Home  »  Company  »  Dwarikesh Sugar  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Dwarikesh Sugar Industries Ltd.

Mar 31, 2015

1. Figures in bracket indicate cash outflow.

2. The above cash flow statement has been prepared under the indirect method set out in AS-3 notified pursuant to the Companies (Accounting Standards) Rules,2006.

3. Previous year figures have been regrouped and recasted wherever necessary to conform to the current year's classification.

A Rights & restrictions attached to various classes of shares are as under:

a) Equity Shares:-

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors, If any is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

b) Preference Shares:-

12% cumulative redeemable preference shares (Series I):

1.10.000, 12% cumulative redeemable preference shares of Rs. 100 each were issued in September 1998. These preference shares were to be redeemed at par in September,2011 which has been originally extended to September,2014 is now further extended to 01/08/2018 by virtue of the resolution passed in preference share holders meeting wherein the consent is obtained from the concerned shareholders and committee of board.

8% cumulative redeemable preference shares (Series II):

15.00. 000, 8% cumulative redeemable preference shares of Rs. 100 each were issued in August,2007. These preference shares were to be redeemed at par in August, 2012,which has been extended to August, 2015 by virtue of consent obtained from the concerned shareholders.

8% cumulative redeemable preference shares (Series III):

10.00. 000, 8% cumulative redeemable preference shares of Rs. 100 each were issued in October 2012. These preference shares shall be redeemed at par in September,2017.

8% cumulative redeemable preference shares (Series IV):

50.00. 00, 8% cumulative redeemable preference shares of Rs. 100 each were allotted in April 2013. These preference shares shall be redeemed at par in March,2018.

D Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date.-Nil notes annexed to and forming part of the financial statements for the eighteen months ended march 31, 2015 note "28 A" general information

Dwarikesh Sugar Industries Limited (DSIL) is a public limited company domiciled in India and was incorporated in the year 1993 under the provisions of the Companies Act,1956.

Currently equity shares of the company are listed at BSE and NSE.

DSIL is integrated conglomerate, primarily engaged in manufacture of sugar and allied products. From a humble beginning in 1993, DSIL today is a multi faceted, fast growing industrial group with the strong presence in diversified fields such as sugar manufacturing, power and Ethanol/Industrial Alcohol production.

The Company has three sugar manufacturing units, out of which 2 units namely Dwarikesh Nagar and Dwarikesh Puram are located in Bijnor District of Uttar Pradesh ( U.P.) and one unit namely Dwarikesh Dham in Bareilly District (U.P.).

Registration details

Registration No. CIN No. L15421 UP1993 PLC 018642 State code 20

Generic name of principal product of the Company

Item code No.(ITC Code) 170111.09 Product Description Cane Sugar

"2 B" - OTHER NOTES

1. SECURITIES FOR BORROWINGS:

Abbreviations:

DN - Dwarikesh Nagar Unit DP- Dwarikesh Puram Unit DD - Dwarikesh Dham Unit ROI-Rate of interest O/S- Amount outstanding Qtly.- Quarterly FCL- Foreign Currency Loan

PNB- Punjab National Bank

IDBI- IDBI Bank Limited

SUPGB- Sarva U.P.Gramin Bank

DCB- District Co-Operative Bank (Zila Sahkari Bank)

UPCB- U.P.Co-Operative Bank

SDF- Sugar Development Fund

2. Contingent liabilities not provided for

Particulars As at As at 31st March 15 30th Sep'13

(a) Claims not acknowledged as debts by the company. 20,76,408 20,76,408

(b) In respect of show cause notices from Central Excise department in various cases against 5,45,34,998 3,22,30,862 which the company has preferred appeals [net of amount reversed and payments of Rs. 2,40,72,147 (previous year Rs. 2,40,62,421)].

(c) In respect of Trade Tax and Entry Tax demand received from Uttar Pradesh Trade Tax Nil Nil authorities in various cases, in respect of which the company has preferred appeals [net of amount deposited under appeal of Rs. 3,76,453 (previous year Rs. 15,98,498)].

(d) Guarantees issued by the bankers on behalf of the Company. 69,68,525 Nil

3. a) Estimated amount of contracts remaining to be executed on capital account, net of advance of Rs. 2,05,11,055 (previous year Rs. 2,76,73,832) and not provided for is Rs. 10,53,344 (previous year Rs. 73,87,249). Other Commitments Rs. Nil (previous year Rs. Nil).

4. a) The company has made provision for gratuity and leave encashment in the nature of defined benefit obligation on the basis of actuarial valuation as per Accounting Standard AS-15. Since the liability has not been funded through a Trust or Insurer, there are no plan assets. b) i) Defined Contribution Plans :

Employer's Contribution to Provident Fund Rs. 5,20,65,182 (previous year Rs. 3,04,60,024).

5. Trade Receivable/Payables and Loans and Advances balances are subject to confirmation and reconciliation.

6. As per the Accounting Standard AS-28 'Impairment of Assets', the company has tested impairment to identify the impairment loss, if any. Based on the assessment of the existing assets, the realizable amount for all the units is higher than the carrying values of such units. Accordingly no impairment is required to be recognized during the period.

7. The company has not taken/given any assets on finance/ operating lease. Accordingly, Accounting Standard AS-19 on leases is not applicable. The company has taken various office/ residential premises and office equipment's on cancellable leases which are renewable on expiry of the respective lease period.

8. Derivative instruments and foreign currency exposures:

(a) During the period Rupee term loans of Rs. 15,000 lacs (previous year Nil) were converted into foreign currency loan of USD 2,44,40,305.80, out of which Rs. 10,000 lacs equivalent to USD 1,65,70,008.30 was reinstated as Rupees term loan during the period itself. The above loans are hedged by forward contracts here is no foreign currency exposure outstanding as at the Balance Sheet date (Previous year Rs. Nil).

(b) Particulars of un-hedged foreign currency exposures as at the Balance Sheet date are Rs. Nil (Previous year Rs. Nil).

9. There are no present obligations requiring provision in accordance with the guiding principles as enunciated in Accounting Standard AS-29 as it is not probable that an outflow of resources embodying economic benefit will be required.

10. Previous period figures have been regrouped and recasted wherever considered necessary. However, the same are not strictly comparable as the previous period figures are for the period from 01.10.2012 to 30.09.2013 whereas the current period figures are for the period from 01.10.2013 to 31.03.2015.

11 Related party disclosures as required by Accounting Standard AS-18 for the eighteen months period ended 31st March,2015

a) Names of the related parties and description of relationship:

i) Enterprises over which key management personnel are able to exercise significant influence

-Morarka Finance Limited -Dwarikesh Trading Company Limited -Dwarikesh Informatics Limited -Dwarikesh Agriculture Research Institute -Faridpur Sugars Limited (Associate Company)

ii) Key Management Personnel

-Shri G.R.Morarka Managing Director

-Shri B.J.Maheshwari Whole-time Director & Company Secretary

Cum Chief Compliance Officer

-Shri Vijay S. Banka Whole -time Director & Chief Finance Officer

iii) Relatives of Key Managerial Personnel Shri G.R.Morarka

-Smt. Smriti G. Morarka (Wife) -Ms. Priyanka G. Morarka (Daughter)

-Shri Pranay G. Morarka (Son)


Sep 30, 2013

A) Equity Shares:- The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors, If any is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

b) Preference Shares:- 12% cumulative redeemable preference shares (Series I):

1,10,000, 12% cumulative redeemable preference shares of Rs. 100 each were issued in September 1998. These preference shares were to be redeemed at par in September, 2011 which has been extended to September, 2014 by virtue of the resolution passed in the committee of preference share holders meeting held on 28th July, 2011 and the consent obtained from the concerned shareholders.

c) cumulative redeemable preference shares (Series II):

15,00,000, 8% cumulative redeemable preference shares of Rs. 100 each were issued in August, 2007. These preference shares were to be redeemed at par in August, 2012, which has been extended to August, 2015 by virtue of consent obtained from the concerned shareholders.

d) cumulative redeemable preference shares (Series III):

10,00,000, 8% cumulative redeemable preference shares of Rs. 100 each were issued in October 2012. These preference shares shall be redeemed at par in September, 2017.

e) cumulative redeemable preference shares (Series IV):

5,00,000, 8% cumulative redeemable preference shares of Rs. 100 each were allotted in April 2013. These preference shares shall be redeemed at par in March, 2018.

D Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of fve years immediately preceding the reporting date.-Nil

GENERAL INFORMATION

Dwarikesh Sugar Industries Limited (DSIL) is a public limited company domiciled in India and was incorporated in the year 1993 under the provisions of the Companies Act,1956.

Currently equity shares of the company are listed at BSE and NSE.

DSIL is integrated conglomerate, primarily engaged in manufacture of sugar and allied products. From a humble beginning in 1993, DSIL today is a multi faceted, fast growing industrial group with the strong presence in diversifed felds such as sugar manufacturing, power and Ethanol/Industrial Alcohol production.

The Company has three sugar manufacturing units, out of which 2 units namely Dwarikesh Nagar and Dwarikesh Puram are located in Bijnor District of Uttar Pradesh ( U.P.) and one unit namely Dwarikesh Dham in Bareilly District (U.P.).

Registration details

Registration No. CIN No. L15421 UP1993 PLC 018642 State code 20

Generic name of principal product of the Company

Item code No.(ITC Code) 170111.09 Product Description Cane Sugar


Sep 30, 2012

A Rights & restrictions attached to various classes of shares are as under:

a) Equity Shares:-

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors, If any, is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

b) Preference Shares:-

12% cumulative redeemable preference shares (Series I):

1.10.000, 12% cumulative redeemable preference shares of Rs. 100 each were issued in September 1998. These preference shares were to be redeemed at par in September,2011 which has been extended to September,2014 by virtue of the resolution passed in the committee of preference share holders meeting held on 28th July,2011 and the consent obtained from the concerned shareholders.

8% cumulative redeemable preference shares (Series II):

1.500.000, 8% cumulative redeemable preference shares of Rs. 100 each were issued in August,2007. These preference shares were to be redeemed at par in August,2012,which has been extended to August,2015 by virtue of consent obtained from the concerned shareholders.

* There are no outstanding amounts payable beyond the agreed period to Micro, Small and Medium enterprises as required by MSMED Act, 2006 as on the Balance Sheet date to the extent such enterprises have been identified based on information available with the company . In view of this there is no overdue interest payable.

* Includes Rs. 23,30,519 (previous year Rs. 23,30,519) representing sales tax and interest thereon paid as a matter of abundant caution under protest under applicable Trade & Sales tax Act, based on the enquiry made on the company by Uttar Pradesh Trade tax authorities in respect of diesel, steel and cement provided to contractors/ sugar cane transporters during the years 1997-98 to 2000-2001.

However, the company is confident of the non-applicability of any sales tax levy on this score as these items have been provided strictly for the activities directly related to the manufacturing process. The issue of diesel and other items has also not been classified as revenue income and has always been treated as store consumption. The company has paid the amount purely to establish its bona fide intentions and is confident of settling the issue in its favour and does not consider it necessary for making any provision.

* a) Includes Rs. 3,60,67,063 (previous year Rs. 6,79,99,320) being the amount received towards surrender of export entitlement of sugar in favour of third parties.

b) Includes Rs. 1,08,64,146 (previous year Rs. 1,74,94,659) being the amount received from sale of Carbon Emission Reductions (CERs).

* Accounting for cane purchase liability for the sugar season 2007-08 was done in the accounting year ended 30th September, 2008 at Rs. 110 per quintal based on earlier interim order of the Hon''ble Allahabad High Court (subsequently upheld by Hon''ble Supreme Court pending final decision) instead of State Advised Price (SAP) of Rs. 125 per quintal fixed by the Uttar Pradesh Government. Subsequently, Hon''ble Supreme Court , vide order dated 17th January,2012 ordered payment of the balance amount up to SAP within 3 months from the date of the said order. Accordingly, the differential cane price amounting to Rs. 22,68,64,473 (previous year Rs. Nil) has now been provided during the period under the head Raw material consumed. This amount has subsequently been paid in April,2012

* Includes provision for wealth tax of Rs. 4,33,115 for the Assessment year 2012-13 (previous year Rs. 3,77,102) as per the provisions of Wealth Tax Act, 1957 and provision for Fringe Benefit Tax pertaining to earlier years Rs. (61,575) (previous year Rs. 6,261)

NOTES ANNEXED TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2012 NOTE "28 A"

GENERAL INFORMATION

Dwarikesh Sugar Industries Limited (DSIL) is a public limited company domiciled in India and was incorporated in the year 1993 under the provisions of the Companies Act, 1956.

Currently equity shares of the company are listed at BSE and NSE.

DSIL is integrated conglomerate, primarily engaged in manufacture of sugar and allied products. From a humble beginning in 1993, DSIL today is a multi faceted, fast growing industrial group with the strong presence in diversified fields such as sugar manufacturing, power and Ethanol/Industrial Alcohol production.

The Company has three sugar manufacturing units, out of which 2 units namely Dwarikesh Nagar and Dwarikesh Puram are located in Bijnor District of Uttar Pradesh ( U.P.) and one unit namely Dwarikesh Dham in Bareilly District (U.P).

Registration details

Registration No. CIN No. L15421 UP1993 PLC 018642 State code 20

Generic name of principal product of the Company

Item code No.(ITC Code) 170111.09 Product Description Cane Sugar

1. Contingent liabilities not provided for

Particulars As at As at 30th Sept'' 12 30th Sept'' 11

(a) Claims not acknowledged as debts by the company 20,76,408 20,76,408

(b) In respect of show cause notices from Central Excise department in various 3,33,78,481 3,43,43,578 cases against which the company has preferred appeals ( net of amounts reversed and payments of Rs. 2,29,14,802 previous year Rs. 2,18,13,893).

(c) In respect of Trade Tax and Entry Tax demand received from Uttar Pradesh Nil 1,02,62,361 Trade Tax authorities in various cases, in respect of which the company has preferred appeals (net of amount deposited under appeal of Rs. 25,85,075 previous year Rs. 25,67,983).

2. a) Estimated amount of contracts remaining to be executed on capital account, net of advance of Rs. 2,74,52,015 (previous year Rs. 2,63,76,597) and not provided for is Rs. 1,31,43,996 (previous year Rs. 1,91,12,573). Other Commitments Rs. Nil (previous year Rs. Nil).

3. Aggrieved by the Order of the Directorate of Sugar, Government of India, converting un-lifted quantity of non- levy sugar of 1,77,403 quintals into levy, the company filed a writ petition with the Hon''ble Allahabad High Court. Hon''ble High Court upheld the Order of the Directorate of Sugar. The company filed SLP with the Hon''ble Supreme Court of India and the order of the Directorate of Sugar in the interim stands stayed. The company has obtained legal opinion and is advised that the order of the Directorate of Sugar is in contravention of the provisions of applicable laws and is therefore liable to be struck down. Pending disposal of the SLP, liability arising on account of the said Order, if any, has therefore not been provided.

Note: * Excludes Nil Qtls (previous year 4,040 Qtls) of brown sugar use internally for reprocessing in to white sugar.

** Excludes 1,59,510 Qtls (previous year 1,73,817 Qtls) molasses used internally for manufacturing of Industrial Alcohol in Distillery.

*** Excludes 6,16,594 Ltrs (previous year Nil ) spirit used internally manufacturing of Ethanol in Distillery.

Note: The quantities are net of:

* 489 Qtls (Previous year 787 Qtls) normal losses.

** 14,128 Ltrs (Previous year 11,438 Ltrs) normal losses and use from SDS solution.

*** 6,683 Ltrs gains (Previous year Nil Ltrs normal losses).

4. a) The company has made provision for gratuity and leave encashment in the nature of defined benefit obligation on the basis of actuarial valuation as per Accounting Standard AS-15. Since the liability has not been funded through a Trust or Insurer, there are no plan assets.

b) i) Defined Contribution Plans :

Employer''s Contribution to Provident Fund Rs. 2,62,25,374 (previous year Rs. 2,37,32,860)

ii) Defined Benefits Plans :

Liability for Gratuity is determined on actuarial basis using projected unit credit method. The details are as under:

5. Trade Receivable/Payables and Loans and Advances balances are subject to confirmation and reconciliation.

6. As per the Accounting Standard AS-28 ''Impairment of Assets'', the company has tested impairment to identify the impairment loss, if any. Based on the assessment of the existing assets, the realizable amount for all the units is higher than the carrying values of such units. Accordingly no impairment is required to be recognized during the period.

7 As per requirement of revised Schedule VI , provision of Wealth Tax and Fringe Benefit Tax (FBT) are considered in other expenditure. Accordingly, provision made for Wealth Tax and FBT amounting to Rs. 3,77,102 and Rs. (61,575) respectively earlier shown as Tax Expenses during the previous year have now been reclassified under the head "Other Expenses," which has resulted in change in profit before tax of the previous year to that extent. However, there is no change in Profit after tax.

8 Income from sale of CER , penalty received from customers on late lifting of sugar and amount received towards surrender of export entitlement of sugar in favour of third parties , earlier being shown as " Other Income" ,have now been reclassified under the head "Other Operating Income". This has resulted in change in the sales and other income of the previous year to that extent.

9 The company has not taken/given any assets on finance/ operating lease. Accordingly, Accounting Standard AS- 19 on leases is not applicable. The company has taken various office/ residential premises and office equipments on cancellable leases which are renewable on expiry of the respective lease period.

10 Society commission on purchase of sugar cane amounting to Rs. 4,82,12,723 for the period February, March and April 2012 has not been provided in view of anticipated relief/reduction in the same from the State Government based on the representation made by UPSMA. The liability, if any towards the same, will be provided in future depending on the decision of the State Government in this regard.

11 The financial statements for the year ended September 30, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended September 30, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year''s classification. The adoption of Revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements.

12 Derivative instruments and foreign currency exposures:

(a) There is no foreign currency exposure outstanding as at the Balance Sheet date (Previous year Rs. Nil).

(b) Particulars of un-hedged foreign currency exposures as at the Balance Sheet date are NIL (Previous year Rs. Nil).

13 There are no present obligations requiring provision in accordance with the guiding principles as enunciated in Accounting Standard (AS)-29 as it is not probable that an outflow of resources embodying economic benefit will be required.


Sep 30, 2009

1 SECURITIES FOR SECURED LOANS:

a) Term Loans from IDBI Bank Limited (IDBI) of Rs.6,794 lacs are secured as under:

% Term Loan of Rs 99 lacs is secured by (i) pari passu first charge on movable fixed assets including movable plant & machineries, machinery spares, tools and accessories, both present and future (save and except book debts), situated at Dwarikesh Nagar, Village Bundki and Rajupura, Post Office Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar Pradesh, (ii) pari passu first charge by way of equitable mortgage on immovable properties situated at Dwarikesh Nagar, Village Bundki and Rajupura, Post Office Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar Pradesh and (iii)paripassu second charge by way of equitable mortgage on immovable properties situated at Dwarikesh Puram, village Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh.

2 Term Loan of Rs 4,500 lacs is secured by (i) pan passu first charge on movable and immovable fixed assets (both present and future) of unit situated at Dwarikesh Dham, Village Bhagwanpur Phulwa, Tehsil Faridpur, District Bareilly, Uttar Pradesh (ii) pari passu second charge on the movable and immovable fixed assets of unit situated at Dwarikesh Nagar, Village Bundki and Rajupura, Post Office Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar Pradesh and (iii) pari passu third charge on the movable and immovable fixed assets of unit situated at Dwarikesh Puram, Village Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh.

Term Loan of Rs 1,600 lacs is secured by (i) pari passu first charge on movable and immovable fixed assets (both present and future) of unit situated at Dwarikesh Dham, Village Bhagwanpur Phulwa, Tehsil Faridpur, District Bareilly, Uttar Pradesh (ii) pari passu second charge on the movable and immovable fixed assets of unit situated at Dwarikesh Nagar, Village Bundki and Rajupura, Post Office Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar Pradesh and (iii) pari passu third charge on the movable and immovable fixed assets of unit situated at Dwarikesh Puram, Village Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh.

Term loan of Rs. 595 lacs under the Governments Scheme for Extending Financial Assistance to Sugar Undertakings 2007 is secured by residual pari-passu charges on movable & immovable fixed assets of (i) Unit -I Dwarikesh Nagar, Village Bundki and Rajupura, Post Office Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar Pradesh, (ii) Unit- II Dwarikesh Puram, Village Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh, (iii) Unit- Ill Dwarikesh Dham, Village Bhagwanpur Phulwa, Tehsil Faridpur, District Bareilly, Uttar Pradesh.

b) Term Loans from Punjab National Bank (PNB) of Rs. 27,916.84 lacs (including term loan in foreign currency equivalent to Rs 24,196 lacs) are secured as under:

C Term loan of Rs. 90 lacs is secured by (i) pari passu first charge on movable fixed assets including movable plant & machineries, machinery spares, tools and accessories, both present and future (save and except book debts) on entire block assets of Dwarikesh Nagar, Village Bundki & Rajupura, Tehsil Nagina, District Bijnor, Uttar Pradesh, and (ii) equitable mortgage on immovable properties situated at Dwarikesh Nagar, Village Bundki and Rajupura, Post Office Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar Pradesh

Term loan of Rs. 7,200 lacs (including term loan in foreign currency equivalent to Rs 7,100 lacs) is secured by (i) First charge on block assets of unit situated at Dwarikesh Puram, Village Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh (present & future) by way of hypothecation of machinery & equipment and other fixed assets and equitable mortgage on immovable properties situated at Dwarikesh Puram, Village Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh and (ii) Second pari passu charge on block assets of the unit situated at Dwarikesh Nagar, Village Bundki and Rajupura, Post Office Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar Pradesh.

Term loan of Rs. 8,459.90 lacs (including term loan in foreign currency equivalent to Rs 8,396 lacs) is secured by (i) Pari passu first charge on block of assets (both present and future), by way of hypothecation of machinery, equipment & other fixed assets and equitable mortgage on immovable properties of unit situated at Dwarikesh Dham, Village Bhagwanpur Phulwa, Tehsil Faridpur, District Bareilly, Uttar Pradesh, ii) second pari passu charge on entire block assets of Dwarikesh Nagar, Village Bundki and Rajupura,

Tehsil Nagina, District Bijnor, Uttar Pradesh and (iii) third pari passu charge on entire block assets of Dwarikesh Puram, Village Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh.

It Term loan of Rs. 5,039.94 lacs (including term loan in foreign currency equivalent to Rs 4,200 lacs) is secured by (i) pari passu first charge on specific immovable & movable fixed assets by way of hypothecation of machinery, equipment and otherfixed assets and equitable mortgage on immovable properties situated at Dwarikesh Puram, Village Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh pertaining to 24 MW Co-generation plant, and (ii) second pari passu charge on entire block assets of Dwarikesh Nagar, Village Bundki and Rajupura, Tehsil Nagina, District Bijnor, Uttar Pradesh.

All the term loans of PNB mentioned above are also secured by second pari passu charge on current assets of the company.

C Term loan of Rs. 2,377 lacs under Governments Scheme for Extending Financial Assistance to Sugar Undertakings, 2007 is secured by residual pari passu charges on movable & immovable fixed assets of (i) unit -I Dwarikesh Nagar, Village Bundki and Rajupura, Post Office Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar Pradesh, (ii) Unit-ll Dwarikesh Puram, Village Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh, (iii) Dwarikesh Dham, Village Bhagwanpur Phulwa, Tehsil Faridpur, District Bareilly, Uttar Pradesh of the Company.

C Term loan of Rs. 4,750 lacs (including term loan in foreign currency equivalent to Rs 4,500 lacs) is secured by (i) pari passu first charge on entire block assets of Dwarikesh Nagar unit by way of hypothecation of machinery, equipment & other fixed assets and equitable mortgage on immovable properties situated at Dwarikesh Nagar, Village Bundki and Rajupura, Post Office Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar Pradesh, (ii) pari passu second charge charge on entire block assets of unit situated at Dwarikesh Puram, Village Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh and iii) Pari Passu second charge on entire block assets unit situated at at Dwarikesh Dham, Village Bhagwanpur Phulwa, Tehsil Faridpur, District Bareilly, Uttar Pradesh.

c) Interest free trade tax loan of Rs. 97.26 lacs (including Rs. 22.76 lacs added during the year) from Pradeshiya Industrial & Investment Corporation of UP Limited is secured by (i) second pari passu charge on Companys immovable properties situated at Village Bundki and Rajupura, Post Office Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar Pradesh and movable fixed assets including plant & machineries, machinery spares, tools and accessories, both present and future (save and except book debts) and (ii) second pari passu charge by way of equitable mortgage on immovable properties situated at Dwarikesh Puram, Village Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh. The loan amount is repayable at the end of 5 years from the respective year of collection.

d) Loan from Sugar Development Fund of Rs. 2,458.54 lacs is secured by (i) first pari passu charge by way of equitable mortage on immovable properties and by way of hypothecation on movable properties situated at Dwarikesh Dham, village Bhagwanpur Phulwa, Tehsil Faridpur, District Bareilly, Uttar Pradesh.

All the term loans mentioned at above (a to c) are also personally guaranteed by the Chairman & Managing Director of the Company. The company has given counter guarantee to him to secure these personal guarantees.

e) Cash credit balances of Rs. 6,433.28 lacs from Punjab National Bank and IDBI Bank Limited are secured by (i) hypothecation of current assets of the Company viz. stock of sugar, molasses, chemicals, stores & spares, (Cash Credit balance of Rs 4,453.73 lacs from Punjab National Bank additionally secured by way of pledge of stock of sugar, molasses, chemicals, stores & spares) (ii) second charge on block assets immovable and movable , both present and future, of Dwarikesh Nagar, Village Bundki and Rajupura, Post Office Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar Pradesh, (iii) second charges on block assets immovable & movable, both present & future, of Dwarikesh Puram, Village Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh and (iv) second charges on block assets immovable & movable, both present & future, of Dwarikesh Dham, Village Bhagwanpur Phulwa, Tehsil Faridpur, District Bareilly, Uttar Pradesh.

The cash credit facilities are also personally guaranteed by the Chairman & Managing Director of the Company. The company has given counter guarantee to him to secure these personal guarantees

As at As at 30th Sep 09 30th Sep 08

3. Contingent liabilities not provided for

(a)In respect of show cause notices from Central Excise department in various 18,288,154 10,503,596 cases against which the company has preferred appeals.

(b) In respect of Trade Tax and Entry Tax demand received from Uttar 5,545,116 3,212,316 Pradesh Trade Tax authorities in various cases, in respect of which the company has preferred appeals (net of amount deposited under appeal of Rs.2,499,584/-, previous year Rs.2,499,584/-).

(c) Bank Guarantees given to Pollution Control Board and Petroleum 3,392,800 3,560,000 Companies.

4. Estimated amount of contracts remaining to be executed on capital account, net of advance of Rs. Nil (previous year Rs. Nil) and not provided for is Rs.34.90 lacs (previous year Rs. 140.50 lacs).

5. Loans and Advances include Rs. 2,330,51 9/- representing sales tax and interest thereon paid as a matter of abundant caution under protest under applicable Trade & Sales Tax Act, based on the enquiry made on the company by Uttar Pradesh Trade Tax authorities in respect of diesel, steel and cement provided to contractors/sugar cane transporters during the years 1997-98 to 2000-01.

However, the company is confident of the non-applicability of any sales tax levy on this score as these items have been provided strictly for the activities directly related to the manufacturing process. The issue of diesel and other items has also not been classified as revenue income and has always been treated as store consumption. The company has paid the amount purely to establish its bona fide intentions and is confident of settling the issue in its favour and does not consider it necessary for making any orovision.

6. The company has not taken any assets on finance/operating lease. Accordingly, Accounting Standard AS-19 on leases is not applicable. The company has taken various office/residential premises and office equipment on cancellable leases which are renewable on expiry of the lease period.

7. The company is governed by the provisions of Section 1 15 JB of the Income Tax Act, 1961 and provision for income tax has been made accordingly. The company has considered MAT credit entitlement for MAT paid for the current financial year and earlier financial years based on virtual certainty of sufficient future taxable income available against which the tax credit will be utilized.

The provision for Income Tax for the period is the aggregate of the provision made for the six months ended 31 st March, 2009 and the estimated provision based on the taxable income earned for the six months upto 30th September, 2009, the ultimate liability of which will be determined on the basis of the income for the period from 1st April, 2009 to 31 st March, 2010.

Provision for Wealth Tax of Rs 3,01,969/- has been made for the Assessment Year 2009-10 as per the provisions of Wealth Tax Act, 1957.

8. 15 lacs Equity Share warrants convertible into 15 lacs equity shares were allotted to promoters on 30th July 2007 on receipt of deposit @1 0% of the amount calculated at the time of allotment of warrants as per pricing formula contained in the SEBI guidelines on preferential allotment. The warrants were convertible into equity shares at the option of warrants holders at any time after 31st January 2008 but before the expiry of 18 months from the date of allotment considering the relevant date as 1st January 2008 for the purpose of determining the price of the equity shares arising out of the conversion. Out of 1 5 lacs warrants, 7.50 lacs warrants have been converted into 7.50 lacs Equity Shares in February 2008 and balance deposit on 7.50 lac warrants has been forfeited on 31st January 2009 on expiry of the last date of conversion of the warrants. The funds raised by the company through preferential allotment had been utilized for augmenting long term resources. The amount of deposit against forfeited warrants of Rs 5,986,500/- has been credited to capital reserve in Schedule 2 of the financial statements.

9. The Company, in compliance of the interim order passed by the Honble High Court of Allahabad (Lucknow Bench) on the 15th November 2007, has paid a price of Rs. 110/- per quintal for sugar cane purchased and accordingly accounted for the liability for sugar season 07-08. However, The High Court of Allahabad, by a subsequent order dated 7th July2008, upheld the validity of SAP of Rs 1 25/- per quintal announced by the State Government. Aggrieved by the said order, the UPSMA filed SLP with Honble Supreme Court of India. Honble Supreme Court, in the interim, upheld that the sugar cane purchased by the sugar mills would continue to be paid for @ Rs 110/- per quintal. In view of the above, differential liability, if any, will be accounted as and when the matter is finally settled. However, for season 2008-09, the company has paid and accounted for the cane price at SAP announced by the State Government.

10. Aggrieved by the Order of the Directorate of Sugar, Government of India, converting un-lifted quantity of non-levy sugar of 1 77,403 quintals into levy, the company filed a writ petition with the Honble Allahabad High Court.Honble High Court upheld the Order of the Directorate of Sugar. The company filed SLP with the Honble Supreme Court of India and the order of the Directorate of Sugar in the interim stands stayed. The company has obtained legal opinion and is advised that the order of the Directorate of Sugar is in contravention of the provisions of applicable laws and is therefore liable to be struck down. Pending disposal of the SLP, liability arising on account of the said order, if any, has therefore not been provided.

11. a) 1 2% Redeemable Preference Shares of Rs. 100/- each are redeemable at par in September 201 1.

b) 8% Redeemable Cumulative Preference Shares of Rs. 1 OOAeach are redeemable at par in August 201 2.

12. Capital Redemption Reserve represents reserve created on account of:

a) Buy-back of Equity Shares in the year 2000-01 in terms of provisions of section 77A of the Companies Act, 1 956.

b) Redemption of 500,000 1 1 % preference shares of Rs. 100/- each amounting to Rs.50,000,000/- in terms of Section 80 of the Companies Act, 1956.

13. Sundry creditors-others in Schedule 8 include Rs 593,796/- (previous year Rs 564,735/-) on account of unpaid dividends/fixed deposits. However, there are no amounts outstanding in respect of unpaid dividend /fixed deposits included under sundry creditors in Schedule 8, for more than seven years to be transferred to Investor Education and Protection Fund.

14. a) The company has made provision for gratuity and leave encashment in the nature of defined benefit obligation on the basis of actuarial valuation as per revised AS-15. Since the liability has not been funded through a Trust or Insurer, there are no plan assets.

b) i) Defined Contribution Plans:

Employers Contribution to Provident Fund Rs. 1 57.48 lacs ( previous year Rs 1 36.20 lacs)

15. Capital raising expenditure written off during the year Rs.3,01 1,120/-( previous year Rs.3,01 1,120/-) represents proportionate expenses incurred in placement of GDR (net of income realized during the course of placement).

16. Sundry Debtors/Creditors and Loans and Advances balances are subject to confirmation and reconciliation.

17. There are no outstanding amount payable beyond the agreed period to Micro, Small and Medium enterprises as required by MSMED Act, 2006 as on the Balance Sheet date to the extent such enterprises have been identified based on information available with the company. In view of this there is no interest payable also.

18. As per the Accounting Standard AS-28 Impairment of Assets, the company has tested impairment of fixed assets to identify the impairment loss, if any. Based on the assessment of the existing assets, the realizable amount for all the units is higher than the carrying values of such units. Accordingly no impairment is required to be recognized during the year.

19. During the year, Rupee term loans of Rs.24,1 96 lacs were converted into foreign currency loan of USD 50,1 68,930.30 . The above loans are hedged by forward contracts. There are no other foreign currency exposures.

20. Figures for the previous year have been regrouped/reclassified, wherever necessary.

21. Related party disclosures as required by Accounting Standard AS-1 8 for the year ended 30th September, 2009. a) Names of the related parties and description of relationship:

i) Associates

- Morarka Finance Limited

- Dwarikesh Trading Company Limited

- Dwarikesh Informatics Limited (Formerly Dwarikesh Samvad Limited)

- Dwarikesh Sugarcane Research Institute

ii) Key Management Personnel

- Shri G.R.Morarka Chairman &

Managing Director

- Shri BJ.Maheshwari Wholetime Director &

(w.e.f. 01.05.09) Company Secretary Cum Chief

Compliance Officer

- Shri Vijay S. Banka ( w.e.f. 01.05.09) Wholetime Director & Chief

Financial Officer

iii) Relatives of Key Managerial Personnel

Shri G.R. Morarka

- Smt. Smriti G. Morarka (Wife)

- Ms. Priyanka G. Morarka (Daughter)

- Master Pranay G. Morarka (Son)

Shri Vijay S. Banka

- Smt. Sarla V. Banka (Wife)

 
Subscribe now to get personal finance updates in your inbox!