Notes to Accounts of Indian Sucrose Ltd.

Mar 31, 2024

b. Rights, preference and restrictions attached to Euity Shares

The Company presently has one class of equity shares having a par value Rs.10/- each. Each holder of equity shares is entitled to one vote per share. The divident if proposed by the Board of Directors is subjects to the approval of the share holders in the ensuing Anual General Meeting In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company , after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity shares held by the shareholders. The Company has not decleared dividend during the year ended 31 March 2024

Rights attached to preference Shares

The Company has not issued preference shares during the current and previous Year .

c. The Details of Equity sharesholders holding more than 5% of the aggregate Equity Shares

d. There are no shares issued without payment being received in cash during the last five years.

e. There are no buy back of Equity shares during the last five years.

f. There are no bonus shares issued during the last five years.

g. There is no holding/ultimate holding company of the Company.

A - Details of Security for term Loans

1. Term loan from banks and financial institutions are secured by way of equitable mortage of alll present and future immovable properties of the company ranking pari-passucharge by way of hypothecation of all the company''s Movable properties, save and except book debt but including movable machinery, spares tools and accessories both present and future subject to prior charges created/ to be created in favour of the company''s Bankers on Specified movable properties for securing borrowings for working capital requirments,

2. Futher the term loans from bank and financial institutions are secured by second pari-passu charge on all current assets presents and future and the peronal guarantee of the Managing Director of the company and his family members and corporate quarantee by a promoter company.

3. Term loan from others are secured by hypothecation of Vehicle Purchased against there Loans.

(a) Term loans from banks are secured as follows:-

( i ) 1st pari passu charge :- Hypothecation of entire fixed assets of the Company (both present and future) including equitable mortage. ( ii ) 2nd pari passu charge:- Hypothecation of stocks of raw material, stock in process and finished goods, receivables/ book debts and other current assets (both present and future).

4. Vehicle loans are secured against the vehicles financed by them.

Details of Security for working Capital Borrowing

Working capital borrowing from banks are secured as follows

1. First Pari-Passu Charge: Hypothycation of stock of Raw material, stock in Process and finished Goods receivable/ books debts and other current assets (both Present and Future)

2. Pari Passu Charges: Hypothycation of Entire fixed assets of the company (both Present and future including equitable mortage PNB Loans repayable on demand from banks are secured by way of pledge of Sugar Stock and hypothecation of stock of store and spare, packing materials and molasses first charge on all present and future finished goods, work-in-progress, raw materials gurantee if tge Managing Director of the Company,

3. Working Capital Borrowings from Banks are repayable on demand.

NOTE - 33 Contingent liabilities and commitments (to the extent not provided for) No Cash outflow is expected
Particulars	For the Year Ended 31/Mar/2024	For the Year Ended 31/Mar/2023
A Contingent Liabilities i Claims not acknowledged as debts 1999-2000 to 2003-2004 Cases Related to Purhcase Tax Demand 2004-2005 to 2011-2012 Cases Related to Purhcase Tax Demand Sales Tax Demand Damages & Interest under EPF Act in respet of Assets purchased of Mukerian Paper Ltd.	847.49 5.67	92.95 847.49 5.67
ii Bank Guarantee issued in favour of others * Bank Guarantee issued	-	500.00 10.04
	853.16	1,456.16
B Comitments i Estimated amount of contracts remaining to be executed on capital account and not provided for (net of Advances)	-	25.00
	-	25.00

The Company has deposited Rs. 9342000/- under protest with Cane VAT Sales Tax Department.

* The Company has given corporate guarantee of Rs.500 Lakhs to State Bank of India in respect of loan taken by Company''s Related Party.

Note:- Fair Value hierarchy

The fair value of the financial assets and financial liabilities are included at the amount at which the instrument could not be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

Fair value of cash and cash equivalents, bank balances other than cash and cash equivalents, trade and other receivables, loans and other current financial assets, short term borrowings from banks and financial institutions, trade and other payables and other current financial liabilities approximate their carrying amounts due to the short term maturities of these instruments.

b. All the Current assets, loans and advances, in the opinion of the Board, have a value on realization which in the ordinary course of business shall at least be equal to the amount at which it is stated in the balance sheet.

c. The code on Social security,2020 (code) relating to employee benefits during employment and post-employment benefits received Presidential assents in September 2020. The code has been published in the Gazette of India. The code would impact the contributions by the Company towards provident fund and Gratuity. However, the date on which code will come into effect has not been notified. The Company will complete its evaluation and will give appropriate impact in the financial statements in the period in which, the code becomes effective and the related rules to determine the financial impact are published.

d. In terms of Ind AS 36 on impairment of assets, there was no impairment indicators exist as of reporting date as per the internal management estimates done and hence no impairment charge is recognized during the year under review.

e. Employee Benefits

As per Indian Accounting Standard-19 "Employees Benefits" the disclosures of employees benefits are as follows:

Defined Contribution Plan:

Employee benefits in the form of provident fund are considered as defined contribution plan. The contribution to the respective fund is made in accordance with the relevant statute and are recognized as expense when employees have rendered service entitling them to the contribution, the contribution to defined contribution plan, recognized as expense in the Statement of Profit and Loss are as under:

Gratuity

The gratuity plan is governed by the payment of Gratuity Act 1972, under the said Act an employee who has completed five years of service is entitled to specific benefit. The gratuity plan provides a lump sum payment to employees at retirement, death, incapacitation or termination of employment. The level of benefits provided depends on the member''s length of service and salary at retirement age.

Note No. 35 - Financial Risk Framework

The Company''s financial liabilities comprise borrowings, capital creditors and trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets include Loans, trade and other receivables, cash and cash equivalents The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management overseas the management of these risks. The Company''s senior management provides assurance that the company''s financial risks activities are governed by appropriate policies and risk objectives. All derivative activities for risk management purpose are carried out by teams that have appropriate skills, experience and supervision. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below:

A. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market price. Market risk comprises three types of risk interest rate risk, currency risk and other risks, such as regulatory risk and commodity price risk.

i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company''s exposure to the risk of changes in market interest rates relates primarily to the company''s borrowing obligations with floating interest rates.

ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates, the company''s exposure to the risk of changes in foreign exchange rates relates primarily to the exports made by the company However the company has not made any export during the year

Sensitivity

1% increase or decrease in foreign exchange rates will have no material impact on profit

B. Credit risk

Credit risk refers to the risk of default on its contractual terms or obligations by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables which are typically unsecured. Credit risk on cash and bank balances is limited as the company generally invests in deposits with banks and financial institutions with high credit ratings assigned by credit rating agencies. The company assesses the creditworthiness of the customers internally to whom goods are sold on credit terms in the normal course of business. The credit limit of each customer is defined in accordance with this assessment. The impairment analysis is performed on client to client basis for the debtors that are past due at the end of each reporting date. The company has not considered an allowance for doubtful debts in case of Trade receivables that are past due but there has not been a significant change in the credit quality and the amounts are still considered recoverable.

C. Liquidity risk

i) Liquidity Risk Management

The financial liabilities of the company include loans and borrowings, trade and other payables. The company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The company monitors its risk of shortage of funds to meet the financial liabilities using a liquidity planning tool. The company plans to maintain sufficient cash to meet the obligations as and when falls due.

ii) Maturities of financial liabilities

The table below provides undiscounted cash flows towards financial liabilities into relevant maturity based on the remaining period at the balance sheet to the contractual maturity date.

Note No.: 36 - Capital Management

a) Risk Management

The capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the company. The primary objective of the company''s capital management is to maintain optimum capital structure to reduce cost of capital and to maximize the shareholder value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants which otherwise would permit the banks to immediately call loans and borrowings. In order to maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

b) Loan Covenants:

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest bearing loans and borrowing that define capital structure requirements. The company has compiled with these covenants and there have been no breaches in the financial covenants of any interest - bearing loans and borrowings.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31^st March 2024 and 31^st March, 2023.

a. The Company have used the borrowings from banks for the specific purpose for which they were taken from banks.

b. The Company has not been declared willful defaulter by bank or financial institution or any other lender during the year.

c. The company does not have any transactions or balances with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during the year and previous year.

d. During the year, there are no instances of any registration, modification or satisfaction of charges which are pending for registration with Registrar of Companies beyond the statutory period.

e. The Company have no layer of companies, Company is in compliance with the relevant provisions of the Companies Act,2013 with respect to the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017

Note No. 38

The previous year figures have been reworked, regrouped, rearranged and reclassified wherever necessary. The figures are rounded off to nearest rupee in lakhs up to two decimals.

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Mar 31, 2018

Note 1. Corporate information

Indian Sucrose Limited (“the Company”) is a public ltd company domiciled in India and incorporated on 12 December, 1990 under the provisions of the Companies Act, 1956. The shares of the company are listed on stock exchanges in India i.e. at Bombay Stock Exchange Limited (BSE). The company is engaged in the manufacturing and selling of Sugar and Molasses. The company caters to domestic and international market.

The registered office of the company is situated at the complex of Indian Sucrose Limited, G. T. Road, Mukerian, Distt.- Hoshiarpur - 144211, Punjab.

The financial statements are approved for issue by the Company’s Board of Directors on 30th May, 2018.

a. Rights, preferences and restrictions attached to equity shares

The company presently has one class of equity shares having a par value of Rs.10/- each. Each holder of equity shares is entitled to one vote per share.

The dividend if proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts.

The distribution will be in proportion to the number of equity shares held by the shareholders.

The company has not declared dividend during the year ended March 31, 2018

Rights attached to preference shares

The company has not issued preference shares during the current and previous year.

b. The details of equity shareholders holding more than 5% of the aggregate equity shares

*There are 434750 calls unpaid (Previous Year 434750) including calls unpaid by Directors and Officers as on balance sheet date

c. There is no shares issued without payment being received in cash during the last five year.

d. There is no buy back of equity shares during the last five year.

e. There is no bonus shares issued during the last five year.

f. There is no holding / ultimate holding company of the company.

Nature and purpose of reserve Capital reserve:

The excess of net assets taken, over the cost of consideration paid, were treated as capital reserve in accordence with previous GAAP.

Securities premium account:

The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. It can be utilized in accordance with the provisions of the Act, to issue bonus shares, to provide for premium on redemption of shares or debentures, write-off equity related expenses like underwriting costs etc

Retained earnings:

Retained earnings if any represents the net profits after all distributions and transfers to other reserves.

Remeasurements of defined benefit liability/(asset):

Remeasurements of defined benefit liability/(asset) comprises actuarial gains and losses and return on plan assets (excluding interest income).

2- First time adoption of IND AS

This financial statement is the first financial statement that has been prepared in accordance with Ind AS together with the comparative period data as at and for the year ended 31st March 2017, as described in the summary of significant accounting to Ind AS has been carried out in accordance with Ind. AS 101 “First time adoption of Indian Accounting Standards” with 1st April 2016 as transition date. This note explains the exemptions availed by the company if any on first time adoption of Ind AS and principal adjustments made by the Company in restating its Indian GAAP financial statements as at 1st April 2016 and financial statements as at and for the year ended 31st March 2017 in accordance with Ind AS 101.

Exemptions applied

Ind AS 101 allows first time adopters certain exemptions from the retrospective application of certain requirements under Ind. AS. The company has, accordingly, applied following exemptions:

The company has elected to continue with the carrying value of all items of its property, plant and equipment and intangible assets measured as per Indian GAAP as recognized in the financial statements as at the date of transition, as deemed cost at the date of transition. The effect of consequential changes arising on the application of other Ind. AS has been adjusted to the deemed cost of Property, Plant and Equipment. The company has availed the exemption of fair value measurement of financial assets or liabilities at initial recognition and accordingly will apply fair value measurement of financial assets or liabilities at initial recognition prospectively to transactions entered into on or after 1st April 2016. The estimates as at 1st April 2016 and at 31st March 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from the following items under Indian GAAP did not require estimation: Fair values of Financials Assets and Financial Liabilities Impairment of financial assets based on expected credit loss modal

Discount rates

The estimates used by the company to present these amounts in accordance with Ind AS reflect conditions as at 1st April 2016 and 31st March 2017.

Notes to the reconciliation of equity as at 1st April 2016 and 31st March 2017 and total comprehensive income for the year ended

1. Fair valuation of Investments

Under previous GAAP, investments in shares were classified as long term investments or current investments based on the intended holding period and realisability. Long tern investments were classified at cost less provision for temporary diminution in the value of investments. Current investments were carried at lower of cost and fair value. Ind AS requires such investments to be measured at fair value.

Accordingly, the company has designated such investments as investments measured at Fair value through Other Comprehensive Income (FVTOCI) in accordance with Ind AS. The difference between the instrument’s fair value and carrying amount as per Indian GAAP has been recognized in retained earnings. This has resulted in increase in retained earnings by Rs.61576271/- as at 1st April 2016 and decrease in retained earnings by Rs.983375/- as at 31st March 2017.

2. Financial Liabilities 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 subsequently measured at amortized cost are determined based on the effective interest method.

The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash flow payments (including all fees paid or, received that form an integral part of the effective interest rate, transaction cost 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.

3. Statement of cash flows

The transition from Indian GAAP to Ind AS has had no material impact on statement of cash flows.

4 Deferred tax

Under the previous GAAP, deferred tax was recognized for the temporary timing differences which focus on differences between taxable profits and accounting profits for the period. Ind AS requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an assets or liability in the balance sheet and its tax base. Further, the application of Ind AS has resulted in recognition of certain temporary differences which was not required under Indian GAAP. Accordingly, deferred tax adjustments have been recognized in correlation to the underlying transactions in retained earnings/OCI in accordance with Ind AS. This has resulted decrease in retained earnings by Rs.87680415/- on 1st April 2016 and increase in retained earnings of Rs.518232/- as at 31st March 2017 with corresponding adjustment in Deferred Tax Liability/(Asset).

Note:

The Figures of previous GAAP have been reclassified to confirm to presentation requirements of Division II of Schedule III of Companies Act,2016 as applicable to a company whose financial statements are required to be drawn up in compliance of the companies (Indian Accounting Standards) Rules, 2015

3-Related Party Disclosures:-

In Accordance with the Requirements of Ind AS 24, on Related party disclosures, Name of the Related party, Related party Relationship, transaction and outstanding balances including commitments where control exits and with whom transactions have takes place during reported Periods are:

Relates Party and Their Relation ship (a) Key Management Personnel

(b) Details relating to related party where control exists

(c) Other related parties where transaction have taken place during the year

(d) Relative of Key Management Personnel: N.A.

(e) Enterprise significantly influenced by Directors and /or their relatives :-

I. Cosmos Industries Ltd.

ii. Yadu Sugar Limited

iii. Scorpion Media Pvt. Ltd.

4-Financial Risk Management

The financial assets of the company include investments, loans, trade and other receivables, and cash and bank balances that derive directly from its operations. The financial liabilities of the company, other than derivatives, include loans and borrowings, trade and other payables and the main purpose of these financial liabilities is to finance the day to day operations of the company. The company is mainly exposed to the following risks that arise from financial instruments:

(i) Market risk

(ii) Liquidity risk

(iii) Credit risk

The Company’s senior management oversees the management of these risks and that advises on financial risks and the appropriate financial risk governance framework for the Company.

This note explains the risks which the company is exposed to and policies and framework adopted by the company to manage these risks:

(i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise two types of risk: foreign currency risk and interest rate risk.

(a) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates.

As the Company has no significant interest-bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates, which are included in interest bearing loans and borrowings in these financial statements if any. All the company’s fixed rate borrowings are carried at amortized cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

At the reporting date the interest rate profile of the Company’s interest bearing financial instrument is at its fair value:

(ii) Liquidity Risk

The financial liabilities of the company include loans and borrowings, trade and other payables. The company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations.

The company monitors its risk of shortage of funds to meet the financial liabilities using a liquidity planning tool. The company plans to maintain sufficient cash to meet the obligations as and when falls due.

The below is the detail of contractual maturities of the financial liabilities of the company at the end of each reporting period:

(iii) Credit Risk

Credit risk refers to the risk of default on its contractual terms or obligations by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables which are typically unsecured. Credit risk on cash and bank balances is limited as the company generally invests in deposits with banks and financial institutions with high credit ratings assigned by credit rating agencies.

The company assesses the creditworthiness of the customers internally to whom goods are sold on credit terms in the normal course of business. The credit limit of each customer is defined in accordance with this assessment. The impairment analysis is performed on client to client basis for the debtors that are past due at the end of each reporting date. The company has not considered an allowance for doubtful debts in case of Trade receivables that are past due but there has not been a significant change in the credit quality and the amounts are still considered recoverable.

The following is the detail of revenues generated from top five customers of the company and allowance for lifetime expected credit loss:

Write off policy

The financials assets are written off in case there is no reasonable expectation of recovering from the financial asset.

5.Capital Management

The capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the company. The primary objective of the company’s capital management is to maintain optimum capital structure to reduce cost of capital and to maximize the shareholder value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants which otherwise would permit the banks to immediately call loans and borrowings. In order to maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company’s gearing ratio was as follows:

Further, there have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

There were no changes in the objectives, policies or processes for managing capital during the year ended 31 March 2018 and 31 March 2017.

6. In accordance with the Ind AS-36 on Impairment of Assets, the Company has assessed as on the balance sheet date, whether there are any indications with regard to the impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of account.

7. The company is not maintaining separate details of amounts outstanding to Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act). Accordingly, no details are being provided.

8. In accordance with IND AS 18 on “Revenue” and Schedule III to the Companies Act, 2013, Sales for the previous year ended 31 March 2017 and for the period 1 April to 30 June 2017 were reported gross of Excise Duty and net of VAT/ CST. Excise Duty was reported as a separate expense line item. Consequent to the introduction of Goods and Services Tax (GST) with effect from 1 July 2017, VAT/CST, Excise Duty etc. have been subsumed into GST and accordingly the same is not recognized as part of sales as per the requirements of Ind AS 18. This has resulted in lower reported sales in the current year in comparison to the sales reported under the pre-GST structure of indirect taxes. With the change in structure of indirect taxes, certain expenses where credit of GST is available are also being reported net of taxes

9. Corporate Social Responsibility (CSR)

The provisions of Section 135 of the Companies Act 2013 regarding Corporate Social Responsibility activity are applicable to the company.

10. Figures in bracket indicate deductions.

11. Previous year figures have been regrouped/re-casted/rearranged wherever necessary to confirm to its classification of the current year.

Amount Recognized Rs 2873061.00

12. Figures have been rounded off to the nearest rupee.

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Mar 31, 2016

Terms & Condition of Cash Credit Loan Security Clause

1) Cash credit limit is secured by way of pledge of sugar stocks and hypothecation of stocks of stores, Packing material and of Molasses.

2) Cash credit limits taken from Punjab National Bank are further secured by way of first charge on company''s immovable properties situated at Mukerian, Distt Hoshiarpur, Punjab.

3) Cash credit limit are also secured by way of personal guarantees of three directors of the company

4. The figures have been rounded off to the nearest rupee.

5. The previous year''s figures have been regrouped and reclassified, wherever necessary, to make them comparable.

6. All the current assets, loans and advances in the opinion of the Board, have a value on realization, which in the ordinary course of business shall at least be equal to the amount at which it is stated in the Balance Sheet.

7. Balances of sundry debtors, Loans & Advances ( Long & Short term), Trade payables, Borrowings (secured & unsecured) and advances from customers etc are subject to confirmation/reconciliation. The management does not expect any material discrepancy affecting the current year financial results.

8. Registrations in respect of part of Land & Building appearing under fixed assets schedule is pending amounting to Rs. 21,62,50,000/-.

9. The company has entered into PPA agreement with Punjab State Power Corporation Limited for supply of power. As per the terms of the agreement, PSPCL has raised dues of Rs. 2,89,57,333/towards defaulting amount, (Shown as Recoverable from PSPCL)

In view of the above, PPA agreement, the company is of the opinion that no further dues will be payable to Punjab State Power Corporation Limited on any earlier account.

10. Contingent Liability in respect of:

i) Sale Tax demand of Rs. 11,19,000/- ( Previous year

11,19,000/-), no provision is made against such liability as management has been advised that full relief may be given at appellate level.

ii) A liability of Rs 92,95,485/- was raised by the Sales Tax Department towards purchase tax for the years 1999-2000 to 2003-2004.

For F/Y 2004-05 and from F/Y 2006-07 onwards with the introduction of VAT, company do not foresee any such liability. However, if such liability still arises it will be to the tune of Rs. 14,63,50,054/- for the financial year 2004-05and from 2006-07 to 2013-14.

- Sale Tax demand of Rs. 5,67,489/- pertaining to financial 1997-98.

iii) The company has deposited Rs. 1,49,50,000/- under protest with sales Tax Department as stated at sr no ii (above) and 100% demand of 29,21,600/-(under protest) towards PSECL raised by Electricity Board in respect of Service Charges.

iv) Company has given corporate guarantee of Rs. 13.69 Crore to State Bank of India in respect of loan taken by Co''s Associate concern Rangar Breweries Ltd.

v) The company has given third party guarantee to the banks to the tune of Rs95.51 crores outstanding as on 31.03.2016 towards loan to farmers under Tri-party Agreement.

11. The Company has distributed Agro inputs valuing Rs4,41,41,951/-(previous year Rs 4,35,47,208/-) for the development of sugarcane''s cultivation in its reserved zone at subsidized price of Rs4,15,03,392/-(Previous year Rs 3,78,53,536/- ). The net difference of Rs 26,38,559/- (Previous year Rs 56,93,672/-) has been included under the Cane development expenses and accordingly charged to Profit & Loss Account.

12. In accordance with the Accounting Standard AS -28 ''Impairment of Assets''issued by by The Institute of Chartered Accountants of India, the company has carried out an exercise to ascertain the impairment, if any, in the company value of its fixed assets. However, no such case found.

13. As per the Accounting Standard (AS) - 17 on Segment Reporting issued by The Institute of Chartered Accountants of India, presently there is only one reportable segment i.e. sugar.

14. Prior period item (net) amounting to Rs 1,89,898/-(previous year Rs (20,59,609/-) include:-

15. Sundry Debtor includes a sum of Rs. 70,39,785/- (previous year Rs. 3,09,76,686/-) due from a associates Company.

16. Pursuant to Accounting Standard (AS)-15 (Revised 2005) “Employee Benefits”, the disclosure of employees benefits are given below :-

I) Defined Contribution Plan and amount recognized in Profit and Loss Account

- Employer''s Contribution to provident fund Rs. 38,28,758/-

II) Defined Benefit Plan

- Employee benefits in respect of Gratuity and Leave Encashment are based on Actuarial Valuation as on 31st March 2016. The details are given below:-

17. The company is in process of identifying its suppliers as Micro, Small and Medium Enterprises as defined under the “Micro, Small and Medium Enterprises Development Act 2006”. However the company has not received any intimation/communication from their suppliers regarding applicability of this act to them. Therefore no such disclosure under the said act has been furnished.

18. Related Party Disclosures:-

a) Detail relating to related party

Parties where control exists Yadu Resorts India Limited

b) Other related parties where transaction have taken place during the year

i) Subsidiary Company: - Nil

ii) Associates Company: - Ranger Breweries Limited

c) Key Management Personnel

Kunal Yadav Managing Director (DIN-01338110)

Kunj Deep Kalra Director (DIN-05285059)

Rishav Jaiswal Company Secretary (M. No.-A38834)

Ravinder Sharma Chief Financial Officer

d) Relative ofKey Management Personnel:NIL

e) Enterprise significantly influenced by Directors and /or their relatives :-

Cosmos Industries Ltd.

Yadu Sugar Limited

Scorpion News Communication Pvt. Ltd.

Scorpion Media Pvt. Ltd.

Top-Images Estates Pvt. Ltd.

*Figures in ( ) is representing previous year figures.

19. The company is holding more than 20% of the paid up share capital of the Ranger Breweries Ltd. Therefore, this company is an Associate Company. The financial statements of Ranger Breweries Ltd. as on 31/03/2016 are yet to be finalized. Accordingly, the company has not prepared the consolidated financial statements in accordance with the provisions of ScheduleIII of the Companies Act, 2013 in terms of Clause 6 of the Companies ( Accounts ) Rules, 2014.43. Opening Balance under the head Amount Recoverable From Oswal Papers& Allied Industries Rs. 4986104/- has been written off during the year.

20. Total TDS default of Rs. 46140/-as per Traces represents the default of earlier years either on account of short deduction or Interest on account of delay in deposit / deduction.

21. The company had issued 7,00,000 cumulative 6% preference shares of Rs.100 each in Jan 2011, which were due for conversion in the month of Jan,2016 into equity shares at a premium of Rs.4 each. These shares are yet to be converted into equity shares.

22. The company has neither paid nor credited any dividend on cumulative preference shares since the date of issue

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Mar 31, 2015

1. The figures have been rounded off to the nearest rupee.

2. The previous year's figures have been regrouped and re- classified, wherever necessary, to make them comparable.

3. The previous year figures in the financial statements are not comparable against the current year figures since the previous year statements have been prepared for the 6 months period ending 31.03.2014 as against the Current year statements which has been prepared for the 12 month period ended 31.03.2015.

4. All the current assets, loans and advances in the opinion of the Board, have a value on realization, which in the ordinary course of business shall at least be equal to the amount at which it is stated in the Balance Sheet.

5. Balances of sundry debtors, creditors and advances are subject to confirmation /reconciliation. The management does not expect any material discrepancy affecting the current year financial results.

6. Registrations in respect of part of Land & Building appearing under fixed assets schedule is pending amounting to Rs. 21,62,50,000/-.

7. The company has entered into PPA agreement with Punjab State Power Corporation Limited for supply of power. As per the terms of the agreement, PSPCL has raised dues of Rs. 2,89,57,333/- towards defaulting amount, (Shown as Recoverable from Mukerian Paper Limited)

In view of the above, PPA agreement, the company is of the opinion that no further dues will be payable to Punjab State Power Corporation Limited on any earlier account.

8.. Contingent Liability in respect of:

i) Sale Tax demand of Rs. 11,19,000/- (Previous year 11,19,000/-), no provision is made against such liability as management has been advised that full relief may be given at appellate level.

ii) A liability of Rs 92,95,485/- was raised by the Sales Ta x Department towards purchase tax for the years 1999-2000 to 2003-2004.

For F/Y 2004-05 and from F/Y 2006-07 onwards with the introduction of VAT, company do not foresee any such liability. However, if such liability still arises it will be to the tune of Rs. 14,63,50,054/- for the financial year 2004-05 and from 2006-07 to 2013-14.

- Sale Tax demand of Rs. 5,67,489/- pertaining to financial 1997- 98.

iii) The company has deposited Rs.1,49,50,000/- under protest with sales Tax Department as stated at sr no ii (above) and 100% demand of 29,21,600/-(under protest) towards PSECL raised by Electricity Board in respect of Service Charges.

iv) Company has given corporate guarantee of Rs.13.69 Crore to State Bank of India in respect of loan taken by Co's Associate concern Rangar Breweries Ltd.

v) The company has given third party guarantee to the banks to the tune of Rs 103.00 crores outstanding as on 31.03.2015 towards loan to farmers under Tri-party Agrrement.

36. The Company has distributed Agro inputs valuing Rs 4,35,47,208/- (previous year Rs 66,55,222/-) for the development of sugarcane's cultivation in its reserved zone at subsidized price of Rs 3,78,53,536/- (Previous year Rs 58,65,974/- ). The net difference of Rs 56,93,672/- (Previous year Rs 7,89,247/-) has been included under the Cane development expenses and accordingly charged to Profit & Loss Account.

9. In accordance with the Accounting Standard AS –28 'Impairment of Assets' issued by by The Institute of Chartered Accountants of India, the company has carried out an exercise to ascertain the impairment, if any, in the company value of its fixed assets. However, no such case found.

10. As per the Accounting Standard (AS) 17 on Segment Reporting issued by The Institute of Chartered Accountants of India, presently there is only one reportable segment i.e. sugar.

11. Sundry Debtor includes a sum of Rs Nil (previous year Rs. 3,09,76,686/-) due from a associates Company.

12. Pursuant to Accounting Standard (AS)-15 (Revised 2005) "Employee Benefits", the disclosure of employees benefits are given below :- I) Defined Contribution Plan and amount recognized in (Rs.)

Profit and Loss Account

- Employer's Contribution to provident fund 37,74,451/- II) Defined Benefit Plan

- Employee benefits in respect of Gratuity and Leave Encashment are based on Actuarial Valuation as on 31st March 2015. The details are given below:-

13. The company is in process of identifying its suppliers as Micro, Small and Medium Enterprises as defined under the "Micro, Small and Medium Enterprises Development Act 2006". However the company has not received any intimation/communication from their suppliers regarding applicability of this act to them. Therefore no such disclosure under the said act has been furnished.

14. Legal & Professional charges include Rs.1.20 Crore paid on account of professional consultancy in relation to pending purchase tax case.

15. Financial Statements shows that Amount Recoverable From Oswal Papers & Allied Industries Rs. 4986104/- but no suit filed against the Company and Company is also in Liquidation.

16. Total TDS default of Rs. 1890750/- includes Current Year Default of Rs. 134914/- i.e. 129131/- for Short Deduction and 5783/- on account of Interest on Deduction Default u/s 201.

---

Mar 31, 2014

1. The figures have been rounded off to the nearest rupee.

2. The previous year''s figures have been regrouped and re-classified, wherever necessary, to make them comparable.

3. The previous year figures in the financial statements are not comparable against the current year figures since the current year statements have been prepared for the 6 months period ending 31.03.2014 as against the previous year statements which has been prepared for the 12 month period ended 30.09.2013.

4. All the current assets, loans and advances in the opinion of the Board, have a value on realization, which in the ordinary course of business shall at least be equal to the amount at which it is stated in the Balance Sheet.

5. Balances of sundry debtors, creditors and advances are subject to confirmation /reconciliation. The management does not expect any material discrepancy affecting the current year financial results.

6. Registrations in respect of part of Land & Building appearing under fixed assets schedule is pending.

7. The company has entered into PPA agreement with Punjab State Power Corporation Limited for supply of power. As per the terms of the agreement, PSPCL has raised dues of Rs.2,89,57,333/- towards defaulting amount, (Shown as Recoverable from Mukerian Paper Limited)

In view of the above PPA agreement, the company is of the opinion that no further dues will be payable to Punjab State Power Corporation Limited on any earlier account.

8. Contingent Liability in respect of:

i) Sale Tax demand of Rs.11,19,000/- ( Previous year 11,19,000/- ), no provision is made against such liability as management has been advised that full relief may be given at appellate level.

ii) A liability of Rs.1,19,63485/- was raised by the Sales Tax Department towards purchase tax for the years 1999-2000 to 2003-2004.

For F/Y 2004-05 and from F/y 2006-07 onwards with the introduction of VAT, company do not foresee any such liability. However, if such liability still arises it will be to the tune of Rs.16,43,07,575/- for the financial year 2004-05and from 2006-07 to 2013-14.

- Sale Tax demand of Rs.5,67,489/- pertaining to financial 1997-98.

iii) Bank guarantee against principal amount of Sugarcane Development Fund Rs.NIL (Previous year Rs.3,60,00,000/).

iv) The company has deposited Rs.2,00,000/- under protest is pending with CESTAT, New Delhi. Demand raised by department Rs.13,72,569/-

9. The Company has distributed Agro inputs valuing Rs.66,55,222/- (previous year Rs.2,25,83,307/-) for the development of sugarcane''s cultivation in its reserved zone at subsidized price of Rs.58,65,975/- (Previous year Rs.1,85,04,054/- ). The net difference of Rs.789,247/- (Previous year Rs.40,79,253/-) has been included under the Cane development expenses and accordingly charged to Profit & Loss Account.

10. In accordance with the Accounting Standard AS -28 ''Impairment of Assets'' issued by by The Institute of Chartered Accountants of India, the company has carried out an exercise to ascertain the impairment, if any, in the company value of its fixed assets. However, no such case found.

11. Current Liabilities also includes Rs.28,91,57,202/- (Previous year Rs.51,73,64,265/-) against amount pending to be disbursed to farmers, being Net of Rs.113,71,90,656/- being loan to farmer from Schedule Banks under scheme for loan to farmers against Sugar Cane Receivables wherein the Company is acting as ''Managing Agent /Facilitator''.

12. As per the Accounting Standard (AS) - 17 on Segment Reporting issued by The Institute of Chartered Accountants of India, presently there is only one reportable segment i.e. sugar.

13. Prior period item (net) amounting to Rs.22,67,708/- (previous year Rs.3,15,733/-) include:-

14. Sundry Debtor includes a sum of Rs.3,09,76,686/- (previous year Rs.96,77,686/-) due from a associates Company.

15. Pursuant to Accounting Standard (AS)-15 (Revised 2005) "Employee Benefits", the disclosure of employees benefits are given below :-

I) Defined Contribution Plan and amount recognized in (Rs.) Profit and Loss Account

- Employer''s Contribution to provident fund 19,76,774/-

II) Defined Benefit Plan

-Employee benefits in respect of Gratuity and Leave Encashment are based on Actuarial Valuation as on 31st March 2014. The details are given below:-

16. The company is in process of identifying its suppliers as Micro, Small and Medium Enterprises as defined under the "Micro, Small and Medium Enterprises Development Act 2006". However the company has not received any intimation/communication from their suppliers regarding applicability of this act to them. Therefore no such disclosure under the said act has been furnished.

17. Legal & Professional charges include Rs.0.83 Crore paid on account of professional consultancy in relation to pending purchase tax case (pending at Supreme Court).

18. Related Party Disclosures

a) Detail relating to related party Parties where control exists Yadu Resorts (India) Limited

b) Other related parties where transaction have taken place during the year

i) Subsidiary Company :- NIL

ii) Associates Company :- Rangar Breweries Limited

c) Key Management Personnel

Sh. Dharampal Singh Non-Executive Director

Sh. Kunal Yadav Chairman & Managing Director

Sh. Jitender Singh Non-Executive Director

d) Relative of Key Management Personnel : NIL

e) Enterprise significantly influenced by Directors and /or their relatives Cosmos Industries Ltd.

Yadu Sugar Limited

Scorpion New Communication Pvt. Ltd.

Scorpion Media Pvt. Ltd.

Top-Images Estates Pvt. Ltd.

---

Sep 30, 2013

1. The fgures have been rounded off to the nearest rupee.

2. The previous year''s fgures have been regrouped and re-classifed, wherever necessary, to make them comparable.

3. The previous year fgures in the fnancial statements are not comparable against the current year fgures since the current year statements have been prepared for the 12 months period ending 30.09.2013 as against the previous year statements which has been prepared for the 18 month period ended 30.09.2012.

4. All the current assets, loans and advances in the opinion of the Board, have a value on realization, which in the ordinary course of business shall at least be equal to the amount at which it is stated in the Balance Sheet.

5. Balances of certain sundry debtors, creditors and advances are subject to confrmation /reconciliation. The management does not expect any material discrepancy affecting the current year fnancial results.

6. Registrations in respect of part of Land & Building appearing under fxed assets note, is pending.

7. The company has entered into PPA agreement with Punjab State Power Corporation Limited (PSPCL) for supply of power. As per the said agreement, PSPCL has raised dues of:- 2,89,57,333 towards defaulting amount, (Shown as Recoverable from Mukerian Paper Limited in current fnancial statements) - 49,23,000/- towards Cost of bay, (Capitalised and shown under Fixed Asset) - 2,24,74,582/- towards Cost of transmission line (Capitalised and shown under Fixed Asset)

In view of the above PPA agreement, the company is of the opinion that no further dues will be payable to Punjab State Power Corporation Limited on any earlier account.

In light of the above agreement and in the absence of any confrmation of the security deposit of - 28,54,233/- appearing in our books of accounts with Punjab State Electricity Board, the same has been written off.

8. Contingent Liability in respect of:

i) Sales tax demand of -11,19,000 (Previous year 11,19,000), no provision is made against such liability as management has been advised that full relief may be given at appellate level.

ii) - A liability of - 1,19,63,485/- was raised by the Sales Tax Department towards purchase tax for the years 1999-2000 to 2003-2004.

For FY 2004-05 and from F/y 2006-07 onwards with the introduction of VAT, company do not foresee any such liability. However, if such liability still arises it will be to the tune of -12,64,36,638/- for the fnancial year 2004-05 and from 2006-07 to 2012-13.

- Sale Tax demand of Rs. 5,67,489/- pertaining to fnancial year 1997-98.

iii) Bank guarantee against principal amount of Sugarcane Development Fund -3,60,00,000/- (Previous year -2,00,00,000/-).

iv) The company has deposited -8,00,000/- under protest under the order of H''ble High Court Chandigarh towards Service Tax, at present the appeal is pending with the CESTAT, Chandigarh.

9. The company had acquired Mukerian paper mill from ARCIL.in an auction which was challenged by the defaulting party. The Punjab and Haryana High Court has decided the said case in favor of the company. However, it is pending at the supreme court level.

10. Provident fund which were pending at appellate level have been settled at 5,84,200/- The same have been charged to fnancial statements.

11. The Company has distributed Agro inputs valuing - 2,25,83,307/-(previous year - 3,09,46,450/-) for the development of sugarcane''s cultivation in its reserved zone at subsidized price of - 1,85,04,054/-(Previous year - 2,65,62,905/-). The net difference of - 40,79,253/-(Previous year - 43,83,545/-) has been included under the Cane development expenses and accordingly charged to Proft & Loss Account.

12. In accordance with the Accounting Standard AS –28 ''Impairment of Assets'' issued by by The Institute of Chartered Accountants of India, the company has carried out an exercise to ascertain the impairment, if any, in the company value of its fxed assets. However, no such case found.

13. Current Liabilities also includes -51,73,64,265/- (Previous year -86,01,08,820/- ) being Net of -56,43,25,235/- being loan to farmer from Schedule Banks under scheme for loan to farmers against Sugar Cane Receivables wherein the Company is acting as ''Managing Agent /Facilitator''.

14. As per the Accounting Standard (AS) – 17 on Segment Reporting issued by The Institute of Chartered Accountants of India, presently there is only one reportable segment i.e. sugar.

15. Sundry Debtor includes a sum of -3,96,77,686/- ( previous year -5,37,07,686/- ) due from a associate Company.

16. The company is in process of identifying its suppliers as Micro, Small and Medium Enterprises as defned under the "Micro, Small and Medium Enterprises Development Act 2006". However the company has not received any intimation/communication from their suppliers regarding applicability of this act to them. Therefore no such disclosure under the said act has been furnished.

17. RELATED PARTY DISCLOSURES

In accordance with the requirements of Accounting Standard (AS) -18 on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India, the names of the related parties where control exists and with whom transactions have taken place during the period and description of relationship as identifed and certifed by the management are:

---

Sep 30, 2012

1. The fgures have been rounded off to the nearest rupee.

2. The previous year''s fgures have been regrouped and re-classifed, where ever Necessary, Since the current period consist of 18 months therefore, the fgures of previous year being 12 months are not comparable.

3. All the current assets, loans and advances in the opinion of the Board, have a value on realization, which in the ordinary course of business shall at least be equal to the amount at which it is stated in the Balance Sheet.

4. Balances of certain sundry debtors, creditors and advances are subject to Confrmation /reconciliation. The management does not expect any material discrepancy affecting the current year fnancial results.

5. During the year the company has extended the period of Balancesheet to se

6. Other income includes NIL (Previous year Rs.59.20 Lakhs) as income against Levy sugar rate difference and Rs. 1 Crore has been considered as income on account of penalty charged against cancellation of agreement. and Rs. 24.20 Lakhs has also been shown as income on account of commission.

7. Part of Land & Building appearing under fxed assets schedule, registration if applicable is pending.

8. Contingent Liability in respect of:

i) The Punjab State electricity board has created various demands in fnancial years ended on 31.03.1998 & 31.3.1999 aggregating to Rs.18.29 Lakhs ( previous year Rs.18.29 Lakhs) against which company has paid Rs.8.09 Lakhs under protest in earlier year, this amount of Rs.8.09 Lakhs has already been written off in the earlier year and balance amount Rs.10.20 Lakhs, in the opinion of the company is not payable.

ii) Sales tax demand of Rs.11.19 lakhs (previous year Rs.12.12 lakhs) no provision is made against such liability as management has been advised that full relief may be given at the appellate level.

iii) A liability of Rs.119.63 lakhs was raised by the Sales Tax Department towards purchase tax for the years 1999-2000 to 2003-2004. Similarly on the same basis, there may arise purchase tax liability of Rs.41.48 Lakhs for the years 2004-2005. As regards the fnancial year 2005-06 for which vat liabilities to the extent of Rs.179.19 Lakhs since been waived by the Sales Tax Authority. From F/y 2006-07 onwards with the introduction of VAT and favourable decisions in like cases by the Hon''ble courts, company do not foresee any such liability. However, if such liability still arises it will be to the tune of Rs. 1167.13 Lakhs for the fnancial year 2006-07 to 2011-12.

iv) Bank guarantee against principal amount of Sugarcane Development Fund 360.00 Lakhs (Previous year 200.00 Lakhs)

v) The company has deposited Rs. 8.00 Lakhs under protest under the order of H''ble High Court Chandigarh towards Service Tax, at present the appeal is pending with the Chief Commissioner Excise, Chandigarh.

vi) Provident fund dues of Rs. 14.36 Lakhs, pending at appellate level.

vii) Preference Dividend payable on cumulative Redeemable

Preference Shares of Rs. 75,25,000/- ( previous year 12,25,000/-)

9. Loans and Advances include Rs.28.54 Lakhs as security deposit with Punjab State Electricity Board for which in the opinion the company is refundable but the same is still pending.

10. The Company has distributed Agro inputs valuing Rs.309.46 Lakhs (previous year Rs.381.48 Lakhs) for the development of sugarcane‘s cultivation in its reserved zone at subsidized price of Rs.265.62 Lakhs (Previous year Rs.370.77 Lakhs ) The net difference of Rs.43.84 Lakhs (Previous year Rs.10.71 Lakhs) has been included under the Cane development expenses and accordingly charged to Proft & Loss Account.

11. Consequent upon AS –28 Impairment of Assets being mandatory by the Institute of Chartered Accountants of India, the company has carried out an exercise to ascertain the impairment, if any, in the company value of its fxed assets. However, no such case found.

12. Current Liabilities also includes Rs. 8324 Lakhs ( Previous year Rs. 4153 Lakhs ) being Net of Rs. 2782 lakh being loan to farmer from Schedule Banks under scheme for loan to farmers against Sugar Cane Receivables wherein the Company is acting as ‘Managing Agent /Facilitator''.

13. The business activity of the company falls within a single primary business segment viz sugar and basically sale of the product is within the country.

14. Prior period item (net) amounting to Rs.125410/- (previous year Rs.20000/- ) include:-

15. During the fnancial year 2007-08, the company has availed a Term Loan of Rs.1349 Lakhs for the payment of cane dues for the season 2006-07 and 2007-08 as per scheme for Extending fnancial assistance to Sugar Industries. A sum of NIL (Previous year Rs. 33.48 Lakhs ) on account of Interest on the aforesaid loan is pending for reimbursment by the Central Government as per scheme.

16. Short term loan & advances included amount Rs. 21,31,50,000 returnable against sale of assets.

17. Sundry Debtor includes a sum of Rs. 537.08 Lakhs ( previous year Rs.664.30 Lakhs ) due from a subsidiary Company.

18. Pursuant to Accounting Standard (AS)-15 ( Revised 2005) "Employee Benefts", the disclosure of employees benefts are given below :-

I) Defned Contribution Plan and amount recognized in Proft and Loss Account

II) Defned Beneft Plan

-Employee benefts in respect of Gratuity and Leave

Encashment are based on Actuarial Valuation as on 30th September 2012. The details are given below :

19. The company is in process of identifying its suppliers as Micro, Small and Medium Enterprises as defned under the " Micro, Small and Medium Enterprises Development Act 2006". However the company has not received any intimation/communication from their suppliers regarding applicability of this act to them. Therefore no such disclosure under the said act has been furnished.

20. RELATED PARTY DISCLOSURES

a) Detail relating to related party

Parties where control exists Yadu Resorts (India) Limited

b) Other related parties where transaction have taken place during the year

i) Subsidiary Company :- Rangar Breweries Limited

ii) Associates Company :- Nil

iii) Key Management Personnel

Mr Dharam Pal Singh Chairman

Mr Kunal Yadav Managing Director

iv) Relative of Key Management Personnel

v) Enterprise signifcantly infuenced by Directors and /or their relatives Cosmos Induestries Ltd.

21. During the year ended 31st March, 2012, the revised format of accounts was notifed by revised Schedule VI under the Companies Act, 1956. The new format has been followed for preparation and presentation of the fnancial statements. The adoption of revised Schedule VI, as aforesaid do not impact recognition and measurement principles followed for preparation of the fnancial statements. The Company has reclassifed the previous year''s fgures in accordance with the requirements applicable in the current year.

---

Mar 31, 2010

1. The figures have been rounded off to the nearest rupee.

2. The previous years figures have been regrouped and re- classified, where ever necessary, to make them comparable.

3. All the current assets, loans and advances in the opinion of the Board, have a value on realization, which in the ordinary course of business shall at least be equal to the amount at which it is stated in the Balance Sheet.

4. Balances of certain sundry debtors, creditors and advances are subject to confirmation/reconciliation. The management does not expect any material discrepancy affecting the current year financial results.

5. Other income appearing under Schedule 13 includes Rs. 102.04 Lakhs against encashment of performance bank guarantee from supplier. as a penalty clause in the contract.

6. Part of Land & Building appearing under fixed assets schedule, registration if applicable is pending.

7. Contingent Liability in respect of:

i) The Punjab State electricity board has created various demands in financial years ended on 31.03.1998 & 31.3.1999 aggregating to Rs 18.29 Lakhs ( previous year Rs 18.29 Lakhs) against which company has paid Rs 8.09 Lakhs under protest in earlier year, this amount of Rs 8.09 Lakhs has already been written off in the earlier year and balance amount Rs.10.20 Lakhs, in the opinion of the company is not payable.

ii) Sales tax demand of Rs 12.12 lakhs (previous year Rs 12.12 lakhs) no provision is made against such liability as management has been advised that full relief may be given at the appellate level.

iii) A liability of Rs 119.63 lakhs was raised by the Sales Ta x Department towards purchase tax for the years 1999-2000 to 2003-2004. Similarly on the same basis, there may arise purchase tax liability of Rs 41.48 Lakhs for the years 2004- 2005. As regards the financial year 2005-06 for which vat liabilities to the extent of Rs. 179.19 Lakhs since been waived by the Sales Tax Authority. From F/y 2006-07 onwards with the introduction of VAT and favourable decisions in like cases by the Honble courts, company do not foresee any such liability. However, if such liability still arises it will be to the tune of Rs. 680.68 Lakhs for the financial year 2006-07 to 2009-10.

iv) Bank guarantee against principal amount of Sugarcane Development Fund 160.00 Lakhs ( Previous year NIL)

v) The company has deposited Rs. 8.00 Lakhs under protest under the order of Hble High Court Chandigarh towards Service Tax, at present the appeal is pending with the Chief Commissioner Excise, Chandigarh.

vi) Provident fund dues of Rs. 14.36 Lakhs, pending at appellate level.

8. Loans and Advances include Rs 28.54 Lakhs as security deposit with Punjab State Electricity Board for which in the opinion the company is refundable but the same is still pending.

9. The Company has distributed Agro inputs valuing Rs 128.31 lakhs (previous year Rs 153.77 lakhs for the development of sugarcanes cultivation in its reserved zone at subsidized price of Rs 99.13 lakhs (Previous year Rs 107.77 lakhs ) The net difference of Rs 29.18 lakhs (Previous year Rs 46.00 lakhs) has been included under the Cane development expenses and accordingly charged to Profit & Loss Account.

10. Consequent upon AS -28 Impairment of Assets being mandatory by the Institute of Chartered Accountants of India, the company has carried out an exercise to ascertain the impairment, if any, in the company value of its fixed assets. However, no such case found.

11. Current Liabilities also includes Rs. 5039.84 Lakhs ( Previous year Rs. 2499.00 lakhs ) from Punjab National Bank under scheme for loan to farmers against Sugar Cane Receivables wherein the Company is acting as Managing Agent /Facilitator.

12 . The business activity of the company falls within a single primary business segment viz sugar and basically sale of the product is within the country.

13. During the financial year 2007-08, the company has availed a Term Loan of Rs 1349 lakhs for the payment of cane dues for the season 2006-07 and 2007-08 as per scheme for Extending financial assistance to Sugar Industries. A sum of Rs. 180.38 lakhs on account of Interest on the aforesaid loan has to be reimbursed by the Central Government as per scheme. Pending reimbursement of the said amount , the same has been included in Advance Recoverable in cash or kind in Schedule 11.

14. Advance Recoverable in cash or kind appearing under schedule 11 for Loans & Advances includes an amount aggregating Rs.2121.00 lakhs (Previous year 1034.00 lakhs) paid towards purchase of Assets of a company, where the Managing Director of the company is interested as a Director.

15. Sundry Debtor includes a sum of Rs. 746.72 Lakhs ( previous year Rs. 612.94 Lakhs) due from a subsidiary Company.

16. The company has received share application money of Rs.700 lakhs towards the issue of 700000, 6% cumulative preference share having face value of Rs.100/- each which will be convertible into equity share of Rs.10/- each at a premium of Rs.4/- each at any time after the expiry of 12 months but not later than 60 month from the date of their issue, subject to the approval of the shareholders meeting of the company.

17. Pursuant to Accounting Standard (AS)-15 (Revised 2005) "Employee Benefits", the disclosure of employees benefits are given below :-

I) Defined Contribution Plan and amount recognized in (Rs. in lakhs)

Profit and Loss Account

- Employers Contribution to provident fund 31.79

18. The company is in process of identifying its suppliers as Micro, Small and Medium Enterprises as defined under the " Micro, Small and Medium Enterprises Development Act 2006". However the company has not received any intimation/ communication from their suppliers regarding applicability of this act to them. Therefore no such disclosure under the said act has been furnished.

19. RELATED PARTY DISCLOSURES

a) Detail relating to related party Parties where control exists Yadu Resorts India Ltd.

b) Other related parties where transaction have taken place during the year

i) Subsidiary Company :- Ranger Breweries Limited

ii) Associates Company :- Nil

iii) Key Management Personnel

Mr D.P. Singh Chairman

Mr Deepak Yadav Managing Director

Mr Jitender Singh Director

Mr Pawan Dewan Director

Mr Kunal Singh Director

Mr.Sheoraj Ahlawat Director

iv) Relative of Key Management Personnel

Mrs Umlesh Yadav

v) Enterprise significantly influenced by Directors and /or their relatives

Cosmos Induestries Ltd.

Tirupati Sugars Ltd.

---

Mar 31, 2009

1. The figures have been rounded off to the nearest rupee.

2. The previous years figures have been regrouped and re- classified, where ever necessary, to make them comparable.

3. All the current assets, loans and advances in the opinion of the Board, have a value on realization, which in the ordinary course of business shall at least be equal to the amount at which it is stated in the Balance Sheet.

4. Balances of certain sundry debtors, creditors and advances are subject to confirmation/reconciliation. The management does not expect any material discrepancy affecting the current year financial results.

5. Contingent Liability in respect of:

i) The Punjab State electricity board has created various demands in financial years ended on 31.03.1998 & 31.3.1999 aggregating to Rs 18.29 Lakhs (previous year Rs 18.29 Lakhs) against which company has paid Rs 8.09 Lakhs under protest in earlier year, this amount of Rs 8.09 Lakhs has already been written off in the earlier year and balance amount Rs. 10.20 Lakhs, in the opinion of the company is not payable.

ii) Sales tax demand of Rs 12.12 lakhs ( previous year Rs 12.12 lakhs) no provision is made against such liability as management has been advised that full relief may be given at the appellate level.

iii) A liability of Rs 119.63 lakhs was raised by the Sales Tax Department towards purchase tax for the years 1999-2000 to 2003-2004. Similarly on the same basis, there may arise purchase tax liability of Rs 41.48 Lakhs for the years 2004- 2005. As regards the financial year 2005-06 onwards, with the introduction of VAT and favourable decisions in like cases by the honble courts, company do not forsee any such liability. However, if such liability still arises it will be to the tune of Rs. 754.54 lakhs for the financial year 2005-06 to 2008- 2009.

iv) Bank guarantee against principal amount of Sugarcane Development Fund NIL (Previous year Rs.108.81 lakhs)

6. Loans and Advances include Rs 28.54 lacs as security deposit with Punjab State Electricity Board for which in the opinion the company is refundable but the same is still pending.

7. The Company has distributed Agro inputs valuing Rs 153.77 lakhs (previous year Rs 98.45 lakhs for the development of sugarcanes cultivation in its reserved zone at subsidized price of Rs 138.59 lakhs (Previous year Rs 89.74 lakhs ) The net difference of Rs 15.18 lakhs (Previous year Rs 8.71 lakhs has been included under the Cane development expenses and accordingly charged to Profit & Loss Account.

8. Consequent upon AS -28 Impairment of Assets being mandatory by the Institute of Chartered Accountants of India, the company has carried out an exercise to ascertain the impairment, if any, in the company value of its fixed assets. However, no such case found.

9. Current Liabilities also includes Rs. 2499 Lakhs ( Previous year Rs. Nil ) from Punjab National Bank under scheme for loan to farmers against Sugar Cane Receivables wherein the Company is acting as Managing Agent /Facilitator and the amount Rs. 2499 Lakhs is lying in the Escrow Account as on 31st March 2009.

10. The business activity of the company falls within a single primary business segment viz sugar and basically sale of the product is within the country.

11. Prior period item (net) amounting to Rs. 728601/- (previous year Rs 60000 ) include:-

12. During the year ended 31 st March 2009 company has availed a Term Loan of Rs. 1349 lakhs for the payment of cane dues for the season 2006-07 and 2007-08 as per scheme for Extending financial assistance to Sugar Industries. A sum of Rs. 166.44 lakhs on account of Interest has been debited by the Bank to the Company to be reimbursed as per scheme. Pending reimbursement of the said amount from the Bank in accordance with the scheme, the same has been included in Advance Recoverable in cash or kind in Schedule 11.

13. Advance Recoverable in cash or kind appearing under schedule 11 for Loans & Advances includes an amount aggregating Rs. 1034 lacs paid as share application money on short term Investment as well as for advance towards purchase of Assets to a company, where the Managing Director of the company is interested as a Director.

14. Sundry Debtor includes a sum of Rs. 612.94 Lacs due from a subsidiary Company.

15. Pursuant to Accounting Standard (AS)-15 ( Revised 2005) "Employee Benefits", the disclosure of employees benefits are given below :-

I) Defined Contribution Plan and amount recognized in

(Rs. in lakhs)

Profit and Loss Account

- Employers Contribution to provident fund 30.71

16. The company is in process of identifying its suppliers as Micro, Small and Medium Enterprises as defined under the "Micro, Small and Medium Enterprises Development Act 2006". However the company has not received any intimation/ communication from their suppliers regarding applicability of this act to them. Therefore no such disclosure under the said act has been furnished.

17. RELATED PARTY DISCLOSURES

a) Detail relating to related party Parties where control exists Yadu Resorts Ltd

b) Other related parties where transaction have taken place during the year

i) Subsidiary Company: - Ranger Breweries Limited

ii) Associates Company: - Nil

iii) Key Management Personnel

Mr D.P. Singh Chairman

Mr Deepak Yadav Managing Director

Mr Jitender Singh Director

Mr Pawan Dewan Director

Mr Kunal Singh Director

Mr.Sheoraj Ahlawat Director

iv) Relative of Key Management Personnel

Mrs Umlesh Yadav

Mr. Kunal Singh

v) Enterprise significantly influenced by Directors and /or their relatives Nil