Notes to Accounts of Kothari Sugars & Chemicals Ltd.

Mar 31, 2024

1.14 Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) because of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, considering the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all ofthe economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received,and the amount of the receivable can be measured reliably.

1.15 Financial instruments

Financial assets and financial liabilities are recognized when a company entity becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets

or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets orfinancial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

1.16 Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the market place.

All recognized financial assets are subsequently measured in their entirety at either amortized cost or fair value, depending on the classification of the financial assets.

(a) Classification offinancial assets

Debt instruments that meet the following conditions are subsequently measured at amortized cost (except for debt instruments that are designated as at fair value through profit or loss on initial recognition). The debt instruments carried at amortized cost include Deposits, Debtors, Loans and advances recoverable in cash.

The asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.AII other financial assets are subsequently measured at fair value.

(b) Effective interest method

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

Expense is recognized on an effective interest basis for debt instruments other than those financial liabilities classified as at FVTPL. Interest expense is recognized in profit or loss and is included in the Finance cost line item.

(c) I nvestments in equity instruments at FVTPL (FairValue Through Profit and Loss account)

The Company has elected to carry investment in equity instruments as Fair value through Profit and Loss account. On initial recognition, the Company can make an irrevocable election (on an instrument-byinstrument basis) to present the subsequent changes in fair value in profit and loss account pertaining to investments in equity instruments. This election is permitted if the equity investment is held for trading. These elected investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognized in the Profit and Loss account.

The Company has certain strategic equity investments,and some are heldfor trading. The Company has elected the FVTPL irrevocable option for these investments (see note 5). Fair value is determined in the manner described in note 39.3.

(d) Financial assets at fair value through profit or loss (FVTPL)

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on re-measurement recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any dividend or interest earned on the financial asset and is included in the ‘Other income'' line item.

(e) Impairmentoffinancial assets

The Company applies the expected credit loss model for recognizing impairment loss on financial assets measured at amortized cost, lease receivables, trade receivables, and other contractual rights to receive cash orotherfinancial asset, and financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cashflows that the Company expects to receive (i.e., all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets). The Company estimates cash flows by considering all contractual terms of the financial instrument through the expected life of that financial instrument.

For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 11 and Ind AS 18, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses.

The company assess the impairment of trade receivables on case-to-case basis and creates allowance for expected credit loss accordingly.

(f) De-recognition offinancial assets

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

On de-recognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss if such gain or loss would have otherwise been recognized in profit or loss on disposal of that financial asset.

(g) Modification offinancial assets

When the contractual cash flows of a financial asset is modified without requiring a derecognition then the gross carrying amount of the financial assets is recalculated based on the modified cash flows and a gain or loss is recognized in the statement of profit and loss for the difference between the amortized cost before modification and the recalculated gross carrying amount.

1.17 Financial liabilities

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

However, financial liabilities that arise when a transfer of a financial asset does not qualify for de-recognition or when the continuing involvement approach applies, financial guarantee contracts issued by the Company,

and commitments issued by the Company to provide a loan at below-market interest rate are measured in accordance with the specific accounting policies set out below.

(a) Financial liabilities at FVTPL

Financial liabilities at FVTPL include derivative liabilities. Non-derivative financial liabilities are classified as at FVTPL when the financial liability is either contingent consideration recognized by theCompany as an acquirer in a business combination to which Ind AS 103 applies or is held for trading or it is designated as at FVTPL. There are no non-derivative financial liabilities carried at FVTPL.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognized in profit or loss. Fair value is determined in the manner described in note 39.3.

(b) Financial liabilities subsequently measured at amortized cost

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

(c) De-recognition offinancial liabilities

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

1.18 Cashflowstatement

Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing, and financing activities of the Company are segregated based on the available information.

1.19 Key sources of estimation uncertainty and judgement made:

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key assumption concerning the future and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as given below.

(a) Fair value measurement and valuation processes

Some of the Company''s assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Company engages third party qualified valuers to perform the valuation. The management works closely with the qualified external valuers to establish the appropriate valuation techniques and inputs to the model. Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities are disclosed in note 3.

(b) Useful lives of Property, Plant and Equipment

The useful life of property, plant, equipment, and other intangible assets are reviewed at each reporting date. Any re-adjustment would result in revised depreciation for the future periods.

(c) Provisions and contingent liabilities

The Company estimates provisions that have present obligations because of past events, and it is probable that an outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates.

(d) Provision for Income tax and Deferred tax

The Income tax expenses for the year estimated using assumptions and judgements certain allowances and provisions, any change in actual income tax expenses is recognized in the year it arises. Deferred tax assets are recognized to the extent of future taxable profit expected by the management.

(e) Provision for defined benefit obligations to employees

The Company''s provisions for defined benefit obligations are on the basis of actuarial valuation report which uses various inputs and assumptions to estimate the obligations. (Refer note 36).

(f) Significant judgements made in the preparation offinancials

(a) Outcome of the litigations involving the company:

The impact of litigations involving the Company have been presented based on the best judgement of the Company on the outcome of these litigations wherever the management expects the outcome to be unfavorable, the expected outflow is estimated and provided in the books based on the provisioning policy.

1.20 Operating Cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

1.21 Cash and Cash equivalents

The Company considers all highly liquid investments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

1.22 Rounding off amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.

Revenue and expenses directly attributable to segments are reported under each reportable segment. Other expenses and income which are not attributable or allocable to segments have been disclosed as net un-allocable expenses / income.

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

Operating segments represent products also and therefore, separate disclosure of revenue from major products are not made.

Inter segment transfer pricing:

Inter segment prices are normally negotiated amongst the segments with reference to cost, market prices and business risks, within an overall objective of optimising the resources for the enterprise.

Note 36

A. Defined contribution plans

The Company makes Provident Fund, Superannuation Fund which are defined contribution plans, for qualifying employees. Underthe Schemes, the Company is required to contribute a specified percentage ofthe payroll costs to fund the benefits. The Company recognised ''178.18 lakhs (Prev. year 2022 - 23 ''172.36 lakhs) for provident fund contribution and for superannuation fund contribution of ''13.13 lakhs (Prev. year 2022 - 23 ''11.15 lakhs) in the statement of Profit or loss. The contribution payable to these plans by the Company are at rates specified in the rules of the schemes.

B. Defined benefit plans (Gratuity)

In respect of Gratuity plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as March 31, 2024 by fellow ofthe Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit cost method. The following table sets forth the status of the Gratuity Plan of the Company and the amount recognized in the Balance Sheet and Statment of Profit and Loss. The Company provided the gratuity benefit through annual contributions to a fund managed by the ICICI Prudential Life Insurance Company Limited.

The Company is exposed to various risks in providing the above gratuity benefit which are as follows:

Interest Rate risk : The plan exposes the Company to the risk of fall in interest rates. A drop in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.

Investment risk : The probability or likelihood of occurance of losses relative to the expected return on any particular investment which in inherent.

Salary escalation Risk : The present value ofthe defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

Demographic risk : The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

Gratuity

Liability to existing employees of the Company in respect of gratuity is covered insurance policy administered by the Trust.

The actuarially valued liabilities under the Projected Unit Credit Method for the employees of the participating enterprise of the trust are calculated enterprise wise. The investments available with the underwriter are adjusted in proportion to the liability and the shortfall is provided for in the books of the participating enterprise. Consequently, the actuarial loss / gain if any relating to the other participating enterprise is also borne by every other participating enterprise.

The following table sets forth the status of the Gratuity plan of the Company and the amounts recognized in the Balance sheet and the Statement of Profit and loss.

38.1 Capital Management

The Company''s capital management is intended to maximise the return to shareholders for meeting the long and short term objectives of the Company through the leveraging of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual and long-term operating plans and strategic investment plans. The funding requirements are met through long and short term borrowings. The Company monitors the capital structure on the basis of debt to equity ratio and the maturity of the overall debt of the Company.

39.1 Credit Risk Management

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities (predominantly trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and otherfinancial instruments.

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to the customer credit risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its customers and individual credit limits are defined in accordance with this assessment. Outstanding receivables and the credit worthiness of this counter parties are periodically monitored and taken up on case to case basis. There is no material expected credit loss based on the past experience. However, the Company assesses the impairment of trade receivables on case to case basis and has accordingly created loss allowance.

The credit risk on cash and bank balances is limited because the counter parties are banks with high credit ratings assigned by accredited rating agencies.

39.2 Liquidity Risk Management

The Company manages liquity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Note 45 Approval of financial statements

The financial statements were approved by the Board of Directors on May 17, 2024.

Note 46

Previous years’ figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosures.

In terms of our report attached For and on behalf of the Board of Directors

For P. Chandrasekar, LLP CIN: L15421TN1960PLC004310

Chartered Accountants FRN : 000580S/S200066

Arjun B. Kothari C.V. Krishnan

Managing Director Director

^S. ^Raghavendhar DIN: 07117816 DIN: 01606522

Partner

Membership No: 244016

R. Prakash R. Krishnan

^{Place :} Chennai CompanySecretary ChiefFinancialOfficer

Date : May 17, 2024

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Mar 31, 2023

The fair value of the Company''s investment properties as at March 31, 2023 and March 31, 2022 has been arrived at on the basis of a valuation carried out by an independent valuer not registered under Rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

The cost of inventories recognised as an expense during the year was ''42,746.07 Lakhs(2021-22 ?28,444.99 Lakhs). Inventories are stated at the lower of cost and net realizable value. Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

Cost of inventory comprises of purchase price, cost of conversion and other directly attributable costs that have been incurred in bringing the inventories to their respective present location and condition. Borrowing costs are not included in the value of inventories.

The cost of inventories is computed on weighted average basis. Inventories are written down on a case-by-case basis if the anticipated net realizable value declines below the carrying amount of the inventories. Such write downs are recognized in the Statement of Profit and Loss. When the reason for a write-down of the inventories ceases to exist, the write-down is reversed.

* The holding Company, Parvathi Trading and Finance Company Private Limited which held 70.20% in Kothari Sugars and Chemicals Limited (KSCL) got amalgamated with NBK Real Estates Private Limited pursuant to the Scheme of Amalgamation for the Group Companies restructuring as approved by the Hon''ble National Company Law Tribunal, Chennai. Hence, NBK Real Estates Private Limited is the holding company of KSCL holding 70.20% with effect from 15.05.2023. However, the ultimate control of the Company remains with the same individuals, as before.

12.3 Term attached to Equity Shares:

The Company has one class of equity share having a par value of '' 10 per share. Each holder of equity share is entitled to one vote per share. All equity shares have equal rights to receive or participate in any dividend or other distribution in respect of such shares.

a) Working capital facilities of ''3,716.57 lakhs (Prev.year ''4,851.81 lakhs) in the form of open cash credit has been availed from Indian bank. The loans were secured by Parri Passu first charge on land, buildings and Plant and equipment and all the movable properties (present and future) and hypothecation of Finished Goods / Work-in-process/stores and spares and book debts of Sathamangalam sugar and Co-generation Unit.

b) Exclusive charge on assets to be purchased / created out of fresh Term Loan at Kattur Plant and Paripassu first charge on land, Buildings and Plant and Machinery and all movable properties (present and future ) of the Sathamangalam sugar & cogeneration Unit with Indian Bank. Balance ''11.80 lakhs (Prev.year ''300 lakhs).

c) 80% of the limit to be secured by stocks and book debts and balance 20% will be clean and extension of Paripassu first charge on land, Buildings and Plant and Machinery and all movable properties (present and future ) of the Sathamangalam sugar & cogeneration Unit with Indian Bank. Balance ''33.33 lakhs (Prev.year ''400 lakhs).

17.1 These amounts represent dividend warrants issued to the shareholders which remained unclaimed at their end.

17.2 During the year there were no amounts due to be transferred to Investor Education and Protection Fund.

(a) Relates to Interest demand on E - tax payment for the years 2002-03 till 2020-21 as per the Tamilnadu tax on consumption or sale of electricity Act 2003.

(b) Relates to cane transport subsidy given by Government of Tamilnadu for the sugar year 2019-20.

(c) During the year the contractual cash flows of Trade Receivables from TANGEDCO was re-negotiated. The gain arising on recalculation of the gross carrying amount in compliance with Ind AS 109 has been recognized as an exceptional item.

SEGMENT INFORMATION

Operating results are regularly reviewed by the entity''s chief operating decision maker(CODM) to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available for the following segments which are tabulated below. No operating segments have been aggregated in arriving at the reportable segments of the Company. Specifically the Company''s reportable segments under Ind AS 108 are as follows.

Revenue and expenses directly attributable to segments are reported under each reportable segment. Other expenses and income which are not attributable or allocable to segments have been disclosed as net un-allocable expenses / income.

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

Operating segments represent products also and therefore, separate disclosure of revenue from major products are not made.

Inter segment transfer pricing:

Inter segment prices are normally negotiated amongst the segments with reference to cost, market prices and business risks, within an overall objective of optimising the resources for the enterprise.

A. Defined contribution plans

The Company makes Provident Fund, Super annuation Fund which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised ''172.38 Lakhs (Prev.year 2021-22 ''152.88 Lakhs) for provident fund contribution and for superannuation fund contribution of ''11.15 lakhs (Prev.year 2021-22 ''10.55 lakhs) in the statement of Profit or loss. The contribution payable to these plans by the Company are at rates specified in the rules of the schemes.

B. Defined benefit plans (Gratuity)

In respect of Gratuity plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as March 31, 2023 by Mrs.V Subbulakshmi, Fellow of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit cost method. The following table sets forth the status of the Gratuity Plan of the Company and the amount recognized in the Balance Sheet and Statment of Profit and Loss. The Company provided the gratuity benefit through annual contributions to a fund managed by the ICICI Prudential Life Insurance Company Limited.

The Company is exposed to various risks in providing the above gratuity benefit which are as follows:

interest Rate risk : The plan exposes the Company to the risk of fall in interest rates. A drop in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an incrase in the value of the liability.

investment risk : The probability or likelihood of occurance of losses relative to the expected retun on any particular investment which in inherent.

Salary escalation Risk : The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

Demographic risk : The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exosed to the risk of actual experience turning out to be worse compared to the assumption.

Gratuity

Liability to existing employees of the Company in respect of gratuity is covered insurance policy administered by the Trust.

The actuarially valued liabilities under the Projected Unit Credit Method for the employees of the participating enterprise of the trust are calculated enterprise wise. The investments available with the underwriter are adjusted in proportion to the liability and the shortfall is provided for in the books of the participating enterprise. Consequently, the actuarial loss / gain if any relating to the other participating enterprise is also borne by every other participating enterprise.

The following table sets forth the status of the Gratuity plan of the Company and the amounts recognized in the Balance sheet and the Statement of Profit and loss.

(a) Experience adjustment has been provided only to the extent of details available.

(b) Estimates of future salary increase take account of inflation, seniority, promotion and other relevant factors.

(c) The discount rate is based on the prevailing market yields of Government of India Bonds as at the Balance Sheet date for the estimated term of the obligation.

(d) The Company''s gratuity funds are managed by ICICI Prudential Life insurance Co.Ltd.

(e) The Company''s best estimate of the contribution expected to be paid to the plan during the next year is ''109.65 lakhs (as on 31^st March, 2022 ''115.89 lakhs).

Note - 3838.1 Capital Management

The Company''s capital management is intended to maximise the return to shareholders for meeting the long and short term objectives of the Company through the leveraging of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual and long-term operating plans and strategic investment plans. The funding requirements are met through long and short term borrowings. The Company monitors the capital structure on the basis of debt to equity ratio and the maturity of the overall debt of the Company.

39.1 Credit Risk Management

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities (predominantly trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to the customer credit risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its customers and individual credit limits are defined in accordance with this assessment. Outstanding receivables and the credit worthiness of this counter parties are periodically monitored and taken up on case to case basis. There is no material expected credit loss based on the past experience. However, the Company assesses the impairment of trade receivables on case to case basis and has accordingly created loss allowance.

The credit risk on cash and bank balances is limited because the counter parties are banks with high credit ratings assigned by accredited rating agencies.

39.2 Liquidity Risk Management

The Company manages liquity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

“The Tamilnadu Government declared State Advisory Price (SAP) for the Sugar season 2013 - 2014 to 2016 - 2017. The Company challenged the right of the State Government to declare the SAP in the Hon''ble High Court of Madras through South Indian Sugar Mills Association and the matter is sub-judice”.

Future cash outflows in respect of the above referred matters are determinable only on receipt of judgements / decisions pending at various forums / authorities.

Note - 42

The Company has filed the monthly statement of current assets with the Bank and same are in agreement with the books of accounts.

Note - 45 Approval of financial statements:

The financial statements were approved by the Board of Directors on May 30, 2023.

Note - 46

Previous years'' figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosures.

Note - 47

No adjusting or significant non-adjusting events have occurred between 31^st March 2023, the reporting date and the date of approval of financial statements except recomendation of final dividend of '' 0.50 paise per equity shares of '' 10 each for the financial year 2022-23 by the Board of Directors at meeting held on 30^th May 2023.

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Mar 31, 2021

The cost of inventories recognised as an expense during the year was '' 27,262.29 Lakhs, (2019-20 '' 23,961.80 Lakhs).

Inventories are stated at the lower of cost and net realizable value. Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

Cost of inventory comprises of purchase price, cost of conversion and other directly attributable costs that have been incurred in bringing the inventories to their respective present location and condition. Borrowing costs are not included in the value of inventories.

The cost of inventories is computed on weighted average basis. Inventories are written down on a case-by-case basis if the anticipated net realizable value declines below the carrying amount of the inventories. Such write downs are recognized in the Statement of Profit and Loss. When the reason for a write-down of the inventories ceases to exist, the write-down is reversed.

SEGMENT INFORMATION

Operating results are regularly reviewed by the entity''s chief operating decision maker (CODM) to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available for the following segments which are tabulated below. No operating segments have been aggregated in arriving at the reportable segments of the Company. Specifically the Company''s reportable segments under Ind AS 108 are as follows.

Revenue and expenses directly attributable to segments are reported under each reportable segment. Other expenses and income which are not attributable or allocable to segments have been disclosed as net un-allocable expenses / income.

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

Operating segments represent products also and therefore, separate disclosure of revenue from major products are not made.

Inter segment transfer pricing:

Inter segment prices are normally negotiated amongst the segments with reference to cost, market prices and business risks, within an overall objective of optimising the resources for the enterprise.

A. Defined contribution plans

The Company makes Provident Fund, Superannuation Fund which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised '' 138.11 Lakhs (2019-20''128.28 Lakhs) for provident fund contribution and for superannuation fund contribution of '' 8.41 lakh (2019-20''8.41 lakhs) in the statement of Profit or loss. The contribution payable to these plans by the Company are at rates specified in the rules of the schemes.

B. Defined benefit plans (Gratuity)

In respect of Gratuity plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as March 31, 2021 by Mr. S. Krishnan, Fellow of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit cost method. The following table sets forth the status of the Gratuity Plan of the Company and the amount recognized in the Balance Sheet and Statment of Profit and Loss. The Company provided the gratuity benefit through annual contributions to a fund managed by the M/s. Reliance Nippon Life Insurance Company Limited and ICICI Prudential Life Insurance Company Limited.

The Company is exposed to various risks in providing the above gratuity benefit which are as follows:

interest Rate risk : The plan exposes the Company to the risk of fall in interest rates. A drop in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.

investment risk : The probability or likelihood of occurance of losses relative to the expected return on any particular investment which in inherent.

Salary escalation Risk : The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

Demographic risk : The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

Gratuity

Liability to existing employees of the Company in respect of gratuity is covered under a common insurance policy administered by a Trust maintained for the participating enterprises viz. Kothari Sugars and Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL).

The actuarial valued liabilities under the Projected Unit Credit Method for the employees of the participating enterprise of the trust are calculated enterprise wise. The investments available with the underwriter are adjusted in proportion to the liability and the shortfall is provided for in the books of the participating enterprise. Consequently, the actuarial loss / gain if any relating to the other participating enterprise is also borne by every other participating enterprise.

The following table sets forth the status of the Gratuity plan of the Company and the amounts recognized in the Balance sheet and the Statement of Profit and loss.

(a) Experience adjustment has been provided only to the extent of details available.

(b) Estimates of future salary increase take account of inflation, seniority, promotion and other relevant factors.

(c) The discount rate is based on the prevailing market yields of Government of India Bonds as at the Balance Sheet date for the estimated term of the obligation.

(d) The Company''s gratuity funds are managed by the M/s. Reliance Nippon Life Insurance Company Limited and therefore the composition of the fund assets in not presently ascertained.

(e) The Company''s best estimate of the contribution expected to be paid to the plan during the next year is '' 190.19 lakhs (as on 31 March, 2020''67.16 lakhs).

40.1 Credit Risk Management

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities (predominantly trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to the customer credit risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its customers and individual credit limits are defined in accordance with this assessment. Outstanding receivables and the credit worthiness of this counter parties are periodically monitored and taken up on case to case basis. There is no material expected credit loss based on the past experience. However, the Company assesses the impairment of trade receivables on case to case basis and has accordingly created loss allowance.

The credit risk on cash and bank balances is limited because the counter parties are banks with high credit ratings assigned by accredited rating agencies.

Future cash outflows in respect of the above referred matters are determinable only on receipt of judgements / decisions pending at various forums / authorities.

43 Approval of financial statements

The financial statements were approved by the Board of Directors on May 25, 2021.

44 Previous years'' figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosures.

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Mar 31, 2018

NOTES FORMING PART OF FINANCIAL STATEMENTS

Note - 1 A. Defined contribution plans

The Company makes Provident Fund, Superannuation Fund which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs,.112.90 Lakh (2016-17 Rs,.111.79 Lakh) for provident fund contribution and for superannuation fund contribution of Rs,.7.80 lakh ( 2016-17 Rs,.6.58 lakh) in the statement of Profit or loss. The contribution payable to these plans by the Company are at rates specified in the rules of the schemes.

B. Defined benefit plans (Gratuity)

In respect of Gratuity plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as March 31, 2018 by Mr.S Krishnan, fellow of the Institute of actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit cost method. The following table sets forth the status of the Gratuity Plan of the Company and the amount recognized in the Balance Sheet and Statment of Profit and Loss. The Comapny provided the gratuity benefit through annual contributions to a fund managed by the M/s. Reliance Nippon Life Insurance Company Limited.

The Company is exposed to various risks in providing the above gratuity benefit which are as follows:

Interest Rate risk : The plan exposes the Company to the risk of fall in interest rates. A drop in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an incrase in the value of the liability

Investment risk : The probability or likelihood of occurance of losses relative to the expected retun on any particular investment which in inherent.

Salary escalation Risk : The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

Demographic risk : The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exosed to the risk of actual experience turning out to be worse compared to the assumption.

Gratuity

Liability to existing employees of the Company in respect of gratuity is covered under a common insurance policy administered by a trust maintained for the participating enterprises viz. Kothari Sugars and Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL).

The actuarially valued liabilities under the Projected Unit Credit Method for the employees of the participating enterprise of the trust are calculated enterprise wise. The investments available with the underwriter are adjusted in proportion to the liability and the shortfall is provided for in the books of the participating enterprise. Consequently, the actuarial loss / gain if any relating to the other participating enterprise is also borne by every other participating enterprise.

The following table sets forth the status of the Gratuity plan of the Company and the amounts recognized in the Balance sheet and Profit and loss Account.

41.1 Credit Risk Management

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities (predominantly trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to the customer credit risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its customers and individual credit limits are defined in accordance with this assessment. Outstanding receivables and the credit worthiness of tis counter parties are periodically monitored and taken up on case to case basis. There is no material expected credit loss based on the past experience. However, the Company assesses the impairment of trade receivables on case to case basis and has accordingly created loss allowance.

The credit risk on cash and bank balances is limited because the counter parties are banks with high credit ratings assigned by accredited rating agencies.

41.2 Liquefy Risk Management

The Company manages liquefy risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The table below provides details regarding contractual maturities of financial liabilities as at 31, March 2018.

41.3 Fair Value Measurements

Some of the Company''s financial assets and financial liabilities are measured at fair value at the end of the reporting period. The following table gives information about how the fair values of these financial assets and financial liabilities are determined i.e the valuation techniques and inputs used:

* Positive value denotes financial asset and negative value denotes financial liability

Notes :

1. There were no transfers between Level 1 and 2 in the period.

2. The Level 1 financial instruments are measured using quotes in active market.

3. The following table shows the valuation technique and key input used for Level 2.

1. In case of trade receivables, cash and cash equivalents, trade payables, short term borrowings and other financial assets and liabilities it is assessed that the fair values approximate their carrying amounts largely due to the short-term maturities of these instruments.

2. The fair values of the financial assets and financial liabilities included above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.

44.4 NOTES TO THE RECONCILIATIONS

A) CURRENT INVESTMENTS AS FVPTL

Under the previous GAAP, investments were measured at cost less diminution in value which temporary. Under Ind AS these financial assets have been classified as FVTPL. On the date of transition to Ind AS, these financial assets have been measured at their fair value which is higher than the cost as per previous GAAP, resulting in an increase in carrying amount Rs,. 81.45 lakhs as at March 31, 2017 and Rs,.1.91 lakhs as at April 01, 2016. These changes affect profit before tax or total profit for the year ended March 31, 2017 because the investments have been classified as FVTPL.

b) Actuarial gains and losses

Under previous GAAP, actuarial gains and loss were recognized in profit or loss account. Under Ind AS the actuarial gains and losses form part of re-measurement of the net defined benefit liability / asset is recognized in other comprehensive income. Consequently, the tax effect of the same has also been recognized in the other comprehensive income under Ind AS instead of profit or loss. The actuarial gain for the year ended March 31, 2017 were Rs,. 0.35 lakh and the tax effect thereon Rs,. 0.12 lakh. This change does not affect total equity, but there is decrease in profit before tax of Rs,. 0.35 lakh, and in total profit of Rs,. 0.23 lakh for the year ended March 31, 2017.

c) Deferred taxes

Under the previous GAAP, deferred taxes were to be accounted on timing differences arising between the accounting profit and tax profit. However, such method has been replaced with Balance Sheet approach in Ind AS, wherein deferred taxes are to be accounted for the differences arising between the accounting balance sheet and tax balance sheet. Accordingly, deferred taxes has been accounted for such temporary differences.

2. Approval of financial statements

The financial statements were approved by the Board of Directors on May 28, 2018.

3. Previous years'' figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosures,.

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Mar 31, 2016

Term Loan from banks

Term Loan from Indian Bank Rs.1035.64 lacs (P.Y Rs.1249.96 lacs) of which Rs.821.32 lacs under long term borrowings and Rs.214.32 lacs under current maturity. Secured by exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future ) of the Sathamangalam sugar & cogeneration Unit. Balance installments 58. Rate of Interest 11.15% p.a. Amount of monthly installment Rs.17.86 lacs.

Term Loan from Indian Bank Rs.62.16 lacs (P.Y Rs.93.72 lacs) of which Rs.30.60 lacs under long term borrowings and Rs.31.56 lacs under current maturity. Secured by exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam sugar & cogeneration Unit. Balance installments 24. Rate of Interest 10.90% p.a. Amount of monthly installment Rs.2.63 lacs.

Interest Free Term Loan from Indian Bank Rs.2737.65 lacs (PY Rs.2815.87 lacs) under Scheme for Extending Financial Assistance to Sugar units 2014 of which Rs.1799.03 lacs under long term borrowings and Rs.938.62 lacs under current maturity. Repayment in 5 years with 2 year moratorium. Secured by exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future ) of the Sathamangalam sugar & cogeneration Unit. Balance installments 35. Rate of Interest Nil. Amount of monthly installment Rs.78.22 lacs.

Interest Free Term Loan from Indian Bank Rs.2148.00 lacs (PY Rs.Nil) under Soft Loan scheme extended by Government of Indian to Sugar units during 2015 of which Rs.716 lacs under long term borrowings and Rs.1432 lacs under current maturity. Repayment in 2 years with 1 year interest subsidy at 10% and 1 year moratorium towards principal repayment. Secured by exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future ) of the Sathamangalam sugar & cogeneration Unit. Balance installments 12. Rate of Interest 1.70%. Amount of monthly installment Rs.179 lacs commencing from August 2016.

Term Loan Sugar Development Fund

Rs 1026.48 lacs (PY.Rs 1283.10 Lacs) of which Rs.769.86 lacs under long term borrowings and Rs.256.62 lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties except book debts of the Company situated at Kattur,Tamil Nadu. Annual repayment in 5 equal annual installments starting from September 2015 to September 2019. Rate of Interest 4% p.a. Amount of each installment Rs.256.62 lacs. Balance installments 4.

Rs 769.86 lacs (P.Y.Rs 1026.48 Lacs) of which Rs.513.24 lacs under long term borrowings and Rs.256.62 lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties except book debts of the Company situated at Kattur,Tamil Nadu. Annual repayment in 5 equal annual installments starting from December 2014 to December 2018. Rate of Interest 4% p.a. Amount of each installment Rs.256.62 lacs. Balance installments 3.

Rs.688.09 lacs ( P.Y Rs 1032.14 lacs) of which Rs.344.04 lacs under long term borrowings and Rs. 344.05 lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties except book debts of the Company situated at Kattur Unit, Tamil Nadu. Repayment in 10 equal half yearly installment starting from September 2013 to March 2018 Rate of Interest 4% p.a. Amount of each installment Rs.172.02 lacs. Balance installments 4.

Rs.58.40 lacs (P.Y 87.60 lacs ) of which Rs.29.20 lacs under long term borrowing and Rs.29.20 lacs under current maturity secured by bank Guarantee Repayment in 4 Annual Equal installments starting from April 2014 to April 2017. Balance installments 2. Rate of Interest 4% p.a. Amount of each installment Rs.29.20 lacs.

Rs 136.40 lacs (PY year Rs.204.59 lacs) of which Rs.68.20 lacs under long term borrowing and Rs.68.20 lacs under current maturity.Repayment 4 equal Annual installments starting from February 2015 to February 2018. Secured by Bank Guarantee. Balance installments 2. Rate of Interest 4% p.a. Amount of each installment Rs.68.20 lacs.

Rs 159.78 lacs (PY year Rs.182.61 lacs) of which Rs.114.13 lacs under long term borrowing and Rs.45.65 lacs under current maturity. Repayment 4 equal Annual installments starting from February 2016 to February 2019. Secured by Bank Guarantee.Balance 7 half yearly installments. Rate of Interest 6.75% p.a. Amount of each installment Rs.22.83 lacs.

Rs 297 lacs (P.Y year Rs.297 lacs) of which Rs.297 lacs under long term borrowing and Rs.Nil under current maturity. Repayment 8 half yearly installments starting from June 2017 to December 2020. Secured by Paripassu first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam sugar & cogeneration Unit. Balance 8 half yearly installments. Rate of Interest 7% p.a. Amount of each installment Rs.37.12 lacs

Rs 243 lacs (P.Y year Rs.243 lacs) of which Rs.243 lacs under long term borrowing and Rs.Nil under current maturity. Repayment 8 half yearly installments starting from January 2018 to July 2021. Secured by Paripassu first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam sugar & cogeneration Unit. Balance 8 half yearly installments. Rate of Interest 7% p.a. Amount of each installment Rs.30.38 lacs.

Term Loan From Holding Company (parvathi Trading & Finance Co.pvt.Ltd.)

Rs 821.20 lacs (P.Y Rs 821.20 lacs ).Secured by Hypothecation of Movable properties including plant and machinery and Inventories situated at Kattur unit,Tamil Nadu. Payable in June 2029. Rate of Interest - Nil. No.of installment 1.

Term Loan From Others (Ekansha Enterprises pvt.Ltd.) (Unsecured)

Rs 623.15 lacs (P.Y Rs.623.15 lacs) payable in June 2029. Rate of Interest - Nil. No. installment 1

1. Employee Benefits:

The following table sets forth the status of the unavailed earned leave and Gratuity plan of the Company and the amounts recognized in the Balance sheet and Statement of Profit and loss Account:

(b) Gratuity

Liability to existing employees of the Company in respect of gratuity is covered under a common insurance policy administered by a trust maintained for the participating enterprises viz. Kothari Sugars and Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL).

The actuarially valued liabilities under the Projected Unit Credit Method for the employees of the participating enterprise of the trust are calculated enterprise wise. The investments available with the underwriter are adjusted in proportion to the liability and the shortfall is provided for in the books of the participating enterprise. Consequently, the actuarial loss / gain if any relating to the other participating enterprise is also borne by every other participating enterprise.

In respect of above matters, future cash outflows in respect of contingent liabilities are determinable only on receipt of judgments pending at various forums / authorities.

In the matter of SAP (State Advised Price) The South Indian Sugar Mills Association (SISMA), Tamilnadu has filed a writ petition in the High Court of Madras on behalf of all the private sector sugar mills in the State challenging the power of the State Government to fix the State Advised Price (SAP).

Since the Hon''ble Supreme Court has held in 2004 that SAP is only recommendatory in nature in Tamilnadu. Therefore, the Company does not foresee any adverse impact on the financial position.

2. Notes Relating to Segment

i) Business Segments

The Company has considered business segments as the primary segments for disclosure. The business segments are:

Sugar, Power generation and Distillery.

Sugar segment comprises of sugar and molasses, Power segment includes generation of power from bagasse and Distillery segment reflects the manufacture of Extra neutral and Denatured alcohol.

The above segments have been identified taking into account the organization structure as well as the differing risks and returns of these segments

ii) Geographical Segments

The geographical segment considered for disclosure is India and Rest of the world. All the manufacturing facilities and sales offices are located in India. Sales to the rest of the world are also serviced by Indian sales offices.

Geographical revenues are segmented based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognized .

iii) Segmental assets includes all operating assets used by respective segment and consists principally of operating cash, debtors, inventories and fixed assets net of allowances and provisions. Segmental liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities.

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

Refer Separate workings on Segment results-at page no.73

3. Related Party Disclosures:

Refer Separate workings on Related Party Transactions-at page no.74

4. Rental Income

A sum of Rs.34.20 lakhs (Previous Year Rs.25.51 lakhs) has been considered as rental Income from property.

5. Operating Lease

A sum of Rs.19.72 lakhs (Previous Year Rs. 23.89 lakhs) has been debited to Rent account, being the rent paid on premises which has been taken on lease.

6. Amount spent on CSR during the year

The amount required to be spent on CSR (Corporate Social Responsibility) as calculated in accordance with Sec. 198 of the Companies Act 2013 was Rs.15.27 lakhs.

7. Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2015

1 CORPORATE INFORMATION

Kothari Sugars and Chemicals Limited (referred to as "KSCL" or the "Company") are the Manufacturers of Sugar, Alcohol and Power generating having units at Kattur and Sathamangalam, Tamilnadu.

Parvathi Trading & Finance Co.Pvt.Ltd.owns 70.20% of the Company's equity share capital and hence its holding Company.

2 Term Loan from banks

Term Loan from Indian Bank Rs.1,249.96 lacs (P.Y. Rs.1464.28 lacs) of which Rs.1,035.64 lacs under long term borrowings and Rs.214.32 lacs under current maturity. Secured by exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam Sugar & Cogeneration Unit. Balance installments 70. Rate of Interest 11.70% p.a. Amount of monthly installment Rs.17.86 lacs.

Term Loan from Indian Bank 93.72 lacs (P.Y. Rs.125.28 lacs) of which Rs. 62.16 lacs under long term borrowings and Rs.31.56 lacs under current maturity. Secured by exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam Sugar & Cogeneration Unit. Balance installments 36. Rate of Interest 11.45% p.a. Amount of monthly installment Rs.2.63 lacs.

Interest Free Term Loan from Indian Bank Rs.2,815.87 lacs (P.Y. Rs.2,815.87 lacs) under Scheme for Extending Financial Assistance to Sugar units 2014. Repayment in 5 years with 2 year moratorium. Secured by exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam Sugar & Cogeneration Unit.

3 Term Loan Sugar Development Fund

Rs.1,283.10 lacs (P.Y. Rs.1,283.10 Lacs) of which Rs.1026.48 lacs under long term borrowings and Rs.256.62 lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties except book debts of the Company situated at Kattur,Tamil Nadu. Annual repayment in 5 equal annual installments starting from September 2015 to September 2019. Rate of Interest 4% p.a. Amount of each installment Rs.256.62 lacs. Balance installments 5.

Rs.1,026.48 lacs (P.Y. Rs.1,283.10 Lacs) of which Rs.769.86 lacs under long term borrowings and Rs.256.62 lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties except book debts of the Company situated at Kattur,Tamil Nadu. Annual repayment in 5 equal annual installments starting from December 2014 to December 2018. Rate of Interest 4% p.a. Amount of each installment Rs.256.62 lacs. Balance installments 4.

Rs.1,032.14 lacs (P.Y. Rs.1,376.19 lacs) of which Rs.688.09 lacs under long term borrowings and Rs.344.05 lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties except book debts of the Company situated at Kattur Unit, Tamil Nadu. Repayment in 10 equal half yearly installment starting from September 2013 to March 2018 Rate of Interest 4% p.a. Amount of each installment Rs.172.02 lacs. Balance installments 6.

Rs.87.60 lacs (P.Y. 116.80 lacs) of which Rs.58.40 lacs under long term borrowing and Rs.29.20 lacs under current maturity secured by bank Guarantee Repayment in 4 Annual Equal installments starting from April 2014 to April 2017. Balance installments 3. Rate of Interest 4% p.a. Amount of each installment Rs.29.20 lacs.

Rs.204.59 lacs (P.Y. Rs.272.79 lacs) of which Rs.136.39 lacs under long term borrowing and Rs.68.20 lacs under current maturity. Repayment 4 equal Annual installments starting from February 2015 to February 2018. Secured by Bank Guarantee. Balance installments 3. Rate of Interest 4% p.a. Amount of each installment Rs.68.20 lacs.

Rs.182.61 lacs (P.Y. Rs.182.61 lacs) of which Rs.159.78 lacs under long term borrowing and Rs.22.83 lacs under current maturity. Repayment 4 equal Annual installments starting from February 2016 to February 2019. Secured by Bank Guarantee.Balance 8 half yearly installments. Rate of Interest 6.75% p.a. Amount of each installment Rs.22.83 lacs.

Rs.297 lacs (P.Y Rs. Nil) of which Rs.297 lacs under long term borrowing and Rs. Nil under current maturity. Repayment 8 equal Annual installments starting from June 2017 to December 2020. Secured by Paripassu first charge on land, Buildings and Plant and Machinery and all movable properties (present and future ) of the Sathamangalam Sugar & Cogeneration Unit. Balance 8 half yearly installments. Rate of Interest 7% p.a. Amount of each installment Rs.37.12 lacs.

Rs.243 lacs (P.Y. Rs. Nil) of which Rs.243 lacs under long term borrowing and Rs. Nil under current maturity. Repayment 8 equal Annual installments starting from January 2018 to July 2021. Secured by Paripassu first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam Sugar & Cogeneration Unit. Balance 8 half yearly installments. Rate of Interest 7% p.a. Amount of each installment Rs.30.38 lacs.

4 Term Loan From Holding Company (Parvathi Trading & Finance Co.Pvt.Ltd.)

Rs.821.20 lacs (P.Y. Rs.821.20 lacs). Secured by Hypothecation of Movable properties including plant and machinery and Inventories situated at Kattur unit,Tamil Nadu. Payable in June 2029. Rate of Interest - Nil. No.of installment 1.

term loan From others(Ekansha Enterprises pvt.ltd.) (unsecured)

Rs.623.15 lacs (P.Y. Rs.623.15 lacs) payable in June 2029. Rate of Interest - Nil. No. installment 1.



5 Contingent Liabilities: - Rs. in lakhs

2014-15 2013-14

a) Claims not acknowledged by the Compa

Sales Tax - -

Customs 73.39 73.39

Central excise 679.96 662.70

Tangedco (Electricity) 438.19

Generation Tax 525.39

Tariff revision 227.86 284.11

Electricity tax (Third party sale) 860.92 753.12

Uraban Land tax 44.38 42.33

Others - 1.87

Total 2,411.89 2,255.71

In respect of above matters, future cash outflows in respect of contingent liabilities are determinable only on receipt of judgments pending at various forums / authorities.

South Indian Sugar Mills Association (SISMA), Tamilnadu has filed a writ petition in the High Court of Madras on behalf of all the private sector sugar mills in the State challenging the power of the State Government to fix the State Advisory Price (SAP).

Since the Hon'ble Supreme Court has held in 2004 that SAP in only recommendatory in nature in Tamilnadu. Therefore, the Company does not foresee any adverse impact on the financial position.

6 Notes Relating to Segment

i) Business Segments

The Company has considered business segments as the primary segments for disclosure. The business segments are:

Sugar, Power generation and Distillery.

Sugar segment comprises of sugar and molasses, Power segment includes generation of power from bagasse and coal and Distillery segment reflects the manufacture of Extra neutral and denatured alcohol.

The above segments have been identified taking into account the organization structure as well as the differing risks and returns of these segments

ii) Geographical Segments

The geographical segment considered for disclosure is India and Rest of the world. All the manufacturing facilities and sales offices are located in India. Sales to the rest of the world are also serviced by Indian sales offices.

Geographical revenues are segmented based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognized

iii) Segmental assets includes all operating assets used by respective segment and consists principally of operating cash, debtors, inventories and fixed assets net of allowances and provisions. Segmental liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities.

Refer Separate workings on Segment results - Annexure - I at page No. 72

7 Related party Disclosures:

Refer separate workings on Related Party Transactions - Annexure - II at Page No. 73

8 Rental Income

A sum of Rs.25.51 lakhs (Previous Year Rs.25.83 lakhs) has been considered as rental Income from property.

9 operating Lease

a) A sum of Rs.23.89 lakhs (Previous Year Rs.46.42 lakhs) has been debited to Rent account, being the rent paid on premises which has been taken on lease.

10 Liability no longer required shown in note 22 under the head "Other Income" includes a sum of Rs.391.80 lakhs towards provision made for additional cane cost at Pandavapura, Karnataka and Rs.37.92 lakhs as wages arrears which are no longer a liability to the Company.

11 The Company has changed the method of providing depreciation from 01st April 2014 as required by the Companies Act, 2013. Depreciation is hence provided in accordance with Schedule II for the current year as against the rates specified in Schedule XIV to the Companies Act, 1956 adopted in the previous year. As a result depreciation in the current year is lower by Rs.16.29 lakhs.

Further in respect of assets whose remaining useful life as prescribed in Schedule II to Companies Act,2013 is nil at their carrying amounts as on 01st April 2014 after retaining the residual value aggregating to Rs.148.39 lakhs (excluding deferred tax of Rs.48.14 lakhs) has been charged to Statement of Profit and Loss and included under the item "Depreciation and amortization expenses".

12 Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2014

Note 1

CORPORATE INFORMATION

Kothari Sugars and Chemicals Limited (referred to as "KSCL Ltd" or the "Company") are the Manufacturers of Sugar, Alcohol and Co-generation of power having units at Kattur and Sathamangalam, Tamilnadu.

As of March 31,2014, Parvathi Trading & Finance Co.Pvt. Ltd. owns 70.20% of the Company''s equity share capital and Kothari Sugars and Chemicals Limited is its only subsidiary.

Term Loan from banks

Term Loan from Indian Bank Rs.1,464.28 lacs (P.Y. Rs.1,500 lacs) of which Rs.1,249.96 lacs under long term borrowings and Rs.214.32 lacs under current maturity. Secured by Exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam sugar & cogeneration Unit. Balance installments 82. Rate of Interest 11.70% p.a. Amount of each installment Rs.17.86 lacs.

Term Loan from Indian Bank Rs.125.28 lacs (P.Y. Rs.148.82 lacs) of which Rs.93.72 lacs under long term borrowings and Rs.31.56 lacs under current maturity. Secured by Exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam sugar & cogeneration Unit. Balance installments 48. Rate of Interest 11.45% p.a. Amount of each installment Rs.2.63 lacs.

Interest Free Term Loan from Indian Bank Rs.2,815.87 lacs (P.Y. Rs.Nil) under Scheme for Extending Financial Assistance to Sugar units 2014. Repayment in 5 years with 2 year moratorium. Secured by exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam sugar & cogeneration Unit.

Term Loan Sugar Development Fund

Rs.1,283.10 Lacs (P.Y. Rs.1,283.10 Lacs) of which Rs.1,026.48 lacs under long term borrowings and Rs.256.62 lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties situated at Kattur,Tamil Nadu except book debts of the Company. Annual repayment in 5 equal annual installments starting from December 2014 to December 2018. Rate of Interest 4% p.a. Amount of each installment Rs.256.62 lacs. Balance installments 5.

Rs.1,283.10 Lacs (P.Y. Rs.1,283.10 Lacs) Secured by exclusive second charge on all Movable and Immovable Properties situated at Kattur, Tamil Nadu except book debts of the Company. Annual repayment in 5 equal annual installments starting from September 2015 to September 2019. Rate of Interest 4% p.a. Amount of each installment Rs.256.62 lacs. Balance installments 5.

Rs.1,376.19 Lacs( P.Y. Rs.1,720.24 lacs) of which Rs.1,032.14 lacs under long term borrowings and Rs.344.05 under current maturity secured by exclusive second charge on all Movable and Immovable Properties situated at Kattur Unit, Tamil Nadu except book debts of the Company. Repayment in 10 equal half yearly installment starting from September 2013 to March 2018 Rate of Interest 4% p.a. Amount of each installment Rs.172.02 lacs. Balance installments 8.

Rs.168 lacs (P.Y. Rs.504 lacs) of which Rs.168 Lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties situated at Kattur, Tamil Nadu except book debts of the Company. Repayment in 10 half yearly installments starting from March 2010 to September 2014. Balance Installment 1. Rate of Interest 4% p.a. Amount of each installment Rs.168 lacs.

Rs.336 lacs (P.Y. Rs.672 lacs) of which Rs.336 lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties situated at Kattur,Tamil Nadu except book debts of the Company. Repayment in 10 half yearly installments starting from September 2010 to March 2015. Balance Installment 2. Rate of Interest 4% p.a. Amount of each installment Rs.168 lacs.

Rs.33.11 lacs (P.Y. Rs.66.22 lacs) of which Rs.33.11 lacs under current maturity secured by bank Guarantee. Repayment in 4 equal annual installments from August 2011 to August 2014. Balance installments 1. Rate of Interest - 4 % Amount of each installment Rs.33.11 lacs.

Rs.116.80 lacs (P.Y. Rs.116.80 lacs) of which Rs.87.60 lacs under long term borrowing and Rs.29.20 lacs under current maturity secured by bank Guarantee Repayment in 4 annual equal installments starting from April 2014 to April 2017. Balance installments 4. Rate of Interest 4% p.a. Amount of each installment Rs.29.20 lacs.

Rs.272.79 lacs (P.Y. Rs.272.79 lacs) of which Rs.204.59 lacs under long term borrowing and Rs.68.20 lacs under current maturity. Repayment 4 equal Annual installments starting from February 2015 to February 2018. Secured by Bank Guarantee. Balance installments 4 . Rate of Interest 4% p.a. Amount of each installment Rs.68.20 lacs.

Rs.182.61 lacs (P.Y. Rs.182.61 lacs) Repayment 4 equal Annual installments starting from February 2016 to February 2019. Secured by Bank Guarantee.Balance 8 half yearly installments. Rate of Interest 6.75% p.a. Amount of each installment Rs.22.83 lacs.

Term Loan From Holding Company

Rs.821.20 lacs (P.Y. Rs.821.20 lacs ).Secured by Hypothecation of Movable properties including plant and machinery and Inventories situated at Kattur unit,Tamil Nadu. Payable in June 2029. Rate of Interest - Nil. No.of installments 1.

Rs.29.33 lacs (P.Y. Rs.146.64 lacs) of which Rs.29.33 lacs under current maturity secured by hypothecation of movable properties including plant and machinery and Inventories situated at Kattur unit, Tamil Nadu Payable in 28 equal quarterly installments Balance Installments 1. Rate of Interest - Nil Amount of each installment Rs.29.33 lacs.

Term Loan From others (unsecured)

Rs.623.15 lacs (P.Y. Rs.623.15 lacs) payable in June 2029. Rate of Interest - Nil. No.installments 1

Rs.22.26 lacs (P.Y. Rs.111.28 lacs) of which Rs.22.26 lacs under current maturity. Repayment in 28 equal quarterly installments. Balance installments 1. Rate of Interest Nil. Amount of final installment Rs.22.26 lacs.

The Company has not received information from vendors regarding their status under Micro, Small and Medium Enterprises Act 2006. The disclosures relating to amounts unpaid as at the year end together with interest payable / paid under this act could not be given.

b) Gratuity

Liability to existing employees of the Company in respect of gratuity is covered under a common insurance policy administered by a trust maintained for the participating enterprises viz. Kothari Sugars and Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL).

The actuarially valued liabilities under the Projected Unit Credit Method for the employees of the participating enterprise of the trust are calculated enterprise wise. The investments available with the underwriter are adjusted in proportion to the liability and the shortfall is provided for in the books of the participating enterprise. Consequently, the actuarial loss / gain if any relating to the other participating enterprise is also borne by every other participatory enterprise.

2. Contingent Liabilities: -

i) Excise duty demands under appeal Rs.662.70 Lakhs (Previous year Rs.614.46 Lakhs)

ii) Estimated amount of contracts remaining to be executed on capital account is Rs.1.87 lakhs (Previous year Rs.215.79 lakhs)

iii) Urban Land Tax under appeal Rs.42.33 Lakhs (Previous year Rs.40.28 Lakhs)

iv) Customs duty under appeal Rs.73.39 Lakhs (Previous year Rs.73.39 Lakhs )

v) Electricity Generation Tax Rs.1191.31 Lakhs (Previous year Rs.1086 Lakhs)

vi) Electricity Tariff revision Rs.284.11 Lakhs (Previous year Rs. Nil)

3. Notes Relating to Segment

i) Business segments

The Company has considered business segments as the primary segments for disclosure. The business segments are:

Sugar, Power generation and Distillery.

Sugar segment comprises of sugar and molasses, Power segment comprise generation of power from bagasse and coal and Distillery segment comprises of rectified spirit and denatured spirit.

The above segments have been identified taking into account the organization structure as well as the differing risks and returns of these segments

ii) Geographical Segments

The geographical segment considered for disclosure is India and Rest of the world. All the manufacturing facilities and sales offices are located in India. Sales to the rest of the world are also serviced by Indian sales offices.

Geographical revenues are segmented based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognized .

iii) Segmental assets includes all operating assets used by respective segment and consists principally of operating cash, debtors, inventories and fixed assets net of allowances and provisions. Segmental liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities.

Refer Separate workings on Segment Results - Annexure - I at Page No. 43

4. Related Party Disclosures:

Refer separate workings on Related party Transactions - Annexure - ii at page No. 44

5. Rental Income

A sum of Rs.25.83 lakhs (Previous Year Rs.23.98 lakhs) has been considered as rental Income from property.

6. operating Lease

a) A sum of Rs.46.42 lakhs (Previous Year Rs.64.96 lakhs) has been debited to Rent account, being the rent paid on premises which has been taken on operating lease.

7. Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2013

CORPORATE INFORMATION

Kothari Sugars and Chemicals Limited (referred to as "KSCL" or the "Company") are the Manufacturers of Sugar, Alcohol and Co-generation of power having units at Kattur and Sathamangalam, Tamilnadu.

1. Employee Benefits:

The following table sets forth the status of the unavailed earned leave and Gratuity plan of the Company and the amounts recognized in the Balance sheet and Profit and loss Account:

2. contingent liabilities: -

(i) Excise duty demands under appeal Rs.614.46 Lacs (P.Y Rs.545.12 Lacs)

(ii) Estimated amount of contracts remaining to be executed on capital account is Rs.215.79 Lacs (P.Y. Nil)

(iii) Urban Land Tax under appeal Rs.40.28 Lacs (P.Y. Rs.37.23 Lacs)

(iv) Customs duty under appeal Rs.73.39 Lacs (P.Y. Rs.73.39 Lacs )

(v) Electricity Generation Tax Rs.1,086 Lacs (P.Y. Rs.225.59 Lacs)

3. notes Relating to segment

(i) Business Segments

The Company has considered business segments as the primary segments for disclosure. The business segments are:

Sugar, Power generation and Distillery.

Sugar segment comprises of sugar and molasses, Power segment comprise generation of power from bagasse and coal, Distillery segment comprises of rectified spirit and denatured spirit.

The above segments have been identified taking into account the organization structure as well as the differing risks and returns of these segments V J

(ii) geographical segments

The geographical segment considered for disclosure is India and Rest of the world. All the manufacturing facilities and sales offices are located in India. Sales to the rest of the world are also serviced by Indian sales offices.

Geographical revenues are segmented based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognized .

(iii) Segmental assets includes all operating assets used by respective segment and consists principally of operating cash, debtors, inventories and fxed assets net of allowances and provisions. Segmental liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities.

Refer separate workings on segment Results - Annexure - i at page no.43

4. Related party disclosures:

Refer Separate workings on Related party Transactions – Annexure – II at Page No.44

5. Rental income

A sum of Rs.23.98 lacs (P.Y Rs.22.47 lacs) has been considered as rental Income from property.

6. operating lease

a) A sum of Rs.64.96 lacs (P.Y. Rs.47.49 lacs) has been debited to Rent account, being the rent paid on premises which has been taken on operating lease.

b) Maximum Lease payments in respect of vehicle purchased under hire purchase is as under:

7. Previous year fgures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2012

Term Loan from Banks

Term Loan from Indian Bank Nil (P.Y. Rs. 1333.62 lacs) and Rs. 524.14 lacs under current maturity. Secured by Exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam Sugar & Cogeneration Unit, Tamil Nadu. Balance installment is 3. Rate of Interest 12% p.a. Amount of each instalment is Rs. 202 lacs.

Term Loan from Sugar Development Fund

i) Rs. 2,566.20 Lacs (P.Y. Rs. 2,566.20 Lacs) Secured by exclusive second charge on all Movable and Immovable Properties situated at Kattur,Tamil Nadu, except book debts of the Company. Annual repayment in 5 equal annual installments starting from December 2014 to September 2019. Rate of Interest 4% p.a. Amount of each installment Rs. 513.24 lacs. Balance installments is 5.

ii) Rs. 1,720.24 Lacs( P.Y. Rs. 1,720.24 lacs) Secured by exclusive second charge on all Movable and Immovable Properties situated at Kattur Unit, Tamil Nadu, except book debts of the Company. Repayment in 5 equal annual installments starting from July 2019 to July 2023 Rate of Interest 4% p.a. Amount of each installment Rs. 344.05 lacs. Balance installments is 5.

iii) Rs. 840 lacs (P.Y. Rs. 1,176 lacs) of which Rs. 504 Lacs under long term borrowings and Rs. 336 lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties situated at Kattur,Tamil Nadu, except book debts of the Company. Repayment in 10 half yearly installments starting from March 2010 to September 2014. Balance Installments is 5. Rate of Interest 4% p.a. Amount of each installment Rs. 168 lacs.

iv) Rs. 1,008 lacs (P.Y. Rs. 1344 lacs) of which Rs. 672 Lacs under long term borrowings and Rs. 336 lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties situate at Kattur, Tamil Nadu, except book debts of the Company. Repayment in 10 half yearly equal installments starting from September 2010 to March 2015. Balance installments is 6. Rate of Interest 4% p.a. Amount of each installment Rs. 168 lacs.

v) Rs. 73.20 lacs under current maturities of long term debt (P.Y. Rs. 146.40 Lacs) Secured by bank Guarantee. Repayment in 8 equal half yearly installments from May 2009 to November 2012. Balance installments is 2. Rate of Interest-4 % p.a. Amount of each installment Rs. 36.60 lacs.

vi) Rs 99.34 lacs (P.Y. Rs. 132.45 lacs) of which Rs. 66.34 Lacs under long term borrowings and Rs. 33 lacs under current maturity secured by bank Guarantee. Repayment in 4 equal annual installments from August 2011 to August 2014. Balance installments is 3. Rate of Interest-4 % p.a. Amount of each installment Rs. 33.11 lacs.

vii) Rs. 116.80 (P.Y. Nil) Secured by bank Guarantee Repayment in 4 Annual Equal Installments starting from April 2014 to April 2017. Balance installments is 4. Rate of Interest - 4% p.a. Amount of each installment Rs. 29.20 lacs.

viii) Rs. 103.61 lacs (P.Y. Rs. 172.69 lacs) of which Rs. 34.54 Lacs under long term borrowings and Rs. 69.07 lacs under current maturity secured by bank Guarantee. Repayment in 8 half yearly installments starting from January 2010 to July 2013. Balance installments is 3. Rate of Interest-4% p.a. Amount of each installment Rs. 34.54 lacs

ix) Rs. 80 lacs (P.Y. Rs. 120 lacs) of which Rs. 40 Lacs under long term borrowings and Rs. 40 lacs under current maturity. Repayment in 4 equal annual Installments starting from October 2010 to October 2013. Balance installments is 2. Rate of Interest-4% p.a. Amount of each installment Rs. 40 lacs.

x) Rs. 272.79 lacs (P.Y. year Rs. Nil) Repayment 4 equal Annual Installments starting from February 2015 to February 2018. Balance installments is 4. Rate of Interest-4% p.a. Amount of each installment Rs. 68.20 lacs.

Term Loan from Holding Company

i) Rs. 821.20 lacs (P.Y. Rs. 821.20 lacs). Secured by Hypothecation of Movable properties and Inventories situated at Kattur unit, Tamil Nadu. Payable in June 2029. Rate of Interest - Nil.

ii) Rs. 263.96 lacs (P.Y. Rs. 381.26 lacs) of which Rs. 146.64 Lacs under long term borrowings and Rs. 117.32 lacs under current maturity secured by hypothecation of movable properties and Inventories situated at Kattur unit, Tamil Nadu Payable in 28 equal quarterly installments Balance Installments is 9. Rate of Interest is Nil. Amount of each installment Rs. 29.33 lacs.

Term Loan from Others (Unsecured)

i) Rs. 623.15 lacs (P.Y. Rs. 623.15 lacs) payable in June 2029. Rate of Interest is Nil.

ii) Rs. 200.30 lacs (P.Y. Rs. 289.31 lacs) of which Rs. 111.28 Lacs under long term borrowings and Rs. 89.02 lacs under current maturity. Repayment in 4 equal quarterly installments. Balances installments is 9. Rate of Interest is Nil. Amount of each installment Rs. 22.26 lacs.

1. Employee Benefits:

Liability to existing employees of the Company in respect of gratuity is covered under a common insurance policy administered by a trust maintained for the participating enterprises viz. Kothari Sugars and Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL).

The actuarially valued liabilities under the Projected Unit Credit Method for the employees of the participating enterprise of the trust are calculated enterprise wise. The investments available with the underwriter are adjusted in proportion to the liability and the shortfall is provided for in the books of the participating enterprise. Consequently, the actuarial loss/gain if any relating to the other participating enterprise is also borne by every other participatory enterprise.

The following table sets forth the status of the un-availed earned leave and Gratuity plan of the Company and the amounts recognized in the Balance sheet and Statement of Profit and loss.

2. Contingent Liabilities:-

(a) Excise duty demands under appeal Rs. 545.12 Lakhs (P.Y. Rs. 613.59 Lakhs).

(b) Estimated amount of Contracts remaining to be executed on Capital Account and not provided for Rs. Nil (P.Y. Rs. 2.02 Lakhs)

(c) Urban Land Tax under appeal Rs. 37.23 Lakhs (P.Y. Rs. 36.18 Lakhs.)

(d) Customs Duty under appeal Rs. 73.39 Lakhs (P.Y. Rs. 73.39 Lakhs. )

(e) Electricity Generation Tax Rs. 225.59 Lakhs

(f) Bank Guarantees Rs. 1,610.05 lakhs (P.Y. Rs. 2,437.24 lakhs)

3. Notes Relating to Segment

i) Business Segments

The Company has considered business segments as the primary segments for disclosure. The business segments are:

Sugar, Power generation and Distillery.

Sugar segment comprise Sugar and Molasses, Power segment comprise generation of power from Bagasse and Coal and Distillery segment comprises of rectified spirit and denatured spirit.

The above segments have been identified taking into account the organization structure as well as the differing risks and returns of these segments

ii) Geographical Segments

The geographical segment considered for disclosure is India and Rest of the world. All the manufacturing facilities and sales offices are located in India. Sales to the rest of the world are also serviced by Indian sales offices.

Geographical revenues are segmented based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognized.

iii) Segmental assets includes all operating assets used by respective segment and consists principally of operating cash, debtors, inventories and fixed assets net of allowances and provisions. Segmental liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities.

Refer Separate workings on Segment results-Annexure-I at Page No. 42

4. Related Party Disclosures

Refer Separate workings on Related party transactions-Annexure-II at Page No. 43

5. Consequent to the notification under the Companies Act, 1956, the financial statements for the year ended 31st March 2012 are prepared under revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification.

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Mar 31, 2011

1. Debentures / Zero Coupon Bonds

Debentures / Zero Coupon Bonds are secured by the first charge on all movable and immovable properties except book debts of the Company situated in the State of Gujarat and Tamilnadu and Fixed Assets situated at Kattur

2. Term Loans

(a) Loan from Sugar Development Fund (Government of India) for modernization / expansion / Cogeneration amounting to Rs.7,377.98 lacs (Previous year Rs. 6,512.02 lacs) of which Rs.6,806.44 is secured by an exclusive second charge on all movable and immovable properties except book debts of the Company situated at Kattur,Tamilnadu and Rs.571.54 Lacs is secured by guarantee from Indian Bank.

(b) Loan from Indian Bank of Rs.4,341.51 lacs (previous Rs. 4,970.50 lacs) consists of the following:.

i. Loan for modernisation / expansion / Cogeneration amounting to Rs. 1,333.62 Lacs (Previous year Rs. 2,035.66 lacs) is secured by exclusive first charge on the whole of the Land, Buildings and Plant and Machinery and all movable properties (present & future) of the Sathamangalam Sugar & Cogeneration unit.

ii. Medium Term Loan (Central Excise) of Rs. 984.52 lacs (Previous year Rs. 2,384.08 lacs) is secured by exclusive first charge on the whole of the Land, Buildings and Plant and Machinery and all movable properties (present & future) of the Sathamangalam Sugar & Cogeneration unit.

iii. Open Cash Credit of Rs.2023.37 lacs (Previous year Rs. 550.76) is secured by exclusive first charge on the whole of the Land, Buildings and Plant and Machinery and all movable properties (present & future) of the Sathamangalam Sugar & Cogeneration unit.

(c) Loan from Holding Company is secured on the hypothecation of movable properties including movable Plant and Machinery and inventories situated at Kattur unit.

(d) Unsecured Loans except Irrigation loan are Interest free.

3. Capital Redemption Reserve:

A Sum of Rs.100 lacs (Previous Year Rs.207.71 lacs) has been appropriated towards the above reserve on redemption of Preference Shares as per AAIFR order dated 17-06-2004.

4. Employee Benefits:

Liability to existing employees of the Company in respect of gratuity is covered under a common insurance policy administered by a trust maintained for the participating enterprises viz. Kothari Sugars and Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL)

The actuarially valued liability under the Projected Unit Credit Method for the employees of the participating enterprise of the trust is calculated enterprise wise. The investments available with the underwriter are adjusted in proportion to the liability and the shortfall is provided for in the books of the participating enterprise. Consequently, the acturial loss / gain if any relating to the other participating enterprise is also borne by every other participatory enterprise.

The following table sets forth the status of the unavailed earned leave and Gratuity plan of the Company and the amounts recognized in the Balance sheet and Profit and loss Account:

5. Contingent Liabilities: -

(a) The hike in the basic minimum price of sugarcane for the sugar year 2002-03 after fixation of statutory minimum price notified by the Central Government on 9th January 2003 has been legally challenged by the South Indian Sugar Mills Association (of which the company is a member), and the matter is subjudice. Based on legal advice, pending disposal of the case no provision has been considered for the same in the books. The amount is not quantifiable at this stage.

(b) Excise duty demands under appeal Rs 613.59 Lacs (Rs.193.99 Lacs).

(c) Estimated amount of Contracts remaining to be executed on Capital Account & not provided for, amount to Rs.2.02 Lacs (Rs.24.79 Lacs).

(d) Urban Land Tax under appeal Rs. 36.18 Lacs.(previous year Rs.34.13 Lacs).

(e) Customs Duty under appeal Rs.73.39 Lacs. ( Rs.73.39 Lacs).

(f) Other Contingent Liabilities:

(Rs.in Lakhs)

Contingent Liability 31-03-2011 31-3-2010

Guarantees to banks on behalf of Subsidiary Nil 600.00

Bank Guarantees/ Letter of 2437.24 1055.55 credit

(a) Notes Relating to Segment

(i) Business Segments

The company has considered business segments as the primary segments for disclosure. The business segments are:

Sugar, Power generation and Distillery.

Sugar segment comprises of sugar and molasses, Power segment comprise generation of power from bagasse and coal and Distillery segment comprises of rectified spirit and denatured spirit.

The above segments have been identified taking into account the organisation structure as well as the differing risks and returns of these segments

(ii) Geographical Segments

The geographical segment considered for disclosure is India and Rest of the world. All the manufacturing facilities and sales offices are located in India. Sales to the rest of the world are also serviced by Indian sales offices.

Geographical revenues are segmented based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognised.

(iii) Segmental assets includes all operating assets used by respective segment and consists principally of operating cash, debtors, inventories and fixed assets net of allowances and provisions. Segmental liabilities include all operat- ing liabilities and consist primarily of creditors and accrued liabilities.

6. (a) Related Party Disclosures:

As per Accounting Standard - 18 (AS-18) Issued by the Institute of Chartered Accountants of India, the Company's related parties are disclosed below

Sl. Description of Name of Related Party No. Related Party

1. Holding Company Parvathi Trading & Finance Co Pvt. Limited

2. Key Management Personnel Mr.B.H.Kothari

3. Subsidiary Company Kothari International Trading Limited

4. Entities having significant influence (i) Kothatari Bio-Tech Limited

(ii) Kothatari Safe Deposit Limited (iii) Kothari Petrochemicals Limited (iv) Century Foods Pvt. Limited

7. A sum of Rs.556.88 Lacs was paid to DRAT, Mumbai for discharging its liability towards the Corporate Guarantee given to the Oman International Bank in respect of advances given to the its wholly owned Subsidiary (Kothari International Trading Limited) by the bank. This sum has been debited to the profit and loss account.

8. Previous year figures have been regrouped and rearranged wherever necessary to Confirm to the classificaion for the year

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Mar 31, 2010

1. Debentures / Zero Coupon Bonds

Debentures / Zero Coupon Bonds are secured by the first charge on all movable and immovable properties except book debts of the Company situated in the State of Gujarat and Tamilnadu and Fixed Assets situated at Kattur.

2. Term Loans

(a) Loan from Sugar Development Fund (Government of India) for modernization / expansion / Cogeneration amounting to Rs.6512.02 lacs (Previous year Rs. 6627.75 lacs) of which Rs.5758.20 is secured by an exclusive second charge on all movable and immovable properties except book debts of the Company situated at Kattur, Tamilnadu and Rs.753.82 Lacs is secured by guarantee from Indian Bank.

(b) Loan from Indian Bank of Rs. 4970.50 lacs (previous Rs. 4753.54 lacs) consists of the following.

1. Loan for modernisation/expansion/Cogeneration amounting to Rs. 2035.66 Lacs (Previous year Rs. 2038.60 lacs) is secured by exclusive first charge on the whole of the Land, Buildings and Plant and Machinery and all movable properties (present & future) of the Sathamangalam Sugar & Cogeneration unit.

2. Medium Term Loan (Central Excise) of Rs. 2384.08 lacs (Previous year Rs. 2714.94 lacs) is secured by exclusive first charge on the whole of the Land, Buildings and Plant and Machinery and all movable properties (present & future) of the Sathamangalam Sugar & Cogeneration unit.

3. Short term loan Indian Bank of Rs.550.76 lacs (Previous year Rs. Nil) is secured by exclusive first charge on the whole of the Land, Buildings and Plant and Machinery and all movable properties (present & future) of the Sathamangalam Sugar & Cogeneration unit.

(c) Loan from Holding Company is secured on the hypothecation of movable properties including movable Plant and Machinery and inventories situated at Kattur unit.

(d) Unsecured Loans except Agriculture and Irrigation loan are Interest free.

3. Capital Redemption Reserve:

A Sum of Rs. 207.71 lacs (Previous Year Rs. 9.17 lacs) has been appropriated towards the above reserve on redemption of Preference Shares as per AAIFR order dated 17-06-2004.

4. Employee Benefits:

Liability to existing employees of the company in respect of gratuity is covered under a common insurance policy in favour of Kothari Sugars & Chemicals Gratuity Trust. The cumulative liability of the employees is actuarially valued by the trust under projected unit credit method. Investments available for policy and contribution being effected are adequate to cover the liability of the employees.

The following table sets forth the status of the unavailed earned leave and Gratuity plan of the Company and the amounts recognized in the Balance sheet and Profit and loss Account:

5. Contingent Liabilities: -

(a) The hike in the basic minimum price of sugarcane for the sugar year 2002-03 after fixation of statutory minimum price notified by the Central Government on 9th January 2003 has been legally challenged by the South Indian Sugar Mills Association (of which the company is a member), and the matter is subjudice. Based on legal advice, pending disposal of the case no provision has been considered for the same in the books. The amount is not quantifiable at this stage.

(b) Excise duty demands under appeal Rs 193.99 Lacs (Rs. 275.52 Lacs).

(c) Income Tax demands under appeal Rs.Nil ( Rs. 178.64 Lacs)

(d) Claims against the company not acknowledged as debt amount to Rs Nil (Rs. 1.98 Lacs)

(e) Estimated amount of Contracts remaining to be executed on Capital Account & not provided for, amount to Rs.24.79 Lacs (Rs.28.51 Lacs).

(f) Urban Land Tax under appeal Rs. 34.13 Lacs.(previous year Rs.32.08 Lacs).

(g) Customs Duty under appeal Rs.73.39 Lacs. ( Rs.73.39 Lacs).

(h) Other Contingent Liabilities:

Rs. in Lacs



Contigent Liability 31-03-2010 31-3-2009

Guarantees to banks on behalf of ther companies 600.00 600.00

Bank Guarantees/ Letter of credit 1055.55 846.20

Corporate Guarantees to banks on behalf of farmers Nil 634.00

6. The company has not received information from vendors regarding their status under Micro small and medium enterprises Act 2006, the disclosures relating to amounts unpaid as at the year end together with interest payable/paid under this Act have not been given.

7. Other income includes liabilities / provisions no longer required written back during the year Rs.Nil (Previous year Rs.102.81 lacs)

8. (a) Segment Disclosure

(a) Notes Relating to Segment

(i) Business Segments

The company has considered business segments as the primary segments for disclosure. The business segments are : Sugar, Power and Distillery.

Sugar segment comprises of Sugar and Molasses, Power segment comprise generation of power from bagasse and coal and Distillery segment comprises of rectified spirit and denatured spirit.

The above segments have been identified taking into account the organisation structure as well as the differing risks and returns of these segments

(ii) Geographical Segments

The geographical segment considered for disclosure is India and Rest of the world. All the manufacturing facilities and sales offices are located in India. Sales to the rest of the world are also serviced by Indian sales offices.

Geographical revenues are segmented based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognised.

Segmental assets includes all operating assets used by respective segment and consists principally of operating cash, debtors, inventories and fixed assets net of allowances and provisions. Segmental liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities.

9. (a) Related Party Disclosures:

As per Accounting Standard - 18 (AS-18) Issued by the Institute of Chartered Accountants of India, the Companys related parties are disclosed below:

10. Provision for Taxation:

Deferred Tax:

To comply with the Accounting Standard 22 accounting for taxes on income the Company estimates the deferred tax charge/(credit) using the substantially enacted tax rate applicable rate of taxation based on the impact of timing differences between financial statements and estimated taxable income for the current year.

11. Operating Lease:

The Company had entered into an agreement for Lease of Sugar Factory with an installed capacity of 3500 TCD for a period of seven years (Up to 31-03-2013) with "The Pandavapura Sahakari Sakkare Karhane Niyamit, a Co- operative society registered under the Karnataka Co-operative Societies Act,1959, with its registered office at Pandavapura RS, Pandavapura Taluk, Mandya Dist. The Company has surrendered the lease and necessary formalities have been completed and the effects of annulment of lease are reflected in the financial statements.

STATEMENT PURSUANT TO SECTION 212(1)(e) OF THE COMPANIES ACT, 1956 RELATING TO SUBSIDIARY COMPANIES

Holding Company : Kothari Sugars and Chemicals Limited

Subsidiary Companies : Kothari International Trading Limited (KITL)

Name of the Subsidiary Company KITL

1. Financial Year of the Subsidiary Company ended on 31.03.2010

2. Year from which they become Subsidiary Company 1996

3. Share of the Subsidiary Company (KITL) held by the holding company KSCL at the end of the Financial Year of Subsidiary Company :

a. Number of shares 999,950

b. Face Value of shares Rs.10/- c. Extent of Interest of holding company 99.99%

d. Quoted / Unquoted Unquoted

4. The net aggregate amount of profit and loss for the

subsidiary so far as its concerns members of the holding company.

a. Not dealt with holding Companys accounts

1. For the financial year ended 31.03.2010 (0.48)

2. For the previous Financial year of the Subsidiary Company (1.39)

since they became the holding Companys subsidiary.

b. Dealt within the holding Companys accounts

1. For the financial year ended 31.03.2010 Nil

2. For the previous Financial year of the Subsidiary Company Nil since they became the holding Companys subsidiary.

5. a. Holding Companys interest in Subsidiary as at end of the Not Applicable

Financial year of Holding Company.

b. Material changes in respect of Subsidiary

1. Fixed Assets No Change

2. Investments No Change

3. Moneys lent No Change

4. Moneys Borrowed No Change

12. Previous year figures have been regrouped and rearranged wherever necessary to confirm to the classification for the year.