Notes to Accounts of Rana Sugars Ltd.

Mar 31, 2025

2.5.11 Provisions:

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a
past event, Itis probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects
some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is
recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a
provision is presented in the statement of profit and loss net of any reimbursement.

Provisions are not discounted to their present value and are determined based on the best estimate required to
settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to
reflect the best estimate.

Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or
a present obligation that is not recognized because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises in extremely rare cases, where there is a
liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a
contingent liability but discloses its existence in the financial statements unless the probability of outflow of
resources is remote.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

2.5.12 Employee Benefits:

2.5.12.1Short term obligations:

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

2.5.12.2 Other Long term employee benefit obligations:

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service. They are therefore measured based on the actuarial
valuation using projected unit credit method at the year end. The benefits are discounted using the market
yields at the end of the reporting period that have terms approximating to the term of the related obligation.
Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognized in
profit or loss.

2.5.12.3 Post-employment obligations: The Company operates the following post-employment schemes:

2.5.12.3.1 Defined benefit plans such as gratuity; and

2.5.12.3.2 Defined contribution plans such as provident fund.

Gratuity Obligations:

Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on
projected unit credit method made at the end of each financial year. The Company has also made contribution
to Life Insurance Corporation (LIC) and SBI Life Insurance Company Limited towards a policy to cover the
gratuity liability of the employees to an extent. The difference between the actuarial valuation of the gratuity of
employees at the year-end and the balance of funds with LIC is provided for as liability in the books.

Remeasurements, (refer note no. 28D) comprising of actuarial gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on the net defined benefit liability and the return on plan assets
(excluding amounts included in net interest on the net defined benefit liability), are recognized immediately in
the Balance Sheet with a corresponding debit or credit to retained earnings through OCI in the period in which
they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

Net interest is calculated by applying the discount rate to the net defined benefit (liabilities/assets). The
Company recognized the following changes in the net defined benefit obligation under employee benefit
expenses in statement of profit and loss

i. Service cost comprising current service cost, past service cost, gain & loss on curtailments and non-routine
settlements.

ii. Net interest expenses or income

2.5.13 Revenue Recognition:

The Company earns revenue primarily from sales of sugar, ethanol and power.

Revenue is recognized upon transfer of control of promised products or services to customers in an amount
that reflects the consideration which the Company expects to receive in exchange for those products or
services.

Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts,
price concessions and incentives, if any, as specified in the contract with the customer. Revenue also excludes
taxes collected from customers.

Contract assets are recognized when there is excess of revenue earned over billings on contracts.

Contract assets are classified as unbilled receivables (only act of invoicing is pending) when there is
unconditional right to receive cash, and only passage of time is required, as per contractual terms.

Unearned and deferred revenue ("contract liability”) is recognized when there is a billing in excess of revenues.

Contracts are subject to modification to account for changes in contract specification and requirements. The
Company reviews modification to contract in conjunction with the original contract, basis which the transaction
price could be allocated to a new performance obligation, or transaction price of an existing obligation could
undergo a change. In the event transaction price is revised for existing obligation, a cumulative adjustment is
accounted for.

Interest income:

For all debt instruments measured either at amortized cost or at fair value through other comprehensive
income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts
the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter
period, where appropriate, to the gross carrying amount of the financial asset or to the amortized cost of a
financial liability. When calculating the effective interest rate, the company estimates the expected cash flows
by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call
and similar options) but does not consider the expected credit losses. Interest income is included in finance
income in the statement of profit and loss.

Use of significant judgments in revenue recognition

¦ The Company''s contracts with customers could include promises to transfer multiple products to a
customer. The Company assesses the products promised in a contract and identifies distinct performance
obligations in the contract. Identification of distinct performance obligation involves judgement to
determine the deliverables and the ability of the customer to benefit independently from such deliverables.

¦ Judgement is also required to determine the transaction price for the contract. The transaction price could
be either a fixed amount of customer consideration or variable consideration with elements such as
volume discounts, price concessions and incentives. The transaction price is also adjusted for the effects of
the time value of money if the contract includes a significant financing component. Any consideration
payable to the customer is adjusted to the transaction price, unless it is a payment for a distinct product or
service from the customer. The estimated amount of variable consideration is adjusted in the transaction
price only to the extent that it is highly probable that a significant reversal in the amount of cumulative
revenue recognized will not occur and is reassessed at the end of each reporting period. The Company
allocates the elements of variable considerations to all the performance obligations of the contract unless
there is observable evidence that they pertain to one or more distinct performance obligations

¦ The Company uses judgement to determine an appropriate standalone selling price for a performance
obligation. The Group allocates the transaction price to each performance obligation on the basis of the
relative stand-alone selling price of each distinct product promised in the contract. Where standalone
selling price is not observable, the Company uses the expected cost plus margin approach to allocate the
transaction price to each distinct performance obligation.

¦ The Company exercises judgement in determining whether the performance obligation is satisfied at a
point in time or over a period of time. The Company considers indicators such as who controls the asset as
it is being created or existence of enforceable right to payment for performance to date and alternate use of
such product, transfer of significant risks and rewards to the customer, acceptance of delivery by the
customer, etc.

2.5.14 Leases

Company as a Lessee

The Company, as a lessee, recognises a right-of-use of asset and a lease liability for its leasing arrangements, if
the contract conveys the right to control the use of an identified asset. The contract conveys the right to control
the use of an identified asset, if it involves the use of an identified asset and the Company has substantially all of
the economic benefits from use of the asset and has right to direct the use of the identified asset. The cost of the
right-of-use asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any
lease payments made at or before the commencement date plus any initial direct costs incurred. The right-of-
use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment
losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use asset is depreciated
using the straight-line method from the commencement date over the shorter of lease term or useful life of
right-of-use asset.

The Company measures the lease liability at the present value of the lease payments that are not paid at the
commencement date of the lease. The lease payments are discounted using the interest rate implicit in the
lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses
incremental borrowing rate. For short-term and low value leases, the Company recognizes the lease payments
as an operating expense on a straight-line basis over the lease term.

Company as a Lessor

Lease income from operating lease where the Company is a lessor is recognized in income or a straight line
basis over the lease term unless the receipts are structured to increase in line with expected general inflation to
compensate the lessor for the expected inflationary cost increases. The respective leased assets are included in
the balance sheet based on their respective nature.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer
from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables as
the Company''s net investment in the leases. Finance lease income is allocated to accounting periods to reflect a
constant periodic rate of return on the net investment outstanding in respect of the lease.

2.5.15 Fair Value Measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based on the
presumption that the transaction to sell the asset or transfer the liability takes place either:

i. In the principal market for the asset or liability, or

ii. In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant
that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient date
are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:

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

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

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

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization

(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.

The Company''s management determines the policies and procedures for both recurring and non-recurring fair
value measurement, such as derivative instruments measured at fair value.

External valuers are involved for valuation of significant assets, such as properties and financial assets and
significant liabilities. Involvement of external valuers is decided upon annually by the management. The
management decided, after discussions with the Company''s external valuers which valuation techniques and
inputs to use for each case.

At each reporting date, the management analyses the movements in the values of assets and liabilities which
are required to be remeasured or re-assessed as per the Company''s accounting policies.

The management in conjunction with the Company''s external valuers, also compares the change in the fair
value of each asset and liability with relevant external sources to determine whether the change is reasonable.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as
explained above.

2.5.16 Borrowing Costs:

Borrowing cost includes interest expense as per effective interest rate [EIR]. Borrowing costs directly
attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as part of the cost of the asset until such time that
the asset are substantially ready for their intended use. Where funds are borrowed specifically to finance a
project, the amount capitalized represents the actual borrowing incurred. Where surplus funds are available
out of money borrowed specifically to finance project, the income generated from such current investments is
deducted from the total capitalized borrowing cost. Where funds used to finance a project form part of general
borrowings, the amount capitalized is calculated using a weighted average of rate applicable to relevant general
borrowing of the Company during the year. Capitalisation of borrowing cost is suspended and charged to profit
and loss during the extended periods when the active development on the qualifying project is interrupted. All
other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and
other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes
exchange differences arising from foreign currency borrowings to the extent that they are regarded as an
adjustment to the borrowing costs.

2.5.17 Impairment of Non-Financial Assets:

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing for an asset is required, the Company estimates the
asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s
(CGU) fair value less costs of disposal and its value in use.

Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that
are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or
CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable
amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset.

In determining fair value less costs of disposal, recent market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by
valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

The Company basis its impairment calculation on detailed budgets and forecast calculations, which are
prepared separately for each of the Company''s CGUs to which the individual assets are allocated. These budgets
and forecast calculations generally cover a period of five years. For longer periods, a long-term growth rate is
calculated and applied to project future cash flows after the fifth year. To estimate cash flow projections beyond

periods covered by the most recent budgets/forecasts, the Company extrapolates cash flow projections in the
budget using a steady or declining growth rate for subsequent years, unless an increasing rate can be justified.
In any case, this growth rate does not exceed the long-term average growth rate for the products, industries, or
country or countries in which the entity operates, or for the market in which the asset is used.

Impairment losses of operations, including impairment on inventories, are recognized in the statement of profit
and loss, except for properties previously revalued with the revaluation surplus taken to OCI. For such
properties, the impairment is recognized in OCI up to the amount of any previous revaluation surplus.

After impairment depreciation is provided on the revised carrying amount of the asset over its remaining
economic life.

An assessment is made in respect of assets at each reporting date to determine whether there is an indication
that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the
Company estimates the asset''s or CGU''s recoverable amount. A previously recognized impairment loss is
reversed only if there has been a change in the assumptions used to determine the asset''s recoverable amount
since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset
does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net
of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is
recognized in the statement of profit or loss unless the asset is carried at a revalued amount, in which case, the
reversal is treated as a revaluation increase.

2.5.18 Government Grants:

Government grants are recognized where there is reasonable assurance that the grant will be received and all
attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income
on a systematic basis over the periods that the related costs, for which it is intended to compensate, are
expensed. When the grant relates to an asset, it is recognized as income in equal amounts over the expected
useful life of the related asset. However, if any export obligation is attached to the grant related to an asset, it is
recognized as income on the basis of accomplishment of the export obligation.

When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair value
amounts and released to profit or loss over the expected useful life in a pattern of consumption of the benefit of
the underlying asset i.e. by equal annual installments.

2.5.19 Earnings per share

Basic and diluted earnings per Equity Share are computed in accordance with Indian Accounting Standard 33
''Earnings per Share'', notified accounting standard by the Companies (Indian Accounting Standards) Rules of
2015 (as amended). Basic earnings per share is calculated by dividing the net profit or loss attributable to
equity holder of company (after deducting preference dividends and attributable taxes, if any) by the weighted
average number of equity shares outstanding during the period. Partly paid equity shares are treated as a
fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid
equity share during the reporting period. The weighted average number of equity shares outstanding during
the period is adjusted for events such as bonus issue, bonus element in a right issue, share split, and reverse
share split (consolidation of shares) that have changed the number of equity shares outstanding, without a
corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss; for the period attributable to
equity shareholders of the company and the weighted average number of shares outstanding during the period
are adjusted for the effects of all dilutive potential equity shares.

2.5.20 Segment Reporting:

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker (CODM).

The Board of Directors (BOD) of the Company has appointed an executive committee which assesses the
financial performance and the position of the Company, and makes strategic decisions. The executive
committee, which has been identified as being the CODM, consists of the Managing Director, Director and Chief
Financial Officer for corporate planning.

Note: Nature of Securities for the aforesaid secured loans repayable on demand

(a) Zila Sahakari Bank Limited Ghaziabad - For Units in Uttar Pradesh

Working Capital loans from Zila Sahakari Bank Ltd. Ghaziabad are secured by pledge of crystal sugar and hypothecation of
all other current assets at Sugar Units in District Moradabad and Rampur (UP) respectively.

(b) UCO Bank - For Units in District Amritsar & Tarantaran

Working Capital Loans from UCO Bank are secured by hypothecation of stocks of raw materials, Stock in process and
finished goods lying in the borrower''s godowns, factory situated at Punjab Units, Stock-in-transit and Stock lying at other
places with prior permission of the bank. The limits are further secured by hypothecation of Trade receivables

(c) Union Bank of India - For Units in District Amritsar & Tarantaran

Overdraft limit from Union bank of India is secured against fixed deposit exclusively in favour of bank.

(d) Uttar Pradesh Co-op. bank Limited, Lucknow - For Units in Uttar Pradesh

Working capital limits from Uttar Pradesh Co-op. bank Limited, Lucknow are secured by pledge of sugar stock at sugar units
in district Moradabad and Rampur respectively and stock of Finished Goods & Raw Material related to Ethanol lying at
Distillery unit in district Moradabad. The limits are also secured by hypothecation of current assets of the company on first
pari-passu charge basis with IREDA, UCO Bank and Zila Sahakari Bank Limited, Ghaziabad except for trade receivables of
Power relating to Uttar Pardesh Power Corporation Limited which are charged exclusively in favour of IREDA and sugar
stock pledged to Zila Sahakari Bank Limited, Ghaziabad.

(e) Overdraft limit from ICICI Bank is secured against fixed deposit exclusively in favour of bank.

(f) Working Capital Loans from Banks are further secured by personal guarantee of promoters / directors.

These are the estimated figures in respect of the matter above and future cash outflows are determinable only on
receipt of judgement / decisions pending at various forum/ authorities and subject to the demand of interest and
possible waivers granted by the respective authorities.

f) Securities & Exchange Board of India Conducted an investigation into the affairs of the Company to examine any
diversion of funds to promoters & promoters related entities, resulting in violation of SEBI - LODR Regulations
and passed an order against the company and levied a Penalty on the Company Rs.7.00 crores. The Company has
challenged the alleged order before Securities Appellate Tribunal (SAT). SAT has passed an order conveyed that
no coercive action should be taken against the Company till the disposal of appeal. The Company foresee no
financial impact in near term on the cash flows of the company.

g) Financial Guarantees

The Company has given guarantees for term loan availed by a Company in which relative of the Directors were
interested. The maximum amount guaranteed is INR 7440 Lakhs (P.Y. INR 9956 Lakhs). The carrying amount of
the related financial guarantees contract were INR 501.03 Lakhs at 31 March 2025. (P.Y. INR 783.50 Lakhs).

B. Commitments

a) Bank Guarantees/LC''s issued INR 485.38 Lakhs (Previous Year INR 466.87 Lakhs) are secured by pledge of FDRs of
INR 128.59 Lakhs (Previous Year INR 127.33Lakhs) given by the Company.

b) The estimated amount of contracts remaining to be executed on capital account sand not provided
(INR in Lakhs)

C. Terms and Condition and Settlement

The transactions with the related parties are made on term equivalent to those that prevail in the arm''s length
transactions. The assessment is under taken each financial year through examining the financial position of the
related party and in the market in which the related party operates.

30. DEFERRED TAX:

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets
and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the
same tax authority.

During the year the Company has recognized Deferred tax liability of INR 645.61Lakhs. (P.Y- INR 330.72 Lakhs)

31. EMPLOYEE BENEFITS

The Company has a defined benefit gratuity plan. Under Gratuity Plan, every employee who has completed five years or
more of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service.

The gratuity plan is governed by the Payment of Gratuity Act, 1972. The level of benefits provided depends on the
member''s length of service and salary at retirement age. The Company has purchased insurance policy, which is
basically a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed
for a period of one year. The insurance Company, as part of the policy rules, makes payment of all gratuity outgoes
happening during the year (subject to sufficiency of funds under the policy). The policy, thus, mitigates the liquidity risk.
However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus,
the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should
result in a increase in liability without corresponding increase in the asset.

Description of Risk Exposures

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is
exposed to various risks as follow:

i) Salary Increases- Actual salary increases will increase the Plan''s liability. Increase in salary increase rate
assumption in future valuations will also increase the liability.

ii) Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan''s liability.

iii) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can
impact the liabilities.

iv) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than
the discount rate assumed at the last valuation date can impact the liability

32. SEGMENT INFORMATION:

A. Description of the segments and principal activities:

The Company''s executive committee examines the Company''s performance from a product and geographic perspective
and has identified three reportable segments of its business:

a. Sugar Manufacturing: (India - Punjab and Uttar Pradesh)

This part of the business manufactures and sells sugar, molasses and bagasse. Whereas sugar is main product; others
are the bye products and are produced at various stages of the production of the sugar. The Company has sugar
manufacturing facilities at three locations in India viz. Buttar (Punjab), Moradabad and Rampur (Uttar Pradesh). The
committee monitors the performance in the respective region separately. While the committee receives separate
reports for each region, the facilities have been aggregated in to one reportable segment as they have similar average
gross margins and similar expected growth rates.

b. Ethanol/ENA Manufacturing: (India - Punjab and Uttar Pradesh)

This part of business manufactures Ethanol & Liquor. The basic raw material for Ethanol & Liquor is molasses and grain.
At present the company has two manufacturing facilities in India viz Laukha (Punjab), Belwara (Uttar Pradesh). At
Laukha, Punjab location the company is manufacturing Ethanol as well as liquor whereas at Belwara Uttar Pradesh
manufacturing facility the company is manufacturing Ethanol only.

c. Power Generation: (India - Punjab and Uttar Pradesh)

This part of the business consumes the bye product bagasse from sugar process and co generates the power. The
segment also procures fuel from outside to generate power. After meeting the captive requirements of the respective
sugar unit the power is exported the respective State Grids under long term Power Purchase Agreements (PPA).

scheme will be eligible for the interest subvention @6% per annum or 50% of the rate of interest charged by bank,
whichever is lower, on the loans to be extended by banks, shall be borne by Central Government for five years.

Till March 31, 2025, the Company has complied with all the conditions as stated in the scheme and submitted the claim
for interest subvention. Accordingly, interest subvention accrued under the Scheme till March 31, 2025 by Rs.263.58
Lakhs and out of which Rs. 129.80 Lakhs has been received till March 31, 2025.

35. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company has instituted an overall risk management programme which also focuses on the unpredictability of
financial markets and seeks to minimize potential adverse effects on the Company''s financial performance. Financial risk
management is carried out by Finance department under policies approved by the Board of Directors from time to time.
The Finance department, evaluates and hedges financial risks in close co-operation with the various stakeholders. The
Board of Directors approves written principles for overall financial risk management, as well as written policies covering
specific areas, such as credit risk, use of derivative financial instruments and non-derivative financial instruments.

The Company is exposed to market risk, credit risk and liquidity risk. These risks are managed pro-actively by the Senior
Management of the Company, duly supported by various Groups and Committees.

(a) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
Company employs prudent liquidity risk management practices which inter alia means maintaining sufficient cash
and the availability of funding through an adequate amount of committed credit facilities. Given the nature of the
underlying businesses, the corporate finance maintains flexibility in funding by maintaining availability under
committed credit lines and this way liquidity risk is mitigated by the availability of funds to cover future
commitments. Cash flow forecasts are prepared and the utilized borrowing facilities are monitored on a daily basis
and there is adequate focus on good management practices whereby the collections are managed efficiently. The
Company while borrowing funds for large capital project, negotiates the repayment schedule in such a manner that
these match with the generation of cash on such investment. Longer term cash flow forecasts are updated from time
to time and reviewed by the Senior management of the Company.

The table below represents the maturity profile of Company''s financial liabilities at the end March 31, 2025 and
March 31, 2024 based on contractual undiscounted payments: -

(b) Credit Risk

Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables) including deposits with banks, foreign exchange transactions and other financial assets.

(i) Trade receivables

Customer credit risk is managed subject to the Company''s established policy, procedures and control
relating to customer credit risk management. Management evaluate credit risk relating to customers on an
ongoing basis. Receivable control management team assess the credit quality of the customer, taking into
account its financial position, past experience and other factors. Outstanding customer receivables are
regularly monitored. An impairment analysis is performed at each reporting date on group\category basis.
The calculation is based on exchange losses, historical data and available facts as on date of evaluation.
Trade receivables comprise a customer base including Sugar dealers, state electricity board, oil
manufacturing companies apart from related to distillery. The Company evaluates the concentration of risk
with respect to trade receivables as low, as its customers are located in several jurisdictions and industries
and operate in largely independent markets.

(ii) Financial instruments and cash deposit

Credit risk from balances with banks and financial institutions is managed by the Company''s Finance
department team in accordance with the Company''s policy. The limits are set to minimize the
concentration of risks and therefore mitigate financial loss through counter party''s potential failure to
make payments. Credit limits of all authorities are reviewed by the management on regular basis. All
balances with banks and financial institutions is subject to low credit risk due to good credit ratings
assigned to the Company.

(c) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risks comprises three types of risk: currency rate risk, interest rate risk and
other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market
risks include loans and borrowings. The sensitivity analyses in the following sections relate to the position as at
March 31, 2025 and March 31, 2024. The analyses exclude the impact of movements in market variables on; the
carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and
liabilities. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the

respective market risks. This is based on the financial assets and financial liabilities held as of at March 31, 2025
and March 31, 2024.

(d) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange
rates relates primarily to the Company''s operating activities (when revenue, expense or capital expenditure is
denominated in foreign currency). The company is not exposed to material foreign currency risk.

(e) Interest rate risk

Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates
primarily to the Company''s debt obligation at floating interest rates which is not material.

(f) Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing
purchase of raw material and therefore requires a continues supply. The Company operations may impact due to
changes in prices of those raw materials.

36. CAPITAL MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued equity attributable to the equity
shareholders of the Company, Liability Component of compound financial instrument (CFI), security premium and all
other equity reserves. The primary objective of the Company''s capital management is that it maintains an efficient capital
structure and maximize the shareholder value. The Company manages its capital structure and makes adjustments in light
of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital
structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new
shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The
Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents, other bank
balances.

38. The Directorate of Enforcement (ED), Jalandhar, ordered the seizure of immovable properties worth Rs.22.02
Crore held in the name of M/s Rana Sugars Limited (RSL) situated at Village Buttar Seviyan Tehsil Baba Bakala
India, within the power conferred under the provision of section 37A (1) of the Foreign Exchange management
Act (FEMA), 1999 for having reason to believe that RSL holds foreign exchange outside India in contravention of
Section 4 of FEMA. 1999.

However, there is no Financial implication in short term. Further, the company has a strong case to defend and
has filed appeal against the said order before the competent authority.

39. COMPANY AS A LESSEE

As required by Ind AS 116 ''Lease'' the company has recognized "right of use” assets which have been amortized over the
term of lease. Further, finance cost in respect of corresponding lease liabilities has been measured and considered in these
financial statement

The Company''s lease asset class primarily consist of leases for Plant & Machinery & vehicles

The Company applied the exemption not to recognize Right-of-use assets and liabilities for leases with less than 12
months of lease term on the date of initial application.

Depreciation charge for Right-of-use assets is included under depreciation and amortization expense in the Statement of
Profit and Loss. Further, to above, the Company has certain lease arrangement on short term basis, expenditure on which
has been recognized under line item "Rent” under Other expenses. The effect of adoption of IND AS 116 ''Leases'' is not
material on the profit before tax, profit for the year and earnings per share.

(v) Previous year figures have been recasted/regrouped/rearranged wherever necessary to make them

comparable with that of current year.

(vi) Additional Regulatory Information

(a) Title deeds of all the immovable properties (other than the properties where the company is the lessee and
the lease agreements are duly executed in favour of the lessee) are held in the name of the company. Further,
the company does not hold any immovable property jointly with others.

(b) The company has not revalued its Property, Plant and Equipment during the financial year 2024-25.
Therefore, the disclosure as to whether the revaluation is based on the valuation by a registered valuer as
defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017 is not required.

(c) The company has not granted any Loan or Advances in the nature of loans to Promoters, Directors, KMPs and
related parties (as defined under the Companies Act 2013) either severally or jointly with any other person,
that are Repayable on demand or are Without specifying any terms or period of repayment.

(d) No proceedings have been initiated or pending against the company for holding any benami property under
the Benami Transactions (Prohibitions) Act, 1988 and rules made thereunder.

(e) The company has borrowed working capital facilities from Uttar Pradesh Co-operative Bank Limited Zila
Sahakari Bank Limited Ghaziabad and UCO Bank on the basis of security of current assets and the quarterly
returns or statements of current assets filed with the said banks are in agreement with the books of accounts.

(f) The company is not declared by any bank or financial institutions or other lender as a willful defaulter.

(g) The company has not entered into any transaction with the companies stuck off under section 248 of the
companies Act, 2013.

(h) The company has filed registration of charges or satisfaction with the registrar of companies within the
statutory period as per the Companies Act, 2013.

(i) The company has not traded or invested in crypto currency or virtual currency during the financial year.

(j) Key Ratio

Rana Veer Pratap Singh Rana Ranjit Singh Gaurav Garg Madhur Bain Singh

Managing Director Director Chief Financial Officer Company Secretary

(DIN 00076808) (DIN 00076770)

As per our report of even date attached

For Ashwani K. Gupta & Associates

Chartered Accountants

Munish Goel

Place : Chandigarh Partner

Dated : May 29, 2025 Membership No. : 553043

UDIN : 23553043BKABNB7173 FRN : 003803N

---

Mar 31, 2024

Terms/ rights attached to equity shares

The company has only one class of equity shares having par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends, if any, in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Terms/ rights attached to preference shares

The Preference shares issued by the company are non-convertible. Preference shares will be redeemed on April 29, 2027 at the price of INR 10/- per share. The Preference shares carry a dividend of 8% per annum payable at the discretion of the company and subject to approval of the lenders. The dividend rights are non-cumulative. The preference shares rank ahead of the equity shares in event of liquidation. The presentation of liability and equity portion of these shares is explained in the summary of significant accounting policy.

Note 1 : At March 31, 2024 and March 31, 2023, there were 4,10,93,424 no. of redeemable preference shares in issue. Each share has a par value of INR 10. Preference shares will be redeemed on April 29, 2027 at par value. The preference shares carry a

dividend of 8% per annum, payable yearly in arrears as on 31 March. The dividend rights are non-cumulative. The preference shares rank ahead of the equity shares in the event of a liquidation. The presentation of the liability and equity portions of these shares is explained in the summary of significant accounting policies.

Note: Nature of Securities for the aforesaid secured loans repayable on demand

(a) Zila Sahakari Bank Limited Ghaziabad - For Units in Uttar Pradesh

Working Capital loans from Zila Sahakari Bank Ltd. Ghaziabad are secured by pledge of crystal sugar and hypothecation of all other current assets at Sugar Units in District Moradabad and Rampur (UP) respectively.

(b) UCO Bank - For Units in District Amritsar & Tarantaran

Working Capital Loans from UCO Bank are secured by hypothecation of stocks of raw materials, Stock in process and finished goods lying in the borrower''s godowns, factory situated at Punjab Units, Stock-in-transit and Stock lying at other places with prior permission of the bank. The limits are further secured by hypothecation of Trade receivables

(c) Union Bank of India - For Units in District Amritsar & Tarantaran

Overdraft limit from Union bank of India is secured against fixed deposit exclusively in favour of bank.

(d) Uttar Pradesh Co-op. bank Limited, Lucknow - For Units in Uttar Pradesh

Working capital limits from Uttar Pradesh Co-op. bank Limited, Lucknow are secured by pledge of sugar stock at sugar units in district Moradabad and Rampur respectively and stock of Finished Goods & Raw Material related to Ethanol lying at Distillery unit in district Moradabad. The limits are also secured by hypothecation of current assets of the company on first pari-passu charge basis with IREDA, UCO Bank and Zila Sahakari Bank Limited, Ghaziabad except for trade receivables of Power relating to Uttar Pardesh Power Corporation Limited which are charged exclusively in favour of IREDA and sugar stock pledged to Zila Sahakari Bank Limited, Ghaziabad.

(e) Overdraft limit from ICICI Bank is secured against fixed deposit exclusively in favour of bank.

(f) Working Capital Loans from Banks are further secured by personal guarantee of promoters / directors.

26. Contingent Liabilities, Commitments and Contingencies (to the extent not provided for)

A) Claims against the company not acknowledged as debt

Liabilities in respect of Income Tax and Sales Tax have been accounted for on the basis of respective returns filed with the relevant authorities. Additional demand, if any, arising at the time of assessment shall be accounted for in the year in which the assessment is completed. The status of completed assessments is as under: -

a) Income Tax assessments have been completed up to the assessment year 2022-23. The Followings demands have been raised by the Income Tax Department for which the Company has preferred an appeal which are pending with Different Forums: -

Sr. No.	Assessment year	Disputed demand (INR in Lakhs)	Amount deposited/adjusted (Refer note 8) (INR in Lakhs)		Status
1	2016-17	141.46	307.39		Appeal pending with CIT(A), Gurugram
2	2017-18	2011.95
3	2018-19	497.99	130.83		Appeal pending with CIT(A), Gurugram
4	2020-21	286.33	27.13		Demand raised by CPC Bengaluru
b) Sales Tax Assessments
Sr. No.	Unit		Completed upto assessment year
			CST	VAT	Demand (INR in Lakhs)
1	Sugar Units, Uttar Pradesh		2017-18	2017-18	NIL
2	Sugar Unit, Amritsar		2016-17	2016-17	NIL
3	Distillery Unit, Tarn Taran		2016-17	2016-17	VAT 0.10 and CST 19.22

i) In respect of Sugar Units in Uttar Pradesh, the Excise & Taxation department has raised demand on account of VAT on molasses for INR 35.41 Lakhs, 201.31 lakhs, 103.99 lakhs, 178.90 lakhs, 122.52 Lakhs, 191.09 Lakhs and 34.20 Lakhs for the Financial years 2011-12, 2012-13, 2013-14, 2014-15, 2015-16, 2016-17 and 2017-18 respectively. However, as per the order of the Hon’ble Allahabad High Court dated 30 March, 2010 the said VAT has not been deposited with the Excise & Taxation Department. The Excise& Taxation Department, Uttar Pradesh has filed an appeal with Hon’ble Supreme Court of India against such order of the Hon’ble High Court of Allahabad.

ii) In respect of Distillery unit in Punjab, the office of Excise & Taxation Commissioner, Punjab raised a demand of INR 348.47 lakhs (INR 55.69 lakhs for VAT and INR 292.78 lakhs for CST) vide its order dated 30 April, 2015 for FY 13-14 against which the Company has filed appeal with DETC (Appeals) Amritsar

c) In respect of its Sugar unit at Moradabad, the company has deposited INR 49.89 Lakhs in FY 2010-11 on account of Excise Duty under protest against alleged demand of Excise duty amounting to INR 204.61 lakhs and the same has been shown under the head Payments of Taxes under protest/appeal under Other Assets (Refer note no 8). The Company has filed an appeal with CESTAT (Central Excise & Service Tax Appellant Tribunal) against the order of Commissioner Central Excise.

d) In respect of its Sugar unit at Moradabad, the company has deposited INR 1.21 Lakhs on account of Gst demand amounting to INR 12.19 lakhs and the same has been shown under the head Payments of Taxes under protest/ appeal under Other Assets (Refer note no 8). The Company has filed an appeal with Appellant authority.

e) Financial Guarantees

The Company has given guarantees for term loan availed by the Company in which relative of the Directors are interested to a maximum amount of INR 9956 Lakhs (P.Y. INR 9956 Lakhs). The carrying amount of the related financial guarantees contract were INR 783.51 Lakhs at 31 March 2024. (P.Y. INR 1081.39 Lakhs).

B. Commitments

a) Bank Guarantees/LC''s issued INR 466.87 Lakhs (Previous Year INR 424.87 Lakhs) are secured by pledge of FDRs of INR 127.33 Lakhs (Previous Year INR 100.22 Lakhs) given by the Company.

27. CORPORATE SOCIAL RESPONSIBILITY

As per provisions of section 135 of the Companies Act, 2013, the Company has to incur at least 2% of average net profits of the preceding three financial years towards Corporate Social Responsibility (“CSR”). Accordingly, a CSR committee has been formed for carrying out CSR activities as per the Schedule VII of the Companies Act, 2013. Details are as under:-

Average net profit of the company as per section 135(5): INR 11635.42 Lakhs

Two percent of average net profit of the company as per section 135(5) : INR 232.71 Lakhs

Note:

• Mr. Suresh Kumar Jain was appointed as Independent Director w.e.f 1^st October 2023 and has resigned w.e.f 8^th Feb 2024.

• Mr. Surjeet Kaushal was appointed as Independent Director w.e.f 1^st October 2023.

• Mr.Tara Chand Meenia has resigned w.e.f 20^thJuly 2023 as Independent Director.

• Mr. Madhur Bain Singh was appointed as Company Secretary w.e.f 27^th April 2023.

The amounts disclosed in the table relating to employee benefits are the amounts recognised as an expense during the reporting period related to key management personnel. The remuneration to the Key Management Personnel does not include the provision for gratuity and leave benefits, as they are determined on an actuarial basis for the Company as a whole.

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2024, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2023: INR Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

30. Deferred Tax:

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

The Company has Unabsorbed Depreciation- NIL (PY-INR NIL Lakhs).

During the year the Company has recognized Deferred tax liability of INR 330.72 Lakhs.

31. Employee Benefits

The Company has a defined benefit gratuity plan. Under Gratuity Plan, every employee who has completed five years or more of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service.

The gratuity plan is governed by the Payment of Gratuity Act, 1972. The level of benefits provided depends on the member''s length of service and salary at retirement age. The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy). The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset.

Description of Risk Exposures

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow:

i) Salary Increases- Actual salary increases will increase the Plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

ii) Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan’s liability.

iii) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

iv) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability

32. Segment Information:

A. Description of the segments and principal activities:

The Company''s executive committee examines the Company''s performance from a product and geographic perspective and has identified three reportable segments of its business:

a. Sugar Manufacturing: (India - Punjab and Uttar Pradesh)

This part of the business manufactures and sells sugar, molasses and bagasse. Whereas sugar is main product; others are the bye products and are produced at various stages of the production of the sugar. The Company has sugar manufacturing facilities at three locations in India viz. Buttar (Punjab), Moradabad and Rampur (Uttar Pradesh). The committee monitors the performance in the respective region separately. While the committee receives separate reports for each region, the facilities have been aggregated in to one reportable segment as they have similar average gross margins and similar expected growth rates.

b. Ethanol/ENA Manufacturing: (India - Punjab and Uttar Pradesh)

This part of business manufactures Ethanol & Liquor. The basic raw material for Ethanol & Liquor is molasses and grain. At present the company has two manufacturing facilities in India viz Laukha (Punjab), Belwara (Uttar Pradesh). At Laukha, Punjab location the company is manufacturing Ethanol as well as liquor where as at Belwara Uttar Pradesh manufacturing facility the company is manufacturing Ethanol only.

c. Power Generation: (India - Punjab and Uttar Pradesh)

This part of the business consumes the bye product bagasse from sugar process and co generates the power. The segment also procures fuel from outside to generate power. After meeting the captive requirements of the respective sugar unit the power is exported the respective State Grids under long term Power Purchase Agreements (PPA).

The comparison of carrying value and fair value of financial instruments by categories that are not measured at fair value are as follows:

The management assessed that trade receivables, cash and cash equivalents, other bank balances, loans and advances to related parties, interest receivable, trade payables, capital creditors, other current financial assets and liabilities are considered to be the same as their fair values, due to their short term nature.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: Other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly

Level 3: Techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

34. Financial risk management objectives and policies

The Company has instituted an overall risk management programme which also focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company''s financial performance. Financial risk management is carried out by Finance department under policies approved by the Board of Directors from time to time. The Finance department, evaluates and hedges financial risks in close co-operation with the various stakeholders. The Board of Directors approves written principles for overall financial risk management, as well as written policies covering specific areas, such as credit risk, use of derivative financial instruments and non-derivative financial instruments.

The Company is exposed to market risk, credit risk and liquidity risk. These risks are managed pro-actively by the Senior Management of the Company, duly supported by various Groups and Committees.

(a) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company employs prudent liquidity risk management practices which inter alia means maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities. Given the nature of the underlying businesses, the corporate finance maintains flexibility in funding by maintaining availability under committed credit lines and this way liquidity risk is mitigated by the availability of funds to cover future commitments. Cash flow forecasts are

prepared and the utilized borrowing facilities are monitored on a daily basis and there is adequate focus on good management practices whereby the collections are managed efficiently. The Company while borrowing funds for large capital project, negotiates the repayment schedule in such a manner that these match with the generation of cash on such investment. Longer term cash flow forecasts are updated from time to time and reviewed by the Senior management of the Company.

(b) Credit Risk

Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) including deposits with banks, foreign exchange transactions and other financial assets.

(i) Trade receivables

Customer credit risk is managed subject to the Company''s established policy, procedures and control relating to customer credit risk management. Management evaluate credit risk relating to customers on an ongoing basis. Receivable control management team assess the credit quality of the customer, taking into account its financial position, past experience and other factors. Outstanding customer receivables are regularly monitored. An impairment analysis is performed at each reporting date on group\category basis. The calculation is based on exchange losses, historical data and available facts as on date of evaluation. Trade receivables comprise a customer base including Sugar dealers, state electricity board, oil manufacturing companies apart from related to distillery. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

(ii) Financial instruments and cash deposit

Credit risk from balances with banks and financial institutions is managed by the Company''s Finance department team in accordance with the Company''s policy. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counter party''s potential failure to make payments. Credit limits of all authorities are reviewed by the management on regular basis. All balances with banks and financial institutions is subject to low credit risk due to good credit ratings assigned to the Company.

(c) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risks comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market risks include loans and borrowings. The sensitivity analyses in the following sections relate to the position as at March 31, 2024 and March 31, 2023. The analyses exclude the impact of movements in market variables on; the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of at March 31, 2024 and March 31, 2023.

(d) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue, expense or capital expenditure is denominated in foreign currency). The company is not exposed to material foreign currency risk.

(e) Interest rate risk

Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligation at floating interest rates which is not material.

(f) Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing purchase of raw material and therefore requires a continues supply. The Company operations may impact due to changes in prices of those raw materials.

35. Capital Management

For the purpose of the Company’s capital management, capital includes issued equity attributable to the equity shareholders of the Company, Liability Component of compound financial instrument (CFI), security premium and all other equity reserves. The primary objective of the Company’s capital management is that it maintains an efficient capital structure and maximize the shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents, other bank balances.

36. In respect of Sugar Unit in Punjab, the Department has raised the demand for Purchase Tax on cane for INR 140.40 lakhs, 297.22 lakhs, 347.25 lakhs, 227.62 lakhs, 90.52 lakhs and 381.98 lakhs for the Financial years 2005-06, 2008-09, 2009-10, 2010-11, 2011-12 and 2013-14 respectively. Out of which 22.62 lakhs for the F.Y-2011-12 and 44.00 lakhs for the F.Y-2013-14 has been paid respectively. The Company has preferred appeals against such orders with the appellate authorities.

37. Company as a Lessee

As required by Ind AS 116 ‘Lease’ the company has recognised “right of use” assets which have been amortized over the term of lease. Further, finance cost in respect of corresponding lease liabilities has been measured and considered in these financial statement

The Company’s lease asset class primarily consist of leases for building & vehicles.

The Company applied the exemption not to recognize Right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application.

Depreciation charge for Right-of-use assets is included under depreciation and amortization expense in the Statement of Profit and Loss. Further, to above, the Company has certain lease arrangement on short term basis, expenditure on which has been recognised under line item “Rent” under Other expenses. The effect of adoption of Ind AS 116 ''Leases’ is not material on the profit before tax, profit for the year and earnings per share.

(v) Previous year figures have been recasted/regrouped/rearranged wherever necessary to make them comparable with

that of current year.

(vi) Additional Regulatory Information

(a) Title deeds of all the immovable properties (other than the properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the company. Further, the company does not hold any immovable property jointly with others.

(b) The company has not revalued its Property, Plant and Equipment during the financial year 2023-24. Therefore, the disclosure as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017 is not required.

(c) The company is not granted any Loan or Advances in the nature of loans to promoters, directors, KMPs and related parties (as defined under the companies Act 2013) either severally or jointly with any other person, that are Repayable on demand or are Without specifying any terms or period of repayment.

(d) No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibitions) Act, 1988 and rules made thereunder.

(e) The company has borrowed working capital facilities from Uttar Pradesh Co-operative Bank Ltd and Zila Sahakari Bank Ltd, Ghaziabad and UCO Bank on the basis of security of current assets and the quarterly returns or statements of current assets filed with the said banks are in agreement with the books of accounts.

(f) The company is not declared by any bank or financial institutions or other lender as a willful defaulter.

(g) The company has not entered into any transaction with the companies stuck off under section 248 of the companies Act, 2013.

(h) The company has filed registration of charges or satisfaction with the registrar of companies within the statutory period as per the companies Act, 2013.

(i) The company has not traded or invested in crypto currency or virtual currency during the financial year.

(j) Key Ratio

---

Mar 31, 2023

Borrowing cost are capitalized on Asset under construction. Financial Year March 31, 2023 - INR 132.91 Lakhs, March 31, 2022 - INR 64.06 Lakhs

Charge on PPE

Entire PPE (except Vehicles) is subject to First Charge to secure terms loans from IRDEA Limited and UCO Bank. Respective vehicles are also subject to charge to secure the loan availed to acquire the same.

Terms/ rights attached to equity shares

The company has only one class of equity shares having par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends, if any, in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Terms/ rights attached to preference shares

The Preference shares issued by the company are non-convertible. Preference shares will be redeemed on April 29, 2027 at the price of INR 10/- per share. The Preference shares carry a dividend of 8% per annum payable at the discretion of the company and subject to approval of the lenders. The dividend rights are non-cumulative. The preference shares rank ahead of the equity shares in event of liquidation. The presentation of liability and equity portion of these shares is explained in the summary of significant accounting policy.

Note: The molasses storage fund has been created to fund the construction cost for molasses storage tank as required under Uttar Pradesh Sheera Niyantran (Sansodhan) Adesh, 1974. During the previous year ended 31st March 2023 INR 100.36 lakhs was utilized from the fund for construction of molasses storage tank and the same has been capitalized in Plant & Machinery under Property, Plant and Equipments (PPE). The said storage fund is represented by investment in the form of fixed deposits with banks amounting to INR 85.97 Lakhs (Previous year 165.11 Lakhs)

Note 1: At March 31, 2023 and March 31, 2022, there were 4,10,93,424 no. of redeemable preference shares in issue. Each share has a par value of INR 10. Preference shares will be redeemed on April 29, 2027 at par value. The preference shares carry a dividend of 8% per annum, payable yearly in arrears as on 31 March. The dividend rights are non-cumulative. The preference shares rank ahead of the equity shares in the event of a liquidation. The presentation of the liability and equity portions of these shares is explained in the summary of significant accounting policies.

Note 2: Nature of Securities for the aforesaid secured borrowings including current maturity of long term loans Refers Note No: 13 (i)

(a) Term Loans (Excluding Vehicle Loans)

Term Loans from Zila Sahakari Bank Ltd., Ghaziabad and IREDA Limited, are secured by pari passu first charge on Fixed assets of the Company (excluding Vehicles), including Sugar & Power units in District Amritsar (Punjab), Moradabad & Rampur (UP) and Distillery unit in Tarn Taran (Punjab) & District Moradabad (U.P).

(b) Vehicle Loans

Vehicle loans from Kotak Mahindra Prime Limited are secured by hypothecation on the underlying vehicles for the respective loan.

Note: Nature of Securities for the aforesaid secured loans repayable on demand

(a) Zila Sahakari Bank Limited Ghaziabad - For Units in Uttar Pradesh

Working Capital loans from Zila Sahakari Bank Ltd. Ghaziabad are secured by pledge of crystal sugar and hypothecation of all other current assets at Sugar Units in District Moradabad and Rampur (UP) respectively.

(b) UCO Bank - For Units in District Amritsar & Tarn taran

Working Capital Loans from UCO Bank are secured by hypothecation of stocks of raw materials, Stock in process and finished goods lying in the borrower''s godowns, factory, Stock-in-transit and Stock lying at other places with prior permission of the bank. The limits are further secured by hypothecation of Trade receivables.

(c) Union Bank of India - For Units in District Amritsar & Tarn taran

Overdraft limit from Union Bank of India is secured against fixed deposit exclusively in favour of bank.

(d) Uttar Pradesh Co-op. bank Limited, Lucknow - For Units in Uttar Pradesh

Working capital limits from Uttar Pradesh Co-op. bank Limited, Lucknow are secured by pledge of sugar stock at sugar units in district Moradabad and Rampur respectively. The limits are also secured by hypothecation of current assets of the company on first pari-passu charge basis with IREDA, UCO Bank and Zila Sahakari Bank Limited, Ghaziabad except for trade receivables of Power relating to Uttar Pradesh Power Corporation Limited which are charged exclusively in favour of IREDA and sugar stock pledged to Zila Sahakari Bank Limited, Ghaziabad.

Statements for the year ended March 31,2023:

26. Contingent Liabilities, Commitments and Contingencies (to the extent not provided for)

A) Claims against the company not acknowledged as debt

Liabilities in respect of Income Tax and Sales Tax have been accounted for on the basis of respective returns filed with the relevant authorities. Additional demand, if any, arising at the time of assessment shall be accounted for in the year in which the assessment is completed. The status of completed assessments is as under:

a) Income Tax assessments have been completed up to the assessment year 2019-20. The Followings demands have been raised by the Income Tax Department for which the Company has preferred an appeal which are pending with Different Forums: -

i) In respect of Sugar Units in Uttar Pradesh, the Excise & Taxation department has raised demand on account of VAT on molasses for INR 35.41 Lakhs, 201.31 lakhs, 103.99 lakhs, 178.90 lakhs, 122.52 Lakhs, 191.09 Lakhs and 34.20 Lakhs for the Financial years 2011-12, 2012-13, 2013-14, 2014-15, 2015-16, 2016-17 and 2017-18 respectively. However, as per the order of the Hon''ble Allahabad High Court dated 30 March, 2010 the said VAT has not been deposited with the Excise & Taxation Department. The Excise& Taxation Department, Uttar Pradesh has filed an appeal with Hon''ble Supreme Court of India against such order of the Hon''ble High Court of Allahabad.

ii) In respect of Distillery unit in Punjab, the office of Excise & Taxation Commissioner, Punjab raised a demand of INR 348.47 lakhs (INR 55.69 lakhs for VAT and INR 292.78 lakhs for CST) vide its order dated 30 April, 2015 for FY 13-14 against which the Company has filed appeal with DETC (Appeals) Amritsar

c) In respect of its Sugar unit at Moradabad, the company has deposited INR 49.90 Lakhs in FY 2010-11 on account of Excise Duty under protest against alleged demand of Excise duty amounting to INR 204.61 lakhs and the same has been shown under the head Payments of Taxes under protest/appeal under Other Assets (Refer note no 8). The Company has filed an appeal with CESTAT (Central Excise & Service Tax Appellant Tribunal) against the order of Commissioner Central Excise.

d) Financial Guarantees

The Company has given guarantees for term loan availed by the Company in which relative of the Directors are interested to a maximum amount of INR 9956 Lakhs (P.Y. INR 7440 Lakhs). The carrying amount of the related financial guarantees contract were INR 1081.39 Lakhs at 31 March 2023. (P.Y. INR 1153.20 Lakhs).

B. Commitments

a) Bank Guarantees/LC''s issued INR 424.87 Lakhs (Previous Year INR 420.87 Lakhs) are secured by pledge of FDRs of INR 100.22 Lakhs (Previous Year INR 85.39 Lakhs) given by the Company.

27. Corporate Social Responsibility

As per provisions of section 135 of the Companies Act, 2013, the Company has to incur at least 2% of average net profits of the preceding three financial years towards Corporate Social Responsibility ("CSR”). Accordingly, a CSR committee has been formed for carrying out CSR activities as per the Schedule VII of the Companies Act, 2013. Details are as under:

Average net profit of the company as per section 135(5): INR 20215.65 Lakhs

There was no employee employed for full or part of the year who was getting remuneration in excess of the limits specified in Section 197 read with schedule V of the Companies Act, 2013

¦ CS Suresh Kumar has resigned as Company Secretary w.e.f. 30^th June, 2022.

¦ CS Gourav Kapoor has appointed as Company Secretary in place of CS Suresh Kumar on 5^th July, 2022 and resigned on 1^st November, 2022.

¦ Mr. Basant Kumar Bajaj has appointed as Director w.e.f 12^th August, 2022.

¦ Mr. Shivavtar Singh Bajwa has resigned w.e.f 12^th August, 2022 as a Director.

The amounts disclosed in the table relating to employee benefits are the amounts recognised as an expense during the reporting period related to key management personnel. The remuneration to the Key Management Personnel does not include the provision for gratuity and leave benefits, as they are determined on an actuarial basis for the Company as a whole.

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2023, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2022: INR Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

30. Deferred Tax:

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

The Company has Unabsorbed Depreciation- Nil (PY-INR 2,886.28 Lakhs).

During the year the Company has recognized Deferred tax liability of INR 947.60 Lakhs.

The Company has a defined benefit gratuity plan. Under Gratuity Plan, every employee who has completed five years or more of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service.

The gratuity plan is governed by the Payment of Gratuity Act, 1972. The level of benefits provided depends on the member''s length of service and salary at retirement age. The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy). The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in an increase in liability without corresponding increase in the asset.

Description of Risk Exposures

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow:

i) Salary Increases- Actual salary increases will increase the Plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

ii) Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan''s liability.

iii) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

iv) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability

32. Segment Information:

A. Description of the segments and principal activities:

The Company''s executive committee examines the Company''s performance from a product and geographic perspective and has identified three reportable segments of its business:

a. Sugar Manufacturing: (India - Punjab and Uttar Pradesh)

This part of the business manufactures and sells sugar, molasses and bagasse. Whereas sugar is main product; others are the bye products and are produced at various stages of the production of the sugar. The Company has sugar manufacturing facilities at three locations in India viz. Buttar (Punjab), Moradabad and Rampur (Uttar Pradesh). The committee monitors the performance in the respective region separately. While the committee receives separate reports for each region, the facilities have been aggregated in to one reportable segment as they have similar average gross margins and similar expected growth rates.

b. Ethanol/ENA Manufacturing: (India - Punjab and Uttar Pradesh)

This part of business manufactures Ethanol & Liquor. The basic raw material for Ethanol & Liquor is molasses and grain. At present the company has two manufacturing facilities in India viz. Laukha (Punjab), Belwara (Uttar Pradesh). At Laukha, Punjab location the company is manufacturing Ethanol as well as liquor whereas at Belwara Uttar Pradesh manufacturing facility the company is manufacturing Ethanol only.

c. Power Generation: (India - Punjab and Uttar Pradesh)

This part of the business consumes the bye product bagasse from sugar process and co generates the power. The segment also procures fuel from outside to generate power. After meeting the captive requirements of the respective sugar unit the power is exported the respective State Grids under long term Power Purchase Agreements (PPA).

---

Mar 31, 2018

1. Corporate Information

Rana Suqars Limited (the Company) is a public company domiciled in India and is incorporated under the provisions of the Companies Act 1956 applicable in India. Its shares are listed on two recognized stock exchanges in India. The registered office of the company is located at S.C.O. 49-50 Sector 8 - C Chandigarh.

The Company is having its operations in the State of Punjab and Uttar Pradesh and is principally engaged in the manufacturing of Sugar Ethanol and co generation of power. Power is used captively as well as exported to the State Grids of Punjab and Uttar Pradesh respectively.

The financial statements were authorized for issue in accordance with a resolution by the Board of Directors of the Company on 30 May 2018.

2. Significant Accounting Policies

2.1 Basis of Preparation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time).

For all periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These financial statements for the year ended 31 March 2018 are the first financial statements which have been prepared in accordance with the Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time. The Company is in Phase il of Ind AS adoption and accordingly the date of transition is 1 April 2016.

In respect of financial information for the year ended 31” March 2018, the Company followed the same accounting policies and accounting policy choices (both mandatory exceptions and optional exceptions availed as ppr Ind AS 101) as initially adopted on transition date i.e. 1” April 2016. Refer to note 34 for information on how the Company adopted Irtd AS.

The financial statements have been prepared on a historical cost basis except for the following assets and liabilities which have been measured at fair value:

a. Plan assets under defined benefit plans. .

b. Certain financial assets and liabilities.

In accordance with IND AS 101 First-time Adoption of Indian Accounting Standard, the Company has presented a reconciliation from the presentation of Financial Information under Accounting Standards notified under Previous GAAP to IND AS of Restated Shareholders equity as at March 31, 2017 and 2016 and of the Statement of Profit and loss and other comprehensive Income for the year ended March 31, 2017.

The financial information are presented in Indian Rupees (INR) and all values are rounded to the nearest lakhs, except where otherwise indicated.

3. Contingent Liabilities, Commitments and Contingencies

(Claims against the company not acknowledged as debts)

Liabilities in respect of Income Tax and Sales Tax have been accounted for on the basis of respective returns filed with the relevant authorities. Additional demand, if any, arising at the time of assessment shall be accounted for in the year in which the assessment is completed. The status of completed assessments is as under:-

a) Income Tax assessments have been completed up to the assessment year 2015-16 and there is no demand pending in respect of the completed assessments.

b) Sales Tax assessments

i) In respect of Sugar Units in Uttar Pradesh, the Excise & Taxation Department has raised demand on account of VAT on molasses for INR 35.41 lakhs, 201.31 lakhs, 103.99 lakhs, 178.90 lakhs and 122.52 lakhs for the Financial years 2011-12, 2012-13, 2013-14, 2014-15 and 2015-16 respectively. However, the as per the order of the Han’ble Allahabad High Court dated 30 March, 2010 the said VAT has not been deposited with the Excise & Taxation Department, Uttar Pradesh. Since Excise & Taxation Department, Uttar Pradesh has filed an appeal with Hon’able Supreme Court of India against such order of the Hon’able High Court of Allahabad;

- the said liability for VAT on molasses has been classified as contingent liability.

ii) The Company has deposited INR Nil (FY 2016-17 INR 6.60 lakhs) under protest with department against alleged demand raised of entry tax and shown the same under the head Payments of Taxes under protest/appeal under Other Assets {Refer note no. 10). The Company has filed appeal against such demand with the respective appellate authorities.

ii,) in respect of Sugar Unit in Punjab, the Department has raised the demand for Purchase Tax on cane for INR 140_40 lakhs 297^22 lakhs 347.25 lakhs, 227.62 lakhs, 90.52 lakhs and 381.98 lakhs for the Financial years 2005-06, 2008-09, 2009-10, 2010-11, 201112 arid 2013-14 respectively. The Company has preferred appeals against such orders with the appellate authorities. Though, the Company has provided purchase tax liability for the years 2005-06 to 2013-14, the same has not been paid as the above mentioned appeals against assessment orders are pending with the appellate authorities.

iv) In respect of Distillery unit in Punjab, the office of Excise & Taxation Commissioner, runjao raisea a aemang u, (INR 55.69 lakhs for VAT and INR 292.78 lakhs for CST) vide its order dated 30 April, 2015 against which the Company has filed appeal with DETC (Appeals) Amritsar,

cl In respect of its Sugar unit at Moradabad, the company has deposited INR 49.90 lakhs in FY 2010-11 on account of Excise Duty under protest against alleged demand of Excise duty and the same has been shown under the head Payments of Taxes under protest/appea under Other Assets {Refer note no. 10). The Company has filed an appeal with CESTAT (Central Excise & Service Tax Appellant Tribunal) against the order of Commissioner, Central Excise.

d) in respect of its Sugar unit at Amritsar, the company has deposited INR 2.50 lakhs in FY 2010-11 onaccountofExciseDutyunder orotestand the same has been shown under the head Payments of Taxes under protest/appeal under Other Assets (Refer note no. 10). The Company has filed an appeal with CESTAT (Central Excise & Service Tax Appellant Tribunal) against the order of Commissioner,

Appeals.

e) Bank Guarantees/LC’s issued INR 1005.25 lakhs (previous year INR 931.96 lakhs) are secured by pledge of FDRs of INR 726.74 lakhs (previous year INR 377.66 lakhs) given by the Company.

n as per the Tripartite agreement between the Company, Bankers and the Individual farmers, Banker disburses the Crop Loan to farmers through the Company The Company has provided guarantee to the Bank on behalf of farmers for repayment of loan with interest The crap bans outstanding as at the end of the Financial Year were INR 4,06*22 lakhs (Previous year NR 6 475.60 lakhs) against the corporate guarantee given by the company amounting to INR 4400.00 lakhs (Previous year INR 6400.00 lakhs).

g) The estimated amount of contracts remaining to be executed on capital account and not provided for was INR 39.03 Lakhs (Previous Year INR 144,90 Lakhs).

3. EXPENDITURE ON EMPLOYEES:

There was no employee employed for full or part of the year who was getting remuneration in excess of the limits specified in Section 197 read with schedule V of the Companies Act, 2013.

Terms and conditions of transactions with related partipg

Loan to Companies in which Directors are interested

4. Deferred Tax:

The Company has tax looses (Business Loss) of INR 9,921.84 lakhs (31 March 2017: INR 8 564 12 lakhs 1 Aoril 2016- INR 1 nn bLh i

5. Employee Benefits:

i) Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan’s liability.

ii) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities

A. Defined Contribution Plan

Contribution to defined contribution plan, recognized as expense for the year is as under:

6. Segment Information:

A. Description of the segments and principal activities:

The Company’s executive committee examines the Company’s performance from a product and geographic perspective and has identified three reportable segments of its business:

a. Sugar Manufacturing: (India - Punjab and Uttar Pradesh)

This part of the business manufactures and sells sugar, molasses and bagasse. Whereas sugar is main product; others are the bye products and are produced at various stages of the production of the sugar. The Company has sugar manufacturing facilities at three locations in India viz. Buttar (Punjab), Moradabad and Rampur (Uttar Pradesh). The committee monitors the performance in the respective region separately. While the committee receives separate reports for each region, the facilities have been aggregated in to one reportable segment as they have similar average gross margins and similar expected growth rates.

b. Ethanol Manufacturing: (India - Punjab)

This part of the business is further integration of the sugar process wherein bye product molasses is further processed to manufacture Ethanol.

c. Power Generation: (India - Punjab and Uttar Pradesh)

This part of the business consumes the bye product bagasse from sugar process and co generates the power. The segment also procures fuel from outside to generate power. After meeting the captive requirements offlhe respective sugar unit the power is exported the respective State Grids under long term Power Purchase Agreements (PPA). .

The management assessed that trade receivables, cash and cash equivalents, other bank balances, loans and advances to related parties, interest receivable, trade payables, capital creditors, other current financial assets and liabilities are considered to be the same as their fair values, due to their short term nature.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

The fair value of loans from banks and other financial liabilities are estimated by discounting future cash flows Using rates currently available for debt on similar terms, credit risk and remaining maturities. The valuation requires management to use observable and unobservable inputs in the model, of which the significant observable and unobservable inputs are disclosed below. Management regularly assesses a range of reasonably possible alternatives for those significant observable and unobservable inputs and determines their impact on the total fair value.

The fair values of the Company’s interest-bearing borrowings are determined by using DCF method using discount rate that reflects the issuer’s borrowing rate as at the end of the reporting period. The own non-performance risk as at March 31, 2018 was assessed to be insignificant.

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: Other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly Level 3: Techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

7. Financial risk management objectives and policies

instruments and non-derivative financial instruments.

The Company is exposed to capital risk, market risk, credit risk and liquidity risk. These risks are managed pro-actively by the Semor Management of the Company, duly supported by various Groups and Committees.

Investment Logger term cash flow forecasts are updated from time to time and reviewed by the Senior management of the Company.

The table below represents the maturity profile of Company’s financial liabilities at the end of April 01, 2016, March 31, 2017 and March

fihased on contractual undiscounted payments -

(b) Credit Risk

nnanri^T™* tk ^ th® counter ^ wil1 not meet i,s obligation under a financial instrument or customer contract, leading to a Th« Company is exposed to credit risk from its operating activities (primarily trade receivables) including deposits with banks, foreign exchange transactions and other financial assets. y u^iu, mm

C?dMriSk iS ma?agec! subject t0 the ConnPany’s established policy, procedures and control relating to customer credit risk ^Ma,nf9enn®n’ evaluate credit risk relating to customers on an ongoing basis. Receivable control management team assesses the credit quality of the customer, taking into account its financial position, past experience and other factors Outstanding customer receivables are regularly monitored. An impairment analysis is performed at each reporting date on group\category basis The calculation is based on exchange losses historical data and available facts as on date of evaluation. Trade receivables comprise a widespread customer base. The Company evaluates the concentration of risk with respect to trade receivables as low as its customers are located in several jurisdictions and industries and operate in largely independent markets.

Foreign currencyrisk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue, expense or capital expenditure is denominated in foreign currency). Foreign currency exchange rate exposure is partly balanced by purchasing of goods from the respective countries. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

(g) Interest rate risk

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

8. Capital Management

For the purpose of the Company’s capital management, capital includes issued equity attributable to the equity shareholders of the Company, Liability Component of compound financial instrument (CFI), security premium and all other equity reserves. The primary objective of the Company’s capital management is that it maintain an efficient capital structure and maximize the shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, other bank balances.

9. First-time adoption of Ind AS

These financial statements, for the year ended 31 March 2018, are the first financial statements the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2016, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply witH-.Ind AS applicable for periods ending on 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at 1 April 2016, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

Exemptions applied

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

- The Company has opted to continue with the carrying value as recognized in previous GAAP financials as deemed cost for all its Property, Plant & Equipment (PPE) after considering the necessary. Freehold land and buildings (properties), other than investment property, were carried in the balance sheet prepared in accordance with Indian GAAP on the basis of valuations perfomned on 31 March 2016. The Company has elected to regard those values of property as deemed cost at the date of the revaluation since they were broadly comparable to fair value. The company has also determined that revaluation as at 31 March 2016 does not differ materially from fair valuation as at 1 April 2016. Accordingly, the company has not revalued the property at 1 April 2016 again.

Estimates:

The estimates at 1 April 2016 and at 31 March 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) except for Impairment of financial asfets based on expected credit loss model where application of Indian GAAP did not require estimation. .

The estimates used by the Company to present such amounts in accordance with Ind AS reflect conditions at 1 April 2016, the date of transition to Ind AS and as of 31 March 2017.

1. Property. Plant & Equipment:

As per Ind As 20, accounting for Government grants and disclosure of Government Assistance, the Company has already deducted the amount of grant from the cost of fixed assets and it has recognized the amount of unamorttfed deferred income as at the date of transition in accordance with paragraph 10 of Ind As 101. The corresponding adjustment has been made.in the carrying value of PPE (Net of cumulative depreciation impact) and retained earning respectively, as the grant is directly linked to PPE.

Further, the deferred income is recognized as income over the period of the EPCG licence.

Under Indian GAAP, the transaction costs incurred in connection with borrowings are capitalized as part of the fixed assets and amortized accordingly. However as per Ind As 109, the carrying amount of loan is required to be restated to its amortised cost as at the date of the transition. Since the Company had already capitalized the processing cost as a part of the cost of the fixed assets to restate the carrying amount of loan in accordance with paragraph 10 of Ind AS 101, the carrying amount of fixed assets as at the date of the transition has been reduced by the amount of processing cost (net of cumulative depreciation impact).

2. Deferred Tax:

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind-AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base The application of Ind-AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not reauired under Indian GAAP.

In addition, the various transitional/ restatement adjustments lead to temporary differences. According to the accountinq policies the company has to account for such differences.

Under Indian GAAP the processing cost incurred for loans was accounted as under:

a. In Case the foan has been availed for funding of capital asset, the processing fee was capitalized as part of the cost of the asset;

b. In case the loan has been availed for meeting working capital gap the processing fee incurred is charged to profit and loss account However as per ind As 109, the carrying amount of loan is required to be restated to its amortised cost as at the date of the transition. Since the respective loans availed by the Company carried floating rate of interest and the transaction cost was not material hence the transaction cost has been amortized on straight line basis over the tenure of the respective loan.

4. Cash & Cash Equivalents:

As per Indian GAAP ail amounts in the bank used to be classified as Cash & Cash equivalents. However as per Ind AS cash or a cash equivalent the use of which is restricted from being exchanged or to settle a liability for at least twelve months after the reporting period are to be shown as Other Bank Balances. Accordingly the amounts which are held by the bank as margin money resulting in to restriction on its usage has been classified as Other Bank Balances which are not part of Cash or a Cash Equivalent.

5. Errors:

a. Banking of Power Units: The Company is in to power co generation and has its power co generation facilities in Punjab and Uttar Pradesh (U.P.). In case of U.P. the Company Banks some of its power units exported to the UUar Pradesh Power Corporation Limited (UPPCL) and raises the invoice net of the banked units. The Company adjusts these banked units during the year against the electricity purchased from UPPCL. However post implementation of the Ind AS the Company shows the banked units as inventory. The effect of any such reclassification has been transferred to retained earnings.

b. Reclassification of assets’. The Company acts as a channel partner for facilitating crop loans to the farmers attached with the Company from the banks. For this purpose the Company enters in to a tripartite agreement with the bank and the respective farmer. The Bank disburses the loans to the Company accounts which further is transferred to the respective cane grower’s account either in cash or in kind. Earlier the Company used to classify the loan received from the bank as liability and amount disbursed to the farmer as an asset. The amount which was left for further disbursement used to be reduced from the loan amount. However as per the Ind AS framework neither such an advance to farmer nor loan from the bank qualifies as an asset or liability respectively. Hence the Company has derecognized the corresponding assets and liabilities. Further the amount received from bank for disbursement to farmers which could not be disbursed as at ths reporting date has been classified as Other Liability and corresponding balance in the bank has been classified as Cash & Cash equivalents.

c. Derecognition of Current Asset There was an interest reflecting as on transition date which does not qualify to be an asset either current or noncurrent and hence has been derecognized.

d. Molasses Storage Fund: In case of its U.P. sugar units the Company is required to create a Molasses Storage Fund annually by appropriating part of its reserves. Although the Company was creating such fund no appropriation was made to the reserves, which has now been provided.

6. 8% Non Cumulative/ Non Convertible Redeemable Preference Share Capital:

The Company has issued redeemable preference shares. The preference shares carry fixed non cumulative dividend which is discretionary. Under Indian GAAP, the preference shares were classified as equity and dividend payable thereon was treated as distribution of profit. Under Ind AS, nonconvertible redeemable preference shares are separated into liability and equity components based on the terms of the contract. The Interest on liability component is recognised using the effective interest method. Thus the preference share capital is reduced by INR 1,298.18 lakhs (March 31, 2017:1,298.18 lakhs) with a corresponding increase in borrowings as liability component. Also, the equity portion is recognised as other equity for INR 2,811.16 lakhs net of tax impact.

7. EPCG/ Deferred Income:

As per Ind AS 20, accounting for government grants and disclosure of government assistance, the Company has already deducted the amount of grant from the cost of the fixed assets and it has recognised the amount of unamortised deferred income as at the date of the transition in accordance with paragraph 10 of Ind AS 101. The corresponding adjustment has been made to the carrying amount of property, plant and equipment (net of cumulative depreciation impact) and retained earnings, respectively, as the grant is directly linked to the property, plant and equipment.

Further, the deferred income is recognised as income on the basis of fulfilment of corresponding export obligations with respect to the grant availed.

8. Sale of Goods:

Under Indian GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented on the face of statement of profit and loss.

9. Retained Earnings:

Retained earnings as at March 31, 2017 and April 1, 2016 has been adjusted consequent to the Ind AS transition adjustments mentioned herewith.

10. Statement of Cash Flows:

The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows.

11. Other Comprehensive Income:

Under Ind AS, all items of income and expenses recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ include remeasurement of defined benefit plans. The concept of other comprehensive income did not exist under Indian GAAP.

12. Remeasurements of post-emplovment benefit obligations:

Both under previous GAAP and Ind AS, the Company recognized costs related to its post employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to statement of profit or loss. Under Ind AS, measurements (comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined liability) are recognized in balance sheet through other comprehensive income. ^

10. During the Current year, Company transferred INR Nil (Previous year INR Nil) to Capital Redemption Reserve.

11. In preference to the Companies Act, 2013 the company has not provided for Dividend on non-cumulative Preference share in view of the stipulation imposed by the lending institutions.

12. Previous year figures have been recasted/regrouped/rearranged wherever necessary to make them comparable with that of current year.

---

Mar 31, 2016

Note :

The company has two classes of shares with both having par value of R 10 per share.

The company has not allotted any shares for consideration other than cash during the last five years. Each holder of Equity share is entitled to one vote per share.

(C) Reconciliation of number of preference shares outstanding at the beginning and at the end of the year .

(D) Name of Equity Shareholders holding more than 5% Equity Shares in the Company

NOTES TO ACCOUNTS

1 Contingent Liabilities:-

a) Liabilities in respect of Income Tax and Sales Tax have been accounted for on the basis of respective returns filed with the relevant authorities. Additional demand, if any, arising at the time of assessment is accounted for in the year in which the assessment is completed.

i) Income Tax assessments have been completed up to the assessment year 2013-14. There is no demand

pending in respect of the completed assessments.

ii) Sales Tax assessments

a) Sales Tax assessments, for Sugar Units in Districts Moradabad and Rampur have been completed up to Financial Year 2012-13.The department has raised additional demand of R 170.97 lacs for Financial Years 2007-08, 2008-09 & 2011-12 on account of Sales Tax and Entry Tax. The Company has filed appeals with the Appellant Authority against the orders of Deputy Commissioner of Sales Tax, Moradabad. The Company has deposited R 60.24 lacs under protest and shown the same under the head Payments of Taxes under protest/appeal under Short Term Loans & Advances.

b) Sales Tax assessments for Sugar unit in District Amritsar have been completed for the financial year 2014-15 and Distillery Unit in District Tarn Taran have been completed up to Financial Year 2012-13.

c) The Department has raised the Purchase Tax demand of R 582.74 lacs, R 882.01 lacs, R 227.62 lacs and R 90.52 lacs for the Financial years 2005-06, 2009-10, 2010-11 and 2011-12 respectively.

The Company has preferred appeals against all these orders with the appellate authorities.

Though, the Company has provided purchase tax liability of R 2735.86 lacs (Previous year R

2734.20 lacs) for the years 2005-06 to 2014-15, the same has not been paid as the above mentioned appeals against assessment orders are pending with the appellate authorities.

d) The company has deposited R 49.90 lacs on account of Excise Duty under protest (Previous year R 49.90 lacs) against alleged evasion of Excise duty and the same has been shown under the head Payments of Taxes under protest/appeal under Short Term Loans & Advances. The Company has filed an appeal with CESTAT (Central Excise & Service Tax Appellant Tribunal) against the order of Commissioner, Central Excise.

e) The company has deposited R 2.50 lacs on account of Excise Duty under protest (Previous year R 2.50 lacs) and the same has been shown under the head Payments of Taxes under protest/appeal under Short Term Loans & Advances. The Company has filed an appeal with CESTAT (Central Excise & Service Tax Appellant Tribunal) against the order of Commissioner Appeals.

f) Bank Guarantees/LC''s issued R 707.99 lacs (previous year R 1096.37 lacs) are secured by pledge of FDRs of R 169.91 lacs (previous year R 232.23 lacs) and lien of R Nil (previous year R 30.00 lacs) on current a/c & counter guarantees given by the Company.

g) As per the Tripartite agreement amongst the Company, the Bankers and the Individual farmers, Bankers disburse the Crop Loan to the farmers through Company. The Company has provided corporate guarantees to the respective Banks on behalf of farmers for securing the repayment of loan with interest. The crop loans outstanding as at the end of the Financial Year were R 6159.98 lacs (Previous year R 5858.34 lacs) against the corporate guarantee given by the company amounting to R 5900.00 lacs (Previous year R 5900.00 lacs).

h) The estimated amount of contracts remaining to be executed on capital account and not provided for amounting to R 133.20 Lacs (Previous Year R 157.79 Lacs).

2 Balances of Trade Receivables, Trade Payables and advances are subject to their respective confirmation and reconciliation.

3. In the opinion of the Board of Directors, all the Current Assets, Loans and Advances, if realized in the ordinary course of business, have a value at least equal to the amount at which these are stated in the Balance Sheet.

4 Excise duty amounting to R 3312.15 Lacs (Previous year R 1743.52 Lacs) has been added in the closing stock and the same has been shown as excise duty payable. However this has no effect on the Profit/Loss for the year.

5 Borrowing Costs

During the Current year, borrowing cost amounting to NIL (Previous year R 372.51 lacs) directly attributable to capital expenditure has been capitalized.

6. Segment Reporting Primary Segment

Based on the guiding principles given in the Accounting Standard - 17 "Segment Reporting" issued by ICAI, the Company''s segments are White Crystal Sugar, Power Generation and Distillery.

Revenue and expenses have been accounted for on the basis of their relationship to the operating activities of the respective segment.

Segment Identification

Business segments have been identified on the basis of the nature of products/services, the risk return profile of individual businesses, the organizational structure and the internal reporting system of the company.

7. Related Party Disclosures:

Disclosures as required by the Accounting Standard -18 "Related Party Disclosures" issued by the ICAI are given below:

A. Relationship

a) Associate Companies

1. Rana Polycot Limited.

2. RSL Distilleries Pvt. Ltd.

3. Rana Informatics Pvt. Ltd.

4. Rana Leathers Pvt. Ltd.

5. Rana Power Ltd.

6. Superior Food Grain Pvt. Ltd.

7. Rana Energy Limited

8. Rana Green Power Limited

b) Key Management Personnel:

1. Rana Ranjit Singh - Director

2. Rana Inder Pratap Singh - Managing Director

3. Rana Veer Pratap Singh - Director

4. Rana Karan Pratap Singh - Director

c) Relatives of Key Management Personnel:

1. Rana Gurjeet Singh - Father of Rana Inder Pratap Singh

2. Rajbans Kaur - Mother of Rana Inder Pratap Singh

3. Rana Preet Inder Singh - Son of Rana Ranjit Singh

4. Sukhjinder Kaur - Wife of Rana Ranjit Singh

5. Manminder Kaur - Wife of Rana Inder Pratap Singh

6. Manpreet Kaur - Wife of Rana Karan Pratap Singh

B. Transactions with related Parties

In

9. Deferred Tax

Deferred tax assets and liabilities are being offset as they relate to taxes on income levied by the same governing taxation laws.

10. Impairment of Assets

As per Accounting Standard -28 “Impairment of Assets” issued by ICAI, the management has reviewed its cash generating units as on 31.03.2016. No indication has been found by the management to suggest that the recoverable amount of Asset is less then the carrying amount. Hence no impairment loss on asset has been recognized.

11. The Micro and Small Enterprises to whom amount is outstanding as at the year end and requiring disclosure under the Micro Small and Medium Enterprises Development Act, 2006 are as follows:

Raj Lime Industries and Nikhil Techno Chem (P) Ltd.

The above information has been compiled in respect of parties to the extent to which they could be identified as micro or small enterprises on the basis of intimation received from the “suppliers” regarding their status under the Micro Small and Medium Enterprises Development Act, 2006.

However the Company has not received any demand for Interest from any of the party.

12. Expenditure on employees:

There was no employee employed for full or part of the year who was getting remuneration in excess of the limits specified in Section 197 read with schedule V of the Companies Act, 2013

13. As per Guidance Note no.-GN(A) - 31 issued by The Institute of Chartered Accountants of India (ICAI) on Accounting for Self generated Certified Emissions Reduction, the company has recognized Renewable Energy Certificate (REC) as Inventory which has been treated according to AS-2 on Valuation of inventories issued by ICAI.

14 Crop Loan from Banks amount to R 6159.98 lacs (Previous year R 5858.34 lacs) has been shown under the head Other Liabilities and payables.

15. The Govt. of Uttar Pradesh has announced subsidy for Sugar Industry for the Season 2014-15 linked to average selling price of sugar and by-products during the period 1st October 2014 to 31st May 2015. The Company has recognized such subsidy of R 118.97 lacs (Previous year R 3186.78 lacs) and reduced the same from the cane cost and cane price payable based on present and expected likely average selling price.

16. During the Current year, Company transferred R 684.89 lacs (Previous year NIL) to Capital Redemption Reserve.

17 In preference to the Companies Act, 2013, the company has not provided for Dividend on non-cumulative Preference share in view of the stipulation imposed by the lending institutions.

18. Previous year figures have been recanted/ regrouped/ rearranged wherever necessary to make them comparable with that of current year.

---

Mar 31, 2015

1. Contingent Liabilities:-

a) Liabilities in respect of Income Tax and Sales Tax have been accounted for on the basis of respective returns filed with the relevant authorities. Additional demand, if any, arising at the time of assessment is accounted for in the year in which the assessment is completed.

i) Income Tax assessments have been completed up to the assessment year 2012-13. There is no demand pending in respect of the completed assessments.

ii) Sales Tax assessments

a) Sales Tax assessments, for Sugar Units in Districts Moradabad and Rampur have been completed up to Financial Year 2011-12.The department has raised additional demand of Rs.170.97 lacs for Financial Years 2007-08, 2008-09 & 2011-12 on account of Sales Tax and Entry Tax. The Company has filed appeals with the Appellant Authority against the orders of Deputy Commissioner of Sales Tax, Moradabad. The Company has deposited Rs. 60.24 lacs under protest and shown the same under the head Payments of Taxes under protest/appeal under Short Term Loans & Advances.

b) Sales Tax assessments for Sugar unit in District Amritsar and Distillery Unit in District Taran Taran have been completed upto Financial Year 2011-12. The Department has raised the Purchase Tax demand of Rs. 582.74 lacs, Rs. 882.01 lacs and Rs. 90.52 lacs for the Financial years 2005-06, 2009-10 and 2011-12 respectively and Sales Tax demand of Rs. 160.51 lacs and Rs. 2.78 lacs for the Financial Years 2009-10 and 2011-12 respectively. The Company has preferred appeals against all these orders with the appellate authorities.

Though, the Company has provided purchase tax liability of Rs. 2735.86 lacs (Previous year Rs.2734.20 lacs ) for the years 2005-06 to 2014-15, the same has not been paid as the above mentioned appeals against assessment orders are pending with the appellate authorities.

b) An amount of Rs. 36.96 lacs relates to disputed excise duty on bagasse (Previous year Rs. 36.96 lacs) and shown under the head Payments of Taxes under protest/appeal under Short Term Loans & Advances. The hon'ble High Court of Allahabad has quashed the order of the department, but the concerned department has filed an appeal with hon'ble Supreme Court against the decision of hon'ble High Court of Allahabad.

c) The company has deposited Rs. 49.90 lacs on account of Excise Duty under protest (Previous year Rs. 47.35 lacs) against alleged evasion of Excise duty and the same has been shown under the head Payments of Taxes under protest/appeal under Short Term Loans & Advances. The Company has filed an appeal with CESTAT (Central Excise & Service Tax Appellant Tribunal) against the order of Commissioner Central Excise.

d) The company has deposited Rs. 2.50 lacs on account of Excise Duty under protest (Previous year Rs. 2.50 lacs) and the same has been shown under the head Payments of Taxes under protest/appeal under Short Term Loans & Advances. The Company has filed an appeal with CESTAT (Central Excise & Service Tax Appellant Tribunal) against the order of Commissioner Appeals.

e) Bank Guarantees/LC's issued Rs. 1096.37 lacs (previous year Rs. 294.00 lacs) are secured by pledge of FDRs of Rs. 232.23 lacs (previous year Rs. 34.58 lacs) and lien of Rs. 30.00 lacs (previous year Rs. 40.20 lacs) on current a/c & counter guarantees given by the Company.

f) As per the Tripartite agreement amongst the Company, the Bankers and the Individual farmers, Bankers disburse the Crop Loan to the farmers through Company. The Company has provided corporate guarantees to the respective Banks on behalf of farmers for securing the repayment of loan with interest. The crop loans outstanding as at the end of the Financial Year were Rs. 5858.34 lacs (Previous year Rs. 5553.06 lacs) against the corporate guarantee given by the company amounting to Rs. 5900.00 lacs (Previous year Rs. 5700.00 lacs).

g) The estimated amount of contracts remaining to be executed on capital account and not provided for amounting to Rs. 157.79 Lacs (Previous Year Rs. 308.07 Lacs).

2. Balances of Trade Receivables, Trade Payables and advances are subject to their respective confirmation and reconciliation.

3. In the opinion of the Board of Directors, all the Current Assets, Loans and Advances, if realised in the ordinary course of business, have a value at least equal to the amount at which these are stated in the Balance Sheet.

4. Excise duty amounting to Rs. 1743.52 Lacs (Previous year Rs. 1730.48 Lacs) has been added in the closing stock and the same has been shown as excise duty payable. However this has no effect on the Profit/Loss for the year.

5. As per Accounting Standard - 15 "Employee Benefits", the disclosure of Employee Benefits as defined in the Accounting Standard are as follows:

6. Borrowing Costs

During the Current year, borrowing cost amounting to Rs. 281.29 lacs (Previous year Rs. 372.51 lacs) directly attributable to capital expenditure has been capitalized

7. Segment Reporting Primary Segment

Based on the guiding principles given in the Accounting Standard - 17 "Segment Reporting" issued by ICAI, the Company's segments are White Crystal Sugar, Power Generation and Distillery.

Revenue and expenses have been accounted for on the basis of their relationship to the operating activities of the respective segment.

Segment Identification

Business segments have been identified on the basis of the nature of products/services, the risk return profile of

8. Related Party Disclosures:

Disclosures as required by the Accounting Standard -18 "Related Party Disclosures" issued by the ICAI are given below:

A. Relationship

a) Associate Companies

1. Rana Polycot Limited.

2. RSL Distilleries Pvt. Ltd.

3. Rana Informatics Pvt. Ltd.

4. Rana Leathers Pvt. Ltd.

5. Rana Power Ltd.

6. Superior Food Grains Pvt. Ltd.

b) Key Management Personnel:

1. Rana Ranjit Singh - Chairman

2. Rana Inder Partap Singh - Managing Director

3. Rana Veer Partap Singh - Director

4. Rana Karan Partap Singh - Director

c) Relatives of Key Management Personnel:

1. Rana Gurjeet Singh - Father of Rana Inder Partap Singh

2. Rajbans Kaur - Mother of Rana Inder Partap Singh

3. Rana Preet Inder Singh - Son of Rana Ranjit Singh

4. Sukhjinder Kaur - Wife of Rana Ranjit Singh

5. Manminder Kaur - Wife of Rana Inder Partap Singh

6. Manpreet Kaur - Wife of Rana Karan Paratp Singh

9. Deferred Tax

Deferred tax assets and liabilities are being offset as they relate to taxes on income levied by the same governing taxation laws.

10. Impairment of Assets

As per Accounting Standard -28 "Impairment of Assets" issued by ICAI, the management has reviewed its cash generating units as on 31.03.2015. No indication has been found by the management to suggest that the recoverable amount of Asset is less then the carrying amount. Hence no impairment loss on asset has been recognized.

11. The Movement of Provisions as required by Accounting Standard (AS - 29) "Provisions, Contingent Liabilities and Contingent Assets" issued by ICAI are as follows:

(Rs. In Lacs.)

Particulars Opening Balance Additions as on 01.04.2014 during the year

Income Tax NIL NIL

Bonus Payable 38.22 46.36

Retirement Benefit 599.30 00.00

Particulars Paid/ Closing Balance Reversed as on 31.03.2015

Income Tax NIL NIL

Bonus Payable 38.22 46.36

Retirement Benefit 34.77 564.53

12. The Micro and Small Enterprises to whom amount is outstanding as at the year end and requiring disclosure under the Micro Small and Medium Enterprises Development Act, 2006 are as follows:

Raj Lime Industries and Nikhil Techno Chem (P) Ltd.

The above information has been compiled in respect of parties to the extent to which they could be identified as micro or small enterprises on the basis of intimation received from the "suppliers" regarding their status under the Micro Small and Medium Enterprises Development Act, 2006.

However the Company has not received any demand for Interest from any of the party.

13. Expenditure on employees:

There was no employee employed for full or part of the year who was getting remuneration in excess of the limits specified in Section 197 read with schedule V of the Companies Act, 2013

14. As per Guidance Note no.-GN(A) - 31 issued by The Institute of Chartered Accountants of India (ICAI) on Accounting for Self generated Certified Emissions Reduction, the company has recognized Renewable Energy Certificate (REC) as Inventory which has been treated according to AS-2 on Valuation of inventories issued by ICAI.

15. Crop Loan from Banks amount to Rs. 5858.34 lacs (Previous year Rs. 5553.06 lacs) has been shown under the head Other Liabilities and payables.

16. In the year 2012 Punjab State Power Corporation Limited charged electricity duty on the interstate sale of power and deducted Rs. 146.32 lacs from the amount payable. The Company challanged the levy of electricity duty in the Hon'able High Court of Punjab and Haryana, who directed PSPCL to refund the amount with interest. PSPCL preferred an appeal against this order with the Hon'able Supreme Court of India. On 5th January 2015, the Hon'able Supreme Court of India affirmed the judgement of Hon'able High Court of Punjab and Haryana. Accordingly the Company has booked the electricity duty amount of Rs. 146.32 lacs (Previous year NIL) along with interest amount of Rs. 51.17 lacs (Previous year NIL) as Income.

17. The Govt. of Uttar Pradesh has announced subsidy for Sugar Indusrty for the Season 2014-15 linked to average selling price of sugar and by-products during the period 1st October 2014 to 31st May 2015. The Company has recognised such subsidy of Rs. 3186.78 lacs (Previous year Nil) and reduced the same from the cane cost and cane price payable based on present and expected likely average selling price.

18. During the Current year, company transferred NIL (Previous year Rs. NIL) to Capital Redemption Reserve as there is loss as per Profit & Loss account.

19. During the Current year, there is a change in method of calculation of depreciation as per the requirement of Schedule - II of The Companies Act 2013. The Loss for the current year is reduced by Rs.894.60 lacs (Previous year NIL) due to change in method of depreciation.

20. Previous year figures have been recasted / regrouped / rearranged wherever necessary to make them comparable with that of current year

---

Mar 31, 2014

1. SHARE CAPITAL

Note:

The company has two classes of shares with both having par value of Rs. 10 per share. The company has not allotted any shares for consideration other than cash during the last five years. Each holder of Equity share is entitled to one vote per share.

2. Contingent Liabilities:-

a) Liabilities in respect of Income Tax and Sales Tax have been accounted for on the basis of respective returns filed with the relevant authorities. Additional demand, if any, arising at the time of assessment will be accounted for in the year in which assessment is complete.

i) Income Tax assessments have been completed up to the assessment year 2011-12. Additional demand of Rs. 110.78 lacs has been raised by the department in respect of Assessment Year 2007-08 against which the Company has filed appeal with CIT (Appeals), Chandigarh. The disputed amount of Rs. 110.78 lacs has been deposited by the Company and same is shown under the head Payments of Taxes under protest/appeal under Short Term Loans & Advances.

ii) Sales Tax assessments

a) Sales Tax assessments, for Sugar Units in Districts Moradabad and Rampur have been completed up to Financial Year 2010-11.The department has raised additional demand of Rs. 163.70 lacs for Financial Years 2007-08, 2008-09 & 2011-12 on account of Sales Tax and Entry Tax. The Company has deposited Rs. 65.00 lacs under protest and shown the same under the head Payments of Taxes under protest/appeal under Short Term Loans & Advances. The Company has filed appeals with the Appellant Authority against the orders of Deputy Commissioner of Sales Tax, Moradabad

b) Sales Tax assessments for Sugar unit in District Amritsar and Distillery Unit in District Taran Taran have been completed upto Financial Year 2011-12. The Department has raised the Purchase Tax demand of Rs. 582.74 lacs, Rs. 882.01 lacs and Rs. 90.52 lacs for the Financial years 2005-06, 2009-10 and 2011-12 respectively and Sales Tax demand of Rs. 160.51 lacs and Rs. 2.78 lacs for the Financial Years 2009-10 and 2011-12. The Company has preferred appeals against all these orders with the appellate authorities. Though, the Company has provided purchase tax liability of Rs. 2734.20 lacs (Previous year Mrs. 2248.56 lacs ) for the years 2005-06 to 2013-14, the same has not been paid as the above mentioned appeals against assessment orders are pending with the appellate authorities.

b) An amount of Mrs. 36.96 lacs relates to disputed excise duty on bagasse (Previous year Mrs. 36.96 lacs) and shown under the head Payments of Taxes under protest/appeal under Short Term Loans & Advances. The hobble High Court of Allahabad has quashed the order of the department, but the concerned department has filed an appeal with hobble Supreme Court against the decision of hobble High Court of Allahabad.

c) The company has deposited Mrs. 47.35 lacs on account of Excise Duty under protest (Previous year Rs. 47.35 lacs) against alleged evasion of Excise duty and the same has been shown under the head Payments of Taxes under protest/appeal under Short Term Loans & Advances. The Company has filed an appeal with CESTAT (Central Excise & Service Tax Appellant Tribunal) against the order of Commissioner Central Excise.

d) The company has deposited Rs. 2.50 lacs on account of Excise Duty under protest (Previous year Rs. 2.50 lacs) and the same has been shown under the head Payments of Taxes under protest/appeal under Short Term Loans & Advances. The Company has filed an appeal with CESTAT (Central Excise & Service Tax Appellant Tribunal) against the order of Commissioner Appeals.

e) Bank Guarantees/LC''s issued Rs. 294.00 lacs (previous year s 421.93 lacs) are secured by pledge of FDRs of Rs. 34.58 lacs (previous year Rs. 88.91 lacs) and lien of Mrs. 40.20 lacs (previous year Rs. 16.00 lacs) on current a/c & counter guarantees given by the Company.

f) As per the Tripartite agreement between the Company, Bankers and the Individual farmers, Banker disburses the Crop Loan to farmers through the Company. The Company has provided guarantee to the Bank on behalf of farmers for repayment of loan with interest. The crop loans outstanding as at the end of the Financial Year were Rs. 5553.06 lacs (Previous year Rs. 4923.28 lacs) against the corporate guarantee given by the company amounting to Rs. 5700.00 lacs (Previous year Rs. 5700.00 lacs).

g) The estimated amount of contracts remaining to be executed on capital account and not provided for amounting to Rs. 308.07 Lacs (Previous Year Rs. 204.77 Lacs).

3. Balances of Debtors, Creditors, Advances and Cane growers are subject to their respective confirmation and reconciliation.

4. In the opinion of the Board of Directors, all the Current Assets, Loans and Advances, if realised in the ordinary course of business, have a value at least equal to the amount at which these are stated in the Balance Sheet.

5. Excise duty amounting to Rs. 1730.48 Lacs (Previous year Rs. 1556.95 Lacs) has been added in the closing stock and the same has been shown as excise duty payable. However this has no effect on the Profit/Loss for the year.

6. Borrowing Costs

During the Current year, borrowing cost amounting to Rs. 372.51 lacs (Previous year Rs. 413.05 lacs) directly attributable to capital expenditure has been capitalized

7. Segment Reporting

Primary Segment

Based on the guiding principles given in the Accounting Standard - 17 "Segment Reporting" issued by ICAI, the Company''s segments are White Crystal Sugar, Power Generation and Distillery.

Revenue and expenses have been accounted for on the basis of their relationship to the operating activities of the respective segment.

Segment Identification

Business segments have been identified on the basis of the nature of products/services, the risk return profile of individual businesses, the organizational structure and the internal reporting system of the company.

8. Related Party Disclosures:

Disclosures as required by the Accounting Standard-18 "Related Party Disclosures" issued by the ICAI are given below:

A. Relationship

a) Associate Companies

1. Rana Polycot Limited.

2. RSL Distilleries Pvt. Ltd.

3. Rana Informatics Pvt. Ltd.

4. Rana Leathers Pvt. Ltd.

5. Rana Infrastructure Pvt. Ltd.

6. Rana Power Ltd.

7. Superior Food Grain Pvt. Ltd.

b) Key Management Personnel:

1. Rana Ranjit Singh - Chairman

2. Rana Inder Pratap Singh - Managing Director

3. Rana Veer Pratap Singh - Director

4. Rana Karan Pratap Singh - Director

c) Relatives of Key Management Personnel:

1. Rana Gurjeet Singh - Father of Rana Inder Partap Singh

2. Rajbans Kaur - Mother of Rana Inder Partap Singh

3. Rana Preet Inder Singh - Son of Rana Ranjit Singh

4. Sukhjinder Kaur. Wife of Rana Ranjit Singh

5. Amritpal Singh Gill - Father-in-law of Rana Inder Pratap Singh

6. Charan Kaur - Aunt of Rana Inder Pratap Singh

7. Jagdeep Kaur Gill - Mother-in-law of Rana Inder Pratap Singh

8. Parampreet Singh - Uncle of Rana Karan Pratap Singh

9. Purewal Farms - Owned by Parampreet Singh, Uncle of Rana Karan Pratap Singh

10. Tarsem Gill Uncle of Rana Inder Pratap Singh

11. Varinder Gill Aunt of Rana Inder Pratap Singh

12. Varinder Kaur -Aunt of Rana Karan Pratap Singh

13. Mohanjeet Singh Pooni Cousin of Rana Inder Pratap Singh

9. Deferred Tax

Deferred tax assets and liabilities are being offset as they relate to taxes on income levied by the same governing taxation laws.

Deferred tax Asset amounting to Rs. 559.48 has been recognized as a Deferred Tax Asset.

10. Impairment of Assets

As per Accounting Standard -28 "Impairment of Assets" issued by ICAI, the management has reviewed its cash generating units as on 31.03.2013. No indication has been found by the management to suggest that the recoverable amount of Asset is less than the carrying amount. Hence no impairment loss on asset has been recognized.

11. The Micro and Small Enterprises to whom amount is outstanding as at the year end and requiring disclosure under the Micro Small and Medium Enterprises Development Act, 2006 are as follows: Chemicals & Chemicals, Raj Lime Industries and Nikhil Techno Chem (P) Ltd.

The above information has been compiled in respect of parties to the extent to which they could be identified as micro or small enterprises on the basis of intimation received from the "suppliers" regarding their status under the Micro Small and Medium Enterprises Development Act, 2006. However the Company has not received any demand for Interest from any of the party.

12. Expenditure on employees:

There was no employee employed for full or part of the year who was getting remuneration in excess of the limits specified in Section 217 (2A) of the Companies Act, 1956

13. As per Guidance Note no.-GN(A) 31 Issed by The Institute of Chartered Accountants of India (ICAI) on Accounting for Self generated Certified Emissions Reduction, the company has recognized Renewable Energy Certificate (REC) as Inventory which has been treated according to AS-2 on Valuation of inventories issued by ICAI.

14. Extra ordinary items include Loss of Cash in transit amounting to Nil (Previous year Rs. 14.37 lacs).

15. Crop Loan from Banks amount to Rs. 5553.06 lacs (Previous year Rs.4923.28 lacs) has been shown under the head Other Liabilities and payables under Other Current Liabilities.

16. During the Current year, company transferred NIL (Previous year s 342.45 lacs) to Capital Redemption Reserve as there is loss as per Profit & Loss account.

17. Previous year figures have been recasted/ regrouped/ rearranged wherever necessary to make them comparable with that of current year.

---

Mar 31, 2013

1.1 Contingent Liabilities:-

a) Liabilities in respect of Income Tax and Sales Tax have been accounted for on the basis of respective returns filed with the relevant authorities. Additional demand, if any, arising at the time of assessment will be accounted for in the year in which assessment is complete.

i) Income Tax assessments have been assessed up to the assessment year 2010-11 and there are demands of s 1.96 lacs and s 110.78 lacs against which the company has filed appeals with CIT (Appeals) Chandigarh.

ii) Sales Tax assessments have been completed up to assessment year 2004-05 for Punjab units & 2009-10 for Uttar Pradesh units and there is no demand outstanding in respect of these assessments.

b) An amount of s 36.95 lacs relates to disputed excise duty on bagasse (Previous year s 36.95 lacs) and shown under the head Payments of Taxes under protest/appeal under Short Term Loans & Advances. The Company has filed an appeal with the Appellate Authority.

c) The company has deposited s 47.35 lacs on account of Excise Duty under protest (Previous year s 47.35 lacs) and the same has been shown under the head Payments of Taxes under protest/appeal under Short Term Loans & Advances. The Company has filed an appeal with the Appellate Authority against the order of Commissioner Central Excise.

d) The company has deposited s 65.00 lacs on account of Sales tax under protest (Previous year s 60.00 lacs) against the total demand of s 163.70 lacs and the same has been shown under the head Payments of Taxes under protest/appeal under Short Term Loans & Advances. The Company has filed an appeal with the Appellate Authority against the order of Deputy Commissioner Sales Tax.

e) The company has deposited s 2.50 lacs on account of Excise Duty under protest (Previous year s 2.50 lacs) and the same has been shown under the head Payments of Taxes under protest/appeal under Short Term Loans & Advances. The Company has filed an appeal with the Appellate Authority against the order of Commissioner Appeals.

f) The company has deposited s 2.47 lacs on account of Excise Duty under protest (Previous year Nil) and the same has been shown under the head Payments of Taxes under protest/appeal under Short Term Loans & Advances. The Company has filed an appeal with the Appellate Authority.

g) Bank Guarantees/LC''s issued s 421.93 lacs (previous year s 1339.58 lacs) are secured by pledge of FDRs of s 88.91 lacs (previous year s 215.83 lacs ) and lien of s 16.00 lacs (previous year s 40.00 lacs) on current a/c & counter guarantees given by the Company.

h) The estimated amount of contracts remaining to be executed on capital account and not provided for amounting to s 204.77 Lacs (Previous Year s 8.42 Lacs).

1.2 Balances of Debtors, Creditors, Advances and Cane growers are subject to their respective confirmation and reconciliation.

1.3 In the opinion of the Board of Directors, all the Current Assets, Loans and Advances, if realised in the ordinary course of business, have a value at least equal to the amount at which these are stated in the Balance Sheet.

1.4 Excise duty amounting to s 1556.95 Lacs (Previous year s 1604.97 Lacs) has been added in the closing stock and the same has been shown as excise duty payable. However this has no effect on the Profit/Loss for the year.

1.5 As per Accounting Standard - 15 "Employee Benefits", the disclosure of Employee Benefits as defined in the Accounting Standard are as follows:

(i) The Company has taken the policy for gratuity with LIC''s Group Gratuity Scheme and made a provision of gratuity as per actuarial valuation certificate.

Summary of membership data of valuation and statistics based thereon:

1.6 Borrowing Costs

During the Current year borrowing cost amounting to s 413.05 lacs (Previous year Nil) directly attributable to capital expenditure has been capitalized

1.7 Segment Reporting

Primary Segment

Based on the guiding principles given in the Accounting Standard – 17 "Segment Reporting" issued by ICAI, the Company''s segments are White Crystal Sugar, Power Generation and Distillery.

Revenue and expenses have been accounted for on the basis of their relationship to the operating activities of the respective segment.

Segment Identification

Business segments have been identified on the basis of the nature of products/services, the risk return profile of individual businesses, the organizational structure and the internal reporting system of the company.

1.8 Related Party Disclosures:

Disclosures as required by the Accounting Standard -18 "Related Party Disclosures" issued by the ICAI are given below:

A. Relationship

a) Associate Companies

1. Rana Polycot Limited.

2. RSL Distilleries Pvt. Ltd.

3. Rana Informatics Pvt. Ltd.

4. Rana Leathers Pvt. Ltd.

5. Rana Infrastructure Pvt. Ltd.

6. Rana Power Ltd.

7. Superior Food Grain Pvt. Ltd.

b) Key Management Personnel:

1. Rana Ranjit Singh – Chairman

2. Rana Inder Pratap Singh – Managing Director

3. Rana Veer Pratap Singh – Director

4. Rana Karan Pratap Singh - Director

c) Relatives of Key Management Personnel:

1. Rana Gurjeet Singh - Father of Rana Inder Pratap Singh

2. Mrs. Rajbans Kaur - Mother of Rana Inder Pratap Singh

3. Rana Preet Inder Singh - Son of Rana Ranjit Singh

4. Mrs. Sukhjinder Kaur. – Wife of Rana Ranjit Singh

1.9 Deferred Tax

Deferred tax assets and liabilities are being offset as they relate to taxes on income levied by the same governing taxation laws.

1.10 Impairment of Assets

As per Accounting Standard -28 "Impairment of Assets" issued by ICAI, the management has reviewed its cash generating units as on 31.03.2013. No indication has been found by the management to suggest that the recoverable amount of Asset is less than the carrying amount. Hence no impairment loss on asset has been recognized.

1.11 The Micro and Small Enterprises to whom amount is outstanding as at the year end and requiring disclosure under the Micro Small and Medium Enterprises Development Act, 2006 are as follows:

Chemicals & Chemicals, Raj Lime Industries and Nikhil Techno Chem (P) Ltd.

The above information has been compiled in respect of parties to the extent to which they could be identified as micro or small enterprises on the basis of intimation received from the "suppliers" regarding their status under the Micro Small and Medium Enterprises Development Act, 2006.

1.12 The company has given guarantees against crop loans of s 4923.28 lacs (previous year s 4651.79 lacs) availed by the farmers.

1.13 The company has filed an appeal with the Hon''ble Supreme Court against the Imposition of Purchase Tax on Sugarcane and the same is still pending. The total amount of Purchase Tax works out to s 2248.56 lacs (Previous year s 2075.32 lacs) which has been provided but not paid.

1.14 Extra ordinary items includes Loss of Cash in transit amounting to s 14.37 lacs (Previous year Nil).

1.15 During the Current year, company transferred s 342.45 lacs (Previous year Nil) to Capital Redemption Reserve.

1.16 In Preference to the Companies Act, 1956, the company has not provided for Dividend on non- cumulative Preference share in view of the stipulation imposed by the lending institutions.

1.17 Previous year figures have been recasted/ regrouped/ rearranged wherever necessary to make them comparable with that of current year.

---

Mar 31, 2012

1.1 Contingent Liabilities:-

a) Liabilities in respect of Income Tax and Sales Tax have been accounted for on the basis of respective returns filed with the relevant authorities. Additional demand, if any, arising at the time of assessments is accounted for in the year in which the assessments are completed.

i) Income Tax assessments have been completed up to the assessment year 2009-10. There is no demand in respect of the assessment Years upto 2009-10.

ii) Sales Tax assessments have been completed up to the assessment year 2004-05 for Punjab units & 2008-09 for Uttar Pradesh units.

b) An amount of Rs. 36.95 lacs (Previous year Rs. 24.61 lacs) has been reduced from Cenvat Receivable on account of disputed excise duty on bagasse and the same has been shown under the head Payments of Taxes under protest/appeal under Loans & Advances. The Company has filed an appeal with the Appellate Authority.

c) The company has deposited Rs. 47.35 lacs on account of Excise Duty under protest (Previous year Rs. 12.36 lacs) and the same has been shown under the head Payments of Taxes under protest/appeal under short term Loans & Advances. The Company has filed an appeal with the Appellate Authority against the order of Commissioner, Central Excise.

d) The company has deposited Rs. 80.26 lacs on account of Entry tax under protest (Previous year Rs. 26.99 lacs) and the same has been shown under the head Payments of Taxes under protest/appeal under Loans & Advances. The Company has filed an appeal with the Appellate Authority against the order of Deputy Commissioner, Sales Tax.

e) The company has deposited Rs. 2.50 lacs on account of Excise Duty under protest (Previous year Rs. 2.50 lacs) and the same has been shown under the head Payments of Taxes under protest/appeal under Loans & Advances. The Company has filed an appeal with the Appellate Authority against the order of Commissioner Appeals.

f) BankGuarantees/LC's issued to PEC Limited and other companies amounting toRs. 1339.58 lacs (previous year Rs. 2780.36 lacs) are secured by pledge of FDRs of Rs. 215.83 lacs (previous year Rs. 410.67 lacs) and lien ofRs. 40 lacs on current a/c & counter guarantees given by the Company.

g) The estimated amount of contracts remaining to be executed is Rs. 8.42 Lacs (Previous Year Rs. 238.61 Lacs).

1.2 Balances of Debtors, Creditors, Advances and Cane growers are subject to their respective confirmation and reconciliation.

1.3 In the opinion of the Board of Directors, all the Current Assets, Loans and Advances, if realised in the ordinary course of business, have a value at least equal to the amount at which these are stated in the Balance Sheet.

1.4 Excise duty amounting toRs. 1604.97 Lacs (Previous yearRs. 1338.66 Lacs) has been added in the closing stock and the same has been shown as excise duty payable. However this has no effect on the Profit/(Loss) for the year.

1.5 As per Accounting Standard -15 "Employee Benefits", the disclosure of Employee Benefits as defined in the Accounting Standard are as follows:

(i) The Company has taken the policy for gratuity with LIC's Group Gratuity Scheme for its unit at Amritsar and Head Office at Chandigarh and paid annual premium of Rs. 12.00 Lacs for the year ended 31st March 2012. The following are the actuarial assumptions taken based on which the premium has been determined:

- Discounting factor 8%

- Salary Increase 7%

(ii) The Company has made provision of gratuity for its units at Moradabad, Rampur and Tarn Taran as per actuarial valuation certificate.

(iii) The Company has made provision for leave Encashment as per the Actuarial valuation certificate.

1.6 Segment Reporting

Primary Segment

Based on the guiding principles given in the Accounting Standard - 1 7 "Segment Reporting" issued by ICAI, the Company's segments are White Crystal Sugar, Power Generation and Distillery.

Revenue and expenses have been accounted for on the basis of their relationship to the operating activities of the respective segment.

Segment Identification

Business segments have been identified on the basis of the nature of products/services, the risk return profile of individual businesses, the organizational structure and the internal reporting system of the company.

1.7 Related Party Disclosures:

Disclosures as required by the Accounting Standard -18 "Related Party Disclosures" issued by the ICAI are given below:

A. Relationship

a) Associate Companies

1. Rana Polycot Limited.

2. RSL Distilleries Pvt. Ltd.

3. Rana Informatics Pvt. Ltd.

4. Rana Leathers Pvt. Ltd.

5. Rana Infrastructure Pvt. Ltd.

6. Rana Power Ltd.

7. Superior Food Grain Pvt. Ltd.

b) Key Management Personnel:

1. RanaRanjitSingh -Chairman

2. Rana Inder Partap Singh - Managing Director

3. Rana Veer Partap Singh - Director

4. Rana Karan Partap Singh-Director

c) Relatives of Key Management Personnel:

1. Rana Gurjeet Singh

2. Mrs. Rajbans Kaur

3. Rana Preet Inder Singh

4. Mrs. Sukhjinder Kaur.

1.8 Deferred Tax Liability

Deferred tax assets and liabilities are being offset as they relate to taxes on income levied by the same governing taxation laws.

Major components of Deferred Tax Assets and Liabilities:-

During the year ended 31st March, 2012 deferred tax asset worth Rs. 678.37 lacs has been generated, which has not been recognized as a matter of prudence.

1.9 Impairment of Assets

As per Accounting Standard -28 "Impairment of Assets" issued by ICAI, the management has reviewed its cash generating units as on 31.03.2012. No indication has been found by the management to suggest that the recoverable amount of Asset is less then the carrying amount. Hence no impairment loss on asset has been recoenized.

1.10 The Micro and Small Enterprises to whom amount is outstanding as at the year end and requiring disclosure under the Micro Small and Medium Enterprises Development Act, 2006 are as follows:

Chemicals & Chemicals, Raj Lime Industries, Allied Alloys Product, Gita Flow Pumps Pvt. Ltd. and Nikhil Techno Chem(P) Ltd.

The above information has been compiled in respect of suppliers to the extent to which they could be identified as micro or small enterprises on the basis of intimation received from the "suppliers" regarding their status under the Micro Small and Medium Enterprises Development Act, 2006.

1.11 Expenditure on employees:

There was no employee employed for full or part of the year who was getting remuneration in excess of the limits specified in Section 217 (2A) of the Companies Act, 1956

Break up of expenditure incurred on employees in receipt of remuneration aggregating to Rs. 60,00,000/- per annum or Rs. 5,00,000/- or more per month

1.12 No amount has been transferred to Capital Redemption Reserve as the company has incurred losses during the year.

1.13 The company has given guarantees against crop loans ofRs. 4651.79 lacs (previous yearRs. 4069.64 lacs) availed by the farmers. The loan given by the company to the farmers is included in Advances recoverable in cash or in kind or for value to be received.

1.14 The company has made provision for Purchase tax on sugar cane amounting to Rs. 315.00 lacs (Previous year Rs. 554.56 lacs). However, the same has not been paid as the matter is under appeal with the Hon'ble Supreme Court.

1.15 During the year dividend amounting to Rs. 14.21 lacs, which have remained unclaimed for a period of seven years have been transferred to Investor Education & Protection Fund.

1.16 Previous year figures have been recasted/regrouped/rearranged wherever necessary to make them comparable with that of current year.

---

Mar 31, 2010

1. Contingent Liabilities:

a) Liabilities in respect of Income Tax and Sales Tax have been accounted for on the basis of respective returns filed with the relevant authorities. Additional demand, if any, arising at the time of assessments will be accounted for in the year in which the assessments are completed.

i) Income Tax assessments have been completed up to the assessment year 2007-08.

ii) Sales Tax assessments have been completed up to assessment year 2004-05 for Punjab units & 2007-08 for Uttar Pradesh units. There is no demand pending in respect of the completed assessments.

b) The Company has deposited Rs. 3.78 Lacs (Previous Year 3.78 Lacs) under protest in respect of Entry Tax on Sugar which has not been provided for.

c) Bank Guarantees/LCs issued to PEC Limited, MMTC Limited & other companies amounting to Rs. 4419.85 lacs (previous year Rs. 491.90 lacs) are secured by pledge of FDRs of Rs.646.16 lacs (previous year Rs. 131.65 lacs ) and lien with current account of Rs.40 lacs & counter guarantees given by the Company.

d) The estimated amount of contracts remaining to be executed on capital account is Rs. 118.90 Lacs (Previous Year: - 1430.07 Lacs).

e) The company has debited Cenvat Receivable on account of excise duty under protest on Bagasse amounting to Rs. 21.36 Lacs (Previous year Nil).

f) The company has given guarantees against crop loans of Rs. 4047.36 lacs (previous year 4371.46 lacs) availed by the farmers. The loan given by the company to the farmers is included in crop & other advances.

2. Balances of Debtors, Creditors, Advances and Cane growers are subject to their respective confirmation and reconciliation.

3. In the opinion of the Board of Directors, all the Current Assets, Loans and Advances, if realised in the ordinary course of business, have a value at least equal to the amount at which these are stated in the Balance Sheet.

4. As required by Accounting Standard 2 " Valuation of Inventories" issued by The Institute of Chartered Accountants of India (ICAI) read with Accounting Standard Interpretation 14, the Excise duty amounted to Rs. 1139.13 Lacs (Previous year Rs. 639.83 Lacs) has been added in the closing stock and the same has been shown as excise duty payable. However this has no effect on the Profit/Loss for the period.

5. As required by Accounting Standard (AS) 15 "Employee Benefits" issued by ICAI, the Company has taken the policy for gratuity with LICs Group Gratuity Scheme and paid annual premium of Rs. 21.74 Lacs as determined by the LIC for the period ended 31 March 2010. The following are the actuarial assumptions taken based on which the premium has been determined:

Discounting factor 8.00%

Salary Increase 7.00%

As required by Accounting Standard (AS) 15 "Employee Benefits" issued by ICAI, the Company has made provision for leave encashment as per the Actuarial valuation certificate.

6. As required by AS-16 "Borrowing Costs" issued by ICAI, the Borrowing Cost capitalized in the current year is Rs. Nil (Previous Year Rs.1633.74 Lacs).

7. Segment Reporting Primary Segment

Based on the guiding principles given in the Accounting Standard 17 "Segment Reporting" issued by ICAI, the Companys segments are White Crystal Sugar, Power Generation and Distillery. Revenue and expenses have been accounted for on the basis of their relationship to the operating activities of the respective segment. a) Segment Identification - Business segments have been identified on the basis of the nature of products/services, the risk return profile of individual businesses, the organizational structure and the internal reporting system of the company.

8. Related Party Disclosures :

Disclosures as required by the Accounting Standard -18 "Related Party Disclosures" issued by the ICAI are given below:

A. Relationship

a) Associate Companies

1. Rana Polycot Limited. 2. RSL Distilleries Pvt Ltd. 3. Rana Informatics Pvt. Ltd. 4. Rana Leathers Pvt. Ltd. 5. R.G.S.Traders Pvt. Ltd. 6. Rana Infrastructures Pvt. Limited 7. Rana Power Ltd.

b) Key Management Personnel

1. Rana Ranjit Singh Chairman 2. Rana Inder Partap Singh Managing Director 3. Rana Veer Partap Singh Director 4. Rana Karan Partap Singh Director

c) Relatives of Key Management Personnel

1. Rana Gurjeet Singh 2. Mrs. Rajbans Kaur 3. Rana Preet Inder Singh 4. Mrs. Sukhjinder Kaur

9. Impairment of Assets

As per Accounting Standard -28 "Impairment of Assets" issued by ICAI, the management has reviewed its cash generating units as on 31.03.2010. No indication has been found by the management to suggest that the recoverable amount of Asset is less than the carrying amount. Hence no impairment loss on asset has been recognized.

10. There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at 31 March, 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

11. Expenditure on employees

There was no employee employed for full or part of the year who was getting remuneration in excess of the limits specified in Section 217 (2A) of the Companies Act, 1956.

12. In Preference to the companies Act, 1956 the company has not provided for Dividend on non- comulative Preference shares in lieu of the Stipulation imposed in the Capital Debt Restructuring Package.

13. The company has entered into contracts for import of 85000 MT of raw sugar at an average price of US$ 538.53. The company is of the opinion that there will be no loss on processing the same.

14. Value of Imports

Capital goods imported NIL (Previous year 211 7.62 Lacs)

Raw material imported CIF value Rs. 8734.34 Lacs (Previous year NIL)

15. Bank balances include an amount of Rs.14.23 Lacs (Previous Year 14.25 Lacs) for unclaimed dividend for financial year 2004-05.

16. During the period, Carbon Credit Income amounting to be Rs. 1023.15 lacs has been booked on accrual basis.

17. In case of Profit & Loss Account, the figures for the current period are not comparable with the figures of the previous year, as the current period figures are for 18 months while the previous year figures were for 12 months.

18. Previous year figures have been recasted / regrouped / rearranged wherever necessary to make them comparable with that of current year.