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Notes to Accounts of Eastern Sugar & Industries Ltd.

Jun 30, 2014

I) TDS on interest other than interest on securities, salary, & fee for professional & Technical services u/s 194-A, 192 & 192-J respectively, of Income Tax Act, 1961 have not been deducted and deposited in time. Interest and penalty on delayed deposit if any, will be accounted for on cash basis.

ii) Leave encashment by the employees of the company except in the case of his or her death while in service is not allowed by the Company. Leave liability is, therefore, accounted for on cash basis.

iii) Professional Taxes and Trade License Fees are to be accounted for on cash basis.

iv) Balance Confirmation Certificates from Debtors, Creditors and Banks are awaited from the respective parties.

x) In accordance with the requirements under the Accounting Standard (AS-22), Deferred Tax

Assets (net) at the year end arising out of carry forward Business losses, carry forward of Long Term Capital Loss and unabsorbed depreciation has not been recognized in the current year in the accounts. The accounting treatment is in line with prudential accounting norms and recommendations under AS-22.

v) There is no impairment of assets. The management expects to recover amount higher than the carrying value of fixed assets.

vii) The Company has operated in one segment only during the year ended on 30th June, 2014 and hence, Segment Reporting as per AS-17 issued by the ICAI is not applicable.

ix) Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

x) Long Term Loans

a) Term Loan from Sugar Development Fund (SDF) of Rs. 1337 lakhs is secured by creating second charge on its fixed assets in favour of Central Government.

b) Cash Credit borrowing from Bank of India are secured by hypothecation of stock of sugar, stores, spares and packing material.

c) Term Loan from IDBI is secured by way of mortgage of whole of the movable properties of the company including its movable Plant & Machinery, Machinery spares, Tools & accessories and other movables, both present and future other than the movable Plant & Machinery on which the company has already created charge in favour of Bank of India (save and except book debts).

xi) Related Party Disclosure

a) Names of Related Parties:

Associate Companies: Shree Hanuman Sugar & Industries Limited

Key Managerial Personnel: Directors of the Company

b) Transaction entered into with related parties:

Shree Hanuman Sugar & Industries Ltd. During the year amounting to Rs. 177.68 lacs payable.

xii) Lease of sugar mill taken from M/s Shree Hanuman Sugar & Industries Ltd. Has been determined in the year 2005-2006 and as per the terms & conditions of the agreement entered into with the said company, all the fixed assets of the company will be acquired by the said company (erstwhile Lessor) at their gross value appearing in the books of the company as on the date of transfer, subject to the approval of the lending institutions for which they have agreed principle.

xiii) Figure's of Previous Year have been re-arranged and re-grouped, where ever considered necessary.


Jun 30, 2013

I) During the year the company has issued 49,00,000 bonus equity shares to the existing Cumulative Convertible Preference Share Holders out of the General Reserves of the company. The shares has been issued in the following terms & conditions:- a) Bonus Equity shares has been issued to 12% Cumulative Convertible Preference Share in the ratio of 7:1.

b) Bonus Equity shares has been issued to 3% Cumulative Convertible Preference Share in the ratio of 4:1.

c) These shares shall rank pari passu in all respects with and carry the same rights as the existing fully paid equity shares of the company and shall be entitled to participate in full in any dividend to be declared for financial year in which bonus shares are allotted.

ii) TDS on interest other than interest on securities, salary, & fee for professional & Technical services u/s 194-A, 192 & 192-J respectively, of Income Tax Act, 1961 have not been deducted and deposited in time. Interest and penalty on delayed deposit if any, will be accounted for on cash basis.

iii) Leave encashment by the employees of the company except in the case of his or her death while in service is not allowed by the Company. Leave liability is, therefore, accounted for on cash basis.

iv) Professional Taxes and Trade License Fees are to be accounted for on cash basis.

v) Balance Confirmation Certificates from Debtors and Creditors are awaited from the respective parties.

vi) In accordance with the requirements under the Accounting Standard (AS-22), Deferred Tax Assets (net) at the year end arising out of carry forward Business losses, carry forward of Long Term Capital Loss and unabsorbed depreciation has not been recognized in the current year in the accounts. The accounting treatment is in line with prudential accounting norms and recommendations under AS-22.

vii) There is no impairment of assets. The management expects to recover amount higher than the carrying value of fixed assets.

viii) The Company has operated in one segment only during the year ended on 30th June, 2013 and hence, Segment Reporting as per AS-17 issued by the ICAI is not applicable.

ix) Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, demand deposits with banks, other short- term highly liquid investments with original maturities of three months or less.

x) Long Term Loans

a) Term Loan from Sugar Development Fund (SDF) of Rs. 1337 lakhs is secured by creating second charge on its fixed assets in favour of Central Government.

b) Cash Credit borrowing from Bank of India are secured by hypothecation of stock of sugar, stores, spares and packing material.

c) Term Loan from IDBI is secured by way of mortgage of whole of the movable properties of the company including its movable Plant & Machinery, Machinery spares, Tools & accessories and other movables, both present and future other than the movable Plant & Machinery on which the company has already created charge in favour of Bank of India (save and except book debts)

xi) Related Party Disclosure

a) Names of Related Parties

Associate Companies: Shree Hanuman Sugar & Industries Limited

Key Managerial Personnel: Directors of the Company

b) Advances due towards Shree Hanuman Sugar & Industries Limited (Related Party) as on 30.06.2013 is Rs. 52.17 lakhs (Previous Year Rs.369.72 lakhs)

xii) Lease of sugar mill taken from M/s Shree Hanuman Sugar & Industries Ltd. Has been determined in the year 2005-2006 and as per the terms & conditions of the agreement entered into with the said company, all the fixed assets of the company will be acquired by the said company (erstwhile Lessor) at their gross value appearing in the books of the company as on the date of transfer, subject to the approval of the lending institutions for which they have agreed principle.

xiii) Figure''s of Previous Year have been re-arranged and re-grouped, where ever considered necessary.


Jun 30, 2012

1. In some cases T.D.S have not been deducted and deposited in time. Interest and penalty on T.D.S, Advance Tax & Income Tax dues, Dividend Tax if any, will be accounted for on cash basis.

2. Leave encashment by the employees of the company except in the case of his or her death while in service is not allowed by the Company. Leave liability is, therefore, accounted for on cash basis.

3. Professional Taxes and Trade License Fees are to be accounted for on cash basis.

4. Balance Confirmation Certificates from Debtors, Creditors and Banks are awaited from the respective parties.

5. There is no amount due to Micro and Small Enterprises as on the Balance Sheet date in excess of Rupees One lac to the extent such parties have been identified from the available information/documents.

6. The Company has made an ad hoc provision for gratuity amounting to Rs.46 lakhs during the year on the basis of calculation made by the management and the same is considered adequate to cover liability on account of Gratuity. However, no actuarial valuation has been madeasperAS-15.

7. Depreciation on fixed assets has been provided on straight-line basis as specified in clause 17(iv) of Accounting Policies stated above.

8. In accordance with the requirements under the Accounting information Assets (net) at the yearend arising out of carry forward Business losses, carry forward of Long Term Capital Loss and unabsorbed depreciation has not been recognized in the current year in the accounts. The accounting treatment is in line with prudential accounting norms and recommendations under AS-22.

9. There is no impairment of assets. The management expects to recover amount higher than the carrying value of fixed assets.

10. The Company has operated in one segment only during the year ended on 30th June, 2012 and hence, Segment Reporting as per AS-17 issued by the ICAI is not applicable

11. Cash Flow Statement

Statement notified under the Companies (Accounting Standards) Rules, 2006.Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing flows. The cash flows from operating, investing and financing activities of the Company are segregated.

12. Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, demand deposits with banks, other short- term highly liquid investments with original maturities of three months or less.

13. Long Term Loans

a) Term Loan from Sugar Development Fund (SDF) of Rs. 1337 lakhs is secured by creating second charge on its fixed assets in favor of Central Government.

b) Cash Credit borrowing from Bank of India are secured by hypothecation of stock of sugar, stores, spares and packing material.

c) Term Loan from IDBI is secured by way of mortgage of whole of the movable properties of the company including its movable Plant & Machinery, Machinery spares, Tools & accessories and other movables, both present and future other than the movable Plant & Machinery on which the company has already created charge in favor of Bank of India (save and except book debts)

14. Lease of sugar mill taken from M/s Shree Hanuman Sugar & Industries Ltd. Has been determined in the year 2005-2006 and as per the terms & conditions of the agreement entered into with the said company, all the fixed assets of the company will be acquired by the said company (erstwhile Lesser) at their gross value appearing in the books of the company as on the date of transfer, subject to the approval of the lending institutions for which they have agreed principle.

15. Figure''s of Previous Year have been re-arranged and re-grouped, where ever considered necessary.


Jun 30, 2011

1. Estimated amount of contracts remaining to be executed on Capital Account (net advances) and not provided for Rs. 749.46 lacs (P.Y. Rs. 749.46)

2. a) The Company has made an ad hoc provision for gratuity payable to workers earlier years amounting to Rs. 233.61 lacs on the basis of calculation made by I management.

b) Gratuity to staff employees of the Company is not payable by the Company as | the terms and conditions of their appointment. No provisions for gratuity has, thereto been made by the Company.

c) Leave encashment by the employees of the Company except in the case of his/l death while in service is not allowed by the Company. Leave liability is, thereof accounted for on cash basis.

3. Lease of the sugar mill taken from M/s Shree Hanuman Sugar & Industries Ltd has b( determined in the year 2005-2006 and as per the terms & conditions of the agree entered into with the said Company, all the fixed assets of the Company will be acquit by the said Company (erstwhile Less or) at their gross value appearing in the books of Company as on the date of transfer, subject to the approval of the lending institutions which they have agreed in principle.

4. Expenses of Rs. 434.59 lacs have been capitalized as capital work in progress during year (Previous year Rs. 434.22 lacs).

5. Depreciation on Machinery had not been provided in the earlier years as the factory cc not run during those years. However, depreciation provided on Plant & Machinery du the year is inclusive of earlier years depreciation.

6. a) Term Loan from Sugar Development Fund (SDF) of Rs 1337 lakhs is secures creating second charge on its fixed assets in favor of the Central Government

b) Cash Credit borrowings from Bank of India are secured by hypothecation of stock sugar, stores, spares & packing materials, and

c) Term Loan from IDBI is secured by way of mortgage of whole of the movable propel of the Company including its movable Plant & Machinery, Machinery Spares, Too accessories and other movables, both present and future other than the movie plant and machinery on which the company has already created charge in favor Bank of India (save and except book debts)

7. a) Balance confirmation certificates from various cane unions/ societies, loans, debtors, advances and deposits are awaited from the respective parties.

b) There is no amount due to Small Scale Industrial Undertakings (SSI) as on the Balance Sheet date to the extent such parties have been identified from the available documents/ information.

8. Additional information pursuant to the provision of paragraph 3 and 4C of part-all of Schedule VI to the Companies Act, 1956.

9. As the Company''s business activity falls within single primary segment the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" issued by The Institute of Chartered Accountants of India are not applicable.

10. Previous year''s figures have been regrouped and rearranged, wherever considered necessary.


Jun 30, 2010

1. Estimated amount of contracts remaining to be executed on Capital Account (net of advances) and not provided for Rs. 749.46 lacs (P.Y. Rs. 749.46)

2. a) The company has made an ad hoc provision for gratuity for earlier years amounting to Rs. 233.61 lacs during the preceding year on the basis of calculation made by the management.

b) Gratuity to staff employees of the Company is not payable by the Company as per the terms and conditions of their appointment. No provision for gratuity has, therefore, been made by the Company.

c) Leave encashment by the employees of the company except in the case of his/her death while in service is not allowed by the company. Leave liability is, therefore, accounted for on cash basis.

3. Lease of the sugar mill taken from M/s. Shree Hanuman Sugar & Industries Ltd has been determined in the Accounting Year 2005-06 and as per the terms & conditions of the agreement entered into with the said Company, all the fixed assets of the Company will be acquired by the said Company (erstwhile Lesser) at their gross value appearing in the books of the Company as on the date of transfer, subject to the approval of the lending institutions for which they have agreed in principle.

4. Expenses of Rs. 434.22 lacs have been capitalised as Capital Work-in-Progress during the year (P. Y. Rs. 405.22 lacs).

An amount of Rs. 5332.55 lacs has been capitalised till date, as the project is still under implementation, as certified by the management.

5. Depreciation on Machinery has not been provided during the year as the factory could not run during the year and there is no need for such provision.

6. a) Term Loan from Sugar Development Fund (SDF) of Rs. 1,337 lakhs is secured by creating second charge on its fixed assets in favour of the Central Government;

b) Cash Credit borrowings from Bank of India are secured by hypothecation of stock of sugar, stores, spares & packing materials, and

c) Term Loan from IDBI is secured by way of mortgage of whole of the movable properties of the company including its movable Plant & Machinery, Machinery Spares, Tools & accessories and other movables, both present and future other than the movable plant and machinery on which the company has already created charge in favour of Bank of India (save and except book debts).

7. a) Balance confirmation certificates from various cane unions/societies, loans, debtors, advances and deposits are awaited from the respective parties.

b) There is no amount due to Small Scale Industrial Undertakings (SSI) as on the Balance Sheet date to the extent such parties have been identified from the available documents/information.

8. Additional information pursuant to the provision of paragraph 3 and 4C of part-II of Schedule- VI to the Companies Act, 1956.

9. As the Company's business activity falls within single primary segment viz. sugar, the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" issued by The Institute of Chartered Accountants of India are not applicable.

10. Previous years figures have been regrouped and rearranged, wherever considered necessary.

 
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