Notes to Accounts of Uttam Sugar Mills Ltd.

Mar 31, 2024

2.13 Provisions, contingent liabilities and contingent assets.

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at current pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability when discounting is used, the increase in the passage of time is recognized as finance costs.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an out flow of recourses will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is liability that can''t be recognized because it can''t be measured reliably.

A contingent liability is not recognized in the financial statements, but discloses its existence in the Financial Statement.

When the realization of income is virtually certain, then the related asset is no longer a contingent asset, and is recognized as an asset.

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

2.14 Dividend payable

Final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividend are recorded as a liability on the date of declaration by the Company''s Board of Directors. A corresponding amount is recognized directly in equity.

2.15 Foreign currency transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Monetary items denominated in foreign currencies at the year ended translated at the year ended rates which is likely to be realized from, or required to disburse at the balance sheet date. Exchange differences arising on settlement of monetary items at rates different from those at which they were initially recorded / reported in financial statements are recognized as income or expense in the year in which they arise.

Non-monetary items which are carried at historical cost denominated in a foreign currency are translated using the exchange rate at the date of the initial transaction.

2.16 Employee benefits

a) Short -term employee benefits are recognized as an expense at the undiscounted amount in the Statement Profit & Loss Account of the period in which the related service is rendered.

b) Long -term employee benefits are recognized as an expense in the Statement Profit & Loss Account for the year in which the employee has rendered services.

Defined Benefit Plans

The Company''s liabilities on account of gratuity and earned leaves on retirement of employees are determined at the end of each financial year on the basis of actuarial valuation certificates obtained from registered actuary in accordance with the measurement procedure as per Indian Accounting Standard (INDAS)-19-''Employee Benefits''.

i. Compensated absences

Accumulated leave, which is expected to be utilized within next 12 months, is treated as short term employee benefit and this is shown under current provisions in the Balance Sheet. The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefits and shown under long term provisions in the Balance sheet.

ii. Gratuity

The Company provides for retirement benefits in the form of gratuity. The Company''s liability towards this benefit is determined on the basis of actuarial valuation using projected unit credit method at the date of Balance sheet. Actuarial gain and Losses in respect of such benefits are recognized in Other Comprehensive Income.

2.17 Financial instruments

A Financial instrument is any contract that gives rise to financial assets of one entity and a financial liability or equity instrument of another party.

A. Financial Assets

a. Initial recognition

The Company classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement. Financial instruments are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial instruments are recognized initially at fair value plus transactions costs that are directly attributable to the acquisition or issue of the financial instrument, except for financial assets at fair value through statement of profit and loss, which are initially measured at fair value, excluding transaction costs (which is recognized in statement of profit and loss).

b. Subsequent measurement

i) Financial assets carried at amortized cost (AC)

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

ii) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

iii) Financial assets at fair value through statement of profit and loss (FVTPL)

Equity instruments

All equity investments in scope of Ind AS 109 are measured at fair value either as at FVTOCI or FVTPL. The Company makes such election on instrument-by-instrument basis. For equity instruments measured as at FVTOCI, all fair value changes on the instrument, excluding dividends, are recognized in the OCI. Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit & Loss account.

c. De-recognition

A Financial Assets (or where applicable, part of financial assets) is primarily derecognized when:

1. The contractual right to receive cash flows from the assets have expired or

2. The Company has transferred its right to receive cash flow from the financial assets and subsequently all the risks and rewards of ownership of the assets to third party.

d. Reclassification of financial assets

Company determines the classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities.

e. Impairment of financial assets

The Company recognized loss allowance using the expected credit loss (ECL) model for the financial assets which are not fair valued through Statement of Profit and loss. Loss allowance for trade receivable with no significant financing component is measured at an amount equal to life time ECL

For all other financial assets, expected credit loss are measured at an amount equal to the twelve-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.

B. Financial liabilities

a. Initial recognition and measurement

All financial liabilities are recognized initially at fair value and in case of loans and borrowings and payables, net of directly attributable cost. The Company''s financial liabilities include trade and other payable, loans and borrowing including bank over drafts, financial guarantee contracts and derivative financial instruments. Fees of recurring nature are directly recognized in statement of profit and loss as finance cost.

b. Subsequent measurement

Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

i) Loans and borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate (EIR) method. Gains and losses are recognized in statement of profit and loss when liabilities are de-recognized. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance cost in the statement of profit and loss.

ii) Compound financial instruments

At the issue date the fair value of the liability component of a compound instrument is estimated using the market interest rate for a similar non-convertible instrument. This amount is recorded as a liability at amortized cost using the effective interest method until extinguished upon conversion or at the instrument''s redemption date. The equity component is determined as the difference of the amount of the liability component from the fair value of the instrument. This is recognized in equity, net of income tax effects, and is not subsequently re-measured.

c. De-recognition of financial instruments

A financial liability is derecognized where the obligation under the liability is discharged or cancelled or expires where an existing financial liability is replaced by another from the same tender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of new liability. The difference in the respective carrying amounts is recognized in the statement of Profit and Loss.

d. Offsetting of financial instruments

Financial assets and financial liabilities including derivative instruments are offset and the net amount is reported in the Balance sheet, if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis or to realize the assets and settle the liabilities simultaneously.

e. Fair value measurement

Fair value is a market-based measurement, not an entity-specific measurement. Under Ind AS, fair valuation of financial instruments is guided by Ind AS 113 "Fair Value Measurement” (Ind AS - 113).

For some assets and liabilities, observable market transactions or market information might be available. For other assets and liabilities, observable market transactions and market information might not be available. However, the objective of a fair value measurement in both cases is the same to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions (i.e. an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability).

Three widely used valuation techniques specified in the said Ind AS are the market approach, the cost approach and the income approach which have been dealt with separately in the said Ind AS.

Each of the valuation techniques stated as above proceeds on different fundamental assumptions, which have greater or lesser relevance, and at times there is no relevance of a particular methodology to a given situation. Thus, the methods to be adopted for a particular purpose must be judiciously chosen. The application of any particular method of valuation depends on the Company being evaluated, the nature

of industry in which it operates, the Company''s intrinsic strengths and the purpose for which the valuation is made.

In determining the fair value of financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date.

The Company uses the following hierarchy 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 or indirectly.

Level 3 : Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs) f) Share capital

An equity instrument is a contract that evidences residual interest in the assets of the Company after deducting all of its liabilities. Incremental costs directly attributable to the issuance of new equity shares are recognized as a deduction from equity, net of any tax effects.

2.18 Impairment Non-financial assets

The carrying amount of any property, plant and equipment and intangible assets with finite lives are reviewed at each balance sheet date, if there is any indication of impairment based on internal /external factor. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. Recoverable amount is higher of an asset''s or cash generating unit''s net selling price and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets.

An impairment loss is charged to the Statement of Profit and loss in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount. At each balance sheet date, the Company assesses whether there is any indication that any property, plant and equipment and intangible assets with finite lives may be impaired. If any such impairment exists, the recoverable amount of an asset is estimated to determine the extent of impairment. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the impairment loss previously recognized is reversed such that the asset is recognized at its recoverable amount but not exceeding written down value which would have been reported if the impairment loss had not been recognized.

2.19 Taxes

Income tax expense comprises current tax and deferred tax and is recognized in the Statement of Profit and Loss except to the extent it relates to items directly recognized in Equity or in Other Comprehensive Income (OCI). Current tax

Provision for current tax is made with reference to taxable income computed for the accounting period for which the financial statements are prepared by applying the tax rates and laws that are enacted or substantively enacted at the balance sheet date. The tax is recognized in statement of profit and loss, except to the extent that it related to items recognized in the OCI or in other equity. In this case, the tax is also recognized in other comprehensive income and other equity.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis or to realize the assets and settle the liabilities simultaneously.

Deferred tax

Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in financial statements, except when the deferred tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the time of the transaction.

Deferred tax assets are recognized for deductible temporary differences, the carry forward of and any unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets to be recovered.

Unrecognized deferred tax assets are re-assessed at each balance sheet date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off deferred tax assets against deferred tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

2.20 Earnings per Share

The Company presents basic and diluted earnings per share ("EPS”) data for its equity shares. Basic EPS is calculated by dividing the profit/loss before other comprehensive income/loss for the year attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit/loss before other comprehensive income/loss for the year attributable to equity shareholders and the weighted average number of equity shares outstanding for the effects of all dilutive potential equity shares.

2.21 Non-current assets (or disposal groups) held for sale and discontinued operations

a) Non-current assets (or disposal groups) are classified as held for sale if their carrying amount would be recovered principally through a sale/distribution rather than through continuing use and a sale/distribution is considered highly probable.

Actions required to complete the sale/distribution should indicate that it is unlikely that significant changes to the sale/ distribution would be made or that the decision to sell/distribute would be withdrawn. Management must be committed to sale/distribution expected within one year from the date of classification.

b) Immediately before the initial classification of the assets (and disposal groups) as held for sale, the carrying amount of the assets (or all the assets and liabilities in the disposal groups) are measured in accordance with their applicable accounting policy.

Non-current assets (or disposal groups) held for sale/for distribution to owners are subsequently measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits and financial assets which are specifically exempt from this requirement.

c) Non-current assets including those that are part of a disposal group (PPE and Intangible assets) once classified as held for sale/ distribution to owners are neither depreciated nor amortized. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognized.

d) Non-current assets (including assets of a disposal group) classified as held for sale are presented separately from the other assets in the Balance sheet. The liabilities of a disposal group classified as held for sale/ distribution are presented separately from other liabilities in the Balance sheet.

e) A disposal group qualifies as discontinued operation, if it is a component of equity that has either being disposed of or is classified as Held for sale, and that represents a separate major line of business or geographical area of operations, or is part of a single co-ordinate plan to dispose of a separate major line of business or geographical area of operations or is a subsidiary exclusively with a view to resale.

Discontinued operations are excluded from the results of continuing operations and are presented separately as a single amount as profit or loss after tax from discontinued operations in the Statement of Profit and Loss and comparative information is restated accordingly.

f) All notes to the financial statements mainly include amounts for continuing operations, unless stated otherwise.

2.22 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. Revenue and expenses are identified to segments on the basis of their relationship to the operating activities of the segment. Inter segment revenue are accounted for based on the cost price. Revenue, expenses, assets and liabilities which are not allocable to segments on a reasonable basis, are included under "Unallocated revenue/ expenses/ assets/ liabilities".

The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director who makes strategic decisions.

The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

2.23 Cash and cash equivalents

Cash and cash equivalents in the Balance sheet comprise cash on hand, cheques on hand, balance with banks on current accounts and debit balance of cash credit account if any and short term, highly liquid investments with an original maturity of three months or less and which carry insignificant risk of changes in value.

For the purpose of the Cash Flow Statement, Cash and cash equivalents consist of Cash and cash equivalents, as defined above and net of outstanding book overdrafts as they are considered an integral part of the Company''s cash management.

2.24 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/loss before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing flows. The cash flows from operating, investing and financing activities of the Company are segregated.

Note No. : 2A Key accounting judgment, estimates and assumptions

The preparation of the financial statements requires the use of accounting estimates, which, by definition would seldom equal the actual results. Management also needs to exercise judgment and make certain assumptions in applying the Company accounting policies and preparation of financial statements.

The use of such estimates, judgments and assumptions affects the reported amounts of revenue, expenses, assets and liabilities including the accompanying disclosures and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in the future periods.

Estimates and judgments are continually evaluated. They are based on historical experience and other factors including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

Estimates and Assumptions

The Company has based its assumptions and estimates on parameters available when the financial statement was prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are described below.

i) Depreciation and useful lives of property, plant and equipment: Property, plant and equipment are depreciated over the estimated useful lives of the assets, after taking into account their estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation to be recorded during any reporting period. The useful lives and residual values are based on the Company''s historical experience with similar assets and take into account anticipated technological changes. The depreciation for future periods is adjusted if there are significant changes from previous estimates.

ii) Income Tax: Management judgment is required for calculation of income tax and deferred tax assets and liabilities. Deferred tax assets are recognized for unused losses (carry forward of prior years'' losses) to the extent that it is probable that taxable profit would be available against which the losses could be utilized. The Company reviews at each balance sheet date the carrying amount of deferred tax. The factor used in estimate may differ from actual outcome which may lead to significant adjustment in the amounts in financial statement.

iii) Recoverability of trade receivable: Judgments are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

iv) Provisions for contingencies: Provisions are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability require the application of judgment to existing facts and circumstances, which can be subject to change. Since the cash outflows can take place many years in the future, the carrying amounts of provisions and liabilities are reviewed regularly and adjusted to take account of changing facts and circumstances.

v) Impairment of non-financial assets: The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or CGU''s fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transaction are taken into account, if no such transactions can be identified, an appropriate valuation model is used.

vi) Estimation of Defined benefit obligations: The Company''s obligation on account of gratuity and compensated absences is determined based on actuarial valuation.

An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each financial year end.

vii) Impairment of financial assets: The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on Company''s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

viii) Fair value measurement of financial instruments: When the fair value of the financial assets and liabilities recorded in the balance sheet cannot be measured based on the quoted market price in activate markets, their fair value is measured using valuation technique. The input to these models are taken from the observable market where possible, but if this is not feasible, a review of judgment is required in establishing fair values. Changes in assumption relating to this assumption could affect the fair value of financial instrument.

ix) Material uncertainty about going concern: In preparing financial statements, management has made an assessment of Company''s ability to continue as a going concern. Financial statements are prepared on a going concern basis. The Management is aware, in making its assessment, of material uncertainties related to events or conditions that may cast significant doubt upon the Company''s ability to continue as a going concern.

Recent pronouncements

Ministry of Corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards under

Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31,2024,

MCA has not notified any new standards or amendments.

I) Terms & Conditions of Secured Loans

1. Term Loan from Uttarakhand State Co-Operative Bank Limited

Term Loan from Uttarakhand State Co-Operative Bank Limited are secured by First charge on all movable assets forming part of fixed/block assets both present & future, and Joint Equitable Mortgage on company''s immovable properties situated at Village Libberheri, Roorkee, District Haridwar (Uttarakhand) on First Charge basis and also guaranteed by Managing Director of the company.

2. Term Loan from Zila Sahkari Bank Limited, Ghaziabad:-

a) For payment of cane price arrears of Sugar Season 2016-17 and 2017-18

Term Loans from Zila Sahkari Bank Limited, Ghaziabad for the sugar units of the company are secured on First charge basis on all movable assets forming part of fixed/block assets, both present & future and Joint Equitable Mortgage on company''s immovable properties of respective units situated at Village Shermau, Village Khaikheri and Village Barkatpur for which credit facility is availed and also guaranteed by Managing Director of the company.

b) Term Loan for Incineration Boiler installation at Barkatpur Unit

Term Loan from Zila Sahkari Bank Limited, Ghaziabad for installation of Incineration Boiler at Barkatpur Unit is secured by way of first charge basis on all Fixed assets of the sugar factory at Barkatpur Unit of the Company, both present & future on pari-passu basis, including Incineration Boiler financed by them and also guaranteed by Managing Director of the company.

c) Term Loan for installation of Distillery at Barkatpur Unit

Term Loan from Zila Sahkari Bank Limited, Ghaziabad for expansion of Distillery unit at Barkatpur is secured by way of exclusive first charge on fixed assets of the company financed by the Bank and also by first charge on all other fixed assets situated at Barkatpur Unit of the company on pari-passu basis and also guaranteed by Managing Director of the company.

3. Term Loan from Punjab National Bank

a) First Parri passu charge by way of mortagae of factory land and building of the company at Libberheri, Barkatpur, Kahikheri and Shermau.

b) Term loan from Punjab National Bank is secured by first pari passu charge by way of Hypothecation of other fixed assets (inclusive of all movables, plant and machinery) both present and future of the borrower ( excluding specific charge) shared with other term lender/soft loan lenders on parri-passu basis.

c) Third Charge on current assets of the company (except stock pledged) both present and future.

d) Term loan from Punjab National Bank is also guaranteed by Managing Director of the company and corporate guarantee of Uttam Adlakha & Sons Holding Private Limited.

4. Vehicle loans

Vehicle loans from Punjab National Bank/ Non-Banking Finance Company are secured by way of hypothecation of vehicle financed by them.

II) Terms & Conditions of Unsecured Loans

Unsecured Loans from Related parties shall be repayable after a period of three years. Simple interest @ 10% will be accrued annually on 31^st March every year but is payable on maturity or date of repayment of loan, whichever is earlier.

1. Non-Fund Based Working Capital Limits from Punjab National Bank

a) Non-Fund Based Working Capital Limits from Punjab National Bank are secured/to be secured by first pari passu charges by hypothecation of stocks of raw materials, sugar, molasses, other stores and spares and book debts/receivables of the Company both present and future and third pari passu charge on movable and immovable assets of the Company.

b) Non-Fund Based Working Capital Limit is also guaranteed by Managing Director of the company and corporate guarantee of Uttam Adlakha & Sons Holdings Private Limited.

2. Working Capital Demand Loan/RDL (WHR) from State Bank of India

Working Capital Demand Loan/RDL from State Bank of India is secured by Exclusive Charge by way of pledge of stocks kept under commodity backed warehouse receipt finance scheme of SBI and also guaranteed by Managing Director of the company and Corporate Guarantee of Uttam Adlakha and Sons Holding Pvt. Limited.

3. Cash Credit (Pledge) Limit from Punjab National Bank

a) Cash Credit (Pledge) Limit from Punjab National Bank is secured by way of pledge of stocks of sugar at Libberheri, Barkatpur, Khaikheri and Shermau units of the company.

b) Cash Credit (Pledge) Limit from Punjab National Bank is also guaranteed by Managing Director of the company and corporate guarantee of Uttam Adlakha & Sons Holdings Private Limited.

c) Cash Credit (Pledge) Limit from Punjab National Bank is secured/to be secured on the third pari passu charge on immovable assets of the Company.

4. Cash Credit facility from Uttarakhand State Co-Operative Bank Limited

Cash Credit facility from Uttarakhand State Co-Operative Bank Limited is secured by Pledge of sugar stocks of Libberheri unit of the company and Hypothecation of Molasses stock of Libberheri Factory of the Company. The Cash Credit Facility is also secured by Residual charge on immovable and movable assets of the Libberheri Factory of the Company.

5. Cash Credit facility from District Co-operative Bank Ltd. Muzaffarnagar

Cash Credit facility from District Co-operative Bank Ltd. Muzaffarnagar is secured by Pledge of stocks of sugar at Khaikheri Sugar Factory of the Company. The Cash Credit Facility is also secured by Residual charge on immovable and movable properties of the Khaikheri Sugar factory of the Company.

6. Cash Credit facility from Zila Sahkari Bank Limited, Ghaziabad

a) Cash Credit facility for Khaikheri Unit

Cash Credit facility from Zila Sahkari Bank Limited Ghaziabad is secured by pledge of stocks of sugar at Khaikheri Sugar Factory of the Company. The Cash Credit Facility is also secured by Residual charge on immovable and movable properties of the Khaikheri Sugar factory of the Company.

b) Cash Credit facility for Shermau Unit

Cash Credit facility from Zila Sahkari Bank Limited Ghaziabad is secured by pledge of stocks of sugar at Shermau Sugar Factory of the Company. The Cash Credit Facility is also secured by Residual charge on immovable and movable properties of the Shermau Sugar factory of the Company.

7. Cash Credit facility from District Co-operative Bank Ltd. Saharanpur (since fully repaid during the year) for Shermau Unit

Cash Credit facility from District Co-operative Bank Ltd. Saharanpur was secured by pledge of stocks of sugar at Shermau Sugar factory of the Company. The Cash Credit facility was also secured by Residual charge on immovable and movable properties of the Shermau Sugar factory of the Company. This facility was also guaranteed by Managing Director of the company.

8. Cash Credit facility from Indusind Bank Limited

Cash Credit facility from Indusind Bank Limited is secured by Exclusive charge by way of pledge of stocks as per the warehouse receipt. The Cash Credit facility is also guaranteed by Managing Director and corporate guarantee of Uttam Adlakha & Sons Holdings Private Limited.

9. Cash Credit facility from Axis Bank Limited

Cash Credit facility from Axis Bank Limited is secured by Pledge of Warehouse Receipts and Storage Receipts. The Cash Credit facility is also guaranteed by Managing Director of the company.

10. Terms & Condition of unsecured loan from Uttarakhand State Government

Financial Assistance from Uttarakhand State Government amounting to ''656.68 lakhs and interest accrued & due thereon of ''503.63 lakhs was repayable in three years in quarterly installments w.e.f. January 2008 however the same continues to be unpaid. An application for waiver off such loan is pending with the Government of Uttarakhand.

q. The details of performance obligation in terms of Ind AS 115 - Revenue from contracts with customers are as follows:

Sugar:- The Sugar segment of the Company principally generates revenue from manufacturing and sale of sugar and its by-products and power. Domestic sales of sugar is made on ex-factory/delivery basis in terms agreed to wholesaler /institutional buyers/merchant exporters within the country. Domestic sugar sales are majorly done on advance payment terms. Export sales of sugar to merchant exporters are done on ex-factory /delivered basis in terms of the agreement and revenue is recognized when the goods have been shipped to / delivered to the buyers'' specific location. The sale price and payment terms is fixed as per contracted terms.

Power is supplied to distribution companies from the Company''s facilities in accordance with the sale price, payment terms and other conditions as per the Power Purchase Agreements ("PPA”).

Bagasse are sold generally on advance payment terms on ex-factory basis as per the terms of the agreement and revenue is recognized when the goods have been shipped to / delivered to the buyer.

The distillery segment of the Company principally generates revenue from sale of industrial alcohol which mainly constitutes ethanol sold under contracts with Public and Private Oil Marketing Companies and other products to institutional buyers.

For sale of Ethanol, sale price is pre-determined based on Expression of Interest /Tender floated from Oil Marketing Companies. The prices are on delivered cost basis at Oil Marketing Companies locations inclusive of all duties/levies/taxes/charges etc. Payment terms is within 21 days after delivery of material and submission of original invoices.

Rectified Spirit, Extra Neutral Alcohol (ENA), etc. are sold on bulk basis to institutional buyers on ex-factory basis as per agreed terms. Revenue is recognized when goods have been shipped to the buyers'' specific location as per agreed terms. The payment terms are fixed as per Company''s policy which are generally on advance payment basis.

Note No. 35 : Financial Risk Framework

The Company''s financial liabilities comprise borrowings, capital creditors and trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets include Loans, trade and other receivables, cash and cash equivalents. The Company is exposed to market risk, credit risk and liquidity risk.

The Company''s senior management overseas the management of these risks. The Company''s senior management provides assurance that the company''s financial risks activities are governed by appropriate policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below:

A. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market price. Market risk comprises three types of risk interest rate risk, currency risk and other risks, such as regulatory risk and commodity price risk. i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company''s exposure to the risk of changes in market interest rates relates primarily to the company''s borrowing obligations with floating interest rates.

ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates, the company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Direct exports made by the company which are made during the year however same is very negligible as compare to total turnover.

Sensitivity

1% increase or decrease in foreign exchange rates will have no material impact on profit.

iii) Other risk

a) Regulatory risk

Sugar industry is regulated both by central government as well as by the state government, Central and state governments policies and factors such as State Advised Price (SAP) and fair and Remunerative Price (FRP) of sugar cane affects the sugar industry and the company''s operations and profitability. Distillery business is also dependent on the Government policy as the price of ethanol decided by the Government. Similarly sugar prices are also effected by the Government Policies like restriction on sale, import of sugar by way of allocation of monthly Quota, export of sugar and import duty / export duty determination of sugar and MSP of sugar.

The regulatory risks listed above are Government policy driven and are beyond the control of the company and can''t be alleviated unless the industry is decontrolled. Various representation through the body of industry like ISMA, UPSMA and UPDA submitted to Government to come out solutions regarding above risks.

Power business is also dependent on the regulations prescribed by Central/State regulatory commissions. They fix power purchase rates and other guide lines for supply based on cost of bagasse and other inputs.

b) Commodity price risk

Sugar Prices in domestic and international markets depends primarily on the supply and demand situation. Fluctuation in demand and supply arise on account of the change in the availability and price of sugar variation in the production capacity of the competitor''s availability of substitutes for the sugar products and international demand and supply position. The company has mitigated this risk by adding more value added products by diversifying into co- generation and distillation, thereby utilizing the by- products. Similarly, in sugar product also the company''s products are diversifying in specialty sugar segments like brown sugar, sachet, pharma sugar, icing sugar, liquid sugar etc.

B. Credit Risk

Credit risk is the risk that counter party will default on its obligations under a Contractual arrangement leading to a financial loss. The company''s sugar sales are mostly on advance payment basis. Power and ethanol are sold to state government companies and petroleum companies; thereby the credit default risk is significantly mitigated. Company has also taken advances and security deposits from its customers / agents, which mitigate the credit risk to an extent Financial assets are written off when there is no reasonable expectation of recovery, however, the company continues to attempt to recover the receivables. Where recoveries are made, these are recognized in the statement of profit and loss.

Balances with Banks - Other Financial Assets

Credit risk from balances with banks is managed in accordance with Company''s policy. 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. Generally, term deposits are maintained with banks with which Company has also availed borrowings.

The Company''s maximum exposure to credit risk for the components of the balance sheet as at 31^st March, 2024 and 31^st March, 2023 is the carrying amounts as stated under Note No. 10.

C. Liquidity risk

i. Liquidity Risk Management

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 Company''s objective is to maintain optimum levels of liquidity to meet its cash and its collateral requirements. The company''s Management is responsible for liquidity funding as well as settlement. Management monitors the company''s net liquidity position through rolling forecast on the basis of expected cash flows.

Note No. 36 : Capital Management a) Risk Management

For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholder of the Company. The Primary objective of capital management is to maximize shareholder value and also to maintain an optimum capital structure and to safeguard its ability to continue at a going concern.

The Company''s Capital management objectives are to maintain equity including all reserve to protect economic viability and to finance any growth opportunities that may be available in future so as to maximize shareholder value.

The Company manages its capital structure and makes adjustments in the amount of dividends return on capital to shareholders issue new shares or sell assets to reduce debts.

b) Loan Covenants:

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest bearing loans and borrowing that define capital structure requirements. The company has compiled with these covenants and there have been no breaches in the financial covenants of any interest - bearing loans and borrowings.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31^st March 2024 and 31^st March, 2023.

Note No. 37: Other disclosures

a. The Company has utilized the borrowings from banks for the specific purpose for which they were taken from banks.

b. The Company has during the year sanctioned working capital limits in excess of ''5 crore, in aggregate, from banks on the basis of pledge of sugar stocks, the quarterly returns or statement filed by the company they are in agreement to books of account except value of inventory of pledged sugar provided to bank which is valued in accordance with terms and condition of sanction letter at average Net realizable value whereas in the books of account same has been in considered at lower of Cost or Net realizable value in accordance with the Indian Accounting Standard.

h. The Company has not traded or invested in any crypto currency or virtual currency during the year and previous year.

i. The Company have 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:- 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

- Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

j. The Company have not received any fund from any other person(s) or entity (ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the group shall:- 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

- Provide any guarantees, security or the like on behalf of the ultimate beneficiaries.

k. The Company does not have any transaction not recorded on books of accounts that has been surrendered or disclosed as income during the year and previous year in the tax assessments under the income Tax Act, 1961.

l. Audit trail features (Edit log), as mandated by the Companies (Accounts) Rules, 2014 (as amended) with effect from April 01, 2023, has been enabled in the accounting software used by the company. The Company also a set up practices for daily backup of the entire database and applications in remote locations.

Note No. 39 :

The previous year figures have been reworked, regrouped, rearranged and reclassified wherever necessary. The figures are rounded off to nearest rupee in lakhs up to two decimals.

AS PER OUR REPORT OF EVEN DATE for and on behalf of Board of Directors

Firm Registration No. 00852C For B. K. Kapur & Co.

Chartered Accountants (RAJ KUMAR ADLAKHA) (SHANKAR LAL SHARMA)

Managing Director Executive Director

(M.S.KAPUR) FCA DIN 00133256 DIN 09018381

Partner

Membership No. 074615

(SANJAY BHANDARI) (RAJESH GARG)

Chief Financial Officer Co. Secretary &

Place : Noida Compliance Officer

Date : 6^th MAY, 2024

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Mar 31, 2023

2.14 Provisions, contingent liabilities and contingent assets.

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at current pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability when discounting is used, the increase in the passage of time is recognized as finance costs.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an out flow of recourses will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is liability that can''t be recognized because it can''t be measured reliably.

A contingent liability is not recognized in the financial statements, but discloses its existence in the Financial Statement.

When the realization of income is virtually certain, then the related asset is no longer a contingent asset, and is recognized as an asset.

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

2.15 Dividend payable

Final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividend are recorded as a liability on the date of declaration by the Company''s Board of Directors. A corresponding amount is recognized directly in equity.

2.16 Foreign currency transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Monetary items denominated in foreign currencies at the year ended translated at the year ended rates which is likely to be realized from, or required to disburse at the balance sheet date. Exchange differences arising on settlement of monetary items at rates different from those at which they were initially recorded / reported in financial statements are recognized as income or expense in the year in which they arise.

Non-monetary items which are carried at historical cost denominated in a foreign currency are translated using the exchange rate at the date of the initial transaction.

2.17 Employee benefits

a) Short -term employee benefits are recognized as an expense at the undiscounted amount in the Statement Profit & Loss Account of the period in which the related service is rendered.

b) Long-term employee benefits are recognized as an expense in the Statement Profit & Loss Account for the year in which the employee has rendered services.

Defined Benefit Plans

The Company''s liabilities on account of gratuity and earned leaves on retirement of employees are determined at the end of each financial year on the basis of actuarial valuation certificates obtained from registered actuary in accordance with the measurement procedure as per Indian Accounting Standard (INDAS)-19-''Employee Benefits''.

i. Compensated absences

Accumulated leave, which is expected to be utilized within next 12 months, is treated as short term employee benefit and this is shown under current provisions in the Balance Sheet. The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefits and shown under long term provisions in the Balance sheet.

ii. Gratuity

The Company provides for retirement benefits in the form of gratuity. The Company''s liability towards this benefit is determined on the basis of actuarial valuation using projected unit credit method at the date of Balance sheet. Actuarial gain and Losses in respect of such benefits are recognized in Other Comprehensive Income.

2.18 Financial instruments

A Financial instrument is any contract that gives rise to financial assets of one entity and a financial liability or equity instrument of another party.

A. Financial Assets

a. Initial recognition

The Company classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement. Financial instruments are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial instruments are recognized initially at fair value plus transactions costs that are directly attributable to the acquisition or issue of the financial instrument, except for financial assets at fair value through statement of profit and loss, which are initially measured at fair value, excluding transaction costs (which is recognized in statement of profit and loss).

b. Subsequent measurement

i) Financial assets carried at amortized cost (AC)

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

ii) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

iii) Financial assets at fair value through statement of profit and loss (FVTPL)

Equity instruments

All equity investments in scope of Ind AS 109 are measured at fair value either as at FVTOCI or FVTPL. The Company makes such election on instrument-by-instrument basis. For equity instruments measured as at FVIOCI, all fair value changes on the instrument, excluding dividends, are recognized in the OCI. Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit & Loss account.

c. De-recognition

A Financial Assets (or where applicable, part of financial assets) is primarily derecognized when:

1. The contractual right to receive cash flows from the assets have expired or

2. The Company has transferred its right to receive cash flow from the financial assets and subsequently all the risks and rewards of ownership of the assets to third party.

d. Reclassification of financial assets

Company determines the classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities.

e. Impairment of financial assets

The Company recognized loss allowance using the expected credit loss (ECL) model for the financial assets which are not fair valued through Statement of Profit and loss. Loss allowance for trade receivable with no significant financing component is measured at an amount equal to life time ECL For all other financial assets, expected credit loss are measured at an amount equal to the twelve-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.

B. Financial liabilities

a. Initial recognition and measurement

All financial liabilities are recognized initially at fair value and in case of loans and borrowings and payables, net of directly attributable cost. The Company''s financial liabilities include trade and other payable, loans and borrowing including bank over drafts, financial guarantee contracts and derivative financial instruments. Fees of recurring nature are directly recognized in statement of profit and loss as finance cost.

b. Subsequent measurement

Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

i) Loans and borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate (EIR) method. Gains and losses are recognized in statement of profit and loss when liabilities are de-recognized. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance cost in the statement of profit and loss.

ii) Compound financial instruments

At the issue date the fair value of the liability component of a compound instrument is estimated using the market interest rate for a similar non-convertible instrument. This amount is recorded as a liability at amortized cost using the effective interest method until extinguished upon conversion or at the instrument''s redemption date. The equity component is determined as the difference of the amount of the liability component from the fair value of the instrument. This is recognized in equity, net of income tax effects, and is not subsequently re-measured.

c. De-recognition of financial instruments

A financial liability is derecognized where the obligation under the liability is discharged or cancelled or expires where an existing financial liability is replaced by another from the same tender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of new liability. The difference in the respective carrying amounts is recognized in the statement of Profit and Loss.

d. Offsetting of financial instruments

Financial assets and financial liabilities including derivative instruments are offset and the net amount is reported in the Balance sheet, if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis or to realize the assets and settle the liabilities simultaneously.

e. Fair value measurement

Fair value is a market-based measurement, not an entity-specific measurement. Under Ind AS, fair valuation of financial instruments is guided by Ind AS 113 "Fair Value Measurement” (Ind AS - 113).

For some assets and liabilities, observable market transactions or market information might be available. For other assets and liabilities, observable market transactions and market information might not be available. However, the objective of a fair value measurement in both cases is the same to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions (i.e. an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability). Three widely used valuation techniques specified in the said Ind AS are the market approach, the cost approach and the income approach which have been dealt with separately in the said Ind AS.

Each of the valuation techniques stated as above proceeds on different fundamental assumptions, which have greater or lesser relevance, and at times there is no relevance of a particular methodology to a given situation. Thus, the methods to be adopted for a particular purpose must be judiciously chosen. The application of any particular method of valuation depends on the Company being evaluated, the nature of industry in which it operates, the Company''s intrinsic strengths and the purpose for which the valuation is made.

In determining the fair value of financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date.

The Company uses the following hierarchy 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 or indirectly.

Level 3 : Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs) f) Share capital

An equity instrument is a contract that evidences residual interest in the assets of the Company after deducting all of its liabilities. Incremental costs directly attributable to the issuance of new equity shares are recognized as a deduction from equity, net of any tax effects.

2.19 Impairment Non-financial assets

The carrying amount of any property, plant and equipment and intangible assets with finite lives are reviewed at each balance sheet date, if there is any indication of impairment based on internal /external factor. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. Recoverable amount is higher of an asset''s or cash generating unit''s net selling price and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets.

An impairment loss is charged to the Statement of Profit and loss in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount. At each balance sheet date, the Company assesses whether there is any indication that any property, plant and equipment and intangible assets with finite lives may be impaired. If any such impairment exists, the recoverable amount of an asset is estimated to determine the extent of impairment. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the impairment loss previously recognized is reversed such that the asset is recognized at its recoverable amount but not exceeding written down value which would have been reported if the impairment loss had not been recognized.

2.20 Taxes

Income tax expense comprises current tax and deferred tax and is recognized in the Statement of Profit and Loss except to the extent it relates to items directly recognized in Equity or in Other Comprehensive Income (OCI). Current tax

Provision for current tax is made with reference to taxable income computed for the accounting period for which the financial statements are prepared by applying the tax rates and laws that are enacted or substantively enacted at the balance sheet date. The tax is recognized in statement of profit and loss, except to the extent that it related to items recognized in the OCI or in other equity. In this case, the tax is also recognized in other comprehensive income and other equity.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis or to realize the assets and settle the liabilities simultaneously.

Deferred tax

Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in financial statements, except when the deferred tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the time of the transaction.

Deferred tax assets are recognized for deductible temporary differences, the carry forward of and any unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets to be recovered.

Unrecognized deferred tax assets are re-assessed at each balance sheet date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off deferred tax assets against deferred tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

2.21 Earnings per Share

The Company presents basic and diluted earnings per share ("EPS”) data for its equity shares. Basic EPS is calculated by dividing the profit/loss before other comprehensive income/loss for the year attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit/loss before other comprehensive income/loss for the year attributable to equity shareholders and the weighted average number of equity shares outstanding for the effects of all dilutive potential equity shares.

2.22 Non-current assets (or disposal groups) held for sale and discontinued operations

a) Non-current assets (or disposal groups) are classified as held for sale if their carrying amount would be recovered principally through a sale/distribution rather than through continuing use and a sale/distribution is considered highly probable.

Actions required to complete the sale/distribution should indicate that it is unlikely that significant changes to the sale/ distribution would be made or that the decision to sell/distribute would be withdrawn. Management must be committed to sale/distribution expected within one year from the date of classification.

b) Immediately before the initial classification of the assets (and disposal groups) as held for sale, the carrying amount of the assets (or all the assets and liabilities in the disposal groups) are measured in accordance with their applicable accounting policy.

Non-current assets (or disposal groups) held for sale/for distribution to owners are subsequently measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits and financial assets which are specifically exempt from this requirement.

c) Non-current assets including those that are part of a disposal group (PPE and Intangible assets) once classified as held for sale/ distribution to owners are neither depreciated nor amortized. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognized.

d) Non-current assets (including assets of a disposal group) classified as held for sale are presented separately from the other assets in the Balance sheet. The liabilities of a disposal group classified as held for sale/ distribution are presented separately from other liabilities in the Balance sheet.

e) A disposal group qualifies as discontinued operation, if it is a component of equity that has either being disposed of or is classified as Held for sale, and that represents a separate major line of business or geographical area of operations, or is part of a single co-ordinate plan to dispose of a separate major line of business or geographical area of operations or is a subsidiary exclusively with a view to resale.

Discontinued operations are excluded from the results of continuing operations and are presented separately as a single amount as profit or loss after tax from discontinued operations in the Statement of Profit and Loss and comparative information is restated accordingly.

f) All notes to the financial statements mainly include amounts for continuing operations, unless stated otherwise.

2.23 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. Revenue and expenses are identified to segments on the basis of their relationship to the operating activities of the segment. Inter segment revenue are accounted for based on the cost price. Revenue, expenses, assets and liabilities which are not allocable to segments on a reasonable basis, are included under "Unallocated revenue/ expenses/ assets/ liabilities".

The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director who makes strategic decisions.

The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

2.24 Cash and cash equivalents

Cash and cash equivalents in the Balance sheet comprise cash on hand, cheques on hand, balance with banks on current accounts and debit balance of cash credit account if any and short term, highly liquid investments with an original maturity of three months or less and which carry insignificant risk of changes in value.

For the purpose of the Cash Flow Statement, Cash and cash equivalents consist of Cash and cash equivalents, as defined above and net of outstanding book overdrafts as they are considered an integral part of the Company''s cash management.

2.25 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/loss before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing flows. The cash flows from operating, investing and financing activities of the Company are segregated.

Note No. : 3 Significant accounting judgment, estimates and assumptions

The preparation of the financial statements requires the use of accounting estimates, which, by definition would seldom equal the actual results. Management also needs to exercise judgment and make certain assumptions in applying the Company accounting policies and preparation of financial statements

The use of such estimates, judgments and assumptions affects the reported amounts of revenue, expenses, assets and liabilities including the accompanying disclosures and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in the future periods.

Estimates and judgments are continually evaluated. They are based on historical experience and other factors including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

Estimates and Assumptions

The Company has based its assumptions and estimates on parameters available when the financial statement was prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are described below.

i) Depreciation and useful lives of property, plant and equipment: Property, plant and equipment are depreciated over the estimated useful lives of the assets, after taking into account their estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation to be recorded during any reporting period. The useful lives and residual values are based on the Company''s historical experience with similar assets and take into account anticipated technological changes. The depreciation for future periods is adjusted if there are significant changes from previous estimates.

ii) Income Tax: Management judgment is required for calculation of income tax and deferred tax assets and liabilities. Deferred tax assets are recognized for unused losses (carry forward of prior years'' losses) to the extent that it is probable that taxable profit would be available against which the losses could be utilized. The Company reviews at each balance sheet date the carrying amount of deferred tax. The factor used in estimate may differ from actual outcome which may lead to significant adjustment in the amounts in financial statement.

iii) Recoverability of trade receivable: Judgments are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

iv) Provisions for contingencies: Provisions are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability require the application of judgment to existing facts and circumstances, which can be subject to change. Since the cash outflows can take place many years in the future, the carrying amounts of provisions and liabilities are reviewed regularly and adjusted to take account of changing facts and circumstances.

v) Impairment of non-financial assets: The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or CGU''s fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transaction are taken into account, if no such transactions can be identified, an appropriate valuation model is used.

vi) Estimation of Defined benefit obligations: The Company''s obligation on account of gratuity and compensated absences is determined based on actuarial valuation.

An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each financial year end.

vii) Impairment of financial assets: The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on Company''s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

viii) Fair value measurement of financial instruments: When the fair value of the financial assets and liabilities recorded in the balance sheet cannot be measured based on the quoted market price in activate markets, their fair value is measured using valuation technique. The input to these models are taken from the observable market where possible, but if this is not feasible, a review of judgment is required in establishing fair values. Changes in assumption relating to this assumption could affect the fair value of financial instrument.

ix) Material uncertainty about going concern: In preparing financial statements, management has made an assessment of Company''s ability to continue as a going concern. Financial statements are prepared on a going concern basis. The Management is aware, in making its assessment, of material uncertainties related to events or conditions that may cast significant doubt upon the Company''s ability to continue as a going concern.

Footnotes:-

(i) Equity component of compound financial instruments has been created at the time of adoption of Ind-AS on the outstanding balance of the redeemable preference shares with the Company. It shall be utilised in the manner prescribed under Ind-AS

(ii) Securities premium represented the amount received in excess of face value of shares on issue and will be utilised in accordance with the provisions of the Act

(iii) Capital redemption reserve is created consequent to redemption of preference shares. This reserve shall be utilised in accordance with the provisions of the Act

(iv) Retained earnings represents the undistributed profit / amount of accumulated earnings of the company.

(v) Other Comprehensive Income represents the balance in equity relating to re-measurement gain/(loss ) of defined benefit obligation.

I) Terms & Conditions of Secured Loans

1. Term Loan from Uttarakhand State Co-Operative Bank Limited

Term Loan from Uttarakhand State Co-Operative Bank Limited are secured by First charge on all movable assets forming part of fixed/block assets both present & future, and Joint Equitable Mortgage on company''s immovable properties situated at Village Libberheri, Roorkee, District Haridwar (Uttarakhand) on First Charge basis and also guaranteed by Managing Director of the company.

2. Term Loan from Zila Sahkari Bank Limited, Ghaziabad:-

a) For payment of cane price arrears of Sugar Season 2016-17 and 2017-18

Term Loans from Zila Sahkari Bank Limited, Ghaziabad for the sugar factories of the company are secured on First charge basis on all movable assets forming part of fixed/block assets, both present & future and Joint Equitable Mortgage on company''s immovable properties of respectively units situated at Village Shermau, Village Khaikheri and Village Barkatpur for which credit facility is availed and also guaranteed by Managing Director of the company.

b) Term Loan for Incineration Boiler installation at Barkatpur Unit

Term Loan from Zila Sahkari Bank Limited, Ghaziabad for installation of Incineration Boiler at Barkatpur factory is secured by way of first charge basis on all Fixed assets of the sugar factory at Barkatpur Unit of the Company, both present & future on pari-passu basis, including Incineration Boiler financed by them and also guaranteed by Managing Director of the company.

c) Term Loan for installation of Distillery at Barkatpur Unit

Term Loan from Zila Sahkari Bank Limited, Ghaziabad for expansion of Distillery unit at Barkatpur is secured by way of exclusive first charge on fixed assets of the company financed by the Bank and also by first charge on all other fixed assets situated at Barkatpur Unit of the company on pari-passu basis and also guaranteed by Managing Director of the company.

d) For off season expenses including repair and maintenance (since fully repaid during the year)

Term Loans from Zila Sahkari Bank Limited, Ghaziabad for the sugar factories of the company situated at Village Shermau, Village Khaikheri and Village Barkatpur, were secured by way of Residual charge on movable assets forming part of fixed/block assets, both present & future, and Joint Equitable Mortgage on company''s immovable properties to be created on the respective factories for which credit facility is availed and also guaranteed by Managing Director of the company.

3. CC Under Repayment from Banks(since fully repaid during the year)

i) CC Under repayment from Banks were secured on first pari passu charge by way of Joint Equitable Mortgage on Company''s immovable properties and first charge by way of hypothecation of all movable properties of the Company on pari passu basis.

ii) CC Under repayment from Banks were also secured by third pari-passu charge basis on whole of the current assets (stock, book debts etc.), both present and future.

iii) CC Under repayment from Banks were also secured by way of Pledge on pari-passu basis of 94,84,170 Equity Shares in the company held by Promoters of the Company viz. Mr. Raj Kumar Adlakha, Mr. Rajan Adlakha, Mr. Ranjan Adlakha, M/s Uttam Industrial Engineering Private Limited, M/s Uttam Sucrotech Limited and M/s Lipi Boilers Private Limited. (*)

iv) CC Under repayment from Banks were also guaranteed by Managing Director of the Company and two other promoters of the Company (viz. Mr. Rajan Adlakha & Mr. Ranjan Adlakha) and corporate guarantees of five Promoter / Group Companies (viz. Uttam Industrial Engineering Private Limited, Uttam Sucrotech Limited, Lipi Boilers Private Limited, Uttam Housinginfra Limited and Uttam Adlakha & Sons Holdings Private Limited).

v) CC Under Repayment from Banks were also secured by way of Joint Equitable Mortgage on the immovable properties situated at H-2, Kaushambi, Ghaziabad owned by a group company, M/s Uttam Housinginfra Limited.

(*) During the year lenders have released 9484170 equity shares of promoters.

4. Term Loan [COVID-19 Emergency Credit Facility (PNB-CECF)] (since fully repaid during the year) from Punjab National Bank

i) Term Loan PNB-CECF was also secured by pledge of warehouse receipt covering sugar stocks in possession of collateral managers appointed by bank.

ii) Term Loan PNB-CECF was secured on first pari passu charge over entire current assets of the Company (both present & future).

iii) Term Loan PNB-CECF was also secured on third Pari passu charge on entire Block of assets of the company.

iv) Term Loan PNB-CECF was also guaranteed by Managing Director of the company and two other promoters of the Company (viz. Mr. Rajan Adlakha & Mr. Ranjan Adlakha) and corporate guarantees of five Promoter / Group Companies (viz. Uttam Industrial Engineering Private Limited, Uttam Sucrotech Limited, Lipi Boilers Private Limited, Uttam Housinginfra Limited and Uttam Adlakha & Sons Holdings Private Limited).

5. Term Loan from Govt. of India, Sugar Development Fund through IFCI Ltd. (since fully repaid during the year)

Term Loan from Govt. of India, Sugar Development Fund through IFCI Ltd was secured by an exclusive second charge on movable assets (except book debts) and Company''s immovable properties.

6. Vehicle loans

Vehicle loans from Punjab National Bank/ Non-Banking Finance Company are secured by way of hypothecation of vehicle financed by them.

II) Terms & Conditions of Unsecured Loans

Unsecured Loans from Related parties shall be repayable after a period of three years. Simple interest @ 10% will be accrued annually on 31^st March every year but is payable on maturity or date of repayment of loan, whichever is earlier.

1. Non-Fund Based Working Capital Limits from Punjab National Bank (Working Capital Limits)

a) Non-Fund Based Working Capital Limits from Punjab National Bank are secured/to be secured by first pari passu charges by hypothecation of stocks of raw materials, sugar, molasses, other stores and spares and book debts/receivables of the Company both present and future and third pari passu charge on movable and immovable assets of the Company.

b) Non-Fund Based Working Capital Limit is also guaranteed by Managing Director of the company and corporate guarantee of Uttam Adlakha & Sons Holdings Private Limited.

2. Working Capital Demand Loan/RDL (WHR) from State Bank of India

Working Capital Demand Loan/RDL (WHR) from State Bank of India is secured by Exclusive Charge by way of pledge of sugar stocks kept under commodity backed warehouse receipt finance scheme of SBI and also guaranteed by Managing Director of the company and Corporate Guarantee of Uttam Adlakha and Sons Holding Pvt Limited.

3. Cash Credit (Pledge) Limit from Punjab National Bank

a) Cash Credit (Pledge) Limit from Punjab National Bank is secured by way of pledge of stocks of sugar at Libberheri, Shermau, Barkatpur and Khaikheri units of the company.

b) Cash Credit (Pledge) Limit from Punjab National Bank is also guaranteed by Managing Director of the company and corporate guarantee of Uttam Adlakha & Sons Holdings Private Limited.

c) Cash Credit (Pledge) Limit from Punjab National Bank is secured/to be secured on the third pari passu charge on immovable assets of the Company.

4. Cash Credit facility from Uttarakhand State Co-Operative Bank Limited

Cash Credit facility from Uttarakhand State Co-Operative Bank Limited is secured by pledge of stocks of sugar at Libberheri Sugar Factory of the Company. The Cash Credit Facility is also secured by residual charge on immovable and movable properties of the Libberheri Sugar Factory of the Company.

5. Cash Credit facility from District Co-operative Bank Ltd. Muzaffarnagar

Cash Credit facility from District Co-operative Bank Ltd. Muzaffarnagar is secured by Pledge of stocks of sugar at Khaikheri Sugar Factory of the Company. The Cash Credit Facility is also secured by residual charge on immovable and movable properties of the Khaikheri Sugar factory of the Company. This facility is also guaranteed by Managing Director of the company.

6. Cash Credit facility from Zila Sahkari Bank Limited, Ghaziabad

a) Cash Credit facility for Khaikheri Unit

Cash Credit facility from Zila Sahkari Bank Limited, Ghaziabad is secured by pledge of stocks of sugar at Khaikheri Sugar Factory of the Company. The Cash Credit Facility is also secured by residual charge on immovable and movable properties of the Khaikheri Sugar factory of the Company. This facility is also guaranteed by Managing Director of the company.

b) Cash Credit facility for Shermau Unit

Cash Credit facility from Zila Sahkari Bank Limited, Ghaziabad is secured by pledge of stocks of sugar at Shermau Sugar Factory of the Company. The Cash Credit Facility is also secured by Residual charge on immovable and movable properties of the Shermau Sugar factory of the Company. This facility is also guaranteed by Managing Director of the company.

7. Cash Credit facility from District Co-operative Bank Ltd. Saharanpur for Shermau Unit

Cash Credit facility from District Co-operative Bank Ltd. Saharanpur is secured by pledge of stocks of sugar at Shermau Sugar factory of the Company. The Cash Credit facility is also secured by residual charge on immovable and movable properties of the Shermau Sugar factory of the Company. This facility is also guaranteed by Managing Director of the company.

8. Cash Credit facility from Indusind Bank Limited

Cash Credit facility from Indusind Bank Limited is secured by Exclusive charge by way of pledge of stocks as per the warehouse receipt. The Cash Credit facility is also guaranteed by Managing Director and corporate guarantee of Uttam Adlakha & Sons Holdings Private Limited.

9. Cash Credit facility from Axis Bank Limited

Cash Credit facility from Axis Bank Limited is secured by Pledge of Warehouse Receipts and Storage Receipts. The Cash Credit facility is also guaranteed by Managing Director of the company.

10. Cash Credit facility from District Co-operative Bank Limited, Bulandshahr (since fully repaid during the year) for Shermau Unit

Cash Credit facility from Zila Sahkari Bank Limited, Bulandshahr was secured by pledge of stocks of sugar at Shermau Sugar Factory of the Company. The Cash Credit facility was also secured by Residual charge on immovable and movable properties of the Shermau Sugar factory of the Company. This facility was also guaranteed by Managing Director of the company.

11. Cash Credit facility from Zila Sahkari Bank Limited, Bijnor (since fully repaid during the year) for Barkatpur Unit

Cash Credit facility from Zila Sahkari Bank Limited, Bijnor was secured by Pledge of stocks of sugar at Barkatpur Sugar factory of the Company. This facility was also guaranteed by Managing Director of the company.

12. Terms & Condition of unsecured loan from Uttarakhand State Government

Financial Assistance from Uttarakhand State Government amounting to ''656.68 lakhs and interest accrued & due thereon of '' 477.37 lakhs was repayable in three years in quarterly installments w.e.f. January 2008 however the same continues to be unpaid. An application for waiver off such loan is pending with the Government of Uttarakhand.

b. All the Current assets, loans and advances, in the opinion of the Board, have a value on realization which in the ordinary course of business shall at least be equal to the amount at which it is stated in the balance sheet.

c. The Company has made an investment of the requisite amount for setting up new projects in the State of Uttar Pradesh in accordance with the UP Sugar Industry Promotion Policy,2004 and has accordingly filed application for eligibility under the above policy. However, the State Government has later on terminated the Policy with effect from June 4, 2007. The Company had filed writ petition before Hon''ble Allahabad high court (Lucknow Bench) for enforcement of the scheme and settlement of incentive claims.

The writ petitions were allowed vide common Judgment dated 12.02.2019 of Hon''ble Allahabad High court (Lucknow Bench) that the petitioners are entitled for consideration of all the benefits in the form of exemptions/ remission/ reimbursements as per the Sugar Industry Promotion Policy - 2004 and various notifications issued thereunder from time to time for the entire period of the validity of the Policy. As per Hon''ble court, Since the matter has become quite old it will be appropriate that the cases may be examined and benefits may be given within a maximum period of two months from the date of order.

However, the State Government has challenged the order of the Hon''ble Allahabad High court (Lucknow Bench) in Supreme Court where their petition has been admitted, and now the matter is pending with Supreme Court. However, The Company have submitted the claim on 4th September 2020 with Cane Commissioner of Uttar Pradesh (Appropriate Authority) for an amount of ''3847 lakhs as Capital Subsidy and for remission / exemption / reimbursement of taxes, duties and other charges aggregating of ''5489 lakhs. The claim will be accounted for when it will be approved by the appropriate authority.

d. During the year ended March 31, 2023 an amount to '' NIL lakhs (previous year '' 829.11 Lakhs) has been recognized as financial assistance in Revenue from operations pertaining to export made under Maximum Admissible Export Quota (MAEQ) allotted to the company as per the notification no.1(6)/2020-SP-1 dated 29.12.2020 issued by Ministry of Consumer affairs and Food & Public Distribution for improving of liquidity position of sugar mills.

e. The Pradeshiya Industrial & Investment Corporation of Uttar Pradesh Limited (PICUP) had issued letter of comfort on 12.01.2020 for grant facilities / relief under Industrial Investment and Employment Promotion policy-2017

(IIEPP-2017) in respect which Company has accounted for and submitted claim of '' 108.75 lakhs on 19.02.2021 with PICUP which includes interest subsidy of ''92.69 lakhs and ''16.06 lakhs for GST/VAT refund. The matter is under process with PICUP for final disposal.

f. Company has installed a 50 KLPD Ethanol distillery plant at its unit at Libberheri, Tehsil Roorkee, Uttarakhand in F.Y. 2021 - 22 and applied for capital subsidy of ''500 lakhs under the scheme of Ministry of Commerce and Industry Industrial Development scheme for Himachal Pradesh & Uttarakhand, 2017, the same will be accounted for after getting approval and letter of comfort. The matter is pending with DIPP, Government of India.

g. The code on Social security,2020 (code) relating to employee benefits during employment and post-employment benefits received Presidential assents in September 2020. The code has been published in the Gazette of India. The code would impact the contributions by the Company towards provident fund and Gratuity. However, the date on which code will come into effect has not been notified. The Company will complete its evaluation and will give appropriate impact in the financial statements in the period in which, the code becomes effective and the related rules to determine the financial impact are published.

h. Regulatory fee @ ''20 per quintal of molasses sales / inter-unit transfers imposed by the State Government of Uttar Pradesh w.e.f. 24th December, 2021 has been accounted for. However, the company has contested the same and the matter is pending with Hon''ble Allahabad High Court.

i. Uttar Pradesh Electricity Regulatory Commission vide notification dated 25th July, 2019 reduced the power purchase rates of bagasse-based power plants w.e.f. 1st April, 2019 and revenue in this respect has accordingly been recognized at such reduced rates. The Uttar Pradesh Cogen Association has filed a writ petition, challenging the reduction in power rates before Hon''ble High Court at Allahabad which has been admitted.

j. a. The Board of Directors has proposed a dividend on 6.50% Redeemable Preference shares and on 10%

Redeemable Preference shares and ''2.50/-per equity share of '' 10/- each, for the year ended 31st March, 2023, which are subject to approval of Shareholders at the ensuing Annual General Meeting of the Company. b. During the year the Board of Directors has distributed a dividend for the year ended 31.03.2022 on 6.50% Redeemable Preference shares and on 10% Redeemable Preference shares aggregating of '' 174.27 Lakhs and '' 2/- per equity share of '' 10/- each of '' 762.76 Lakhs, after approval of Shareholders at the Annual General Meeting of the Company. Total cash outflow is '' 932.18 Lakhs. '' 4.85 Lakhs is unpaid dividend as on date of Balance Sheet. (Refer Note No. 10 & 17)

k. Lease

a. The Company''s lease assets primarily consist of building for offices having the various lease terms. The Company also has certain leases of with lease terms of 12 months or less. Such lease applies the ''short term lease'' recognition exemptions for those leases.

Note: There are no non-current assets located outside India

Information about major customers: No single customer contributed 10% or more of the total revenue of the Company for the year ended 31^st March, 2023 and 31^st March, 2022.

q. The details of performance obligation in terms of Ind AS 115 - Revenue from contracts with customers are as follows:

Sugar:- The Sugar segment of the Company principally generates revenue from manufacturing and sale of sugar and its by-products and power. Domestic sales of sugar is made on ex-factory/delivery basis in terms agreed to wholesaler /institutional buyers/merchant exporters within the country. Domestic sugar sales are majorly done on advance payment terms. Export sales of sugar to merchant exporters are done on ex-factory /delivered basis in terms of the agreement and revenue is recognized when the goods have been shipped to / delivered to the buyers'' specific location. The sale price and payment terms is fixed as per contracted terms.

Power is supplied to distribution companies from the Company''s facilities in accordance with the sale price, payment terms and other conditions as per the Power Purchase Agreements ("PPA”).

Bagasse are sold generally on advance payment terms on ex-factory basis as per the terms of the agreement and revenue is recognized when the goods have been shipped to / delivered to the buyer.

The distillery segment of the Company principally generates revenue from sale of industrial alcohol which mainly constitutes ethanol sold under contracts with Public and Private Oil Marketing Companies and other products to institutional buyers.

For sale of Ethanol, sale price is pre-determined based on Expression of Interest /Tender floated from Oil Marketing Companies. The prices are on delivered cost basis at Oil Marketing Companies locations inclusive of all duties/levies/taxes/charges etc. Payment terms is within 21 days after delivery of material and submission of original invoices.

Rectified Spirit, Extra Neutral Alcohol (ENA), etc. are sold on bulk basis to institutional buyers on ex-factory basis as per agreed terms. Revenue is recognized when goods have been shipped to the buyers'' specific location as per agreed terms. The payment terms are fixed as per Company''s policy which are generally on advance payment basis.

The Company''s financial liabilities comprise borrowings, capital creditors and trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets include Loans, trade and other receivables, cash and cash equivalents. The Company is exposed to market risk, credit risk and liquidity risk.

The Company''s senior management overseas the management of these risks.The Company''s senior management provides assurance that the company''s financial risks activities are governed by appropriate policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below:

A. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market price. Market risk comprises three types of risk interest rate risk, currency risk and other risks, such as regulatory risk and commodity price risk.

ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates, the company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Direct exports made by the company which are made during the year however same is very negligible as compare to total turnover.

Sensitivity

1% increase or decrease in foreign exchange rates will have no material impact on profit.

iii) Other risk

a) Regulatory risk

Sugar industry is regulated both by central government as well as by the state government, Central and state governments policies and factors such as State Advised Price (SAP) and fair and Remunerative Price (FRP) of sugar cane affects the sugar industry and the company''s operations and profitability. Distillery business is also dependent on the Government policy as the price of ethanol decided by the Government. Similarly sugar prices are also effected by the Government Policies like restriction on sale, import of sugar by way of allocation of monthly Quota, export of sugar and import duty / export duty determination of sugar and MSP of sugar.

The regulatory risks listed above are Government policy driven and are beyond the control of the company and can''t be alleviated unless the industry is decontrolled. Various representation through the body of industry like ISMA, UPSMA and UPDA submitted to Government to come out solutions regarding above risks.

Power business is also dependent on the regulations prescribed by Central/State regulatory commissions. They fix power purchase rates and other guide lines for supply based on cost of bagasse and other inputs.

b) Commodity price risk

Sugar Prices in domestic and international markets depends primarily on the supply and demand situation. Fluctuation in demand and supply arise on account of the change in the availability and price of sugar variation in the production capacity of the competitor''s availability of substitutes for the sugar products and international demand and supply position The company has mitigated this risk by adding more value added products by diversifying into co- generation and distillation, thereby utilizing the by- products. Similarly, in sugar product also the company''s products are diversifying in specialty sugar segments like brown sugar, sachet, pharma sugar, icing sugar, liquid sugar etc.

B. Credit Risk

Credit risk is the risk that counter party will default on its obligations under a Contractual arrangement leading to a financial loss. The company''s sugar sales are mostly on advance payment basis. Power and ethanol are sold to state government companies and petroleum companies; thereby the credit default risk is significantly mitigated. Company has also taken advances and security deposits from its customers / agents, which mitigate the credit risk to an extent Financial assets are written off when there is no reasonable expectation of recovery, however, the company continues to attempt to recover the receivables. Where recoveries are made, these are recognized in the statement of profit and loss.

Credit risk from balances with banks is managed in accordance with Company''s policy. 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. Generally, term deposits are maintained with banks with which Company has also availed borrowings.

The Company''s maximum exposure to credit risk for the components of the balance sheet as at 31^st March, 2023 and 31^st March, 2022 is the carrying amounts as stated under Note No. 10

C. Liquidity risk

i. Liquidity Risk Management

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 Company''s objective is to maintain optimum levels of liquidity to meet its cash and its collateral requirements. The company''s Management is responsible for liquidity funding as well as settlement. Management monitors the company''s net liquidity position through rolling forecast on the basis of expected cash flows.

Note No. 36 : Capital Management a) Risk Management

For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholder of the Company. The Primary objective of capital management is to maximize shareholder value and also to maintain an optimum capital structure and to safeguard its ability to continue at a going concern.

The Company''s Capital management objectives are to maintain equity including all reserve to protect economic viability and to finance any growth opportunities that may be available in future so as to maximize shareholder value.

b) Loan Covenants:

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest bearing loans and borrowing that define capital structure requirements. The company has compiled with these covenants and there have been no breaches in the financial covenants of any interest - bearing loans and borrowings.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31^st March 2023 and 31^st March, 2022.

Note No. 37:

Other disclosures

a. The Company has utilized the borrowings from banks for the specific purpose for which they were taken from banks.

d. The Company has not been declared willful defaulter by bank or financial institution or any other lender.

e. The company does not have any transactions or balances with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during the year and previous year.

f. During the year, there are no instances of any registration, modification or satisfaction of charges which are pending for registration with Registrar of Companies beyond

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Mar 31, 2018

Notes to Account

1. SEFASU Term Loan, Soft Loan & CC Under Repayment (except term loan from Co-Operative Banks):

i. Term Loans and CC under repayment from Banks are secured on first pari passu charge by way of Joint Equitable Mortgage on Company''s immovable properties and first charge byway of hypothecation of all movable properties of the Company on pari passu basis, subject to prior charge created /to be created in favour of Company''s Bankers (except Co-operative bank loan) for securing borrowings for working capital requirements of the Company.

ii. Term Loans and CC under repayment from Banks are also secured by third pari-passu charge basis on whole of the current assets (stock, book debts etc.), both present and future.

iii. Term Loans and CC under repayment from Banks are also secured by way of Pledge on pari-passu basis of 34,84,170 Equity Shares in the company held by individual Promoters of the Company viz. M/s. Raj Kumar Adlakha, Rajan Adlakha and Ranjan Adlakha.

iv. Term Loans and CC under repayment from Banks are also guaranteed by Managing Director and two other promoters of the Company (viz. Mr. Rajan Adlakha & Mr. Ranjan Adlakha) and corporate guarantees of three Promoter Companies (viz. Uttam Industrial Engineering Private Limited, Uttam Sucrotech Limited and Lipi Boilers Private Limited).

v. CC Under Repayment is additionally secured by :

• Pledge on pari-passu basis of 60,00,000 Equity Shares held by three promoter companies viz. M/s Uttam Industrial Engineering Pvt. Limited, M/s Uttam Sucrotech Limited and M/s Lipi Boilers Private Limited.

• Joint Equitable Mortgage on the immovable properties situated at H-2, Kaushambi, Ghaziabad owned by a group company, M/s Uttam Housinginfra Limited.

• Corporate Guarantee by two group Companies viz. M/s Uttam Adlakha & Sons Holdings Private Limited and M/s Uttam Housinginfra Limited.

vi. Soft Loan is additionally secured by :

• Joint Equitable Mortgage on the immovable properties situated at H-2, Kaushambi, Ghaziabad owned by a group

company, M/s Uttam Housinginfra Limited.

• Corporate Guarantee by a group Company viz M/s Uttam Housinginfra Limited.

Notes on Financial Statements for the Year Ended 31st March 2018

2. Term Loan from Govt. of India, Sugar Development Fund through IFCI Ltd.:

Term Loan from Govt. of India, Sugar Development Fund through IFCI Ltd is secured by an exclusive second charge on movable assets (except book debts) and Company''s immovable properties.

3. Term Loan from Uttarakhand State Co-Operative Bank Limited:

Term Loan from Uttarakhand State Co-Operative Bank Limited is secured by Residual charge on all movable assets forming part of fixed/block assets both present & future, and Joint Equitable Mortgage on company''s immovable properties situated at Village Libberheri, Roorkee, District Haridwar (Uttarakhand) on Residual Charge basis, and also guaranteed by Managing Director.

4. Term Loan from Zila Sahkari Bank Limited, Ghaziabad:

Term Loan from Zila Sahkari Bank Limited, Ghaziabad is secured on Residual charge basis on movable assets forming part of fixed/block assets, both present & future, and Joint Equitable Mortgage on company''s immovable properties situated at Village Shermau, Tehsil Nakur, District Saharanpur (Uttar Pradesh) on Residual Charge basis, and also guaranteed by Managing Director.

5. Vehicle loans:

Vehicle loans from banks and Non-Banking finance company are secured by way of hypothecation of vehicle financed by them. Terms & Conditions of short term borrowings

1. Non-Fund Based Working Capital Limits from Punjab National Bank & State Bank of India (Working Capital Limits)

a) Working Capital Limits from Banks are secured/to be secured by first pari passu charges by hypothecation of stocks of raw materials, sugar, molasses, other stores and spares and book debts/receivables of the Company both present and future and third pari passu charge on immovable assets of the Company.

b) Working Capital Limits from Banks are also secured by way of Pledge on pari-passu basis of 34,84,170 Equity Shares in the company held by individual Promoters of the Company viz. Mr. Raj Kumar Adlakha, Rajan Adlakha and Ranjan Adlakha.

c) Working Capital Limits from Banks are also guaranteed by Managing Director and two other promoters of the Company (viz. Mr. Rajan Adlakha & Mr. Ranjan Adlakha) and corporate guarantees of three Promoter Companies (viz. Uttam Industrial Engineering Private Limited, Uttam Sucrotech Limited and Lipi Boilers Private Limited).

d) Non-Fund based Cash Credit Facilities from Punjab National Bank is additionally secured by :

• Pledge on pari-passu basis of 60,00,000 Equity Shares held in the Company, held by three promoter companies viz. Uttam Industrial Engineering Private Limited, Uttam Sucrotech Limited and Lipi Boilers Private Limited.

• Joint Equitable Mortgage on the immovable properties situated at H-2, Kaushambi, Ghaziabad owned by a group company, M/s Uttam Housinginfra Limited.

• Also Guaranteed by two group Companies viz. M/s Uttam Adlakha & Sons Holdings Private Limited and M/s Uttam Housinginfra Limited.

2. Cash Credit (Pledge) Limits from Punjab National Bank

a) Cash Credit (Pledge) Limits from Punjab National Bank is secured by way of pledge of warehouse receipt covering sugar stocks in possession of collateral managers appointed by bank.

b) Cash Credit (Pledge) Limits from Punjab National Bank is also guaranteed by Managing Director (Mr. Rajkumar Adlakha) and two other promoters of the Company (viz. Mr. Rajan Adlakha & Mr. Ranjan Adlakha) and corporate guarantees of five Promoter/Group Companies (viz. Uttam Industrial Engineering Private Limited, Uttam Sucrotech Limited, Lipi Boilers Private Limited, Uttam Adlakha & Sons Holdings Pvt. Ltd. & Uttam Housinginfra Limited).

c) Cash Credit (Pledge) Limits from Punjab National Bank is secured /to be secured on the third pari passu charge on immovable assets of the company.

d) Cash Credit (Pledge) Limit from Punjab National Bank is also secured by way of Pledge on pari-passu basis of 94,84,170 Equity Shares in the company held by Promoters of the Company viz. Mr. Raj Kumar Adlakha, Mr. Rajan Adlakha, Mr. Ranjan Adlakha, M/s Uttam Industrial Engineering Private Limited, M/s Uttam Sucrotech Limited and M/s Lipi Boilers Private Limited.

3. Working Capital Demand Loan (WCDL) from State Bank of India

a) Working Capital Demand Loan (WCDL) from State Bank of India is secured by way of pledge of warehouse receipt covering sugar stocks in possession of collateral managers appointed by bank.

b) Working Capital Demand Loan (WCDL) from State Bank of India is also guaranteed by Managing Director and two other promoters of the Company (viz. Mr. Rajan Adlakha & Mr. Ranjan Adlakha).

4. Term Loan (Repair & Maintenance) from Punjab National Bank

Term Loan from Punjab National Bank is secured on residual charge basis on fixed assets of the company, both present & future. The Loan is additionally secured by Joint Equitable Mortgage on the immovable properties situated at H-2, Kaushambi, Ghaziabad owned by a group company, M/s Uttam Housinginfra Limited.

5. Cash credit facility from Uttarakhand State Co-Operative Bank Limited

Cash credit facility from Uttarakhand State Co-Operative Bank Limited is secured by pledge of stocks of sugar at Libberheri Sugar Factory situated at Village Libberheri, Roorkee, District Haridwar.

6. Cash credit facility from Zila Sahkari Bank Limited, Ghaziabad

a. Cash Credit facility for Shermau Unit

Cash Credit facility for Shermau Unit from Zila Sahkari Bank Limited, Ghaziabad is secured by pledge of stocks of sugar at Shermau Sugar Factory situated at Village Shermau, Tehsil Nakur, District Saharanpur, Uttar Pradesh & also guaranteed by Managing Director of the Company.

b. Cash Credit facility for Barkatpur Unit

Cash Credit facility for Barkatpur Unit from Zila Sahkari Bank Limited, Ghaziabad is secured by pledge of stocks of sugar at Barkatpur Sugar Factory situated at Village Barkatpur, Tehsil Nazibabad, District Bijnor, Uttar Pradesh & also guaranteed by Managing Director of the Company.

7. Cash credit facility from Zila Sahkari Bank Limited, Bulandshahr

a. Cash Credit facility for Shermau Unit

Cash Credit facility for Shermau Unit from Zila Sahkari Bank Limited, Bulandshahr is secured by pledge of stocks of sugar at Shermau Sugar Factory situated at Village Shermau, Tehsil Nakur, District Saharanpur, Uttar Pradesh & also guaranteed by Managing Director of the Company.

b. Cash Credit facility for Barkatpur Unit:

Cash Credit facility for Barkatpur Unit from Zila Sahkari Bank Limited, Bulandshahr is secured by pledge of stocks of sugar at Barkatpur Sugar Factory situated at Village Barkatpur, Tehsil Nazibabad, District Bijnor, Uttar Pradesh & also guaranteed by Managing Director of the Company.

Terms & Conditions of Unsecured Loans

Unsecured Loans from related parties shall be repayable after eight years from the date of disbursement of Loan.

Interest will be accrued annually on 31st March every year but is payable on maturity or date of repayment of loan, whichever is earlier.

			(Rs. in Lakhs)
Particulars	As at 31st March, 2018	As at 31st March, 2017	As at 01st April, 2016
(B) Unsecured Loans
- Soft Loan from Uttarakhand State Government	656.68	656.68	656.68
Interest accrued but not due on borrowings	60.17	68.88	104.36
Interest accrued and due on borrowings	346.03	319.76	487.81
Security deposits	269.09	273.34	220.38
Due to directors	4.32	60.40	11.44
Due to scheduled bank (book overdraft)	882.33	227.52	505.57
Supplier''s credit balance against farmer crop loan (refer note no.34 d)	1,346.42	2,585.90	2,496.38
Other Liabilities	606.03	573.67	546.30
Total (ii)	12,846.39	13,021.87	12,737.16
Total (i ii)	17,043.99	16,786.54	16,113.55

Terms & conditions of Preference Shares capital reclassified due to adoption of Ind AS as financial Liabilities, is as under:-

Series-16.50% Non-Cumulative Redeemable Preference Shares

1. Rate of dividend on these Preference shares is 6.50%.

2. The Preference shares are Non-Cumulative with reference to the dividend.

3. The Preference shares shall be redeemed on the call of the Company on or after 1st April, 2023 but not later than 31st March, 2026 by giving 30 days notice.

4. The Preference shareholders will have no voting rights except as provided in the Companies Act, 2013. Series-2 10% Non-Cumulative Redeemable Preference Shares

1. Rate of dividend on these Preference shares is 10%.

2. The Preference shares are Non-Cumulative with reference to the dividend.

3. The Preference shares shall be redeemed on the call of the Company on or after 1st April, 2023 but not later than 31st March, 2026 by giving 30 days notice.

4. The Preference shareholders will have no voting rights except as provided in the Companies Act, 2013.

Terms & Conditions of Unsecured Loan from Uttarakhand State Government

Unsecured Soft Loan from Uttarakhand State Government amounting to Rs. 656.68 lacs and interest accrued & due thereon of Rs.346.03 lacs was repayable in three years in quarterly installments w.e.f. January 2008 however the same continues to unpaid. An application for waiver off such loan is pending with the Government of Uttarakhand.

Notes on Financial Statements for the Year Ended 31st March 2018 Note No.: 34

a. Based upon the information received from vendors regarding their status under the "Micro, Small and Medium Enterprises Development Act, 2006", the relevant Information is provided below:

(Rs. in Lakhs)

Particulars	Current Year	Previous Year
(a) Amount due to Micro, Small and Medium Enterprises as on
i) Principal amount	293.94	203.74
ii) Interest due on above	6.71	6.09
(b) i) Principal amount paid after due date or appointed day during the period	NIL	NIL
ii) Interest paid during the period on (i) above	NIL	NIL
(c) Interest due & payable (but not paid) on principal amounts paid during the period after the due date or appointed day	5.42	NIL
(d) Total interest accrued and remaining unpaid as on	12.80	6.09
(e) Further interest in respect of defaults of earlier years due and payable in current period up to the date when actually paid	NIL	NIL

b. All the Current assets, loans and advances, in the opinion of the Board, have a value on realization which in the ordinary course of business shall at least be equal to the amount at which it is stated in the balance sheet.

c. The Company has made an investment of the requisite amount for setting up new projects in the State of Uttar Pradesh in accordance with the UP Sugar Industry Promotion Policy, 2004 and has accordingly filed application for eligibility under the above policy. However, the State Government has later on terminated the Policy with effect from June 4, 2007 and based on that rejected the application. The Company had filed writ petition before Hon''ble Allahabad high court (Lucknow Bench) for enforcement of the scheme and settlement of incentive claims.

As per the erstwhile incentive policy, the Company claims to be eligible for capital subsidy of Rs. 3847 lakhs (10 % of total investment) and remission/exemption/ reimbursement of taxes, duties & other charges aggregating to Rs. 9277 lakhs, which will be accounted for in the year of final decision of Hon''ble court.

d. Supplier''s credit balance against farmers crop loan appearing under other financial liabilities (note no. 18) represent loan of Rs. 1346.42 lakhs (Previous year Rs. 2585.90 lakhs) from IDBI Bank Ltd to the cane growers under corporate tie up scheme for Crop loans, wherein the Company is acting as ''Business Facilitator'' and the same is backed by indemnity/guarantee of the Company and personal guarantee of the Managing director.

e. Exceptional item represents a sum of nil (Previous year Rs.452.01 lakhs) being society commission relating to sugar season 2015-2016 which was recoverable from the State Government of Uttar Pradesh vide order dated 05th February, 2016, has now been written off during the last year in pursuance of Government order dated 28th December, 2016.

f. For sugar season 2016-2017 financial assistance of Rs.2/- per quintal was granted vide Govt. of Uttarakhand Order No.02/XIV-2/2017/7(6)72013 T.C.-2016 Dtd 03.01.2017, the Company has accounted for an amount of Rs. 117.63 lakhs during the last year (note no. 6). The aforesaid financial assistance has been reduced from cane cost.

g. For sugar season 2015-2016 financial assistance of Rs. 23.30/- per quintal was granted vide Govt. of Uttarakhand Order No.XIV-2/2016/7(6)72013 Dated 08.02.2016, the Company has accounted for an amount of Rs. 914.72 lakhs during the last year. The aforesaid financial assistance has been accounted for Rs. 823.47 lakhs shown under other operating revenue (Note No. 25) & Rs. 91.25 lakhs has been reduced from cane cost.

h. Disclosure in respect of Operating Lease:

The Company has entered into non-cancelable Operating Lease for premises and vehicles and lease rent amounting to Rs.64.75 Lakhs (Previous year Rs. 93.65 Lakhs) have been charged to Statement of Profit & Loss. The future minimum lease payments are as under:-

---

Mar 31, 2016

a) Terms & Conditions of Equity Shares

1 The Company has one class of Equity Shares having a par value of Rs.10/- each.

2 Each Shareholder is eligible for one vote per shares held.

3 The Dividend, if any, proposed by the Board of Directors is subject to the approval of shareholders in the Annual General Meeting, except in the case of interim dividend.

4 In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholding.

b) Terms & Conditions of Preference Shares (Series - I)

1 Rate of Dividend on these Preference Shares is 6.5% p.a.

2 The Preference Shares are Cumulative with reference to the dividend.

3 The Preference Shares shall be redeemed after completion of 12 years but not later than 15 years from the date of allotment on the call of the Company

4 The Preference Shareholders will have no voting rights except as provided in the Companies Act, 2013 (Series - II)

1 Rate of Dividend on these Preference Shares is 10% p.a.

2 The Preference Shares are Cumulative with reference to the dividend.

3 The Preference Shares shall be redeemed after completion of 12 years but not later than 15 years from the date of allotment at a premium of Rs.100/-per Share on the call of the Company

4 The Preference Shareholders will have no voting rights except as provided in the Companies Act, 2013

c) There are Nil number of shares (Previous Year Nil) in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiary or associates of the holding company or the ultimate holding company in aggregate.

e) There are Nil number of shares (Previous Year Nil) reserved for issue under option and contracts/commitment for the sale of shares/disinvestment including the terms and amounts.

g) There are no securities (Previous Year no) convertible into Equity/Preferential shares.

h) There are no calls unpaid (Previous Year no) including calls unpaid by Directors and Officers as on balance sheet date.

i) Terms & Conditions of Secured Loans

a) Security Clauses:

1. WCTL, SEFASU Term Loan, Soft Loan and CC Under Repayment (except term loan from CoOperative Banks):-

i. Term Loans and CC under repayment from Banks are secured on first pari passu charge by way of Joint Equitable Mortgage on Company’s immovable properties and first charge by way of hypothecation of all movable properties of the Company on pari passu basis, subject to prior charge created / to be created in favour of Company’s Bankers (except Co-operative bank loan) for securing borrowings for cash credit facilities of the Company.

ii. Term Loans and CC under repayment from Banks are secured on third pari-passu charge basis on whole of the current assets (stock, book debts etc.), both present and future.

iii. Term Loans and CC under repayment from Banks are also guaranteed by Managing Director and two other promoters of the Company (viz. Mr. Rajan Adlakha & Mr. Ranjan Adlakha) and corporate guarantees of three Promoter Companies (viz. Uttam Industrial Engineering Limited, Uttam Sucrotech Limited and Lipi Boilers Private Limited).

iv. Term Loans and CC under repayment from Banks are also secured by way of Pledge on pari-passu basis of 34,84,170 Equity Shares in the company held by individual Promoters of the Company viz. M/s. Raj Kumar Adlakha, Rajan Adlakha and Ranjan Adlakha.

v. CC Under Repayment is additionally secured by :-

a. Corporate Guarantee by two group Companies viz. M/s Uttam Adlakha & Sons Holdings Private Limited and M/s Uttam Housinginfra Limited

b. Pledge on pari-passu basis of 60,00,000 Equity Shares held in the Company, held by three promoter companies viz. M/s Uttam Industrial Engineering Limited, M/s Uttam Sucrotech Limited and M/s Lipi Boilers Private Limited.

c. Joint Equitable Mortgage on the immovable properties situated at H-2, Kaushambi, Ghaziabad owned by group company viz. M/s Uttam Housinginfra Limited.

vi. Soft Loan is additionally secured by :-

a. Corporate Guarantee by group Company viz. M/s Uttam Housinginfra Limited.

b. Joint Equitable Mortgage on the immovable properties situated at H-2, Kaushambi, Ghaziabad owned by group company viz. M/s Uttam Housinginfra Limited.

2. Term Loan from Govt. of India, Sugar Development Fund through IFCI Ltd.:-

Term Loan from Govt. of India, Sugar Development Fund through IFCI Ltd is secured by an exclusive second charge on movable assets (except book debts) and Company’s immovable properties.

3. Term Loan from Uttarakhand State Co-Operative Bank Limited:-

Term Loan from Uttarakhand State Co-Operative Bank Limited is secured by Residual charge on all movable assets forming part of fixed/block assets both present & future, and Joint Equitable Mortgage on company’s immovable properties situated at Village Libberheri, Roorkee, District Haridwar (Uttarakhand) on Residual Charge basis, and also guaranteed by Managing Director.

4. Term Loan from Zila Sahkari Bank Limited, Ghaziabad:-

Term Loan from Zila Sahkari Bank Limited, Ghaziabad is secured on Residual charge basis on movable assets forming part of fixed/block assets, both present & future, and Joint Equitable Mortgage on company’s immovable properties situated at Village Shermau, Tehsil Nakur, District Saharanpur (Uttar Pradesh) on Residual Charge basis, and also guaranteed by Managing Director.

5. Vehicle loans:-

Vehicle loans from banks and Non Banking Finance Company are secured by way of hypothecation of vehicle financed by them.

ii) Terms & Conditions of Unsecured Loans

a) Loans from Related Parties represents Interest Free Unsecured Loans

b) Unsecured Loans from Related Parties shall be repayable after a period of 3 years with the consent of Term Lenders (Banks) covered under Corporate Debt Restructuring (CDR).

iii) Continuing Default as on 31st March 2016 : (Refer Note No. 8)

a) Unsecured Soft Loan from Uttarakhand State Government Rs.656.68 lacs and interest accrued & due thereon of Rs.293.50 lacs appearing in Other Current Liabilities (Note No.8) of Unsecured Loan was repayable in three years in quarterly installments w.e.f. January 2008 and the same is still to be repaid.

Terms & Conditions of Secured Loans - Security Clause For Short Term Borrowings :

1. Cash Credit Facilities [Non-Fund Based Working Capital Limits from Punjab National Bank & State Bank of India, and Fund Based Working Capital Limit from Indian Overseas Bank]

a) Cash Credit Facilities from Banks are secured/to be secured by first pari passu charges by hypothecation of stocks of raw materials, sugar, molasses, other stores and spares and book debts/receivables of the Company both present and future and third pari passu charge on immovable assets of the Company.

b) Cash Credit facilities from Banks are also guaranteed by Managing Director and two other promoters of the Company (viz. Mr. Rajan Adlakha & Mr. Ranjan Adlakha) and corporate guarantees of three Promoter Companies (viz. Uttam Industrial Engineering Limited, Uttam Sucrotech Limited and Lipi Boilers Private Limited).

c) Cash Credit facilities from Banks are also secured by way of Pledge on pari-passu basis of 34,84,170 Equity Shares in the company held by individual Promoters of the Company viz. M/s. Raj Kumar Adlakha, Rajan Adlakha and Ranjan Adlakha.

d) Non-Fund based Cash Credit Facilities from Punjab National Bank is additionally secured by :-

i. Corporate Guarantee by two group Companies viz. M/s Uttam Adlakha & Sons Holdings Private Limited and M/s Uttam Housinginfra Limited.

ii. Pledge on pari-passu basis of 60,00,000 Equity Shares held in the Company, by three promoter companies viz. Uttam Industrial Engineering Limited, Uttam Sucrotech Limited and Lipi Boilers Private Limited.

iii. Joint Equitable Mortgage on the immovable properties situated at H-2, Kaushambi, Ghaziabad owned by group company viz. M/s Uttam Housinginfra Limited.

2. Cash credit facility from Uttarakhand State Co-Operative Bank Limited:-

Cash credit facility from Uttarakhand State Co-Operative Bank Limited is secured by pledge of stocks of sugar at Libberheri Sugar Factory situated at Village Libberheri, Roorkee, District Haridwar.

3. Cash credit facility from Zila Sahkari Bank Limited, Ghaziabad

a. Cash Credit facility for Shermau Unit

Cash Credit facility for Shermau Unit from Zila Sahkari Bank Limited, Ghaziabad is secured by pledge of stocks of sugar at Shermau Sugar Factory situated at Village Shermau, Tehsil Nakur, District Saharanpur, Uttar Pradesh

b. Cash Credit facility for Barkatpur Unit :

Cash Credit facility for Barkatpur Unit from Zila Sahkari Bank Limited, Ghaziabad is secured by pledge of stocks of sugar at Barkatpur Sugar Factory situated at Village Barkatpur, Tehsil Nazibabad, District Bijnor, Uttar Pradesh and also guaranteed by Managing Director of the company.

Mode of Valuation of Inventories:

Inventories of Raw Material, Work-in-Progress, Finished Goods, Stores, Spares Parts,Packing Materials and Renewal Energy Certificate (REC) are valued at lower of Cost or Net Realizable Value. By-Products and residuals are valued at Net Realizable Value.

Cost of Inventories is determined on cost . Cost of Finished Goods and Work - in - Progress has been worked out on absorption cost basis.

4. All the Current Assets, Loans and Advances, in the opinion of the Board, have a value on realization which in the ordinary course of business shall at least be equal to the amount, at which it is stated in the Balance Sheet.

5. The Company has made an investment of the requisite amount for setting up New Projects in the State of Uttar Pradesh in accordance with the UP Sugar Industry Promotion Policy,2004 and has accordingly filed application for eligibility under the above policy. However, the State Government has later on terminated the Policy with effect from June 4, 2007 and based on that rejected the application. The Company had filed writ petition before Hon’ble Allahabad high court ( Lucknow Bench ) for enforcement of the scheme and settlement of incentive claims.

As per the erstwhile incentive policy, the Company claims to be eligible for capital subsidy of Rs. 3847 lacs ( 10 % of total investment ) and remission / Exemption / Reimbursement of taxes, duties & other charges aggregating to Rs. 9277 lacs, which will be accounted for in the year of final decision of Hon’ble court.

6. Supplier’s Credit Balance against farmers crop loan appearing under Other Current Liabilities ( Note No. 8 ) represent loan of Rs. 2496.38 lacs (Previous year 2353.18) from IDBI Bank Ltd to the cane growers under Corporate Tie up scheme for Crop loans , wherein the company is acting as ‘Business Facilitator’ and the same is backed by indemnity / guarantee of the company and Personal guarantee of the Managing Director.

7. Disclosure in respect of Operating Lease:

The Company has entered into non-cancelable Operating Lease for premises and lease rent amounting to Rs. 54.35 Lacs (Previous Year Rs. 66.20 Lacs) have been charged to Profit & Loss account. The future minimum lease payments are as under:-

8. In accordance with Accounting Standard (AS)-28 ‘Impairment of Assets’ issued by The Institute of Chartered Accountants of India, the Company has carried out an exercise to ascertain the impairment, if any, in the carrying value of its fixed assets. However, no such case was found.

9. Other Current Assets Note No ‘17’ includes interest of Rs. Nil (Previous year Rs.59.54 Lacs) recoverable from Banks in respect of Scheme “ Extending Financial Assistance to Sugar Undertakings 2007” for clearance of cane dues wherein the company has availed term loan of Rs.3365 lacs which has been fully repaid in earlier years, and includes interest of Rs.372.79 Lacs (Previous year 343.09 Lacs) recoverable from Banks in respect of Scheme - “Extending Financial Assistance to Sugar Undertakings 2014” for clearance of cane dues wherein the Company has availed term Loan of Rs.5387 Lacs. Further it includes Rs.110.84 Lacs (Previous year Rs.Nil) recoverable from Banks in respect of Scheme - “ Soft Loan to Sugar Mills 2015” for clearance of cane dues wherein the Company has availed Term Loan of Rs.4582 Lacs.

10. Deferred Tax Assets in respect of Unabsorbed Depreciation Losses & Unabsorbed Business Losses of Rs.14103.80 lacs has been recognized by the Company. The management is of the view that due to increased in sugar recovery supported by cane development activities and rise in sugar prices and initiatives taken by the Government, It has become reasonable that sufficient taxable income will be available against which such deferred tax assets can be realized.

11. In view of improvement in sugar recovery on account of cane development activities carries out by the Company and better sugar prices, which has also resulted in profit during the year, management is certain that the Company would be in a position to generate positive cash flow and profit in future and accordingly the financial result have been prepared on going concern assumption.

12. The company has identified certain fixed assets which are being retired from active use and are being held for disposal as on balance sheet date. Accordingly these assets have been written down to net realizable value, based on best estimates available with the Company and have been disclosed as Other Current Assets under the head ‘Fixed assets held for disposal’.

13. The previous year figures have been re-arranged, regrouped and reclassified wherever necessary and the figures are rounded off to nearest rupee Lacs.

14. Current Financial period is of 9 months commencing from 01.07.2015 to 31.03.2016 while the previous year was for 12 months commenced from 01.07.2014 to 30.06.2015, t

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Jun 30, 2015

A) Terms & Conditions of Equity Shares

1 The Company has one class of Equity Shares having a par value of Rs.10/- each.

2 Each Shareholder is eligible for one vote per shares held.

3 The Dividend, if any, proposed by the Board of Directors is subject to the approval of shareholders in the Annual General Meeting, except in the case of interim dividend.

4 In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholding.

b) Terms & Conditions of Preference Shares (Series - I)

1 Rate of Dividend on these Preference Shares is 6.5% p.a.

2 The Preference Shares are Cumulative with reference to the dividend.

3 The Preference Shares shall be redeemed after completion of 12 years but not later than 15 years from the date of allotment on the call of the Company

4 The Preference Shareholders will have no voting rights except as provided in the Companies Act, 2013 (Series - II)

1 Rate of Dividend on these Preference Shares is 10% p.a.

2 The Preference Shares are Cumulative with reference to the dividend.

3 The Preference Shares shall be redeemed after completion of 12 years but not later than 15 years from the date of allotment at a premium of Rs.100/-per Share on the call of the Company

4 The Preference Shareholders will have no voting rights except as provided in the Companies Act, 2013

c) There are Nil number of shares (Previous Year Nil) in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiary or associates of the holding company or the ultimate holding company in aggregate.

i) Terms & Conditions of Secured Loans a) Security Clauses:

(1) Term Loans from Banks (except Co-operative bank loan) are secured on frst pari passu charge by way of joint equitable mortgage on Company's immovable properties and frst charge by way of hypothecation of all movable properties of the Company on pari passu basis, subject to prior charge created / to be created in favor of Company's Bankers (except Co-operative bank loan) for securing borrowings for working capital requirements of the Company and third charge on pari passu basis on whole of the current assets (stock, book debts etc.) both present & future.

(2) Term Loans from Banks (except Co-operative bank loan) are also guaranteed by Managing Di- rector and two other promoters of the Company and corporate guarantees of three Promoter Companies.

notes on financial statements for the year ended 30th June 2015

(3) Term Loan from banks (except Co Operative Bank Loan) are also secured by way of pledge on parri passu basis of 3484170 (Previous Year 3484170) Equity Shares in the company held by in- dividual promoters of the company viz. Mr. Rajkumar Adlakha, Rajan Adlakha & Ranjan Adlakha.

(4) Term Loan from Govt. of India,Sugar Development Fund through Industrial Finance Corporation of India Ltd. is secured by an exclusive second charge on movable assets (except book debts) and Company's immovable properties.

(5) Term Loan from Uttarakhand State Co-operative Bank Limited is secured on Residual charge basis on all movable assets forming part of fxed / block assets both present & future, situated at Village Libberheri, Distt Haridwar, Uttarakhand and also guaranteed by Managing Director.

(6) Term loan from Zila Sahkari Bank Limited, Ghaziabad is secured on residual charge basis on mov- able assets forming part of fxed/block assets, both present & future, situated at village Shermau, Tehsil Nakur Distt. Saharanpur & also guaranteed by Managing Director.

(7) Vehicle loans from banks are secured by way of hypothecation of vehicle fnanced by them.

ii) Terms & Conditions of Unsecured Loans.

a) Loans from Related Parties represents Interest Free Unsecured Loans.

b) Unsecured Loans from Related Parties shall be repayable after a period of 3 years with the consent of Term Lenders (Banks) covered under Corporate Debt Restructuring (CDR).

iii) Continuing Default as on 30th June 2015 : (Refer Note No. 7)

i) Interest on Term Loans from Banks Rs.543.75 lacs included in Other Current Liabilities was due as on Balance Sheet date and same has been paid upto 8th August 2015

ii) SDF Loan installment of Rs.150 Lacs and interest of Rs.11.97 Lacs included in other current liabilities was due on balance sheet date and has been paid on 8th July'2015.

iii) Unsecured Soft Loan from Uttarakhand State Government Rs.656.68 lacs and interest accrued & due thereon of Rs.273.80 lacs appearing in Other Current Liabilities (Note No.7) of Unsecured Loan was repayable in three years in quarterly installments w.e.f. January 2008 and the same is still to be repaid.

i) Terms & Conditions of Secured Loans - Security Clause

1. Cash Credit from Banks (except Co-operative bank loan) are secured/to be secured by first pari pas- su charges by hypothecation of stocks of raw materials, sugar, molasses, other stores and spares and book debts/receivables of the Company both present and future and third pari passu charge on immovable assets of the Company. Cash Credit from Banks (except Co-operative bank loan) are also guaranteed by Managing Director and two other promoters of the Company and corporate guarantees of three Promoter Companies.

2. SBI, IDBI and IOB Short Term Loans are secured/to be secured as follows :

(i) Secured on first pari passu charge by way of joint equitable montage on company's immovable properties & frst charge by way of hypothecation of all movable properties of the company on pari passu basis & third charge on pari passu basis on whole of the current assets (Stock, Book Debts etc.), both present & future.

(ii) Guaranteed by Managing Director & Two Other Promoters of the Company and corporate guran- tees of four Promoter Companies.

(iii) Secured by way of equitable mortgage of immovable property of Promoter group entity.

3. Cash Credit from banks (except Co Operative Bank Loan) and Short Term Loan are also secured by way of pledge on parri passu basis of 3484170 (Previous Year 3484170) Equity Shares in the company held by individual promoters of the company viz. Mr. Rajkumar Adlakha, Rajan Adlakha & Ranjan Adlakha.

4. Cash Credit facility from Uttarakhand State Co-Operative Bank Limited are secured on pledge of Stocks of sugar at Village Libberheri, Distt Haridwar, Uttarakhand.

5. Cash Credit facility from Zila Sahkari Bank Limited, Ghaziabad are secured on pledge of stocks of sugar at Village Shermau, Tehsil : Nakur, Distt. Saharanpur (U.P.) and also guaranteed by Managing Director of the company.

Continuing Default as on 30th June 2015 :

Short Term Loans of Rs.3381 Lacs from Banks including in Short Term Borrowings was due on Balance Sheet Date out of which Rs.1600 Lacs has been paid upto 12th August 2015.

Mode of Valuation of Inventories:

Inventories of Raw Material, Work-in-Progress, Finished Goods, Stores, Spares Parts,Packing Materials and Renewal Energy Certificate (REC) are valued at lower of Cost or Net Realizable Value. By-Products and re- ideals are valued at Net Realizable Value.

Cost of Inventories is determined on cost. Cost of Finished Goods and Work - in - Progress has been worked out on absorption cost basis.

1. Amount of borrowing cost capitalized to fixed assets during the year is Rs. NIL (Previous Period Rs. 40.98 Lacs).

2. All the Current Assets, Loans and Advances, in the opinion of the Board, have a value on realization which in the ordinary course of business shall at least be equal to the amount, at which it is stated in the Balance Sheet.

3. The Company has made an investment of the requisite amount for setting up New Projects in the State of Uttar Pradesh in accordance with the UP Sugar Industry Promotion Policy,2004 and has accordingly fled application for eligibility under the above policy. However, the State Government has later on terminated the Policy with effect from June 4, 2007 and also rejected the application. During the Year Company has fled amended writ petition before Hon'ble Allahabad high court ( Luck now Bench ) for enforcement of the scheme and settlement of incentive claims.

As per the erstwhile incentive policy, the Company claims to be eligible for capital subsidy of Rs. 3847 lacs ( 10 % of total investment ) and remission / Exemption / Reimbursement of taxes, duties & other charges aggregating to Rs. 9277 lacs, which will be accounted for in the year of final decision of Hon'ble court.

4. State Govt. of U.P. vide its Order No. 2970-C.D./46- 3-14-3(48)/98-99 dated 24th December, 2014, and State Govt. of Uttrakhand vide its order No. 04/XIV-2/2015/55/2010-T.C. dated 3rd January 2015 had announced certain fnancial assistance including Rs. 28.60/- per quintal of cane for the sugar season 2014- 15 linked to average selling price of sugar and its by-products during the specified period from 1st October, 2014 to 31st May, 2015 which is to be recommended by the Committee constituted by the Government of Uttar Pradesh / Uttrakhand.

As the average selling price of sugar is significantly lower than the threshold specified in the above announcement, the Company has estimated and accounted for the above financial assistance aggregating to 6703.96 lacs during the year under audit. The aforesaid financial assistance has been included under the Cost of Raw Material Consumed under Note No. 20.

5. For Sugar Season 2013-14 financial assistance of Rs.6/- per quintal and Rs.14/- per quintal of cane subsidy were granted vide Govt. of U.P. Order No. 2195 C.D./46-3-14-3(35)/2013 T.C. dated 9th September, 2014 and Government of Uttrakhand Order No.106/C/B-purchase section/2013-14 dated 16th April 2015 respectively, accordingly, the Company has accounted for an amount of Rs. 1522.65 lacs during the year under review. The aforesaid financial assistances have been accounted for and included under Other Operating Revenue Note No. 18.

6. For Sugar season 2012-13 Government of Uttar Pradesh has reduced the society sugar commission rate vide their letter no.04/2015/620/12.06.2015, from 3% of Fair Remunerative Price of cane to Rs.2/- per quintal on sugar cane, accordingly the Company has accounted for an amount of Rs. 553.73 lacs during the year under review. The aforesaid financial assistances included under Other Operating revenue under Note No. 18.

7. Depreciation for the current year has been aligned to meet the requirements of Schedule -II to the Companies Act, 2013 and accordingly an amount of Rs. 98.17 lacs in relation to the assets whose useful life has already exhausted has been shown under the heading-Exceptional Items in Proof and loss account.

Had the Company continued to charge deprecation based on rates and manner as specified under the erstwhile Schedule XIV to the Companies Act 1956, deprecation expenses and the Loss before Tax for the year ended 30 June 2015 would have been higher by Rs. 1018.21 lacs.

Further, losses and deferred tax liabilities would have been higher by Rs. 1018.21 lacs and Rs. 314.63 lacs respectively and net value of fixed assets as at the date would have been lower by Rs. 1018.21 lacs.

8. Supplier's Credit Balance against farmers crop loan appearing under Other Current Liabilities ( Note No. 7 ) represent loan of Rs.2353.18 lacs (Previous year Nil) from IDBI Bank Ltd to the cane growers under Corporate Tie up scheme for Crop loans , wherein the company is acting as 'Business Facilitator' and the same is backed by indemnity / guarantee of the company and Personal guarantee of the Managing Director.

9. Disclosure in respect of Operating Lease:

The Company has entered into non-cancelable Operating Lease for premises and lease rent amounting to Rs. 66.20 Lacs (Previous Period Rs. 59.45 Lacs) has been charged to Proft & Loss account. The future minimum lease payments are as under:-

10. In accordance with Accounting Standard (AS)-28 'Impairment of Assets' issued by the Institute of Chartered Accountants of India, the Company has carried out an exercise to ascertain the impairment, if any, in the carrying value of its fixed assets. However, no such case was found.

11. As per the Accounting Standard (AS)-17 on 'Segment Reporting' issued by The Institute of Chartered Accountants of India, the Company has identified three business segment i.e. Sugar, Cogeneration and Distillery. The relevant disclosure is as under:

12. Other Current Assets Note No. '16' includes interest of Rs. 59.54 Lacs (Previous Period Rs. 59.54 lacs) recoverable from Banks in respect of Scheme - "Extending Financial Assistance to Sugar Undertakings 2007" for clearance of cane dues wherein the Company had availed term loan of Rs. 3365.00 Lacs which has been fully repaid in earlier years, and includes interest of Rs. 343.09 Lacs (Previous Period Rs. 78.78 lacs) recoverable from Banks in respect of Scheme - "Extending Financial Assistance to Sugar Undertakings 2014" for clearance of cane dues wherein the Company had availed term loan of Rs. 5387.00 Lacs.

13. Statement of Expenses during construction period related to Distillery at Barkatpur and Karnataka as on 30th June 2015 given is as under :-

14. Related Party Disclosures:-

In accordance with the requirements of Accounting Standard (AS)-18 on 'Related Party Disclosure' issued by The Institute of Chartered Accountants of India , the names of the related parties where control exist and/or with whom transaction have taken place during the Year and description of relationships as identified and certified by the management are :

A. Parties where control exists NIL

B. Other related parties where transaction have taken place during the Year

i) Key Management Personnel (KMP) :

Sh.Raj Kumar Adlakha - Managing Director (MD)

Sh. Ashok Kumar Agarwal - Executive Director

Relative of Key Management Personnel and their Relationship:

- Smt. Amita Adlakha (Wife of MD)

ii) Enterprises where Significant Influence exists :

- Uttam Industrial Engineering Limited

- Lipi Boilers Pvt. Ltd.

- The Standard Type Foundry Pvt.Ltd.

- Uttam Scratch Limited

- Shubham Sugars Limited

- Uttam Adlakha & Sons Holdings Pvt. Ltd.

- Sekhri Finance & Investment Pvt. Ltd.

- Uttam Sunna Charitable Trust

- New Castle Finance and Leasing Pvt. Ltd.

- Uttam Energy System Ltd.

- Uttam Housinginfra Limited

15. During the Year the company has recognized deferred tax assets of Rs. 2469 lacs on brought forward business losses & unabsorbed depreciation up to 31st March 2015 out of unrecognized deferred tax Assets Rs. 4888 lacs in accordance with the AS-22 on "Accounting of Taxes" issued by The Institute of Chartered Accountants of India on, The Company expects turnaround of sugar sector by view of expected assistance from Govt. and by way of cane development Activities carried out by the company as supported by report issued by Sugar Technical Expert, it has become reasonable that sufficient taxable income will be available against which such deferred tax assets can be realized.

Since the earnings are expected to increase mainly due to higher cane recovery as well as various support measures announced by the Government, the company has recognized deferred tax assets on account of unabsorbed business losses and unabsorbed depreciation to the extent of future reversal of Deferred Tax Liability and virtual certainty in accordance with Accounting Standard (AS) – 22 on 'Accounting for Taxes on Income'.

16. The company has identified certain fixed assets which are being retired from active use and are being held for disposal as on balance sheet date. Accordingly these assets have been written down to net realizable value, based on best estimates available with the Company and have been disclosed as Other Current Assets under the head 'Fixed assets held for disposal'.

17. Due to steep decline in sugar realization and other market factors, the Company is having accumulated losses up to 30.06.2015. However, the promoters of the Company have committed to provide continued financial & operational support to the Company for its successful operation in the foreseeable future and accordingly accompanying financial statement have been prepared based on going concern assumption.

18. The previous period figures have been re-arranged, regrouped and reclassified wherever necessary and the figures are rounded off to nearest rupee Lacs.

19. Current Financial year is of 12 month starting from 01.07.2014 to 30.06.2015 while the previous year was for 15 month starting from 01.04.2013 to 30.06.2014 therefore fgure are not comparable.

---

Jun 30, 2014

1.a) Terms & Conditions of Equity Shares

1 The Company has one class of Equity Shares having a par value of Rs.10/- each.

2 Each Shareholder is eligible for one vote per shares held.

3 The Dividend, if any, proposed by the Board of Directors is subject to the approval of shareholders in the Annual General Meeting, except in the case of interim dividend.

4 In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholding.

b) Terms & Conditions of Preference Shares (Series - I)

1 Rate of Dividend on these Preference Shares is 6.5% p.a.

2 The Preference Shares are Cumulative with reference to the dividend.

3 The Preference Shares shall be redeemed after completion of 12 years but not later than 15 years from the date of allotment on the call of the Company.

2 The Preference Shareholders will have no voting rights except as provided in the Companies Act, 1956. (Series - II)

1 Rate of Dividend on these Preference Shares is 10% p.a.

2 The Preference Shares are Cumulative with reference to the dividend.

3 The Preference Shares shall be redeemed after completion of 12 years but not later than 15 years from the date of allotment at a premium of Rs.100/-per Share on the call of the Company.

4 The Preference Shareholders will have no voting rights except as provided in the Companies Act, 1956.

a) There are Nil number of shares (Previous Year Nil) in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiary or associates of the holding company or the ultimate holding company in aggregate.

b) There are Nil number of shares (Previous Year Nil) reserved for issue under option and contracts/commitment for the sale of shares/disinvestment including the terms and amounts.

c) There are no securities (Previous Year no) convertible into Equity/Preferential shares.

d) There are no calls unpaid (Previous Year no) including calls unpaid by Directors and Officers as on balance sheet date.

e) There is no reserve specifically represented by earmarked investments which can be termed as fund.

f) Terms & Conditions of Secured Loans a) Security Clauses:

3. Term Loans from Banks (except Co-operative bank loan) are secured on first pari passu charge by way of joint equitable mortgage on Company''s immovable properties and first charge by way of hypothecation of all movable properties of the Company on pari passu basis, subject to prior charge created / to be created in favour of Company''s Bankers (except Co-operative bank loan) for securing borrowings for working capital requirements of the Company and third charge on pari passu basis on whole of the current assets (stock, book debts etc.) both present & future.

4. Term Loans from Banks (except Co-operative bank loan) are guaranteed by Managing Director and two other promoters of the Company and corporate guarantees of three Promoter Companies.

5. Term Loans from banks (except Co Operative Bank Loan) are also secured by way of pledge on parri passu basis of 3484170 (Previous Year 19450442) Equity Shares in the Company held by individual promoters of the Company viz. Mr. Raj Kumar Adlakha, Rajan Adlakha & Ranjan Adlakha.

6. Term Loan from Govt. of India, Sugar Development Fund through Industrial Finance Corporation of India Ltd. is secured by an exclusive second charge on movable assets (except book debts) and Company''s immovable properties.

7. Term Loan from Uttarakhand State Co-operative Bank Limited is secured on Residual charge basis on all movable assets forming part of fixed / block assets both present & future, situated at Village Libberhedi, Distt Haridwar, Uttarakhand and also guarenteed by Managing Director.

8. Term loan from Zila Sahkari Bank Limited, Ghaziabad is secured on residual charge basis on movable assets forming part of fixed/block assets, both present & future, situated at village Shermau, Tehsil Nakur Distt. Saharanpur & also guaranteed by Managing Director.

9. Vehicle loans from banks are secured by way of hypothecation of vehicle financed by them.

ii) Terms & Conditions of Unsecured Loans

a) Loans from Related Parties represents Interest Free Unsecured Loans.

b) Unsecured Loans from Related Parties shall be repayable after a period of 3 years with the consent of Term Lenders (Banks) covered under Corporate Debt Restructuring (CDR).

iii) Continuing Default as on 30th June 2014: (Refer Note No. 7)

i) Interest on Term Loans from Banks Rs.255.56 lacs included in Other Current Liabilities was due as on Balance Sheet date and same has been paid upto 28th August 2014.

ii) Unsecured Soft Loan from Uttarakhand State Government Rs.656.68 lacs and interest accrued & due thereon of Rs.247.54 lacs appearing in Other Current Liabilities (Note No.7) of Unsecured Loan was repayable in three years in quarterly instalments w.e.f. January 2008 and the same is still to be repaid.

i) Terms & Conditions of Secured Loans - Security Clause

10. Cash Credit from Banks (except Co-operative bank loan) are secured/to be secured by first pari passu charges by hypothecation of stocks of raw materials, sugar, molasses, other stores and spares and book debts/receivables of the Company both present and future and third pari passu charge on immovable assets of the Company. Cash Credit from Banks (except Co-operative bank loan) are also guaranteed by Managing Director and two other promoters of the Company and corporate guarantees of three Promoter Companies.

11. Punjab National Banks'' short term loan is secured/to be secured as follows:

(i) Secured on first pari passu charge by way of joint equitable mortage on company''s immovable properties & first charge by way of hypothecation of all movable properties of the company on pari passu basis & third charge on pari passu basis on whole of the current assets (Stock, Book Debts etc.), both present & future.

(ii) Secured by way of equitable mortgage of immovable property of Promoter group entity.

12. Cash Credit from banks (except Co Operative Bank Loan & Short Term Loan) are also secured by way of pledge on parri passu basis of 3484170 (Previous Year 19450442) Equity Shares in the company held by individual promoters of the company viz. Mr. Raj Kumar Adlakha, Rajan Adlakha & Ranjan Adlakha.

13. Cash Credit facility from Uttarakhand State Co-Operative Bank Limited are secured on pledge of Stocks of sugar at Village Libberheri, Distt Haridwar, Uttarakhand.

14. Cash Credit facility from Zila Sahkari Bank Limited, Bijnor are secured on pledge of stocks of sugar at Village Barkatpur, Tehsil : Najibabad Distt. Bijnor & also guaranteed by Managing Director.

15. Cash Credit facility from Zila Sahkari Bank Limited, Ghaziabad are secured on pledge of stocks of sugar at Village Shermau, Tehsil : Nakur, Distt. Saharanpur.

* Other Liabilities includes commission on sales, due to employees and employees benefits & Expenses Payable.

Mode of Valuation of Inventories:

Inventories of Raw Material, Work-in-Progress, Finished Goods, Stores, Spares Parts,Packing Materials and Renewal Energy Certificate (REC) are valued at lower of Cost or Net Realisable Value. By-Products and residuals are valued at Net Realisable Value.

Cost of Inventories is determined on cost. Cost of Finished Goods and Work - in - Progress has been worked out on absorption cost basis.

NOTE - 16 : CONTINGENT LIABILITIES AND COMMITMENTS Contingent Liabilities

i) Excise Duty / Sales Tax demands and

show cause notices against which Company / Department has preferred appeals / 2,197.05 1,788.79 filed replies.

ii) Preference Dividend payable on cumulative Redeemable Preference Shares 2,105.07 1,438.60

iii) In respect of pending court cases by/ against ex-employees amount not ascertainable - - at this stage Capital Commitments

i) Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances) 232.90 2,568.47

ii) Letter of Credit in favour of Suppliers 1,012.29 1,374.50 and Bank Guarantees issued TOTAL 5,547.31 7,170.36

17. The company has changed cost formula for computation of cost of stocks of finished goods from weighted average cost (WAC) method to First In First Out (FIFO) method as this gives the closed approximation to current cost flows and is in accordance to the AS-2 "Valuation of Inventories" issued by The Institute of Chartered Accountants of India. This has resulted in increase in value of closing stocks of finished goods - Sugar by Rs.1327.11 Lacs & net loss for the period and debit balance of Profit & Loss account is also lower by the same amount. Had the company followed the WAC method of valuation of finished goods value closing stock of finished goods - Sugar would have been Rs of 46246.31 Lacs, Net Loss for the period would have been Rs 6856.92 Lacs and debit balance of Profit and loss account would have been 20797.55 Lacs.

18. Amount of borrowing cost capitalized to fixed assets during the year is Rs. 40.98 Lacs (Previous Year Rs. Nil Lacs).

19. All the Current Assets, Loans and Advances, in the opinion of the Board, have a value on realization which in the ordinary course of business shall at least be equal to the amount, at which it is stated in the Balance Sheet.

20. The Company has made an investment of the requisite amount for setting up New Projects in the State of Uttar Pradesh in accordance with the UP Sugar Industry Promotion Policy, 2004 and has accordingly filed application for eligibility under the above policy, which is still pending. However, the State Government has later on terminated the Policy with effect from June 4, 2007. However, the Company is hopeful to get the benefits under the said policy.

21. In accordance with Accounting Standard (AS)-28 ''Impairment of Assets'' issued by the Institute of Chartered Accountants of India, the Company has carried out an exercise to ascertain the impairment, if any, in the carrying value of its fixed assets. However, no such case was found.

22. Other Loans and Advances'' in Note No. ''15'' includes interest of Rs. 59.54 Lacs (Previous Year Rs. 130.20 lacs) recoverable from Banks in respect of Scheme - "Extending Financial Assistance to Sugar Undertakings 2007" for clearance of cane dues wherein the Company had availed term loan of Rs. 3365.00 Lacs which has been fully repaid in earlier years, and includes interest of Rs. 78.78 Lacs (Previous Year Rs. Nil lacs) recoverable from Banks in respect of Scheme - "Extending Financial Assistance to Sugar Undertakings 2014" for clearance of cane dues wherein the Company had availed term loan of Rs. 4857.00 Lacs during the Period.

23. Out of a sum of Rs.44.22 Crores in respect of previously unrecognized deferred tax assets on brought forward unabsorbed business losses, during the Year the company has partially recognized deferred tax assets of Rs. 20.08 Crores in accordance with the AS-22 on "Accounting of Taxes" issued by The Institute of Chartered Accountants of India, as Cane Development Activities carried out by the company and on the basis of a report issued by Sugar Technical Expert, it has become reasonable that sufficient taxable income will be available against which such deferred tax assets can be realized. These earnings are expected to increase mainly due to higher cane recovery.

Further as per the policy adopted by the Company in preceding financial years, the company has recognized deferred tax assets on account of unabsorbed depreciation to the extent of future reversal of Deferred Tax Liability and virtual certainty in accordance with Accounting Standard (AS) - 22 on ''Accounting for Taxes on Income''.

24. The company has identified certain fixed assets which are being retired from active use and are being held for disposal as on balance sheet date. Accordingly these assets have been written down to net realizable value, based on best estimates available with the Company and have been disclosed as Other Current Assets under the head ''Fixed assets held for disposal''.

25. The previous year figures have been re-arranged, regrouped and reclassified wherever necessary and the figures are rounded off to nearest rupee Lacs.

26. Current Financial year is of 15 month starting from 01.04.2013 to 30.06.2014 while the previous year was for 12 month therefore figure are not comparable.

---

Mar 31, 2013

1. During the year, Cogeneration Unit and Distillery Unit at Barkatpur (Distt. Bijnor) have commenced their commercial production in April 2012 and January 2013 respectively. The related trial run costs and pre-operative costs incurred by the units upto the date of commercial production have been allocated to costs of fixed assets in accordance with the Accounting Standard (AS) -10 on Accounting for Fixed Assets'' (Refer Note No. 36).

2. In accordance with the Accounting Standard (AS) - 16 on "Borrowing Costs" the interest on these projects for abnormally delayed period amounting to Rs. 225.93 lacs (Previous Year 799.62 Lacs) has been charged to Profit and loss account.

3. All the Current Assets, Loans and Advances, in the opinion of the Board, have a value on realization which in the ordinary course of business shall at least be equal to the amount, at which it is stated in the Balance Sheet.

4. ''Exceptional Items'' appearing under previous reporting period represents Differential Cane Price Liability for the Sugar Season 2007-08, Pursuant to the Hon''ble Supreme Court''s Order dated 17th January 2012.

5. The Company has made an investment of the requisite amount for setting up New Projects in the state of Uttar Pradesh in accordance with the UP Sugar Industry Promotion Policy, 2004 and has accordingly filed application for eligibility under the above policy, which is still pending. However, the State Government has later on terminated the Policy with effect from June 4, 2007. However, the Company is hopeful to get the benefits under the said policy.

6. Disclosure in respect of Operating Lease:

The company has entered into non-cancelable Operating Lease for premises and lease rent amounting to Rs. 33.87 Lacs (Previous Year Rs. 39.69 lacs) have been charged to Profit & Loss account. The future minimum lease payments are as under:-

7. In accordance with Accounting Standard (AS)-28 ''Impairment of Assets'' issued by the Institute of Chartered Accountants of India, the Company has carried out an exercise to ascertain the impairment, if any, in the carrying value of its fixed assets. However, no such case was found.

8. ''Other Loans and Advances'' in Note No. ''16'' includes interest of Rs. 130.20 Lacs (Previous Year Rs. 145.40 lacs) recoverable from Banks in respect of scheme - "Extending Financial Assistance to Sugar Undertakings 2007" for clearance of cane dues wherein the Company had availed term loan of Rs. 3365.00 Lacs which has been fully repaid in earlier years.

9. Related Party Disclosures:-

In accordance with the requirements of Accounting Standard (AS)-18 on ''Related Party Disclosure'' issued by The Institute of Chartered Accountants of India , the names of the related parties where control exist and/or with whom transaction have taken place during the Year and description of relationships as identified and certified by the management are:

A. Parties where control exists NIL

B. Other related parties where transaction have taken place during the Year i) Key Management Personnel (KMP) :

Sh.Raj Kumar Adlakha - Managing Director (MD)

Sh.Pasha Biswas - Whole Time Director (Upto 30th May, 2012)

Sh. Ashok Kumar Agarwal - Executive Director

Relative of Key Management Personnel and their Relationship:

- Smt. Amita Adlakha (Wife of MD)

ii) Enterprises where Significant Influence exists :

- Uttam Industrial Engineering Limited

- Lipi Boilers Ltd.

- The Standard Type Foundry Pvt.Ltd.

- Uttam Sucrotech Limited

- Shubham Sugars Limited

- Uttam Adlakha & Sons Holdings Pvt. Ltd.

- Sekhri Finance & Investment Pvt. Ltd.

- Rajan & Sons HUF

- Uttam Distilleries Ltd.

- Uttam Properties (P) Ltd.

10. As per the policy adopted by the Company in immediately preceding financial year, the company has recognized deferred tax assets only on account of unabsorbed depreciation aggregating to Rs. 870.89 lacs to the extent of future reversal of Deferred Tax Liability and virtual certainty in accordance with Accounting Standard (AS) - 22 on Accounting for Taxes on Income''

11. The company has identified certain fixed assets which are being retired from active use and are being held for sale as on balance sheet date. Accordingly these assets have been written down to net realizable value, based on best estimates available with the company and have been disclosed as Other Current Assets under the head ''Fixed assets held for disposal1.

12. The Company concluded a Rights Issue in October, 2012 and raised an aggregate of Rs.2721.21 Lacs with the twin objects of repaying Interest-Free temporary Unsecured Loan of Rs. 675 Lacs and the balance amount of Rs. 1989.56 Lacs towards Financing Long Term Working Capital requirement. Upon allotment of 1,23,69,120 Equity Shares of face value of Rs.10/- at a price of Rs.22/- per share (including Share Premium of Rs.12A per share) on October 27, 2012, the Paid-up Equity Share Capital and Share Premium have been increased by Rs.1236.91 Lacs and Rs. 1484.30 Lacs respectively. These newly allotted Equity Shares rank pari passu in all respect with the existing Equity Shares of the Company. The proceeds of the Rights Issue have been fully utilized as per the objects of Issue mentioned in the Letter of Offer.

13. The previous year figures have been re-arranged, regrouped and reclassified wherever necessary and the figures are rounded off to nearest rupee Lacs.

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Mar 31, 2012

A) Terms & Conditions of Equity Shares

1 The Company has one class of Equity Shares having a par value of Rs.10/- each.

2 Each Shareholder is eligible for one vote per shares held.

3 The Dividend, if any, proposed by the Board of Directors is subject to the approval of shareholders in the Annual General Meeting, except in the case of interim dividend.

4 In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholding.

b) Terms & Conditions of Preference Shares (Series -1)

1 Rate of Dividend on these Preference Shares is 6.5% p.a.

2 The Preference Shares are Cumulative with reference to the dividend.

3 The Preference Shares shall be redeemed after completion of 12 years but not later than 15 years from the date of allotment on the call of the Company.

4 The Preference Shareholders will have no voting rights except as provided in the Companies Act, 1956. (Series - II)

1 Rate of Dividend on these Preference Shares is 10% p.a.

2 The Preference Shares are Cumulative with reference to the dividend.

3 The Preference Shares shall be redeemed after completion of 12 years but not later than 15 years from the date of allotment on the call of the Company

4 The Preference Shareholders will have no voting rights except as provided in the Companies Act, 1956.

c) There are Nil number of shares (Previous Year Nil) in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiary or associates of the holding company or the ultimate holding company in aggregate.

e) There are Nil number of shares (Previous Year Nil) reserved for issue under option and contracts/commitment for the sale of shares/disinvestment including the terms and amounts.

f) For the period of five years immediately preceeding the date at which the balance sheet is prepared

g) There are no securities (Previous Year no) convertible into Equity/Preferential shares.

h) There are no calls unpaid (Previous Year no) including calls unpaid by Directors and Officers as on balance sheet date.

i) There is no reserve specifically represented by earmarked investments which can be termed as fund.

Terms & Conditions:

1 Number of Shares issued : 75000 - 10% Cumulative Redeemable Preference Shares of Rs.100/- each to be issued at a premium of Rs.100/-per share.

2 The Preference Shares shall be redeemed after completion of 12 years but not later than 15 years from the date of allotment.

3 The Board of Directors were reviewing the terms and conditions because of which there has been some delay. However, the shares have been allotted on May 30th, 2012.

4 There is sufficient authorised share capital to cover the share capital amount on allotment of shares out of share application money.

5 There is no interest accured on the amount due.

i) Terms & Conditions of Secured Loans

a) Security Clauses:

(1) Term Loans and Funded Interest Term Loans from Banks are secured/to be secured on first pari passu charge by way of joint equitable mortgage on Company's immovable properties and first charge by way of hypothecation of all movable properties of the Company on pari passu basis, subject to prior charge created / to be created in favour of Company's Bankers for securing borrowings for working capital requirements of the Company.

(2) Term Loans and Funded Interest Term Loans from Banks are guaranteed by Managing Director and two other promoters of the Company and corporate guarantees of three Promoter Companies.

(3) Term Loan from Govt, of India,Sugar Development Fund through Industrial Finance Corporation of India Ltd. Is secured / to be secured by an exclusive second charge on movable assets (except book debts) and Company's immovable properties.

(4) Vehicle loans from banks are secured by way of hypothecation of vehicle financed by them.

ii) Terms & Conditions of Unsecured Loans

a) Loans from Related Parties represents Interest Free Unsecured Loans.

b) Unsecured Loans from Related Parties shall be repayable after a period of 3 years with the consent of Term Lenders (Banks) covered under Corporate Debt Restructuring (CDR).

iii) Continuing Default as on 31st March 2012: (Refer Note No. 8)

i) Term Loans from Banks Rs.187.17 included in Current Maturies of Term Loans from Bank was due as on Balance Sheet date and Paid on 3rd April 2012.

ii) Unsecured Soft Loan from Uttarakhand State Government Rs.656.68 lacs included in Current Maturities of Unsecured Loan was repayable in three years in quarterly instalments w.e.f. January 2009 and the same is still to be repaid.

i) Terms & Conditions of Secured Loans - Security Clause

Cash Credit from Banks are secured/to be secured by first pari passu charges by hypothecation/pledge of stocks of raw materials, sugar, molasses, other stores and spares and book debts/receivables of the Company both present and future and third pari passu charge on immovable assets of the Company.Cash Credit from Banks are guaranteed by Managing Director and two other promoters of the Company and corporate guarantees of three Promoter Companies.

ii) Terms & Conditions of Unsecured Loans

a) Loans from Related Parties represents Interest Free Unsecured Loans from Related Parties.

b) Unsecured Loans from Related Parties shall be repaid out proceeds of Proposed Right Issue of the Company.

iii) There is no default as on Balance Sheet date in repayment of Loans and Interest thereon.

Mode of Valuation of Inventories:

Inventories of Raw Material, Work-in-Progress, Finished Goods, Stock-in-Trade, Stores, Spares Parts and Packing Materials are valued at lower of Cost or Net Realisable Value. By-Products and residuals are valued at Net Realisable Value.

Cost of Inventories is determined on weighted average. Cost of Finished Goods and Work in-Progress has been worked out on absorption cost basis.

(Rs.in lacs)

Figures as at Figures as at end of current end of previous Reporting Period Reporting Period

31.03.2012 31.03.2011

NOTE -1 : CONTINGENT LIABILITIES AND COMMITMENTS

Contingent Liabilities

i) Excise Duty / Sales Tax / Income Tax demands and show cause notices against which Company / Department has preferred appeals / filed replies. 2,299.60 676.46

ii) Preference Dividend payable on cumulative

Redeemable Preference Shares 916.39 407.14

iii) In respect of pending court cases by/against ex-employees amount not ascertainable at this stage Capital Commitments

i) Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances) 5,034.61 4,795.55

ii) Letter of Credit in favour of Suppliers 816.99 716.03

TOTAL 9,067.59 6,595.18

2. Amount of borrowing cost capitalized to fixed assets during the year is Rs. NIL Lacs (Previous Year Rs. 840.99 Lacs). The Co-Generation units at Khaikheri (Distt. Muzaffarnagar) and Shermau (Distt. Saharanpur) had been kept in abeyance for non achievment of financial closure and Cogeneration Unit and Distillery Unit at Barkatpur (Distt. Bijnor) are also in process of being set up and are abnormally delayed. Therefore in accordance with the Accounting Standard (AS) - 16 on "Borrowing Costs" the interest on these projects amounting to Rs. 799.62 lacs (Previous Year Rs. 13.17 Lacs) has been charged to Profit and loss account.

3. All the Current Assets, Loans and Advances, in the opinion of the Board, have a value on realization which in the ordinary course of business shall at least be equal to the amount, at which it is stated in the Balance Sheet.

4. Pursuant to the Hon'ble Supreme Court's Order dated 17th January 2012, Differential Cane Price Liability for the Sugar Season 2007-08 amounting to Rs.2067.46 lacs has been provided for under the head 'Exceptional Items' in Profit & Loss Statement during the year, which was earlier provided for at Rs.110/- per quintal instead of State Advised Price (SAP) of Rs.125/- per quintal in respect of its units situated in the State of Uttar Pradesh.

5. The Company has made an investment of the requisite amount for setting up New Projects in the state of Uttar Pradesh in accordance with the UP Sugar Industry Promotion Policy,2004 and has accordingly filed application for eligibility under the above policy, which is still pending. However, the State Government has later on terminated the Policy with effect from June 4, 2007. However, the Company is hopeful to get the benefits under the said policy.

6. Sundry Creditors - others includes short term loan of Rs. NIL Lacs (including interest accrued Rs.NIL lacs) (Previous Year Rs. 3860.32 lacs (including interest accrued Rs.20.31 lacs)) from Punjab National Bank under the scheme for loan to farmers against Sugar Cane Receivables wherein the Company is acting as 'Management and Collection Agent'.

7. Disclosure in respect of Operating Lease:

The company has entered into non-cancelable Operating Lease for premises and lease rent amounting to Rs. 39.69 Lacs (Previous Year Rs. 36.88 lacs ) have been charged to Profit & Loss account. The future minimum lease pay- ments are as under:-

8. In accordance with Accounting Standard (AS)-28 'Impairment of Assets' issued by the Institute of Chartered Accountants of India, the Company has carried out an exercise to ascertain the impairment, if any, in the carrying value of its fixed assets. However, no such case was found.

9. As per the Accounting Standard (AS)-17 on 'Segment Reporting' issued by The Institute of Chartered Accountants of India, presently there is only one reportable segment i.e. Sugar.

10. Company has availed a term loan of Rs. 3365.00 Lacs (Previous Year Rs.3365.00 Lacs) for payment of cane dues for the season 2006-07 and 2007-08 as per scheme for "Extending Financial Assistance to Sugar Undertakings 2007" issued by Government of India. As per the Scheme the interest charged by the bank on such loan is to be reimbursed by the Government of India. A sum of Rs. 145.40 Lacs was recoverable as on 31st March, 2012 (Previous Year Rs.250.50 lacs), pending reimbursement, the same has been included in 'Other Loans and Advances' in Note No. '16'.

11. The Company's debt had been rescheduled / restructured by Corporate debt Restructuring Empowered group (CDR EG) considering 1st July 2009 as cut off date. The restructuring package has been given effect in accordance with the approvals/ sanctions received from all the term lenders.

12. Related Party Disclosures:-

In accordance with the requirements of Accounting Standard (AS)-18 on 'Related Party Disclosure' issued by The Institute of Chartered Accountants of India , the names of the related parties where control exist and/or with whom transaction have taken place during the Year and description of relationships as identified and certified by the man- agement are :

A. Parties where control exists NIL

B. Other related parties where transaction have taken place during the Year

i) Key Management Personnel (KMP) :

Sh.Raj Kumar Adlakha - Managing Director (MD)

Sh.Pasha Biswas - Whole Time Director

Sh. Ashok Kumar Agarwal - Executive Director (w.e.f. 14,h February, 2012)

Relative of Key Management Personnel and their Relationship:

- Smt. Amita Adlakha (Wife of MD)

ii) Enterprises where Significant Influence exists :

- Uttam Industrial Engineering Limited

- Lipi Boilers Ltd.

- The Standard Type Foundry Pvt.Ltd.

- Uttam Sucrotech Limited

- Shubham Sugars Limited

- Adharshila Capital Services Ltd.

- Pariksha Fin-lnvest-Lease Ltd.

- Uttam Adlakha & Sons Holdings Pvt. Ltd.

(Formerly known as G.M.Colonisers Pvt.Ltd.)

- Sekhri Finance & Investment Pvt. Ltd.

- New Castle Finance & Leasing Pvt. Ltd.

- Rajan & Sons HUF

- Uttam Distilleries Ltd.

13. After considering sufficient availability of raw materials and the sugar inventory available with the company for disposal as well as, the fact that there is a substantial increase in cogeneration capacity backed by agreement for supply of power with State Government and starting of operations of Distillery unit in the beginning of next financial year, resulting into de-risking of the business operations. The Company, out of the total unrecognized Deferred Tax assets on account of unabsorbed business loss and unabsorbed depreciation as a matter of abundant caution has during the year recognized deferred tax assets only on account of unabsorbed depreciation aggregating to Rs.2500 lacs to the extent of future reversal of Deferred Tax Liability and virtual certainty in accordance with Accounting Standard (AS) - 22 on 'Accounting for Taxes on Income'.

14. The financial statements are prepared under the historical cost convention and are in accordance with the requirements of Companies Act, 1956, applicable Accounting Standards and accepted accounting principles including the principle of going concern despite erosion of more than fifty percent of net worth as the promoters have committed to provide continued financial and operational support to the company for its successful operations in the foreseeable future. Also the management expects improvement in the business results in the year ended March 31, 2013 to continue in the foreseeable future primarily due to the fact that there is .substantial increase in cogeneration capacity backed by agreement for supply of power unit with State Government, starting of operations of distillery plant in the beginning of next financial year and better sugar realization, the Financial statements have, therefore, been prepared on going concern basis.

15. The company has identified certain fixed assets which are being retired from active use and are being held for sale as on balance sheet date and the management is confident to dispose off these assets in next financial year. Accordingly these assets have been written down to net realizable value, based on best estimates available with the company and have been disclosed as Other Current Assets under the head 'Fixed assets held for disposal'.

16. The previous year figures have been re-arranged, regrouped and reclassified wherever necessary and the figures are rounded off to nearest rupee lacs.

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Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) amounting to Rs. 4795.55 Lacs (Previous Period Rs.5069.36 Lacs)

2. Contingent Liabilities not provided for:

a) Bank guarantee in favour of U.P.Pollution Control Board Rs. 17.00 Lacs (Previous Period Rs. 1.00 Lac).

b) Bank guarantee in favour of Deputy Commissioner Commercial Tax, Dehradun Rs.Nil (Previous Period Rs. 22.19 Lacs).

c) Letter of credit in favour of suppliers Rs. 716.03 Lacs (Previous Period Rs.610.39 Lacs).

d) Excise duty / Sales Tax / Income Tax demands and show cause notices aggregating to Rs. 676.46 Lacs (Previous Period Rs.608.62 Lacs) against which company / Department has preferred appeals/filed replies. However in respect of certain notices since there is no present and possible obligation of any kind and based on the legal opinion, the same has not been considered as liability of any kind.

e) In respect of pending court cases by/against ex-employees amount not ascertainable at this stage.

f) Cane Price payable, if any, for the season 2007-08, presently not ascertainable, (Refer Note no. 8(a)).

g) Preference Dividend payable on Cumulative Redeemable Preference Shares Rs. 407.14 lacs (Previous Period Rs. 113.52 lacs).

3. Amount of borrowing cost capitalized to fixed assets during the year is Rs. 840.99 Lacs (Previous Period Rs. 905.30 Lacs).

The Co-Generation units at Khaikheri (Distt. Muzaffarnagar) and Shermau (Distt. Saharanpur) had been kept in abeyance for non achievement of financial closure and the interest thereafter amounting to Rs. 13.17 lacs (Previous Period Rs. 79.35 Lacs)has been charged to Profit and loss account in accordance with the Accounting Standard (AS) - 16 on "Borrowing Costs".

4. All the Current Assets, Loans and Advances, in the opinion of the Board, have a value on realization which in the ordinary course of business shall at least be equal to the amount, at which it is stated in the Balance Sheet.

5. Advances recoverable in cash or in kind as appearing in schedule no. 10 Rs.5.39 Lacs (Previous Period Rs. 3.78 Lacs) as other advances and also capital advances as appearing in schedule no. 6 of Balance Sheet includes a sum of Rs. 1550.98 Lacs (Previous Period Rs. 1920.29 Lacs) given against purchase of capital goods in ordinary course of business to companies in which some directors of the company are interested as its directors/share- holders.

6. As per the Accounting Standard (AS)-17 on 'Segment Reporting' issued by The Institute of Chartered Accountants of India, presently there is only one reportable segment i.e. Sugar.

7. (a) Consequent to the interim order of the Hon'ble Supreme Court, Company .has accounted for the Sugar Cane purchases liability for the season 2007-08 at Rs.110/- per quintal in respect of its units situated in State of Uttar Pradesh, instead of State Advised Price (SAP) of Rs.125/- per quintal fixed by the Government. Necessary adjustment, if any, will be given effect by the Company in accordance with the final order of Hon'ble Supreme Court in this matter.

(b) Raw material consumed includes Rs. Nil (Previous Period Rs.373.34 lacs) being the differential cane price for the Season 2007-08 paid in accordance with the State Advised Price(SAP) fixed by the State Government of Uttarakhand.

8. The Company has made an investment of the requisite amount for setting up New Projects in the state of Uttar Pradesh in accordance with the UP Sugar Industry Promotion Policy,2004 and has accordingly filed application for eligibility under the above policy, which is still pending. However, the new State Government has terminated the Policy with effect from June 4,2007 and has expressed its intention to introduce another policy. Company has been legally advised that it is eligible for the benefits under the said policy.

9. Sundry Creditors - others includes short term loan of Rs. 3860.32 Lacs (including interest accrued Rs.20.31 lacs) (Previous Period Rs. 5042.61 lacs (including interest accrued Rs.42.61 lacs)) from Punjab National Bank under the scheme for loan to farmers against Sugar Cane Receivables wherein the Company is acting as 'Management and Collection Agent'.

10. In accordance with Accounting Standard (AS)-28 'Impairment of Assets' issued by the Institute of Chartered Accountants of India, the Company has carried out an exercise to ascertain the impairment, if any, in the carrying value of its fixed assets. However no such case was found.

11. Company availed a term loan of Rs. 3365.00 Lacs (Previous Period Rs.3365.00 Lacs) for payment of cane dues for the season 2006-07 and 2007-08 as per scheme for "Extending Financial Assistance to Sugar Undertakings 2007" issued by Government of India. As per the Scheme the interest charged by the bank on such loan is to be reimbursed by the Government of India. A sum of Rs. 250.50 Lacs was recoverable as on 31st March, 201 ^Pre- vious Period Rs.527.21 lacs), pending reimbursement, the same has been included in 'Advance Recoverable in cash or Kind' in Schedule '10'.

12. The Company's debt had been rescheduled / restructured by Corporate debt Restructuring Empowered group (CDR EG) considering 1st July 2009 as cut off date'. The restructuring package has been given effect in accor- dance with the approvals/ sanctions received from all the term lenders.

13. Related Party Disclosures:-

In accordance with the requirements of Accounting Standard (AS)-18 on 'Related Party Disclosure' issued by The Institute of Chartered Accountants of India, the names of the related parties where control exist and/or with whom transaction have taken place during the Year and description of relationships as identified and certified by the management are:

A. Parties where control exists NIL

B. Other related parties where transaction have taken place during the Year

i) Key Management Personnel (KMP):

Sh.Raj Kumar Adlakha - Managing Director (MD)

Sh. Pasha Biswas - Whole Time Director

Relative of Key Management Personnel and their Relationship:

- Smt. Amita Adlakha (Wife of MD)

ii) Enterprises where Significant Influence exists :

- Uttam Industrial Engineering Limited

- Lipi Boilers Ltd.

- The Standard Type Foundry Pvt.Ltd.

- Uttam Sucrotech Limited

- Shubham Sugars Limited

- Adharshila Capital Services Ltd.

- Pariksha Fin-lnvest-Lease Ltd.

- G.M.Colonisers Pvt. Ltd.

- Sekhri Finance Investment Pvt. Ltd.

- New Castle Finance & Leasing Pvt. Ltd.

14. After considering sufficient availability of raw materials and the sugar inventory available with the company for disposal as well as capacity of power, resulting into de-risking of the business operations, the management is confident that there is virtual certainty that sufficient future taxable income will be available against which deferred tax asset on account of unabsorbed business loss amounting to Rs. 4765.11 lacs will be realized in the normal course of business. However, the management, out of abundant caution, has decided to restrict recognition of deferred tax assets on account of unabsorbed business loss during the Year.

15. The figures for the current year comprises twelve months whereas the corresponding previous period figures are for a period of fifteen months from 1st January 2009 to 31st March 2010, as such not comparable. The previous period figures have been re-arranged, regrouped and reclassified wherever necessary.

16. The Other information as required under Paragraphs 3,4 and 4-D of Part-Ill of Schedule VI of the Companies Act, 1956 not given being either Nil or Not Applicable.

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Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) amounting to Rs.5069.36 Lacs (Previous Period Rs.7988.79 Lacs)

2. Contingent Liabilities not provided for:

a) Bank guarantee in favour of U.P.Pollution Control Board Rs. 1.00 Lac (Previous Period Rs. 1.00 Lac).

b) Bank Guarantee in favour of Chief Director (Sugar) Department of Food and Public Distribution, Ministry of Consumer affairs, New Delhi Rs.Nil (Previous Period Rs. 200.00 Lacs).

c) Bank Guarantee in favour of Deputy Commissioner Commercial Tax, Dehradun Rs.22.19 Lacs (Previous Period Rs.Nil).

d) Letter of credit in favour of suppliers Rs. 610.39 Lacs (Previous Period Rs. 1634.24 Lacs).

e) Excise duty / Sales Tax / Income Tax demands and show cause notices aggregating to Rs. 608.62 Lacs (Previous Period Rs. 770.27 Lacs) against which company / Department has preferred appeals/filed replies. However in respect of certain notices since there is no present and possible obligation of any kind and based on the legal opinion, the same has not been considered as liability of any kind.

f) In respect of pending court cases by/against ex-employees amount not ascertainable at this stage.

g) Cane Price payable, if any, for the season 2007-08, presently not ascertainable, {Refer Note no. 9(a)}.

h) Preference Dividend payable on Cumulative Redeemable Preference Shares Rs. 113.52 lacs.

3. Amount of borrowing cost capitalized to fixed assets during the period is Rs. 905.30 Lacs (Previous Period Rs. 1282.51 Lacs). The Co-Generation units at Khaikheri (Distt. Muzaffamagar) and Shermau (Distt. Saharanpur) had been kept in abeyance for non achievment of financial closure and the interest thereafter amounting to Rs. 79.35 lacs has been charged to Profit and loss account in accordance with the Accounting Standard (AS)-16 on "Borrowing Costs".

4. All the Current Assets, Loans and Advances, in the opinion of the Board, have a value on realization which in the ordinary course of business shall at least be equal to the amount, at which it is stated in the Balance Sheet.

5. Advances recoverable in cash or in kind as appearing in schedule no. 11 include Rs. Nil (Previous Period Rs. 4.20 Lacs) paid as share application money and Rs. 3.78 lacs (Previous Period Rs. 8.93 lacs) as other advances and also capital advances as appearing schedule no. 5 of Balance Sheet include a sum of Rs. 1920.29 lacs (Previous Period Rs. 1503.91 lacs) given against purchase of capital goods in ordinary course of business to companies in which some directors of the company are interested as its directors/shareholders.

6. Balances of Certain Debtors, Creditors and Loans & Advances are subject to reconciliation and adjustments, if any.

7. As per the Accounting Standard (AS)-17 on Segment Reporting issued by The Institute of Chartered Accountants of India, presently there is only one reportable segment i.e. Sugar.

8. (a) Consequent to the interim order of the Honble Supreme Court, Company has accounted for the Sugar Cane purchases liability for the season 2007-08 at Rs.110/- per quintal in respect of its units situated in State of Uttar Pradesh, instead of State Advised Price (SAP) of Rs.125/- per quintal fixed by the Government. Necessary adjustment, if any, will be given effect by the Company in accordance with the final order of Honble Supreme Court in this matter.

(b) Raw material consumed includes Rs.373.34 lacs being the differential cane price for the Season 2007-08 paid in accordance with the State Advised Price(SAP) fixed by the State Government of Uttarakhand.

9. The Company has made an investment of the requisite amount for setting up New Projects in the state of Uttar Pradesh in accordance with the UP Sugar Industry Promotion Policy,2004 and has accordingly filed application for eligibility under the above policy, which is still pending. However, the new State Government has terminated the Policy with effect from June 4, 2007 and has expressed its intention to introduce another policy. Company has been legally advised that it is eligible for the benefits under the said policy.

10. Sundry Creditors - others includes short term loan of Rs. 5042.61 Lacs (including interest accrued Rs.42.61 lacs) from Punjab National Bank under the scheme for loan to farmers against Sugar Cane Receivables wherein the Company is acting as Management and Collection Agent.

11. In accordance with Accounting Standard (AS)-28 Impairment of Assets issued by the Institute of Chartered Accountants of India, the Company has carried out an exercise to ascertain the impairment, if any, in the carrying value of its fixed assets. However no such case was found.

12. Company availed a term loan of Rs. 3365.00 Lacs (Previous Period Rs.3365.00 Lacs) for payment of cane dues for the season 2006-07 and 2007-08 as per scheme for "Extending Financial Assistance to Sugar Undertakings 2007" issued by Government of India. As per the Scheme the interest charged by the bank on such loan is to be reimbursed by the Government of India. A sum of Rs. 527.21 Lacs was recoverable as on 31st March, 2010, pending reimbursement, the same has been included in Advance Recoverable in cash or Kind in Schedule 11.

13. The Companys debt had been rescheduled / restructured by Corporate debt Restructuring Empowered group (CDR EG) considering 1st July 2009 as cut off date. During the period, the restructuring package has been given effect in accordance with the approvals/ sanctions received from all the term lenders.

14. Related Party Disclosures:—

In accordance with the requirements of Accounting Standard (AS)-18 on Related Party Disclosure issued by The Institute of Chartered Accountants of India, the names of the related parties where control exist and/or with whom transaction have taken place during the Period and description of relationships as identified and certified by the management are :

b) In the absence of Profits during the period, no commission is due/payable to the Managerial Personnel. Hence computation of Commission under section 198 & 309 of the Companies Act, 1956 is not furnished.

c) The remuneration as approved by the Board, paid to the managerial personnel during the period has been considered as the minimum remuneration stipulated under Schedule XIII of the Companies Act,1956.

d) During the period under report, payment of minimum remuneration as per schedule XIII of the Companies Act, 1956 of Rs. 34.93 lacs made to managerial personnel for which the steps are being taken to obtain approval from Central Government.

NOTES:

i) Sales appearing in the Profit & Loss Account also include sale of Bagasse Rs. 481.85 Lacs (Previous Period Rs.837.32 Lacs), sale of Bio Fertilizer Rs. 176 Lacs (Previous Period Rs. 101,75 Lacs) and other sale Rs. 14.63 Lacs (Previous Period Rs. 51.86 Lacs). Sales quantity of Molasses includes wastage of 311 quintal (Previous Period 68564 Quintal)

ii) Production and stock of Sugar includes Brown Sugar (BISS). Production of Power includes captive consumption/ import against power banked of 92216985 KWH (Previous Period 90084925 KWH) and Stocks of Power represent power banked.

iii) Value has been Rounded-Off to the nearest lacs rupee and the quantities have been Rounded-off to the nearest Qtl.

iv) Closing Stock of By Products as appearing in Balance Sheet and Profit & Loss Account include stock of Bagasse Rs. 720.13 Lacs (Previous Period Rs. 116.82 Lacs) and stock of Bio-Fertilizer Rs. 236.69 Lacs (Previous Period Rs. 319.66 Lacs) and other Rs. 59.92 Lacs (Previous Period NIL)

15. During the period, the Company has purchased / imported raw sugar aggregating 7000 MT for Rs. 1176.02 Lacs in terms of advance license issued by the office of Director General of Foreign Trade without payment of Custom Duty. The company is required to complete the export of white sugar aggregating 7000 MT by 6th march 2011. The management is confident of meeting the export obligation of 7000 MT and no loss is foreseen.

16. After considering sufficient availability of raw materials and the sugar inventory available with the company for disposal as well as capacity of power, resulting into de-risking of the business operations, the management is confident that there is virtual certainty that sufficient future taxable income will be available against which deferred tax asset on account of unabsorbed business loss amounting to Rs.4765.11 lacs will be realized in the normal course of business. However, the management, out of abundant caution, has decided to restrict recognition of deferred tax assets on account of unabsorbed business loss during the period.

17. The previous period figures have been re-arranged, regrouped and reclassified wherever necessary.

18. The Other information as required under Paragraphs 3,4 and 4-D of Part-Ill of Schedule VI of the Companies Act, 1956 not given being either Nil or Not Applicable.

19. Additional information as required under Part IV of Schedule VI of the Companies Act, 1956.