Mar 31, 2015
1. Security & Other Terms
(i) Pari passu first charges on fixed assets of the Ambasamudram unit
of the company with other members of the consortium. Second paripassu
charge on the current assets of the Ambasamudram unit and Naidupet unit
of the company with other members of the consortium. Second paripassu
charge on the fixed assets for Naidupet unit of the company with other
members of the consortium and also personal guarantee of the three
directors and pledge of 51% of the promoters shareholding in the
company. The repayment of all the term loan are as per the package
mentioned in CDR Scheme. The first installment due of CDR will be
September 2014.
(ii) Pari passu first charge on the fixed assets of the Naidupet unit
of the company with other members of the consortium financed for this
project. Second paripassu charge on the current assets of the Naidupet
unit of the company with other members and personal guarantee of three
directors. The term loans are repayable in quarterly installments.
(iii) Pari passu first charge by way of a hypothecation of all moveable
assets (except book debts) including moveable machinery, machinery
spares, tools and accessories both present and future pertaining to
bagasse based cogeneration power plant at Idaikkal village,
Ambasamudram Taluk, Tirunelveli Dist, Tamilnadu. The term loan is
repayable in quarterly installments.
2. CONTINGENT LIABILITIES & COMMITMENTS
(i) Disputed Interest on Purchase Tax 729.59 729.59
(The Company has applied for waiver of Interest,
which the company is hopeful of getting waiver)
(ii) Guarantees
Indian Bank, Chennai 20.50 20.50
Andhra Bank, Mount Road, Chennai 2.03 2.03
Indian Bank, Naidupet 43.00 43.00
3. All the investments held by the company are long term in nature
4. Other Expenses include Rs. 150.00 Lakhs written off being 1/10th
of total discount on issue of shares made during the year 2000-2001.
The balance still to be written off is Rs. 900.00 Lakhs.
5. Previous year''s figures have been regrouped / reclassified
wherever necessary to correspond with the current year''s classification
/ disclosure.
6. Balances under trade payables, trade recceivables, cane suppliers
and harvester advance are subject to confirmation from the concerned
parties and reconciliation. The impact of this on the accounts is
presently not acertainable.
Mar 31, 2014
1. SHARE CAPITAL
Note : The Company has only one class of shares referred to as equity
shares having a par value of Rs. 10/-
2. RESERVES AND SURPLUS
Empee Sugars and Chemicals Ltd has received 0% convertible preference
share application money of Rs.10/- each at a premium of Rs.140/- each
from the parent company, M/s. Empee Distilleries Ltd from 7th July 2008
to 30th September 2012 towards promoter share for the project
implementation of Integrated Sugar Complex which could not be allotted
to the applicant company in view of non receipt of SEBI and Stock
Exchanges approval. In view of this the company has gone for Composite
Scheme of Arrangement of Empee Distilleries Ltd and Empee Sugars and
Chemicals Ltd and Appollo Wind Energy Pvt Ltd and their respective
shareholders. The company has filed the respective Petitions and the
Madras High Court has sanctioned the scheme subject to the similar
approval from the High Court of Andhra Pradesh which is under progress.
3. LONG-TERM BORROWINGS
3.1 Security & Other Terms
(i) Pari passu first charges on fixed assets of the Ambasamudram unit
of the company with other members of the consortium. Second paripassu
charge on the current assets of the Ambasamudram unit and Naidupet unit
of the company with other members of the consortium. Second paripassu
charge on the fixed assets for naidupet unit of the company with other
members of the consortium and also personal guarantee of the three
directors and pledge of 51% of the promoters shareholding in the
company. The repayment of all the term loan are as per the package
mentioned in CDR Scheme. The first installment due of CDR will be
September 2014.
(ii) Pari passu first charge on the fixed assets of the Naidupet unit
of the company with other members of the consortium financed for this
project. Second paripassu charge on the current assets of the naidupet
unit of the company with other members and personal guarantee of three
directors. The term loans are repayable in quarterly installments.
(iii) Paripassu first charge by way of a hypothecation of all moveable
assets (except book debts) including moveable machinery, machinery
spares, tools and accessories both present and future pertaining to
bagasse based cogeneration power plant at idaikkal village,
Ambasamudram Taluk, Tirunelveli Dist, Tamilnadu. The term loan is
repayable in quaterly installments.
4. TRADE PAYABLES
The vendors of the Company are yet to submit their status under Micro,
Small and Medium Enterprises; hence the relevant information is not
available with the company. Accordingly no disclosures relating to
Micro, Small and Medium Enterprises have been made in the Accounts. The
above amount were subject to confirmation.
5. CONTINGENT LIABILITIES & COMMITMENTS
Particulars Year Ended Period Ended
March 31, 2014 March 31, 2013
(12 Months) (18 Months)
(i) Disputed Interest on Purchase Tax 729.59 729.59
(The Company has applied for waiver of
Interest, which the company is hopeful
of getting waiver)
(ii) Guarantees
Indian Bank, Chennai 20.50 20.50
Andhra Bank, Mount Road, Chennai 2.03 2.03
Indian Bank, Naidupet 43.00 43.00
(iii) Estimated amount of Capital
contracts remaining to be executed is - -
6. All the investments held by the company are long term in nature
7. Other Expenses include Rs. 150.00 Lakhs written off being 1/10th of
total discount on issue of shares made during the year 2000-2001. The
balance still to be written off is Rs. 1050.00 Lakhs
8. STATUS OF MERGER
The company is to be merged with Empee Distilleries Ltd w.e.f. 1.4.2011
under Scheme of Arrangement under Sec.391 and 394 of the Companies Act,
1956. The Scheme got approval from the HonÂble Madras High Court and
the hearings in HonÂble Andhra Pradesh High Court are under progress.
9. EMPLOYEE BENEFITS UNDER DEFINED BENEFIT PLANS
Notes :
a. The entire Plan Assets are managed by Reliance Life Insurance
Company Ltd.,
b. The expected return on Plan Assets is as furnished by a Qualified
Actuary
c. The estimate of future salary increase takes into account inflation,
likely increments, promotions and other relevant factors.
10. The Revised Schedule VI has become effective from 1st April 2011
for the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous yearÂs figures have been regrouped / reclassified
wherever necessary to correspond with the current yearÂs classification
/ disclosure.
11. Balances under trade payables, trade receivables, Cane suppliers
and harvester advance are subject to confirmation from the concerned
parties and reconciliation. The impact of this on the accounts is
presently not ascertainable.
Mar 31, 2013
1.1 Security & Other Terms
(i) Pari passu first charges on fixed assets of the Ambasamudram unit
of the company with other members of the consortium. Second paripassu
charge on the current assets of the Ambasamudram unit and Naidupet unit
of the company with other members of the consortium. Second paripassu
charge on the fixed assets for naidupet unit of the company with other
members of the consortium and also personal guarantee of the three
directors and pledge of 51% of the promoters shareholding in the
company. The repayment of all the term loan are as per the package
mentioned in CDR Scheme.
(ii) Pari passu first charge on the fixed assets of the Naidupet unit
of the company with other members of the consortium financed for this
project. Second paripassu charge on the current assets of the naidupet
unit of the company with other members and personal guarantee of three
directors. The term loans are repayable in quarterly installments.
(iii) Paripassu first charge by way of a hypothecation of all moveable
assets (except book debts) including moveable machinery, machinery
spares, tools and accessories both present and future pertaining to
bagasse based cogeneration power plant at idaikkal village,
Ambasamudram Taluk, Tirunelveli Dist, Tamilnadu. The term loan is
repayable in quaterly installments.
2. All the Investments held by the company are long term In nature
3. Other Expenses include Rs. 150.00 Lakhs written off being 1/10th of
total discount on issue of shares made during the year 2000-2001. The
balance still to be written off is Rs. 1200.00 Lakhs
4. The Revised Schedule VI has become effective from 1st April 2011
for the preparation of financial statements. This has significantly
Impacted the disclosure and presentation made In the financial
statements. Previous year''s figures have been regrouped / reclassified
wherever necessary to correspond with the current year''s classification
/ disclosure.
Sep 30, 2011
1. The Company has closed the accounting year on 30.09.2011 for the 18
months period from 01.04.2010 to 30.09.2011. The company has received
approval from Registrar of Companies vide letter dated 25.08.2011 for
the extension of the financial year up to 18 months period.
2. SECURED LOANS:
a. Working capital facility from Indian Bank, Ethiraj Salai Branch,
Chennai for Rs. .1350.00 lacs. (Balance as on 30.09.2011 Rs. .1299.00 Lacs)
Secured by Paripassu charge on hypothecation of raw materials, stores
and consumables, work-in-process, finished goods and sales receivables
(not older than 90 days) and by second charge on fixed assets of the
Naidupet Unit of the company with other members of the consortium and
personal guarantee of Three Directors.
b. Working capital facility from Union Bank of, IF Branch, Chennai for
Rs. .1350.00 lacs (Balance as on 30.09.2011 Rs. .1388.27 lacs). Secured by
Paripassu charge on hypothecation of raw materials, stores and
consumables, work-in-process, finished goods and sales receivables (not
older than 90 days) and by second charge on fixed assets of the
Naidupet Unit of the company with other members of the consortium and
personal guarantee of Three Directors.
c. Working Capital Term Loan facility for Indian Bank, Ethiraj Salai
Branch for Rs..775.00 lacs(Balance as on 30.09.2011 Rs..875.81 Lacs),
secured by Paripassu charge on the fixed assets of the Naidupet unit of
the company with other members of the consortium and personal guarantee
of Three directors
d. Working Capital Term Loan facility for Union Bank of India, IF
Branch for Rs..775 lacs(Balance as on 30.09.2011 Rs..673.25 lacs), secured
by Paripassu charge on the fixed assets of the Naidupet unit of the
company with other members of the consortium and personal guarantee of
Three directors
e. Working Capital Term Loan facility for Bank of Maharashtra, Mount
Road Branch for Rs..228.30 lacs(Balance as on 30.09.2011 Rs..156.08 Lacs),
secured by Paripassu charge on the fixed assets of the Naidupet unit of
the company with other members of the consortium and personal guarantee
of Three directors
f. Working Capital Term Loan facility for Federal Bank, Mount Road
Branch for Rs..242.13 lacs (balance as on 30.09.2011 Rs..134.41 lacs),
secured by Paripassu charge on the fixed assets of the Naidupet unit of
the company with other members of the consortium and personal guarantee
of Three directors
g. Term Loan facility from Andhra Bank, Mount Road Branch, Chennai for
Rs..4770.00 lacs (balance as on 30.09.2011 Rs..4135.92lacs) is secured by
Paripassu charge on the fixed assets of the Ambasamudram unit of the
company with other members of the consortium. Second paripassu charge
on the current assets of the Ambasamudram unit of the company with
other members of the consortium and personal guarantee of the Three
Directors.
h. Term Loan facility from Indian Bank, Ethiraj Salai Branch, Chennai
for Rs..1920.00 lacs (balance as on 30.09.2011 Rs..1800.00 lacs) is secured
by Paripassu charge on the fixed assets of the Ambasamudram unit of the
company with other members of the consortium. Second paripassu charge
on the current assets of the Ambasamudram unit of the company with
other members of the consortium and personal guarantee of the Three
Directors.
i. Term Loan facility from Union Bank of India, IF Branch, Chennai for
Rs..2860 (lacs) (balance as on 30.09.2011 Rs..2389.78 lacs) is secured by
Paripassu charge on the fixed assets of the Ambasamudram unit of the
company with other members of the consortium. Second paripassu charge
on the current assets of the Ambasamudram unit of the company with
other members of the consortium and personal guarantee of the Three
Directors.
j. Term Loan facility from Indian Overseas Bank, Cathedral Branch, and
Chennai for Rs..2860.00 lacs (balance as on 30.09.2011 Rs..2587.52 lacs) is
secured by Paripassu charge on the fixed assets of the Ambasamudram
unit of the company with other members of the consortium. Second
paripassu charge on the current assets of the Ambasamudram unit of the
company with other members of the consortium and personal guarantee of
the Three Directors.
k. Term Loan facility from Bank of India, Chennai Corporate Banking
Branch, and Chennai for Rs..7150.00 lacs (balance as on 30.09.2011
Rs..6239.93 lacs) is secured by Paripassu charge on the fixed assets of
the Ambasamudram unit of the company with other members of the
consortium. Second paripassu charge on the current assets of the
Ambasamudram unit of the company with other members of the consortium
and personal guarantee of the Three Directors.
l. Term Loan facility from Punjab National Bank, Large Corporate
Branch, Chennai for Rs..4770.00 lacs (balance as on 30.09.2011 Rs..4309.58
lacs) is secured by Paripassu charge on the fixed assets of the
Ambasamudram unit of the company with other members of the consortium.
Second paripassu charge on the current assets of the Ambasamudram unit
of the company with other members of the consortium and personal
guarantee of the Three Directors.
m. Term Loan facility from Oriental Bank of Commerce, Dr. Radhakrishnan
Salai Branch, and Chennai for Rs..4770.00 lacs (balance as on 30.09.2011
Rs..4291.77 lacs) is secured by Paripassu charge on the fixed assets of
the Ambasamudram unit of the company with other members of the
consortium. Second paripassu charge on the current assets of the
Ambasamudram unit of the company with other members of the consortium
and personal guarantee of the Three Directors.
n. Working Capital facility from Andhra Bank, Mount Road Branch,
Chennai for Rs..2227.00 lacs (balance as on 30.09.2011 Rs..3746.33 lacs) is
secured by Paripassu charge on the current assets of the Ambasamudram
unit of the company with other members of the consortium. Second
paripassu charge on the fixed assets of the Ambasamudram unit of the
company with other members of the consortium and personal guarantee of
the Three Directors.
o. Working Capital facility from Indian Bank, Ethiraj Salai Branch,
Chennai for Rs..870.00 lacs (balance as on 30.09.2011 Rs..703.43 lacs) is
secured by Paripassu charge on the current assets of the Ambasamudram
unit of the company with other members of the consortium. Second
paripassu charge on the fixed assets of the Ambasamudram unit of the
company with other members of the consortium and personal guarantee of
the Three Directors.
p. Working Capital facility from Indian Overseas Bank, Cathedral
Branch, Chennai for Rs..1300.00 lacs (balance as on 30.09.2011 Rs..1107.90
lakhs) is secured by Paripassu charge on the current assets of the
Ambasamudram unit of the company with other members of the consortium.
Second paripassu charge on the fixed assets of the Ambasamudram unit of
the company with other members of the consortium and personal guarantee
of the Three Directors.
q. Working Capital facility from Bank of India, Chennai Corporate
Banking Branch, Chennai for Rs..2700.00 lakhs (balance as on 30.09.2011
Rs..2329.82 lacs) is secured by Paripassu charge on the current assets of
the Ambasamudram unit of the company with other members of the
consortium. Second paripassu charge on the fixed assets of the
Ambasamudram unit of the company with other members of the consortium
and personal guarantee of the Three Directors.
r. Working Capital facility from Punjab National Bank, Large Corporate
Branch, Chennai for Rs..2613.00 lakhs (balance as on 30.09.2011 Rs..2195.49
lakhs) is secured by Paripassu charge on the current assets of the
Ambasamudram unit of the company with other members of the consortium.
Second paripassu charge on the fixed assets of the Ambasamudram unit of
the company with other members of the consortium and personal guarantee
of the Three Directors.
s. Working Capital facility from Oriental Bank of Commerce, Dr.
Radhakrishnan Salai Branch, Chennai for Rs...2200.00 (balance as on
30.09.2011 Rs..2558.98 lakhs) is secured by Paripassu charge on the
current assets of the Ambasamudram unit of the company with other
members of the consortium. Second paripassu charge on the fixed assets
of the Ambasamudram unit of the company with other members of the
consortium and personal guarantee of the Three Directors.
t. Working Capital facility from Union Bank of India, IF Branch, and
Chennai for Rs...900.00 lakhs (balance as on 30.09.2011 Rs..772.58 lakhs)
is secured by Paripassu charge on the current assets of the
Ambasamudram unit of the company with other members of the consortium.
Second paripassu charge on the fixed assets of the Ambasamudram unit of
the company with other members of the consortium and personal guarantee
of the Three Directors.
u. Sugar Development fund from government of India, Ministry of
Consumer affairs, New Delhi for Rs..3997 Lacs. (balance as on 30.9.2011
is Rs..3847.47 Lacs) is secured by first paripassu charge by way of a
hypothecation of all moveable assets (except book debts) including
moveable machinery, machinery spares, tools and accessories both
present and future pertaining to bagassee based cogeneration power
plant at Idaikkal village, Ambasamudram Taluk, Tirunelveli Dist
Tamilnadu.
v. Sugar Development fund from government of India, Ministry of
Consumer affairs, New Delhi for Rs..1812 Lacs. (balance as on 30.9.2011
is Rs..906.20 Lacs) is secured by first paripassu charge by way of a
hypothecation of all moveable assets (except book debts) including
moveable machinery, machinery spares, tools and accessories both
present and future pertaining to bagassee based cogeneration power
plant at Idaikkal village, Ambasamudram Taluk, Tirunelveli Dist
Tamilnadu.
3. Contingent Liabilities, Guarantees & Capital commitments
A. Contingent Liabilities
Particulars Rs.. in Lacs Rs.. in Lacs
30.09.2011 31.03.2010
a) Claims against the company not Nil 172.63
acknowledged as debts
b) Disputed Purchase Tax 729.59** 1175.69*
*includes principal and interest
**includes only interest
4. Disclosure in respect of employee benefits under Accounting Standard
(AS) Â 15 (Revised) "Employees Benefits" prescribed by the Companies
(Accounting Standards) Rules, 2006.
a) Defined Contribution Plans: Amount of Rs.. 262.59 Lacs (previous year
Rs.. 35.98) pertaining to employers'' contribution to provident fund,
gratuity provision and leave encashment provision is recognized as an
expense
(vii) General description of defined benefits plan:
Gratuity Plan (Defined benefit plan)
The Company operates gratuity plan wherein every employee is entitled
to the benefit equivalent to 15 days salary (includes dearness
allowance) last drawn for each completed year of service. The same is
payable on termination of service, or retirement, or death whichever is
earlier. The benefit vests after five years of continuous service.
5. Sundry Creditors and Debtors balances are subject to confirmation
by the parties concerned
6. All the investments held by the company are long term in nature
7. Miscellaneous expenditure includes Rs..150 Lacs written off during
the period pertaining to discount on issue of shares made during the
year 2000-2001(being one tenth of the total amount of Rs..1500 Lacs).
8. The company has declared and paid an interim dividend of (5% on the
equity capital of equity capital of Rs..4197.29 Lacs) Rs..209.86 Lacs
calculated on available profits of Rs..1499.41 Lacs (unaudited) as on
30.9.2010. The profit made for the year 2010-11 (12 months) is
sufficient to justify the payment of interim dividend after making a
provision for depreciation for 12 months and unabsorbed depreciation
for the earlier years. The company has incurred substantial losses
during the 5th and 6th quarters of the extended financial year ending
30th September 2011 (18 months) which has eroded the available profits
and reserves.
9. The company has received share application money (towards 0%
convertible preference shares) to the tune of Rs..137.95 Crores from its
holding company (M/s Empee Distilleries Limited) and the same is
pending allotment as on the balance sheet date. The company has fully
utilized the application money for meeting the capital cost at
Ambasamudram project. The company is exploring ways and means to make
allotment of shares at the earliest taking into account the current
market prices and market movements.
10. The Government of Andhra Pradesh by its order from Industries &
Commerce (Sugar) Department has permitted the Company to pay the
arrears of Purchase Tax amounting to Rs..1248.76 Lakhs (which includes a
sum of Rs...729.58 lakhs as interest) in three equal annual installments
along with interest @10.5% p.a. During the year ended 30.9.2011, the
company has provided a sum of Rs.. 519.18 Lacs being the principal
portion of the aforesaid tax in the books of accounts. The Company has
sent the request letter to the concerned Government Departments to
waive off the interest portion of Rs..729.58 Lacs. In the opinion of the
management, the company will get the favorable reply from the
Government and accordingly no liability has been provided in the books.
11. Depreciation amounting to Rs..438.12 Lakhs related to the previous
years from 01.10.1996 to 31.03.1999 has been provided during the period
and shown separately in the fixed assets schedule.
13. Quantum of Excise Duty included in closing stock of finished goods
is Rs. 308.10 Lacs.
14. Previous year''s figures are not comparable with current period
ended 30.9.2011 as the former is 12 months and the latter is 18 months.
However previous year figures have been regrouped or reclassified
wherever necessary to confirm with the current period''s classification.
Mar 31, 2010
1. Contingent Liabilities
1.1 Claims against the company not acknowledged as debts: Rs. 172.63
lakhs
1.2 Estimated amount of capital contracts remaining to be executed (Net
of Advances): Rs 4221.81 Lakhs.
1.3 Purchase tax: Rs 1175.69 Lakhs (including Interest) (Note-10)
2. National Saving Certificates VIII issue of Rs.0.13 lakhs shown
under investment are under lien to Sales Tax authorities & Agricultural
Department towards security deposits.
3. Stock of Stores, Spares and packing materials have been physically
verified at the year end and valued at cost on FIFO basis. The
valuation of the stocks of sugar and spirit are valued at estimated net
realizable value. Sugar, Organic Manure, Sugar and Molasses in Process
are valued at estimated net realization value.
4. Balances with bank in fixed deposit include:
i) Rs. 18.52 lakhs under lien to banks for guarantees issued by them.
ii) Rs. 0.02 lakhs under lien to sales tax authorities towards security
deposits.
5. In the absence of receipt of information regarding small scale
industrial status from the parties, the details of names of small scale
industrial undertaking to which the company owe any sum together with
interest outstanding for more than 30 days could not be ascertained.
6. Balances in some of the parties accounted are subject to
confirmation.
7. Depreciation amounting to Rs.438.12 lakhs related to the previous
years from 1.10.1996 to 31.03.1999 has not been provided.
8. The Government of Andhra Pradesh by its Order dated 13.10.2003
through Abstract from Industries & Commerce (Sugar) Department has
permitted the Company to pay the arrears of Purchase Tax amounting to
Rs.532.57 lakhs (which includes a sum of Rs.10.40 lakhs as interest) in
three equal annual installments along with interest @ 10.5% p.a. The
company has sent the request letter to the concerned Government
Departments to waive off the purchase tax and interest thereon. In the
opinion of the management, the company will get the favourable reply
from the Government and accordingly no liability has been provided in
the books.
9. Provision for Minimum Alternate Tax of Rs 9.04 lacs is provided
for Income Tax has been provided.
10. Related Party Transactions:
A. Holding Company:
1. Empee Distilleries Limited. .
B. Fully Owned Subsidiary:
1. Empee Power Company (India) Limited
C. Other Group Companies:
1. Empee International Hotels & Resorts Ltd
2. South (India) Hotels Pvt. Ltd
3. Empee Hotels Ltd
4. Apollo Alchobev Limited
5. Empee Holding Limited.
6. Aruna Exports Pvt Ltd
7. Aruna Constructions (India) Ltd
8. Empee Marine Products Limited
9. Empee Leasing & Finance Ltd
10. Empee Agro Farm Products Pvt Ltd
11. Universal Spirits Limited
12. Empee Construction Company Pvt Ltd
13. Empee Power and Infrastructure Pvt Ltd
14. EDL Properties Limited.
15. Apollo Wind Energy Pvt Ltd.
16. Apollo Beers Pvt Ltd
17. Shainvest Holdings Ltd
18. Apollo Distilleries Pvt Limited.
11. The company has imported 44450 MTs of raw sugar resulting in an
export obligation of 42330 MTs. The company has exported 10000 MTs of
sugar against this obligation and balance is pending compliance.
12. The previous years figures have been regrouped/rearranged,
wherever considered necessary.
Mar 31, 2009
1. Contingent Liabilities
1.1 Claims against the company not acknowledged as debts: Rs.172.63
lakhs
1.2 Estimated amount of capital contracts remaining to be executed (Net
of Advances): Rs 16452.34 Lakhs.
1.3 Purchase tax: Rs 1035.05 Lakhs (including Interest) (Note-10)
2. National Saving Certificates VIII issue of Rs.0.13 lakhs shown
under investment are under lien to Sales Tax authorities & Agricultural
Department towards security deposits.
3. Stock of Stores, Spares and packing materials have been physically
verified at the year end and valued at cost on FIFO basis. The
valuation of the stocks of sugar and spirit are valued at estimated net
realizable value. Sugar, Organic Manure, Sugar and Molasses in Process
are valued at estimated net realization value.
4. Balances with bank in fixed deposit include:
i) Rs.18.00 lacs under lien to banks for guarantees issued by them.
ii) Rs.0.02 lacs under lien to sales tax authorities towards security
deposits.
5. In the absence of receipt of information regarding small scale
industrial status from the parties, the details of names of small scale
industrial undertaking to which the company owe any sum together with
interest outstanding for more than 30 days could not be ascertained.
6. Balances in some of the parties accounted are subject to
confirmation.
7. Depreciation amounting to Rs.438.12 lakhs related to the previous
years from 1.10.1996 to 31.03.1999 has not been provided.
8. The Government of Andhra Pradesh by its Order dated 13.10.2003
through Abstract from Industries & Commerce (Sugar) Department has
permitted the Company to pay the arrears of Purchase Tax amounting to
Rs.532.57 lakhs (which includes a sum of Rs.10.40 lakhs as interest) in
three equal annual installments along with interest @ 10.5% p.a. The
company has sent the request letter to the concerned Government
Departments to waive off the purchase tax and interest thereon. In the
opinion of the management, the company will get the favourable reply
from the Government and accordingly no liability has been provided in
the books.
9. Provision for Minimum Alternate Tax of Rs 20.38 lacs is provided
for Income Tax and Fringe Benefit Tax (FBT) of Rs.0.87 lacs has been
provided.
10. Related Party Transactions:
A. Holding Company:
Empee Distilleries Limited.
B. Fully Owned Subsidiary:
Empee Power Company (India) Limited
C. Other Group Companies:
1. Empee International Hotels & Resorts Ltd 2. South (India) Hotels
Pvt. Ltd 3. Empee Hotels Ltd 4. Apollo Alchobev Limited 5. Empee
holding Limited. 6. Aruna Exports Pvt Ltd 7. Aruna Constructions
(India) Ltd 8. Empee Marine Products limited 9. Empee Transport &
Logistics Ltd 10. Empee Agro Farm Products Pvt Ltd 11. Universal
Spirits Limited 12. Empee Construction Company Pvt Ltd 13. Empee
Power and Infrastructure Pvt Ltd 14. EDL Properties Private Limited.
15. Apollo Wind Energy Pvt Ltd. 16. Apollo Beers Pvt Ltd 17.
Shainvest Holdings Ltd 18. Apollo Distilleries Pvt Limited.
11. The company has imported 44450 MTs of raw sugar resulting in an
export obligation of 42330 MTs. The company has exported 10000 of
sugar against this obligation and balance is pending compliance.
12. The previous years figures have been regrouped/rearranged,
wherever considered necessary.
Jun 30, 2008
1. Contingent Liabilities
1.1 Claims against the company not acknowledged as debts: Rs. 172.63
lakhs
1.2. Estimated amount of capital contracts remaining to be executed
(Net of Advances): Rs 14590.50 lakhs.
1.3. Purchase tax: Rs.959.49 lakhs (including Interest) (Note 10)
2. National Saving Certificates VIII issue of Rs. 0.13 lakhs shown
under investment are under lien to Sales Tax authorities & Agricultural
Department towards security deposits.
3. Stock of Stores, Spares and packing materials have been physically
verified at the year end and valued at cost on FIFO basis. The
valuation of the stocks of sugar and spirit are valued at estimated net
realizable value. Sugar, Organic Manure, Sugar and Molasses in Process
are valued at estimated net realization value.
4. Balances with bank in fixed deposit include:
i) Rs. 18.00 lakhs under lien to banks for guarantees issued by them.
ii) Rs.0.02 lakhs under lien to sales tax authorities towards security
deposits.
5. In the absence of receipt of information regarding small scale
industrial status from the parties, the details of names of small scale
industrial undertaking to which the company owe any sum together with
interest outstanding for more than 30 days could not be ascertained.
6. Balances in some of the parties accounted are subject to
confirmation.
7. Depreciation amounting to Rs. 438.12 lakhs related to the previous
years from 1.10.1996 to 31.03.1999 has not been provided.
8. The Government of Andhra Pradesh by its Order dated 13.10.2003
from Industries & Commerce (Sugar) Department has permitted the Company
to pay the arrears of Purchase Tax amounting to Rs. 532.57 lakhs (which
includes a sum of Rs. 10.40 lakhs as interest) in three equal annual
installments along with interest @ 10.5% p.a. The company has sent a
request letter to the concerned Government Departments to waive off the
purchase tax and interest thereon. In the opinion of the management,
the company will get a favourable reply from the Government and
accordingly no liability has been provided in the books.
9. Provision for Minimum Alternate Tax of Rs. 4.51 lacs is provided
towards Income Tax and for Fringe Benefit Tax (FBT) Rs. 1.50 lakhs has
been provided.
10. The company has imported 44450 MTs of raw sugar resulting in an
export obligation of 42330 MTs. The company has exported 10000 MTs of
sugar against this obligation and balance is pending compliance.
11. The previous years figures have been regrouped/rearranged,
wherever necessary.
Jun 30, 2007
II NOTES ON ACCOUNTS
Contingent Liabilities
Claims against the company not acknowledged as debts: Rs. 172.63
lakhs
Estimated amount of capital contracts remaining to be executed (Net
of Advances): Rs 41.82 lakhs.
Purchase tax : Rs.818.15 lakhs (including Interest) (Note- 11)
National Saving Certificates VIII issue of Rs.0.11 lakhs shown
under investment are under lien to Sales Tax authorities towards
security deposits.
The Commissioner of Income Tax (Appeals) Central I, Chennai - 600
034, has allowed our appeal against the addtion amounting to Rs. 457.84
lakhs in the income for the Assessment Year 2002 - 03 by his order
dated 28.3.2006.
Stock of Stores, Spares and packing materials have been physically
verified at the year end and valued at cost on FIFO basis. The
valuator: of the stocks of sugar and spirit are valued at estimated net
realizable value. Sugar, Organic Manure, Sugar and Molasses in Process
are valued at estimated net realizetion value.
Balances with bank in fixed deposit include: i) Rs.8.00 lacs under
lien to banks for guarantees issued by them,
ii) Rs.0.02 lacs under lien to sales tax authorities towards security
deposits.
In the absence of receipt of information regarding small scale
industrial status from the parties, the details of names of small scale
industrial undertaking to which the company owe any sum together with
interest outstanding for more than 30 days could not be ascertained.
Balances in some of the parties accounted are subject to
confirmation.
Depreciation amounting to Rs.438.12 lakhs related to the previous
years from 1.10.1996 to 31.03.1999 has not been provided. - ;
The Government of Andhra Pradesh by its Order dated 13.10.2003
through Abstract from Industries & Commerce (Sugar) Department has
permitted the Company to pay the arrears of Purchase Tax amounting to
Rs.532.57 lakhs (which includes a sum of Rs. 10.40 lakhs as interest)
in three equal annual installments along with interest @ 10.5% p.a. The
company has sent the request letter to the concerned Government
Departments to waive off the purchase tax and interest thereon. In the
opinion of the management, the company will get the favourable reply
from the Government and accordingly no liability has been provided in
the books.
In view of the carried forward losses, no provision is considered
necessary for Income Tax. However Fringe Benefit Tax (FBT) has been
provided.
To the Board of Directors of M/s.Empee Sugars and Chemicals Limited on
the Consolidated Financial Statements of Empee Sugars and Chemicals
Limited and its Subsidiary.
I have audited the attached Consolidated Balance Sheet of M/s.Empee
Sugars and Chemicals Limited and its subsidiary as at 30th June 2007,
the Profit and Loss Account and the Cash Flow Statement for the period
ended on that date, which I have signed under reference to this report.
These Consolidated financial statements are the responsibility of the
Companys Management. My responsibility is to express an opinion on
these financial statements based on the audit.
I conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that I plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts are
disclosures in the financial statements. An audit also includes
assessing accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. I believe that the audit provides a reasonable basis for
my opinion.
I report that the consolidated financial statements have been prepared
by the company in accordance with the requirements of Accounting
Standard 21, Consolidated Financial Statements, issued by the Institute
of Chartered Accountants of India and on the basis of the separate
audited financial statements of Empee Sugars and Chemicals Limited and
its subsidiary where the audited financial statements have been
considered and included in the consolidated financial statements.
On the basis of the information and explanation given to me and on
consideration of the separate audit reports on individual audited
financial statement of Empee Sugars and Chemicals Limited and its
Subsidiary, I am of the opinion that the Consolidated Financial
Statements give a true and fair view in conformity with the accounting
principles generally accepted in India.
i. In the case of Consolidated Balance Sheet, of the state of affairs
of the Company as at 30th June 2007. ii. In the case of Consolidated
Profit and Loss Account of the PROFIT for the year ended on that date;
and iii. In the case of Consolidated Cash Flow Statement, of the cash
flows for the year ended on that date.
SCHEDULED
NOTES FORMING PART OF ACCOUNTS SIGNIFICANT ACCOUNTING POLICIES
1. a) Basic of preparation of Financial Statements.
The financial statements are prepared under the historical cost
convention on a going concern basis and in accordance with applicable
accounting standards.
b) Principles of consolidation.
The consolidated financial statements relate to Empee Sugars and
Chemicals Limited (the Company) and its Subsidiary Company. The
consolidated financial statements have been prepared on the following
basis:
The financial statements of the company and its subsidiary have been
prepared based on a line-by-line consolidation by adding together the
book values of like items of assets, liabilities, income and expenses
as per the respective financial statements duly certified by the
auditors of the respective companies. Inter group balances and
transactions have been eliminated.
The consolidated financial statements have been prepared using uniform
accounting policies for like transactions and other events in similar
circumstances. The presentation to the extent possible are in the same
manner as the companys individual statements.
The Subsidiary Company considered in the consolidated financial
statement is M/s.Empee Power Company (India) Ltd those country of
incorporation is India and the percentage of voting power held by the
holding company held on 30th June 2007 is 100%.
Since M/s.Empee Power Company (India) Ltd has become the subsidiary of
M/s.Empee Sugars and Chemicals Limited in the year under review. The
previous year figure has not been drawn up.
Since the Subsidiary Company is at an infant stage of operations and no
commercial activity has been done by the company the question of
framing the Profit & Loss Account does not arise. All the expenses are
booked in Pre-operative expenses.
REPORT OF THE AUDITORS TO THE MEMEBERS OF M/s. EMPEE POWER COMPANY
(INDIA) LTD
I have audited the attached Balance Sheet of M/s. EMPEE POWER COMPANY
(INDIA) LTD, Chennai as at 30th June, 2007 annexed thereto. These
financial statements are the responsibility of the Companys
management. My responsibility is to express an opinion on these
financial statements based on my audit.
1. I conducted my audit in accordance with the auditing standards
generally accepted in India. Those standards require that I plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management as well as evaluating the overall financial statement
presentation. I believe my audit provides a reasonable basis for my
opinion.
2. As required by the companies (Auditors Report) Order, 2003, issued
by the Central Government of India in term of Sub-Section (4A) of
Section 227 of the Companies Act, 1956, and on the basis of such checks
of books and records of the Company as I considered appropriate and
according to the information and explanation given to me, I enclose in
the Annexure hereto a statement on the matters specified in paragraph 4
and 5 of the said order.
3. Further to my comments in the Annexure referred to in paragraph 2
above I report that:
a) I have obtained all the information and explanations to which to the
best of our knowledge and belief were necessary for the purpose of my
audit.
b) In my opinion, proper books of accounts as required by law have been
kept by the company so far as appears from our examination of those
books.
c) The Balance sheet dealt with by/this report is in agreement with the
books of account.
d) In my opinion the Balance sheet dealt with by this report comply
with the mandatory accounting standards referred to in sub-section (3c)
of the Companies Act, 1956.
e) On the basis of written representations received from the directors
as on 31st June 2007 and taken on record by the board of directors,
none of the Directors are disqualified as on 30th June 2007, from being
appointed as a directors in terms of clause(g) of sub section (1) of
Section 274 of the Companies Act, 1956.
f) In my opinion and to the best of my information and according to the
explanation given to us the said accounts read together with
Significant Accounting Policies and other notes thereon give the
information required by the Companies Act, 1956 in so far as it relates
to Balance sheet of the state of affairs of the Company as at 30th June
2007.
ANNEXURE TO THE AUDITORS REPORT OF M/s. EMPEE POWER COMPANY (INDIA)
LTD
As required by the Manufacturing and other companies (Auditors Report)
Order 1988 issued by the Company Law Board in terms of Section 227(4A)
of the Companies act, 1956, I further report that:
1. The company has not maintained fixed assets register during the
year under review, since there is no fixed assets.
2. Since there is no fixed assets, the question of revaluation of
fixed assets does not arise.
3. Item 3 to 6 of the order concerning physical verification of
inventories, reconciliation of Discrepancies if any etc. concerning
inventories, are not applicable for the year under report; since the
unit has not started its
commercial production.
4. The company has not taken any loan from other company in which the
Directors are interested; But it is not prejudicial to the interests of
the company.
5. The Company has not granted unsecured loans and advances to
companies, firms or other parties.
6. The company is yet to start production and the little activities
are supervised by the Directors. As such I am of the opinion that there
are adequate internal controls existing at the Company.
7. There are no purchases and sales transactions of materials/services
made in pursuance of contracts or agreements falling under Se. 301 of
the Companies Act, 1956 and aggregating during the year to Rs.50,000 or
more.
8. In view of what is stated under item 12 above, the matters as to
scrap and records thereof are not applicable to the company for the
year under report.
9. The company has not accepted deposits from the public during the
year under review. "
10. The paid-up capital being below the ceiling level of Rs.25 lacs
prescribed for the purpose of internal audit, the provision as to the
Inernal Audit is not applicable.
11. The Central Government has not prescribed for maintenance of Cost
records under Section 209 (1)(d) of the Companies Act, 1956 for any of
the products manufactured by the Company.
12. The Company has not yet started production, the provisions of PF &
ESI are not applicable to the company for the year under report.
13. There are no undisputed amounts of Income-tax/Sales tax/Customs
Duty/Excise Duty outstanding for a period of more than six months,
since there is no production.
14. As per the information and explanations given, we find that no
personal expenses have been charged to Revenue Account.
15. The company is not a sick Industrial Company within the meaning of
Sec.3(1)(0) of the Sick Industrial Companies (Special Provisions) Act,
1985.
16. Since the Company has not commenced commercial production, the
question of drawing the Profit & Loss Account does not arise.
17. According to the information and explanations given to me and on
an overall examination of the balance sheet of the Company, I report
that no funds raised on short term basis have been used for long term
purposes.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
19. The Company has not issued any secured debentures.
20. The Company has not raised any money by public issue during the
period covered by the audit report.
21. To the best of my knowledge and belief and according to the
information and explanations given to me, no fraud on or by the Company
has been noticed or reported during the period.
NOTES FORMING PART OF ACCOUNTS ACCOUNTING POLICIES
The accounts are prepared under historical cost convention and
materially complies the mandatory accounting standards issued by the
Institute of Chartered Accounts of India. The Accounting Period had
been extended for the year under review is 30.6.2007 which covers 15
months that is from 1.4.2006 to 30.6.2007. In view of this previous
year figure are not comparable.
The significant accounting policies followed by the company are stated
below:
A. FIXED ASSETS
Expenditure which are of capital nature are capitalized at a cost,
which comprises of purchase price, import duties, levies and any
directly attributable cost of bringing the assets to its working
conditions for the intended use. None of fixed assets have been
revalued during the period under review.
B. FOREIGN EXCHANGE TRANSACTIONS .
The company has not transacted any business in Foreign Exchange during
the year.
C. PRIOR PERIOD OF EXPENSES
No prior period expenses has been charged in the accounts.
D. Since the company is at an infant stage of operations and no
commercial activity has been done by the company. The question of
framing the Profit & Loss Account does not arise. All the expenses are
booked in Pre-operative expenses.
E The Fixed Deposit of Rs.10,00,000 with Karur Vysya Bank is under lien
to the said bank for Guarantee Issued by them.
F. There is no claim against the company which in the nature of
contingent liabilities.
G. The previous years figures have been re-grouped/rearranged,
wherever considered necessary.
Jun 30, 2006
1. The Company closes its accounting year on 30th June every year
instead of 31st March in order to cover the crushing season. The
figures for the current and previous years are not comparable since the
current year figures consists of 12 months and the previous year
figures consists for 15 months.
2. Earning per Share
Basic and Dilutive Earning per share.
Particulars Year ended Period
30th June ended
2006 30th June 2005
Rs.in Lakhs Rs.in Lakhs
a. Net Profit after tax
attributable to
Equity shareholders 1031.09 509.98
b. Weighted average
number of Equity
Shares Basic/Dilutive (Nos.) 41970127 41970127
c. Nominal value of equity per share (Rs) 10/- 10/-
d. Basic/Dilutive Earning
per share (Rs.) 2.46 1.22
3. Segment wise details as required by AS 17 issued by the Chartered
Accountants of India are as under:
Rs. In Lakhs
Sugar IAP Total
1 Segment Revenue 8793.54 1358.08 10151.62
2 Segment Results 814.90 216.19 1031.09
3 Segment Assets 4357.22 1020.41 5377.63
4 Segment Liabilities 399.72 377.00 776.72
5 Capital Expenditure 20.76 14.42 35.18
6 Depreciation 180.98 29.46 210.44
4. Contingent Liabilities
4.1 Claims against the company not acknowledged as debts: Rs. 172.63
lakhs
4.2 Estimated amount of capital contracts remaining to be executed (Net
of Advances): Rs 98.20 lakhs.
4.3 Purchase tax liability of Rs.826.15 lakhs (including interest)
(note 12)
5. The disputed Income demand for the Asst. Year 2002-03 is Rs. 457.84
lakhs. The company has filed against it before the Commissioner of
Income Tax (Appeals) Central I, Chennai-34. The tax liability being
disputed, no provision considered necessary.
6. National Saving Certificates VIII issue of Rs.0.11 lakhs shown
under investment are under lien to Sales Tax authorities towards
security deposits.
7. Stock of Stores, Spares and packing materials have been physically
verified at the year end and valued at cost on FIFO basis. The
valuation of the stocks of sugar and spirit are valued at estimated net
realizable value. Sugar, Organic Manure, Sugar and Molasses in Process
are valued at estimated net realizable value.
8. Balances with bank in fixed deposit include:
i) Rs.3.00 lacs under lien to banks for guarantees issued by them.
ii) Rs.0.02 lacs under lien to sales tax authorities towards security
deposits.
9. In the absence of receipt of information regarding small scale
industrial status from the parties, the details of names of small scale
industrial undertaking to which the company owe any sum together with
interest outstanding for more than 30 days could not be ascertained.
10. Balances in some of the parties accounted are subject to
confirmation.
11. Depreciation amounting to Rs. 438.12 lakhs related to the previous
years has not been provided.
12. The Govt. of Andhra Pradesh by its Order dated 13.10.2003 through
Abstract from Industries & Commerce (Sugar) Department has permitted
the Company to pay the arrears of Purchase Tax amounting to Rs.532.57
lakhs (which includes a sum of Rs.10.40 lakhs as interest) in three
equal annual installments along with interest ® 10.5% p.a. The Company
has sent the request letter to the concerned Govt. departments to waive
off the purchase tax and interest thereon. In the opinion of the
management, the company will get the favorable reply from the
Government and accordingly no liability has been provided in the books.
13. In view of the carried forward losses, no provision is considered
necessary for Income Tax. However Fringe Benefit Tax (FBT) has been
provided.
14 Auditors Remuneration:
Particulars Rs. in Lakhs
2006 2005
Audit Fees 0.30 0.30
Tax audit fee 0.10 0.10
Service Tax/Reimbursement of expenses 0.04 0.25
Total 0.44 0.65
15 Managerial Remuneration Rs. in Lakhs
Salary (Including Allowa-
nces and Perquisites) 20.01 15.00
Contribution to Provident Fund 1.98 1.80
Total 21.99 16.80
Computation of net profit in
accordance with Section
198 of the Companies Act,
1956 fo Calculation of
commission payable to MD
Profit before taxation 830.50 472.05
Add: Directors
remuneration
(Including Commission) 41.52 0.00
Net Profit for the year 872.02 472.05
Commission 19.53 0.00
5% of the Net Profit 41.52 0.00
16. Additional Information pursuant to the provisions of paras 3, 4c
and 4D of Part II of Schedule VI to the Companies Act, 1956.
Rs. In Lakhs
Expenditure In foreign Currencies: 2006 2005
CIF value of import of Raw Sugar 2684.97 2484.25
Foreign Exchange Earning:
FOB Value of Export 2000.00 0.00
17. Related Party Transactions
The Company has the following related parties :
Holding Company : Empee Distilleries Limited
Fellow Subsidiary : None
1. Empee International Hotels & Resorts Ltd.
2. South (India) Hotels Pvt. Ltd.
3. Empee Hotels Limited
4. Appollo Alchobev Limited
5. Empee Hodings Limited
6. Appollo Distilleries Pvt. Ltd.
7. Aruna Exports Pvt. Ltd.
8. Aruna Constructions (India) Ltd.
9. Empee Leasing & Finance Ltd.
10. Empee Agro Farm Products Pvt. Ltd.
11. Universal Spirits Limited
12. Empee Construction Company Ltd.
13. Empee Power and Infrastructure Pvt. Ltd.
KEY MANAGEMENT PERSONNAL
Name Designation
Mr. M.P. Purushothaman Chairman and Managing Director
Summary of transactions with related Parties :
Remuneration Paid to Key Management Personnel:
Rs. 41.52. Lakhs
18. The Company has so far imported directly raw sugar to the extent of
44450 MTs resulting in an export obligation of 42330 MTs over a period
of 2 years. The company has exported 10000 MTs during the year under
review against the above said export obligation. The company exported
through M/s Indian Sugar Exim Corporation Ltd, New Delhi and sale
proceeds has received in Indian Rupees.
20. The previous years figures have been re-grouped/rearranged,
wherever considered necessary.
Jun 30, 2005
Secured on a pari passu basis by hypothecation of all movable assets,
including movable plant and machinery, spares, tools and accessories
save and except book debts and subject to prior charge in favour of the
company's bankers on specified assets for securing working capital
facilities and also by the irrevocable and unconditional personal
guarantees of Managing Director Mr. M.P. Purushothaman and Director
Mrs. A.K. Aruna and Corporate Guarantee of M/s. Empee Distilleries Ltd.
All the loans are also secured by mortgage of immovable property.
Secured by hypothecation of stocks of rawmaterials, semi-finished and
finished goods stores and spares not relating to Plant & Machinery
(Consumable stores and spares), Bills receivable, book debts and all
other movables of the company and also by the irrevocable and
unconditioned personal guarantees of managing Director of
Mr. M.P. Purushothaman and Director of Mrs. A.K. Aruna.
I. NOTES FORMING PART OF ACCOUNTS
1. Contingent Liabilities not provided for
As at As at
31.03.2004 31.03.2003
(Rs.in `000s) (Rs.in `000s)
a) Counter guarantee
given to Bank for Bank guarantee 0.75 0.75
2. Call money arrears on Allotment amounting to Rs.0.28 lac is still
pending.
3. Out of Unsecured Loans of Rs.29.64 lakhs an amount of Rs.9.34 lakhs
represents the loans taken from Companies under the same management.
4. National Saving Certificates VIII issue of Rs.0.11 lac shown under
investment are under lien to Sales Tax authorities towards security
deposits.
5. Stock of Stores, Spares and packing materials have been physically
verified at the year end and valued at cost on the basis of the last
purchase price. The effect of the change the method of valuation of the
stocks of sugar, molasses, bagasse, spirit, bio-earth and sugar &
molasses in process are valued at estimated net realizable value.
6. Amounts due from sundry debtors aggregating to Rs.447.63. Out of
which an amount of Rs.34.46 lacs are in dispute.
7. Balances with bank in fixed deposit include:
i) Rs.12.88 lacs under lien to banks for guarantees issued by them.
ii) Rs.0.02 lacs under lien to sales tax authorities towards security
deposits.
8. Loans & Advances considered good includes.
i) Rs.25.00 lacs being lease/rent advance paid to a firm in which a
director is a Managing Partner.
9. Exemption has been obtained from AP State Government for 74.88 acres
of land out of 112.24 acres as per Section 18(2) of the AP Land Reform
Act (ceiling on Agricultural Holdings) Act 1973. For the balance land,
our application for exemption is under consideration by the Government.
10. Share Application Money refundable viz. Rs.2.48 lakhs will be paid
against demand.
11. In the absence of information regarding small scale industrial
undertakings, the details required to be given in Part I of Schedule VI
of the Companies Act, 1956 in terms of Notification No.GSR 129 (E)
dated 22.02.99 issued by, the government could not be furnished.
12. Confirmation of balances in respect of some Parties/Companies of
Secured Loans, Unsecured Loans, Creditors, Debtors, Loans & Advances
and advances from Customers are obtained/sought for by the company.
13. Provision has not been made for interest on the term loan of IFCI.
However IFCI has granted OTS for the term loan dues, which has been
accepted by the company during July 2005.
14. The Company has fully settled the term loan dues of the Industrial
Development Bank of India (IDBI) under One Time Settlement. The Company
accounted in all Rs. 945.00 Lakhs out of which Rs. 457.19 Lakhs is
accounted towards repayment of principle and Rs.487.81 Lakhs towards
interest segregating Rs.384.89 Lakhs as Prior Period Expenses and
Rs.102.92 Lakhs as interest during the year.
15. Depreciation has not been provided for the year from 01.10.96 to
31.03.99 amounted to Rs.438.12 lakhs.
16. As a matter of policy, the company has decided that the purchase
tax on cane purchases payable to the government should be accounted as
and when paid. Consequently, no provision has been made in this
accounts under this head amounting to Rs.520.16 lakhs upto 31.03.2001.
The Govt. of Andhra Pradesh by its Order dated 13.10.2003 through
Abstract from Industries & Commerce (Sugar) Department has permitted
the Company to pay the arrears of Purchase Tax amounting to Rs.530.56
lakhs (which includes a sum of Rs.10.40 lakhs as interest) in three
equal annual instalments along with interest @ 10.5% p.a. The Company
will account the same as and when it is being paid.
17. Consumption of stores and spares has been arrived on the basis of
stocks held at the beginning of the year and adding purchases during
the year and deducting the closing stock at the end of the year in
order to get the consumption.
18. In the absence of adequate information above the status of the
industry whether it is Small Scale Industries or not we are not in a
position to comment about the interest payable to them on account of
delayed payment.
19. Rent includes Rs.3.60 lakhs paid to private limited company in
which the Chairman & Managing Director is a director.
20. Audit Fee relates to
This year Previous Year
a. Statutory Audit 0.30 0.30
b. Tax Audit 0.10 0.10
21. No provision has been made for Gratuity this year as the company
has decided to pay the same as and when arises.
22. No provision has been made for Leave encashment, as the Company has
decided to pay the same as and when arises.
23. Previous year figures have been regrouped/reclassified wherever
necessary to confirm to grouping of this year.
24. The Company closed its accounting year on 30.6.2005 instead of
31.3.2005 in order to cover the total crushing season. The financial
year under review is for the period from 01.04.2004 to 30.06.2005
comprising of 15 Months whereas the previous year under comparision of
12 Months.
25. The Company during the year has imported 21178 tonnes of raw sugar
under advance license scheme at a total cost of 2522.46 Lakhs in INR
equivalent (in US $ 5797500).
Mar 31, 2004
1. Schedule 1 to 22 form integral part of the accounts.
2. Contingent Liabilities not provided for
As at As at
31.03.2004 31.03.2003
(Rs.in `000s) (Rs.in `000s)
a) Counter guarantee
given to Bank for
Bank guarantee 0.75 0.75
3. Call money arrears on Allotment amounting to Rs.0.28 lac is still
pending.
4. Out of Unsecured Loans of Rs.39.45 lakhs an amount of Rs. 10.18
lakhs represents the loans taken from Companies under the same
management.
5. National Saving Certificates VIII issue of Rs.0.11 lac shown under
investments are under lien to Sales Tax authorities towards security
deposits.
6. Stock of Stores, Spares and packing materials have been physically
verified at the year end and valued at cost on the basis of the last
purchase price. The effect of the change the method of valuation of the
stocks of sugar, molasses, bagasse, spirit, bio-earth and sugar &
molasses in process are valued at estimated net realizable value.
7. Amounts due from sundry debtors aggregating to Rs.318.97 Lakhs. Out
of which an amount of - Rs.34.46 Lakhs are in dispute.
8. Balances with bank in fixed deposit include:
i) Rs.12.88 Lakhs under lien to banks for guarantees issued by them.
ii) Rs.0.02 Lakhs under lien to sales tax authorities towards security
deposits.
9. Loans & Advances considered good included.
Rs.25.00 Lakhs being lease/rent advance paid to a firm in which a
director is a Managing Partner.
10. Exemption has been obtained from AP State Government for 74.88
acres of land out of 112.24 acres as per Section 18(2) of the AP Land
Reform Act (ceiling on Agricultural Holdings) Act 1973. For the balance
land, our application for exemption is under consideration by the
Government.
11. Share Application Money refundable viz. Rs.2.48 lacs will be paid
against demand.
12. In the absence of information regarding small scale industrial
undertakings, the details required to be given in Part I of Schedule VI
of the Companies Act, 1956 in terms of Notification No.GSR 129 (E)
dated 22.02.99 issued by the government could not be furnished.
13. Confirmation of balances in respect of some Parties/Companies of
Secured Loans, Unsecured Loans, Creditors, Debtors, Loans & Advances
and advances from Customers has not been obtained.
14. Provision has not been made for interest on term loans payable to
IDBI & IFCI in anticipation of OTS in line with the OTS with ICICI.
15. Depreciation has not been provided for the period from 01.10.96 to
31.03.99 amounted to Rs.438.12 lakhs.
16. As a matter of policy, the company has decided that the purchase
tax on cane purchases payable to the government should be accounted as
and when paid. Consequently, no provision has been made in this
accounts under this head amounting to Rs.520.16 lakhs upto 31.03.2001.
The Govt. of Andhra Pradesh by its Order dated 13.10.2003 through
Abstract from Industries & Commerce (Sugar) Department has permitted to
pay the arrears of Purchase Tax amounting to Rs.530.57 lakhs (which
includes a sum of Rs. 10.40 lakhs as interest) in three equal annual
instalments along with interest @ 10.5% p.a. The Company will account
the same as and when it is being paid.
17. Consumption of stores and spares has been arrived on the basis of
stocks held at the beginning of the year and adding purchases during
the year and deducting the closing stock at the end of the year in
order to get the consumption.
18. In the absence of adequate information above the status of the
industry whether it is Small Scale Industries or not we are not in a
position to comment about the interest payable to them on account of
delayed payment.
19. Rent includes Rs.3.60 lakhs paid to private limited company in
which the Managing Director is a director.
20. Audit Fee relates to
This Year Previous Year
a. Statutory Audit 0.30 0.25
b. Tax Audit 0.10 0.05
21. No provision has been made for Gratuity this year as the company
has decided to pay the same as and when arises.
22. No provision has been made for Leave encashment, as the Company has
decided to pay the same as and when arises.
23. Previous year figures have been regrouped wherever necessary to
confirm to grouping of this period.
Mar 31, 2003
1. Schedule 1 to 21 form integral part of the accounts.
2. Contingent Liabilities not provided for
a) Sales Tax on works contract and sales tax on lease rental.
b) Counter guarantee given to Bank for Bank guarantee
3. Call money arrears on Allotment amounting to Rs.0.28 lac is still
pending.
4. Unsecured Loans of Rs.118.24 lacs represents the loans taken from
companies under the same management.
5. National Saving Certificates VIII issue of Rs.0.11 lac shown under
investment are under lien to Sales Tax authorities towards security
deposits.
6. Stock of Stores, Spares and packing materials have been physically
verified at the year end and valued at cost on the basis of the last
purchase price. The effect of the change the method of valuation of the
stocks of sugar, molasses, bagasse, spirit, bio-earth and sugar &
molasses in process are valued at estimated net realizable value.
7. Amounts due from sundry debtors aggregating Rs.404.27 lacs includes
a sum of 200.67 lacs is due less than six month. The remaining amount
of Rs.203.60 lacs outstanding for over six months out which an amount
of Rs.34.46 lacs are in dispute.
8. Balances with bank in fixed deposit include:
i) Rs.13.96 lacs under lien to banks for guarantees issued by them.
ii) Rs.0.02 lacs under lien to sales tax authorities towards security
deposits.
9. Loans & Advances considered good included.
a) Rs.0.56 lac being rent advance paid to director of the company.
b) Rs.25.00 lacs being lease/rent advance paid to a firm in which a
director is a partner.
10. Advances include Rs.36.08 lacs being a part of interest due from a
firm of civil contractors on loans/advances given to them during the
period of construction. The firms request for waiver of interest has
been considered and written off during the current year.
Further a sum of Rs.27.13 lakhs representing the amount payable to the
Company from various parties from the year of Commencement of Business
has been written off since there is no chance of necessary from them.
11. The company has taken on lease fixed asset of a total value of
Rs.1,145.43 lacs for its Industrial Alcohol Plant, for which the
approval of the financial institutions is being obtained.
12. Exemption has been obtained from AP State Government for 74.88
acres of land out of 112.24 acres as per Section 18(2) of the AP Land
Reformance (ceiling on Agricultural Holdings) Act 1973. For the balance
land, our application for exemption is under consideration by the
Government.
13. Share Application Money refundable viz. Rs.2.48lacs will be paid
against demand.
14. In the absence of information regarding small scale industrial
undertakings, the details required to be given in Part I of Schedule VI
of the Companies Act, 1956 in terms of Notification No.GSR 129 (E)
dated 22.02.99 issued by the government could not be furnished.
15. Confirmation of balances in respect of some Parties/Companies of
Secured Loans, Unsecured Loans, Creditors, Debtors, Loans & Advances
and advances from Customers has not been obtained.
16. Provision has not been made for interest on term loans payable to
IDBI & IFCI in anticipation of getting waiver of interest, as a part of
OTS in line with the OTS with ICICI.
17. Depreciation has not provided for the period from 01.10.96 to 31
03.99 amounted to Rs.438.12 lacs.
18. As a matter of policy, the company has decided that the purchase
tax on cane purchases payable to the government should be accounted as
and when paid. Consequently, no provision has been made in this
accounts under this head amounting to Rs.520.16 lacs upto 31.03.2003.
This year since the purchase tax has been included in the cane cost no
provision has been made.for purchase tax.
19. Consumption of stores and spares has been arrived on the following
basis of stocks held at the beginning of the year and purchases during
the year had been added and the closing stock at the end of the year
has been deducted in order to get the consumption.
20. In the absence of adequate information above the status of the
industry whether it is Small Scale Industries or not we are not in a
position to comment about the interest payable to them on account of
delayed payment.
21. Rent includes Rs.3.60 lacs paid to private limited company in which
the Managing Director is a director.
22. Audit Fee relates to
This Year Previous Year
a. Statutory Audit 0.25 0.25
b. Tax Audit 0.05 0.05
23. No provision has been made for Gratuity this year as the company
has decided to pay the same as and when arises.
24. No provision has been made for Leave enhancement, as the company
has decided to pay the same as and when arises.
25. Previous years figures have been regrouped wherever necessary to
confirm to grouping of this period.
Mar 31, 2002
1. Schedule 1 to 21 form integral part of the accounts.
2. Contingent Liabilities not provided for
As at As at
31.03.2002 31.03.2001
(Rs. in `000s) (Rs.in `000s)
a) Claims against the company
not acknowledged as debt. Nil Nil
b) Sales Tax on works contract and sales
tax on lease rental. Not determinate
c) Counter guarantee given to Bank for
Bank guarantee 0.75 0.75
3. Call money arrears on Allotment amounting to Rs.0.28 lac is still
pending.
4. Unsecured Loans of Rs.11.10 lacs represents the loans taken from
Companies under the same management.
5. National Saving Certificates VIII issue of Rs.0.11 lac shown under
investment are under lien to Sales Tax authorities towards security
deposits.
6. Stock of Stores, Spares and packing materials have been physically
verified at the year end and valued at cost on the basis of the last
purchase price. The effect of the change the method of valuation of the
stocks of sugar, molasses, bagasse, spirit, bioearth and sugar &
molasses in process are valued at estimated net realizable value.
7. Amounts due from sundry debtors aggregating Rs. 117.68. lacs
outstanding for over six months out which an amount of Rs.34.46 lacs
are in dispute.
8. Balances with bank in fixed deposit include :
1 i) Rs. 12.88 lacs under lien to banks for guarantees issued by them.
ii) Rs. 0.02 lacs under lien to sales tax authorities towards security
deposits.
9. Loans & Advances considered good included.
a) Rs. 0.56 lac being rent advance paid to director of the company.
b) Rs. 25.00 lacs being lease/rent advance paid to a firm in which 2
directors are partners.
10. Advances include Rs.36.08 lacs being a part interest due from a
firm of civil contractors on loans/ advances given to them during, the
period the firm was carrying out civil work of the company. The firm is
requesting waiver of this interest which is under the consideration of
the company.
11. The company has taken on lease fixed asset of a total value of
Rs.1,145,43 lacs for its Industrial Alcohol Plant, for which the
approval of the financial institutions is being obtained.
12. Exemption has been obtained from AP State Government for 74.88
acres of land out of 112.24 lacs. as per Section 18(2} of the AP Land
Reformance (ceiling on Agricultural Holdings) Act 1973. For the balance
land, our application for exemption is under consideration by the
Government.
13. Share Application. Money refundable viz. Rs.2.48 lacs will be paid
against demand.
14. In the absence of information regarding small scale industrial
undertakings, the details required to be given in Part I of Schedule VI
of the Companies Act, 1956 in terms of Notification No. GSR 129 (E)
dated 22.02.99 issued by the government could not be furnished.
15. Confirmation of balances in respect of some Parties/Companies of
Secured Loans, Unsecured Loans, Creditors, Debtors, Loans & Advances
and advances from Customers has not been obtained.
16. Provision has not been made for interest on term loans payable to
IDBI & IFCI in anticipation of getting waiver of interest, as a part of
OTS, in line with the OTS with ICICI. Regarding their term loan, OTS
has been granted by ICICI and monthly instalments and number of
instalments are fixed. The entire instalments has been paid and term
loan with ICICI had been liquidated. The excess payment made to ICICI
over and above the principal amount has been transferred to interest
account.
17. Depreciation has not provided for the period from 01.10.96 to
31.03.99 amounted to Rs. 438.12 lacs.
18. As a matter of policy, the company has decided that the purchase
tax on cane purchases payable to the government should be accounted as
and when paid. Consequently, no provision has been made in this
accounts under this head amounting to Rs.522.16 lacs upto 31.03.2001.
This year since the purchase tax has been included in the cane cost no
provision has been made for purchase tax.
19. Consumption of stores and spares has been arrived on the following
basis of stocks held at the beginning of the year and purchases during
the year had been added and the closing stock at the end of the year
has been deducted in order to get the consumption.
20. In the absence of adequate information above the status of the
industry whether it is Small Scale Industries or not we are not in a
position to comment about the interest payable to them on account of
delayed payment.
21. Rent includes Rs.3.60 lacs paid to private limited company in
which the Managing Director is a director.
22. Audit Fee relates to
This year Previous Year
a. Statutory Audit 0.25 0.25
b. Tax Audit 0.25 0.25
23. No provision has been made for Gratuity this year as the company
has decided to pay the same as and when arises.
24. No provision has been made for Leave enhancement, as the company
has decided to pay the same as and when arises.
25. Previous years figures have been regrouped wherever necessary to
confirm to grouping of this period.
26. Information pursuant to the provision of part II of Schedule VI of
the Companies Act, 1956.
A. Licensed and Installed Capacity :
Licensed Capacity Installed Capacity
1. Sugar 2500 TCP 2500 TCP
2. Rectified Spirit 30000 LPD 30000 LPD
3. Extra Neutral Alcohol 20000 LPD 20000 LPD
B. Quantitative particulars of finished products meant for sale :
Particulars Sugar Molasses
(Qty in Mt.) (Qty in Mt.)
This Previous This Previous
year year year year
Opening Stock 20233 22607 1719 5620
Purchase - - 5980 9474
Production 17349 18822 9206 8785
Sales 20648 21196 - -
Damages 5974 - - -
Own Consumption - - 12731 22160
Closing Stock 10960 20233 4174 1719
Sales (inclusive of
excise duty)
(Rs.in lacs) 3207 3116 - -
R.S. E. N. A.
(Qty in Ltrs) (Qty in Ltrs)
This Previous This Previous
year year year year
445121 186048 202640 36225
2898907 5406129 2596528 4078415
- 96000 2000957 3912000
- - - -
3292508 5051056 - -
51341 445121 798211 202640
- 6.13 427 684
C. Raw Materials, Spares and Components consumed :
Total Consumed
This Year Previous Year
1. Raw Materials
Sugar Cane (M.Ts.) 211735 198673
Value Imported (Rs. in Lacs) Nil Nil
Indigenous (Rs. in Lacs) 1540.49 1505.79
2. Spares and components
Value Imported (Rs. in Lacs) Nil Nil
Indigenous (Rs. in Lacs) 292.71 147.58
3. Capital goods
Imported Nil Nil
D. Expenditure in Foreign Currency : Nil Nil
% to Total Consumed
This Year Previous Year
100 100
Nil Nil
100 100
Nil Nil
100 100
Nil Nil
Nil Nil
For and on behalf of the Board As per report of even date annexed
Sd/- M.P. Purushothaman Sd/- A.K. Aruna Sd/- R. Rajagopalan
Chairman & Managing Director Director Chartered Accountant
Place : Chennai Sd/- Pradipta Kumar Das
Date : 30.11.2002 Company Secretary
Mar 31, 2001
SECURED LOANS
* Secured on a pari passu basis by hypothecation of all movable assets,
including movable plant and machinery, spares, tools and accessories
save and except book debts and subject to prior charge in favour or the
Company's bankers on specified assets for securing working capital
facilities and also by the irrevocable and unconditional personal
guarantees of Managing Director and M/s. Empee Distilleries Ltd. All
the loans are secured also by mortgage of immovable property.
** Secured by hypothecation of stocks of raw materials, semi-finished
and finished goods stores and spares not relating to Plant & Machinery
(Consumable stores and spares), Bills receivable, book debts and all
other movables of the Company.
*** Loan from Sugar Development Fund Is secured by the Bank guarantee
issued by Indian bank.
OTHER NOTES
1. Contingent Liabilities not provided for
31.03.2001 31.03.2000
(Rs. in '000) (Rs. in '000)
a) Claims against the Company not
acknowledged as debt. Nil Nil
b) Sales Tax on works contract and
sales tax on lease rental. Not determinable
c) Counter guarantee given to Bank
for Bank guarantee 0.75 0.75
2. Call money arrears on Allotment amounting to Rs. 0.28 lac is still
pending.
3. Unsecured Loans of Rs. 294.44 lacs represents the loans taken from
companies under the same management.
4. National Saving Certificates VIII issue of Rs. 0.11 lac shown under
investment are under lien to Sales Tax authorities towards security
deposits.
5. Stock of Stores, Spares and packing materials have been physically
verified at the year end and valued at cost on the basis of the last
purchase price. The effect of the change the method of valuation of the
stocks of sugar, molasses, bagasse, spirit, bio earth and sugar and
molasses in process are valued at estimated net realizable value.
6. Amounts due from sundry debtors aggregating Rs. 103.60 lacs
outstanding for over six months which an amount of Rs. 34.46 lacs are
in dispute.
7. Balances with bank in fixed deposit include:
i) Rs. 12.88 lacs under lien to banks for guarantees issued by them.
ii) Rs. 0.02 lacs under lien to sales tax authorities towards security
deposits.
8. Loans & Advances considered good included.
a) Rs. 0.56 lac being rent advance paid to director of the Company.
b) Rs. 18.30 lacs being lease/rent advance paid to a firm in which 2
directors are partners.
9. Advances include Rs. 36.08 lacs being a part interest due from a
firm of civil contractors on loans/advances given to them during the
period the firm was carrying out civil work of the Company. The firm is
requesting waiver of this interest which is under the consideration of
the Company.
10. The Company has taken on lease fixed asset of a total value of Rs.
1,145.43 lacs for its Industrial Alcohol Plant, for which the approval
of the financial institutions is being obtained.
11. Exemption has been obtained from AP State Government for 74.88
acres of land out of 112.24 lacs as per Section 18(2) of the AP Land
Reformance (ceiling on Agricultural Holdings) Act 1973. For the balance
land, our application for exemption is under consideration by the
Government.
12. Share Application Money refundable viz. Rs. 2.48 lacs will be paid
against demand.
13. In the absence of information regarding small scale industrial
undertakings, the details required to be given in Part I of Schedule VI
of the Companies Act, 1956 in terms of Notification No.GSR 129 (E)
dated 22.02.99 issued by the government could not be furnished.
14. Confirmation of balances in respect of some Parties/ Companies of
Secured Loans, Unsecured Loans, Creditors, Debtors, Loans & Advances
and advances from Customers has not been obtained.
15. Provision has not been made for interest on term loans payable to
IDBI in anticipation of getting waiver of interest, as a part of OTS,
in line with the OTS with other two institutions namely ICICI & IFCI.
Regarding their term loans, OTS has been granted by them and monthly
instalments and number of instalments are fixed. After clearing the
principal portion, the interest portion will be taken into account as
and when paid. Therefore no provision for the interest payable to
ICICI &IFCI arises now.
16. Depreciation not provided for the period from 01.10.96 to 31.03.99
amounted to Rs. 438.12 lacs.
17. As a matter of policy, the Company has decided that the purchase
tax on cane purchases payable to the government should be accounted as
and when paid consequently, provision not made in this accounts under
this head amounts to Rs. 376.98 lacs upto 31.03.99 and Rs. 86.50 lacs
for the year ended 31.03.2000 and Rs. 78.18 lacs for the year ended
31.03.2001 and total amounting to Rs. 541.66 lacs upto 31.03.2001.
18. Consumption of stores and spares has been arrived on the following
basis of stocks held at the beginning of the year and purchases during
the year had been added and the closing stock at the end of the year
has been deducted in order to get the consumption.
19. In the absence of adequate information above the status of the
industry whether it is Small Scale Industries or not we are not in a
position to comment about the interest payable to them on account of
delayed payment.
20. Rent includes Rs. 3.60 lacs paid to private limited company in
which the Managing Director is a director.
21. Provision for gratuity has been made in respect of employees in
service on the last day of the accounting year, on the basis of salary
last drawn and the number of completed years of service.
22. No provision has been made for Leave enhancement, as the Company
has decided to pay the same as and when arises.
23. Previous years figures have been regrouped wherever necessary to
conform to grouping of this period.
Mar 31, 2000
2. Contingent liabilities not provided for
As at As at
31.03.2000 31.03.1999
(Rs. in Lakhs)
a. Claims against the
company not acknowledged
as debt. Nil Nil
b. Sales tax on works contract
and sales tax on lease rental Not determinable
c. Counter guarantee given to
Bank of Bank guarantee 0.75 0.75
3. Allotment for call money in arrears of Rs.0.28 lac net of interest
received from members for belated payment. The work of reconciling the
interest receipts and allotment/call money in arrear shareholder wise
is still under progress.
4. Unsecured loans includes a sum of Rs.691.00 lacs from a company
under the same management.
5. National saving certificates VIII issue of Rs.0.11 lac shown under
investment are under lien to Sales tax authorities towards security
deposits.
6. Stock of stores, Spares and packing materials have been physically
verified at the year end and valued at cost on the basis of the last
purchase price. The effect of the change the method of valuation of
the stocks of sugar, molasses, bagasse, spirit, bio-earth and sugar &
molasses in process are valued at estimated net realisable value.
7. Amounts due from sundry debtors aggregating Rs.28.40 lacs and
outstanding for over six months are under dispute.
8. Balance with bank in fixed deposit include :
i. Rs.12.88 lacs under lien to banks for guarantees issued by them.
ii. Rs.0.02 lacs under lien sales tax authorities towards security
deposits.
9. Loans & Advances considered good included.
a) Rs.0.56 lac being rent advance paid to private limited company in
which 2 directors of the company are directors.
b) Rs.18.30 lacs being lease/rent advance paid to a firm in which 2
directors are partners.
10. Advances include Rs. 36.08 lacs being a part interest due from a
firm of civil contractors on loans/advances given to them during the
period the firm was carrying out civil work of the company. The firm
is requesting waiver of this interest which is under the consideration
of the company.
11. The company has taken on lease fixed asset of a total value of
Rs.1145.43 lacs for its Industrial alcohol plant, for which the
approval of the financial institutions is being obtained.
12. Exemption has been obtained from AP State Government for 74.88
acres of land out of 112.24 acres as per Section 18(2) of the AP Land
Reformance (ceiling on Agricultural Holdings) Act 1973. For the
balance land, our application for exemption is under consideration by
the Government.
13. Share application money refundable viz. Rs.2.48 lacs is under
reconciliation, applicable wise.
14. In the absence of information regarding small scale industrial
undertakings, the details required to be given in Part I of Schedule VI
of the companies act, 1956 in terms of notification No.GSR 129 (E)
dated 22.2.99 issued by the government could not be furnished.
15. Confirmation of balances has not been obtained in respect of
unsecured loans, creditors, debtors, loans and advances and advances
from customers.
16. Provision has not been made for interest on term loans payable to
IDBI in anticipation of getting waiver of interest, as a part of OTS,
in line with the OTS with other two Institutions namely ICICI & IFCI.
Regarding their term loans, OTS has been granted by them and monthly
instalments and number of instalments are fixed. After clearing the
principal portion, the interest portion will be taken into account as
and when paid. Therefore no provision for the interest payable to
ICICI & IFCI arises now.
17. Depreciation not provided for the period from 1.10.96 to 31.3.99
amounted to Rs 438.12 lacs.
18. As a mater of policy, the company has decided that the purchase tax
on cane purchases payable to the government. Should be accounted as
and when paid consequently, provision not made in this accounts under
this head amounts to Rs.407.16 lacs upto 31.3.99 and Rs. 112.56 lacs
for the year ended 31.3.2000, total amounting by Rs.519.72 lacs upto
31.3.2000.
19. Consumption of stores and spares has been arrived at on the basis
of stocks held at the beginning of the year and the end of the year and
purchase accounted during the year stock during the year. This
consumption may, therefore, include stores, spares and packing
materials used for repairs and maintenance of fixed assets and for
creation of fixed assets for which separate figures are not available.
20. In the absence of adequate information above small scale/ancillary
units, interest for delayed payment to such units if any, could not be
determinate in accordance with interest on delayed payment to small
scale and Ancillary Industrial undertaking Act 1993.
21. Rent includes Rs. 3.60 lacs paid to private limited company in
which the Managing director is a director.
22. Audit fee relates to :
This year Previous year
(Rs. in Lacs)
a. Statutory audit 0.25 0.80
b. Tax audit 0.25 0.25
23. Provision for gratuity has been made in respect of employees in
service on the last day of the accounting year, on the basis of salary
last drawn and the number of completed years of service.
24. No provision has been made for Leave enhancement, as per terms of
employment do not provide for the same.
25. Previous years figures have been regrouped wherever necessary to
confirm to grouping of this period.
26. Information pursuant to the provision of part II of Schedule VI of
the Companies Act, 1956.
Mar 31, 1999
1. The accounts of the preceding accounting period relate to 18 months
while those of the current year are for 12 months. The figures have to
be read in this context.
2. Schedule 1 to 20 form integral part of the accounts.
3. Contingent liabilities not provided for
As at As at
31.3.99 31.3.98
(Rs.in lakhs)
a. Estimated amount of contract
remaining to be executed on
capital account and not
provided for Not determined 0.40
b. Claims against the company
not acknowledged as debt. Nil Nil
c. Sales tax on works contract
and ST on lease rental Not determinable
d. Income tax demand 20.59 20.59
e. Counter guarantees given to
bank for bank guarantees. 0.75 0.75
3. Allottment/Call money in arrears of Rs.0.28 lac is net of interest
received from members for belated payment. The work of reconcilling
the interest/s receipt and allotment/Call money in arrears shareholder
wise is still under progress.
4. The company is taking action to obtain exemption from the Central
Government for having accepted unsecured loans from 2 firms aggregating
Rs.37.00 lacs which fall within the definition of "deposits" under
section 58 A of the Companies Act, 1956 and the rules framed
thereunder.
5. National Savings Certificates VIII issue of Rs.0.11 lac shown under
investment are under lien to Sales Tax authories towards security
deposit.
6. Stocks of stores, spares and packing materials have been physically
verified at the year end and valued at cost on the basis of the last
purchase price whereas, for the previous accounting period, the stocks
at the end of the period were valued at the weighted average rate. The
effect of the change in the method of valuation of the stocks of sugar,
molasses, baggasse, spirit, bio - earth and sugar & molasses in process
are valued at estimated net realisable value.
7. Amounts due from sundry debtors aggregating Rs.28.40 lacs and
outstanding for over six months are under dispute.
8. Balances with Banks in fixed deposit include :
i. Rs.12.88 lacs under lien to Banks for guarantees issued by them
ii. Rs.0.02 lac under lien to Sales tax authorities towards security
deposit.
9. Loans and Advances considered good include :
a. Rs. 0.56 lac being Rent advance paid to a private limited company in
which two directors of the company are directors. (Previous year
Rs.0.71 lac)
b. Rs.18.30 lacs being lease/rent advance paid to a firm in which two
directors are partners (previous year Rs.8.30 lacs),
10. Advance to suppliers includes Rs. Nil lacs for capital assets
(previous year Rs.0.30 lac)
11. Advances include Rs.36.08 lacs being part interest due from a firm
of civil contractors on loans/advance given to them during the period
the firm was carrying out civil works for the company. The firm is
requesting waiver of this interest which is under the consideration of
the company.
12. Income tax of Rs.20.59 lacs shown under Loans & Advances pertains
to the contingent liability of Rs.20.59 lacs appearing under item 4 (e)
13. The company has taken on lease fixed assets of a total value of
Rs.1,145.43 lacs for its Industrial Alcohol Plant, for which the
approval of the Financial Institutions is being obtained.
14. Exemption in respect of lands to the extent of 112.24 acres
determined as being in excess of limits prescribed under the Andhra
Pradesh Land Reforms (A.O.A.H) Act 1973 has been applied for and is
under consideration of the Govt. of Andhra Pradesh.
15. Encumbrance certificate/legal opinion is being obtained for the
lands purchased during the preceding period for Rs.11.57 lacs.
16. Share application money refundable viz. Rs.2.48 lacs is under
reconciliation, applicant wise.
17. In the absence of information regarding Small Scale Industrial
undertakings, the details required to be given in Part I of Schedule VI
of the companies Act, 1956 in terms of notification No.GSR 129(E) dated
22.02.99 issued by the Government could not be furnished.
18. Confirmation of balances has not been obtained in respect of
unsecured loans, creditors, debtors, loans and advances and advance
from customers.
19. Provision has not been made for interest payable to the financial
institutions for this year also. One of the financial institutions,
ICICI has filed a suit for recovery of principal and interest amounting
to Rs.1,786.59 lacs for period upto 31.03.99. Based on the claim made
by this institution as also the demands raised by the other
institutions, provision of interest not made in the accounts amounts to
Rs.2,192.21 lacs upto 31.03.98 and Rs.416.24 lacs for the year ended
31.03.99
20. Depreciation not provided for on the fixed assets for the current
financial year is Rs.198.28 lacs (inclusive of Rs.3.32 lacs relating to
previous accounting period). Total depreciation not provided for from
1.10.96 to 31.3.99 amounts to Rs.480.19 lacs.
21. As a matter of policy, the company has decided that the Purchase
tax on cane purchases payable to the Govt. should be accounted as and
when paid consequently, provision not made in this accounts under this
head amounts to Rs.422.88 lacs upto 31.3.98 and Rs.81.28 lacs for the
year ended 31.3.99.
22. Consumption of stores and spares has been arrived at on the basis
of stocks held at the at the beginning of the year and at the end of
the year and purchases accounted during the year stock during the year.
This consumption may, therefore, include stores, spares and packing
materials used for repairs and maintenance of fixed assets and for
creation of fixed assets for which separate figures are not available.
23. In the absense of adequate information above small scale/ancillary
units, interest for delayed payment to such units if any, could not be
determined in accordance with interest on delayed payments to Small
Scale and Ancilary Industrial Undertakings Act, 1993.
24. Rent includes Rs.3.60 lacs paid to a private limited company in
which the Managing Director is a Director.
25. Provision for gratuity has been made in respect of employees in
service on the last day of the accounting year, on the basis of salary
last drawn and the number of completed years of service.
26. No provision has been made for leave encashment as the terms of
employment do not provide for the same.
27. Previous years figures have been regrouped wherever necessary to
conform to grouping of this period.
Mar 31, 1998
1. Secured on a pari passu basis by hypothecation of all movable assets,
including movable plant and machinery, spares, tools and accessories
save and except book debts and subject to prior charge in favour of the
Company's bankers on sepecified assets for securing working capital
facilities and also by the irrevocable and unconditional personal
guarantees of Managing Director and M/s. Empee Distilleries Ltd. All
the loans are secured also by mortgage of immovable property except the
loan of Rs. 500 Lacs from IDBI.
2. Secured by hypothecation of stocks of raw materials, semi-finished and finished goods stores and spares not relating to Plant & Machinery
(consumable stores and spares), Bills receivable, book debts and all
other movables of the Company.
3. The approval of the concerned authority is still awaited for the
allotment of equity shares of the company of the face value Rs. 2 crores at par to the Managing Director without lock in period.
4. Allotment money in arrears of Rs. 0.28 Lac is net of interest received from members for belated payment of allotment money. The work
of reconciling the interest receipt and allotment money in arrears,
shareholder wise is still under progress.
5. Vehicles (vide item 5 of schedule 4) include Rs. 6.58 lacs being
cost of vehicles purchased under hire purchase agreement for which the
approval of the Financial Institutions is awaited.
6. Confirmation of balances has riot been obtained in respect of some
cases of Banks, Creditors, Debtors, Loans and Advances and Advance from
Customers.
7. Balances with Banks on fixed deposits include;
i) Rs. 10.12 Lacs under lien to Banks for guarantees issued by them.
ii) Rs. 0.02 Lac under lien to Sales Tax Authorities towards security
deposit.
iii) Rs. 101 Lacs under lien to Excise Dept. of the Govt. of
Pondicherry.
8. National Savings certificates VIII issue of Rs. 0.11 Lac shown
under investment are also under lien to Sales Tax Authorities towards
security deposit.
9. Amounts due from sundry debtors outstanding for over six months
(viz Rs. 29.22 Lacs) are under dispute.
10. Loans and Advances considered good include.
a) Rs. 0.71 Lac being rent advance paid to a private limited company in
which two directors of the company are Directors. (Previous year Rs.
0.71 Lac)
b) Rs. 2.41 Lacs being advance paid to a transport carriers firm in
which 3 Directors are partners. (Previous year Rs. 15.66 Lacs)
c) Rs. 0.04 Lac due from a Private Limited Company in which 2 directors
of Company are directors. (Previous year Nil)
d) Rs. 8.30 Lacs being lease/rent advance paid to a firm in which two
directors are partners. (Previous year Rs. 8.30 Lacs)
11. Advance to suppliers includes 0.30 Lac for capital assets (previous
year Rs. 159.01 Lacs).
12. The company has taken on lease fixed assets of a total value of Rs.
1081.58 Lacs for its Industrial Alcohol Plant for which the approval of
the Financial Institutions is being obtained.
13. Interest which may become due for delayed payments of purchase tax
under the Andhra Pradesh (Sugar cane Regulation) Act, 1961 has not been
provided for since no claim has been received from the concerned
authority.
14. Depreciation has not been provided on the fixed assets for the
period from 1.10.96 to 31.3.98 and the amount not so provided is Rs.
281.91 Lacs. This amount excludes Rs. 0.23 Lacs being depreciation on
assets sold during the period from 1.10.96 to upto the dates of sale
and the loss on sale of these assets does not therefore take into
account this depreciation.
15. As a matter of policy, the Company has decided that with w.e.f.
1.10.96 purchase tax on cane purchases payable to the Govt. should be
accounted as and when paid. Accordingly, the outstanding liability
towards purchase tax as on 30.9.96 viz. Rs. 371.79 lacs has been
written back in the Profit & Loss Account and no provision has also
been made on this account for the period 1.10.96 to 30.3.98 amounting
to Rs. 211.64 lacs. Payments made from 1.10.96 on this account viz Rs.
160.55 Lacs has been charged off to Profit & Loss Account.
16. In the absence of adequate stock records, consumption of stores and
spares has been arrived at by deducting the stock of stores and spares
on hand on 31.3.98 from the aggregated stock on hand on 1.10.96 and the
purchases made during the period 1.10.96 to 31.3.98 This consumption
may therefore, include stores and spares relating to earlier years also
used for repairs and maintenance of fixed assets and also those
used/issued for creation of fixed assets for which separate figures are
not available.
17. The stock of stores and spares as on 31.3.98 have been valued at
the weighted average rate with the last purchase price as on 1.10.97 as
the base, whereas, for the previous accounting periods the stocks were
valued at the last purchase price. This change in the method of
valuation of stocks has resulted in the value of stocks as on 31.3.98
being understated to the extent of Rs. 12.40 lacs approximately. The
stock of finished goods and goods in process are valued on the basis of
estimated net realisable value.
18. Share application money refundable viz Rs. 2.49 Lacs is under
reconciliation, applicant wise.
19. In the absence of adequate information about small scale/ancillary
units, interest for delayed payment to such units if any, could not be
determined in accordance with Interest on Delayed Payments to Small
Scale and Ancillary Industrial Undertakings Act, 1993.
20. No provision has been made for interest on delayed payments to
ryots for cane supplied by them during the period 1996-98. Interest
for such delays was paid for earlier seasons in accordance with and as
and when agreements were reached with the representatives of ryots in
this regard.
21. Income tax of Rs. 18.75 Lacs shown under Loans & Advances pertains
to the contingent liability of Rs. 18.75 Lacs appearing under item
4(f).
22. Donation of Rs. 3.06 Lacs (included in other expenses) is subject
to the approval of the Company in General Meeting.
23. Gratuity will be accounted as and when paid.
24. Exemption in respect of lands to the extent of 112.24 Acres
determined as in excess of limits prescribed under the Andhra Pradesh
Land Reforms (A.O.A.H.) Act 1973 has been applied for and is under
consideration of the Govt. of Andhra Pradesh.
25. Encumbrance certificate/legal opinion is being obtained for the
lands purchased during the period for Rs. 11.57 Lacs.
26. Previous year's figures have been regrouped wherever necessary to
conform to groupings of this period.
Sep 30, 1996
NOTES TO SECURED LOANS
* (Secured on a pari passu basis by hypothecation of all movable assets, including movable plant and machinery, machinery spares, tools and accessories save and except bookdebts and subject to prior charge in favour of the Company's bankers of specified assets for securing working capital facilities and also by the irrevocable and unconditional personal guarantee of the Managing Director and M/s.Empee Distilleries Ltd..)
** (Secured by hypothecation of stocks of sugar, stores and spares and molasses and also by mortgage by deposit of title deeds in respect of the Company's immovable properties by way of second charge)
NOTES TO LOANS AND ADVANCES
* Includes Rs. 16.78 Lakhs due from a Company under the same management. (Maximum outstanding during the year Rs. 198.95 Lakhs. Previous year Rs. 129.62 Lakhs)
** Includes Rs. 390.97 lakhs due from a Company under the same management (Maximum amount outstanding at any one time during the year Rs. 390.97 lakhs. Previous year Nil)
NOTES TO ACCOUNTS
1. The company has entered into an agreement with financial Institutions
(ICICI, IDBI and IFCI) for an one time settlement (OTS) where by the
penal/compound interest, liquidated damages and a part of the simple
interest accrued and due upto 31.3.96 on the Term Loans advanced by them will be waived by them subject to the company paying the principal amount of Loans and the balance interest in specified instalments on stipulated dates. The interest due on these loans as on 31.3.96 has been shown in the Balance sheet as determined under the OTS to be payable by the Company. The interest and other charges waived by the Financial Institutions have been shown under other Income in the Profit & Loss Account.
Interest due to the Financial Institutions for the period from 1.4.96
to 30.9.96 has been worked out at 20% (simple interest) on the
outstandings of Principal & balance interest due to these Institutions as on 31.3.96 as per the OTS.
Confirmation of these outstandings has however not been received from
the Institutions.
2. The approval of the concerned authority is still awaited for the
allotment of equity shares of the company of the face value of Rupees
2 crores at par to the Managing Director with out lock in period.
3. Allotment money in arrears of Rs.0.28 Lacs is net of interest received from members for belated payment of allotment money. The work of reconciling the interest receipt and allotment money in arrears, share holderwise is still under progress.
4. The unsecured term loan of Rs.5 Crores availed of from the IDBI is
covered by the personal guarantees of two Directors and of Empee
Distilleries Limited and is subject to the creation of a charge on
the fixed assets of Empee Sugars and Chemicals Ltd.
5. Vehicles (vide item 5 of Schedule 4) include Rs.7.55 Lacs being cost of vehicles purchased under hire purchase agreement for which the approval of the Financial institutions is awaited.
6. Confirmation of balances has not been obtained in respect of some
cases of Banks, Creditors, Debtors, Loans and Advances and Advance from customers.
7. The balance of Rs.52.92 Lacs appearing in the books as due from a
creditor is being disputed by the party. No provision, however has been made for the possible non-recovery of this amount, pending settlement. The party on the other hand has raised certain claims on the company, the quantum of which is not exactly determinable.
8. Balances with banks on fixed deposit include;
i. Rs.10.74 Lacs under lien to banks for guarantees issued by them and
ii. Rs.0.02 Lacs under lien to Sales Tax Authorities towards security
deposit.
9. National Savings Certificates VIII issue of Rs.0.10 Lacs shown
under investment are also under lien to Sales Tax Authorities towards
security deposit
10. Sundry Debtors outstanding for a period exceeding six months include Rs.15.09 Lacs due from a customer which is under dispute.
11. Loans and advances considered good include.
a) Rs.0.71 lacs being rent advance paid to a private limited company in which two Directors of the company are Directors. (Previous year Rs.0.56 lacs).
b) Rs.2.74 lacs being excise duty paid on unsaleable molasses stored in open pit, the recovery of which is dependent upon the Central Excise authorities approving the destruction of the spoiled by-product.
c) Rs.15.66 lacs being advance paid to a transport carriers firm in
which 3 Directors are partners.
d) Rs.8.30 Lacs being lease advance paid to a firm in which 2 Directors are partners.
12. In the absence of adequate stock records, consumption of stores and spares has been arrived at on the basis of stores and spares on hand at the begining of the year and at the end of the year and materials taken into stock during the year. This consumption includes stores and spares used in repairs and maintenance of fixed assets and also those consumed in earlier years for which separate figures are not available.
13. The company has taken on lease fixed assets of a total lease value of Rs.701.39 lakhs for its Industrial Alcohol plant, for which the approval of the Financial Institutions is being obtained.
14. Interest which may become due for delayed payments of Purchase Tax in certain months under the Andhra Pradesh Sugar (Regulation of supply and purchases) Act, 1961 has not been provided for since no claim has been received from the concerned authority.
15. Share application money refundable viz., Rs.2.49 lacs is under
reconciliation, applicant wise.
16. In the absence of adequate information about small scale/ancillary units, interest for delayed payment to such units if any, could not be determined in accordance with Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993.
17. Advances to suppliers include Rs.159.01 lakhs for capital assets.
(Previous year Rs.277.83 lakhs).
18. No provision has been made for interest on delayed payments to ryots for cane supplied by them during the period 1995-96. Interest for such delays was paid for earlier seasons in accordance with and as and when agreements were reached with the representatives of ryots in this regard.
19. Stores, spares and packing materials have been physically inventoried at the year end and valued at cost on the basis of last
purchase prices. Stocks of Sugar, Molasses, bagasse, spirit, Bio-earth and sugar in process are valued at net realisable value.
20. Gratuity will be accounted as and when paid.
21. Income Tax of Rs.13.74 lakhs shown under Loans & Advances pertains to the contingent liability of Rs.18.75 lakhs appearing under item 4 (f).
22. Rent includes Rs.1.80 lakhs paid to a company in which the Managing Director is a Director
Sep 30, 1995
1. The figures in the Profit and Loss account for the year relate to 12 months whereas these relate to 18 months for the immediately preceding accounting year. The corresponding figures for the two years have to be read in this context.
2. The approval of the concerned authority is still awaited for the allotment of equity shares of the company of the face value of Rs.2 crores at par to the Managing Director with out lock in period.
3. Allotment money in arrears of Rs.0.28 lac is net of interest received from members for belated payment of allotment money. The work of reconciling the interest receipt and allotment money in arrears, shareholderwise is still under progress.
4. The unsecured term loan of Rs.5 Crores availed of from the IDBI is covered by the personal guarantees of two directors and of Empee Distilleries Limited and is subject to the creation of a charge on the fixed assets of the company.
5. Vehicles (vide Item 5 of Schedule 4) include Rs.7.55 lace being cost of vehicle purchased under hire purchase agreement for which the approval of the Financial institutions is awaited.
6. The financial institutions Viz, ICICI, IDBI, IFCI have an option to convert pans of their rupee term loans into fully paid equity shares of the company at par as under:
a) Not exceeding Rs.250 lacs during the period 1.4.93 to 31.3.96.
b) Not exceeding Rs.50 lacs during the period 1.4.94 to 31.3.97.
7. Insurance payments recoverable includes Rs.8.49 lacs, the recovery of which from the ryots is being examined.
8. Confirmation of balances has not been obtained in respect of some cases of banks, creditors, debtors and loans and advances.
9. The balance of Rs.52.92 lacs appearing in the books as due from a creditor is being disputed by the party. No provision, however has been made for the possible non-recovery of this amount, pending settlement. The party on the other hand has raised certain claims on the company,
the quantum of which is not exactly determinable.
10. Balances with banks on fixed deposit include:
i. Rs.22.76 lacs under lien to bank for guarantees issued by them and
ii. Rs.0.02 lac under lien to Sales Tax Authorities towards security deposit.
11. National Savings Certificate VIII issue of Rs.0.10 lac shown under investment are also under lien to Sales Tax Authorities towards security deposit.
12. Loans and advances include
a) Rs.0.56 lacs being rent advance paid to a private limited company in which two directors of the company are directors. (Previous year Rs.0.56 lacs)
b) Rs.7.50 lacs being Front end fee paid twice to Financial institutions the recovery of which is still under correspondence.
c) Rs.2.74 lacs being Excise Duty paid on unsaleable molasses stored in open pit, the recovery of which is dependent upon the Central Excise authorities approving the destruction of the spoiled by - product.
d) Rs.57.26 lacs being advance paid to suppliers the adjustment of which is being examined.
13. In the absence of adequate stock record, consumption of stores and spares has been arrived at on the basis of stores and spares on hand at the beginning of the year and at the end of the year and purchases made during the year. This consumption includes stores and spares used in repairs and maintenance of fixed assets and in fabrication and
errection of fixed assets, separate figure of which are not available.
14. The company has taken on lease fixed assets of a total lease value of Rs.210.42 lakhs for its industrial Alcohol plant, for which the approval of the Financial Institutions is being obtained.
15. Interest which may become due for delayed payments of Purchase Tax in certain months under the Andhra Pradesh Sugar (Regulation of supply and purchases) Act, 1961 has not been provided for since no claims has been received from the concerned authority.
16. Share application money refundable viz., Rs.2.49 lacs is under reconciliation, applicant wise.
17. In the absence of adequate informations of small scale ancillary unit, interest for delayed payment to such units if any, could not be determined in accordance with interest on delayed payments to Small Scale and Ancillary Industrial undertakings Act, 1993.
18. Advances to suppliers include Rs.277.83 lakhs for capital assets. (Previous year Rs.227.49 lakhs)
19. Interest for delayed payment for cane supplied in 1993-94 season has been paid in accordance with the understanding reached with the representatives of ryots. No provision has been made for such delay in the 1994-95 season.
20. Stores and spares have been physically inventoried at the year end and valued at cost on the basis of last purchase prices. Stock of sugar, molasses, bagasse, spirit and work-in-progress are valued at lower of cost or net realisable value.
21. Interest to the term lending financial institutions for the secured loans availed from them has been provided on the basis of the demand notices and confirmation letters received form the institutions. There is however a possible liability for penal interest and liquidated
damages on the loan from the ICICI upto 30.9.92, the quantum of which has not been determined by the ICICI.
22. Income Tax of Rs.13.74 lakhs shown under Loans & Advances pertains to the contingent liability of Rs.18.75 lakhs appearing under item 4(f).
23. Rent includes Rs.1.86 lakhs paid to the Managing Director and Rs.1.80 lakhs paid to the company in which the Managing Director is a Director.
24. Previous year's figures have been regrouped wherever necessary to conform to this year's groupings.
Sep 30, 1994
2. Schedules 1 to 19 from integral part of the Accounts.
3. The company has with the approval of the Registrar of
companies, extended the Accounting year by 6 months upto
30.9.94 and consequently the Profits and Loss Account has
been drawn up for a period of 18 months from 1.4.93 to
30.9.94. The previous year's figures however relate to a
period of 11 1/2 months (i.e) 15.492 to 31.3.93. The
figures for the two accounting periods have to be read in
this context.
4. Contingent liabilities not provided for
As at As at
30.9.94 31.3.93
(Rs. in lakhs)
a) Estimated amounts of
contracts remaining to
be executed on capital
account and not provided fro 527.81 497.87
b) Claims against the
company not
acknowledged as debt 3.53 6.77
The Company has allotted its equity shares of the face
value of Rs.2 crores at par to the Managing Director by
private placement without a lock-in-period, against
consideration received earlier in the form of unsecured
loan. The company has applied to the concerned authorities
for their required approval.
Allotment money in arrears of Rs.0.96 lakh is net of
Interest received from members for belated payment of
allotment money. The work of reconciling the interest
receipt end allotment money in arrears shareholderwise is
still under progress.
The unsecured term loan of Rs. 5 crores availed of from
the IDBI is covered by the personal guarantees of two
Directors and of Empee Distilleries Limited end is subject
to the creation of a charge on the fixed aasets of the
company.
Vehicles (vide item 5 of Schedule 4) include Rs. 7.55
lacs being cost of vehicles purchased under hire purchase
agreement. The approval of financial Institutions is being
obtained for this hirepurchase.
The Financial institutions viz. ICICI, IDBI, IFCI have an
option to convert parts of their rupee Term Loans into fully
paid equity shares of the company at par as under:
a) not exceeding Rs. 250 lakhs during the period 1.4.93 to
31.3.96 and
b) not exceeding Rs. 50 laks during the period 1.4.94 to
31.3.97.
Due to delayed receipt of statement of Accounts from some
banks reconciliation in respect of these bank accounts is in
progress.
Confirmation of balances has not been obtained in respect
of some cases of banks creditors, debtors, and advances to
ryots.
The balance of Rs. 52.92 lakhs appearing in the books as
due from a creditor is being disputed by the party. No
provision, however has been made for the possible
non-recovery of this amount, pending settlement. The party
on the other hand has raised certain claims on the company,
the quantum of which is not exactly determinable.
Balance with banks on fixed deposits include:
i) Rs.1.45 lakh under lien to Bank for guarantee issued by
them and
ii) Rs. 0.02 lakh under lien to Sales Tax Authorities
towards security deposit.
National Savings Certificates VIII Issue of Rs.0.10 lakh
shown under Investment are also under lien to Sales Tax
Authorities towards security deposit.
Loans and Advances include:
a) Rs. 0.56 lakh being rent advance paid to a private
limited company in which two directors of the company are
directors. (Previous year Rs. 0.56 lakhs)
b) Rs. 3 lakhs being rent advance paid to a firm in which
the Managing Director is a partner for office accommodation
under construction (previous year-Nil) (Maximum amount
outstanding at any time during the year 3 Lakhs) (Previous
year-Nil)
Loans and advances include Rs. 2.74 lakhs being Excise Duty
paid on unsaleable molasses stored in open pit, the
recovery of which is dependent upon the Central Excise
authorities approving the destruction of the spoiled by
product.
In the absence of adequate stock records, consumption of
stores and spares has been arrived at on the basis of
stores and spares on hand at the beginning of the year and
at the end of the year and purchases made during the year.
This consumption includes stores and spares used in repairs
and maintenance of fixed assets, separate figures of which
are not available.
Interest which may become due for delayed payments of
Purchase Tax in certain months under the Andhra Pradesh
Sugar Cane (Regulation of supply and purchases) Act 1961
has not been provided for since no claims has been received
from the concerned authority.
Share application money refundable viz. Rs.2.55 lakhs is
under reconciliation, applicantwise.
In the abesence of adequate information of small scale
ancillary units, interest for delayed payment to such units
if any, could not be determined in accordance with interest
on delayed payment to Small Scale and Ancillary Industrial
Undertakings Act, 1993.
Advances to suppliers include Ra.227.49 lakhs for capital
assets.
Suppliers of machinery had filed a suit against the company
claiming differential Central Sales Tax and Interest on
account of non-issue of Form `C'. This suit has since been
withdrawn by the suppliers and the company has issued the
required `C' Forms. Liability, if any, on account of
non-acceptance of any of the `C' form so issued is however
not determinable at this stage.
The approval of the company in General Meeting is being
obtained to the expenditure of Rs.0.65 lakhs on donations.
Raw materials, stores and spares have been physically
inventoried at the year end and valued at cost on the basis
of last purchase prices. Stock of sugar, molasses, bagasse
and work in progress are valued at lower of cost or net
realisable value.
Interest to the term lending financial institutions for the
secured loans availed from them has been provided on the
basis of the demand notices and confirmation letters
received from the Institutions. There is, however a
possible liability for penal interest and liquidated
damages on the loan from the ICICI upto 30.9.92, the
quantum of which has not been determined by the ICICI.
Cane development expenses will be written off on the basis
of the period/s over which the benefits are expected to
endure and on this basis no part of the cane development
expenses has been written off during the year
Previous year's figures have been regrouped wherever
necessary to confirm to this year's groupings.
Information pursuant to the Provisions of Part II of
Schedule VI of the Companies Act, 1956.
A. Licensed and Installed Capacity for Manufacture of Sugar
i) Licensed Capacity 2500 tonnes per day
ii) Installed Capacity 2500 tonnes per day
B. Expenditure on Employees in Receipt of Remuneration of
not less than Rs.300000 per annum or Rs.25000 per month.
(during the Year)
Mar 31, 1993
The company commenced commercial production on 15.4.92 and the
Profit and Loss Account has been drawn up for the period 15.4.92
to 31.3.93. As this is the first year of commercial operations
the figures of the previous years have not been given for Profit
and Loss Account items.
Allotment money in arrears of Rs.4.30 lakhs is net of
interest received from members for belated payment of allotment
money. The work of reconciling the interest receipt and
allotment money in arrears, shareholderwise, is still under
progress.
The unsecured Short Term Loan of Rs. 5 crores availed from
the IDBI is covered by the personal guarantees of the two
Directors and of Em pee Distilleries Limited and is subject to
the creation of a charge on the fixed assets of the company.
Against an unsecured loan of Rs. 140 lacs taken from Fairgrowth
Financial Services Limited, the company had repaid Rs.40 lacs
during the year direct to the lender after the appointment of
the Custodian.
Vehicles (vide item 5 of Schedule - 4) include Rs. 7.55 lacs
being cost of vehicles purchased under hire purchase agreement.
The approval of Financial Institutions is being obtained for
this hirepurchase.
The Unsecured Loan of Rs. 196.75 lacs received from Managing
Director is subordinate to the Term Loans received from the
Financial Institutions and bears interest at a rate not
exceeding the average rate of interest of Financial Institutions
or at the rate of dividend whichever is lower. Accordingly, no
interest is payable for this loan for the year.
The Financial Institutions viz., ICICI, IDBI and IFCI have an
option to convert parts of their rupee Term Loans into fully
paid equity shares of the company at par as under:
a) not exceeding Rs.250 lacs during the period 1.4.93 to 31.3.96
and
b) not exceeding Rs. 50 lacs during the period 1.4.94 to
31.3.97
Tax deducted at source aggregating Rs.10.97 lakhs relating
to payments upto March ' 93 still remains to be remitted.
Confirmation of balances have not been received in respect of
some cases of creditors, debtors, advances and banks.
The balance of Rs. 52.92 lakhs appearing in the books as due
from a creditor is being disputed by the party. No provision,
however has been made for the possible non recovery of this
amount, pending settlement. The party on the other hand raised
certain claims on the Company, the quantum of which is not
exactly determinable.
Balance with banks on fixed deposits include:
i) Rs. 2 lacs under lien to bank for guarantee issued by them
and
ii) Rs. 0.02 lacs under lien to Sales Tax authorities towards
security deposit.
National Savings Certificates VIII Issue of Rs. 0.10 lacs
show under investment are also under lien to Sales Tax
authorities towards security deposit.
Loans and advances includes Rs. 0.56 lacs being rent advance
paid to a Private Limited Company in which two Directors of the
Company are Directors (Previous year Rs. 0.56 lacs)
Loans and advances include Rs. 2.74 lacs being Excise Duty paid
on unsaleable molasses stored in open pit, the recovery of which
Is dependent upon the Central Excise authorities approving the
destruction of the spoiled byproduct
In the absence of adequate stock records, consumption of stores
and spares has been arrived at on the basis of stores on hand at
the beginning of the year and at the end of the year and
purchase made during the year. This consumption includes stores
and spares used in repairs and maintenance of fixed assets,
separate figures of which are not available.
Interest which may become due on delayed payment of Purchase Tax
in certain months under the Andhra Pradesh Sugar Cane
(Regulation of supply and purchases) Act 1961 has not been
provided for since no claims has been received from concerned
authority.
Share Application Money refundable viz. Rs. 3.03 lacs is under
reconciliation applicantwise.
In the absence of adequate information of small scale ancillary
units, interest for delayed payment to such units, if any, could
not be determined in accordance with Interest on delayed Payment
to Small Scale and Ancillary Industrial Undertakings Act, 1993.
Advance to suppliers includes Rs. 141.47 lacs given for
purchase of capital assets.
The approval of the company in general meeting is being obtained
to the expenditure of Rs.1.43 lacs on donations.
Mar 31, 1992
In respect of a creditor the debit balance of Rs.55,15,753/- in the books of the company is being disputed by the party. The matter is under negotiation for a settlement.
Allotment money in arrears of Rs.71,57,872/- is net of interest received from members for belated payment of allotment money. The work of reconciling the interest receipt and allotment money in arrears shareholder-wise is under progress. No provision is made for interest due on allotment money in arrears as on 31st March, 1992.