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Notes to Accounts of KCP Sugar & Industries Corporation Ltd.

Mar 31, 2015

1. Contingent liabilities:

Contingent Liabilities:

Claims against the company not acknowledged as debts:

31.03.2015 31.03.2014 PARTICULARS Amount - Rs.

Share transmission 11,05,851 11,05,851

Labour cases 30,26,987 29,50,596

Case on Duty relating to Captive Power Generation 2,61,69,375 2,61,69,375

TOTAL 3,03,02,213 3,02,25,822

Outstanding Guarantees furnished by banks on behalf of the company is Rs.3,13,30,438/- (Rs. 1,38,99,438/-)

2. Outstanding dues to Micro, Small and Medium Enterprises

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the Act have not been given.

Provident fund:

The Company manages Provident fund plan through a Provident Fund Trust for its employees, which is permitted under The Employees Provident Fund and Miscellaneous Provisions Act, 1952. The plan envisages contribution by the employer and employees and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer & employee, together with interest, are payable at the time of separation from service or retirement, whichever is earlier. The benefit under this plan vests immediately on rendering of service.

The Guidance Note on implementing AS-15, Employee Benefits(revised 2005) issued by the Accounting Standard Board (ASB) states that provident fund set up by employers, which require interest shortfall to be met by the employer, need to be treated as defined benefit plan. Pending the issuance of the Guidance Note from the Acturial Society of India, the Company's actuary has expressed inability to reliably measure the Provident fund liability. However, there is no deficit in the fund in this regard.

3. The Govt. of India, with a view to improve the liquidity position of sugar factories for enabling them to clear cane price arrears of previous sugar seasons if any, and timely settlement of cane price of 2013-14 sugar season relating to the Fair and Remunerative Price (FRP) fixed by the Govt. of India to the sugarcane farmers, notified a scheme namely 'Scheme for Extending Financial Assistance to Sugar Undertaking , 2014 ' vide notification No. 20-90/2013-SP- II dt. 03-01-2014.

In this respect, The Govt. of India has directed the lending commercial banks, to consider providing financial assistance to their sugar mills based on the eligibility criteria with a loan duration of 5 years including 2 years of moratorium. The interest on the said loan will be reimbursed by the Govt. of India up to 12% per annum according to the scheme.

The company has availed the said loan to the tune of Rs.28,68,00,000/- (Refer Note No.4, Long term Borrowings- Secured Loan) based on the eligibility criteria from bank in the month of March & April 2014 for clearing the cane price (FRP) of sugar season 2013-14. The interest paid on this loan to the tune of Rs.3,49,86,498/- has been classified under Note No.19.(a) 'Short term loans and advances - Advances to Suppliers and Service providers as the same is due for reimbursement from Govt. of India.

4. Purchase tax is payable at Rs.60/- per MT on the sugarcane purchased. In this respect, the Govt. of Andhra Pradesh is used to notify the said levy for every sugar season separately. Considering the financial hardships faced by the sugarcane farmers, the Govt. of Andhra Pradesh has been directing the sugar mills to pay the said tax to the sugarcane suppliers as an 'incentive 'instead of paying the same to the Govt. of Andhra Pradesh in the recent years. Contrary to this practice, the notification No.GO RT No.68 dt.07-03-2015 Issued for sugar season 2014-2015 directed the sugar mills to remit such tax to the Government except in the case of Cooperative sugar mills. Aggrieved by the said notification, the private sugar mills represented to the Govt. of Andhra Pradesh through South Indian Sugar Mills Association (SISMA) for reconsideration and extending the facility of paying such tax as 'incentive' to their sugar cane suppliers. The Company is of the firm belief that this representation will be considered favorably and hence, the purchase tax payable on the sugar cane purchased for 2014-15 sugar season up to 31st March 2015 to the tune of Rs.6,39,91,451/- has been classified under Note No.10(e) " Other Current Liabilities :- Statutory Liabilities".

5. The depreciation on various assets, recomputed in accordance with Part 'C ' of Schedule II of The Companies Act 2013. Hence, the transitional effect on account of such re-computation, to the extent of Rs.3,90,58,105/- has been adjusted against the opening General Reserve as on 1st April, 2014. (Refer Note No.12)

6. Under Section 135 of The Companies Act, 2013 the company is required to spend Rs.84,87,070/- during the year under review towards Corporate Social Responsibility (CSR) activities as framed by the Company in its Corporate Social Responsibility program. However, the Company could spend only Rs.15,00,000/- under the head 'Environmental sustainability', due to the financial downtrend faced by the sugar industries on account of supply far exceeding the demand and consequential fall in sugar prices to un-remunerative levels.

7. General :

Sundry debtors, creditors and loans and advances are subject to confirmation. Paise have been rounded off.

Figures in brackets indicate those for the previous year.

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


Mar 31, 2014

1. Contingent liabilities and Capital Commitments: Contingent Liabilities:

Claims against the company not acknowledged as debts:

31.03.2014 31.03.2013 PARTICULARS Amout in Rs.

Share transmission 1105851 1105851

Case on Duty relating to Captive Power Generation 26169375 26169375

TOTAL 27275226 27275226

Outstanding Guarantees furnished by banks on behalf of the company is Rs.1,38,99,438/- (Rs. 1,30,99,478/-)

2. Outstanding dues to Micro, Small and Medium Enterprises

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the Act have not been given.

Provident fund:

The Company manages Provident fund plan through a Provident Fund Trust for its employees, which is permitted under The Employees Provident Fund and Miscellaneous Provisions Act, 1952. The plan envisages contribution by the employer and employees and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer & employee, together with interest, are payable at the time of separation from service or retirement, whichever is earlier. The benefit under this plan vests immediately on rendering of service.

The Guidance Note on implementing AS-15, Employee Benefits(revised 2005) issued by the Accounting Standard Board (ASB) states that provident fund set up by employers, which require interest shortfall to be met by the employer, need to be treated as defined benefit plan. Pending the issuance of the Guidance Note from the Acturial Society of India, the Company''s actuary has expressed inability to reliably measure the Provident fund liability. However, there is no deficit in the fund in this regard.

3. Related Party Disclosures:

1 Amt. In Rs.

(AS REQUIRED UNDER PARAGRAPHS 23 AND 26 OF ACCOUNTING STANDARD 18)

(A). Names of related parties and description of relationship:

1.Subsidiaries :

a) The Eimco-K.CP.Ltd., Chennai, India.

b) KCP Sugars Agricultural Research Farms Ltd. Chennai, India.

2.Key Management Personnel :

a) Shri. Vinod R. Sethi, Executive Chairman

b) Smt. Irmgard Velagapudi M Rao, Managing Director.

c) Smt.V. Kiran Rao, Executive Director.

4. General :

Sundry debtors, creditors and loans and advances are subject to confirmation. Paise have been rounded off.Figures in brackets indicate those for the previous year. Figures for the previous year have been regrouped, wherever necessary.

Note: Company does not own or operate any Business outside India.

Carrying Amounts of Geographical Assets and additions to tangible and intagible fixed assets:


Mar 31, 2013

1. Contingent liabilities and Capital Commitments: Contingent Liabilities:

Claims against the company not acknowledged as debts:

Particulars 31.03.2013 31.03.2012

Labour Cases 5617626 5232242

Share transmission 1105851 1105851

Case on Duty relating to Captive Power Generation 26169375 26169375

TOTAL 32892852 32507468

Outstanding Guarantees furnished by banks on behalf of the company is Rs.13099478/- (Rs. 5099438/-)

2. Outstanding dues to Micro, Small and Medium Enterprises

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the Act have not been given.

3. RELATED PARTY DISCLOSURES:

(AS REQUIRED UNDER PARAGRAPHS 23 AND 26 OF ACCOUNTING STANDARD 18)

(A) Names of related parties and description of relationship:

1. Subsidiaries a) The Eimco-K.C.PLtd., Chennai, India.

b) KCP Sugars Agricultural Research Farms Ltd. Chennai, India.

2. Key Management Personnel a) Shri. Vinod R. Sethi, Executive Chairman

b) Smt. Irmgard Velagapudi M Rao, Managing Director.

c) Smt.V. Kiran Rao, Executive Director.

4. General :

Sundry debtors, creditors and loans and advances are subject to confi rmation. Paise have been rounded off. Figures in brackets indicate those for the previous year. Figures for the previous year have been regrouped, wherever necessary.


Mar 31, 2012

1. Contingent liabilities and Capital Commitments: Contingent Liabilities:

Claims against the company not acknowledged as debts:

Particulars 31.03.2012 31.03.2011

Labour Cases 5232242 4847218

Share transmission 1105851 -

Case on Duty relating to Captive Power Generation 26169375 26169375

Total 32507468 31016593

Outstanding Guarantees furnished by banks on behalf of the company is Rs.5099438/- (Rs. 5049438/-)

2. Outstanding dues to Micro Small and Medium Enterprises

The Company has not received any intimation from suppliers regarding their status under the Micro Small and Medium Enterprises Development Act 2006 and hence disclosures if any relating to amounts unpaid as at the year end together with interest paid / payable as required under the Act have not been given.

3. RELATED PARTY DISCLOSURES:

(As Required under paragraphs 23 and 26 of Accounting Standard 18)

(A) Names of related parties and description of relationship:

1. Subsidiaries a) The Eimco-K.C.P.Ltd. Chennai India.

b) KCP Sugars Agricultural Research Farms Ltd. Chennai India.

2. Key Management Personnel a) Shri. Vinod R. Sethi Executive Chairman

b) Smt. Irmgard Velagapudi M Rao Managing Director.

c) Smt.V. Kiran Rao Executive Director.

4. SEGMENT REPORTING

(I) The Company has identified the reportable segments as on 31-03-2012 and others taking into account the nature of products and services the different risks and returns and the internal reporting systems. The accounting policies for segment reporting are in line with the accounting policies followed by the Company.

5. General :

Sundry debtorscreditors and loans and advances are subject to confi -rmation. Paise have been rounded off. Figures in brackets indicate those for the previous year. Figures for the previous year have been regrouped wherever necessary.


Mar 31, 2011

1. Contingent liabilities and Capital Commitments:

i) Claims against the company not acknowledged as debts:

31.03.2011 31.03.2010

Particulars Amount - Rs.

Labour Cases 48,47,218 44,62,194

Central Excise Cases NIL 1,91,12,314

Case on Duty relating to Captive Power Generation 2,61,69,375 2,61,69,375

TOTAL 3,10,16,593 4,97,43,883

ii) Outstanding Guarantees furnished by banks on behalf of the company is Rs.50,49,438/- (P.Y Rs. 53,49,438/-)

2. Cash and Bank Balances include:

i) Rs.1,00,000/- (P.Y Rs. 2,81,243/-) on account of staff security deposits.

ii) Rs.5,05,000/- (P.Y Rs. 8,83,362/-) representing Fixed Deposit receipts lodged with bankers as margin money against guarantees issued by them.

iii) Rs.1,54,08,000/- (P.Y Rs. 68,19,000/-) in Fixed Deposit in accordance with the Companies (Acceptance of deposits) Rules 1975.

iv) Rs.1,31,41,994/- (P.Y Rs. 1,12,14,339/-) towards unclaimed dividends in accordance with Section 205 of the Companies Act.

3. "Unsecured Loans" - include:

Fixed Deposits of Rs. 3,00,00,000/- (P.Y Rs. 3,00,00,000/-) received from a Whole-time Director of the Company.

4. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the Act have not been given.

Provident Fund:

The Company manages Provident fund plan through a Provident Fund Trust for its employees, which is permitted under The Employees Provident Fund and Miscellaneous Provisions Act, 1952. The plan envisages contribution by the employer and employees and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer & employee, together with interest, are payable at the time of separation from service or retirement, whichever is earlier. The benefit under this plan vests immediately on rendering of service.

The Guidance Note on implementing AS-15, Employee Benefits(revised 2005) issued by the Accounting Standard Board (ASB) states that provident fund set up by employers, which require interest shortfall to be met by the employer, need to be treated as defined benefit plan. Pending the issuance of the Guidance Note from the Acturial Society of India, the Company's actuary has expressed inability to reliably measure the Provident fund liability. However, there is no deficit in the fund in this regard.

5. General :

Sundry debtors, creditors and loans and advances are subject to confirmation Paise have been rounded off.

Figures in brackets indicate those for the previous year.

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

I. THE EIMCO-KCP LIMITED:

1. The above Company is a wholly owned subsidiary of 'K.C.P.Sugar and Industries Corporation Limited', in which the Company holds the entire 6,00,000 shares of Rs.10/- each fully paid up (including 10 shares held by its Nominees).

II. KCP SUGARS AGRICULTURAL RESEARCH FARMS LIMITED:

1. The above Company is a wholly owned subsidiary of 'K.C.P.Sugar and Industries Corporation Limited', in which the Company holds the entire 22,50,000 shares (P:Y:22,50,000) of Rs.10/- each fully paid up (including 6 shares held by its Nominees) as on 31st March 2011.

3. KCP Sugars Agricultural Research Farms Limited has not proposed any dividend for the year ended 31.03.2011.

4. No part of the above profits or reserves have been dealt with in the Company's Accounts.

 
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