Notes to Accounts of Shree Hanuman Sugar & Industries Ltd.

Mar 31, 2024

k) Provisions, contingent liabilities and contingent

assets

Provision is recognised in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is
considered probable.

A provision is recognized, if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to settle the obligation.

Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the balance
sheet date.

Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date. Re-imbursement expected in respect of
expenditure to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

A Contingent Asset / Liability are not recognized in the Accounts.

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

For B D S & Co.

Chartered Accountants

Firm Registration No. 326264E For Shree Hanuman Sugar & Industries Ltd.

Bharat D Sarawgee Datta Ram Gill Chinmoy De

Partner Director Director

Membership No. 061505 DIN: 03366342 DIN: 09057498

Place : Kolkata
Dated : 24/05/2024

22. Notes Forming Part of Financial Statements
l.Contingent Liabilities

i. The Company had given a guarantee to the Bank of India for cash credit facilities of Rs. 250 lacs, Working Capital Term Loan
for Rs. 650 lacs and guarantee issue facility to the extent of Rs. 150 lacs sanctioned to Eastern Sugar & Industries Limited.
Eastern Sugar & Industries Limited had defaulted in payment of dues to its financial creditors including Bank of India. The
financial creditors has filed before NCLT U/s. 7 of the IBC and COC formed & Resolution Professional(RP) is appointed. Bank of
India forms part of the said Committee of Creditors (COC). Resolution plan has been approved by the Hon''ble NCLT vide order
dated 04/10/2023. DRT, Patna, has issued order dated 15.03.2024 attaching the PAN of the company.

ii. The Company has given guarantee and has mortgaged, by way of deposit of title deeds, all immovable properties pertaining
to its sugar division situated at Motihari, Champaran East, Bihar as security inter-alia for the punctual payment of Lease
Rentals, Cost Compensatory and Finance Charges, expenses and other moneys payable by Eastern Sugar & Industries Limited
to IDBI in respect of assistance granted under Equipment Lease Finance Scheme and Term Loan aggregating to Rs. 2625 lacs
who had initiated Corporate insolvency Resolution Process for recovery and the case was admitted with NCLT on 11.02.2022.
Resolution Plan has been approved by the Hon''ble NCLT vide order dated 04/10/2023 . In view of the resolution plan being
executed successfully by the applicant of the resolution plan, the Company assumes the liability of the guarantor is
extinguished.

The SASF had acquired the above mentioned stressed assets of IDBI (Dues payable by Eastern Sugar to IDBI against which
company has given the guarantee) and had issued notice of U/s 13(2) of the SARFAESI Act dated 18.01.2023 for recovery from
the Guarantors and/or Mortgagers. Further, they have also made an application u/s 7 of the IBC Act before NCLT, Kolkata
bench for the recovery of the dues, the same is yet to be admitted. An affidavit has been filed by the company on the grounds
that once the resolution plan of the principal debtor Eastern Sugar has been approved by NCLT on 04.10.23,the settlement
mechanism of debt is already devised, and so the same debt cannot be again contested against guarantors to unjustly enrich
the lender as seeking double recovery is against the Bankruptcy Code.

iii. The Company had determined the lease with The Eastern Sugar & Industries Ltd., which was terminated w.e.f 1st June, 2006.
All the fixed assets of the said lessee company will be acquired on deferred payment basis over a number of years by the
Company at a value (to be ascertained) on the date of transfer. Such purchases shall be accounted for as and when the assets
are acquired and the amount payable for such purchases / acquisition of fixed assets shall be adjusted against loans given to
and other claims due from the lessee company. All Fixed Assets of Eastern Sugar & Industries Limited which were to be
acquired by Shree Hanuman Sugar & Industries Limited is covered in the Resolution Plan, hence the understanding of Eastern
Sugar & Industries Limited and Shree Hanuman Sugar & Industries Limited for such purchase/acquisition of fixed assets of
Eastern Sugar & Industries Limited stands nullified.

iv Income Tax Disputed Cases which have not been provided in books pending settlement

7 Financial Instruments- Accounting, Classification and Fair Value Measurements contd..

B. Fair Values Hierarchy

i) Financial assets and financial liabilities measured at fair value in the statement of financial position are
Companied into three Levels of a fair value hierarchy. The three Levels are denied based on the observability of
significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximise the use of observable market data rely as little as possible on entity specific
estimates.

8. Risk Management

Operations of company are suspended since 2014, hence major risks of Credit, liquidity and financial risk due for
management by the company are restricted to outsatnding balances in the books which are primarily non moving.

Company does not have any operational debtors outstanding balance, hence the trade credit risk is absent.
Financial and Liquidity risks are restricted to the outstanding loan balances which are not being repaid.

11 Additional Disclosures

Plant is Inoperative since 2014 but management has not taken any impairment since. Only Capital Work In progress expenses were written off

in the year 2021-22 .
a.

b Deferred T ax has not been recognized in the books.

TDS on interest other than interest on securities, rent, salary & fee for professional & Technical services u/s 194-A, 192 & 192-J respectively,

c. of Income Tax Act, 1961 have not been deducted and / or deposited / deposited in time. Interest and penalty on delayed deposit if any, will be

d. Gratuity, Leave liabilities towards employees, bonus & income from interest on securities and other deposits are being accounted for on cash

e. Professional Taxes and Trade License Fees are accounted for on cash basis.

f. Balance Confirmation Certificates for loans given and taken and Creditors are awaited from respective parties.

g. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

h. The Company has no borrowings from any bank/Financial institution which is secured against property. Though the property is secured

i. The Company have never been declared wilful defaulter by any bank or financial institution or government or any government authority.

j. The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

k. The Company has complied with the number of layers prescribed under the Companies Act, 2013.

l. The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

m. The Company has not borrowed any fund from any bank/Financial institution.

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act,

1961, that has not been recorded in the books of account.

n.

o. The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

p. The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.

Copies of the title deeds of the immovable property held in the name of the company are not available with the company, since the same was

q. mortgaged to IDBI for Financial assisstance to Eastern Sugar & Industruies Ltd.

---

Jun 30, 2014

I) Contingent Liabilities

a. The company has given a guarantee to the Bank of India for cash credit facilities of Rs.250 lacs, Working Capital Term Loan for Rs.650 lacs and guarantee issue facility to the extent of Rs.150 lacs sanctioned to Eastern Sugar & Industries Limited.

b. The company has mortgaged, by way of deposit of title deeds, all immovable properties pertaining to its sugar division situated at Motihari, Champaran East, Bihar as security interalia for the punctual payment of Lease Rentals, Cost Compensatory and Finance Charges, expenses and other moneys payable by Eastern Sugar & Industries Limited to IDBI in respect of assistance granted under Equipment Lease Finance Scheme and Term Loan aggregating to Rs. 2625 lacs.

c. The Company had determined lease with The Eastern Sugar & Industries Ltd in the accounting year 2005 - 2006 and as per the terms and conditions of the agreement entered into with the said lessee company, all the fixed assets of the said lessee company will be acquired on deferred payment basis over a number of years by the Company at a value (to be ascertained) on the date of transfer. Such purchases shall be accounted for as and when the assets are acquired and the amount payable for such purchases/acquisition of fixed assets shall be adjusted against loans given to and other claims due from the lessee company. Contingent liability for such amount payable to the said Company for acquisition of its fixed assets has not therefore been provided in the books of the Company.

ii) There is no impairment of assets. The management expects to recover amount higher than the carrying value of fixed assets.

iii) Deferred Tax has not been recognized in the books.

iv) T.D.S. on interest other than interest on securities, rent, salary & fee for professional & Technical services u/s 194-A, 192 & 192-J respectively, of Income Tax Act, 1961 have not been deducted and deposited in time. Interest and penalty on delayed deposit if any, will be accounted for on cash basis.

v) Gratuity, Leave liabilities towards employees, bonus & income from interest on securities and other deposits are being accounted for on cash basis.

vi) Professional Taxes and Trade License Fees are to be accounted for on cash basis.

vii) Balance Confirmation Certificates from Debtors and Creditors are awaited from the respective parties.

xiv) Figure''s of Previous Year have been re-arranged and re-grouped wherever considered necessary.

---

Jun 30, 2013

I) Contingent Liabilities

a. The company has given a guarantee to the Bank of India for cash credit facilities of Rs.250 lacs, Working Capital Term Loan for Rs.650 lacs and guarantee issue facility to the extent of Rs.150 lacs sanctioned to Eastern Sugar & Industries Limited.

b. The company has mortgaged, by way of deposit of title deeds, all immovable properties pertaining to its sugar division situated at Motihari, Champaran East, Bihar as security interalia for the punctual payment of Lease Rentals, Cost Compensatory and Finance Charges, expenses and other moneys payable by Eastern Sugar & Industries Limited to IDBI in respect of assistance granted under Equipment Lease Finance Scheme and Term Loan aggregating to Rs. 2625 lacs.

c. The Company had determined lease with The Eastern Sugar & Industries Ltd in the accounting year 2005 – 2006 and as per the terms and conditions of the agreement entered into with the said lessee company, all the fixed assets of the said lessee company will be acquired on deferred payment basis over a number of years by the Company at a value (to be ascertained) on the date of transfer. Such purchases shall be accounted for as and when the assets are acquired and the amount payable for such purchases/acquisition of fixed assets shall be adjusted against loans given to and other claims due from the lessee company. Contingent liability for such amount payable to the said Company for acquisition of its fixed assets has not therefore been provided in the books of the Company.

ii) During the year the company has issued 25,00,000 equity shares of Rs. 10 each/- to the holders of 17% secured Non-Convertible debenture of Rs.100 each/- by redemption of the said debentures, at a premium of Rs. 6.05 per share as per arbitration award from Hon''ble Justice Ajit Sengupta (Retd.) dated 12-02-2011.

iii) There is no impairment of assets. The management expects to recover amount higher than the carrying value of fixed assets.

iv) Deferred Tax has not be recognized in the books.

v) T.D.S. on interest other than interest on securities, salary & fee for professional & Technical services u/s 194-A, 192 & 192-J respectively, of Income Tax Act, 1961 have not been deducted and deposited in time. Interest and penalty on delayed deposit if any, will be accounted for on cash basis.

vi) Gratuity, Leave liabilities towards employees, bonus & income from interest on securities and other deposits are being accounted for on cash basis.

vii) Professional Taxes and Trade License Fees are to be accounted for on cash basis.

viii) Balance Confirmation Certificates from Debtors, Creditors and Banks are awaited from the respective parties.

ix) The Company has made an ad hoc provision for gratuity amounting to Rs.14.93 lacs in the year 2012-2013 on the basis of calculation made by the management and the same is considered adequate to cover liability on account of Gratuity. However, no actuarial valuation has been made as per AS – 15.

x) The company has revalued land by Rs.200 lacs during the year 2012-2013 as certified by the management which resulted in an increase in the value of fixed assets by the said amount and the same has been credited to Revaluation Reserve.

---

Jun 30, 2012

1. CONTINGENT LIABILITIES:

a. The company has given a guarantee to the Bank of India for cash credit facilities of Rs.250 lacs, Working Capital Term Loan for Rs.650 lacs and guarantee issue facility to the extent of Rs.150 lacs sanctioned to Eastern Sugar & Industries Limited.

b. The company has mortgaged, by way of deposit of title deeds, all immovable properties pertaining to its sugar division situated at Motihari, Champaran East, Bihar as security interalia for the punctual payment of Lease Rentals, Cost Compensatory and Finance Charges, expenses and other moneys payable by Eastern Sugar & Industries Limited to IDBI in respect of assistance granted under Equipment Lease Finance Scheme and Term Loan aggregating to Rs. 2625 lacs.

c. The Company had determined lease with The Eastern Sugar & Industries Ltd in the accounting year 2005 - 2006 and as per the terms and conditions of the agreement entered into with the said lessee company, all the fixed assets of the said lessee company will be acquired on deferred payment basis over a number of years by the Company at a value (to be ascertained) on the date of transfer. Such purchases shall be accounted for as and when the assets are acquired and the amount payable for such purchases/acquisition of fixed assets shall be adjusted against loans given to and other claims due from the lessee company. Contingent liability for such amount payable to the said Company for acquisition of its fixed assets has not therefore been provided in the books of the Company.

2. In some cases T.D.S. have not been deducted and deposited in time. Interest and penalty on T.D.S., Advance Tax & Income Tax dues, Dividend Tax if any, will be accounted for on cash basis.

3. Leave encashment by the employees of the company except in the case of his or her death while in service is not allowed by the Company. Leave liability is, therefore, accounted for on cash basis.

4. Professional Taxes and Trade License Fees are to be accounted for on cash basis.

5. Balance Confirmation Certificates from Debtors, Creditors and Banks are awaited from the respective parties.

6. There is no amount due to Micro and Small Enterprises as on the Balance Sheet date in excess of Rupees One lac to the extent such parties have been identified from the available information/ documents.

7. The Company has made an ad hoc provision for gratuity amounting to Rs. 33.25 lacs in the year 2006-07 on the basis of calculation made by the management and the same is considered adequate to cover liability on account of Gratuity. However, no acturial valuation has been made as perAS-15.

8. Depreciation on fixed assets has been provided on straight-line basis as specified in clause 1(c) of Accounting Policies stated above.

9. The company has revalued land by Rs. 3.75 crores during the year 2011-2012 as certified by the management which resulted in an increase in the value of fixed assets by the said amount and the same has been credited to Revaluation Reserve.

10. Award dated 12th February, 2011 is granted by way of arbitration for conversion to the holders of 17% Unsecured Redeemable Debentures into 25,00,000 equity shares at a premium of Res. 6.05 each.

11. In accordance with the requirements under the Accounting Standard (AS-22), Deferred Tax Assets (net) at the year end arising out of carry forward Business losses, carry forward of Long Term Capital Loss and unabsorbed depreciation has not been recognized in the current year in the accounts. The accounting treatment is in line with prudential accounting norms and recommendations under AS-22.

12. There is no impairment of assets. The management expects to recover amount higher than the carrying value of fixed assets. Segments are indentified based on the dominant source and nautre of risks and returns and the internal organization and management structure. The accounting policies for segment reporting are in line with the accounting policies of the Company. In addition, the following specific accounting policies have been followed for segment reporting.

a) Inter segment revenue is accounted for based on the transaction price agreed to between segments which is primarily market led.

b) Revenue and expenses are identified to segments on the basis of their relationship to the operating activities of the segment.

c) Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been disclosed as "Unallocable". and item of income or expenses associated with investing or financing flows. The cash flows from operating, investing and financing activities of the Company are segregated.

13. Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

14. Figures of Previous Year have been re-arranged and re grouped wherever considered necessary.

---

Jun 30, 2011

I) Contingent Liabilities :

The Contingent liabilities are separately disclosed by way of notes on accounts.

2. CONTINGENT LIABILITIES :

a) The company has given a guarantee to the Bank of India for cash credit facilities of Rs.250 lacs, Working Capital Term Loan for Rs.650 lacs and guarantee issue facility to the extent of Rs.150 lacs sanctioned to Eastern Sugar & Industries Limited.

b) The company has mortgaged, by way of deposit of title deeds, all immovable properties pertaining to its sugar division situated at Motihari, Champaran East, Bihar as security interalia for the punctual payment of Lease Rentals, Cost Compensatory and Finance Charges, expenses and other moneys payable by Eastern Sugar & Industries Limited to IDBI in respect of assistance granted under Equipment Lease Finance Scheme and Term Loan aggregating to Rs. 2625 lacs.

c) The Company had determined lease with The Eastern Sugar & Industries Ltd in the accounting year 2005 - 2006 and as per the terms and conditions of the agreement entered into with the said lessee company, all the fixed assets of the said lessee company will be acquired on deferred payment basis over a number of years by the Company at a value (to be ascertained) on the date of transfer. Such purchases shall be accounted for as and when the assets are acquired and the amount payable for such purchases/acquisition of fixed assets shall be adjusted against loans given to and other claims due from the lessee company. Contingent liability for such amount payable to the said Company for acquisition of its fixed assets has not therefore been provided in the books of the Company.

3. In some cases T D. S. have not been deducted and deposited in time. Interest and penalty on T. D. S., Advance Tax & Income Tax dues, Dividend Tax if any, will be accounted for on cash basis.

4. Leave encashment by the employees of the company except in the case of his or her death while in service is not allowed by the Company. Leave liability is, therefore, accounted for on cash basis.

5. Professional Taxes and Trade License Fees are to be accounted for on cash basis.

6. i) Balance Confirmation Certificates from Debtors, Creditors and Banks are awaited from the respective parties.

ii) There is no amount due to Micro and Small Enterprises as on the Balance Sheet date in excess of Rupees One lac to the extent such parties have been identified from the available information/documents.

7. The Company has made an ad hoc provision for gratuity amounting to Rs. 33.25 lacs in the year 2006-07 on the basis of calculation made by the management and the same is considered adequate to cover liability on account of Gratuity. However, no acturial valuation has been made as per AS - 15.

8. Depreciation on fixed assets has been provided on straight-line basis as specified in clause 1(c) of Accounting Policies stated above.

9. The company has revalued land by Rs.6.25 crores during the year 2006-07 as certified by the management which resulted in an increase in the value of fixed assets by the said amount and the same has been credited to Revaluation Reserve.

10. Arbitration proceeding is in progress for conversion of 17% Unsecured Redeemable Debentures into equity shares. On finalization of arbitration proceeding, the said debentures will be converted in to equity shares on such terms and conditions as may be decided by the Arbitrator.

14. In accordance with the requirements under the Accounting Standard (AS-22), Deferred Tax Assets (net) at the year end arising out of carry forward Business losses, carry forward of Long Term Capital Loss and unabsorbed depreciation has not been recognized in the current year in the accounts. The accounting treatment is in line with prudential accounting norms and recommendations under AS-22.

15. There is no impairment of assets. The management expects to recover amount higher than the carrying value of fixed assets.