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Notes to Accounts of Jeypore Sugar Company Ltd.

Mar 31, 2015

Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

1. No bonus shares were issued by the company during the last five financial years.

2. Out of the subscribed and paid-up capital of 45,34,528 Equity shares, 45,452 Shares were alloted as fully paid up pursuant to a contract without payment being received in cash.

3. The company has issued only one class of Equity shares having a par value of Rs.10/- each. Each holder of Equity share is entitled to one vote per share on poll and have one vote on show of hands. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the company in proportion to their shareholding after distribution of payments to preferential creditors.

4. Details of share holders holding more than 5% of total number of shares

5. Term loans from banks for financing new sugar plant at Pothavaram

The term loans from IDBI Bank Ltd., Bank of Baroda, State Bank of Hyderabad and Andhra bank are secured by way of first charge on pari passu basis on all the immovable and movable assets of sugar mills at Chagallu and Pothavaram of the company both present and future (excluding assets of the Chagallu distillery and land at Chennai and Rayagada).

The term loan from IDBI-III (Rs. 30 crores) is further secured by way of second pari passu charge on entire current assets of the company.

Further, the Funded interest Term loan is collaterlly secured by way of first charge on the land, buildings and Plant and machinery of distillery division at Jangareddygudem on pari-passu basis with IDBI Bank Ltd., State Bank of Hyderabad, Andhra Bank and Bank of Baroda.

The above loans are guaranteed by Managing director and Executive director in their personal capacities.

IDBI Bank Ltd.

i) The Rupee Term loan-I is repayable in 79 monthly unequal installments commencing from 1.4.2011 and ending on 1.10.2017, Rupee Term-II is repayable in 83 monthly unequal installment commencing from 1.4.2011 and ending on 1.2.2018 and Rupee Term loan-III is repayable in 72 monthly uneuqal installments commencing from 1.4.2012 and ending on 1.3.2018. Further, the Funded interest term loan is repayable in 61 monthly unequal installments commencing from 1.5.2013 and ending on 1.5.2018.

ii) The rate of interest varies based on the bank rate and present rate of interest is 15.50% for all the loans.

iii) The following amounts are repayable as per the above repayment terms.

Term Loan - I 31.3.2016 Rs.8.55 cr: 31.3.2017 Rs.8.55 cr: 31.3.2018 Rs.8.55 crores:

Total Rs.25.65 cr.

Term Loan - II 31.3.2016 Rs.4.45 cr: 31.3.2017 Rs.4.45 cr: 31.3.2018 Rs.4.45 crores:

Total Rs.13.35 cr.

Term Loan - III 31.3.2016 Rs.6 cr: 31.3.2017 Rs.7.50 cr: 31.3.2018 Rs.7.20 cr:

Total Rs.20.70 cr.

Funded Interest Term Loan 31.3.2016 Rs.3.30 cr: 31.3.2017 Rs.3.30 cr: 31.3.2018 Rs.3.30 cr

Total Rs.9.90 cr.

iv) The company made no continuing defaults in repayment of installments as on 31.3.2015.

However, an amount of Rs.0.22 crores towards principal and Rs.1.11 crores towards Interest was pending for remittance as on 31.3.2015.

Bank of Baroda

i) The Rupee Term loan is repayable in 79 monthly unequal installments commencing from 1.4.2011 and ending on 1.10.2017 and Funded Interest term loan is repayable in 72 monthly unequal installments commencing from 1.4.2012 and ending on 1.3.2018.

The following amounts are repayable as per the above repayment terms.

Term loan: 31.3.2016 Rs.5.40 cr: 31.3.2017 Rs.5.40 cr: 31.3.2018 Rs.5.40 cr:

Total Rs.16.20 cr.

Funded Interest Term Loan 31.3.2016 Rs.1.56 cr: 31.3.2017 Rs.1.55 cr: 31.3.2018 Rs.1.55 cr:

Total Rs.4.66cr.

ii) The term loan carries interest at 14.25% and Funded interest loan carries interest at 14.75%.

iii) The company made continuing defaults in repayment of installments and interest and an amount of Rs.4.30 crores was pending for remittance as on 31.3.2015.

State Bank of Hyderabad

During the year, the bank approved compromise proposal of company whereby the total outstanding amount was settled at Rs.24.14 crores. As per the terms of compromise, the company has to pay Rs.12 crores before 31.3.2015, Rs.10 crores before 30.6.2015 and balance Rs.2.14 crores before 30.9.2015.

Andhra Bank

i) The Rupee Term loan is repayable in 84 monthly unequal installments commencing from 2011-12 and ending on 2017-18. Further, the funded interest term loan is repayable in 72 monthly unequal installments commencing from 1.4.2012 and ending on 1.3.2018.

The following amounts are repayable as per the above repayment terms.

Term loan: 31.3.2016 Rs.3.60 cr: 31.3.2017 Rs.3.60 cr: 31.3.2018 Rs.3.60 cr:

Total Rs.10.80 cr.

Funded Interest Term Loan 31.3.2016 Rs.1.15 cr: 31.3.2017 Rs.1.15 cr: 31.3.2018 Rs.1.15 cr:

Total Rs.3.45 cr.

ii) The rate of interest varies based on the bank rate and at present the rate of Interest is 16.25% for Term loan and 16.50% for Funded Interest Term Loan.

iii) The company made continuing defaults in repayment of instalments and interest and an amount of Rs.11.87 crores was outstanding for remittance as on 31.3.2015.

2) Term loan from Bank of India

i) Term loan is secured by way of equitable mortgage by deposit of title deeds of immovable properties admeasuring Ac.150 belonging to the EM division, Rayagada and Ac.40 of land and building and hypothecation of other fixed assets of Chagallu Distillery Divisional.

ii) The loan carries interest at 13.00%.

iii) The said loan is repayable in 59 unequal monthly installments commencing from April, 2013 and ending on February, 2018.

The following amounts are repayable as per the above repayment terms.

31.3.2016 Rs.14.40 cr: 31.3.2017 Rs.14.40 cr: 31.3.2018 Rs.13.20 cr: Total Rs.42 cr.

iii) The company made continuing defaults in repayment of installments and interest and an amount of Rs.1.16 crores was outstanding for remittance as on 31.3.2015.

3) Term loan from ICICI

i) Term loan is secured by way of Equitable mortgage of properties at Rayagada, Orissa admeasuring Ac.151.47 cents belonging to the copmpany and 1 Ac.of land in Coimbatore belonging to Managing director.

ii) The above loan carries interest at 14.75%

iii) Payable in 8 equal half-yeraly installments of Rs.2.75 cores each and 1st installment commences from 27.8.2013.

iv) No continuing defaults in repayment of installments and interest except an amount of Rs. 0.20 crores pending for remittance as on 31.3.2015.

4) Loan from IDBI under SEFASU, 2014.

The company has been sanctioned with Rs.6.64 crores under SEFASU, 2014 for clearance of cane price arrears. The said loan is repayable in 36EMI and 1st instilment commences from 1.10.2016.

The loan carries interest @15.75% of which 12% is to be reimbursed by Government of India.

The above loan is secured by way of 1st mortgage and charge on all movable and immovable properties of chagallu and Pothavaram sugar units and 2nd charge on Inventories and other current assets of the company. Further, the loan is secured by way of 1st charge on all properties of Jangareddy gudem on pari passu basis with FITL loan availed by the company. Further guaranteed by MD and ED in their individual capacities.

5) Loan from IOB under SEFASU, 2014.

The company has been sanctioned with Rs.4.07 crores under SEFASU, 2014 for clearance of cane price arrears. The said loan is repayable in 36EMI of Rs.11.31 lakhs each and 1st instalment commences after a moratorium period of 2 years from the date of 1st disbursement.

The loan carries interest @14.75% of which 12% is to be reimbursed by Government of India.

The said loan is secured by way of 3rd pari passu charge by way of hypothecation of stocks and 3rd pari passu charge on block of fixed assets of the company. Further guaranteed by Managing Director and Executive Director in their personal capacities.

6) Fixed deposits accepted by company carries interest @10% to 10.50% based on period of deposit. No defaults were made in repayment of deposits.

7) Unsecured loan from directors carries interest @ 10% and is repayable after a period of 5 years.

Note:

a) Working capital loans from banks are secured by way of hypothecation of inventories and second pari-passu charge on fixed assets of chagallu units amongest the working capital consortium lenders to chagallu sugar division.

The above loans carries interest at following rates.

Bank of India - 15% : Bank of Baroda - 14.5% : IOB - 15% : Andhra Bank - 17.25% : SIB - 15.25%

DCCB - 15% and IDBI - 13.5%

In some of the occasions, the company overdrawn amounts in excess of the sanctioned limits.

b) Short Term loan from IDBI carries interest @15.50% and is repayable as a bullet payment after a moratorium of 6 months from the date of first disbursement. The loan is secured on lands admeasuring Ac.43.24 belonging to company located at Coimbatore.

Disclosures required under the Micro,Small and Medium Enterprises Development Act, 2006.

Based on, and to the extent of information received from the suppliers with regard to their status under Micro, Small and Medium Enterprises Development Act, 2006(MSMED ACT), on which the auditors Unclaimed dividend represents those relating to the years 2007-08 to 2011-12 and no part thereof has remained unpaid or unclaimed for a period of 7 years or more from the date they became due for payment requiring transfer to the Investor Education Protection fund, except the following.

The above amount includes 2004-05 Rs.61,845/- (Interim), 2004-05 Rs.61845/- (Final), 2005-06 Rs.61,845/-(Interim), Rs.1,85,535/- (Final), 2006-07 Rs.92768/- (Interim) and Rs.30,923/- (Final) which is held in abeyance due to legal cases pending before High court of Judicature of Madras.

6. The Board has proposed to demerge Pothavaram Unit i.e., V R K Sugars into a separate company w.e.f 01.10.2012 as the Appointed day and has intimated the Stock Exchange. Pending approval of the scheme, the assets and liabilities of the resultant entity included in the financial statements of the current year. The un-allocated and common assets and liabilities have been apportioned to the respective units when the scheme got approval. The company is in the process of fnalizing the applications to be moved before the authorities for securing orders to convene meeting of shareholders and meeting of creditors to consider the scheme of demerger.

7. Under the provisions of the Orissa Land Reforms Act, 1960, the Revenue Officer has declared the agricultural lands owned by company to an extent of Acres 488.76 as surplus under sec.44(1) of the said Act. No provision is made in the accounts for the probable loss in this matter, pending fnal legal decision in the appeal preferred by the company against the said declaration.

8. CONTINGENT LIABILITIES :

a) The company has received demands from the Orissa State Sales tax department for Rs.2,00,21,670/- towards sales tax on some of its assets sold in the year ending 31st March, 1996. As per the contract, the above sales tax liability is to be borne by the buyer. Hence no provision is considered necessary in the books of the company for the said demand. As per the directions of the High Court, the buyer has paid a sum of Rs.50 lakhs under protest and the company (seller) was directed to pay under protest an additional sum of Rs.50 lakhs in installments. Accordingly the company has so far paid a sum of Rs.30 lakhs and the same is included under loans and advances.

d) Guarantee worth Rs.2,17,62,000/-(Rs.7,76,30,397/-) executed by Banks on behalf of the company are sucured by counter Guarantee given to them by the company and its Managing Director and Executive Director in their individual capacities.

30. Balances appearing under Trade receivables, Trade payables and Loans and advances as per the books of the company are subject to confirmation. The adjustments, if any, on confirmation/ reconciliation of such accounts will be made in the sand year.

In the opinion of Board of Directors, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which these are stated.


Mar 31, 2014

1) The Board has proposed to demerge Pothavaram Unit i.e.., V R K Sugars into a separate company w.e.f 1.10.2012 as the Appointed day and has intimated the Stock Exchange. Pending approval of the scheme, the assets and liabilities of the resultant entity included in the financial statements of the current period. The un-allocated and common liabilities have been apportioned to the respective units when the scheme got approval. The company is in the process of finalizing the applications to be moved before the High Court of Madras for securing orders to convene meeting of shareholders and meeting of creditors to consider the scheme of demerger.

2) Under the provisions of the Orissa Land Reforms Act, 1960, the Revenue Officer has declared the agricultural lands owned by company to an extent of Acres 488.76 as surplus under sec.44(1) of the said Act. No provision is made in the accounts for the probable loss in this matter, pending final legal decision in the appeal preferred by the company against the said declaration.

3)CONTINGENT LIABILITIES :

a) The company has received demands from the Orissa State Sales tax department for Rs.2,00,21,670/- towards sales tax on some of its assets sold in the year ending 31st March, 1996. As per the contract, the above sales tax liability is to be borne by the buyer. Hence no provision is considered necessary in the books of the company for the said demand. As per the directions of the High Court, the buyer has paid a sum of Rs.50 lakhs under protest and the company (seller) was directed to pay under protest an additional sum of Rs.50 lakhs in instalments. Accordingly the company has so far paid a sum of Rs.30 lakhs and the same is included under loans and advances.

e) Guarantee worth Rs. 7,76,30,397/-(Rs.7,55,25,000/-) executed by Banks on behalf of the company are secured by counter Guarantee given to them by the company and its Managing Director and Executive Director in their individual capacities.

As at 31.03.2014 As at 31.03.2013

b) Contracts remaining to 71285000 71285000 be executed on capital account and not provided

c) Claims against the company not acknowledged as debts towards:

i) Differential cane price 830,81,082 8,30,81,082

ii) Electricity Duty etc 3,76,16,500 3,43,85,046

iii) Income-tax 3,69,051 3,69,051

iv) Excise duty 7,61,00,610 7,61,00,610

v) Service tax 16,10,484 16,10,484

vi) Sales tax 16,92,435 16,92,435

vii) Interest on advances 95,00,000 95,00,000 from suppliers

viii) Provident Fund 39,378 39,378

ix) Others 2,43,555 2,43,555

4) The company extended its securities offered to the ICICI bank in respect of loans availed by it in respect of loans sanctioned by the bank to the cane growers.

5) General:

Paise have been rounded off. figures for the previous year have been regrouped wherever necessary.


Mar 31, 2013

1) The company has prepared its Profit and Loss account for a period of 6 months for the period from 1.10.2012 to 31.3.2013 as against 18 months period from 1.4.2011 to 30.9.2012 for last year. Hence the figures for the current period are not comparable with those of the previous financial period.

2) The Board has proposed to demerge Pothavaram Unit i.e.., V R K Sugars into a separate company w.e.f 1.10.2012 as the Appointed day and has intimated the Stock Exchange. Pending approval of the scheme, the assets and liabilities of the resultant entity included in the financial statements of the current period. The un-allocated and common liabilities have been apportioned to the respective units when the scheme got approval. The company is in the process of finalizing the applications to be moved before the High Court of Madras for securing orders to convene meeting of shareholders and meeting of creditors to consider the scheme of demerger.

3) Under the provisions of the Orissa Land Reforms Act, 1960, the Revenue Officer has declared the agricultural lands owned by company to an extent of Acres 488.76 as surplus under sec.44(1) of the said Act. No provision is made in the accounts for the probable loss in this matter, pending final legal decision in the appeal preferred by the company against the said declaration.

4) CONTINGENT LIABILITIES :

a) The company has received demands from the Orissa State Sales tax department for Rs.2,00,21,670/- towards sales tax on some of its assets sold in the year ending 31st March, 1996.As per the contract, the above sales tax liability is to be borne by the buyer. Hence no provision is considered necessary in the books of the company for the said demand. As per the directions of the High Court, the buyer has paid a sum of Rs.50 lakhs under protest and the company (seller) was directed to pay under protest an additional sum of Rs.50 lakhs in instalments.Accordingly the company has so far paid a sum of Rs.30 lakhs and the same is included under loans and advances.

5) Balances appearing under Trade receivables, Trade payables and Loans and advances as per the books of the company are subject to confirmation. The adjustments, if any, on confirmation/ recon ciliation of such accounts will be made in the said year.

In the opinion of Board of Directors, the current assets, loans and advances have a value on realisation in the ordinary course of business atleast equal to the amount at which these are stated.

6) Details of expenses included under Unallocated capital expenditure incurred and pending allocation as on the date of Balance Sheet.

III. Names of the related parties with whom there were transactions during the year :

1. Subsidiary Company :

Jeypore Sugar Finance & Investment Corpn Ltd

2. Companies controlled by key managerial personnel :

a) Krishna Industrial Corporation Limited

b) RS Industrial Corporation (P) Limited

c) VRK Grandsons Investment (P) Limited

d) Ramakrishna Machinery Corporation (P) Limited

e) V Rama Krishna Sugar Co Limited

3. Key managerial personnel

a) Smt.Rajeswary Ramakrishnan, Managing Director

b) Smt.Anita Prabhu, Executive Director

4. Relatives of key managrial personnel their relation

a) Sri.R.Prabhu, Son of Smt.Rajeswary Ramakrishnan

b) Dr.S.R.K.Prasad, Son of Smt.Rajeswary Ramakrishnan

c) Sri Vikram Ramakrishna, Son of Smt.Anita Prabhu

d) Sri.Rajiv Rangaswamy, Grand Son of Smt.Rajeswary Ramakrishnan

e) Ms.S.Nandita, Grand Daughter of Smt.Rajeswary Ramakrishnan

7) Cash flow statement - Enclosed

8) Segment reporting - enclosed

9) The company extended its securities offered to the ICICI bank in respect of loans availed by it in respect of loans sanctioned by the bank to the cane growers.

10) General:

Paise have been rounded off.

Figures for the previous year have been regrouped wherever necessary.


Sep 30, 2012

1. Out of the above share capital, 9,05,286 equity shares were alloted as fully paid-up by way of bonus shares by capitalisation of reserves. However, no bonus shares were issued by the company during the last five financial years.

2. Out of the subscribed and paid-up capital of 45,34,528 Equity shares, 45,452 were alloted as fully paid up pursuant to a contract without payment being received in cash.

Note: 1) Term loans from banks for financing new sugar plant at Pothavaram

The above term loans from IDBI, Bank of Baroda, SBH and Andhra bank are secured byway of first charge on pari passu basis on all the immovable and movable assets of sugar mills at Chagallu and Pothavaram of the company both present and future (excluding assets of the Chagallu distillery and land at Chennai, Tudiyalur and Rayagada).

The term loan from IDBI-III (Rs. 30 crores) is further secured by way of second pari passu charge on entire current assets of the company and first charge on company''s land admeasuring Ac. 43.29 located at Tudiyalur, Coimbatore, Tamilnadu.

Further, the Funded interest Term loan is collaterlly secured by way of first charge on the land, buildings and Plant and machinery of distillery division at Jangareddygudem on pari-passu basis with IDBI, SBH, Andhra Bank and Bank of Baroda.

The above loans are guaranteed by Managing director and Executive director in their personal capacities.

All the above loans were rescheduled for payment commencing from 1.4.2011.

IDBI

i) The rate of interest varies based on the bank rate and following are the rate of interest at present. Term loan-l -13.75%: Term loan - II -13.75%: Term loan - III -15.75% and for Funded interest 15%.

ii) After reschedulement, the Rupee Term loan-l is repayable in 79 monthly unequal instalments commencing from 1.4.2011 and ending on 1.10.2017, Rupee Term-ll is repayable in 83 monthly unequal instalment commencing from 1.4.2011 and ending on 1.2.2018 and Rupee Term loan-ill is repayable in 72 monthly uneuqal instalments commencing from 1.4.2012 and ending on 1.3.2018. Further, the Funded interest term loan is repayable in 72 monthly unequal instalments commencing from 1.4.2012 and ending on 1.3.2018.

The following amounts are repayable as per the above repayment terms.

Term Loan -1 31.3.14 Rs.4.06 cr: 31.3.2015 Rs.8.12 cr: 31.3.2016 Rs.8.55 cr: 31.3.2017 Rs.8.55 cr: 31.3.2018 Rs.8.55 crores: Total Rs.37.83 cr.

Term Loan - II 31.3.14 Rs.2.11 cr.: 31.3.2015 Rs.4.22 cr: 31.3.2016 Rs.4.45 cr: 31.3.2017 Rs.4.45 cr: 31.3.2018 Rs.4.45 crores: Total Rs. 19.67 cr.

Term Loan - III 31.3.14 Rs.1.50 cr.: 31.3.2015 Rs.6 cr: 31.3.2016 Rs.6 cr: 31.3.2017 Rs.7.50 cr: 31.3.2018 Rs.7.20 cr: Total Rs.28.20 cr.

Funded Interest

Term Loan 31.3.14 Rs.3.45 cr.: 31.3.2015 Rs.3.45 cr: 31.3.2016 Rs.3.45 cr: 31.3.2017 Rs.3.45 cr: 31.3.2018 Rs.3.45 cr: Total Rs. 17.25 cr.

iii) The company made defaults in payment of the following amounts as on 30.9.2012. Term Loan-I Rs.3,56,250/-, Term Loan-ll Rs.1,85,250/- and for Term Loan-Ill Rs.2,50,000/-

Bank of Baroda

i) The rate of interest varies based on the bank rate and following are the rate of interest at present. The term loan carries interest at 14.50% and Funded interest loan carries interest at 15%.

ii) After reschedulement, the Rupee Term loan is repayable in 79 monthly unequal instalments commencing from 1.4.2011 and ending on 1.10.2017 and Funded Interest Term loan is repayable in 72 monthly unequal instalments commencing from 1.4.2012 and ending on 1.3.2018.

The following amounts are repayable as per the above repayment terms.

Term loan: 31.3.14 Rs.2.565 cr.: 31.3.2015 Rs.5.13cr: 31.3.2016 Rs.5.40 cr: 31.3.2017 Rs.5.40 cr: 31.3.2018 Rs.5.40 cr: Total Rs.23.895 cr.

Funded Interest

Term Loan 31.3.14 Rs.lOOcr.: 31.3.2015 Rs.1.00cr: 31.3.2016 Rs.1.02cr: 31.3.2017 Rs.1.02 cr: 31.3.2018 Rs.1.02 cr: Total Rs.5.06 cr.

iii) No defaults were made in repayment of above loan.

State Bank of Hyderabad

i) The rate of interest varies based on the bank rate and at present the rate of Interest is 15%.

ii) After reschedulement, the Rupee Term loan is repayable from 2011-12 and ending on 2017-18 and funded interest Term loan is repayable in 72 monthly unequal instalments commencing from 1.4.2012 and ending on 1.3.2018.

The following amounts are repayable as per the above repayment terms.

Term loan: 31.3.14 Rs.1.81 cr.: 31.3.2015 Rs.3.61 cr: 31.3.2016 Rs.3.80 cr: 31.3.2017 Rs.3.80 cr: 31.3.2018 Rs.3.80 cr: Total Rs.16.82 cr.

Funded Interest

Term Loan 31.3.14 Rs.0.74 cr.: 31.3.2015 Rs.0.74 cr: 31.3.2016 Rs.0.74 cr: 31.3.2017 Rs.0.74 cr: 31.3.2018 Rs.0.74 cr: Total Rs.3.71 cr.

iii) The company made defaults in payment of the following amounts as on 30.9.2012. Term Loan Rs.28,50,000/- and Funded interest Rs.4,19,856/-

Andhra Bank

i) The rate of interest varies based on the bank rate and at present the rate of Interest is 17.25%.

ii) After reschedulement, the Rupee Term loan is repayable in 84 monthly unequal instalments commencing from 2011-12 and ending on 2017-18. Further, the funded interest term loan is repayable in 72 monthly unequal isntalments commencing from 1.4.2012 and ending on 1.3.2018. ''

The following amounts are repayable as per the above repayment terms.

Term loan: 31.3.14 Rs.1.71 cr.: 31.3.2015 Rs.3.42 cr: 31.3.2016 Rs.3.60 cr: 31.3.2017 Rs.3.60 cr: 31.3.2018 Rs.3.60 cr: Total Rs. 15.93 cr.

Funded Interest

Term Loan 31.3.14 Rs.0.63cr.: 31.3.2015 Rs.0.63 cr: 31.3.2016 Rs.0.63 cr: 31.3.2017 Rs.0.63 cr: 31.3.2018 Rs.0.64 cr: Total Rs.3.16 cr.

iii) No defaults were made in repayment of above loan.

2) Term loan from Bank of India

i) Term loan from BOI is secured by way of equitable mortgage by deposit of title deeds of immovable properties admeasuring Ac. 150 belonging to the EM division, Rayagada and Ac.40 of land and building and hypothcation of other fixed assets of chagallu distillery unit.

ii) The loan carries interest at 14.50%.

iii) The said loan is repayable in 59 unequal monthly instalments commencing from April, 2013 and ending on February, 2018.

The following amounts are repayable as per the above repayment terms.

31.3.14 Rs.2.40 cr.: 31.3.2015 Rs.13.20 cr: 31.3.2016 Rs.14.40 cr: 31.3.2017 Rs.14.40 cr: 31.3.2018 Rs. 13.20 cr: Total Rs.57.60 cr.

3) Term loan from ICICI

i) The above loan is secured by way of Equitable mortgage of properties at Rayagada, Orissa admeasuring Ac. 151.47 cents belonging to the copmpany and Ac.1 of land in Coimbatore belonging to Managing director.

ii) The above loan carries interest at 14.75%

iii) Payable in 8 equal instalments of Rs.2.75 cores each and 1 st instalment commences from 27.8.2013

4) Unsecured loans from IFCI for cane development and modernisation:

i) The loans carries interest at 4% and is repayable in 4 equal instalments and final instalment falls due on 31.3.2014 Rs.62.50 lakhs (Modernisation) and 3.6.2014 Rs.62.50 lakhs (Cane development).

No defaults in repyment of above loans.

5) Fixed deposits accepted by company carries interest @10% to 10.50% based on period of deposit. No defaults in repayment of deposits.

Note:

a) Working capital loans from banks are secured by way of hypothecation of inventories and second pari-passu charge on fixed assets of chagallu units amongest the working capital consortium lenders to chagallu sugar division.

The above loans carries interest at following rates. Bank of India -15% : Bank of Baroda -14.5% : IOB -15% : Andhra Bank -17.25% : SIB -15.25% DCCB -15% and IDBI -13.5%

b) Term loan from ICICI bank is secured by way of equitable mortgage of land situated at Rayagada and further collaterally secured on land belonging to Managaing director.However, the said loan was repaid during the year.

1) The company has extended its financial year under Section 210 of Companies Act, 1956 by six months upto 30th September, 2012. The said extension was approved by Registrar of companies vide its letter dt. 31st July 2012 . Accordingly the Profit and loss account has been prepared for the period from 1.4.2011 to 30.9.2012. Hence the figures for the current period are not comparable with those of the previous year.

2) Under the provisions of the Orissa Land Reforms Act, 1960, the Revenue Officer has declared the agricultural lands owned by company to an extent of Acres 488.76 as surplus under sec.44(1) of the said Act. No provision is made in the accounts for the probable loss in this matter, pending final legal decision in the appeal preferred by the company against the said declaration.

3) CONTINGENT LIABILITIES:

a) The company has received demands from the Orissa State Sales tax department for Rs.2,00,21,670/- towards sales tax on some of its assets sold in the year ending 31st March, 1996. As per the contract, the above sales tax liability is to be borne by the buyer. Hence no provision is considered necessary in the books of the company for the said demand. As per the directions of the High Court, the buyer has paid a sum of Rs.50 lakhs under protest and the company (seller) was directed to pay under protest an additional sum of Rs.50 lakhs in instalments. Accordingly the company has so far paid a sum of Rs.30 lakhs and the same is included under loans and advances.

30.09.2012 31.03.2011

b) Contracts remaining to be executed on capital account and not provided 7,12,85,000 6,58,55,000

c) Claims against the company not acknowledged as debts towards:

i) Differential cane price 8,30,81,082 8,30,81,082

ii) Electricity Duty etc 3,43,85,046 3,43,85,046

iii) Income-tax 3,69,051 44,74,986

iv) Excise duty 7,61,00,610 -

v) Service tax 16,10,484 -

vi) Others 2,43,555 2,43,555

e) Guarantees worth Rs.7,35,24,888/- (Rs.7,63,45,600/-) executed by Banks on behalf of the company are secured by counter guarantees given to them by the company and its Managing Director and Executive director in their individual capacities.

4) Balances appearing under Trade receivables, Trade payables and Loans and advances as per the books of the company are subject to confirmation. The adjustments, if any, on confirmation/ reconciliation of such accounts will be made in the said year.

In the opinion of Board of Directors, the current assets, loans and advances have a value on realisation in the ordinary course of business atleast equal to the amount at which these are stated.

5) Treatment of off-season expenditure

As followed consistently, the company deferred the expenditure incurred during off-season on Plant maintenance, Staff cost incurred on off-season and related employees aggregating to Rs.4,86,51,528/- for its absorption to the ensuing crushing season.

6) Cash flow statement - Enclosed

7) Segment reporting - enclosed

8) From the financial year 2011-12, the revised Schedule VI notified under the Companies Act, 1956 is applicable to the company for preparation and presentation of financial statements. The adoption of revised Schedule - VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified and rearranged the previous year figures in accordance with the requirements of revised schedule VI.

9) The company extended its securities offered to the ICICI bank in respect of loans availed by it to the loans sanctioned by the bank to the cane growers.

10) General:

Paise have been rounded off.

Figures for the previous year have been regrouped wherever necessary.


Mar 31, 2011

1. Out of the Subscribed and Paid up Capital of 45,34,528 Equity shares, 45,452 shares were allotted as fully paid up pursuant to a contract without payment being received in cash, and 9,05,286 shares were allotted as fully paid up by way of Bonus shares by capitalisation of reserves.

2. Under the provisions of the Orissa Land Reforms Act, 1960, the Revenue Officer has declared the agricultural lands owned by company to an extent of Acres 488.76 as surplus under sec.44(1) of the said Act. No provision is made in the accounts for the probable loss in this matter, pending final legal decision in the appeal preferred by the company against the said declaration.

3. CONTINGENT LIABILITIES

a) No provision has been made in the Accounts towards demands raised on the company's Ferromanganese unit at Rayagada by the ORISSA STATE ELECTRICITY BOARD as the said demands are pending in dispute before the Grievance Redresal Forum constituted under the Indian Electricity Act, inrespect of the following periods.

1979-80 to 1983-84 Rs.10,87,318

July'91 to Sep'91 Rs.71,90,737

In addition to the above, the Electricity Board also demanded Delayed payment surcharge on the above arrears, amounting to Rs.8,30,945/-which is also under dispute and hence not provided for. Of the said amount, an amount of Rs.50,93,079/- is paid under protest and grouped under Loans and advances.

b) The company has received demands from the Orissa State Sales tax department for Rs.2,00,21,670/- towards sales tax on some of its assets sold in the year ending 31st March, 1996. As per the contract, the above sales tax liability is to be borne by the buyer. Hence no provision is considered necessary in the books of the company for the said demand. As per the directions of the High Court, the buyer has paid a sum of Rs.50.00 lakhs under protest and the company(seller) was directed to pay under protest an additional sum of Rs.50 lakhs in instalments. Accordingly the company has so far paid a sum of Rs. 30 lakhs and the same is included under loans and advances.

c) Contracts remaining to be executed on capital account and not provided for Rs.658.55 lakhs (Rs. 1224.69 lakhs)

4. Guarantees worth Rs.7,63,45,600/- (Rs.7,82,52,245/-) executed by Banks on behalf of the company are secured by counter guarantees given to them by the company and its Managing Director and Executive director in their individual capacities.

5) Balances in various parties' accounts as per the books of the company are subject to confirmation by and reconciliation with the concerned parties. In the opinion of Board of Directors, the current assets, loans and advances have a value on realisation in the ordinary course of business atleast equal to the amount at which these are stated.

6. Details of Remuneration to Directors :

Note: a) In the absence of adequate profits u/s 349, only minimum remuneration has been paid to the Managing Director as per the terms of appointment and thereby no commission arises. Further in the absence of profit, no commission arises to non-whole time directors.

b) In view of delays in repayment of dues to banks during the financial year 2008-09, being the year prior to the date of appointment of executive director and in the absence of approval of Central government, remuneration has not been drawn during the financial year 2010-2011.

7. TURNOVER

Note: (1) Excise duty recovered and included in the above turnover - Rs.6,95,63,942/- (Rs.8,59,30,236/-)

(2) The above sales do not include the following internal divisional transfers.

(a) 38,463 MT (21,760 MT) of Molasses at the value of Rs.11,45,10,301/- (Rs.7,31,66,057) transferred to Distillery units at Chagallu and Jangareddigudem from V.V.S Sugars, Chagallu.

(b) 1,08,437 MT(81,098MT) of Bagassed at the value of Rs.8,13,27,750/- (Rs.6,08,23,500) transferred to Co-generation unit at Chagallu from VV S Sugars, Chagallu.

(c) Electricity - 80,19,760 (60,92,160) units at the value of Rs.2,55,73,592/- (Rs.1,98,60,442/-) Co-generation Division to VV S Sugars, Chagallu.

(d) 1,35,374 MTs (99,407 MTs) of Steam at the value of Rs.6,30,96,468/-(Rs.4,51,12,885/-) from Co-generation Division to VVS Sugars, Chagallu.

(e) 54,47,116 BL (1053729 BL) of Rectified Spirit issued for Ethanol manufacturing in Chagallu Distillery.

(3) The above does not include misappropriation of sugar stocks Mts. Nil (Pr. Year MT. 379) costing Rs.Nil (Pr. Year Rs.73,86,247/-) by some of the employees of the company.

8. CIF Value of materials imported during the year Rs.-NIL- (Rs. NIL)

9. There was no consumption of imported raw materials or components or spares during the year.

10. Disclosure pursuant to "AS-18" Related Party Disclosures:

III. Names of the related parties with whom there were transactions during the year:

1. Subsidiary Companies:

Jeypore Sugar Finance & investment Corpn Ltd

2. Companies controlled by key managerial personnel:

a) Krishna Industrial Corporation Limited

b) RS Industrial Corporation (P) Limited

c) VRK Grandsons Investment (P) Limited

d) Ramakrishna Machinery Corporation (P) Limited

3. Key managerial personnel

a) Smt.Rajeswary Ramakrishnan, Managing Director

b) Smt.Anita Prabhu, Executive Director

4. Relatives of key managrial personnel their relation

a) Sri.R.Prabhu, Son of Smt.Rajeswary Ramakrishnan

b) Dr.S.R.KPrasad, Son of Smt.Rajeswary Ramakrishnan

c) Sri Vikram Ramakrishna, Son of Smt.Anita Prabhu

d) Sri.Rajiv Rangaswamy, Grand Son of Smt.Rajeswary Ramakrishnan

e) Ms.S.Nandita, Grand Daughter of Smt.Rajeswary Ramakrishnan

11. The company has received an order from Andhra Pradesh Electricity Regulatory Commission fixing the purchase price of power sold to it by the company at Rs.2.74 per unit with effect from 01.04.04, and further revised to Rs.3.19 based on the variable cost, instead of Rs. 3.48 per unit fixed in the Power Purchase Agreement.

The Company contested the said order in the High Court of Andhra Pradesh along with the other members of South Indian Sugar Mills Association. The High Court issued an interim order asking A P Transco to pay 50% of the differential between the revised rate and the previous rate in force. The court further directed the company to approach the Central power appellate tribunal. On a petition .by the company, the said tribunal gave a verdict that the company should be paid Rs.3.48 per unit. The government has gone on appeal to the Supreme court against the said verdict of the Tribunal. Pending final orders of Supreme court the company has recognized as income only the revised rate of Rs.3.19 per unit and balance of Rs.47,75,338/- has not been recognised as income during the year.

12. Figures for the previous year have been regrouped wherever required.

13. Paise have been rounded off to the nearest rupee.

14. Figures in brackets indicate those for the previous year.


Mar 31, 2010

1. Out of the Subscribed and Paid up Capital of 45,34,528 Equity shares, 45,452 shares were allotted as fully paid up pursuant to a contract without payment being received in cash, and 9,05,286 shares were allotted as fully paid up by way of Bonus shares by capitalisation of reserves.

2. Under the provisions of the Orissa Land Reforms Act, 1960, the Revenue Officer has declared the agricultural lands owned by company to an extent of Acres 488.76 as surplus under sec.44(1) of the said Act. No provision is made in the accounts for the probable loss in this matter, pending final legal decision in the appeal preferred by the company against the said declaration.

3. CONTINGENT LIABILITIES

a) No provision has been made in the Accounts towards demands raised on the companys Ferromanganese unit at Rayagada by the ORISSA STATE ELECTRICITY BOARD as the said demands are pending in dispute before the Grievance Redresal Forum constituted under the Indian Electricity Act, inrespect of the following periods.

1979-80 to 1983-84 Rs. 10,87,318 July91 to Sep91 Rs. 71,90,737

In addition to the above, the Electricity Board also demanded Delayed payment surcharge on the above arrears, amounting to Rs.8,30,945/- which is also under dispute and hence not provided for.

b) The company has received demands from the Orissa State Sales tax department for Rs.2,00,21,670/- towards sales tax on some of its assets sold in the year ending 31 st March, 1996. As per the contract the above sales tax liability is to be borne by the buyer. Hence no provision is considered necessary in the books of the company for the said demand. As per the directions of the High Court, the buyer has paid a sum of Rs.50.00 lakhs under protest and the company(seller) was directed to pay under protest an additional sum of Rs.50 lakhs in instalments. Accordingly the company has so far paid a sum of Rs. 30 lakhs and the same is included under loans and advances.

c) Contracts remaining to be executed on capital account and not provided for Rs. 1224.69 lakhs (Rs. 1960.55 lakhs)

d) Claims against the company not acknowledged as debts towards:

The above amounts paid under protest pursuant to the orders of the Appellate Authorities have been included in Loans and Advances.

4. Guarantees worth Rs.7,82,52,245/- (Rs.2,22,69,416/-) executed by Banks on behalf of the company are secured by counter guarantees given to them by the company and its Chairman and the Managing Director in their individual capacities.

5. Balances with Scheduled Banks comprise Deposits:

6) Balances in various parties accounts as per the books of the company are subject to confirmation by and reconciliation with the concerned parties. In the opinion of Board of Directors, the current assets, loans and advances have a value on realisation in the ordinary course of business atleast equal to the amount at which these are stated.

a) Commission provided to the Managing Director and Executive director represents the balance amount of aggregate remuneration payable to them out of the total remuneration of 5% and 3% on the profits computed above in accordance with the terms of their appointments.

b) Commission to 7 non-whole time directors Rs.1,75,000 each aggregates to Rs.12,25,000/- not exceeding 1 % of profits computed above.

Note :(1) Excise duty recovered and included in the above turnover - Rs.8,59,30,236 /- (Rs.8,78,92,427/-)

(2) The above sales do not include the following internal divisional transfers.

(a) 21,760 MT (30639 MT) of Molasses at the value of Rs.7,31,66,057/- (Rs.6,62,65,498) transferred to Distillery units at Chagallu and Jangareddigudem from V.V.S Sugars, Chagallu.

(b) 81,098 MT(90,381MT) of Bagassee at the value of Rs.6,08,23,500/- (Rs.6,77,86,095) transferred to Co-generation unit at Chagallu from VV S Sugars, Chagallu.

(c) Electricity - 60,92,160 (76,43,180) units at the value of Rs.1,98,60,442/- (Rs.2,52,98,926/-)

Co-generation Division to VV S Sugars, Chagallu.

(d) 99,407 MTs (1,20,451 MTs) of Steam at the value of Rs.4,51,12,885/-(Rs.5,67,95,928/-) from Co-generation Division to VVS Sugars, Chagallu.

(e) 10,53,729 BL (14,29,500 BL) of rectified spirit issued for Ethanol manufacturing in Chagallu

Distillery.

(f) 72,033 BL (95,089 BL) of Rum ageing spirit issued for blending at Rayagada Distillery Unit.

(3) The above does not include misappropriation of sugar stocks 379 MT. costing Rs.73,86,247/-.by some of the employees of the company.

6. CIF Value of capital goods imported during the yearRs.-NIL- (Rs. NIL)

7. There was no consumption of imported raw materials or components or spares during the year.

19. Major components of deferred tax assets and liabilities arising on account of timing differences as at the date of Balance Sheet.

IV. Names of the related parties with whom there were transactions during the year:

1. Subsidiary Company:

Jeypore Sugar Finance & Investment Corpn Ltd

2. Companies controlled by key managerial personnel:

a) Krishna Industrial Corporation Ltd

b) R.S Industrial Corporation (P) Ltd

c) V.R.K. Grandsons Investment (P) Ltd

d) Ramakrishna Machinery Corporation (P) Ltd

3. Key managerial personnel

a) Smt.Rajeswary Ramakrishnan, Managing Director

b) Smt.Anita Prabhu, Executive Director

4. Relatives of key managrial personnel their relation

a) Sri.R.Prabhu, Son of SmtRajeswary Ramakrishnan

b) Dr.S.R.KPrasad, Son of Smt.Rajeswary Ramakrishnan

c) Sri.Vikram Ramakrishna, Grand Son of Smt.Rajeswary Ramakrishnan

d) Sri.Rajiv Rangaswamy, Grand Son of Smt.Rajeswary Ramakrishnan e)Ms.S.Nandita, Grand Daughter of Smt.Rajeswary Ramakrishnan

8. The company has received an order from Andhra Pradesh Electricity Regulatory Commission fixing the purchase price of power sold to it by the company at Rs.2.74 per unit with effect from 01.04.04, and further revised to Rs.3.15 based on the variable cost, instead of Rs. 3.48 per unit fixed in the Power Purchase Agreement.

The Company contested the said order in the High Court of Andhra Pradesh along with the other members of South Indian Sugar Mills Association. The High Court issued an interim order asking A P Transco to pay 50% of the differential between the revised rate and the previous rate in force. The court further directed the company to approach the Central power appellate tribunal. On a petition by the company, the said tribunal gave a verdict that the company should be paid Rs.3.48 per unit. The government has gone on appeal to the Supreme court against the said verdict of the Tribunal. Pending final orders of Supreme court the company has recognized as income only the revised rate of Rs.3.15 per unit and balance of Rs.38,65,428 has not been recognised as income during the year.

9. Figures for the previous year have been regrouped wherever required.

10. Paise have been rounded off to the nearest rupee.

11. Figures in brackets indicate those for the previous year.


Mar 31, 2000

1. Out of the Subscribed and Paid up Capital of 25,34,528 Equity Shares, 45,452 shares were allotted as fully paid up pursuant to a contract without payment being received in cash, and 9,05,286 shares were allotted as fully paid up by way of Bonus Shares, by capitalisation of reserves.

2. Under the provisions of the Orissa Land Reforms Act, 1960, the Revenue Officer has declared the agricultural lands owned by the Company to an extent of Acres 679.52 as surplus under Sec. 44 (1) of the said Act. The book value of the said land as on the date of the Balance Sheet is Rs.2,04,744/-as against the compensation amount receivable of Rs.48,000/- under the provisions of the said Act. No provision is made in the accounts for the probable loss in this matter, pending final legal decision in the appeal preferred by the Company against the said declaration.

3. CONTINGENT LIABILITIES

a) No provision has been made in the accounts towards income tax and interest demanded by Income Tax Department for the assessment years 1985-86 and 1986-87 amounting to Rs.6,70,982/- and Rs.4,60,955/- respectively pending final decision in the appeals preferred by the Company. Against the said demands, amounts paid under protest/adjusted by the Income tax Department amounting to Rs.6,70,982/- and Rs.2,98,301/- respectively, have been shown under "Loans and Advances".

b) No provision has been made in the Accounts towards demands raised on the Companys Ferro Manganese unit at Rayagada by the Orissa State Electricity Board as the said demands are pending in dispute before the Orissa High Court, in respect of the following periods.

Rs. 1979-80 to 1983-84 = 10,87,318

July91 to Sept91 = 71,90,737

In addition to the above, the Electricity Board also demanded Delayed Payment Surcharge on the above arrears, amounting to Rs.8,30,945/- which is also under dispute and hence not provided for.

c) Loans & Advances include claims of Rs. 1,54,60,168 which though disputed by the debtor is fully recoverable in the opinion of the directors.

d) No provision has been made in the accounts for Agricultural Market Cess demanded by the Government of Andhra Pradesh, on sugar cane purchased by the Company aggregating to Rs. 2,56,09,058/-for the following periods 1994-95 - Rs. 39,48,708

1995-96 - Rs. 54,84,296

1996-97 - Rs. 55,80,071

1997-98 - Rs. 49,11,882

1998-99 - Rs. 56,84,101

High Court of A.P. has upheld the collection of market cess by Govt, of A.P. The company has filed an appeal against this order, before the Supreme Court of India. Pending its decision in the appeal filed before it by the company, the Supreme Court has ordered that cess should not be collected from sugar factories in respect of the disputed periods, if they have not already paid the same.

e) The Company has received demands from the Orissa State Sales tax department for Rs. 2,00,21,670/- towards sales tax on some of its assets sold in the year ending 31st March, 1996. As per the contract the above salestax liability is to be borne by the buyer. Hence no provision is considered necessary in the accounts of the Company for the said demand. The Company has disputed the said demand before appropriate authority. An amount of Rs. 50 lakhs has been paid under protest against this demand by the buyer, as per the orders of the High Court of Orissa.

f) No provision has been made in the accounts for an amount of Rs. 11,91,036/- being the demand from the Excise Department treating the sale of 36092 Qtls. of levy sugar to Govt of India as free sugar during the year ended 31.3.98. However the company has paid Rs.11,91,036/- which is shown in "Loans and Advances". The Company has made a claim on the Government of India, Ministry of Food for recovery of this amount. If the claim is accepted, this provision will not be required in the companys accounts.

4. Guarantees worth Rs. 74,05,318/- executed by Banks on behalf of the company are secured by counter guarantees given to them by the company and its Chairman and the Managing Director in their personal capacities and are collaterally secured partly by a third charge by companys immovable properties which constitutes the security for item 4(b) under Secured loans and partly by pledge of Fixed Deposit receipts with Banks.

5. In accordance with the revised guidance note on accounting for Excise duty issued by ICAI effective from 1 -4-99, the company has valued closing stock of finished goods including excise duty thereon. The said excise duty is accordingly charged to Profit & Loss Account. In the immediately preceeding year the excise duty on uncleared closing stock of finished goods was not taken into account, in valuing stock. The change in this accounting policy has no effect on the profit for the year.

6. Consequent to AS-2 "Valuation of Inventories" becoming mandatory in respect of financial years commencing on or after 1.4.99, the company has adopted the basis of computation of its Finished goods in confirmity with the said Accounting Standard. There was no material change in the method of valuation of stocks of finished goods during the year.

Until the immediate previous year, it was the policy of the company, to value Work in process Raw materials, Spares, Stores and components etc., at cost. In line with AS-2, the company has modified its accounting policy as defined in the relevant paragraph in the Statement on Accounting Policies. There was no effect on the profit for the year on account of such change.

7. Balances in various parties accounts as per the books of the company are subject to confirmation by and reconciliation with the concerned parties.In the opinion of Board of Directors, the current assets, loans and advances have a value on realisation in the ordinary course of business atleast equal to the amount at which these are stated.

8. There are no imports of goods or materials during the year.

9. There was no Consumption of imported Raw materials or components or spares during the year.

10. There were no earnings in foreign exchange, during the year of account.

11. The company has successfully made all its Computer hardware and Software applications Y2K Compliant

12. Figures for the previous year have been regrouped wherever required.

13. Paise have been rounded off.

14. Figures in brackets indicate those for the previous year.