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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Sir Shadilal Enterprises Ltd.

Mar 31, 2025

(i) Intangible assets comprising computer software is amortised using straight-line method over estimated useful life of 3 years. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

(ii) On transition to Ind AS, the Company has elected to continue with the carrying value of all of intangible assets recognised as at 1 April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of intangible assets.

(a) Amounts billed for work performed which will become due upon fulfillment of specified conditions is considered as contract assets and shown as customer retentions. Upon fulfillment of specified conditions, contract assets are reclassified to trade receivables. Amounts received before the related work is performed is considered as contract liabilities and is shown as advances from customers.

(b) Significant changes in contract assets and liabilities:

Decrease in contract assets (customer retentions) is mainly due to reclassification to trade receivables and subsequent realisation of money.

Decrease in contract liabilities (Advances from Customers) is mainly on account of adjustments against current year billings.

The following table shows how much of the revenue recognised in the current reporting period relates to carried-forward contract liabilities and how much relates to performance obligations that were satisfied in a prior year.

(i) The cost of inventories recognised as an expense during the year was '' 27575.46 lakhs (for the year ended 31 March 2024: '' 45903.41 lakhs).

(ii) Refer note18(i) for information on charges created on inventories.

(iii) The mode of valuation of inventories has been stated in note 2(vi).

(iv) All inventories are expected to be utilised/sold within twelve months except certain critical and insurance items of stores and spares, which are utilised on need basis. Quantum of such stores and spares, which may be utilised beyond one year, is not determinable and is not expected to be material with reference to the total value of inventories.

(v) For impairment losses recognised during the year refer note 24 & 31.

(vi) In addition to the cost of inventories recognised as expense as mentioned in (i) above, there are write-downs of inventories to net realisable value amounting to '' 45.38 lakhs [31 March 2024: write-downs of '' 89.58 lakhs] which are also recognised as an expense/income during the year and included in âChanges in inventories of finished goods, stock-in-trade and work-in-progress'' in statement of profit and loss.

(ii) Terms and rights attached to equity shares

The Company has only one class of equity shares with a par value of '' 10/- per share. The holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

I n the event of liquidation of the Company, the holders of equity shares are entitled to receive the remaining assets of the Company, after meeting all liabilities and distribution of all preferential amounts, in proportion to their shareholding.

(i) Secured by pledge/hypothecation of the stock-in-trade, raw material, stores and spare parts, work-in-progress and trade receivables and second charge created/to be created on the all movable/immovable properties of the Company. Interest rates on the above loans outstanding as at the year end range between 8.25% to 8.50% (weighted average interest rate: 8.29% p.a.).

(ii) There are no differences in the quantities of stocks reported in the quarterly returns/statements filed with the banks vis-avis the books of accounts. In the books of accounts, the stocks are valued at lower of cost or net realizable value, whereas for the determination of drawing power, the sugar stocks are valued at '' 3300/quintal, which has always been lower than

(i) Security deposits as at 31 March 2025 include '' 93.60 lakhs (31 March 2024: '' 93.60 lakhs) deposits from sugar selling agents which are interest free. These deposits are repayable on cessation of contractual arrangements.

(ii) Miscellaneous other financial liabilities represents amounts payable to Triveni Engineering & Industries Limited, Holding Company, towards business support services.

(i) Basic earnings per share is calculated by dividing the profit /(loss) attributable to owners of the Company by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year, if any, and excluding treasury shares, if any.

(ii) Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and financing costs associated with dilutive potential equity shares and the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

NOTE 34: SEGMENT INFORMATION

(i) Description of segments and principal activities

The operating segments are classified under two major businesses which the Company is engaged in, and are briefly described as under:

(a) Sugar: The Company is a manufacturer of white crystal sugar, having its plant situated at Shamli, District Shamli, Uttar Pradesh. The sugar is sold to wholesalers and institutional users. The Company uses its captively produced bagasse, generated as a by-product in the manufacturing of sugar, as a feed stock for generating power for meeting the captive power requirements of sugar plant and distillery. Molasses, another by-product in the manufacturing of sugar, is used as raw material for producing alcohol/ethanol. The Company sells the surplus molasses and bagasse after meeting its captive requirements.

(b) Distillery: The Company has a 100 kilo-litres per day (KLPD) distillery situated at Shamli, District Shamli, Uttar Pradesh, which use molasses produced in manufacture of sugar as the principal raw material in production of alcohol/ethanol. The Company has not operated its distillery during the Sugar Season 2024-25 in view of the requirement of extensive repairs for efficient and uninterrupted operations. Based on proper evaluation, necessary repairs and modifications are planned to be undertaken prior to the Sugar Season 2025-26.

The above reportable segments have been identified based on the significant components of the enterprise for which discrete financial information is available and reviewed by the chief operating decision maker (CODM) to assess the performance and allocate resources to the operating segments.

There are no geographical segments as there are no exports and the sales of the Company takes place indigenously. There is no major reliance on few customers or suppliers.

- Segment profit/(loss) is the Segment revenue less Segment expenses. Segment revenue/expenses includes all revenues/ expenses that are attributable to the segments.

- Finance income, finance costs, current tax/deferred tax charge are not allocated to individual segments since these are managed/applicable on an overall entity basis.

(vii) Information about major customers

Revenues of approximately '' 8992.35 lakhs (31 March 2024: 23883.90 lakhs) are derived from a single external customer. These revenues are attributed to the sugar segment.

NOTE 35: EMPLOYEE BENEFIT PLANS(i) Defined contribution plans

(a) The Company contributes to certain defined contribution retirement benefit plans under which the Company pays fixed contributions to separate entities (funds) or state managed benefit schemes. The Company has no further payment obligations once the contributions have been paid. Following are the schemes covered under defined contributions plans of the Company:

Provident Fund Plan & Employee Pension Scheme: The Company makes monthly contributions at prescribed rates towards Employee Provident Fund/ Employee Pension Scheme administered and managed by the Government of India.

Superannuation Scheme: The Company contributes towards a fund established to provide superannuation benefit to certain employees in terms of Superannuation policies entered into by such fund with the Life Insurance Corporation of India.

(ii) Defined benefit plan (Gratuity)

(a) The Company operates a defined benefit retirement plan under which the Company pays certain defined benefit by way of gratuity to its employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement/ termination of employment or upon death of an employee, based on the respective employees'' salary and years of employment with the Company.

(b) Risk exposure

The plan typically exposes the Company to number of actuarial risks, the most significant of which are detailed below:

Investment risk: The plan liabilities are calculated using a discount rate set with references to government bond yields as at end of reporting period; if plan assets underperform compared to the government bonds discount rate, this will create or increase a deficit.

Interest risk: A decrease in government bond yields will increase plan liabilities, although this is expected to be partially offset by an increase in the value of the plan''s debt instruments.

Life expectancy: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants during their employment. A change in the life expectancy of the plan participants will impact the plan''s liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

Attrition rate: The present value of the defined benefit plan liability is impacted by the rate of employee turnover, disability and early retirement of plan participants. A change in the attrition rate of the plan participants will impact the plan''s liability.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In the event of change in more than one assumption, the impact would be different than stated above. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to prior period.

(i) Defined benefit liability (gratuity) and employer contributions

The Company expects to contribute '' 198.15 lakhs to the defined benefit plan relating to gratuity during the next financial year.

The weighted average duration of the defined gratuity obligation (on discounted cash flow basis) as at 31 March 2025 is 10.27 years (31 March 2024: 10.53 years).

(iii) Defined benefit plan (Provident fund)

(a) Apart from the contributions made by the Company to defined contribution provident fund plan referred in (i) above, the Company has also set up a provident fund trust, to secure the provident fund dues in respect of certain employees of the Company, which is administered by the concerned trustees. The rules of the Company''s provident fund require that if the Board of Trustees are unable to pay interest at the rate declared by the Employees'' Provident Fund Organisation, Government of India, under para 60 of the Employees'' Provident Fund Scheme, 1952 for the reason that the return on investment is less or for any other reason, then the deficiency shall be made good by the Company when determined.

(b) For the year ended 31 March 2025, the Company contributed '' 1.17 lakhs (31 March 2024: '' 6.17 lakhs) to the defined benefit provident fund plan.

The remuneration of key management personnel is determined by the remuneration committee having regard to the performance of individuals, market trends and applicable provisions of Companies Act, 2013.

(iv) Remuneration and outstanding balances of key management personnel does not include long term employee benefits by way of gratuity and compensated absences, which are payable only upon cessation of employment and provided on the basis of actuarial valuation by the Company.

(v) TEIL (Holding Company) has provided a letter of comfort amounting to '' 3,63,00,00,000/- (31 March 2024: Nil) in connection with working capital and term loans agreed to be granted by the lenders to the Company. Outstanding balance of loans under such lending arrangements as at 31 March 2025 is '' 1,73,43,81,692/- (31 March 2024: Nil).

(vi) Terms & conditions:

(a) Loans from the Holding Company were availed at normal commercial terms & conditions and at prevailing market rate of interest.

(b) Other transactions are made on terms equivalent to those that prevail in arm''s length transactions.

NOTE 37: CAPITAL MANAGEMENT

For the purpose of capital management, capital includes net debt and total equity of the Company. The primary objective of the capital management is to maximize shareholders'' value along with an objective to keep the leverage in check in view of cyclical capital intensive sugar business of the Company.

The sugar business is the major business of the Company which is seasonal in nature. The entire production of sugar takes place in about six months and is sold throughout the year. It thus necessitates maintaining high levels of sugar inventory requiring high working capital funding. Sugar business being a cyclical business, it is prudent to avoid high leverage and the resultant high finance cost. It is the endeavour of the Company to prune down external debts to acceptable levels based on its financial position.

The Company may resort to further issue of capital for projects which can not be fully funded through internal accruals/debt and/ or to finance working capital requirements.

The Company monitors capital structure through gearing ratio represented by debt-equity ratio (debt/total equity). In addition to the gearing ratio, the Company also looks at non-current debt to operating profit ratio (non-current debt/EBITDA) which provides an indication of adequacy of earnings to service the debts. The Company diligently negotiates the terms and conditions of the loans and ensures adherence to all the financial covenants. The gearing ratio and non-current debt/EBITDA ratio for the Company as at the end of reporting period were as follows:

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2025 and 31 March 2024.

The Company is not subject to any externally imposed capital requirements.

The financial position of the Company was under stress due to its inability to meet substantial amount of cane and other overdues. After taking control over the Company by the Holding Company, it arranged funding from lenders and directly infused funds in the Company to meet its finacial commitments and to improve its operations for turnaround. Non-current borrowings include funding of '' 12850 lakhs by the Holding Company which is quasi equity in nature.

NOTE 38: FINANCIAL RISK MANAGEMENT

The Company''s principal financial liabilities comprise borrowings, trade payables and other payables. The main purpose of the financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables and cash and bank balances.

The Company''s activities expose it mainly to market risk, liquidity risk and credit risk. The monitoring and management of such risks is undertaken by the senior management of the Company and there are appropriate policies and procedures in place through which such financial risks are identified, measured and managed.

(i) Credit risk

Credit risk is associated with the possibility of a counterparty defaulting on its contractual obligations to pay, resulting in financial loss to the Company. The Company is exposed to credit risks from its operating activities, primarily trade receivables and retentions. The credit risks in respect of deposits with the banks and other financial instruments are nominal.

(a) Credit risk management

Credit risk arises from the possibility that a counter party may not be able to settle their dues as agreed. The Company is primarily exposed to credit risk from its trade recievables. The Company''s sugar sales are generally on cash terms or on very short credit period basis. Sales from its distillery are generally to reputed private parties on limited credit period basis. The Company periodically assesses the financial reliability of its customers taking into account their track record in the market and past dealing with the Company. Concentration of credit risk is limited since the Company has a diverse customer base. Credit risk is also mitigated to an extent by ensuring reciept of adequate advance and security deposit from its customers/agents.

The impairment analysis is performed on each reporting period on individual basis for major customers. The Company''s maximum exposure to credit risk at the reporting date is the carrying amount of each financial asset as detailed in note 6, 7, 8, 9 and 12.

Overall, the credit risk from receivable is low in view of short credit period and government customers.

(b) Provision for expected credit losses

Basis as explained above, life time expected credit loss (âECLâ) is determined on trade receivables except in cases where advance payment or short term credit is granted or payment is due from Government/reputed parties, where there has been no track record of short receipts. The provision for ECL (in addition to the specific credit losses, if any, provided on specific financial assets) is therefore assessed at Nil.

(ii) Liquidity risk

The Company uses liquidity forecast tools to manage its liquidity. The Company operates capital intensive sugar business and has obligation to timely make cane price payments within the statutory time period. Additionally, it is also required to pay the cane and other overdues. The Company is able to organise liquidity through own funds, loans availed from Holding Company and through working capital loans. However, when the sugar fundamentals are unfavourable, either due to market forces or due to excessive cane pricing by the Government, the payment of cane price may get delayed though it is the endeavour of the Company to make cane payment on a priority basis. It is the objective and focus of the Company to reduce debts to be able to meet the cyclicalities of the sugar business.

The lower than normal current ratio is due to substantial overdues towards cane and other overdues. Funds are being arranged to pay such overdues and to turnaround the operations of the Company. Further, in view of seasonal nature of sugar business, which is a dominant business of the Company, there is a peak build-up of sugar inventories at the year end, resulting in peak working capital requirement. With the liquidation of such inventories over the year, the working capital requirement is gradually reduced. Thus, the current ratio computed at the year end is not a reflection of average and realistic ratio for the year.

(a) Maturities of financial instruments

Maturities of non-derivative financial liabilities:

The following table details the remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The amounts disclosed in the table have been drawn up based on the undiscounted cash flows of financial liabilities. The contractual maturity is based on the earliest date on which the Company may be required to pay.

(iii) Market risk

The Company is exposed to following key market risks:

(a) Interest rate risk on loans and borrowings

(b) Sugar price risk

(a) Interest rate risk

All borrowings availed by the Company are subject to interest on floating rate basis linked to the MCLR (Marginal Cost of funds based Lending Rate). In view of the fact that the total borrowings of the Company are quite substantial, the Company is exposed to interest rate risk.

The strategy of the Company to opt for floating interest rates is helpful in maintaining market related realistic rates. The interest rate risk is mitigated upto certain extent as 3.5% of the long term debts as at 31 March 2025 (31 March 2024: 61.7% of long term debts) comprises loans carrying concessional interest rates/interest subvention.

While declining interest rates would be beneficial to the Company, adverse interest rate fluctuations could increase the finance cost. The total impact, in respect of borrowings on floating interest rate basis, is limited as per sensitivity analysis provided here under:

(b) Sugar price risk

The sugar prices are dependent inter-alia on domestic and global sugar balance - higher supplies lead to softening of sugar prices whereas higher demand than available supplies lead to hardening of sugar prices. The Company sells most of its sugar in the domestic market where there are no effective mechanism available to hedge sugar prices in view of limited breadth in the commodity exchanges. The Company also exports sugar in the years of surplus production based on Government policy on exports.

Adverse changes in sugar price impact the Company in the following manner:

- The Company values sugar stocks at lower of cost of production (COP) and net realisable value (NRV). In the event, the COP of sugar is higher than the NRV, the stocks are written down to NRV leading to recognition of loss on such inventory.

- The Company is a large producer of sugar and even a small variation in the sugar price leads to significant impact on the profitability of the Company.

NOTE 41: LEASES

As Lessee

Assets taken under lease mainly include residential, office and plots of land. These are generally not non-cancellable leases and are renewable by mutual consent and on mutually agreeable terms. The Company has given refundable interest free security deposits under a lease agreement. There is no contingent rent, sublease payments or restriction imposed in the lease agreement.

As Lessor

The Company has given certain portion of its factory premises under operating leases. These leases are not non-cancellable and are extendable by mutual consent and at mutually agreeable terms. The gross carrying amount, accumulated depreciation and depreciation recognised in the statement of profit and loss in respect of such portion of the leased premises are not separately identifiable. There is no impairment loss in respect of such premises. No contingent rent has been recognised in the statement of profit and loss. There are no minimum future lease payments as there are no non-cancellable leases. Lease income is recognised in the statement of profit and loss under âOther incomeâ (refer note 24).

NOTE 43: CONTINGENT LIABILITIES AND CONTINGENT ASSETS Contingent liabilities
		As at 31-Mar-25	As at 31-Mar-24
(i) Claims against the Company not acknowledged as debts:
Claims (excluding further interest thereon) which are being contested by the Company pending final adjudication of the cases:		63.32 111.10

f.¹'' Particulars No.	Amount of contingent Amount paid under liability protest
	31-Mar-25\| 31-Mar-24 \|31-Mar-25\| 31-Mar-24
1 Sales tax	- 5.53 - 5.53
2 Excise duty	2.53 3.15 0.62 0.62
3 Others	60.79 102.42 - 4.17
Total	63.32 111.10 0.62 10.32
(ii) Others
(a) The Company is contingently liable in respect of unpaid interest on delayed payment of cane price for the sugar seasons 2012-13, 2013-14 and 2014-15 amounting to '' 607.19 lakhs. The Hon''ble Allahabad High Court had passed an order directing the Cane Commissioner of the State to decide the matter afresh, taking into consideration certain additional factors. However, no order demanding interest on delayed payment of cane price for the aforesaid years has been served on the Company till date.		607.19 607.19
(b) The Company is contingently liable in respect of unpaid interest on delayed payment of cane price for the sugar seasons up to 1991-92 amounting to '' 73.09 lakhs.		73.09 73.09
(c) The Company is contingently liable in respect of interest on outstanding cane dues for the sugar season 2022-23 amounting to '' 4379.62 lakhs pursuant to the recovery certificate (âRC'') issued to this effect. A representation has been made against the aforesaid RC to the State Government.		4379.62 -
Apart from (a), (b) and (c) above, there is no other demand against the company in respect of interest on delayed payment of cane dues.
(d) The Company is contingently liable in respect of unpaid commission payable to cane societies for the sugar seasons 2012-13 and 2014-15 amounting to '' 690.84 lakhs. In the cane price package offered by the State Government of Uttar Pradesh (âState Governmentâ) to sugar mills, the State Government had reduced the rate of commission payable to cane societies for sugar seasons 2012-13 and 2014-15 by way of notification dated 12 June 2015 to provide relief to the Sugar Industry in view of disparity in the cane price and the market outlook of the sugar prices. In the public interest litigation and writ petitions filed against such reduction in commission rates, the Hon''ble Allahabad High Court has held that these notifications cannot have retrospective applicability. Special leave petition has been preferred by UP Sugar Mills Association against the said order and a stay has been granted in the matter and as such till date no demand has been received by the Company in this regard.		690.84	690.84
(e) Liability arising from claims/ counter claims/ court cases, claims of certain employees/ex-employees on certain activities of the Company which are being contested by the Company.		Indeterminate Indeterminate

	As at 31-Mar-25	As at 31-Mar-24
(f) Liabilities towards amounts payable to certain suppliers, as appearing in the books of the Company pertaining to the period prior to the present management''s taking control of the Company, are in the process of being verified. The claims of the suppliers towards escalation, interest and additional supplies as well as counter claims of the Company towards damages and deductions for breach of contractual terms, poor quality of the products and services involved, are being scrutinized and reconciled. Additional liability, if any, which may arise in respect of the aforesaid, is presently unascertainable.	Indeterminate	Indeterminate
The amount shown above represent the best possible estimates arrived at on the basis of available information. The uncertainties, possible payments and reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants, as the case may be, and therefore cannot be predicted accurately. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal position against such disputes.
Contingent assets Based on management analysis, there are no material contingent assets as at 31 March 2025 and as at 31 March 2024.

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

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

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

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

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

(vii) The Company has not raised funds on short term basis which have been utilised for long term purposes.

(viii) The Company has not been declared willful defaulter by any bank or financial institution or other lender. The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender.

(ix) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 as amended.

NOTE 47: GOING CONCERN

The financial statements of the Company have been prepared on going concern basis as the Company has become a subsidiary of Triveni Engineering & Industries Limited (âTEILâ) which is one of the leading companies engaged in sugar & allied businesses and has deep domain knowledge, technical expertise and management capabilities. TEIL has been providing requisite technical and financial support to the Company to make its operations efficient and viable. Further, steps have been initiated to amalgamate the Company with the Holding Company in view of various business synergies.

NOTE 48: CHANGE IN ACOUNTING POLICIES

The present management had instituted a review of the accounting policies being earlier followed by the Company to ensure that these provide more reliable and relevant information relating to the financial performance and state of affairs of the Company and with a view to align them with those of the peers in the industry. Pursuant thereto, the accounting policy for measurement of land has been changed from revaluation model to cost model. The impact of such change on the financial statements has been considered retrospectively in accordance with Ind AS 8 âAccounting policies, changes in accounting estimates and errorsâ and is disclosed as under.

NOTE 49: SCHEME OF ARRANGEMENT

The Board at its meeting held on December 10, 2024 has, subject to necessary approvals, considered and approved a Composite Scheme of Arrangement amongst Triveni Engineering & Industries Limited (âTEILâ), Sir Shadi Lal Enterprises Limited (âSSLEL'') and Triveni Power Transmission Limited (âTPTLâ) and their respective shareholders and their respective creditors under Section 230 to 232 and other applicable provisions, if any, of the Companies Act, 2013 read with the rules made thereunder (the âSchemeâ) for amalgamation of SSLEL into TEIL and demerger of Power Transmission Business (âPTB) of TEIL into TPTL. The approval/ no-objection of Stock Exchanges to the Scheme on the application filed by the Company is awaited. Ind AS 116

NOTE 50: OTHER NOTES

(i) I n the absence of balance confirmations from certain creditors and certain receivables, the Auditors have relied upon the figures appearing in the books of the Company.

(ii) The Company has recognized stock of scrap, pressmud and molasses WIP as at 31 March 2025, which were earlier not recognized on generation but accounted for upon sale. Consequentially, the losses of the year are lower to the extent of '' 140.13 lakhs.

NOTE 51: COMPARATIVES

The Company has reclassified certain items of financials of comparative years ended and as at 31 March 2024 and 1 April 2023 to conform to this year''s classification, however, impact of these reclassification are not material. Ind AS 116

NOTE 52: APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved for issue by the Board of Directors on______subject to approval of shareholders.

âRestated (refer note 48)

The accompanying notes 1 to 52 form an integral part of these financial statements

Mar 31, 2024

This is a defined benefit plan and statutory liability of the Company. The Company has to pay the Gratuity to the employees as per the provisions of The Payment of Gratuity Act, 1972 irrespective of the availability of the funds with the Gratuity Fund.

The Gratuity Liability is computed on actuarial valuation basis done at year end using the Project Unit Credit Method is provided for in the books of account and is based on a detailed working done by a certified Actuary. Past service cost is recognised immediately to the extent that the benefits are already vested.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

Company manages Gratuity obligation through Trust. Company arranges the fund based on the actuarial valuation and requirement of the Trust. The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2023-24

These gratuity plan typically expose the Company to actuarial risks such as: investment risk, interest risk, longevity risk and salary risk. The Company remains committed to fund all gratuity payments falling due and shall strive to gradually reduce the deficit in funding of its obligation in the coming years.

The Company expects to contribute Rs.218.11 Lakhs to the defined benefit plan relating to gratuity during the next financial year.

The weighted average duration of the defined gratuity obligation as at 31 March 2024 is 10.5362 years (31 March 2023, 10 years)

The expected maturity analysis of un-discounted defined benefit obligation as at 31 March 2024 is as follows :

Longevity risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the planâs liability. Salary risk

The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the planâs liability.

c) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.650.96 Lakhs against which advance has been paid Rs.81.84 Lakhs.(Previous year Rs. 5.00 Lakhs).

NOTE :- The above amount in-respect of contingent liabilities represents best estimates arrived at on the basis of available information as the actual liability can not be predicted accurately and Company has relied upon expert legal advise against the such disputed liabilities.

35 The interest aggregating to Rs.607.19 Lakhs on delayed payment of sugar cane price for sugar seasons 2011-12 to 2014-15 is due for payment in view of the Supreme Courtâs order no.35113/2017 dated 23.04.2018.The company is contemplating to file a review petition against above mentioned order of Supreme Court. Therefore, no provision has been made for the above mentioned liability of Rs. 607.19 Lakhs and also for Rs. 19042.96 Lakhs relating to the subsequent financial years 2015-16 to 22-23; to that extent the accounts are not maintained on accrual basis.

36 The Central Govt. Ministry of Law & Justice, have issued Notification No.6/2016 dated 1.1.2016 regarding payment of bonus

(Amendment Act 2015) in terms of which the ceiling for payment of bonus has been revised w.e.f. 1st April, 2014. Certain High Courts have stayed the implementation of revision of Bonus from retrospective effect. ISMA has also filed writ against implementation of the order with regard to its retrospective effect from 1st April, 2014 and the matter is subjudice. Therefore the Company has not made provision for this liability for the year ending on 31.03.2015.This matter is pending before Honâble High Court, Allahabad by U.PS.M.A. .

37 In view of accumulated losses, and uncertainty of future profitability the Board have decided not to make any further provision for Deferred Tax Assets, though not in line with India Accounting Standard-12.

38 In absence of balance confirmations from certain creditors, included in Trade payable and other payable,other current liabilities, other non-current & current financial assets, Trade Receivables, the Auditors have relied upon the figures appearing in the books of the Company.

39 Interest subvention @ 50 % of rate charged by lenders (subject to maximum of 6 %) by Government of India on loans of Rs. 1640.50 Lakhs availed from banks for distilleries under the âScheme for extending financial assistance to sugar mills for enhancement and augmentation of ethanol production capacityâ. Finance cost shown in note no. 31 is net of interest subvention.

40 Other Statutory Information:-

(i) The Company does not have any transactions with struck off companies.

(ii) The Company does not have any charges or satisfaction of charges which is yet to be registered with ROC beyond the statutory period. Read along with note 40(vii).

(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the period/year.

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

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

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

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

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

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

(vi) The Company has not raised funds on short term basis which have been utilised for long term purposes.

(vii) The Company has not been declared willful defaulter by any bank or financial institution or other lender. The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender.

(viii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 as amended.

41 Reconciliation of statement submitted to Bank:-

The Company has obtained working capital limit from District Co.-Operative Bank. The Company has submitted monthly statement to the bank, however there is no material difference in reporting the quantity of stock in bank statement as compare to books of Accounts. The diffrence between the value as per books of accounts statement submitted with lenders are given below:

The Companyâs activities expose it to credit risk, liquidity risk and market risk. This note explains the sources of risks which the entity is exposed to and how it mitigates that risk.

A. Credit risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. Company is exposed to credit risk from trade receivables and deposits with banks. To manage this, Company periodically assesses the financial reliability of customers, taking into account factors such as credit track record in the market and past dealings with the Company for extension of credit to customers. Company monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored. Concentrations of credit risk are limited as a result of the Companyâs large and diverse customer base. Company has also taken advances and security deposits from its customers/agents, which mitigate the credit risk to an extent. The ageing of trade receivable is given below:

Company considers factors such as track record, size of the institution, market reputation and service standards to select the banks with which term deposits are maintained. Term deposits are maintained with banks with which Company has also availed borrowings B Liquidity risk :

Liquidity risk is the risk that a company may encounter difficulties in meeting its obligations associated with financial liabilities that are settled by delivering cash or other financial assets. The Group monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs. The table below provides undiscounted cash flows towards financial liabilities into relevant maturity based on the remaining period at the balance sheet to the contractual maturity date.

C. Fair value of financial assets and financial liabilities

Financial instruments measured at fair value can be divided into three levels for determining and disclosing the fair value of financial instruments by valuation technique.

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

Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);

Level 3 - Inputs for the asset or liability that are not based on observable market data.

Following methods and assumptions are used to estimate the fair values:-

a. Fair value of cash and short-term deposits, trade and other short-term receivables, trade payables, other current liabilities and shortterm borrowings carried at amortised cost is not materially different from itâs carrying cost largely due to short-term maturities of these financial assets and liabilities.

b. Financial instruments with fixed and variable interest rate fall within level 2 of the fair value hierarchy and are evaluated by Company based on parameters such as interest rate, credit rating or assessed credit worthiness.

c. Non-listed shares and other securities fall within level 3 of the fair value hierarchy. Valuation is based on the net asset method.

d. Fair value of the borrowing items fall within level 2 of the fair value hierarchy and is calculated on the basis of discounted future cash flows.

e. IndAS 101 allow Company to fair value Property, Plant and Equipment on transition. Company has valued property,plant and equipment as deemed cost.

i) Set out below is a comparison by class of the carrying amounts and fair value of the Companyâs financial instruments that are recognised in the financial statements:

The Company is exposed to the risk of movements in interest rates, inventory price that affects its assets, liabilities and future

transactions.

i) Interest rate risk

Fluctuation in fair value or future cash flows of a financial instrument because of changes in market interest rates gives rise to interest rate risk. The Companyâs borrowings are linked to base rates of the banks. With all other variables held constant, the following table demonstrates the impact of change in interest rate on borrowing cost on floating rate portion of loans.

ii) Inventory price risk

The Company is exposed to the movement in price of principal finished product i.e. sugar. Prices of the sugar cane is fixed by government. Generally, sugar production is carried out during sugar cane harvesting period from November to April. Sugar is sold throughout the year which exposes the sugar inventory to the movement in the price. Company monitors the sugar prices on daily basis and formulates the sales strategy to achieve maximum realisation. The sensitivity analysis of the change in sugar price on the inventory as at year end, other factors remaining constant in given in table below:

iii) Regulatory risk

Sugar industry is regulated both by central government as well as state government. Central and State governments polices and regulations affects the Sugar industry and the Companyâs operations and profitability. Distillery business is also dependent on the Government policy. However, with the removal of major regulatory control on sugar sales by the Central Government, the regulatory risks are moderated by not eliminated.

iv) Commodity price risk

Sugar prices are market driven and sugar industry being cyclical in nature, realizations get adversely affected during downturn Higher cane price or higher production than the demand ultimately affect profitability. The Company has mitigated this risk by well integrated business model by diversifying into co-generation and distillation, thereby utilizing the by products.

With effect from 1 April 2023, the Ministry of Corporate Affairs (MCA) has made it mandatory for companies to maintain an audit trail feature throughout the year for transactions impacting books of accounts. While the circular dated 24 March 2021 laid out the requirement for management to enable the audit trail feature. We are maintaining the Audit Trail accordingly. However, there is need to upgrade and update so that each entry recording in books of accounts shown in Audit Trail transparently and in any instance of the audit trail feature being not tempered. The feature of recording audit trail(edit log) facility was not enabled at the database level to log and direct data changes for the accounting softwareâs used for maintaining the books of account relating to payroll, consolidation process and certain no-editable fields/tables of the account software used for maintaining general ledger.

NOTE NO. 55.

âThe net worth of the company has since been eroded on account of operational losses, incurred by the company upto the F.Y. 2014-15, which was basically on account of low recovery of sugar from sugarcane. Whereas on account of improvement in the sugar manufacturing unit, during the season 2015-16, the recovery has substantially improved with the result that the company has earned profit during the year 2016-17. The company has also reported profit during the year ending on 31.03.2020 Rs.384.91 Lakhs as compare to loss Rs. 1410.62 Lakhs during the year ending on 31.03.2021. The company is continuously striving for improvement in the operational efficiencies in other parameters. The company continue to operate at optimum levels and expects improvement in the operational efficiency in form of improvement in sugar recovery, reduction of over heads, finance and other cost. During the financial year 2023-24 the Company has substantial decrease in loss due to increase of recovery of sugar from sugar cane & improvement in sugar price. The Government has taken different measures to improve the financial health of Sugar industry to fix obligation for export of sugar (MIEQ-minimum indicative export quota) to reduce sugar availability, fixation of minimum support price(MSP) for sugar. Also, the Government has put a great thrust on promoting ethanol production and has planned to increase the ethanol blending in petrol upto 20 % by 2025. Ethanol will turn around the economic dynamics of the sugar industry positively. All these measures are expected to turnaround the operations of sugar industry on sustainable basis. As such the company will remain as a going concern and is likely to pay itâs liabilities including cane dues from expected generation of cash flow. However the accumulated losses of the company as at 31.03.2024 were Rs.16959.56 Lakhs (excluding revaluation reserve) as against the paid up capital of Rs. 525.00 Lakhsâ

NOTE NO.56.

Events after reporting date:-

There have been no events after the reporting date that required disclosure in stand alone financial statements.

NOTE NO.57

The financial statements were approved for issue by the Board of Directors, at its meeting held on 28.05.2024.

NOTE NO.58.

Certain previous year figures have been rearranged to make them comparable with current figures.

Mar 31, 2023

2.9 Provisions, contingent liabilities and contingent assets

a) Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When the effect of the time value of money is material, provision is measured at the present value of cash flows estimated to settle the present obligation. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

b) A contingent liability is not recognised in the financial statements, however, is disclosed, unless the possibility of an outflow of resources embodying economic benefits is remote. It becomes probable that an outflow of future economic benefits will be required for an item dealt with as a contingent liability, a provision is recognised in the standalone financial statements of the period (except in the extremely rare circumstances where no reliable estimate can be made).

c) A contingent liability is not recognised in the financial statements, however, is disclosed, where an inflow of economic benefits is probable. When the realisation of income is virtually certain, then the asset is no longer a contingent asset, and is recognised as an asset.

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

2.10 Employee Benefits

a) Short term employee benefits:

All employee benefits falling due wholly with in twelve months of rendering the services are classified as short term employee benefits, which include benefits like salaries, wages, short term compensated absences and performance incentives and are recognized as expenditure at the undiscounted value in the period in which the employee renders the related service.

b) Post- employment benefits :

Contributions to defined contribution schemes such as Provident Fund, Pension Fund etc. are recognized as expenses in the period in which the employee renders the related service in respect of certain employees, Provident Fund contributions are made to a Trust administered by the Company. The interest rate payable to the members of the Trust shall not be lower than the statutory rate of interest declared by the Central Government under the Employees Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be made good by the Company.

c) In Govt. administered fund, company has no further obligations beyond its monthly contributions.

d) The Company is also contributing to superannuation fund for certain key managerial personnel, at pre determined rates to the Superannuation Fund Trust, which is recognised as expenses in the period in which employee renders the related service, and there are no other obligations with regard to superannuation fund of key managerial personnel.

e) Defined benefit plans - gratuity: Gratuity liability is covered under the gratuity-cum-insurance policy of Life Insurance Corporation of India (LIC). The present value of the obligation is determined based on an actuarial valuation, using the projected unit credit method. Actuarial gains and losses in respect of post- employment and other long-term benefits are charged to the Other Comprehensive Income. The amount funded by the trust administered by the Company under the aforesaid Policy, is reduced from the gross obligation under the defined benefit plan, to recognise the obligation on a net basis.

2.11 Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over

the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected

life of the financial liability to the gross carrying amount of a financial liability.

2.12 Current and non-current classification:

The Company presents assets and liabilities in the balance sheet based on current/non-current classification

a) An asset is treated as current when it is:

a) Expected to be realised or intended to be sold or consumed in normal operating cycle,

b) Held primarily for the purpose of trading,

c) Expected to be realised within twelve months after the reporting period,

d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period, or

e) Carrying current portion of non-current financial assets.

b) Liability is current when:

a) It is expected to be settled in normal operating cycle,

b) It is held primarily for the purpose of trading,

c) It is due to be settled within twelve months after the reporting period,

d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period, or

e) It includes current portion of non-current financial liabilities. .

All other liabilities are classified as non-current.

2.13 Operating cycle :

All assets and liabilities are classified as current or non-current as per the Companyâs normal operating cycle and other criteria set out in Schedule HI to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, 12 months has been considered by the Company for the purpose of current, non-current classification of assets and liabilities.

2.14 Government grants :

Subsidy related to Sugar Cane purchased are recognised, where there is a reasonable assurance that grant will be received & all attached condition will be complied. When the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related asset. The benefit of a loan at a below market rate of interest or loan with interest subvention is treated as a government grant, measured as a difference between proceeds received and the fair value of the loan based on prevailing market interest rates.

2.15 Compensation :

Compensation to employees under Voluntary Retirement Scheme is charged to statement of profit and loss account in the year of accrual.

2.16 Impairment of Assets :

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount.

2.17 Investment :

Unquoted Investments are Stated at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

2.18 Earning per share :

Basic EPS is calculated by dividing the net profit or loss for the year attributable to equity share holders by the weighted average number of equity share outstanding during the year.

2.19 Cash and Cash Equivalent

Cash and cash equivalents includes cash in hand and deposits maturing within twelve months from the date of acquisition and which one subject to an insignificant risk of change in value.

NOTE The above amount in-respect of contingent liabilities represents best estimates arrived at on the basis of available information as the actual liability can not be predicted accurately and Company has relied upon expert legal advise against the such disputed liabilities .

35 The interest aggregating to Rs.607.19 Lakhs on delayed payment of sugar cane price for sugar seasons 2011-12 to 2014-15 is due for payment in view of the Supreme Courtâs order no.35113/2017 dated 23.04.2018.The company is contemplating to file a review petition against above mentioned order of Supreme Court. Therefore, no provision has been made for the above mentioned liability of Rs. 607.19 Lakhs and also for Rs. 15425.89 Lakhs relating to the subsequent financial years 2015-16 to 22-23; to that extent the accounts are not maintained on accrual basis.

36 The Central Govt. Ministry of Law & Justice, have issued Notification No.6/2016 dated 1.1.2016 regarding payment of bonus

(Amendment Act 2015) in terms of which the ceiling for payment of bonus has been revised w. e.f 1st April, 2014. Certain High Courts have stayed the implementation of revision of Bonus from retrospective effect. ISMA has also filed writ against implementation of the order with regard to its retrospective effect from 1st April, 2014 and the matter is subjudice. Therefore the Company has not made provision for this liability for the year ending on 31.03.2015. .

40 Employees benefit expenses for the year March 31,2023 includes Rs.714.50 Lakhs being arrears of wages upto 31.12.2022 payable towards revision of wages of employees covered under wage board with retrospective effect from October 01,2018, pursuant to notification no. 2156780/2022/Shrum-2 dated August 03,2022 for sugar and with retrospective effect from 1, September 2016 pursuant to notification 472/36-2-2022-105/2009 dated 15.06.2022 for distillery. The said liability includes Rs.604.49 Lakhs relates upto 31.03.2022. The liability of arrears of wages is determined by the Company.

41 Revenue from operations includes Rs. 54.99 Lakhs on account of relief granted by OMC industry Committee to Distilleries on supply of Ethanol to Oil Manufacturing Companies due to increase in price of DFG and fuel and power.

42 Revenue from operations includes Rs. 814.76 Lakhs on account of sale of Export Quota allotted to the Company as per notification

No.F.No.1(1)/2022-Trade dated 05.11.2022 issued by Ministry of Consumer Affairs, food & Public Distribution, Department of Food & Public Distribution (DFPO), Directorate of Sugar & Vegetable Oils. .

43 Other Statutory Information:-

(i) The Company does not have any transactions with struck off companies.

(ii) The Company does not have any charges or satisfaction of charges which is yet to be registered with ROC beyond the statutory period. Read along with note 43(vii).

(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the period/year.

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

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

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

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

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

(vi) The Company has not raised funds on short term basis which have been utilised for long term purposes.

(viii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 as amended.

44 Reconciliation of statement submitted to Bank:-

The Company has obtained working capital limit from Punjab National Bank & District Co.-Operative Bank. The Company has submitted monthly statement to the bank, however there is no material difference in reporting the quantity of stock in bank statement as compare to books of Accounts.

iii) Regulatory risk

iv) Commodity price risk

NOTE NO. 55.

âThe net worth of the company has since been eroded on account of operational losses, incurred by the company upto the F.Y. 2014-15, which was basically on account of low recovery of sugar from sugarcane. Whereas on account of improvement in the sugar manufacturing unit, during the season 2015-16, the recovery has substantially improved with the result that the company has earned profit during the year 2016-17. The company has also reported profit during the year ending on 31.03.2020 Rs.384.91 Lakhs as compare to loss Rs. 1410.62 Lakhs during the year ending on 31.03.2021. The company is continuously striving for improvement in the operational efficiencies in other parameters. The company continue to operate at optimum levels and expects improvement in the operational efficiency in form of improvement in sugar recovery, increase of production of alcohol through using B heavy molasses, reduction of over heads, finance and other cost. The Government has taken different measures to improve the financial health of Sugar industry to fix obligation for export of sugar (MIEQ-minimum indicative export quota) to reduce sugar availability, fixation of minimum support price(MSP) for sugar. Also, the Government has put a great thrust on promoting ethanol production and has planned to increase the ethanol blending in petrol upto 20 % by 2025. Ethanol will turn around the economic dynamics of the sugar industry positively. All these measures are expected to turnaround the operations of sugar industry on sustainable basis. As such the company will remain as a going concern and is likely to pay itâs liabilities including cane dues from expected generation of cash flow. However the accumulated losses of the company as at 31.03.2023 were Rs.16084.21 Lakhs (excluding revaluation reserve) as against the paid up capital of Rs. 525.00 Lakhs. Note No. 56.

Certain previous year figures have been rearranged to make them comparable with current figures.

As per our report of even date G.K. SHARMA A.K. JAIN RAHUL LAL ^Directors :

for BASANT RAM & SONS Chief Financial Officer Company Secretary Joint Managing Director Ravi Malhotra (DIN : 08811471)

Chartered Accountants (PAN BKTPS8501G) (M. No. FCS5826) (DIN : 06575738) Tanmay Sharma (DIN - 08811485)

Firm Registration No. 000569N

Udit Pat Singhania (DIN : 07984594)

R.K. NAYAR VIVEK VISWANATHAN RAJAT LAL

Radhika Viswanathan

Partner Joint Managing Director Managing Director

Membership No. 087112 (DIN : 00141053) (DIN : 00112489) ^{Hoon (DIN : 06436444)}

Place : New Delhi Neeraj Gupta (DIN : 00317395)

Date : 30 May, 2023

Mar 31, 2016

1 Loan from State Bank of India of Rs. 60,35,45,834/- secured against by way of Hypothecation of the current assets including Finished & Semi-finished stocks, raw materials, stores and spares of Sugar Unit of the Company of the book value of Rs. 93,69,58,214/- and also by way of Collateral Security on second pari passu charge on fixed assets including extension of Equitable Mortgage of land and building of the Company at Shamli.

The working capital loan of Rs. 20,02,20,286/- from Punjab National Bank, Shamli is secured by way of pledging of Sugar stock of the book value of Rs. 24,77,41,094/- and also by way of Collateral Security on second pari passu charge on the fixed assets including extension of Equitable Mortgage of land and building of the Company at Shamli.

The working capital loan of Rs. 30,29,22,116/- from District Co-Operative Bank, Ghaziabad is secured by way of pledging of Sugar stock of the book value of Rs. 39,92,03,446/-.

2. Parties covered under âThe Micro, Small and Medium Enterprises Development Act, 2006â (MSMED Act, 2006) have been identified on the basis of intimation received by the Company from its suppliers.

Based upon the information available, the balance due to the Micro and Small Enterprises as defined under the MSMED Act, 2006 is Rs. 12.20 Lacs (Previous Year Nil). Further no interest during the year has been paid or is payable under the terms of the MSMED Act, 2006.

* There are no amounts as at the end of the year which are due and outstanding to be credited to the Investors Education and Protection Fund.

3. Fixed Deposits lodged as Security includes Rs. 18,81,89,989/- pledged with bank as security against SEFASU Loan (Previous year Rs. 17,60,00,000/-) and Rs. 1,20,01,570/- pledged with bank against Guarantee given by bank on behalf of the Company (Previous year Rs. 1,95,30,000/-)

4. Confirmation of Fixed Deposit Lodged as Securities with different government departments are awaited.

5. Salary & Wages includes Rs. 58,60,837/- paid to Managerial Personnel (Previous year Rs. 55,43,625/-).

6. Provident Fund includes Rs. 4,17,600/- for Managerial Personnel (Previous year Rs. 3,96,000/-)

2.25.3 Contribution to Provident fund, Superannuation fund and Family Pension fund charged off during the year

The Company also provides for post employment defined benefit in the form of gratuity and leave liability. The Employeeâs Gratuity Scheme is managed by Life Insurance Corporation of India defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method at each Balance sheet date, which works to more by Rs.4,03,33,317/- as compared to Gratuity Scheme managed by the Life Insurance Corporation of India. The difference has been fully provided in the books of Company.

ii) In respect of labour cases in dispute, the amount of which is not ascertainable.

iii) Bank Guarantees for Rs. 1,20,01,570/- in favour of Oil Companies and Government Department (Previous year Rs. 1,95,93,000/-)

c) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 13,23,00,000/against which advances have been paid Rs. 13,23,000/- (Previous year Rs. Nil)

NOTE :- The above amount in-respect of contingent liabilities represents best estimates arrived at on the basis of available information as the actual liability cannot be predicted accurately and Company has relied upon expert legal advise against the such disputed liabilities.

7. In absence of balance confirmations from certain creditors, debtors and securities lodged included in Trade payable, other current liabilities, Long - term loans and advances, Trade Receivables, Short - term loans and advances and Other current assets the Auditors have relied upon the figures appearing in the books of the Company. No provision of doubtful debts amounting to Rs. 1,50,37,693/- appearing under the head, other current assets have been made.

8. Income Tax assessments (regular u/s 143(3)) have been completed up to the Accounting year 2012-2013 ( Assessment Year 2013-2014). The Company has gone in appeal against tax demand certain assessment orders. The Company has been legally advised that in view of expected reliefs, no further provision for income tax liability is required.

9. Like previous year the closing stock of sugar has been valued at âLower of cost and net realizable valueâ. This year Cost price of sugar is lower than the prevailing Market price at the close of the year. Till last year, interest expense was never treated as cost component while calculating cost of production of sugar, whereas the Company has this year changed, the method of arriving at cost of production of sugar and have loaded interest paid/accrued on loans (cash credit accounts), as part of the cost of production of sugar. This change in policy (treatment of interest expense) has resulted in higher valuation of closing stocks of sugar. Had there been no change in treatment of said interest while arriving at âcost of production of sugarâ, the closing stock would have been lower by Rs. 2,45,03,240/-, and consequently profit for the year would have been lower to that extent.

10. The Company has reviewed impairment of assets of the Company to identify the impairment loss, if any. The review has not revealed any material impairment of assets. However, impairment loss determined and recognized in accordance with the Accounting Standard - 28 issued by the Institute of Chartered Accountants of India.

11. The Sahakari Ganna Vikas Samitti Limited, Shamli had claimed interest on late payment of cane dues pursuance to U.P. State Government Press release dated 12th November, 2014 and Order No. 2970 - Cd/46-3-14(48) 98-99 dated 24.12.2014. The Company has not provided towards this liability for the current year amounting to Rs. 15,33,14,560/- and has also reversed Rs. 1,92,20,628/- provided last year on this account. This decision was taken by the Company, based on the representation made by U.P. Sugar Mills Association for waiver of this liability and Association is expecting positive result, as the State Government had agreed to waive this interest in certain earlier years. However, on account of this decision accounts are not maintained on accrual basis to the extent of Rs. 17,25,35,188/-.

12. On account of change in accounting policy in respect of incorporating closing stock of Bagasse at the end of the year has resulted in increase in profit for the year to the extent of Rs. 1,06,61,786/-.

13. The Central Govt. Ministry of Law & Justice, have issued Notification No.6/2016 dated 1.1.2016 regarding payment of bonus (Amendment Act 2015) in terms of which the ceiling for payment of bonus has been revised w.e.f. 1st April, 2014. Certain High Courts have stayed the implementation of revision of Bonus from retrospective effect. ISMA has also filed writ against implementation of the order with regard to its retrospective effect from 1st April, 2014 and the matter is subjudice. Therefore the Company has provided its liability towards bonus keeping in view the effect of aforesaid notification pertaining to this year, but has not made provision for this liability for previous year.

14. The U.P. Government vide Notification No. 4/2015/620 dated 12.6.2015 has notified that the Society Commission on purchase of cane for the season 2012-13 shall be reduced to Rs. 2/- per quintal, as against earlier declaration @ 3% of FRP (Rs. 5.10 per quintal of cane purchased). As such the excess amount of Rs. 3.10 per quintal has since been got adjusted by Upper Doab Sugar Mills, Shamli from its cane price dues for the season 2014-15.

The Company had crushed sugar cane for the season 2012-13 at its then owned sugar unit at Unn, on which the aforesaid refund/adjustment of excess amount of Society Commission on purchase of cane for the season 2012-13 works to Rs. 1,60,30,339/-. The Company has sold its UNN Sugar Unit during September, 2014 to M/s Superior Food Grains Private Limited, when the entire dues up to the season 2013-14 towards Cane price including Society Commission was paid by the Company. It was agreed by M/s Superior Food Grains Private Limited, at the time of sale of UNN Unit that any refund in respect of Cane Society Commission or any other refund/benefit accruing on UNN Unit from U.P. Government to the date of transfer, shall be retained by the Company as the relevant commission was earlier paid by the Company. Based on the aforesaid mutual agreement the Company has lodged claim of Rs. 1,60,30,339/- with the Cane Society, and accordingly booked as Other Operating Revenue during the year. The matter of recovery of Rs. 1,60,30,339/- is being pursued with the Cane Societies for adjustment / recovery.

15. The Company has over the last few years incurring losses, due to which its net worth has been completely eroded. The Company has become Sick Industrial company since the financial year ended on 31.03.14 under provision of Sick Industrial Company (Special Provisions) Act, 1985 and the fact was reported to the BIFR as required under the provisions of section 15(1) of Sick Industrial Company (Special Provisions) Act, 1985 and relevant Form A was duly filed with the Registrar of BIFR, who had asked the Company, to file a revised Form A along with Balance Sheet in which assets and liability of Unn Sugar Complex are not depicted.

The revised Form A has since been submitted to BIFR on the basis of accounts of the Company for the year ended 31.03.2015. The BIFR has registered the Company under BIFR on 03.02.2016 as case no. 23/2016.

16. In view of carry forward losses, the Board have decided not to make any provision for Deferred Tax Assets for the current financial year as per Accounting Standard-22.

17. Certain previous year figures have been rearranged to make them comparable with current figures. Figures have been rounded off nearest to rupee.

NOTES:

18. Quantitative figures of Distillery products are not ascertainable, because the basic product of spirits is converted later into various strengths with water dilution.

19. Closing stock of Molasses arrived at after adjustment of wastage of 1199.10 Qtls. (Previous year 2,101 Qtls.)

20. Turnover includes inter-unit sales of Rs. 11,59,23,016/- (Previous year Rs. 14,03,09,964/-).

21.* Others includes Sale of Press Mud and Bagasse.

22. Sale of Sugar includes Nil bags of BISS (Previous year Rs. 6,445 bags)

23.Related partiesâ Disclosures :

I Relationship

A Key Management Personnel : (Directors) Designation

1. Sh. Rajat Lal Managing Director

2. Sh. Vivek Viswanathan Joint Managing Director

3. Sh. Rahul Lal Executive Director B Key Management Personnel : (Other than Directors)

1. Sh. P. K. Goyal Chief Financial Officer

2. Sh. A. K. Singh Company Secretary

C Relatives of Key Management Personnel : (Directors) Relation with Key Management Personnel

1. Smt. Sudha Singhania Sister of Shri Rajat Lal

2. Smt. Poonam Lal Wife of Shri Rajat Lal

3. Miss Pooja Lal Daughter of Shri Rajat Lal

4. Smt. Radhika Viswanathan Hoon Sister of Shri Vivek Viswanathan D Relatives of Key Management Personnel : (Other than Directors)

1. Smt. Madhu Goyal Wife of Shri P. K. Goyal

2. Sh. Siddharth Goyal Son of Shri P. K. Goyal

3. Smt. Garima Mittal Daughter of Shri P. K. Goyal

4. Sh. Lakshman Singh Father of Shri A. K. Singh

5. Smt. Tara Devi Mother of Shri A. K. Singh

Mar 31, 2015

1.1 In absence of balance Confirmations from certain creditors, debtors and securities lodged shown in Notes of Trade payable, Other current liabilities, Long - term loans and advances, Trade Receivables, Short-term loans and advances and Other current assets the Auditors have relied upon the fgures appearing in the books of the Company. However, no provisions of doubtful debts amounting to Rs. 150.38 Lacs appearing in Note No. 2.20 has been made.

1.2 Income Tax assessments (regular u/s 143(3)) have been completed upto the Accounting year 2011-2012 (Assessment Year 2012-2013). The Company has gone to appeal against tax demanded as a result of certain assessment order. The Company has been legally advised that in view of expected reliefs, no further provision for income tax liability is required.

1.3 Certain 'C' forms in respect of inter-state sale will be collected in due course of time. Liability on account of Sales-Tax may arise on such inter-state sales relating to which 'C' forms are not received.

1.4 The Company, during the year has reviewed impairment of major Fixed Assets of the Company to identify the impairment loss, if any. The review has not revealed any impairment of assets in terms of Accounting standard-28 issued by the Institute of Chartered Accountants of India.

1.5 During the year Company has disposed off its Sugar Unit "Unn Sugar Complex" as slump sale after prior approval of Shareholders for consideration of Rs. 75.50 Crores. The exceptional item in note no. 2.29 represents net of capital Profit of Rs. 16.51 crores after adjusting the loss of Rs. 1.67 crores on transfer of stores.

1.6 Pursuant to the Companies Act, 2013, the Company had during the year, revised remaining useful life of its Fixed Assets. The carrying amount as on 01.04.2014 is depreciated over the revised remaining useful life of the assets. The revised depreciation for the period prior to 01.04.2014 results in excess depreciation charged by Rs. 1.53 crores (excluding its effect of Rs. 0.47 crores on the figure of deferred tax which has been adjusted in the current year) and shown as income in note no. 2.29 under the head exceptional item in the statement of Profit & Loss.

1.7 During the financial year 2012-13 Company has accepted/ renewed deposits in excess of Rs. 42.34 lacs under rule 3 (2)(I) and Rs. 190.93 lacs under rule 3(2)(II) of the provision of section 58 A and other relevant provision of the Companies Act, 1956, and Companies (Acceptance of Deposits) Rules 1975. However, the Company has since refunded the entire amount of fixed deposits.

1.8 The Company has over the last few years incurring losses, due to which its net worth has been completely eroded. Last year the Company has become Sick Industrial company under provision of Sick Industrial Company (Special Provisions) Act, 1985 and the fact was reported to the BIFR as required under the provisions of section 15(1) of Sick Industrial Company (Special Provisions) Act, 1985 and relevant Form A was duly fled with the Registrar of BIFR, who had asked the Company, to fle a revised Form A along with Balance Sheet in which assets and liability of Unn Sugar Complex are not depicted.

The relevant adjustment entry regarding sale of Unn Sugar Complex are recorded in the books which will be appearing in the accounts for the year ended 31.03.2015

The revised Form A shall be submitted after the approval of the accounts of the Company of year ended 31.03.2015 by the Board of Director of Company.

1.9 Certain previous year figures have been rearranged to make them comparable with current figures. Figures have been rounded off nearest to rupee.

2. Quantitative figures of Distillery products are not ascertainable, because the basic product of spirits is converted later into various strengths with water dilution.

3. Closing stock of Molasses arrived at after adjustment of wastage of 2,101 Qtls. (Previous year 3,484 Qtls.)

4. Turnover includes inter-unit sales of Rs. 14,03,09,964/- (Previous year Rs. 14,92,60,131/-).

5. Other Sales includes Sale of Bagasse, Press Mud and Bio Compost.

6. Sale of Sugar includes 6,445 bags of BISS (Previous year Rs. 2,453 bags)

7. Segment Reporting :

The Company's operation predominantly relates to manufacture and sale of Sugar and Alcohol products. Accordingly the Sugar and Alcohol products primarily comprises the basis for primary and secondary for segment information :

Mar 31, 2014

1.1 CONTINGENT LIABILITIES NOT PROVIDED FOR : As at March 31, 2014 As at March 31,2013 Rs. Rs.

a) In respect of Statutory Liabilities :

i) Subjudice,Income Tax/ Penalty determined by Income tax department 34,83,320 38,86,036

ii) Subjudice, Sales tax and Entry Tax including interest thereon 59,94,685 55,73,768

iii) Subjudice, Excise Duty and penalty thereon 65,24,049 67,87,367

iv) Subjudice, In respect of alleged claim of Stamping fee on vats 55,42,460 55,42,460

b) In respect of Other Liabilities :

i) Alleged claim of interest on arrears of late

payment of cane price 73,08,696 73,08,696

ii) In respect of labour cases in dispute, the amount of which is not ascertainable.

iii) Bank Guarantees in favour of Oil Companies and Excise Department of Rs. 1,60,34,000/-.

NOTE 2 : ADDITIONAL INFORMATION

2.1 In absence of balance confirmations from certain creditors, debtors and securities lodged shown in Notes of Trade payable,Other current liabilities, Long - term loans and advances, Trade Receivables, Short - term loans and advances and Other current assets the Auditors have relied upon the figures appearing in the books of the Company. However, no provision of doubtful debts amounting to Rs. 150.38 Lacs appearing in Note No. 2.18 has been made.

2.2 Income Tax assessments (regular u/s 143(3)) have been completed upto the Accounting year 2010-2011 ( Assessment Year 2011-2012). The Company has gone in appeals against certain such assessment orders. The Company has been legally advised that in view of expected reliefs, the provision for Income Tax liabilities made in Accounts is considered adequate.

2.3 Certain ''C'' forms in respect of inter-state sales will be collected in due course of time. Liability on account of Sales-Tax may arise on such inter- state sales relating to which ''C'' forms are not received.

2.4 The Company, during the year on test check basis has reviewed impairment of major Fixed Assets of the Company to identify the impairment loss, if any, based on the test check of the assets, the recoverable value for such Assets is higher than their carrying book value. Accordingly, the review has not revealed any impairment of assets in terms of Accounting Standard-28 issued by the Institute of Chartered Accountants of India.

2.5 The Company has entered into an agreement on 14th January 2014 for sale of its Unit - Unn Sugar Complex located at Block - Unn, District Shamli. However, the execution / formalities of conveyance deed is pending because the purchaser has to Comply with certain Conditions / Formalities for transfer of lease hold rights in his favour.

2.6 The Company over the last few years has been incurring losses due to which its net worth has been completely eroded and its current liabilities are far in excess of its current assets. The accumulated losses of the Company as at 31.03.2014 have resulted in 100% erosion of the peak net worth during the immediately preceding four financial years therefore, the Company has become sick industrial Company under provision of the Sick Industrial Companies (Special Provisions) Act 1985 and this fact will be reported to the BIFR as required under the provisions of section 15 (1) of the Sick Industrial Company (Special Provisions) Act, 1985.

The Indian sugar industry, particularly in the State of Uttar Pradesh, has faced difficulties on account of increasing sugar cane prices and corresponding lower than expected recovery of sugar from cane, lower sugar prices and consequential under recovery of cost of production. These factors have adversely affected the Company''s operations and financial performance. Higher finance costs have also added to the cash losses.

During the previous year, based on the Company''s audited financial statements for the year ended March 31, 2012, the Company had filed Form ''C'' with the Board for Industrial and Financial Reconstruction (BIFR), Government of India, about the "Potential Sickness" of the Company in line with the provisions of Section 23 of the Sick Industrial Companies (Special Provisions), Act, 1985 (SICA).

2.7 During the financial year 2012-13 Company has accepted/ renewed deposits in excess of Rs. 42.34 lacs under rule 3 (2)(I) and Rs. 190.93 lacs under rule 3(2)(II) of the provisions of section 58 A and other relevant provisions of the Companies Act, 1956, and Companies (Acceptance of Deposits) Rules 1975. During the financial year 2013-14 the Company has refunded Rs. 42.34 lacs under rule 3 (2)(I) and Rs.175.82 under rule 3 (2)(II) upto 31.03.2014. The balance refund are being made during the current year.

2.8 Certain previous year figures have been rearranged to make them comparable with current year figures. Figures have been rounded off nearest to rupee.

2.9 Particulars of Stocks, Purchases and Sales of Products :

2.10 Related parties'' Disclosures :

I Relationship

A Key Management personnel Designation

i. Sh. Rajat Lal Managing Director ii. Sh. Vivek Viswanathan Joint Managing Director

iii. Sh. Rahul Lal Executive Director

B Relatives of Key Management Personnel Relation with Key Management Personnel

1. Smt. Sudha Singhania Sister of Shri Rajat Lal

2. Smt. Poonam Lal Wife of Shri Rajat Lal

3. Sh. Rahul Lal Son of Shri Rajat Lal

4. Ms. Pooja Lal Daughter of Shri Rajat Lal

5. Smt. Radhika Viswanathan Hoon Sister of Shri Vivek Viswanathan

Mar 31, 2013

1.1.1 Salary & Wages includes Rs.38,45,295/Â paid to Managerial Personnel (Previous year Rs. 38,41,361/Â).

1.1.2 Provident Fund includes Rs.2,73,600/Â for Managerial Personnel (Previous year Rs. 2,73,600/Â)

1.1.3 Contribution to Provident fund, Superannuation fund and Family Pension Fund charged off during the year are as under.

2.1 Estimated amount of contracts remaining to be executed on capital Account is NIL (Previous year Rs. 40.22 Lacs) against which advance of Rs. NIL has been made (Previous Year Rs. 8.04 Lacs).

2.2 In absence of balance confrmations from certain creditors, debtors and securities lodged shown in Notes of Trade payable,Other current liabilities, Long Â term loans and advances, Trade Receivables, Short Â term loans and advances and Other current assets the Auditors have relied upon the fgures appearing in the books of the Company.

2.3 Income Tax assessments (regular u/s 143(3)) have been completed upto the Accounting year 2009Â2010 (Assessment Year 2010Â2011). However in view of ITAT, Delhi order dated 23.11.12, the block Assessment orders made for the years 2000Â01 to 2005Â06 under section 153C read with section 153A has been quashed. However regular assessment for assessment year 2000Â01 to 2003Â04 have since been completed and notice for assessment for the assessment year 2004Â05 and 2005Â06 have been issued by the Department. However, intimation for processing of Return for the Accounting Year 2010Â11 (Assessment year 2011Â2012) Under Section 143 (1) of the Income Tax Act 1961 has been received and necessary adjustments in view thereof have been accounted for in the books of accounts. The Company has gone in appeals against certain such assessment orders and the Company has been legally advised that in view of expected reliefs, the provision for Income Tax liabilities made in Accounts is considered adequate.

2.4 Certain ÂC'' forms in respect of interÂstate sale will be collected in due course of time. Liability on account of SalesÂTax may arise on such interÂ state sales relating to which ÂC'' forms are not received.

2.5 The Company, during the year on test check basis has reviewed impairment of major Fixed Assets of the Company to identify the impairment loss, if any. Based on the test check of the assets, the recoverable value for such Assets is higher then their carrying book value. Accordingly, the review has not revealed any impairment of assets in terms of Accounting standardÂ28 issued by the Institute of Chartered Accountants of India.

2.6 The fact that accumulated losses of the Company as on 31.03.2012 have resulted in more than 50% erosion of the peak Net Worth during the immediately preceding four fnancial years, which in compliance of provisions of section 23(1) (a) (I) of the Sick Industrial Companies (Special Provisions) Act, 1985 was reported by the Company to BIFR on 31.10.2012 by flling Form-''C''. The Net Worth of the Company as on 31.03.2013 has been further reduced by Rs. 9.25 crore on account of loss during the year, however Net Worth of the Company as on 31.03.2013, is still positive.

2.7 The Cabinet Committee of Economic Affairs (CCEA) of Central Government has approved decontrol of Sugar on 4th April, 2013, pursuant thereto the Food Ministry has issued notifcation on 2nd May, 2013, abolishing the obligation of the sugar industry for selling 10% sugar as Levy Quota Sugar from start of the season 2012Â13.Consequently for valuation of sugar stock at the close of the year as on 31.3.2013, the entire sugar stock of "Levy Quota Sugar" as on that date has been treated by the Company as "Free Quota Sugar".

2.8 During the year the Company has accepted/renewed deposits in excess of the prescribed limits, laid down under provisions of section 58A and other relevant provision of the Companies Act, 1956, and Companies (Acceptance of Deposits) Rules, 1975. The inadvertent excess acceptance of deposit is now being rectifed by way of repayment of excess deposit of Rs. 42.34 lacs under rule 3(2) (i) and Rs. 190.93 lacs under rule 3(2) (ii).

2.9 Certain previous year fgures have been rearranged to make them comparable with current year fgures. Figures have been rounded off nearest to rupee.

Mar 31, 2012

1.1.1 Out of the issued subscribed and paid up capital 17,50,000 equity shares of Rs. 10/- each issued as fully paid up bonus shares, by way of capitalization of General Reserve during the year ended on 31/03/2007.

1.2.1 a) Term Loan mentioned at A (i) Secured against first pari passu charge with Sugar Development Fund on the Fixed Assets of the company at Shamli.

b) Term Loan mentioned at A(ii) & A(iii) Secured against first pari passu charge of State Bank of India with Punjab National Bank on the entire Fixed Assets of Unn Sugar Unit and by way of Collateral Security on second pari passu charge on Fixed Assets at Shamli.

c) Loan from SDF Secured against first pari passu charge on the Fixed Assets of the Company at Shamli and second pari passu charges on the entire current assets of the Company.

1.2.2 Rate of Interest on Term Loan is based to PLR as on 31.3.2012. The applicable rate of Interest on Loan A (i) and A (ii) is 4.75 % above PLR and in case of A (iii) is 3.50% above PLR.

1.2.3 The rate of Interest on Loan from Sugar Development Fund is 4.00 % per annum.

1.2.4 The applicable rate of Interest on Fixed deposits ranges from 10.50 % to 11.50 % per annum as was prevailing at the time of acceptance of deposits.

1.3.1 Cash Credit from Banks Secured against first pari passu charge by way of Hypothecation of the entire current assets including Finished & Semi-finished stocks, raw materials, stores and receivables of the Company in favour of State Bank of India and Punjab National Bank and by way of Collateral Security on second pari passu charge on fixed assets including extension of Equitable Mortgage of land and building of the Company at Shamli and Unn.

The working capital loan of Rs. 2,825.02 lacs from Zila Sahakari Bank Ltd., Ghaziabad is secured by way of pledging of Sugar stock of the book value of Rs. 3,413.30 Lacs

1.4.1 In accordance with "Accounting Standard-22" the company has recognized the Deferred Tax Assets Rs. 16,09,53,773/- which has been adjusted in Profit & Loss account.

1.5.1 Government Securities of the book value of Rs. 1,51,000/- are lodged as security with different government departments for which confirmations from respective departments are still awaited (Previous Year Rs. 1,51,000/-).

1.6.1 Fixed Deposits with banks lying in Security Lodged Account includes deposit of Rs.17,73,630/- (Previous year Rs. 17,73,630/-) with maturity of more than 12 Months.

1.6.2 Fixed Deposits lodged as Security includes Rs. 26,59,000/- pledged with bank against Bank Guarantee (Previous year Rs. 84,000/-)

1.7.2 Turnover includes inter-unit sales of Rs. 10,17,12,920/- (Previous year Rs. 11,57,49,427/-).

1.8.1 Tax deducted at source on Interest income Rs. 1,13,472/- (Previous year Rs. 6,03,549/-)

1.9.1 The Hon'ble Supreme Court vide its Judgment dated 17.01.2012 have decided that differential Cane price for the season 2007-08 is payable by the Company. The deficit in provision of differential Cane price for Rs. 4,02,41,350/- has been made during the year.

1.10.1 Salary & Wages includes Rs.38,41,361/- paid to Managerial Personnel (Previous year Rs. 40,16,653/-) and also includes Rs. NIL paid under Voluntary Retirement Scheme (Previous Year Rs. 69,54,217/-).

1.10.2 Provident Fund includes Rs. 2,73,600 for Managerial Personnel (Previous year Rs. 2,83,200/-)

1.11.1 Interest Includes Rs. 2,24,65,460/- paid to Managerial Personnel (Previous Year Rs. 2,68,81,866/-)

1.12 CONTINGENT LIABILITIES NOT PROVIDED FOR :

As at March 31, 2012 As at March 31, 2011 Rs. Rs.

a) In respect of Statutory Liabilities :

i) Subjudice, Sales tax and Entry Tax including interest thereon 1,21,98,069 10,42,74,474

ii) Subjudice, Excise Duty and penalty thereon 91,73,293 1,53,86,796

iii) Subjudice, Administrative charges of Molasses 4,38,706 4,38,706

iv) Subjudice, In respect of alleged claim of Stamping fee on vats 55,42,460 55,42,460

b) In respect of Other Liabilities :

i) Alleged claim of interest on arrears of late payment of cane price 73,08,696 73,08,696

ii) Alleged lease rent of land demanded by Northern Railway - 2,41,99,346

iii) In respect of labour cases in dispute, the amount of which is not ascertainable.

iv) Bank Guarantee given by State Bank of India for Rs. 53.05 Lacs (Previous year Rs. 306.20 Lacs), against which 100 % lien is marked on Drawing Power against Stocks, Stores, Hypothecated with the bank and receivable of the Company.

v) Bank Guarantees for Rs. 26,29,302/- in favor of Oil Companies and Excise Department.

NOTE 2 : ADDITIONAL INFORMATION

2.1 Estimated amount of contracts remaining to be executed on capital Account is Rs.40.22 Lacs (Previous year Rs. NIL) against which advance of Rs. 8.04 Lacs has been made (Previous Year Rs. NIL).

2.2 In absence of balance confirmations from certain creditors, debtors and securities lodged shown in Notes of Trade payable,Other current liabilities, Long - term loans and advances, Trade Receivables, Short - term loans and advances and Other current assets the Auditors have relied upon the figures appearing in the books of the Company.

2.3 Income Tax assessments have been completed upto the Accounting year 2008-2009 (Assessment Year 2009-2010). However intimation for processing of return for the Accounting Year 2009-10, 2010-2011 (Assessment year 2010-2011& 2011-2012) U/Sec. 143 (1) of the Act has been received and necessary adjustments in view there of have been accounted for in the books of accounts. The Company has gone in appeal against certain such assessment orders and has been legally advised that in view of expected reliefs the provision for Income Tax made in Accounts is considered adequate.

2.4 Certain 'C' forms in respect of inter-state sale will be collected in due course of time. Liability on account of Sales-Tax may arise on such inter- state sales relating to which 'C' forms are not received.

2.5 The Company, during the year on test check basis has reviewed impairment of major Fixed Assets of the Company to identify the impairment loss, if any. Based on the test check of the assets, the recoverable value for such Assets is higher then their carrying book value. Accordingly, the review has not revealed any impairment of assets in terms of Accounting standard-28 issued by the Institute of Chartered Accountants of India.

2.6 The accumulated losses of the company as at 31st March, 2012 have resulted in more than 50% erosion of the peak Net Worth during the immediately preceding four Financial Years and this fact will be reported to the BIFR as required under the provisions of section 23(1)(a)(i) of the Sick Industrial Companies (Special Provisions) Act, 1985.

2.7 Certain previous year figures have been rearranged to make them comparable with current year figures. Figures have been rounded off nearest to rupee.

2.8 Cash Flow statement for the year ended 31st March, 2012 is enclosed in the statement annexed to these accounts at Note No. 4.

2.9.1 Quantitative figures of Distillery products are not ascertainable, because the basic product of spirits is converted later into various strengths with water dilution.

2.9.2 Closing stock of Molasses arrived at after adjustment of wastage of 5,097 Qtls. (Previous year 4,170 Qtls.) & Excess of 2,134 Qtls.

2.9.3 Turnover includes inter-unit sales of Rs. 10,17,12,920/- (Previous year Rs. 11,57,49,427/-).

2.9.4 Other Sales includes Sale of Bagasse, Press Mud and Bio Compost.

Mar 31, 2011

1. (A) CONTINGENT LIABILITIES NOT PROVIDED FOR :

As on 31.03.2011 As on 31.03.2010 Rs. Rs.

(a) In respect of Statutory Liabilities :

(i) Subjudice Income tax determined by Income tax department NIL 3,43,34,261

(ii) Subjudice Sales tax and Entry Tax including interest 10,42,74,474 13,66,70,705

(iii) Excise Duty and penalty thereof 1,53,86,796 11,37,896

(b) In respect of alleged claim of interest on arrears of late payment of cane price 73,08,696 73,08,696

(c) In respect of alleged lease rent of land demanded by Northern Railway 2,41,99,346 2,32,71,109

(d) In respect of administrative charges on Molasses 4,38,706 72,49,515

(e) In respect of alleged claim of Stamping fee on vats 55,42,460 -

(f) In respect of labour cases in dispute, the amount of which is not ascertainable

2. The Company has provided the cane price liability for the season 2007-08 @ Rs. 125/- per qtl. for general variety and Rs. 130/- per qtl. for early maturing variety as per the State Advised price (SAP) for the financial year ending 31.03.2008. Thereafter on an appeal the HonÃble Supreme Court had passed an interim order directing the Sugar Mills to pay @ Rs. 110/- per qtl. The Company however, decided not to provide the cane price liability in excess of Rs.110/- per qtl. for sugar cane purchased during the period from 01.04.2008 to the end of the season 2007-08 amounting to Rs.402.40 lacs. The necessary adjustments shall be made on the final order of the HonÃble Supreme Court.

3. During the year the Company has disposed off its distillery unit ÃPilkhani Distillery & Chemical WorksÃ after obtaining approval from Share holders for consideration of Rs. 38.40 crores as slump sale.

4. Employee Benefits

i. Short term employee benefits:

All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits, which include benefits like salaries, wages, short term compensated absences and performance incentives and are recognised as expenditure at the undiscounted value in the period in which the employee renders the related service.

ii. Post- employment benefits:

Contributions to defined contribution schemes such as Provident Fund, Pension Fund etc. are recognised as expenses in the period in which the employee renders the related service in respect of certain employees, Provident Fund contributions are made to a Trust administered by the Company. The interest rate payable to the members of the Trust shall not be lower than the statutory rate of interest declared by the Central Government under the Employees Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be made good by the Company.

Govt. administered fund, company has no further obligations beyond its monthly contributions.

The Company is also contributing to superannuation fund for key managerial personnel, at pre determined rates to the Superannuation Fund Trust, which is recognised as expenses in the period in which employee renders the related service, and there are no other obligations with regard to superannuation fund of key managerial personnel.

The Company also provides for post employment defined benefit in the form of gratuity and leave liability. The EmployeeÃs Gratuity Scheme is managed by Life Insurance Corporation of India is defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit Method at each Balance sheet date.

NOTE: Expenses charged on leave payment/provision included in Salary Wages & Bonus under Salary Wages & Benefits in Schedule 13.

Termination Benefits Ã Voluntary Retirement Scheme

5. Estimated amount of contracts remaining to be executed on capital Account is Rs. NIL (Previous year Rs. NIL) against which advance of Rs. NIL has been made (Previous Year Rs. NIL).

6. State Bank of India have given bank guarantees on behalf of Company for Rs. 306.20 Lacs in favour of various Governement Department by way of noting 100 % lien against the drawing power of cash credit account of the Company.

7. In absence of balance confirmations from certain creditors, debtors and securities lodged shown in Schedule Ã7Ã and Ã8Ã, the Auditors have relied upon the figures appearing in the books of the Company.

8. Income Tax assessments have been completed upto the Accounting year 2007-2008 (Assessment Year 2008-2009). However intimation for processing of return for the Accounting Year 2009-10 (Assessment year 2010-2011) U/Sec. 143 (1) of the Act has been received and necessary adjustments in view there of have been accounted for in the books of accounts. The Company has gone in appeal against certain such assessment orders and have been legally advised that in view of expected reliefs the provision for Income Tax made in accounts is considered adequate.

9. Certain ÃCÃ forms in respect of inter-state sale will be collected in due course of time. Liability on account of Sales-Tax may arise on such inter-state sales relating to which ÃCÃ forms are not received.

10. Related partiesÃ Disclosures :

I Relationship

A Key Management personnel : Designation

1. Mr. Rajat Lal Managing Director

2. Mr. Vivek Viswanathan Joint Managing Director

3. Mr. K.B. Lal* Sr. Executive Director

B Relatives of Key Management Relation with Key Management Personnel Personnel

1. Smt. Sudha Singhania Sister of Shri Rajat Lal

2. Smt. Poonam Lal Wife of Shri Rajat Lal

3. Sh. Rahul Lal Son of Shri Rajat Lal

4. Ms. Pooja Lal Daughter of Shri Rajat Lal

5. Smt. Nirmala Lal Wife of Shri K.B. Lal

6. Sh. Kapil Bhushan Lal Son of Shri K.B. Lal

7. Smt. Aradhana Daughter of Shri K.B. Lal

8. Smt. Minoo Daughter of Shri K.B. Lal

9. Smt. Anjana Aggarwal Daughter of Shri K.B. Lal

10. Sh. P.K. Viswanathan Father of Shri Vivek Viswanathan

11. Smt. Manjula Viswanathan** Mother of Shri Vivek Viswanathan

12. Smt. Radhika Sister of Shri Vivek Viswanathan

* Sh. K.B. Lal, Sr. Executive Director retired from the services of Company on 30.04.2010. ** Smt. Manjula Viswanathan has expired on 19.12.2010.

11. Segment Reporting :

The CompanyÃs operation predominantly relates to manufacture and sale of Sugar and Alcohol products. Accordingly the Sugar and Alcohol products primarily comprises the basis for primary and secondary for segment information :

12. Regarding the status of Suppliers the Micro, Small Scale & Medium Industrial undertakings to whom amounts are due for more than thirty days have been determined based on the information available with the Company are as follows :

(a) M/s Gemco Controls Ltd.

13. The Company, during the year, has reviewed the Carrying Value of the assets for finding out the impairment, if any. The review has not revealed any impairment of assets in terms of Accounting standard-28 issued by the Institute of Chartered Accountants of India.

14. Certain previous year figures have been rearranged to make them comparable with current year figures.

15 Figures have been rounded off nearest to rupee.

16. Cash Flow statement for the year ended 31st March, 2011 is enclosed in the statement annexed to these accounts as Annexure I.

Mar 31, 2010

1. (A) CONTINGENT LIABILITIES NOT PROVIDED FOR :

As on 31.03.2010 As on 31.03.2009 Rs. Rs.

(a) In respect of Statutory Liabilities :

(i) Subjudice Income tax det- ermined by Income tax department 3,43,34,261 3,28,10,709

(ii) Subjudice Sales tax and Entry Tax including interest 13,66,70,705 2,04,54,368

(iii)Excise Duty 11,37,896 7,02,377

(b) In respect of alleged claim of interest on arrears of late payment of cane price 73,08,696 73,08,696

(c) In respect of alleged lease rent of land demanded by Northern Railway 2,32,71,109 2,23,42,872

(d) In respect of administrative charges on inter-unit transfer of Molasses contested by the Company 72,49,515 22,96,436

(e) In respect of labour cases in dispute, the amount of which is not ascertainable

(f) In respect of alleged claim of Stamping fee on vats amount of which is not ascertained as the detail has not been provided by Excise Department

2. The Company has provided the cane price liability for the season 2007-08 @ Rs. 125/- per qtl. for general variety and Rs. 130/- per qtl. for early maturing variety as per the State Advised Price (SAP) for the financial year ending 31.03.2008. Thereafter on an appeal, the Supreme Court has passed an interim order directing the Sugar Mills to pay @ Rs. 110/- per qtl. The Company has, however, decided not to provide the cane price liability in excess of Rs.110/- per qtl. for sugar cane purchased during the period from 01.04.2008 to the end of the season 2007-08 amounting to Rs.402.40 lacs. The necessary adjustments shall be made on the final order of the Supreme Court.

3. The VAT became applicable from 01.01.2008 in Utter Pradesh, amount paid over this score upto 31.03.2009 was treated as adjustable against payment of VAT in Sugar Units. As per clarification of concerned Government Department & legal opinion obtained during this year, the benefit of VAT shall not be available for such adjustement, hence this amount of Rs. 28,19,346/- has been charged to relevant revenue heads of current year, though this expense relates to previous year.

4. The Central Government has revised the levy sugar price on 21.06.2010 produced in the sugar season 2009-2010. The impact of difference of increase in levy sugar price amounting to Rs. 8,31,85,048 has been considered and incorporated in the annual accounts ended on 31.03.2010 on the basis of above notification.

5. Retirement Benefits :

A. Defined Benefit Plans :

Provision made this year in the accounts in compliance with AS-15 (Revised) on account of Companys liability at the end of the year towards Gratuity and Leave encashment benefit payable to the employee is on the basis of actuarial valuation arrived at by using projected unit credit method.

B. Defined Contribution Plan :

(i) Contribution to employees provident fund :

Liability towards provident fund contribution is charged as accrued in accordance with applicable statue and deposited with the Regional Provident Fund Commissioner/Approved Provident Fund Trust.

(ii) Contribution to Superannuation Fund :

Contribution to superannuation fund of key managerial personnel are made at predetermind rates to the superannuation fund trust and charged to the Profit and Loss account.

There are no other obligations other than the contribution payable to the superannuation fund trust.

6. Estimated amount of contracts remaining to be executed on Capital Account is Rs. NIL (Previous year Rs. 80,500) against which advance of Rs. NIL has been made (Previous Year Rs. 20,125).

7. In absence of balance confirmations from certain creditors, debtors and security logded shown in Schedule Ã7 and Ã8, the Auditors have relied upon the figures appearing in the books of the Company.

8. Income Tax assessments have been completed upto the Accounting year 2006-2007 (Assessment Year 2007-2008). The Company has gone in appeal against certain such assessment orders and have been legally advised that in view of expected reliefs the provision for Income Tax made in accounts is considered adequate.

9. Certain ÃC forms in respect of inter-state sale will be collected in due course of time. Liability on account of Sales-Tax may arise on such inter-state sales relating to which ÃC forms are not received.

10. Additional information pursuant to the Provisions of Part II of the Schedule VI of the Companies Act, 1956.

Commission to Managerial personnel :

Because of inadequacy of Profit, no commission is payable.

* Managerial Remuneration is exclusive of provision for gratuity and leave salary for which seperate actuarial Valuation has not been provided by Actuary.

NOTES :

1. Quantitative figures of Distillery products are not ascertainable, because the basic product of spirits is converted later into various strengths with water dilution.

2. Closing stock of Molasses arrived at after adjustment of excess of 2,541 qtls. and wastage of 1,082 Qtls.(Previous year 48,438 Qtls., out of which normal wastage 9,156 qtls. & abnormal wastage due to bursting of tank 39,282 qtls.)

3. Turnover includes inter-unit transfer of Rs. 14,79,63,827 (Previous year Rs. 11,12,36,802).

(b) In accordance with "Accounting Standard-22" the company has

recognized the deferred tax liability of Rs. 1,36,94,411 which has been adjusted in Profit & Loss account.

12. Related parties Disclosures :

I Relationship

A Key Management personnel : Designation

1.Mr. Rajat Lal Managing Director

2.Mr. Vivek Viswanathan Joint Managing Director

3.Mr. K.B. Lal Sr.Executive Director

B Relatives of Key Management Personnel Relation with Key Management Personnel

1. Smt. Sudha Singhania Sister of Shri Rajat Lal

2. Smt. Poonam Lal Wife of Shri Rajat Lal

3. Sh. Rahul Lal Son of Shri Rajat Lal

4. Ms. Pooja Lal Daughter of Shri Rajat Lal

5. Sh. P.K. Viswanathan Father of Shri Vivek Viswanathan

6. Smt. Manjula Viswanathan Mother of Shri Vivek Viswanathan

7. Smt. Radhika Sister of Shri Vivek Viswanathan

8. Smt. Nirmala Lal Wife of Shri K.B. Lal

9. Sh. Kapil Bhushan Lal Son of Shri K.B. Lal

10. Smt. Aradhana Daughter of Shri K.B. Lal

11. Smt. Minoo Daughter of Shri K.B. Lal

12. Smt. Anjana Aggarwal Daughter of Shri K.B. Lal

13. Segment Reporting :

The Companys operation predominantly relates to manufacture and sale of Sugar and Alcohol products. Accordingly the Sugar and Alcohol products primarily comprises the basis for primary and secondary for segment information :

14. Regarding the status of Suppliers the Small Scale Industrial undertakings to whom amounts are due for more than thirty days have been determined based on the information available with the Company are as follows :

(a) M/s Aay Cee Engineering Works, (b) M/S Alpha Control Instruments Pvt.Ltd., (c) M/s Arosol Chemicals Pvt. Ltd., (d) M/s Akar Implex Pvt. Ltd. , (e) M/s Century Instrument Pvt. Ltd., (f) M/s DBR Cooling Tower Pvt. Ltd., (g) M/s Rocky Engineering & Repairing Works, (h) M/s Vikram Chemicals Industries, (i) M/s Vikas Pump & Projects.

15. The Company, during the year, has reviewed the Carrying Value of the assets for finding out the impairment, if any. The review has not revealed any impairment of assets in terms of Accounting standard-28 issued by the Institute of Chartered Accountants of India.

16. Certain previous year figures have been rearranged to make them comparable with current year figures.

17. Figures have been rounded off nearest to rupee.

18. Cash Flow statement for the year ended 31st March, 2010 is enclosed in the statement annexed to these accounts as Annexure I.

Note : Figures in ( ) denote Cash OutgoE

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