Mar 31, 2018
1) Corporate Information:
DhampurSugar Mills Limited (âDSMLâ orâthe Companyâ) having CIN No. L15249UP1933PLC000511 is a public company domiciled in India and incorporated under the provisions of the Companies Act applicable in India and has its registered office at Dhampur, Uttar Pradesh, India.
Its shares are listed on two stock exchanges in India namely, National Stock Exchange of India and Bombay Stock Exchange of India. The company is engaged mainly in the manufacturing and selling of sugar, chemicals, ethanol and co-generation of power.
2. Use of estimates and management judgements
The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) requires management of the company to make judgments, estimates and assumptions that affect the reported amount of revenues, expenses, assets,liabilities and related disclosures concerning the items involved as well as contingent assets and liabilities at the balance sheet date.
The estimates and managementâs judgments are based on previous experience and other factors considered reasonable and prudent in the circumstances. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected
The areas involving critical judgement are as follows:
i. Useful lives of property plant and equipment / intangible assets
Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives, after taking into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation / amortisation to be recorded during any reporting period. The useful lives and residual values are based on the Companyâs historical experience with similar assets and take into account anticipated technological changes. The depreciation / amortisation for future periods is revised if there are significant changes from previous estimates.
ii. Provisions and contingencies
The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Ind AS 37, âProvisions, Contingent Liabilities and Contingent Assetsâ. The evaluation of the likelihood of the contingent events has required best judgment by management regarding the probability of exposure to potential loss The timing of recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change.
iii. Post-employment benefit plans
Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, the rate of salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate and documented. However, any changes in these assumptions may have a material impact on the resulting calculations.
iv. Income taxes
The Companyâs tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions
Deferred tax assets are recognised for unused tax losses and unused tax credit to the extent that it is probable that taxable profit would be available against which the losses could be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.
8 (a) The Company has fair valued its investments in its subsidiary âDhampur International PTE Ltd.â and use that fair value as deemed cost for measuring such investments at the time of transition to Ind AS i.e. At April 01, 2016
# The investment is valued at â 1/8 (b) During the previous year the Company has promoted and incorporated a Wholly Owned Subsidiary in the name of of EHAAT Limited and subscribed the 1,00,000 Equity Share Capital of the Company on October 22, 2016.
During the current financial year, the Company has been alloted 16,70,000 Equity Shares of EHAAT Limited of â 10/- each fully paid up against the sale consideration of receivable in respect of transfer of Rural Distribution Division of Consumer Products through Slump Sale agreement. The Company has further subscribed 20,00,000 Equity Shares of EHAAT Limited of â 10/- each fully paid up under right issue.
8 (c) During the previous year, the Company has acquired 4,28,400 equity shares of DETS Limited (Constituting 51% of Equity Share Capital of DETS Limited) and became the holding Company of the DETS Limited w.e.f. October 03, 2016.
Note 3. a - Terms/right attached to equity shares
i) The Company has only one class of equity shares having a par value of â 10 per share. Each holder of equity shares is entitled to one vote per share.
ii) The Company declares and pays dividend in Indian rupees. The dividend if proposed by the Board of Directors, is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the shareholders of equity shares are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Note 3.b - During the previous year 2016-17, the Company has issued and allotted 61,72,655 equity shares of Rs. 10 each at a premium of Rs. 88.68 per equity share by way of Qualified Institutional Placement.
Note 4.1: This is item of other comprehensive income arising from remeasurement of defined benefit obligation net of income tax, which is directly recognised in retained earning.
Note 4.2 : Nature and purpose of reserves Capital redemption reserve
Capital redemption reserve of Rs. 3.72 crores was created against the redemption of cumulative preference shares Capital reserve
Capital reserve was created against amalgamation.
Securities premium reserves
Securities premium reserves is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Companies Act, 2013.
FVOCI equity investment
The Company has elected to recognise changes in fair value of certain investments in equity securities through OCI as Other Reserves. The Company transfers amount from this reserves to retained earnings when the relevant investment is sold and realised.
Storage fund/reserve for molasses
The storage fund for molasses has been created to meet the cost of construction of molasses storage tank as required under UttarPradesh Sheera Niyantran (Sansodhan) Adesh, 1974.
General reserve
This represents appropriation of profit after tax by the Company.
Retained earnings
This comprise Companyâs undistributed profit after taxes.
b) Nature of security in respect of long term borrowings :
(i) Rupee term loan from PNB under the Government sponsored subvention Scheme for Extending Financial Assistance to Sugar Undertakings (SEFASU), 2014 are secured by third parri passu charge on block of fixed assets of Company and personal guarantee of four directors.
(ii) Rupee term loan from PNB under the Government sponsored Scheme for Extending Soft loan to sugar mills are secured by third parri passu charge on block of fixed assets of five units of the Company and personal guarantee of promoter directors.
(iii) Rupee term loan from PNB are secured by first parri passu charge on block of fixed assets of the Company and personal guarantee of promoter directors.
(iv) Rupee term loan from CBOI are secured by first parri passu charge on block of fixed assets of the Company and personal guarantee of promoter directors.
(v) Rupee term loan from UCO Bank are secured by subservient charge over land and building, plant & machinery and other immovable and movable fixed assets of the Company present and future and personal guarantee of two promoter directors.
(vi) Rupee term loan from Sugar Development Fund (SDF) are secured by first pari passu charge over the movable and immovable assets of DSM Sugar Rajpura, a unit of the Company, situated at Rajpura.
(vii) Rupee term loan from Sugar Development Fund (SDF) are secured by second exclusive charge over the movable and immovable assets of one of its unit i.e. Dhampur sugar unit, situated at Dhampur.
(viii) Rupee term loan from Sugar Development Fund (SDF) are secured by second exclusive charge over the movable and immovable assets of one of its unit i.e. DSM Sugar Asmoli, situated at Asmoli.
(ix) Rupee term loan from Sugar Development Fund (SDF) are secured by second exclusive charge over the movable and immovable assets of one of its unit i.e. DSM Sugar Rajpura, situated at Rajpura.
(x) Rupee term loan from Sugar Development Fund (SDF) are secured by second exclusive charge over the movable and immovable assets of one of its unit i.e. DSM Sugar Mansurpur, situated at Mansurpur.
(xi) All other term loans from banks are secured by first parri passu charge on all movable and immovable assets except book debts, stock in trade, raw material, spare parts and other current assets and are guaranteed by promoter directors.
c) Nature of security in respect of short term borrowings :
Working capital loans from Punjab National Bank are secured :
- by way of first parri passu charge and pledge of stocks of sugar and sugar-in-process both preseent and future.
- by way of first parri passu charge and hypothecation of molasses, bagasse, general stores, chemicals unit raw material, co-geneartion unit raw material, book debts etc. both present and future of the Company.
- by way of third parri passu charge on the block of fixed assets/immovabale propoerties of the Company
- by personal guarantee of promoter directors of the Company
Working capital loans from Bank of Baroda are secured :
- by way of pledge of stocks of sugar and sugar-in-process both preseent and future on parri passu basis with other banks.
- by way of hypothecation of stocks and other current assets both preseent and future of the Cogen-Amoli unit of the Company.
- by way of First parri passu charge on the book debts of the Company
- by way of Third parri passu charge on the block of fixed assets of the Company
- by personal guarantee of promoter directors of the Company
Working capital loans from Central Bank of India are secured :
- by way of pledge of stocks of sugar and sugar-in-process both preseent and future on parri passu basis with other banks.
- by way of hypothecation of molasses, bagasse, general stores both present and future on parri passu basis of the Company.
- by way of first parri passu charge on the current assets of the Company
- by way of third parri passu charge on the land and buildings of the Company Working capital loans from all District Co-operative Banks are secured :
- by way of pledge ofstocks ofsugar
- by personal guarantee of promoter directors of the Company Working capital loans from Prathma Bank are secured :
- by way of pledge of stocks of sugar and sugar-in-process
- by way third parri passu charge on the block of fixed assets , both present and future, of the Company
- by personal guarantee of promoter directors of the Company Working capital loans from Sarva U.P. Gramin Bank are secured :
- by way of first parri passu charge and pledge of stocks of sugar and sugar-in-process both preseent and future.
- by way of hypothecation of molasses, bagasse, general stores both preseent and future on parri passu basis of the Company.
- by way of third parri passu charge on the immovable properties of the Company
Working capital Demand loans from State Bank of India against Warehouse receipts of NBHC are secured :
- by way of first and exclusive charge on the stocks of sugar
- by personal guarantee of promoter directors of the Company
The Company has initiated steps for revising the TDS forms to remove various defects due to which demands were raised by authorities and is confident that the demand will be substantially reduced after these rectification.
The decision taken by the government of Uttar Pradesh to waive liability on interest payable by the sugar industry on delayed payment of cane price for the sugar seasons 2012-13, 2013-14 and 2014-15 is remanded back for reconsideration by honorable Allahabad High Court. The sugar industry and the Company believes that UP Government will not reverse its decision for waiver of interest.
The amount shown above represents the best possible estimates arrived on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of the different legal process which have been invoked by the Company or the claimants as the case may be, therefore it cannot be estimated accurately. The Company does not expect any reimbursement in respect of above contingent liabilities.
In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the grounds that there are fair chances of successful outcome.
Note 5 The Company is eligible to receive various specific grants announced by Central and UP State Government for Sugar Industry by way of prduction subsidy, reimbursement of society commission and interest subvention on certain term loan, Loans at concessional rate etc. The Company is also eligible to receive grant announced by U.P State Government for promotion of industry in general under UPSIPP Scheme 2013. The Company has recognised these Government grants in the following manners:
Notes :
a) The Central Government vide its Notification No. 1(10)/2015-SP-I dated September 18, 2015 announced Minimum Indicative Export Quota (MIEQ) under tradeable export scrip scheme in order to export surplus sugar inventory out of the country. Under the said scheme, the Company was allotted quota of 65488.20 MT for export in respect of its all five sugar units. Further, the Central government vide its Notification No. 20(43)/2015-SP-I dated December 2, 2015 announced a scheme for extending production subsidy @ â 4.50 per quintal of actual cane crushed during sugar season 2015-16 or the proportionate cane crushed for average sugar production of the Companyâs each units in the last three sugar seasons, whichever is lower for the Company who fulfilled 75% of its export obligation.
b) Under the UPSIPP scheme 2013, the company is eligible for the reimbursement of interest payable on loans obtained from banks/ financial institutions/ sugar development fund on account of setting up of plant and machinery in an existing sugar mill @ 5% p.a.
Further the Company is also eligible for the reimbursement of society commission based on the criteria specified in the scheme.
c) Under Interest Subvention Scheme of Extending Financial Assistance to Sugar Undertaking 2014, the company is eligible for the reimbursement of interest payable on loan from banks taken against last three sugar seasons excise duty, cess and surcharge paid on sugar by the Company.
d) The Company was eligible for government grant by way of reimbursement of Society Cane Commission @ â 3.00 per quintal of cane for the sugar season 2015-16 in accordance with the notification issued by the Government of Uttar Pradesh and accordingly had accounted for cane commission receivable aggregating to â 13.06 crore during the year ended March 31, 2016. However, the Company has written off the said amount in accordance with the notification dated December 28, 2016 issued by the Government of Uttar Pradesh as the same is no more receivable during the year ended March 31 2017,. The said write off of cane commission has been included underâCane commission subsidy written offâ under Note No. 35 -âOther expensesâ.
e) The Company had availed government grant by way of reduction of cane society commission for sugar season 2012-13 to 2014-15 as per the notifications dtd. June 12, 2015 and for the sugar season 2015-16 for retrospective effect. The Honâble Allahabad High Court vide Order dated December 21, 2017 quashed the UP State Government notifications order for reduction in cane commission rate to societies from retrospective against which UP State Government has preferred appeal before Supreme Court. Pending final decision in the matter, the Company has not recognised such claims estimated at â 47.04 crore as debts by the Company.
f) The Company was eligible for various incentives under U.P. Sugar Incentive Promotion Policy, 2004 (the scheme) which was subsequently scrapped by the State Government. The Company has filed writ petition before Honâble Allahabad High Court (Lucknow Bench) for enforcement of the scheme and settlement of incentive claims. As per the erstwhile scheme, the Company was eligible for capital subsidy of Rs. 89.89 crores i.e. @10% of the investments made (already vetted Rs. 50.80 crores) and revenue subsidy for reimbursement of taxes and other charges aggregating to Rs. 60.50 crores upto the prescribe period of ten years for incentive. The Company has not recognised these grants.
Note 40 Details of loans and advances; investment made; guarantee given and security provided as required to be disclosed as per provision of section 186(4) of Companies Act, 2013 have been disclosed in Note. No. 8, Note No. 9
Note 6 Disclosures as required by the Listing Agreement :
Loans and advances given to Subsidiary : (Also refer note no. 44)
Note 7 Operating lease
I Operating lease obligation (As a lessee): - The Company has taken various premises on operating lease for lease period of 1 year to 3 years from the date of lease. The lease period may be further extended as per mutual decision of the parties. In all the leases, there is escalation clause for increase in rentals yearly or alternative year. Details of future minimum lease payments under non cancellable operating lease are as follows:
II Operating lease recognized (As a lessor): - The Company has given various premises on operating lease for lease period of 1 year to 15 years from the date of lease. The lease period may be further extended as per mutual decision of the parties. In all the leases, there is escalation clause for increase in rentals yearly or alternative year or after 5 years Details of future minimum lease rentals to be received under non cancellable operating lease are as follows:
III Operating lease recognized (Sub-lease):- The Company has given premises on sublease in year 2017-18. The Company has classified the sublease as an operating lease. Details of future minimum lease rentals to be received under non cancellable operating lease are as follows:
Note 8 In the opinion of the Board, current assets and loans and advances have realisable value in the ordinary course of business at least equal to the value at which they are stated in the balance sheet. The Board is also of opinion that the diminution in the value of investments in EHAAT Limited (wholly owned subsidiary) and DETS Limited (Holding 51% of Equity Shares), is due to initial losses of new start up businesses, which is of temporary nature.
# Short term benefits Including remunerations, bonus, due leave, sitting fee, commission on accrual basis and value of perquisites.
* As the liability for gratuity is provided on actuarial basis for the Company as a whole, amounts accrued pertaining to key managerial personnel are not included above.
C. Terms and Conditions and Settlement
The transactions with the related parties are made on term equivalent to those that prevail in armâs length transactions. The assessment is under taken each financial year through examining the financial position of the related party and in the market in which the related party operates. Outstanding balances at the year end are un-secured and settlement occurs in cash.
Note 9 Disclosures As Required By Indian Accounting Standard (Ind As) 108 Operating Segments Identification of Segments
The Companyâs operating segments are established on the basis of those components of the Company that are evaluated regularly by the Board of Directors (theâChief Operating Decision Makerâ as defined in Ind AS 108 -âOperating Segmentsâ).
The Chief Operational Decision Maker evaluates the Companyâs performance and allocates resources based on an analysis of various performance indicators by Business Segment. Segment performance is evaluated based on their revenue growth, operating income and return on capital employeed. Operating Segments have been identified by the management and reported taking into account, the nature of products and services, the differing risks and returns, the organization structure, and the internal financial reporting systems.
Operating Segments
The Company is organized into three main business segments based on the products include :
- Sugar which consists of manufacture and sale of Sugar and its byproducts and,
- Chemicals/Distillery which consists of manufacture and sale of RS, SDS, ENA, Ethanol, Ethyl Acetate, IMFL etc.
- Power which consists of co-generation and sale of power
No operating segments have been aggregated in arriving at the reportable segments of the Company
Geographical segments
Since the Companyâs activities/ operations are primarily within the country and considering the nature of products/ services it deals in, the risks and returns are same and as such there is only one geographical segment.
Segment Accounting Policies: In addition to the significant accounting policies applicable to the operating segments as set out in note 2, the accounting policies in relation to segment accounting are as under:
a. Segment revenue and results:
Revenue and expenses directly attributable to segments are reported under each reportable segment.
Other expenses and incomes which are not directly attributable to any business segment are shown as unallocable expenditure (net of unallocated income).
b. Segment assets and liabilities:
âAssets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. Unallocated assets include deferred tax, investments, interest bearing deposits loans to subsidiary and income tax refund. Unallocated liabilities include interest bearing liabilities, tax provisions and deferred tax.Capital expenditure pertains to additions made to fixed assets during the year and includes capital work in progressâ
c. Inter segment sales/transfer:
Transactions between segments are primarily for materials which are transferred at cost /market determined prices. These transactions are eliminated in consolidation.
(i) Defined contribution plan :
Details of contribution to defined contribution plan to Regional Provident Commissioner and the Central Provident Fund recognised as expense during the period are as under :
(ii) Defined benefit plan :
(a) In respect of Non funded defined benefit scheme of gratuity (Based on Actuarial Valuation) :
The gratuity plan is governed by the payment of Gratuity Act,1972. Under the said Act an employee who has completed five years of services is entitled to specific benefit. The Gratuity plans provide a lumpsum payments to employee at retirement, death, incapacitation or termination of employment . The level of benefits provided depends on the memberâs length of service & salary at retirement age.
The company is exposed to various risks in providing the above gratuity benefit which are as follows:
Interest rate risk : The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements).
Salary Escalation Risk : The present value of the defined benefit plan is calculated with the assumption of salary increase 0.50% per annum of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the planâs liability.
Actual mortality & disability : deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.
The following tables summarise the components of net benefit expense recognised in the statement of Profit and Loss
Sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
The sensitivity analysis above has been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring as at the balance sheet date.
All sensitives are calculated using the same actuarial method as for the disclosed present value of the defined benefits obligation at year end.
b) In respect of funded defined benefit scheme of provident fund (Based on actuarial valuation) :
The Companyâs Contribution to defined benefit plan to the irrecoverable trust, set up by the Company aggregating to Rs. 5.47 Crore (P. Y. Rs. 3.91 Crore) has been recognised in statement of profit and loss account. The Company is under obligation to markup any short fall in the fund.
The following table sets out the status of Provident Fund as per the actuarial valuation by the independent Actuary appointed by the Company:
Note 10 : Financial Risk Management
The Companyâs principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Companyâs operations. The Company principal financial asset includes loan , trade and other receivables, and cash and others financial assets that arise directly from its operations.
The Companyâs activities are exposed to market risk, credit risk and liquidity risk.
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other risks, such as regulatory risk and commodity price risk. The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. â
(a) 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 Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs borrowings obligations with floating interest rates.
(b) Foreign currency risk
âForeign 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 Companyâs exposure to the risk of changes in foreign exchange rates is limited to the Companyâs operating activities (when revenue or expense is denominated in a foreign currency), which are not material.â
Foreign currency sensitivity
1% increase or decrease in foreign exchange rates will have no material impact on Profit.
(c) Regulatory risk
Sugar industry is regulated both by Central Government as well as State Government. Central and State Governments policies and regulations affects the Sugar industry and the Companyâs operations and profitability. Distillery business is also dependent on the Government policy.
(d) Commodity price risk
Sugar industry being cyclical in nature, realisations get adversely affected during downturn. Higher cane price or higher production than the demand ultimately affect profitability. The Company has mitigated this risk by well integrated business model by diversifying into co-generation and distillation, thereby utilizing the by-products.
Credit risk
âCredit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Companyâs sugar sales are mostly in cash. Power and ethanol are sold to state government entities, thereby the credit default risk is significantly mitigated.
The impairment for trade receivables are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Companyâs past history, existing market conditions as well as forward looking estimates at the end of each balance sheet date.â
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, subsequently these are recognised in the Statement of Profit and Loss.
The Company major exposure of credit risk is from trade receivables, which are unsecured and derived from external customers.
Expected credit loss for trade receivable on simplified approach :
The ageing analysis of the trade receivables (gross of provision) has been considered from the date the invoice falls due:
The Company uses a provision matrix to determine impairment loss on portfolio of its trade receivable. The provision matrix is based on its historically observed default data over the expected life of the trade receivable and is adjusted for forward- looking estimates. At every reporting date, the historically observed default rates are updated and changes in forward-looking estimates are analysed. In case of probability of non collection, default rate is 100%. However, there is no material expected credit loss based on the past experience.
âThere is no change in the loss allowances measured using expected credit loss model (ECL).The credit risk on cash and bank balances is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.â
Liquidity Risk
The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of cash credit facilities and short term loans.
Note 11 : Capital Management
(a) Risk Management
âFor the purpose of the Companyâs capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The Companyâs capital management is intended to maximise the return to shareholders for meeting the long-term and short-term goals of the Company through the optimization of the debt and equity balance.
The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new shares.
In order to achieve this overall objective, the Companyâs capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. The Company has complied 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 March 31, 2018 and March 31, 2017.
Note 12: Transition to Ind AS
These financial statements for the year ended March 31,2018 are the first Ind AS financials prepared in accoradnce with Ind AS notified under Companies (Indian Accounting Standards) Rules, 2015 (as amended). The adoption of Ind AS was carried out in accordance with Ind AS 101, using April 1, 2016 as the transition date. Ind AS 101 requires that all Ind AS standards and interpretations that are effective for the Ind AS financial statements for year ended March 31, 2018, be applied consistently and retrospectively for all fiscal years presented. All applicable Ind AS have been applied consistently and retrospectively wherever required. For the periods upto and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with the accounting standards notified under section 133 of the Companies Act 2013, read together with Paragraph 7 of the Companies(Accounts) Rules,2014(Indian GAAP).
Accordingly, the Company has prepared its financial statement to comply with the Ind AS for the year ending March 31, 2018, together with the comparative date as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, Companyâs opening balance sheet was prepared as at April 01, 2016, the date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at April 01, 2016 and the financial statements as at and for the year ended March 31, 2017.
Note 13 (A): Exemptions and Exceptions opted by the Company on the date of transition:-
Ind AS 101 allows first-time adopters certain exemptions and exceptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions and exceptions:
a) Exemptions and Exceptions from retrospective application
1. The Company has elected not to apply Ind AS 103- Business Combinations, retrospectively to past business combinations that occurred before April 01, 2016. Consequent to use of this exemption from retrospective application:
i) The carrying amount of assets and liabilities acquired pursuant to past business combinations and recognised in the financial statements prepared under Previous GAAP, are considered to be the deemed cost under Ind AS, on the date of acquisition. After the date of acquisition, measurement of such assets and liabilities is in accordance with respective Ind AS. Also, there is no change in classification of such assets and liabilities;
ii) The Company had not recognised assets and liabilities that neither were recognised in the financial statements prepared under Previous GAAP nor qualify for recognition under Ind AS in the Balance Sheet of the acquire;
iii) The Company had excluded from its opening Balance Sheet (As at April 1, 2016), those assets and liabilities which were recognised in accordance with Previous GAAP but do not qualify for recognition as an asset or liability under Ind AS.
2 The Company has elected to continue with carrying value of all Property, plant and equipment under the previous GAAP as deemed cost as at the transition date i.e. April 01, 2016. Under the previous GAAP, Property, plant and equipment were stated at their original cost (net of accumulated depreciation, amortization and impairment), if any, adjusted by revaluation of certain assets.
The Company has elected to continue with the carrying value of Capital work in progress as recognized under the previous GAAP as deemed cost as at the transition date.
The Company has elected to continue with the carrying value for intangible assets (computer softwares) as recognized under the previous GAAP as deemed cost as at the transition date. Under the previous GAAP, Computer Software was stated at its original cost, net of accumulated amortization.
3. The Company fair valued its investments in its subsidiaries and used that fair value as deemed cost for measuring such investments at the time of transition to Ind AS.
Under Ind AS 109, at initial recognition of a financial asset, an entity may make an irrevocable election to present subsequent changes in the fair value of an investment in an equity instrument in other comprehensive income. Ind AS 101 allows such designation of previously recognized financial assets, as âFVTOCIâ on the basis of the facts and circumstances that existed at the date of transition to Ind AS.
Accordingly, the Company has designated its investments in certain equity instruments at fair value through other comprehensive income on the basis of the facts and circumstances that existed as at the date of transition to Ind AS.
4. The requirements of Ind AS 20 - Accounting for Government Grants and Disclosure of Government Assistance and Ind AS 109 -Financial Instruments, in respect of recognition and measurement of interest free loans from government authorities is opted to be applied prospectively to all grants received after the date of transition to Ind AS. Consequently, the carrying amount of such interest free loans as per the financial statements of the Company prepared under Previous GAAP is considered for recognition in the opening Ind AS Balance Sheet.
5. Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the Company has used Ind AS 101 exemption and assessed all arrangements for embedded leases based on conditions in place as at the date of transition.
6. Designation of previously recognised financial instruments : Ind AS 101 allows an entity to designate investments in equity instruments at FVTOCI on the basis of the facts and circumstances at the date of transition to Ind AS.
b) Estimates
The estimates as at April 01, 2016 and as at March 31, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies).
* Notes to first time adoption of Ind AS
1) FairValue of Investments
Under the previous GAAP, Long term investments were carried at cost less provision for other than temporary diminution in the value of such investment. Current investment were carried at lower of cost and fair value. Under Ind AS, the Company has the option to designate such investments either as FVTOCI or FVTPL investments. Further, in case of a subsidiary, the Company has the option to account for investment in shares either at cost/deemed cost or FVTOCI or FVTPL as at the transition date.
a) Under Ind AS, financial assets designated at fair value through profit and loss (FVTPL) are fair valued at each reporting date with changes in fair value recognized in the statement of profit and loss. Mutual fund investments have been classified as FVTPL.
b) Under Ind AS, financial assets designated at fair value through other comprehensive income (FVTOCI) are fair valued at each reporting date with changes in fair value (net of deferred taxes) recognized directly in other comprehensive income. The Company has make an irrevocable election to measure its certain equity Investments through OCI. Consequently, fair value of such equity instruments designated at FVTOCI has resulted in a increase in other comprehensive income.
c) Under Ind AS 101,The Company has an option to fair value its investments in its subsidiary Company and treated that fair value as deemed cost for measuring such investments in the opening Ind AS Balance Sheet. Accordingly the Company has fair valued one of its subsidiaries and treat that value as deemed cost for subsequent measeurement.
2) Defined benefit liabilities
Under previous GAAP, actuarial gains and losses were recognised in the statement of profit and loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability/ asset which is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income under Ind AS instead of the statement of profit and loss.
3) Deferred tax
Under previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under previous GAAP. Moreover, carryforward of unused tax credits are to be treated as deferred tax assets which was earlier considered as other non-financial assets.
In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity.
4) Sale of goods
Under previous GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is presented as a part of other expenses in statement of profit and loss.
5) Government Grant- Related to assets
Under previous GAAP, grants received related to assets has been deducted from the carrying cost of related assets. Under Ind AS, grants related to assets shall be presented in the balance sheet by setting up the grant as deferred income. The grant set up as deferred income is recognised in profit and loss on systematic basis over the useful life of assets. Consequently the Company has presented the grant as deferred income and recognised in profit and loss.
6) Borrowings and Government Grant
Under Ind AS when loans or similar assistance are provided by governments or other related institutions, with an interest rate below the current applicable market rate, the effect of this favourable interest is regarded as a government grant. The loan or assistance is initially recognised and measured at fair value and the government grant is measured as the difference between the initial carrying value of the loan and the proceeds received.
7) Security deposits
Under previous GAAP ,interest free lease security deposits(that are refundable in cash on completion of lease term) are recorded at their transaction value. Under Ind AS all financial assets are required to be recognised at fair value. Accordingly, the Company has fair valued these security deposits under Ind AS. Difference between fair value and transaction value of the security deposit has been recognised as prepaid rent. Consequent to this change, the amount of security deposits decreased as at the date of transition to Ind AS with corresponding increase in prepaid rent.
8) Equity dividend
Under previous GAAP, proposed dividends including Dividend Distribution tax (DDT) is recognised as a liability in the period to which it relates, irrespective of when it is declared. Under Ind AS, a proposed dividend is recognised as a liability in the period in which it is declared by the Company (usually when approved by shareholders in a general meeting) or paid.
Therefore, the liability for the year ended on March 31, 2016 recorded for dividend has been derecognised against retained earnings on April 01, 2016. The proposed dividend for the year ended on March 31, 2017 recognized under Indian GAAP was reduced with a corresponding impact in the retained earnings.
9) Preference share capital and dividend thereon
Under previous GAAP, the cumulative redeemable preference shares issued by the Company are treated as part of share capital and cumulative dividend which is not declared has been shown as contingent liability. Under Ind AS the same are classified as liabilities. The dividend including DDT on preference shares is recognised in Statement of Profit and Loss as finance costs.
10) Retained earnings
Retained earnings as at the transition date has been adjusted consequent to the above Ind AS transitional adjustments.
11) Cash flow statement
The transition from the previous GAAP to Ind AS has not had a material impact on Cash Flow Statement
12) Total comprehensive income and other comprehensive income
Under the previous GAAP, the Company did not present total comprehensive income and other comprehensive income. Hence, it has reconciled the previous GAAP profit to profit as per Ind AS. Further, the previous GAAP profit is reconciled to other comprehensive income and total comprehensive income as per Ind AS.
Note 14 Recent Accounting Pronouncements
Appendix B to Ind AS 21, Foreign currency transactions and advance consideration: On March 28, 2018, Ministry of Corporate Affairs (âMCAâ) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.The amendment will come into force from April 1, 2018. The Company is evaluating the effect of this on the financial statements.
Ind AS 115- Revenue from Contract with Customers: On March 28, 2018, Ministry of Corporate Affairs (âMCAâ) has notified the Ind AS 115, Revenue from Contract with Customer The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entityâs contracts with customers.
The standard permits two possible methods of transition:
- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors
- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach)â
The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018.
The Company will adopt the standard on April 1, 2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. The Company is evaluating the effect on adoption of Ind AS 115.
Note : 15 The previous yearâs including figures as on the date of transition have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year including figures as at the date of transition are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.
This is the notes to the financial statement referred to our report of evendate
Mar 31, 2017
1.- Terms/right attached to equity shares
The company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.
The company declares and pays dividend in Indian rupees. The dividend if proposed by the Board of Directors, is subject to the approval of the shareholders.
In the ensuing Annual General Meeting. In the event of liquidation, the shareholders of equity shares are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.
2. - 33,08,960 Equity shares of Rs. 10 each and 18,01,817 8% Cumulative Redeemable Preference shares of '' 100 each were allotted during the year 2013-14 to the shareholders of J K Sugar Ltd pursuant to the scheme of amalgamation without payment being received in cash.
3. Right attached to Preference shares
4. The Preference shares will constitute direct, unconditional, un-subordinated and unsecured obligations of the company and will at all times rank pari passu and without any preference among them.
5. No premature redemption option to the company, nor to the shareholders of Cumulative Redeemable Preference shares and no option to the shareholders to seek redemption in case of non-payment of dividend.
6. Terms of redemption of Preference shares
7. Nil (Previous Year 18,01,817) - 8% Cumulative Redeemable Preference Shares of Rs. 100 each are redeemable in 3 equal yearly installments commencing from April 01, 2014. The amount due for redemption as at 31st March, 2016 is Rs. Nil ( 9 Crores).
8. Nature of security
9. Rupee term loan from bank under the Government sponsored subvention Scheme for Extending Financial Assistance to Sugar Undertakings (SEFASU), 2014 of Rs. 66.94 crores are secured by third parri passu charge on block of fixed assets of the company and personal guarantee of four directors.
10. Rupee term loan from banks under the Government sponsored Scheme for Extending soft loan to sugar mills of Rs. 89.42 crores are secured by third parri passu charge on block of fixed assets of the company and personal guarantee of four directors.
11. Rupee term loans from Sugar Development Fund (SDF) of Rs. 35.68 crores are secured by pari passu First charge over the movable and immovable assets of DSM Sugar Rajpura, a unit situated at Rajpura, and balance Rs. 18.24 crores are secured by exclusive second charge on all movable and immovable assets excluding current assets of the company.
12. Rupee term Loan from Bank of Rs.150.00 crores are secured by the subservient charge on all movable and immovable assets except book debts, stock-in-trade, raw materials, spare parts and other current assets.
13. All other term loans from banks are secured by first parri passu charge on all movable and immovable assets except book debts, stock-in-trade, raw materials, spare parts and other current assets.
14. All the term loans are guaranteed by promoter directors.
15. The Company has revalued its land situated at Meerganj Unit as on 07.10.2013 and further revalued all lands as on 25.03.2016 at fair market value as valued by an independent certified valuer. Consequent to revaluation, the value of land was increased by Rs. 295.08 Crores.
16. During the year the Company has acquired the 4,28,400 equity shares of DETS Limited (Constituting 51% of Equity Share Capital of DETS Limited) and became the holding Company of the DETS Limited w.e.f. 03rd October,2016.
17. During the year the Company has promoted and incorporated a Wholly Owned Subsidiary in the name of EHAAT Limited and subscribed the 1,00,000 Equity Share Capital of the Company on 22nd October,2016.
18. The accounts have been prepared without accounting for any incentive entitlements under U.P. Sugar Incentive Promotion Policy, 2004 as the scheme has been subsequently withdrawn by the State Government. The Company has 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 is eligible for capital subsidy of Rs. 89.89 crores i.e. @10% of the investments made (already vetted Rs. 50.80 crores) and revenue subsidy for reimbursement of taxes and other charges aggregating to Rs. 60.50 crores up to the prescribed period of ten years for incentive.
19. During the year, the company earned net gain of Rs. 19.63 crores (net of expenses of Rs. 2.06 crores) on sale of 144582 numbers of Renewal Energy Certificates (RECs). These RECs were generated due to environmental concerns and allotted to the company as per Regulation on REC, notified by Central Electricity Regulatory Commission. The earning of these RECs are not an off shoot of business but an off shoot of environmental concerns and hence, the net gain from such sale has been held to be a capital receipt and not an income forming part of the operations of the company by the courts. The courts have further held that the net earning on the sale of these RECs does not fall within the definition of income under the Income Tax Act, 1961 and hence could not be taxed under the normal provisions of taxation as well as under the provisions of section 115JB of the Act. In view of these legal pronouncements, the net earnings on such sale amounting to Rs. 19.63 crores, credited to the profit and loss statement as other Income has been concurrently added to the âCapital Reserve" by reduction from âNet Profit carried to the Surplus/Deficit" treating it as a capital receipt.
20. In the opinion of the Board, current assets and loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet.
21. Expenditure on Corporate Social Responsibilities (CSR) Activities:
22. During the period from 8th November, 2016 to 30th December, 2016, the Company transacted in Specified Bank Notes (SBN) or other denomination notes as defined in the MCA notification G.S.R. 308(E) dated 30th March, 2017. The details of the same is as below in absolute rupees (Rs.)
23. Employees Benefits :
The required disclosures of employees benefits as per Accounting Standard -15 are given hereunder :-
24. In respect of Short Term Employee Benefits :
The Company has at present only the scheme of cumulative benefit of leave encashment payable at the end of each calendar year and the same have been provided for on accrual basis.
25. In respect of Defined Benefit Scheme (Based on Actuarial Valuation) of Gratuity :
26. The Company''s Contribution to defined contribution plan to the irrecoverable trust, set up by the Company aggregating to Rs. 3.91 Crore (P. Y. Rs. 3.11 Crore) has been recognized in statement of profit and loss account.
The following table sets out the status of Provident Fund as per the actuarial valuation by the independent Actuary appointed by the Company:
27. Segment information as per Accounting Standard - 17 on "Segment Reporting"
The Company has identified three primary business segments viz.Sugar, Distillery and Power. Segments have been identified and reported taking into account the nature of the products, the differing risks and returns, the organizational structure and internal business reporting system.
28. Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprises as a whole and are not allocate to segment on reasonable basis have been disclosed as "Unallocable".
29. Segment assets and segment liabilities represent assets and liabilities of respective segment. Investments, tax related assets/ liabilities and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".
30. Since the company''s activities/operations are primarily within country and considering the nature of products. Its risk and returns are same as such there is only on geographical segment.
31. Related Party Disclosures:
32. List of Related Parties with whom transactions have taken place and relationships:
33. Enterprises where control exists:
Subsidiary -
34. Dhampur International Pte Limited
35. E-HAAT Limited
36. DETS Limited
37. Enterprises which have significant influence and also owned or significantly influenced by Key Management Personnel
38. Goel investments Limited
39. Ujjwal Rural Services Limited
40. Saraswati Properties Limited
41. Enterprises owned or significantly influenced by Key Management Personnel or their relatives
42. Shudh Edible Products Limited
43. India Green Fuel Private Limited
44. Eternity Impex Private Limited
45. Key Management Personnel and their relatives
46. Mr.Vijay Kumar Goel, Executive Director Mrs Deepa Goel (Wife)
47. Mr. Ashok Kumar Goel,Vice Chairman Mrs Vinita Goel (Wife)
48. Mr. Gaurav Goel, Managing Director Mrs Priyanjali Goel (Wife)
49. Mr. Gautam Goel, Managing Director Mrs Bindu Vashist Goel (Wife)
50. Mr. Arhant Jain, Executive President (Finance) & Company secretary
Mrs. Brij Bala Jain (Mother), Mr. Arvind Jain (Brother), Mrs. Anita Jain (Wife), Mr. Anubhav Jain (Son), Mr. Ashish Jain (Son),
Mrs. Ankita Jain (Daughter in law), Mrs. Shruti Jain (Daughter in law),
Arhant Jain (HUF), Anubhav Jain (HUF), Ashish Jain (HUF), Arvind Jain (HUF).
51. Mr. Sandeep Sharma, Chief Operating Officer & Director
Mrs. Poonam Sharma (Wife), Mr. Rahul Sharma (Son), Ms. Sona Sharma (Daughter)
Sandeep Sharma (HUF)
52. Mr. Priya Brat, Director
Mrs. Shakuntala Brat (Wife), Ms. Anu Mahendru (Daughter)
53. V. K. Goel, H.U.F
54. A.K. Goel, H.U.F.
55. Gaurav Goel, H.U.F
56. Gautam Goel, H.U.F
57. Following are the relevant disclosures as required under the Micro, Small and Medium Enterprises Development Act, 2006:
58. Sundry creditors include a sum aggregating Rs. 4.28 crores (P.Y. - Rs. 5.22 crores) due to micro and small enterprises is on account of principal only.
59. The amount of interest paid by the company in terms of Section 16, along with the amount of payments made to the micro and small enterprise beyond the appointed date during the period - Rs. Nil.
60. The amount of interest due and payable for the period of delay in making payment which have been paid but beyond the appointed day during the period but without adding the interest specified under this Act. - Rs. Nil.
61. The amount of interest accrued and remaining unpaid - '' Nil.
62. The amount of further interest remaining due and payable even in succeeding years - Rs. Nil.
The above mentioned outstanding are in normal course of business and the information regarding micro and small enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company.
63. Derivative instruments
64. The company has entered into following Forward Contract :
65. The Company used foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management.
66. Policy. The Company does not use forward contracts for speculative purposes.
67. There is no outstanding forward exchange contracts entered into by the company as on 31st March, 2017.
68. Details of loans and advances given; investment made; guarantee given and security provided as required to be disclosed as per provision of section 186(4) of Companies Act, 2013 have been disclosed under the respective heads.
The Company has initiated steps for revising the TDS forms to remove various defects due to which demands were raised by authorities and is confident that the demand will be substantially reduced after these rectification.
The decision taken by the government of Uttar Pradesh to waive liability on interest payable by the sugar industry on delayed payment of cane price for the sugar seasons 2012-13, 2013-14 and 2014-15 is remanded back for reconsideration by honourable Allahabad High Court. The Govt. of U.P. has preferred an appeal against the direction of High Court before Supreme Court. The sugar industry and the company believes that UP Government will not reverse its decision for wailer of interest and will also waive interest for sugar season 2015-16.
The amount shown above represents the best possible estimates arrived oi the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of the different legal process which have been invoked by the company or the claimants as the case may be, therefore it cannot be estimated accurate!. The Company does not expect any reimbursement in respect of above contingent liabilities.
In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the grounds that there are fair chances of successfully outcome.
69.. Commitments
70. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 54.31 Crores (P.Y. - Rs. 12.78 crores).
71. Corporate guarantee given by the Company - Rs. 75 Crore (P.Y.- Rs. 325 Crores)
72. Previous year figures in bracket have been regrouped/restated wherever considered necessary.
Mar 31, 2016
1. The accounts have been prepared without accounting for any incentive entitlements under U.P. Sugar Incentive Promotion Policy, 2004 as the scheme has been subsequently withdrawn by the State Government. The Company has 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 is eligible for capital subsidy of '' 89.89 crores i.e. @10% of the investments made (already vetted Rs, 50.80 crores) and revenue subsidy for reimbursement of taxes and other charges aggregating to Rs, 60.50 crores upto 31st March, 2016 (including Rs, 2.70 crores for the current year).
2. During the year, the company earned net gain of Rs, 14.59 crores (net of expenses of Rs, 3.31 crores) on sale of 119348 numbers of Renewal Energy Certificates (RECs). These RECs were generated due to environmental concerns and allotted to the company as per Regulation on REC, notified by Central Electricity Regulatory Commission. The earning of these RECs are not an off shoot of business but an off shoot of environmental concerns and hence, the net gain from such sale has been held to be a capital receipt and not an income forming part of the operations of the company by the courts. The courts have further held that the net earning on the sale of these RECs does not fall within the definition of income under the Income Tax Act, 1961 and hence could not be taxed under the normal provisions of taxation as well as under the provisions of section 115JB of the Act. In view of these legal pronouncements, the net earnings on such sale amounting to Rs, 14.59 crores, credited to the profit and loss statement as other Income, has been concurrently added to the"Capital Reserve" by reduction from âNet Profit carried to the Surplus/Deficit" treating it as a capital receipt.
3. During the year, U.P. Government has remitted part of cane commission payable for the sugar season 2012-13 amounting to Rs, 14.60 Crores. The same has been shown as exceptional items (net of taxes) in the profit and loss account.
4. In the opinion of the Board, current assets and loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet.
5. Expenditure on Corporate Social Responsibilities (CSR) Activities:
The various heads under which the CSR expenditure was incurred during the year is detailed as follows : .
6. Employees Benefits :
The required disclosures of employees benefits as per Accounting Standard -15 are given hereunder :-
(i) In respect of Short Term Employee Benefits :
The Company has at present only the scheme of cumulative benefit of leave encashment payable at the end of each calendar year and the same have been provided for on accrual basis.
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant facto''
(iii) Defined Contribution Plan :
Provision for contribution to defined contribution plan, recognized as expense during the period are as under :
(iv) In respect of Defined Benefit Scheme (Based on Actuarial Valuation) of Provident Fund:
Actuarial valuation carried out in respect of interest shortfall in the Provident Fund Trust of the Company, as per Deterministic Approach showsâNil" liability, hence no provision is made in F.Y. 2015-16.
The following table sets out the status of Provident Fund as per the actuarial valuation by the independent Actuary appointed by the Company:
"7." Segment information as per Accounting Standard - 17 on "Segment Reporting"
The Company has identified three primary business segments viz.Sugar, Distillery and Power. Segments have been identified and reported taking into account the nature of the products, the differing risks and returns, the organizational structure and internal business reporting system.
a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprises as a whole and are not allocate to segment on reasonable basis have been disclosed as "Unallowable".
b) Segment assets and segment liabilities represent assets and liabilities of respective segment. Investments, tax related assets/ liabilities and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".
c) Since the company''s activities/operations are primarily within country and considering the nature of products. Its risk and returns are same as such there is only on geographial segment. , = . >
8. Related Party Disclosures:
A. List of Related Parties with whom transactions have taken place and relationships:
i) Enterprises where control exists:
Subsidiary -
1 Dhampur International Pte Limited
ii) Enterprises which have significant influence and also owned or significantly influenced by Key Management Personnel
1 Goel investments Limited
2 Ujjwal Rural Services Limited
3 Saraswati Properties Limited
iii) Enterprises owned or significantly influenced by Key Management Personnel or their relatives
1 Shudh Edible Products Limited
2 India Green Fuel Private Limited
iii) Key Management Personnel and their relatives
1 Mr.Vijay Kumar Goel, Executive Director Mrs Deepa Goel (Wife)
2 Mr. Ashok Kumar Goel,Vice Chairman Mrs Vinita Goel (Wife)
3 Mr. Gaurav Goel, Managing Director Mrs Priyanjali Goel (Wife)
4 Mr. Gautam Goel, Managing Director Mrs Bindu Vashist Goel (Wife)
5 Mr. Arhant Jain, Executive President (Finance) & Company secretary
Mrs. Brij Bala Jain (Mother), Mr. Arvind Jain (Brother), Mrs. Anita Jain (Wife), Mr. Anubhav Jain (Son), Mr. Ashish Jain (Son),
Mrs. Ankita Jain (Daughter in law), Mrs. Shruti Jain (Daughter in law),
Arhant Jain (HUF), Anubhav Jain (HUF), Ashish Jain (HUF), Arvind Jain (HUF).
6 Mr. Sandeep Sharma, Executive President
Mrs. Poonam Sharma (Wife), Mr. Rahul Sharma (Son), Ms. Sona Sharma (Daughter)
Sandeep Sharma (HUF)
7 Mr. Priya Brat, Director
Mrs. Shakuntala Brat (Wife), Ms. Anu Mahendru (Daughter)
8 V. K. Goel, H.U.F
9 A.K. Goel, H.U.F.
10 Gaurav Goel, H.U.F
11 Gautam Goel, H.U.F
11. Derivative instruments
i) The company has entered into following Forward Contract :
a) The Company used foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts for speculative purposes.
12. Details of loans and advances given; investment made; guarantee given and security provided as required to be disclosed as per provision of section 186(4) of Companies Act, 2013 have been disclosed under the respective heads.
The Company has initiated steps for revising the TDS forms to remove various defects due to which demands were raised by authorities and is confident that the demand will be substantially reduced after these rectification.
The Government of Uttar Pradesh had always waived liabilities of interest on account of delayed payment of sugar cane price in past for the industry and also considering the fact that the various initiatives taken by the Government to support the Sugar Industry, the Company as well as the industry believe that the interest on delayed payment of Cane Price for sugar season 2014-15 onwards will also be waived by the U.P. Government. Therefore, the same has not been recognized as liability.
The amount shown above represents the best possible estimates arrived on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of the different legal process which have been invoked by the company or the claimants as the case may be, therefore it cannot be estimated accurately. The Company does not expect any reimbursement in respect of above contingent liabilities.
In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the grounds that there are fair chances of successful outcome.
II. Commitments
(A) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs, 12.78 Crores (P.Y. - Rs, 6.45 crores).
(B) Corporate guarantee given by the Company - Rs, 325 Crore.
III. Arrears of Cumulative Preference share dividend including Corporate dividend tax is amounting to Rs, 4.62 Crores (including Rs, 1.44 Crore for the year).
13. Previous year figures in bracket have been regrouped/restated wherever considered necessary.
Mar 31, 2015
1 Corporate Information
Dhampur Sugar Mills Limited is a public company domiciled in India and
incorporated under the provisions of the Companies Act,1913.
Its shares are listed on two stock exchanges in India namely, National
Stock Exchange of India and Bombay Stock Exchange of India. The
company is engaged in the manufacturing and selling of sugar, chemicals
and co-generation of power.
2. A. Terms/right attached to equity shares
The company has only one class of equity shares having a par value of Rs.
10 per share. Each holder of equity shares is entitled to one vote per
share.
The company declares and pays dividend in Indian rupees. The dividend
if proposed by the Board of Directors, is subject to the approval of
the shareholders in the ensuing Annual General Meeting. In the event of
liquidation, the shareholders of equity shares are eligible to receive
the remaining assets of the company after distribution of all
preferential amounts, in proportion to their shareholding.
2. B. 33,08,960 Equity shares of Rs. 10 each and 18,01,817 8% Cumulative
Redeemable Preference shares of Rs. 100 each were allotted during the
year 2013-14 to the shareholders of J K Sugar Ltd pursuant to the
scheme of amalgamation without payment being received in cash.
2. C. Right attached to Preference shares
(i) The Preference shares will constitute direct, unconditional,
un-subordinated and unsecured obligations of the company and will at
all times rank pari passu and without any preference among them.
(ii) No premature redemption option to the company, nor to the
shareholders of Cumulative Redeemable Preference shares and no option
to the shareholders to seek redemption in case of non-payment of
dividend.
2. D . Terms of redemption of Preference shares
(i) 4,13,940 - 6% Cumulative Redeemable Preference Shares of Rs. 100 each
are redeemable in 3 equal yearly installments commencing from December,
2013.
(ii) 4,69,013 - 1% Cumulative Redeemable Preference Shares of Rs. 100
each are redeemable in 12 equal quarterly installments commencing from
December, 2012.
(iii) 18,01,817 - 8% Cumulative Redeemable Preference Shares of Rs. 100
each are redeemable in 3 equal yearly installments commencing from
April 01, 2014.
2.E. a. Terms of share warrants issue:
1. The holder(s) of each warrant shall have an option to apply for and
be allotted One equity share of Rs. 10 each at premium of Rs. 23 per share
i.e. Rs. 33 per share at any time within 18 months from the date of
allotment of warrant. i.e. 26th March 2014.
2. Application money of Rs. 8.25 per warrant shall be adjusted against
the price payable subsequently for acquiring by exercising the option.
Application money of Rs. 8.25 per warrant shall be forfeited if the
option to acquire shares is not exercised.
3. The Equity shares issued and allotted upon exercise of option will
be fully paid and will rank pari-passu with the existing equity shares.
4. During the current financial year option has been excercised for
15,00,000 equity share warrants.
5.a. Nature of security
Rupee term loan from bank under the Government sponsored subvention
Scheme for Extending Financial Assistance to Sugar Undertakings
(SEFASU), 2014 of Rs. 109.53 crores are secured by third parri passu
charge on block/fixed assets of the company and personal guarantee of
promoters directors.
Rupee term loans from Sugar Development Fund are secured by exclusive
second charge on all movable and immovable assets excluding current
assets of the company.
All other term loans from financial institutions and banks are secured
by first parri passu charge on all movable and immovable assets except
book debts, stock-in-trade, raw materials, spare parts and other
current assets.
All the term loans are guaranted by promoter directors.
During the year Rupee Term Loan of Rs. 64.30 Crores from bank has been
converted into Foreign Currency Term Loan (FCTL) of USD 11 Million for
a period of 12 months. FCTL carry interest rate @ 6.547% p.a. After 12
months FCTL equivalent to Rs. 64.30 Crores will be reconverted into Rupee
Term Loan and will be repaid according to original term of sanction of
Rupee Term Loan. Accordingly Current Maturity of FCTL has been worked
out on the basis of original term and condition of Rupee Term Loan and
shown as current liability and in the details of "Maturity Profile"
ofTerm Loans.
3. a. Nature of security
All Cash credit limits from banks other than District Co-operative
Banks, Rs. 643.08 Crores are secured by pledge of stocks of sugar and
hypothecation of consumable stores and spare parts, chemicals, molasses
etc. and by parri passu third charge over the fixed assets of the
company and personal guarantee of promoter directors.
Cash Credit accounts from District Co-operative Banks, Rs. 215.50 Crores
are secured by pledge of stocks of sugar and by parri passu third
charge over the fixed assets of the company and personal guarantee of
promoter directors.
Rupee loans from banks of Rs. 30 Crores by subservient charge on Fixed
assets & Current Assets of the company
4. a. In accordance with the Companies Act, 2013, the company has
revised the useful life of its fixed assets to comply useful life as
mentioned under Schedule II of the Companies Act, 2013. Based on the
transitional provision given in Schedule II to the Companies Act, 2013,
the carrying amount of assets (net of residual value) whose useful life
has already exhausted as per revised useful life amounting to Rs. 5.08
Crores (net of deferred tax of Rs. 2.17 Crores) has been adjusted with
the opening balance of Retained Earnings. Had there been no change in
the useful life of the fixed assets, the charge to the Statement of
Profit and Loss would have been higher by Rs. 27.80 Crores. The method of
providing depreciation on fixed assets, other than plant and building,
acquired after 31st March 2014 has also been changed during the year
from written down method to straight line method over the useful life
prescribed under Schedule II to the Companies Act, 2013. Had there been
no change in the method of depreciation, the charge to the Statement of
Profit and Loss would have been higher by Rs. 0.01 Crores."
5. a. The Central Government has initiated various steps to support
the sugar industry like mandatory mixing of ethanol, increase in the
price of ethanol, increase in import duty on sugar, cash subsidy for
export of raw sugar. The State Government have also announced grants
during the year linked with the price of sugar and by-products. The
company has also initiated various steps including on cane development,
enhancing plan efficiencies, cost reduction, increase in power and
ethanol capacity etc. The company is confident that the financials of
sugar segment will improve significantly in the coming years and the
profitability of power and chemical segment will further improve due to
increase in capacity utilisation and on account of increase in the
power tariff and ethanol price. The company is certain that there would
be sufficient taxable income in future and hence it has recognised net
deferred tax assets of Rs. 45.10 Crores ( including the amount of net
deferred tax assets for the year of Rs. 27.94 Crores) during the year.
6 a) During the year the Government of Uttar Pradesh has disbursed
cash subsidy of Rs. 6.00 per quintal of cane for Sugar Season 2013-14
aggregating to Rs. 24.57 Crores.The same has been reduced from the cost
of raw material consumed during the year.
b) The Government of Uttar Pradesh has also announced Subsidy of Rs.
40.00 per quintal of cane for the Sugar Industry for the Sugar Season
2014-15 linked to the average selling price of sugar and its by
products during the period 1st Oct. 2014 to 31st May 2015 as per press
release dtd.12 Nov. 2014. Under the scheme, the Government has notified
subsidy of Rs. 20.00 per quintal of sugar cane by way of cash subsidy of
Rs. 8.60 per quintal of sugar cane and balance Rs. 11.40 per quintal of
sugar cane by way of remission of purchase tax and entry tax and
reimbursement of sugar cane society commission. The remaining subsidy
of Rs. 20.00 will be notified based on the recommendation of selected
committee. The average selling price of Sugar and the by-products have
been significantly lower than the thresholds specified in the scheme
considering the actual and future realisation. In view of the above,
the company has estimated and recognised entire subsidy (including
additional subsidy of Rs. 20.00 per quintal, which is yet to be notified
by the State Government) amounting to Rs. 122.61 Crores during the year.
The company is confident of realizing the subsidy in view of the past
and current price of sugar and the by-products.
c) The accounts have been prepared without accounting for any incentive
entitlements under U.P. Sugar Incentive Promotion Policy, 2004 as the
scheme has been subsequently withdrawn by the State Government. The
Company has 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 is
eligible for capital subsidy of Rs. 89.89 crores i.e. @10% of the
investments made (already vetted Rs. 50.80 crores) and revenue subsidy
for reimbursement of taxes and other charges aggregating to Rs. 57.80
crores upto 31st March, 2015 (including Rs. 1.73 crores for the current
year).
7 In the opinion of the Board, current assets and loans and advances
have a value on realization in the ordinary course of business at least
equal to the amount at which they are stated in the balance sheet.
8 EMPLOYEES BENEFITS :
The required disclosures of employees benefits as per Accounting
Standard -15 are given hereunder :-
(i) In respect of Short Term Employee Benefits :
The Company has at present only the scheme of cumulative benefit of
leave encashment payable at the end of each calender year and the same
have been provided for on accrual basis.
(ii) In respect of Defined Benefit Scheme (Based on Actuarial
Valuation) of Gratuity :
9 RELATED PARTY DISCLOSURES:
A. List of Related Parties with whom transactions have taken place and
relationships:
i) Enterprises where control exists:
Subsidiary -
1 Dhampur International Pte Limited
2 Dhampur Global Pte Limited (a subsidiary of Dhampur International Pte
Limited)
ii) Enterprises which have significant influence and also owned or
significantly influenced by Key Management Personnel
1 Goel investments Limited
2 Ujjwal Rural Services Limited
3 Saraswati Properties Limited
4 Ujjwal Infracon Limited
iii) Enterprises owned or significantly influenced by Key Management
Personnel or their relatives
1 Sonitron Limited
2 Shudh Edible Products Limited
3 India Green Fuel Private Limited
iv) Key Management Personnel and their relatives
1 Mr.Vijay Kumar Goel, Executive Director Mrs Deepa Goel (Wife)
2 Mr. Ashok Kumar Goel,Vice Chairman Mrs Vinita Goel (Wife)
3 Mr. Gaurav Goel, Managing Director Mrs Priyanjali Goel (Wife)
4 Mr. Gautam Goel, Managing Director Mrs Bindu Vashist Goel (Wife)
5 Mr. Arhant Jain, Executive President (Finance) & Company secretary
Mrs. Brij Bala Jain (Mother), Mr. Arvind Jain (Brother), Mrs. Anita
Jain (Wife), Mr. Anubhav Jain (Son), Mr. Ashish Jain (Son),
Mrs. Ankita Jain (Daughter in law), Mrs. Shruti Jain (Daughter in law),
Arhant Jain (HUF), Anubhav Jain (HUF), Ashish Jain (HUF), Arvind Jain
(HUF).
6 Mr. Sandeep Sharma, Executive President
Mrs. Poonam Sharma (Wife), Mr. Rahul Sharma (Son), Ms. Sona Sharma
(Daughter)
Sandeep Sharma (HUF)
7 Mr. Priya Brat, Director
Mrs. Shakuntala Brat (Wife), Ms. Anu Mahendru (Daughter)
8 V. K. Goel, H.U.F
9 A.K. Goel, H.U.F.
10 Gaurav Goel, H.U.F
11 Gautam Goel, H.U.F
10 Following are the relevant disclosures as required under the Micro,
Small and Medium Enterprises Development Act,2006:
(a) Sundry creditors include a sum aggregating Rs. 2.83 crores (Rs. 3.83
crores) due to micro and small enterprises is on account of principal
only.
(b) The amount of interest paid by the company in terms of Section 16,
along with the amount of payments made to the micro and small
enterprise beyond the appointed date during the period - Rs. Nil.
(c) The amount of interest due and payable for the period of delay in
making payment which have been paid but beyond the appointed day during
the period but without adding the interest specified under this Act. -
Rs. Nil.
(d) The amount of interest accrued and remaining unpaid - Rs. Nil.
(e) The amount of further interest remaining due and payable even in
succeeding years - Rs. Nil.
The above mentioned outstandings are in normal course of business and
the information regarding micro and small enterprises
have been determined to the extent such parties have been identified on
the basis of information available with the Company.
11 DERIVATIVE INSTRUMENTS
i) The company has entered into following Forward Contract :
a) The Company used foreign currency forward contracts to hedge its
risks associated with foreign currency fluctuations relating to certain
firm commitments.The use of foreign currency forward contracts is
governed by the Company''s strategy approved by the Board of Directors,
which provide principles on the use of such forward contracts
consistent with the Company''s Risk Management Policy.The Company does
not use forward contracts for speculative purposes.
12 Details of loans and advances given; investment made; guarantee
given and security provided as required to be disclosed as per
provision of section 186(4) of Companies Act, 2013 have been disclosed
under the respective heads.
13 Previous year figures in bracket have been regrouped wherever
considered necessary.
14 CONTINGENT LIABILITIES AND COMMITMENTS : NOT PROVIDED FOR IN RESPECT
OF :
As at 31.03.2015 As at 31.03.2014
I Contingent Liabilities
Claims/disputed liabilities
not acknowledged as debt :
(A) In respect of some pending
cases of employees under labour laws Amount not Amount not
ascertainable ascertainable
* The company has been advised that the demand is likely either to be
deleted or substantially reduced and accordingly no provision is
considered necessary.
C Excise Department has served show cause notices on the company for
levy of duty of Rs. 61.09 crores on sale of Rectified Spirit; of Rs. 8.33
crores on sale of Electiricity and of Rs. 58.44 crores for reversal of
CENVAT credit taken by the company on certain capital goods and inputs.
The company is legally advised that no duty is leviable on these cases
and accordingly no provision is considered necessary.
II Commitments
A Uncalled liability on investments in partly paid-up shares - Nil
(Nil).
B Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. 6.45 crores (Rs. 00.22 crores).
C Corporate guarantee given by the company - Rs. 325 Crores (Rs. 175
Crores).
III Arrears of cumulative Preference share dividend including Corporate
dividend tax is amounting to Rs. 1.71 Crores for the year.
Mar 31, 2014
1 The accounts have been prepared without accounting for any incentive
entitlements under U.P. Sugar Incentive Promotion Policy, 2004 as the
scheme has been subsequently withdrawn by the State Government. The
Company has 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 is
eligible for capital subsidy of Rs. 89.89 crores i.e. @10% of the
investments made (already vetted Rs. 50.80 crores) and for reimbursement
of taxes and other charges aggregating to Rs. 56.07 crores upto 31st
March, 2014 (including Rs. 1.95 crores for the current year).
2 In the opinion of the Board, current assets and loans and advances
have a value on realization in the ordinary course of business at least
equal to the amount at which they are stated in the balance sheet.
3 Employees Benefits :
The required disclosures of employees benefits as per Accounting
Standard -15 are given hereunder :- (i) In respect of Short Term
Employee Benefits :
The Company has at present only the scheme of cumulative benefit of
leave encashment payable at the end of each calender year and the same
have been provided for on accrual basis.
4 Related Party Disclosures:
A. List of Related Parties with whom transactions have taken place and
relationships:
i) Enterprises where control exists:
Subsidiary -
1 Dhampur International Pte Limited
2 Dhampur Global Pte Limited (a subsidiary of Dhampur International Pte
Limited) Associates -
Kashipur Sugar Mills Limited
ii) Enterprises which have significant influence and also owned or
significantly influenced by Key Management Personnel
1 Goel investments Limited
2 Ujjwal Rural Services Limited
3 Saraswati Properties Limited
iii) Enterprises owned or significantly influenced by Key Management
Personnel or their relatives
1 Sonitron Limited
2 Shudh Edible Products Limited
3 India Green Fuel Private Limited
4 Dhampur Molasses Transport (Regd.)
5 J.P. & Sons (Regd.)
iv) Key Management Personnel and their relatives
1 Mr.Vijay Kumar Goel, Executive Director Mrs Deepa Goel (Wife)
2 Mr. Ashok Kumar Goel, Vice Chairman Mrs Vinita Goel (Wife)
3 Mr. Gaurav Goel, Managing Director Mrs Priyanjali Goel (Wife)
4 Mr. Gautam Goel, Managing Director Mrs Bindu Vashist Goel (Wife)
5 Mr. J.P. Sharma, Whole Time Director Mr. Mukul Sharma (Son)
6 Mr. Arhant Jain, Executive President (Finance) & Company secretary
Mrs. Brij Bala Jain (Mother), Mr. Arvind Jain (Brother), Mrs. Anita
Jain (Wife), Mr. Anubhav Jain (Son), Mr. Ashish Jain (Son) Arhant Jain
(HUF), Anubhav Jain (HUF), Ashish Jain (HUF), Arvind Jain (HUF)
7 Mr. Sandeep Sharma, Executive President
Mrs. Poonam Sharma (Wife), Mr. Rahul Sharma (Son), Ms. Sona Sharma
(Daughter) Sandeep Sharma (HUF)
8 Mr. Priya Brat, Director
Mrs. Shakuntala Brat (Wife), Ms. Anu Mahendru (Daughter)
9 V. K. Goel, H.U.F
10 A.K. Goel, H.U.F.
11 Gaurav Goel, H.U.F
12 Gautam Goel, H.U.F
5. Following are the relevant disclosures as required under the Micro,
Small and Medium Enterprises Development Act, 2006:
(a) Sundry creditors include a sum aggregating Rs. 3.83 crores (Rs. 2.79
crores) due to micro and small enterprises is on account of principal
only.
(b) The amount of interest paid by the company in terms of Section 16,
alongwith the amount of payments made to the micro and small enterprise
beyond the appointed date during the period - Rs. Nil.
(c) The amount of interest due and payable for the period of delay in
making payment which have been paid but beyond the appointed day during
the period but without adding the interest specified under this Act. -
Rs. Nil.
(d) The amount of interest accrued and remaining unpaid - Rs. Nil.
(e) The amount of further interest remaining due and payable even in
succeeding years - Rs. Nil.
The above mentioned outstandings are in normal course of business and
the information regarding micro and small enterprises have been
determined to the extent such parties have been identified on the basis
of information available with the Company.
6 Derivative instruments
i) The company has entered into following Forward Contract :
a) The Company used foreign currency forward contracts to hedge its
risks associated with foreign currency fluctuations relating to certain
firm commitments. The use of foreign currency forward contracts is
governed by the Company''s strategy approved by the Board of Directors,
which provide principles on the use of such forward contracts
consistent with the Company''s Risk Management Policy. The Company does
not use forward contracts for speculative purposes.
7 Renewable Energy Certificate
Under the rules & regulations notified by Central Electricity
Regulatory Commission (Terms and Conditions for recognition and
issuance of Renewable Energy Certificate for Renewable Energy
Generation) Regulations, 2010, the company is eligible for Renewable
energy certificates (RECs) in respect of captive consumption of renewal
energy w.e.f. Nov. 2011. The company is entitled for 346534 RECs upto
31st March 2014, out of which 218558 RECs has been awarded and
remaining RECs are under certification. The company has treated 112738
RECs i.e. awarded but remained unsold as at the end of the period as
stock in trade and valued it at estimated cost of Rs. 1/- per REC.
8 Previous year figures in bracket have been regrouped wherever
considered necessary.
9 Contingent Liabilities And Commitments : Not Provided For In Respect
Of :
( Rs. in crores)
As at 31.03.2014 As at 31.03.2013
I Contingent Liabilities
Claims/disputed liabilities
not acknowledged as debt : Amount not Amount not
(A) In respect of some
pending cases of employees
under labour laws ascertainable ascertainable
C Excise Department has served show cause notices on the company for
levy of duty of Rs. 72.35 crores on sale of Rectified Spirit; of Rs. 19.38
crores on sale of Electiricity and of Rs. 4.31 crores for reversal of
CENVAT credit taken by the company on certain capital goods and inputs.
All the notices are at personal hearing stage. The company is legally
advised that no duty is leviable on these cases.
Commitments
A Uncalled liability on investments in partly paid-up shares - Nil
(Nil). B Estimated amount of contracts remaining to be executed on
capital account and not provided for Rs. 0.22 crores (Rs. 51.93 crores).
Mar 31, 2013
"1.A." Revision of Accounts and Amalgamation of J.K.Sugar Limited
(JKSL)
Hon''ble High Court of Judicature at Allahabad and Calcutta by their
orders dated 18th March, 2013 and 17th May, 2013 respectively approved
the Scheme of Amalgamation of J K Sugar Ltd. with the company which has
become effcetive on 16th July, 2013 from the appointed date 1st April,
2012 in accordance with the provisions of section 391 & 394 of the
Companies Act, 1956.The Board of the directors of the company had
approved the original financial statements for the year ending March
31, 2013 without giving the efffect of amalgamation as aforesaid, in
the meeting held on 21st May, 2013 with the condition that if the
Scheme become effective before 15th August, 2013, the annual accounts
should be revised to give effect to the scheme of amalgamation and
revised accounts be placed before the Board for approval .
The scheme of amalgamation became effective on filing of orders with
the respective Registrar of Companies and to give effect the
amalgmation in the books of accounts for the year ended 31st March,
2013, accounts of the Company have been reopened and revised. The
present financial statements are revised for the limited pupose of
amalgamation of JKSL with the Company in accordance with the accounting
policies followed by the Company.
"1.B" Salient features of the Scheme of Amalgamation
JKSL was engaged in the manufacture of Sugar and Co-generation power.
The appointed date for the purpose of this amalgamation is 1st
April,2012.
In accordance with the scheme approved, the accounting for this
amalgamation has been done in accordance with the "Pooling of Interest
Method" referred to in Accounting Standard 14 - "Accounting for
Amalgamation" of the Companies (Accounting Standard) Rules 2006.
Accordingly, DSML has accounted for the Scheme in its books of accounts
with effect from the Appointed Date i.e.1st April,2012 as under:
i) With effect from the appointed date, all assets and liabilities
appearing in the books of JKSL have been transferred to and vested in
DSML and have been recorded by DSML at their respective book values.
ii) In consideration of the transfer of the business as a going
concern, the Company shall issue the shares as under :
a) 275 fully paid-up of equity shares of Rs.10/- each of the Company for
every 1000 equity shares of Rs.10/- each fully paid-up of JKSL to equity
shareholders of JKSL. Pending allotment, the outstanding equity shares
to be issued aggregating to Rs. 3.31 crore representing 33,08,960 equity
shares of Rs. 10/- each of the company is shown as Equity Share pending
for allotment under Share Captial. The amalgamation will result in
exchange of 5.78% of post issue equity shares of DSML.
b) 9 fully paid-up of 8% Cumulative redeemable preference shares(CRPS)
of Rs.100/- each of the Company for every ten 8% Cumulative redeemable
preference shares (Series A) of Rs. 90/- each fully paid-up of JKSL to
preference shareholders of JKSL. Pending allotment, the outstanding 8%
CRPS to be issued aggregating to Rs. 13.50 crore representing 13,50,000
8% CRPS to be issued of Rs. 100/- each of the company is shown as 8% CRPS
pending for allotment under Share Capital.
c) 9 fully paid-up of 8% Cumulative redeemable preference shares (CRPS)
of Rs.100/- each of the Company for every ten 8% Cumulative redeemable
preference shares (Series B) of Rs. 90/- each fully paid-up of JKSL to
preference shareholders of JKSL. Pending allotment, the outstanding 8%
CRPS to be issued aggregating to Rs. 1.67 crore representing 1,66,804 8%
CRPS to be issued of Rs. 100/- each of the company is shown as 8% CRPS
pending for allotment under Share Capital.
d) 1 fully paid-up of 8% Cumulative redeemable preference shares (CRPS)
of Rs.100/- each of the Company for every ten Zero coupon fully
convertivble redeemable preference shares of Rs. 10/- each fully paid-up
of JKSL to preference shareholders of JKSL. Pending allotment, the
outstanding 8% CRPS to be issued aggregating to Rs. 2.85 crores
representing 2,85,013 8% CRPS to be issued of Rs. 100/- each of the
company is shown as 8% CRPS pending for allotment under Share Capital.
iii) The equity and preference share capital of the JKSL has been
cancelled under the scheme.
iv) The difference between the book value of net identifiable assets
and liabilities of JKSL transferred to DSML pursuant to this scheme and
the consideration being the value of New Equity Shares to be issued and
allotted by DSML, amounting to Rs. 8.72 crores has been credited to
Amalgamation Reserve.
v) Accordingly, 33,08,960 equity share of Rs. 10/- each fully paid up and
18,01,817, 8% CRPS of Rs. 100/- each fully paid up of
DSML are to be issued to the shareholders of JKSL under this
amalgamation. The record date fixed for this purpose is 6th August,
2013.
vi) All inter company transactions have been eliminated on
incorporation of the accounting of JKSL in the company.
vii) The company shall proceed to issue these equity share and 8% CRPS
the respective shareholders of JKSL in due course of time.
viii) To align the method and rates of Depreciation charged by the
amalgamating company (JKSL) with those of the amalgamated company
(DSML), method of depreciation on assets of JKSL, other than building
and plant & machinery has been changed from SLM to WDV and additional
depreciation of Rs.1.51 crore (including Rs.1.43 crore upto appointed date
i.e. 1st April, 2012) has been charged to the Profit and Loss
statement and Rs. 1.43 crore, additional depreciation upto 1st April,2012
has been withdrawn from the General Reserve pursuant to the scheme of
Amalgamation. Due to this change depreciation for the year (Net of
withdrawn from General Reserve) is higher by Rs. 0.08 crore ,Reserve &
Surplus and Tangible Asset is lower by Rs.1.51 crore.
ix) The expenses incurred towards the execution of the Amalgamation
Scheme have been adjusted from the Amalgamation
Reserve and the resultant credit balance has been transferred to the
Capital Reserve Account as per the Scheme.
In view of the aforesaid amalgamation, the figures for the current year
are not comparable to those of the previous year.
2 Exceptional item for the year amounting to Rs. 8.19 crores represents
write-off on investments in equity shares of Kashipur Sugar Mills
Limited (KSML). Hon''ble Board for Industrial and Financial
Reconstruction (BIFR) has ordered for winding-up of the KSML in their
meeting held on 08-05-2013. Therefore, it has been decided to write-off
the investments in the equity shares of KSML and an equivalent amount
has been withdrawn from the General Reserve.
3 The accounts have been prepared without accounting for any incentive
entitlements under U.P. Sugar Incentive Promotion Policy, 2004 as the
scheme has been subsequently withdrawn by the State Government. The
Company has filed writ petition before Hon''ble Allahabad High Court
(Lucknow Bench) forenforcement of the scheme and settlement of
incentive claims. As per the erstwhile incentive policy, the company is
eligible for capital subsidy of Rs. 89.89 crores i.e. @10% of the
investments made (already vetted Rs. 50.80 crores) and for reimbursement
of taxes and other charges aggregating to Rs. 54.12 crores upto 31st
March, 2013 (including Rs. 9.40 crores for the current year).
4 In th opinion of the Board, current assets and loans and advances
have a value on realization in the ordinary course of business at least
equal to the amount at which they are stated in the balance sheet.
5 Employees Benefits :
The required disclosures of employees benefits as per Accounting
Standard -15 are given hereunder :- (i) In respect of Short Term
Employee Benefits :
The Company has at present only the scheme of cumulative benefit of
leave encashment payable at the end of each calender year and the same
have been provided for on accrual basis. (ii) In respect of Defined
Benefit Scheme (Based on Actuarial Valuation) of Gratuity :
6 Related Party Disclosures:
A. List of Related Parties with whom transactions have taken place and
relationships: i) Enterprises where control exists:
Subsidiary -
Dhampur International Pte Limited
Associates -
Kashipur Sugar Mills Limited
ii) Enterprises where there is significant influence
1 Goel investments Limited
2 Ujjwal Rural Services Limited
3 Saraswati Properties Limited
4 Shudh Edible Products Limited
5 Sonitron Limited
6 India Green Fuel Private Limited
iii) Key Management Personnel and their relatives
1 Mr.Vijay Kumar Goel, Executive Director Mrs Deepa Goel (Wife)
2 Mr. Ashok Kumar Goel, Vice Chairman Mrs Vinita Goel (Wife)
3 Mr. Gaurav Goel, Managing Director Mrs Priyanjali Goel (Wife)
4 Mr. Gautam Goel, Managing Director Mrs Bindu Vashist Goel (Wife)
5 Mr. J.P. Sharma, Director Mr. Mukul Sharma (Son)
6 Mr Priya Brat, Director
Mrs Shakuntala Brat (Wife), Mr Anu Mahendru (Daughter)
7 V. K. Goel, H.U.F
8 Gaurav Goel, H.U.F
9 Gautam Goel, H.U.F
7 Following are the relevant disclosures as required under the Micro,
Small and Medium Enterprises Development Act, 2006:
(a) Sundry creditors include a sum aggregating Rs. 2.79 crores (Rs. 1.95
crores) due to micro and small enterprises is on account of principal
only.
(b) The amount of interest paid by the company in terms of Section 16,
alongwith the amount of payments made to the micro and small enterprise
beyond the appointed date during the period - Rs. Nil.
(c) The amount of interest due and payable for the period of delay in
making payment which have been paid but beyond the appointed day during
the period but without adding the interest specified under this Act. -
Rs. Nil.
(d) The amount of interest accrued and remaining unpaid - Rs. Nil.
(e) The amount of further interest remaining due and payable even in
succeeding years - Rs. Nil.
The above mentioned outstandings are in normal course of business and
the information regarding micro and small enterprises have been
determined to the extent such parties have been identified on the basis
of information available with the Company.
8 Derivative instruments
i) The company has entered into following Forward Contract :
a) The Company used foreign currency forward contracts to hedge its
risks associated with foreign currency fluctuations relating to certain
firm commitments. The use of foreign currency forward contracts is
governed by the Company''s strategy approved by the Board of Directors,
which provide principles on the use of such forward contracts
consistent with the Company''s Risk Management Policy. The Company does
not use forward contracts for speculative purposes.
9 Previous year figures in bracket have been regrouped wherever
considered necessary.
10 CONTINGENT LIABILITIES AND COMMITMENTS : NOT PROVIDED FOR IN RESPECT
OF :
( Rs. crores)
As at
31.03.2013 As at
31.03.2012
Contingent Liabilities
Claims/disputed liabilities not acknowledged as debt :
(A) In respect of some pending cases of employees under labour laws
Amount not Amount not ascertainable ascertainable
C Excise Department has served show cause notices on the company for
levy of duty of Rs. 11.07 crores on sale of Rectified Spirit; of Rs. 8.83
crores on sale of Electiricity and of Rs. 7.36 crores for reversal of
CENVAT credit taken by the company on certain capital goods and inputs.
All the notices are at personal hearing stage. The company is legally
advised that no duty is leviable on these cases.
D During the year 2008-09, the Meergunj Unit has received demand/show
cause Notice for Rs. 8.84 crore from Commissioner Central
Excise Meerut (U.P.) demanding duty on the generation of electricity
due to the non maintenance of separate set of books. Out of Rs. 8.84
crore, demand of Rs.8.07 crore has been stayed by Hon''ble Custom, Excise
& Service Tax Appellate Tribunal (CESTAT) and remaining Rs. 0.77 crore
has been set aside by Commissioner Central Excise pursuant to guideline
set by Hon''ble Supreme Court.It is expected that on the same basis
remaining liability will be set aside by CESTAT.
II Commitments
A Uncalled liability on investments in partly paid-up shares - Nil (
Prev. year Nil)
B Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. 51.93 crores (Rs. 2.90 crore).
Mar 31, 2012
1.a Terms/right attached to equity shares
The company has only one class of equity shares having a par value of Rs.
10 per share. Each holder of equity shares is entitled to one vote per
share. The company declares and pays dividend in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting
1.b Terms of redemption of Preference shares
(i) 4,69,013 - 1% Cumulative Redeemable Preference Shares of Rs. 100 each
are redeemable in 12 quarterly equal installments commencing from
December, 2012.
(ii) 4,13,940 - 6% Cumulative Redeemable Preference Shares of Rs. 100
each are redeemable in 12 quarterly equal installments commencing from
December, 2013.
2.a Nature of security
Term loans (excise) from banks of Rs. 0.13 crores under the Government
sponsored subvention Scheme for extending Financial assistance to Sugar
Undertakings, 2007 (SEFASU,2007) are secured by fifth residual parri
passu charge on all movable and immovable assets of the company and
personal guarantee of promoter directors.
Term loans from bank of Rs. 2.93 crores are secured by subservient sixth
charge on all movable and immovable assets of the company.
Term loans from Sugar Development Fund are secured by exclusive second
charge on all movable and immovable assets excluding current assets of
the company.
All other term loans from financial institutions and banks (including
ECB and Zero coupon loans) are secured by first parri passu charge on
all movable and immovable assets except book debts, stock-in-trade, raw
materials, spare parts and other assets and personal guarantee of
promoters directors and part of above are also secured by pledge of
7562061 equity shares of Kashipur Sugar Mills Limited.
3.a Nature of security
All Cash credit limits from banks other than DCB are secured by pledge
of stocks of sugar and hypothecation of consumable stores and spare
parts, chemicals, molasses etc. by third charge over the fixed assets
of the company and personal guarantee of promoter directors.
Cash credit accounts from DCB are secured by pledge of stocks of sugar.
Rupee term loans from banks are secured by personal guarantee of
promoter directors.
4. Exceptional items represents Differential cane price for the
season 2006-07 and 2007-08 aggregating Rs. 48.04 crores provided for
pursuant to the order of Hon''ble Supreme Court dated 17th January, 2012
and an equivalent amount has been withdrawn from General Reserve.
5. The accounts have been prepared without accounting for any
incentive entitlements under U.P. Sugar Incentive Promotion Policy,
2004 as the scheme has been subsequently withdrawn by the State
Government. The Company has 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 is eligible for capital subsidy of Rs. 89.89 crores i.e. @10%
of the investments made (already vetted Rs. 50.80 crores) and for
reimbursement of taxes and other charges aggregating to Rs. 44.72 crores
upto 31st March, 2012 (including Rs. 7.78 crores for the current year).
6. In th opinion of the Board, current assets and loans and advances
have realisable value in the ordinary course of business at least equal
to the value at which they are stated in the balance sheet.
7. Dhampur Sugar Distillery pvt Ltd., (DSDPL) , a wholly owned
subsidiary of the company has been merged w.e.f. 1st 0ctober,2010 vide
order dated 10th January, 2012 of Hon;ble High Court Judicature at
Allahabad. The required disclosures are as under :
8. Employees Benefits :
The required disclosures of employees benefits as per Accounting
Standard -15 are given hereunder :-
(i) In respect of Short Term Employee Benefits :
The Company has at present only the scheme of cumulative benefit of
leave encashment payable at the end of each calender year and the same
have been provided for on accrual basis.
(ii) In respect of Defined Benefit Scheme (Based on Actuarial
Valuation) of Gratuity :
9. Related Party Disclosures:
A. List of Related Parties with whom transactions have taken place and
relationships:
i) Enterprises where control exists:
Subsidiary -
Dhampur International Pte Limited Associates -
Kashipur Sugar Mills Limited
ii) Enterprises where there is significant influence
1 Goel investments Limited
2 Ujjwal Rural Services Ltd.
3 Saraswati Properties Limited
4 Shudh Edible Products Limited
5 Sonitron Limited
iii) Key Management Personnel and their relatives
1 Mr.Vijay Kumar Goel, Executive Director Mrs Deepa Goel (Wife)
2 Mr. Ashok Kumar Goel, Vice Chairman Mrs Vinita Goel (Wife)
3 Mr. Gaurav Goel, Managing Director Mrs Priyanjali Goel (Wife)
4 Mr. Gautam Goel, Managing Director Mrs Bindu Vashist Goel (Wife)
5 Mr. J.P. Sharma, Director Mr. Mukul Sharma (Son)
6 Mr. Priya Brat, Director
Mrs Shakuntala Brat (Wife), Ms. Anu Mahendru (Daughter)
7 V. K. Goel, H.U.F
8 Gaurav Goel, H.U.F
9 Gautam Goel, H.U.F
10. Following are the relevant disclosures as required under the
Micro, Small and Medium Enterprises Development Act, 2006:
(a) Sundry creditors include a sum aggregating Rs. 1.95 crores (Rs. 2.57
crores) due to micro and small enterprises is on account of principal
only.
(b) The amount of interest paid by the company in terms of Section 16,
alongwith the amount of payments made to the micro and small enterprise
beyond the appointed date during the period - Rs. Nil.
(c) The amount of interest due and payable for the period of delay in
making payment which have been paid but beyond the appointed day during
the period but without adding the interest specified under this Act. -
Rs. Nil.
(d) The amount of interest accrued and remaining unpaid - Rs. Nil.
(e) The amount of further interest remaining due and payable even in
succeeding years - Rs. Nil.
The above mentioned outstandings are in normal course of business and
the information regarding micro and small enterprises have been
determined to the extent such parties have been identified on the basis
of information available with the Company.
11. Derivative instruments
i) The company has entered into following Forward Contract :
a) The Company used foreign currency forward contracts to hedge its
risks associated with foreign currency fluctuations relating to certain
firm commitments. The use of foreign currency forward contracts is
governed by the Company''s strategy approved by the Board of Directors,
which provide principles on the use of such forward contracts
consistent with the Company''s Risk Management Policy. The Company does
not use forward contracts for speculative purposes.
12. Previous year figures in bracket have been regrouped wherever
considered necessary.
13. Contingent liabilities and commitments (Rs. Crores)
Particulars As at As at
31.03.2012 31.03.2011
I Contingent Liabilities
Claims/disputed liabilities not
acknowledged as debt :
A) In respect of some pending cases of
employees under labour laws Amount not Amount not
ascertainable ascertainable
II Commitments
A Uncalled liability on investments in partly paid-up shares - Nil
(Prev. year Nil)
B Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. 2.90 crores (Rs. 0.76 crore).
Mar 31, 2011
Contingent assets are not recognised in the accounts.
I CONTINGENT LIABILITIES: NOT PROVIDED FOR IN RESPECT OF:
(Rs. in Crore)
Particulars As at 31.03.2011 As at 30.09.2009
Claims/Disputed Liabilities
not acknowledged as debt :
A. In respect of some pending
cases of employees under
labour laws
Amount not Amount not
ascertainable ascertainable
B. Uncalled liability on
investments in partly paid-up
shares Nil 2.32
C. DETAILS OF DISPUTED LIABILITIES DEMANDS:
(Rs. in Crore)
SI. Particulars Period to which amount
No. relates
1 Additional U.P. Trade Tax & Central 1997-98 to 2004-05
Sales Tax Liability {Net} against which
Rs. Nil (Rs. 4.63 Crore) have been
deposited 1995-97,1993-2000,
2000-01
Sub-total
2. Entry Tax 2001-02, 2009-04,
2004-05
Sub-total
3 CENVAT Credit on inputs, Capital Items
& Services against which Rs. 0.48 1994-1995, 1995-96,
2001-02 to
2008-09
(Rs. 0.82) crore have been deposited 1995-96, 1996-97,
1998-99 to 2003-04
1994-1995
Sub-total
4 Excise Duty on Molasses, Scrap 1997-98, 2000-01
to 2002-03, 2007-08
and Pressumed
Sub-total
5 Purchase Tax Penalty 1998-1999
Sub-total
6 Stamp Duty demand under Uttar 1992-1993
Pradesh Stamp Art against which 2003-2004
Rs. 10.13 crore have been deposited 2005-2006
Sub-total
Grand Total
Sl. Forum where matter 31.03.2011 30.09.2009
No. is pending
1 High Court 2.53 2.89
Joint Commissioner appeal 0.26 3.94
Trade Tax Tribunal 0.01 0.69
Sub-total 2.80 7.52
2 High Court 0.38 0.55
Sub-total 0.38 0.55
3 Commissioner (A) & CESTAT 33.29 13.03
High Court 0.30 1.60
Supreme Court 0.00 0.03
Sub-total 33.59 14.66
4 Commissioner (A) & CESTAT 0.70 0.04
Sub-total 0.70 0.04
5 High Court 0.36 0.36
Sub-total 0.36 0.36
6 Registrar of Stamp Duty 0.25 0.25
Registrar of Stamp Duty 0.26 0.26
High Court 3.50 3.50
Sub-total 4.01 4.01
Grand Total 41.84 27.14
III NOTES ON ACCOUNTS
1 Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. 0.76 crore (Rs. 0.86 crore).
2 The Company has accounted for cane purchases for the sugar season
2007-08 at Rs. 110 per quintal, which was paid based on the Interim
Order of the Honble Supreme Court as against the price of Rs. 125 per
quintal fixed by the Uttar Pradesh State Government. Such differential
price aggregated to Rs. 53 29 crore. The necessary adjustments will be
made in accordance with the final decision in the matter.
3 The accounts have been prepared without accounting for any Incentive
entitlements under U.P Sugar Incentive Promotion Policy, 2004 as the
scheme has been subsequently withdrawn by the State Government The
Company has filed with petition before Honble Allahabad High Court
(Lucknow Bench) for enforcement of scheme and settlement of incentive
claims. As per the erstwhile incentive policy, the Company is eligible
for capital subsidy of Rs. 89.89 crore i.e. @10% of the investments
made (already vetted Rs. 50.80 crore) and for reimbursement of taxes
and other charges aggregating to Rs. 36.94 crore upto 31st March, 2011
(including Rs. 10.76 crore for the period).
4 The merger of the wholly owned subsidiary Company i.e. Dhampur Sugar
Distillery Private Limited with the Company w.e.f. 1st October, 2010 is
not being effected in the accounts due to the pending of the approvals
from the concerned authorities Including Honble High Court Judicature
at the Allahabad.
6. Employees Benefits:
The required disclosures of employees benefits as per Accounting
Standard -15 are given hereunder :-
(i) In respect of Short Term Employee Benefits :
The Company has at present only the scheme of cumulative benefit of
leave encashment payable at the end of each cale- nder year and the
same have been provided for on accrual basis.
(ii) In respect of Defined Benefit Scheme (Based on Actuarial
Valuation) of Gratuity:
The estimates of rate of escalation in salary considered in actuarial
valuation, take into account inflation, seniority, promotion and other
relevant factors.
iii) Defined Contribution Plan :
(The Companys Provident Fund is exempted under Section 17 of
Employees Provident Fund Act, 1952. Conditions for grant of exemptions
stipulates that Company shall mate good deficiency, if any, in the
interest rate declared by the trust vis-a-vis Statutory rate.)
9 Related Party Disclousers:
A. List of Related Parties with whom transactions have taken place and
relationships:
i) Enterprises where control exists:
Subsidiary-
Dhampur Sugar Distillery Private Limited
Dhampur International Pte Limited
Associates-
Kashlpur Sugar Mills Limited
Other Entities -
D.S.M. Finance and Holdings
ii) Enterprises where there is significant influence
1 God Investments Limited
2 Ujjwal Rural Services Lid. (formerly Associated Metal Company Ltd.)
3 Saraswati Properties Limited
4 Shudh Edible Products Limited
5 Green Fuels Private Limited
6 Mara Capitals Limited
7 Sonitron Limited
8 Ujjwal Microfinance Pvt. Ltd.
iii) Key Management Personnel and their relatives
1 Mr. Vijay Kumar Goel, Executive Director
2 Mr. Ashok Kumar Goel, Vice Chairman Mrs Vinita Goel (wife)
3 Mr. Gaurav Goel Managing Director Mrs Priyanjali Goel (wife)
4 Mr. Gautam Goel, Managing Director
5 Mr. J.P.Sharma, Director
Mrs Asha Devi Sharma (wife), Mr. Mukul Sharma (son)
6 V.K. Goel , H.U.F.
7 Gaurav Goel, H.U.F.
8 Gautam Goel, H.U.F.
13 Following are the relevant disclosures as required under the Micro,
Small and Medium Enterprises Development Act, 2006:
(a) Sundry creditors include a sum aggregating Rs. 2.57 crore (Rs. 2.53
crore) due to Micro and Small Enterprises is on account of principal
only
(b) The amount of interest paid by the Company in terms of Section 16,
along with the amount of payments made to the Micro and Small
Enterprise beyond the appointed date during the period - Rs. Nil.
(c) The amount of interest due and payable for the period of delay In
making payment which have been paid but beyond the appointed day during
the period but without adding the interest specified under this Act -
Rs. Nil.
(d) The amount of interest accrued and remaining unpaid - Rs. Nil.
(e) The amount of further interest remaining due and payable even in
succeeding years- Rs. Nil.
The above mentioned outstandings are in normal course of business and
the information regarding Micro and Small Enterprises have been
determined to the extent such parties have been identified on the basis
of information available with the Company
14 Derivative Instruments
i) The company has entered into following Forward Contract:
a) The Company used foreign currency forward contracts to hedge its
risks associated with foreign currency fluctuations relating to certain
firm commitments, the use of foreign currency forward contracts is
governed by the Companys strategy approved by the Board of Directors,
which provide principles on the use of such Forward Contracts
consistent with the Companys Risk Management policy. The Company does
not use Forward Contracts for speculative purposes.
(Forward exchange contract outstanding as on 31st March, 2011 include
forward purchases of US Dollar for repayment of external commercial
borrowings and its interest)
16 Sales, Purchases, Opening and Closing Stock of Finished Goods and
Other Income :
Notes:
1. The difference of 10996 Qtls (5265 Qtls) in finished
goods/purchased sugar represents reprocessing and
transit/storage/accidental losses.
2. The difference of 11565 Qtls. (4652 Qtls) in finished
goods-molasses represents loss/shortage or account of overflow and
storage losses.
3. The difference of 77834 Qtls (976 Qtls.) in finished goods
chemicals represents captive consumption and storage losses.
4. Finsihed goods sugar - production/purchases includes 444024
Qtls.(157000 Qtls.)sugar purchased.
5. Sales of molases includes 1778524 Qtls.(580589 Qtls.}lnter-unit
transfer at Nil Value.
6. Sales of farm produce in dudes 51368 Qtls. (33393 Qtls.) lnter-unit
transfer at Nil Value.
7. Sales of steam lncluudes 3390840M.T.(1277142 M.T.) lnter-unit
transfer at Nil Value.
8. Sales of power includes 200462 M.W. (79846 M.W.)lnter-unit transfer
at Nil Value.
18 Pursuant to the approval of the Registrar of Companies, Uttar
Pradesh and Uttarakhand, the current accounting period comprises of 18
months commencing from 1 st October,2009 to 31 st March,2011, hence the
figures of the current period are not comaprable with those of previous
year figures.
19 Previous year figures in bracket have been regrouped wherever
considered necessary.
Sep 30, 2009
I CONTINGENT LIABILITIES : NOT PROVIDED FOR IN RESPECT OF (Rs. in
Crore)
Claims/Disputed Liabilities not acknowledged as debt :
A. In respect of some pending cases Amount not Amount not
of employees under labour laws ascertainable ascertainable
B. Uncalled liability on investments
in partly paid-up shares 2.32 2.32
1 Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. 0.86 crore (Rs.3.76 crore).
2 The Company has accounted for cane purchases for the Sugar Season
2007-08 at Rs. 110 per quintal, which was paid based on the interim
order of the Honble Supreme Court as against the price of Rs. 125 per
quintal fixed by the Uttar Pradesh State Government. Such differential
price aggregate to Rs. 53.29 crore. The necessary adjustments will be
made in accordance with the final decision in the matter.
3 The accounts have been prepared without accounting for any incentive
entitlements under U.P. Sugar Incentive Promotion Policy, 2004 as the
scheme has been subsequently cancelled by the State Government. The
Company has filed writ petition before Honble Allahabad High Court
(Lucknow Bench) for enforcement of scheme and settlement of incentive
claims. As per the erstwhile incentive policy, the Company is eligible
for capital subsidy of Rs. 89.89 crore i.e. @10% of the investments
made (already vetted Rs. 50.80 crore) and for reimbursement of taxes
and other charges aggregating to Rs. 26.18 crore upto 30th September,
2009 (including Rs. 4.99 crore for the year).
4 The Company has opted for change in accounting policy in respect of
foreign exchange difference relating to translation of long term
foreign currency monetary liabilities in accordance with the
notification dated 31st March, 2009 issued by the Ministry of Corporate
Affairs. Consequently, the net forex fluctuation loss of Rs. 541.23 lac
for the period upto 30-09-2008 has been added to the cost of relevant
capital asset and credited to the General Reserve and net forex
fluctuation losses of Rs. 321.28 lac for the year ended 30-09-2009 has
been added to the cost of capital asset. If the aforesaid changes would
not have been effected, the profit for the year would have been lower
by Rs. 321.28 lac.
5 Followings are the relevant disclosures as required under the Micro,
Small and Medium Enterprises Development Act, 2006:
(a) Sundry creditors include a sum aggregating Rs. 2.53 crore (Rs. 3.11
crore) due to Micro and Small Enterprises is on account of principal
only.
(b) The amount of interest paid by the Company in terms of Section 16,
alongwith the amount of payments made to the Micro and Small Enterprise
beyond the appointed date during the year - Rs. Nil.
(c) The amount of interest due and payable for the period of delay in
making payment which have been paid but beyond the appointed day during
the year but without adding the interest specified under this Act. -
Rs. Nil.
(d) The amount of interest accrued and remaining unpaid - Rs. Nil.
(e) The amount of further interest remaining due and payable even in
succeeding years - Rs. Nil.
The above mentioned outstandings are in normal course of business and
the information regarding Micro and Small Enterprises have been
determined to the extent such parties have been identified on the basis
of information available with the Company.
6. Previous year figures in bracket have been regrouped wherever
necessary, to render them comparable.
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