponsored Sugarcane Growers.

8. INTEREST ON UNSECURED LOANS FROM PROMOTERS:

a. Under the package of reliefs extended to the Company, interest on the loan of Rs. 25.00 lakhs due to M/s. KSIIDC Ltd., obtained to meet the additional cane price of 1982-83 Season has been funded and the payment of the same has to be made after the Institutional dues are clared.

b. No interest has been provided on the funded Interest of Rs. 17.60 lakhs due to M/s. KSIIDC Ltd., on the first loan of Rs. 25.00 lakhs which has already been converted to Equity during the year 1981-82. Interest on the second Unsecured Loan of Rs. 25.00 lakhs (as referred to in 8(a) above) has been funded upto 14.3.1988 at 13% per annum and interest has been provided at 13% on Principal and at 12% on the Funded Interest portion. As per the package of reliefs and concessions the corporation has to receive that interest liability after all the Institutional dues are cleared by the Company.

c. No interest has been provided by the Company on the Loan of Rs. 15.00 Lakhs due to M/s. KAIC Ltd., as it was agreed to be converted to Equity as per the earlier package of reliefs. However, interest as per the earlier package of reliefs has been provided upto the date of receipt of money by M/s KAIC Ltd., from the Govt. of Karnataka for the purpose of convertion of this loan to Equity and loan has been converted to Equity during the year. As per the revised package of reliefs communicated during the year 1988, approved by B.l.F.R., the Corporation has to fund the interest and receive the same after the Institutional dues are cleared by the company.

9. PACKAGE OF RELIEFS AND CONCESSIONS:

a. The earlier package of reliefs and concessions granted to the Company, which expired on 30.4.1982/31.5.1982 was agreed for extension upto 30.6.1987 by a revised package starting from 1.7.1987 which also contained reschedulement of Term Loan outstandings starting from March, 1988 to end by June, 1994. This was approved by B.I.F.R., during March, 1988.

b. The package was reviewed during January, 1991, again and the fresh package was communicated by M/s. I.D.B.I., during March, 1991 which withdraw certain concessions and all the interest rates have been revised to normal rates from 1.7.1991. This package, which was also approved by B.l.F.R., has stipulated that the balance Term Loan outstandings should be cleared before March, 1993. Again, this has been rescheduled to commence from 1.4.1993 and to end by 1.7.1994.

c. Interest on Term Loan outstandings have been paid at the fresh package rates on the due dates by the Company.

d. The Term Loan outstandings of the Company to the Financial Institutions are pending reconciliation with their books of accounts after the adjustment of repayments made by the Company as per the revised schedule and as well as the accelerated repayments made during the year 1989-90.

10. Confirmation of balance from Debtors and Creditors though called for have not been fully received.

11. Power and fuel consumed is exclusive of own bagasse consumed.

12. Cash system of accounting in respect of certain receipts/claims of casual nature is adopted which is as in the previous year.

13. The Company has created a Gratuity Trust. As per the Trust Rules, all the employees of the Company excluding the employees on service contract for a specified period and on deputation are eligible for Gratuity. The trust has taken out a Group Gratuity Policy from L.I.C. of India. Payment to the trust towards the premium payable to L.I.C. of India is accounted during the year ended 31.3.1993 on mercantile basis. In case of premature cessation of the services of an employee eligible for gratuity, the difference between the actual gratuity payable and refund of premium received from L.I.C. of India is passed on to the Trust for payment to employees and the same is accounted on cash basis.

14. Expenditure incurred to employees who were in receipt of remuneration of not less than Rs. 1,44,000/- per annum when employed throughout the year and Rs. 12,000/- per month when employed for the part of the year: Nil.

15. Figures for the current year have been re-grouped wherever considered necessary.