Notes to Accounts of Sukhjit Starch & Chemicals Ltd.

Mar 31, 2025

Punjab National Bank (under item no (a) above)

Secured against hypothecation of raw material, stores, semi-finished goods & finished goods and Book Debts and colletarally secured against Eq. mortgage of land & building of Nizamabad unit,lease rights on land of malda unit, building constructed there on and the P & M and other fixed assets of the Nizambad & Malda units.

Citi Bank NA (under item no (b) above):-

Secured against charge on a part of land located at G T Road, Phagwara

Current maturities of long Term Borrowings (under item no (c) above) are secured as per item no. 18(a)

INFORMATION UNDER Ind AS-19 ‘''EMPLOYEE BENEFITS'''' :

Defined Benefit Plan

Defined benefit plans include Gratuity which is determined on the basis of actuarial valuation at the end of the year and contributions are deposited with SBI Life Insurance Company Ltd. under a separate trust, and charged to the Profit & Loss Account of the relevant year. The required disclosures are given hereunder:

4. Contingent Liabilities not provided for include :

(i) LCs / Bank Guarantees / Corporate Guarantee / Bond :

(a) The Company has issued LCs / Bank Guarantees for H 10.22 Crores (Previous Year H10.22 Crores) in favour of West Bengal State Electricity Board & Himachal Pradesh State Electricity Board for power connection of Malda unit & Gurplah unit & for import of machinery / machinery parts etc.

(b) The Company has given a Corporate Guarantee(s) of H 40 crores (Previous Year H40 Crores) to Yes Bank Ltd. for availing the Term Loan by its wholly owned subsidiary M/s Sukhjit Mega Food Park & Infra Ltd. for setting up the Mega Food Park. The outstanding balance of the term loan appeared at H 2 Cr. as on 31.03.2025 (H10 Cr. as on 31.03.2024), which has been squared up in the month of April, 2025 and the said corporate guarantee of H 40 crores is being released by the Bank. There is no other Corporate Guarantee / third party Guarantee / security given / provided by the Company.

(c) The Company has executed a common Bond of H 9 Crores (Previous year H 9 Crores) in favour of Assistant Commissioner of Customs/ Customs & Excise for availing exemption against import of machinery under EPCG scheme. The Company is fulfilling the export obligation under EPCG scheme of the Central Government against import of capital goods at concessional rates. The pending Export obligation appeared at H 69.49 Crores as on 31.03.2025 (Previous year H 67.09 Crores) to be fulfilled in the period of next 3 years. The exports of the company appeared at H 0.94 Crores during the current year (PY H 6.12 Crores).

- (**) H2.81Crores has been wrongly levied for R&C measures by A.P. Northern Power Distribution Company Ltd., Nizamabad against exemption enjoyed by the unit. Our petition has been duly admitted by the Hon''ble High Court of Andhra Pradesh on merits and the demand has been stayed accordingly.

- (***) H3.03 Crores include H 2.51 Crores is the demand raised by the Assessing officer by wrongly disallowing the expense(s) duly allowable u/s 43B of the Income Tax Act, 1961, without appreciating the factual position and balance H 0.52 Crores is raised by the Assessing officer by disallowing our claim for an item against the law settled by the Hon''ble Supreme Court. The company has filed an appeal and the matter is pending before Hon''ble CIT (Appeals).

(iii) Estimated value of contracts remaining to be executed on capital account and not provided for (net of Advances) : H 7.50 Crores (Previous year H 9.50 Crores)

5. Short term loans & advances include H 43.20 Crores (Previous year H 42.84 Crores) and Other non current assets include H21.63 Crores (Previous year H21.63 Crores) due from the subsidiary companies. These mainly include H 62.41 Crores (Previous year H 61.78 Crores) receivable from Sukhjit Mega Food Park & Infra Ltd., which is providing some key infrastructural facilities & utilities to the manufacturing unit of the company at Rehana Jattan, Phagwara.

16. ADDITIONAL REGULATORY INFORMATION / DISCLOSURE AS PER SCHEDULE III TO THE COMPANIES ACT, 2013:

(i) The Company does not have any benami property held in its name. No proceedings have been initiated or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) The quarterly / monthly statements / information of current assets filed by the company with banks are in agreement with the books of accounts.

(iii) The company has not used the borrowings for any purpose other than the specified purpose of the borrowings. The funds raised on short term basis have not been utilised for long term purposes during the year.

(iv) There is not default in terms of repayment of any loan i.e either principal or interest thereon.

(v) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any government authority.

(vi) The Company has complied with the requirement with respect to number of layers, prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

(vii) Utilisation of borrowed funds and share premium :

(i) 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 with 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.

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

(a) Directly or indirectly lend or invest with 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.

(viii) There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.

(ix) The Company has not traded or invested in crypto currency or virtual currency during the year.

(x) The company had no transaction during the year with the companies struck off u/s 248 of The Companies Act, 2013 or u/s 560 of The Companies Act, 1956.

(xi) The Company had no Intangible asset under development at the end of the year.

(xii) The Company does not have any charges or satisfaction of charges which are yet to be registered with Registrar of Companies beyond the statutory period.

(xiii) The financial statements have been approved by the Audit Committee and the Board of Directors at their respective meetings held on 30^th May, 2025.

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Mar 31, 2024

a HDFC Bank Ltd:-

i) H NIL (PY H 127.40 lacs) Secured against Hyp. of Plant & Machinery and other movable fixed assets purchased out of this Term Loan at Malda Unit, repayable in sixteen equal quarterly installments. First Installment started from July,2020.

ii) H 375 lacs (PY H 1875 lacs) Secured against Hyp. of Plant & Machinery and other movable fixed assets of Rehana Jattan Unit, repayable in twenty equal quarterly installments. First Installment started from September,2020.

The loans are colleterally secured against First Pari Passu charge on Plant & Machinery and other movable fixed assets & equitable Mortgage of land and building of Gurplah Unit.

b YES Bank Ltd:-

Secured against First Pari Passu charge on Plant & Machinery and other movable fixed assets & Equitable Mortgage of land and building of Gurplah Unit. Single Repayment in July, 2024.

a) Punjab National Bank

Secured against hypothecation of raw material, stores, semi-finished goods & finished goods and Book Debts and collaterally secured against Eq. mortgage of land & building of Nizamabad unit,lease rights on land of malda unit, building constructed there on and the P & M and other fixed assets of the Nizambad & Malda units.

b) Citi Bank NA:-

Secured against charge on a part of land located at G T Road, Phagwara

c) Current maturities of long Term Borrowings are secured as per item no. 18(a) & (b)

4. Contingent Liabilities not provided for include :

(i) LCs / Bank Guarantees / Corporate Guarantee / Bond :

(a) The Company has issued LCs / Bank Guarantees for H 10.22 Crores (Previous Year H10.18 Crores) in favour of West Bengal State Electricity Board & Himachal Pradesh State Electricity Board for power connection of Malda unit & Gurplah unit & for import of machinery / machinery parts etc.

(b) The Company has given a Corporate Guarantee(s) of H40 crores (Previous Year H40 Crores) to Yes Bank Ltd. for availing the Term Loan by its wholly owned subsidiary M/s Sukhjit Mega Food Park & Infra Ltd. for setting up the Mega Food Park. The outstanding balance of the term loan appeared at H 10 Cr. as on 31.03.2024 (H18 Cr. as on 31.03.2023). There is no any other Guarantee / third party Guarantee / security given / provided by the Company.

(c) The Company has executed a common Bond of H 9 Crores (Previous year H 9 Crores) in favour of Assistant Commissioner of Customs/ Customs & Excise for availing concessional rate of duty against import of machinery under EPCG scheme. The Company is fulfilling the export obligation under EPCG scheme of the Central Government against import of capital goods at concessional rates. The pending Export obligation appeared at H 77.09 Crores as on 31.03.2024 (Previous year H 62.28 Crores) to be fulfilled in the period of next 3 years. The exports of the company appeared at H 6.12 Crores during the current year (PY H 12.59 Crores). The Company is in the process of increasing the production of exportable goods to achieve higher export turnover in the coming years.

- (*) H 28.93 Crores is the disputed Central Excise Duty (excluding penalty & interest) demand raised by the Central Excise Dept. since 01/04/1997 alleging the sale of Maize Starch as that of Modified Starch. The Company has been manufacturing Maize Starch by following the standard Wet Milling Process for the last many decades and the product is sold and accepted by the market as Maize Starch. The product has been repeatedly got tested by the Department from the Central Revenue Laboratory of the Central Excise Deptt. and found Maize Starch against the claim of the Revenue Deptt. So, the company does not foresee any liability to crystallize on this account. The matter is pending with Hon''ble commissioner, Goods & Service Tax, Jalandhar.

- (**) H 2.19 Crores include demand raised by Assistant commissioner (Hqrs. Prev.), CGST, Commissionerate Shimla for H1.22 Crores and by Assistant Commissioner, CGST Nizamabad Division for H0.97 Crores, by alleging one of our products (Cattle Feed) to be taxable under GST Act. The matter was under appeal as on 31^st March,2024 for H 1.22 Crores with Commissioner (Appeals) at Chandigarh and has been decided in our favour in the running year after balance sheet date. The matter for H 0.97 Crores is under appeal with Joint Commsissioner State Tax, Hyderabad. However, it has been proved to the satisfaction of the Deptt. that the product has been sold and used as cattle feed being fully exempt under the relevant chapter of the GST. So, there does not appear any liability to crystallize on this front.

- (***) H 2.81Crores has been wrongly levied for R&C measures by A.P. Northern Power Distribution Company Ltd., Nizamabad against exemption enjoyed by the unit. Our petition has been duly admitted by the Hon''ble High Court of Andhra Pradesh on merits and the demand has been stayed accordingly.

- (****) H 3.03 Crores include H 2.51 Crores as the demand raised by the Assessing officer by wrongly disallowing the expense(s) duly allowable u/s 43B of the Income Tax Act, 1961, without appreciating the factual position and balance H 0.52 Crores by disallowing our claim for an item against the law settled by the Hon''ble Supreme Court. The company has filed appeals and both the matters are pending before Hon''ble CIT (Appeals).

(iii) Estimated value of contracts remaining to be executed on capital account and not provided for (net of Advances) : H 9.50 Crores (Previous year H10.25 Crores)

5. Short term loans & advances include H 42.84 Crores (Previous year H35.38 Crores) and Other non current assets include H21.63 Crores (Previous year H21.63 Crores) due from the subsidiary companies. These mainly include H 61.78 Crores (Previous year H 53.97 Crores) receivable from Sukhjit Mega Food Park & Infra Ltd., against some key infrastructural facilities & utilities to the manufacturing unit of the company at Rehana Jattan, Phagwara.

16. ADDITIONAL REGULATORY INFORMATION / DISCLOSURE AS PER SCHEDULE III TO THE COMPANIES ACT, 2013:

(i) The Company does not have any benami property held in its name. No proceedings have been initiated or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) The quarterly / monthly statements / information of current assets filed by the company with banks are in agreement with the books of accounts.

(iii) The company has not used the borrowings for any purpose other than the specified purpose of the borrowings. The funds raised on short term basis have not been utilised for long term purposes during the year.

(iv) There is not default in terms of repayment of any loan i.e either principal or interest thereon.

(v) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any government authority.

(vi) The Company has complied with the requirement with respect to number of layers prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

(vii) Utilisation of borrowed funds and share premium

(i) The Company has not advanced or loaned or invested funds with 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 with 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 with or on behalf of the ultimate beneficiaries.

(ii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding

Party) with the understanding (whether recorded in writing or otherwise) that the Company shall :

(a) Directly or indirectly lend or invest with 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.

(viii) There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.

(ix) The Company has not traded or invested in crypto currency or virtual currency during the year.

(x) The company had no transaction with the companies struck off u/s 248 of The Companies Act, 2013 or u/s 560 of The Companies Act, 1956 duing the year.

(xi) The Company had no Intangible asset under development at the end of the year.

(xii) The Company does not have any charges or satisfaction of charges which are yet to be registered with Registrar of Companies beyond the statutory period.

(xiii) The financial statements have been approved by the Audit Committee and the Board of Directors at their respective meetings held on 29^th May, 2024.

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Mar 31, 2023

a HDFC Bank Ltd:-

i) H 127.40 lacs (PY H 636.98 lacs) Secured against Hyp. of Plant & Machinery and other movable fixed assets purchased out of this Term Loan at Malda Unit,repayable in sixteen equal quarterly installments. First Installment started from July,2020.

ii) H 1875 lacs (PY H 3375 lacs) Secured against Hyp. of Plant & Machinery and other movable fixed assets of Rehana Jattan Unit,repayable in twenty equal quarterly installments. First Installment started from September,2020.

The loans are colleterally secured against First Pari Passu charge on Plant & Machinery and other movable fixed assets & equitable Mortgage of land and building of Gurplah Unit.

b YES Bank Ltd:-

Secured against First Pari Passu charge on Plant & Machinery and other movable fixed assets & Equitable Mortgage of land and building of Gurplah Unit.Bullet Repayment in July, 2024.

a) Punjab National Bank

Secured against hypothecation of raw material, stores, semi-finished goods & finished goods and Book Debts and colletarally secured against Eq. mortgage of land & building of Nizamabad unit, lease rights on land of malda unit, building constructed there on and the P & M and other fixed assets of the Nizambad & Malda units.

b) Citi Bank NA:-

Secured against Eq. mortgage on a part of land located at G T Road, Phagwara

c) Current maturities of long Term Borrowings are secured as per note no. 18(a)

INFORMATION UNDER Ind AS-19 ‘''EMPLOYEE BENEFITS'''' :

Defined Benefit Plan

Defined benefit plans include Gratuity which is determined on the basis of actuarial valuation at the end of the year and contributions are deposited with SBI Life Insurance Company Ltd. under a separate trust, and charged to the Profit & Loss Account of the relevant year. The required disclosures are given hereunder:

4. Contingent Liabilities not provided for include :

(i) LCs / Bank Guarantees / Corporate Guarantee / Bond :

(a) The Company has issued LCs / Bank Guarantees for H 10.18 Crores (Previous Year H 10.18 Crores) in favour of West Bengal State Electricity Board & Himachal Pradesh State Electricity Board for power connection of Malda unit & Gurplah unit.

(b) The Company has given a Corporate Guarantee(s) of H 40 crores (Previous Year H 40 crores) to Yes Bank Ltd. for availing the Term Loan by its wholly owned subsidiary M/s Sukhjit Mega Food Park & Infra Ltd. for setting up the Mega Food Park. The outstanding balance of the term loan appeared at H 18 Cr. as on 31.03.2023 (H 26 Cr. as on 31.03.2022). There is no any other Guarantee / third party Guarantee / security given / provided by the Company.

(c) The Company has given a common Bond of H 9 crores (Previous year H 9 crores) to Assistant Commissioner of Customs/ Customs & Excise for availing exemption against import of machinery under EPCG scheme. The Company is fulfilling the export obligation under EPCG scheme of the Central Government against import of capital goods at concessional rates. The pending Export obligation appeared at H 61.76 Crores as on 31.03.2023 (Previous year H 65.18 Crores) to be fulfilled in the period of next 6 years. The exports of the company appeared at H 12.59 Crores during the current year (PY H 12.31 crores).

- (*) H 28.93 Crores is the disputed Central Excise Duty (excluding penalty & interest) demand raised by the Central Excise Dept. since 01/04/1997 alleging the sale of Maize Starch as that of Modified Starch. The company has been manufacturing Maize Starch by following the standard Wet Milling Process for the last many decades and the product is sold and accepted by the market as Maize Starch. The product has been repeatedly got tested by the Department from the Central Revenue Laboratory of the Central Excise Deptt. and found Maize Starch against the claim of the Revenue Deptt. So, the company does not foresee any liability to crystallize on this account. The matter is pending with Hon''ble commissioner, Goods & Service Tax, Jalandhar.

- (**) H 2.19 Crores include demand issued by Assistant commissioner (Hqrs. Prev.), CGST, Commissionerate Shimla for H 1.22 Crores and by Assistant Commissioner, CGST Nizamabad Division for H 0.97 Crores, by alleging one of our products (Cattle Feed) to be taxable under GST Act. The matter for H 0.97 crores is pending for adjudicaton with the Assistant commissioner CGST Nizamabad and for H 1.22 crores is under appeal with Commissioner (Appeals) at Chandigarh. However, it has been proved to the satisfaction of the Deptt. that the product has been sold and used as cattle feed being fully exempt under the relevant chapter of the GST. So, there does not appear any liability to crystalize on this front.

- (***) H 2.81 Crores has been wrongly levied for R&C measures by A.P. Northern Power Distribution Company Ltd.,Nizamabad against exemption enjoyed by the unit. Our petition has been duly admitted by the Hon''ble High Court of Andhra Pradesh on merits and the demand has been stayed accordingly.

- (****) h 1.08 crores include H 0.52 crores is the demand raised by the Assessing officer by disallowing our claim for an item against the law settled by the Hon''ble Supreme Court. The company has filed an appeal and the matter is pending before Hon''ble CIT (Appeals). The balance of H 0.58 crores relates to the demand raised by the Assessing officer by wrongly disallowing the expense duly allowable u/s 43B of the Income Tax Act, 1961, without appreciating the factual position. The company has filed a rectification application, which is pending with the Income Tax department.

(iii) Estimated value of contracts remaining to be executed on capital account and not provided for (net of Advances) : H 10.25 Crores (Previous year H 7.50 Crores)

5. Short term loans & advances include H 35.38 Crores (Previous year H 30.29 Crores) and Other non current assets include H 21.63 Crores (Previous year H 21.63 Crores) due from the subsidiary companies. These mainly include H 53.97 Crores (Previous year H 49.13 Crores) receivable from Sukhjit Mega Food Park & Infra Ltd., which is providing some key infrastructural facilities & utilities to the manufacturing unit of the company at Rehana Jattan, Phagwara.

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Mar 31, 2018

1. CORPORATE INFORMATION

The Sukhjit Starch & Chemicals Limited (‘The Company’) is Public Limited Company incorporated and domiciled in India. The address of its registered office is Sarai Road, Phagwara - 144401.

The company is an Agro-Processing Industry manufacturing starch & its derivatives i.e Liquid Glucose, Dextrose Monohydrate, Dextrose Anhydrous, Sorbitol, Modified Starches and by-products. The company has emerged as one of the largest manufacturers of the Starch and its derivatives in India having multi-locational manufacturing units at Phagwara (Punjab), Nizamabad (Telangana), Malda (West Bengal) and Gurplah (Himachal Pradesh).

The Company is listed on Bombay Stock Exchange Ltd. (BSE). The standalone financial statements for the year ended March 31, 2018 were approved by the Board of Directors on 30.05.2018.

(*) There was Nil amount outstanding for more than 45 days & no overdue amount to the Micro, Small & Medium Enterprise, so no interest was payable/paid during the year (P.Y. Nil) (31.03.2016 - Nil)

(**) Include Rs. 164.78 lacs (P.Y. Rs. 218.92 lacs) (31.03.2016 - 278.48) as advance from Sundry Customers for supply of Goods.

Defined Benefit Plan

Defined benefit plans include Gratuity which is determined on the basis of actuarial valuation at the end of the year and contributions are deposited with SBI Life Insurance Company Ltd. under a separate trust, and charged to the Profit & Loss Account of the relevant year. The required disclosures are given hereunder :

1. Figures for the previous year have been recasted/regrouped wherever necessary.

2. Contingent Liabilities not provided for include :

(i) LCs / Bank Guarantees / Corporate Guarantee issued for t 314.33 lacs (Previous Year t 331.38 lacs) in favour of West Bengal State Electricity Board & Himachal Pradesh State Electricity Board for power connection of Malda unit & Gurplah unit, Assistant Excise & Taxation Commissioner for VAT rebate, Commissioner of Customs / Jt. Director of Foreign Trade for the import of machinery under EPCG licence etc. The Company has given a Corporate Guarantee of Rs. 40 crores to Yes Bank Ltd for availing the Term Loan by its wholly owned subsidiary ‘M/s Sukhjit Mega Food Park & Infra Ltd.’ for setting up the Mega Food Park.

(ii) Central Excise Duty : Disputed Liabilities, not provided as expense in the accounts, comprise of Rs. 32.34 Crores. The amount mainly includes Rs. 28.93 Crores as disputed Central Excise Duty (excluding penalty and interest) demand raised by the Central Excise Department since 01/04/1997 alleging the sale of Maize Starch as that of Modified Starch. Since the matter is subjudice, the Department has continuously been issuing the show cause notices against the differential duty. However, pertinent to mention that the product has been repeatedly got tested by the Department from its Central Revenue Laboratory where it has been clearly held to be Maize Starch. So the demand is totally baseless and without any substance. The company has been manufacturing Maize Starch by following the standard Wet Milling Process for the last many decades and the product is sold and accepted by the market as Maize Starch, so the company does not foresee any liability to crystallize on this account. Other items related to a demand of Rs. 1.18 crores raised on sale made through the consignment agents of the Company which is pending before the Assistant Commissioner, Rs. 2.22 Crores wrongly levied for R&C measures by A.P. Northern Power Distribution Company Ltd., Nizamabad against exemption enjoyed by the unit, the matter is pending before the Hon’ble High Court of Andhra Pradesh and balance on account of other Misc. service tax demands due to difference of opinion.

(iii) Estimated value of contracts remaining to be executed on capital account and not provided for (net of Advances) : Rs. 3.25 Crores (Previous year Rs. 2.75 Crores)

(iv) Export obligation pending to be fulfilled is US$ 4.90 lacs (Previous year US$ 11.32 lacs) in next 6 years under EPCG scheme of the Central Government against import of capital goods at concessional rates. The company has achieved an export turnover of US$ 25.21 lacs during the year under reference (Previous year US$ 10.94 lacs).

2. National saving certificates of Rs. 0.08 lacs (Previous year Rs. 0.08 lacs) are pledged to the Govt. authorities as security.

3. Short term loans & advances include Rs. 235.16 lacs (Previous year Rs. 316.42 lacs) due from the subsidiary companies.

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Mar 31, 2017

1. Figures for the previous year have been recasted/regrouped wherever necessary.

2. Contingent Liabilities not provided for include :

3. LCs / Bank Guarantees issued for Rs. 331.38 lacs (Previous Year Rs. 350.33 lacs) in favour of West Bengal State Electricity Board & Himachal Pradesh State Electricity Board for power connection of Malda unit & Gurplah unit, Assistant Excise & Taxation Commissioner for VAT rebate, Commissioner of Customs / Jt. Director of Foreign Trade for the import of machinery under EPCG licence etc.

4. Central Excise Duty : Disputed Liabilities, not provided as expense in the accounts, comprise of Rs. 28.62 Crores. The amount mainly includes Rs.25.98 Crores as disputed Central Excise Duty (excluding penalty and interest) demand raised by the Central Excise Department since 01/04/1997 alleging the sale of Maize Starch as that of Modified Starch. Since the matter is subjudice, the Department has continuously been issuing the show cause notices against the differential duty. However, pertinent to mention that the product has been repeatedly got tested by the Department from its Central Revenue Laboratory where it has been clearly held to be Maize Starch. So the demand is totally baseless and without any substance. The company has been manufacturing Maize Starch by following the standard Wet Milling Process for the last many decades and the product is sold and accepted by the market as Maize Starch, so the company does not foresee any liability to crystallize on this account. Other items related to a demand of Rs. 1.31 crores raised on sale made through the consignment agents of the Company which is pending before the Assistant Commissioner, Rs. 1.25 Crores wrongly levied for R&C measures by A.P. Northern Power Distribution Company Ltd., Nizamabad against exemption enjoyed by the unit, the matter is pending before the Hon''ble High Court of Andhra Pradesh and balance on account of other Misc. service tax demands due to difference of opinion.

5. Estimated value of contracts remaining to be executed on capital account and not provided for (net of Advances) : Rs. 2.75 Crores (Previous year Rs. 3.00 Crores)

6. Export obligation pending to be fulfilled is US$ 11.32 lacs (Previous year US$ 8.61 lacs) in next 6 years under EPCG scheme of the Central Government against import of capital goods at concessional rates. The company has achieved an export turnover of US$ 10.94 lacs during the year under reference (Previous year US$ 13.00 lacs).

7. National saving certificates of Rs. 0.08 lacs (Previous year Rs. 0.08 lacs) are pledged to the Govt. authorities as security.

8. Short term loans & advances include Rs. 316.42 lacs (Previous year Rs. 283.34 lacs) due from the subsidiary companies.

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Mar 31, 2016

-Note: This form of proxy in order to be effected should be duly completed and deposited at the Registered Office of the Company, not less than 48 hours before the commencement of the Meeting.

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Mar 31, 2014

1. Figures for the previous year have been recasted/regrouped wherever necessary.

2. Contingent Liabilities not provided for include :

(i) LCs/ Bank Guarantees issued for Rs. 251.51 lacs (Prev. Year Rs. 285.14 lacs) in favour of West Bengal State Electricity Board & Himachal Pradesh State Electricity Board for power connection of Malda unit & Gurplah unit. Commissioner of Customs / Jt. Director of Foreign Trade for import of machinery under EPCG licence etc.

(ii) Central Excise Duty : Disputed liabilities, not provided as expenses in the accounts, comprise Rs. 22.15 crores mainly Rs. 20.90 crores on account of disputed Central Excise Duty on Maize Starch excluding penalty and interest since 01/04/1997 alleging the sale of Maize Starch as that of Modified Starch. The product has been repeatedly got tested by the Department from its Central Revenue Laboratory where it has been clearly held to be Maize Starch. So the demand is totally baseless and without any substance and the matter is subjudice. The Company has been manufacturing Maize Starch by following the standard Wet Milling Process for the last many decades and the product is sold and accepted by the market as Maize Starch, so the company does not foresee any liability to crystallize on this account. Other items include Show Cause Notice concerning demand of Rs. 1.19 crores on exempted goods and the case is pending before The Commissioner, Central Excise. In other cases, for Rs. 0.06 crores, the decisions are in favour of the Company and the department is in appeal before the Tribunal.

(iii) Estimated value of contracts remaining to be executed on capital account and not provided for (net of advances) : Rs. 5.50 crores (Prev. year Rs. 6.75 crores)

(iv) Export obligation pending to be fulfiled is US$ 0.21 lacs (Prev. year US$ 19.08 lacs) in next 6 years under EPCG scheme of the Central Government against import of capital goods at concessional rates. The company has achieved an export turnover of US$ 15.89 lacs during the year under reference (Prev. Year US$ 13.73 lacs).

3. National Saving Certificates of Rs. 0.08 lacs (Prev. year Rs. 0.08 lacs) are pledged to the Govt, authorities as security.

4. Short term loans & advances includeRs. 293.30 lacs (Prev. yearRs. 658.12 lacs) due from the subsidiary companies.

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Mar 31, 2013

1. Figures for the previous year have been recasted/regrouped wherever necessary.

2. Contingent Liabilities not provided for include :

(i) LCs / Bank Guarantees issued for Rs. 285.14 lacs (Prev. Year Rs. 173.04 lacs) in favour of West Bengal State Electricity Board & Himachal Pradesh State Electricity Board for power connection of Malda unit & Gurplah unit. Commissioner of Customs / Jt. Director of Foreign Trade for import of machinery under EPCG licence etc.

(ii) Central Excise Duty : Disputed liabilities, not provided as expenses in the accounts, comprise Rs. 20.38 crores mainly Rs. 19.12 crores on account of disputed Central Excise Duty excluding penalty and interest. The amount is on account of demand raised by Central Excise Department since 01/04/1997 alleging the sale of Maize Starch as that of Modified Starch. The product has been repeatedly got tested by the Department from its Central Revenue Laboratory where it has been clearly held to be Maize Starch. So the demand is totally baseless and without any substance and the matter is subjudice. The Company has been manufacturing Maize Starch by following the standard Wet Milling Process for the last many decades and the product is sold and accepted by the market as Maize Starch, so the company does not foresee any liability to crystallize on this account. Other items include Show Cause Notice concerning demand of Rs. 1.19 crores on exempted goods and the case is pending before The Commissioner, Central Excise. In other cases, the decisions are in favour of the Company and the department is in appeal before the Tribunal.

(iii) Estimated value of contracts remaining to be executed on capital account and not provided for (net of advances) : Rs. 6.75 crores (Prev. year Rs. 9.38 crores)

(iv) Export obligation pending to be fulfiled is US$ 19.08 lacs (Prev. year US$ 32.81 lacs) in next 7 years under EPCG scheme of the Central Government against import of capital goods at concessional rates. The company has achieved an export turnover of US$ 13.73 lacs during the year under reference (Prev. Year US$ 14.36 lacs).

3. National Saving Certificates of Rs. 0.08 lacs (Prev. year Rs. 0.08 lacs) are pledged to the Govt, authorities as security.

4. Short term loans & advances include Rs. 658.12 lacs (Prev. year Rs. 817.95 lacs) due from the subsidiary companies and Long term loans & advances include Nil (Previous year Rs. 107 lacs) as fixed deposit with subsidiarie(s).

5. Related Party Disclosures :

(a) List of related parties / Relationships :

SUBSIDIARY COMPANIES

(i) The Vijoy Steel & General Mills Co. Ltd. Subsidiary

(ii) Sukhjit Finance Ltd. Subsidiary

(iii) Scott Industries Ltd. Subsidiary

KEY MANAGEMENT PERSONNEL (i) Mr. I.K. Sardana (ii) Mr. K.K. Sardana (iii) Mr. S.M. Jindal

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Mar 31, 2012

(*) There was no amount outstanding for more than 45 days to any of the above Micro, Small & Medium Enterprise. Since, No amount was overdue to these enterprises, so no interest was payable/paid during the year (Prev. year NIL)

(**) Include Rs. 189.46 lacs (Prev. Year Rs. 262.04 lacs) as advance from Sundry Customers for supply of Goods.

Aggregate Amount of Unquoted Investments - Rs. 825.06 lacs (P.Y. Rs. 825.16) Aggregate Amount of Quoted Investements - Rs. 200 lacs (P.Y. 100) Market Value of Quoted Investments - Rs. 204.12 lacs (P.Y. Rs. 102.83 lacs)

Aggregate Amount of Unquoted Investments - Rs. 374.84 lacs (P.Y. Rs. 924 lacs) Aggregate Amount of Quoted Investements - Rs. 688.08 lacs (P.Y. Rs. 350 lacs) Market Value of Quoted Investments - Rs. 711.27 lacs (P.Y. Rs. 356.76 lacs)

(*) Include Rs. 157.20 lacs (P.Y. Rs. 48.89 lacs) as Unutilised Cenvat on Capital Goods & Rs. 54.62 lacs (P.Y. Rs. 57.39 lacs) as Advances to Sundry Suppliers for purchase of material(s).

1. Figures for the previous year have been recasted/regrouped wherever necessary.

2. Contingent Liabilities not provided for include :

(i) Bank Guarantees issued for Rs. 173.04 lacs (Prev. Year Rs. 126.30 lacs) in favour of West Bengal State Electricity Board & Himachal Pradesh State Electricity Board for power connection of Malda unit & Gurplah unit. Commissioner of Customs / Jt. Director of Foreign Trade for import of machinery under EPCG licence etc.

(ii) Central Excise Duty : Disputed liabilities not adjusted as expenses in the accounts include Rs. 18.80 crores (Prev. year Rs. 17.24 crores) on account of Central Excise Duty in dispute. The major item consists of Rs. 17.54 crores (Prev. year 17.06 crores) excluding penalty & interest on account of the demands raised by the Central Excise Department since 1.4.1997 against sale of maize starch disputing the classification thereof. The company has challenged the demand before the Hon'ble High Court which has since been stayed by the Hon'ble High Court and the matter is subjudice. Other items include Show Cause Notice concerning demand of Rs. 1.19 crores (Previous Year Nil) on exempted goods and the case is pending before The Commissioner, Central Excise. In other cases, the decisions are in favour of the Company and the department is in appeal before the Tribunal.

(iii) Estimated value of contracts remaining to be executed on capital account and not provided for (net of advances) : Rs. 937.62 lacs (Prev. year Rs. 962.91 lacs)

(iv) Export obligation pending to be fulfiled is US$ 32.81 lacs (Prev. year US$ 21.81 lacs) under the EPCG scheme of the Central Government against import of capital goods at concessional rates. The average export obligation to be maintained every year is US$ 3.42 lacs (Prev. year US$ 1.80 lacs). The company has achieved an export turnover of US$ 14.36 lacs during the year under reference (Prev. Year US$ 3.98 lacs).

3. National Saving Certificates of Rs. 0.08 lacs (Prev. year Rs. 0.08 lacs) are pledged to the Govt, authorities as security.

4. Short term loans & advances include Rs. 817.95 lacs (Prev. year Rs. 628.02 lacs) due from the subsidiary companies and Long term loans & advances include Rs. 107 lacs (Prev. year Rs. 107 lacs) as fixed deposit with subsidiary.

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Mar 31, 2011

1. Figures for the previous year have been recasted/regrouped wherever necessary.

2. Contingent Liabilities not provided for include :

(i) Bank Guarantees issued for Rs. 126.30 lacs (Prev. Year Rs. 113.80 lacs) in favour of West Bengal State Electricity Board and Himachal Pradesh State Electricity Board for power connection of Malda Unit and Gurplah unit. Commissioner of Customs / Jt. Director of Foreign Trade for import of machinery under EPCG licence and Excise & Taxation Officer for sale tax subsidy of Gurplah unit.

(ii) Central Excise Duty : Disputed liabilities not adjusted as expenses in the accounts include Rs. 17.24 crores (Prev. year Rs. 15.93 crores) on account of Central Excise Duty in appeals. The major item consists of Rs. 17.06 crores (Prev. year 15.90 crores) excluding penalty & interest on account of the demands raised by the Central Excise Department since 1.4.1997 against sale of maize starch disputing the classification thereof. The company has challenged the demand before the Honble High Court which has since been stayed by the Honble High Courth and the matter is subjdice.

(iii) Estimated value of contracts remaining to be executed on capital account and not provided for (net of advances) : Rs. 962.91 lacs (Prev. year Rs. 50.31 lacs)

(iv) Export obligation pending to be fulfiled is US$ 21,80,796.71 (Prev. year US$ 76,203.20) under the EPCG scheme of the Central Government on account of custom duty saved against import of capital goods at concessional rates. The average export obligation to be maintained every year is U$ 1,80,471 (Prev. year Nil).

3. Buildings of the company at Malda and partly at Phagwara are built on a leased land.

4. National Saving Certificates of Rs. 7,750/- (Prev. year Rs. 7,750/-) are pledged to the Govt, authorities as security.

5. Loans and advances includes Rs. 735.02 lacs (Prev. year Rs. 645.11 lacs) due from the subsidiary companies.

6. Deffered tax has been provided in accordance with the Accounting Standard 22-Accounting for Taxes on Income issued by The Institute of Chartered Accountants of India.

7. An amount of Rs. 22.96 lacs had been due to Micro, Small and Medium Enterprises, as defined in the Micro.. Small and medium Enterprises Development Act, 2006 as at March 31, 2011 (Previous year Nil) and there was no outstanding for more than 45 days to those enterprises as on that date.

8. Related Party Disclosures :

(a) List of related parties / Relationships :

SUBSIDIARY COMPANIES

(i) The Vijoy Steel & General Mills Co. Ltd. : Subsidiary

(ii) Sukhjit Finance Ltd. : Subsidiary

(iii) Scott Industries Ltd. : Subsidiary

KEY MANAGEMENT PERSONNEL

(i) Mr. I.K. Sardana

(ii) Mr. K.K. Sardana

(iii) Mr. S.M. Jindal

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Mar 31, 2010

1. Figures for the previous year have been recasted/regrouped wherever necessary.

2. Contingent Liabilities not provided for include :

(i) Bank Guarantees issued for Rs. 113.80 lacs (Prev. Year Rs. 93.32 lacs) in favour of West Bengal State Electricity Board for power connection of Malda Unit, Himachal Pradesh State Electricity Board for power connection of Gurplah unit. Commissioner of Customs / Jt. Director of Foreign Trade for import of machinery under EPCG licence and Excise & Taxation Officer for sale tax subsidy of Gurplah unit.

(ii) Central Excise Duty : Disputed liabilities not adjusted as expenses in the accounts include Rs. 15.93 crores (Prev. year Rs. 14.85 crores) on account of Central Excise Duty in appeals. The major item consists of Rs. 15.90 crores (Prev. year 14.80 crores) excluding penalty & interest on account of the demands raised by the Central Excise Department since 1.4.1997 against sale of maize starch disputing the classification thereof. The company has challenged the demand before the Honble High Court which has since been stayed by the Honble High Courth and the matter is subjdice.

(iii) Estimated value of contracts remaining to be executed on capital account and not provided for (net of advances): Rs. 50.31 lacs (Prev. year Rs. 289 lacs)

(iv) Export obligation pending to be fulfiled is US$ 76,203.20 (Prev. year US$ 66,332) under the EPCG scheme of the Central Government on account of custom duty saved on import of capital goods at concessional rates.

3. Buildings of the company at Malda and partly at Phagwara are built on leased land.

4. National Saving Certificates of Rs. 7,750/- (Prev. year Rs. 7,750/-) are pledged to the Govt, authorities as security.

5. Loans and advances includes Rs. 645.11 lacs (Prev. year Rs. 575.57 lacs) due from the subsidiary companies.

6. Deffered tax has been provided in accordance with the Accounting Standard 22-Accounting for Taxes on Income issued by The Institute of Chartered Accountants of India.

7. Based on information available with the Company, there are no dues to Micro, Small and Medium Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 and there are no dues to Small scale Industrial Undertakings for more than 30 days as at March 31, 2010.