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Notes to Accounts of Kothari Sugars & Chemicals Ltd.

Mar 31, 2015

1 CORPORATE INFORMATION

Kothari Sugars and Chemicals Limited (referred to as "KSCL" or the "Company") are the Manufacturers of Sugar, Alcohol and Power generating having units at Kattur and Sathamangalam, Tamilnadu.

Parvathi Trading & Finance Co.Pvt.Ltd.owns 70.20% of the Company's equity share capital and hence its holding Company.

2 Term Loan from banks

Term Loan from Indian Bank Rs.1,249.96 lacs (P.Y. Rs.1464.28 lacs) of which Rs.1,035.64 lacs under long term borrowings and Rs.214.32 lacs under current maturity. Secured by exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam Sugar & Cogeneration Unit. Balance installments 70. Rate of Interest 11.70% p.a. Amount of monthly installment Rs.17.86 lacs.

Term Loan from Indian Bank 93.72 lacs (P.Y. Rs.125.28 lacs) of which Rs. 62.16 lacs under long term borrowings and Rs.31.56 lacs under current maturity. Secured by exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam Sugar & Cogeneration Unit. Balance installments 36. Rate of Interest 11.45% p.a. Amount of monthly installment Rs.2.63 lacs.

Interest Free Term Loan from Indian Bank Rs.2,815.87 lacs (P.Y. Rs.2,815.87 lacs) under Scheme for Extending Financial Assistance to Sugar units 2014. Repayment in 5 years with 2 year moratorium. Secured by exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam Sugar & Cogeneration Unit.

3 Term Loan Sugar Development Fund

Rs.1,283.10 lacs (P.Y. Rs.1,283.10 Lacs) of which Rs.1026.48 lacs under long term borrowings and Rs.256.62 lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties except book debts of the Company situated at Kattur,Tamil Nadu. Annual repayment in 5 equal annual installments starting from September 2015 to September 2019. Rate of Interest 4% p.a. Amount of each installment Rs.256.62 lacs. Balance installments 5.

Rs.1,026.48 lacs (P.Y. Rs.1,283.10 Lacs) of which Rs.769.86 lacs under long term borrowings and Rs.256.62 lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties except book debts of the Company situated at Kattur,Tamil Nadu. Annual repayment in 5 equal annual installments starting from December 2014 to December 2018. Rate of Interest 4% p.a. Amount of each installment Rs.256.62 lacs. Balance installments 4.

Rs.1,032.14 lacs (P.Y. Rs.1,376.19 lacs) of which Rs.688.09 lacs under long term borrowings and Rs.344.05 lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties except book debts of the Company situated at Kattur Unit, Tamil Nadu. Repayment in 10 equal half yearly installment starting from September 2013 to March 2018 Rate of Interest 4% p.a. Amount of each installment Rs.172.02 lacs. Balance installments 6.

Rs.87.60 lacs (P.Y. 116.80 lacs) of which Rs.58.40 lacs under long term borrowing and Rs.29.20 lacs under current maturity secured by bank Guarantee Repayment in 4 Annual Equal installments starting from April 2014 to April 2017. Balance installments 3. Rate of Interest 4% p.a. Amount of each installment Rs.29.20 lacs.

Rs.204.59 lacs (P.Y. Rs.272.79 lacs) of which Rs.136.39 lacs under long term borrowing and Rs.68.20 lacs under current maturity. Repayment 4 equal Annual installments starting from February 2015 to February 2018. Secured by Bank Guarantee. Balance installments 3. Rate of Interest 4% p.a. Amount of each installment Rs.68.20 lacs.

Rs.182.61 lacs (P.Y. Rs.182.61 lacs) of which Rs.159.78 lacs under long term borrowing and Rs.22.83 lacs under current maturity. Repayment 4 equal Annual installments starting from February 2016 to February 2019. Secured by Bank Guarantee.Balance 8 half yearly installments. Rate of Interest 6.75% p.a. Amount of each installment Rs.22.83 lacs.

Rs.297 lacs (P.Y Rs. Nil) of which Rs.297 lacs under long term borrowing and Rs. Nil under current maturity. Repayment 8 equal Annual installments starting from June 2017 to December 2020. Secured by Paripassu first charge on land, Buildings and Plant and Machinery and all movable properties (present and future ) of the Sathamangalam Sugar & Cogeneration Unit. Balance 8 half yearly installments. Rate of Interest 7% p.a. Amount of each installment Rs.37.12 lacs.

Rs.243 lacs (P.Y. Rs. Nil) of which Rs.243 lacs under long term borrowing and Rs. Nil under current maturity. Repayment 8 equal Annual installments starting from January 2018 to July 2021. Secured by Paripassu first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam Sugar & Cogeneration Unit. Balance 8 half yearly installments. Rate of Interest 7% p.a. Amount of each installment Rs.30.38 lacs.

4 Term Loan From Holding Company (Parvathi Trading & Finance Co.Pvt.Ltd.)

Rs.821.20 lacs (P.Y. Rs.821.20 lacs). Secured by Hypothecation of Movable properties including plant and machinery and Inventories situated at Kattur unit,Tamil Nadu. Payable in June 2029. Rate of Interest - Nil. No.of installment 1.

term loan From others(Ekansha Enterprises pvt.ltd.) (unsecured)

Rs.623.15 lacs (P.Y. Rs.623.15 lacs) payable in June 2029. Rate of Interest - Nil. No. installment 1.



5 Contingent Liabilities: - Rs. in lakhs

2014-15 2013-14

a) Claims not acknowledged by the Compa

Sales Tax - -

Customs 73.39 73.39

Central excise 679.96 662.70

Tangedco (Electricity) 438.19

Generation Tax 525.39

Tariff revision 227.86 284.11

Electricity tax (Third party sale) 860.92 753.12

Uraban Land tax 44.38 42.33

Others - 1.87

Total 2,411.89 2,255.71

In respect of above matters, future cash outflows in respect of contingent liabilities are determinable only on receipt of judgments pending at various forums / authorities.

South Indian Sugar Mills Association (SISMA), Tamilnadu has filed a writ petition in the High Court of Madras on behalf of all the private sector sugar mills in the State challenging the power of the State Government to fix the State Advisory Price (SAP).

Since the Hon'ble Supreme Court has held in 2004 that SAP in only recommendatory in nature in Tamilnadu. Therefore, the Company does not foresee any adverse impact on the financial position.

6 Notes Relating to Segment

i) Business Segments

The Company has considered business segments as the primary segments for disclosure. The business segments are:

Sugar, Power generation and Distillery.

Sugar segment comprises of sugar and molasses, Power segment includes generation of power from bagasse and coal and Distillery segment reflects the manufacture of Extra neutral and denatured alcohol.

The above segments have been identified taking into account the organization structure as well as the differing risks and returns of these segments

ii) Geographical Segments

The geographical segment considered for disclosure is India and Rest of the world. All the manufacturing facilities and sales offices are located in India. Sales to the rest of the world are also serviced by Indian sales offices.

Geographical revenues are segmented based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognized

iii) Segmental assets includes all operating assets used by respective segment and consists principally of operating cash, debtors, inventories and fixed assets net of allowances and provisions. Segmental liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities.

Refer Separate workings on Segment results - Annexure - I at page No. 72

7 Related party Disclosures:

Refer separate workings on Related Party Transactions - Annexure - II at Page No. 73

8 Rental Income

A sum of Rs.25.51 lakhs (Previous Year Rs.25.83 lakhs) has been considered as rental Income from property.

9 operating Lease

a) A sum of Rs.23.89 lakhs (Previous Year Rs.46.42 lakhs) has been debited to Rent account, being the rent paid on premises which has been taken on lease.

10 Liability no longer required shown in note 22 under the head "Other Income" includes a sum of Rs.391.80 lakhs towards provision made for additional cane cost at Pandavapura, Karnataka and Rs.37.92 lakhs as wages arrears which are no longer a liability to the Company.

11 The Company has changed the method of providing depreciation from 01st April 2014 as required by the Companies Act, 2013. Depreciation is hence provided in accordance with Schedule II for the current year as against the rates specified in Schedule XIV to the Companies Act, 1956 adopted in the previous year. As a result depreciation in the current year is lower by Rs.16.29 lakhs.

Further in respect of assets whose remaining useful life as prescribed in Schedule II to Companies Act,2013 is nil at their carrying amounts as on 01st April 2014 after retaining the residual value aggregating to Rs.148.39 lakhs (excluding deferred tax of Rs.48.14 lakhs) has been charged to Statement of Profit and Loss and included under the item "Depreciation and amortization expenses".

12 Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2014

Note 1

CORPORATE INFORMATION

Kothari Sugars and Chemicals Limited (referred to as "KSCL Ltd" or the "Company") are the Manufacturers of Sugar, Alcohol and Co-generation of power having units at Kattur and Sathamangalam, Tamilnadu.

As of March 31,2014, Parvathi Trading & Finance Co.Pvt. Ltd. owns 70.20% of the Company''s equity share capital and Kothari Sugars and Chemicals Limited is its only subsidiary.

Term Loan from banks

Term Loan from Indian Bank Rs.1,464.28 lacs (P.Y. Rs.1,500 lacs) of which Rs.1,249.96 lacs under long term borrowings and Rs.214.32 lacs under current maturity. Secured by Exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam sugar & cogeneration Unit. Balance installments 82. Rate of Interest 11.70% p.a. Amount of each installment Rs.17.86 lacs.

Term Loan from Indian Bank Rs.125.28 lacs (P.Y. Rs.148.82 lacs) of which Rs.93.72 lacs under long term borrowings and Rs.31.56 lacs under current maturity. Secured by Exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam sugar & cogeneration Unit. Balance installments 48. Rate of Interest 11.45% p.a. Amount of each installment Rs.2.63 lacs.

Interest Free Term Loan from Indian Bank Rs.2,815.87 lacs (P.Y. Rs.Nil) under Scheme for Extending Financial Assistance to Sugar units 2014. Repayment in 5 years with 2 year moratorium. Secured by exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam sugar & cogeneration Unit.

Term Loan Sugar Development Fund

Rs.1,283.10 Lacs (P.Y. Rs.1,283.10 Lacs) of which Rs.1,026.48 lacs under long term borrowings and Rs.256.62 lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties situated at Kattur,Tamil Nadu except book debts of the Company. Annual repayment in 5 equal annual installments starting from December 2014 to December 2018. Rate of Interest 4% p.a. Amount of each installment Rs.256.62 lacs. Balance installments 5.

Rs.1,283.10 Lacs (P.Y. Rs.1,283.10 Lacs) Secured by exclusive second charge on all Movable and Immovable Properties situated at Kattur, Tamil Nadu except book debts of the Company. Annual repayment in 5 equal annual installments starting from September 2015 to September 2019. Rate of Interest 4% p.a. Amount of each installment Rs.256.62 lacs. Balance installments 5.

Rs.1,376.19 Lacs( P.Y. Rs.1,720.24 lacs) of which Rs.1,032.14 lacs under long term borrowings and Rs.344.05 under current maturity secured by exclusive second charge on all Movable and Immovable Properties situated at Kattur Unit, Tamil Nadu except book debts of the Company. Repayment in 10 equal half yearly installment starting from September 2013 to March 2018 Rate of Interest 4% p.a. Amount of each installment Rs.172.02 lacs. Balance installments 8.

Rs.168 lacs (P.Y. Rs.504 lacs) of which Rs.168 Lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties situated at Kattur, Tamil Nadu except book debts of the Company. Repayment in 10 half yearly installments starting from March 2010 to September 2014. Balance Installment 1. Rate of Interest 4% p.a. Amount of each installment Rs.168 lacs.

Rs.336 lacs (P.Y. Rs.672 lacs) of which Rs.336 lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties situated at Kattur,Tamil Nadu except book debts of the Company. Repayment in 10 half yearly installments starting from September 2010 to March 2015. Balance Installment 2. Rate of Interest 4% p.a. Amount of each installment Rs.168 lacs.

Rs.33.11 lacs (P.Y. Rs.66.22 lacs) of which Rs.33.11 lacs under current maturity secured by bank Guarantee. Repayment in 4 equal annual installments from August 2011 to August 2014. Balance installments 1. Rate of Interest - 4 % Amount of each installment Rs.33.11 lacs.

Rs.116.80 lacs (P.Y. Rs.116.80 lacs) of which Rs.87.60 lacs under long term borrowing and Rs.29.20 lacs under current maturity secured by bank Guarantee Repayment in 4 annual equal installments starting from April 2014 to April 2017. Balance installments 4. Rate of Interest 4% p.a. Amount of each installment Rs.29.20 lacs.

Rs.272.79 lacs (P.Y. Rs.272.79 lacs) of which Rs.204.59 lacs under long term borrowing and Rs.68.20 lacs under current maturity. Repayment 4 equal Annual installments starting from February 2015 to February 2018. Secured by Bank Guarantee. Balance installments 4 . Rate of Interest 4% p.a. Amount of each installment Rs.68.20 lacs.

Rs.182.61 lacs (P.Y. Rs.182.61 lacs) Repayment 4 equal Annual installments starting from February 2016 to February 2019. Secured by Bank Guarantee.Balance 8 half yearly installments. Rate of Interest 6.75% p.a. Amount of each installment Rs.22.83 lacs.

Term Loan From Holding Company

Rs.821.20 lacs (P.Y. Rs.821.20 lacs ).Secured by Hypothecation of Movable properties including plant and machinery and Inventories situated at Kattur unit,Tamil Nadu. Payable in June 2029. Rate of Interest - Nil. No.of installments 1.

Rs.29.33 lacs (P.Y. Rs.146.64 lacs) of which Rs.29.33 lacs under current maturity secured by hypothecation of movable properties including plant and machinery and Inventories situated at Kattur unit, Tamil Nadu Payable in 28 equal quarterly installments Balance Installments 1. Rate of Interest - Nil Amount of each installment Rs.29.33 lacs.

Term Loan From others (unsecured)

Rs.623.15 lacs (P.Y. Rs.623.15 lacs) payable in June 2029. Rate of Interest - Nil. No.installments 1

Rs.22.26 lacs (P.Y. Rs.111.28 lacs) of which Rs.22.26 lacs under current maturity. Repayment in 28 equal quarterly installments. Balance installments 1. Rate of Interest Nil. Amount of final installment Rs.22.26 lacs.

The Company has not received information from vendors regarding their status under Micro, Small and Medium Enterprises Act 2006. The disclosures relating to amounts unpaid as at the year end together with interest payable / paid under this act could not be given.

b) Gratuity

Liability to existing employees of the Company in respect of gratuity is covered under a common insurance policy administered by a trust maintained for the participating enterprises viz. Kothari Sugars and Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL).

The actuarially valued liabilities under the Projected Unit Credit Method for the employees of the participating enterprise of the trust are calculated enterprise wise. The investments available with the underwriter are adjusted in proportion to the liability and the shortfall is provided for in the books of the participating enterprise. Consequently, the actuarial loss / gain if any relating to the other participating enterprise is also borne by every other participatory enterprise.

2. Contingent Liabilities: -

i) Excise duty demands under appeal Rs.662.70 Lakhs (Previous year Rs.614.46 Lakhs)

ii) Estimated amount of contracts remaining to be executed on capital account is Rs.1.87 lakhs (Previous year Rs.215.79 lakhs)

iii) Urban Land Tax under appeal Rs.42.33 Lakhs (Previous year Rs.40.28 Lakhs)

iv) Customs duty under appeal Rs.73.39 Lakhs (Previous year Rs.73.39 Lakhs )

v) Electricity Generation Tax Rs.1191.31 Lakhs (Previous year Rs.1086 Lakhs)

vi) Electricity Tariff revision Rs.284.11 Lakhs (Previous year Rs. Nil)

3. Notes Relating to Segment

i) Business segments

The Company has considered business segments as the primary segments for disclosure. The business segments are:

Sugar, Power generation and Distillery.

Sugar segment comprises of sugar and molasses, Power segment comprise generation of power from bagasse and coal and Distillery segment comprises of rectified spirit and denatured spirit.

The above segments have been identified taking into account the organization structure as well as the differing risks and returns of these segments

ii) Geographical Segments

The geographical segment considered for disclosure is India and Rest of the world. All the manufacturing facilities and sales offices are located in India. Sales to the rest of the world are also serviced by Indian sales offices.

Geographical revenues are segmented based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognized .

iii) Segmental assets includes all operating assets used by respective segment and consists principally of operating cash, debtors, inventories and fixed assets net of allowances and provisions. Segmental liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities.

Refer Separate workings on Segment Results - Annexure - I at Page No. 43

4. Related Party Disclosures:

Refer separate workings on Related party Transactions - Annexure - ii at page No. 44

5. Rental Income

A sum of Rs.25.83 lakhs (Previous Year Rs.23.98 lakhs) has been considered as rental Income from property.

6. operating Lease

a) A sum of Rs.46.42 lakhs (Previous Year Rs.64.96 lakhs) has been debited to Rent account, being the rent paid on premises which has been taken on operating lease.

7. Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2013

CORPORATE INFORMATION

Kothari Sugars and Chemicals Limited (referred to as "KSCL" or the "Company") are the Manufacturers of Sugar, Alcohol and Co-generation of power having units at Kattur and Sathamangalam, Tamilnadu.

1. Employee Benefits:

The following table sets forth the status of the unavailed earned leave and Gratuity plan of the Company and the amounts recognized in the Balance sheet and Profit and loss Account:

2. contingent liabilities: -

(i) Excise duty demands under appeal Rs.614.46 Lacs (P.Y Rs.545.12 Lacs)

(ii) Estimated amount of contracts remaining to be executed on capital account is Rs.215.79 Lacs (P.Y. Nil)

(iii) Urban Land Tax under appeal Rs.40.28 Lacs (P.Y. Rs.37.23 Lacs)

(iv) Customs duty under appeal Rs.73.39 Lacs (P.Y. Rs.73.39 Lacs )

(v) Electricity Generation Tax Rs.1,086 Lacs (P.Y. Rs.225.59 Lacs)

3. notes Relating to segment

(i) Business Segments

The Company has considered business segments as the primary segments for disclosure. The business segments are:

Sugar, Power generation and Distillery.

Sugar segment comprises of sugar and molasses, Power segment comprise generation of power from bagasse and coal, Distillery segment comprises of rectified spirit and denatured spirit.

The above segments have been identified taking into account the organization structure as well as the differing risks and returns of these segments V J

(ii) geographical segments

The geographical segment considered for disclosure is India and Rest of the world. All the manufacturing facilities and sales offices are located in India. Sales to the rest of the world are also serviced by Indian sales offices.

Geographical revenues are segmented based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognized .

(iii) Segmental assets includes all operating assets used by respective segment and consists principally of operating cash, debtors, inventories and fxed assets net of allowances and provisions. Segmental liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities.

Refer separate workings on segment Results - Annexure - i at page no.43

4. Related party disclosures:

Refer Separate workings on Related party Transactions – Annexure – II at Page No.44

5. Rental income

A sum of Rs.23.98 lacs (P.Y Rs.22.47 lacs) has been considered as rental Income from property.

6. operating lease

a) A sum of Rs.64.96 lacs (P.Y. Rs.47.49 lacs) has been debited to Rent account, being the rent paid on premises which has been taken on operating lease.

b) Maximum Lease payments in respect of vehicle purchased under hire purchase is as under:

7. Previous year fgures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2012

Term Loan from Banks

Term Loan from Indian Bank Nil (P.Y. Rs. 1333.62 lacs) and Rs. 524.14 lacs under current maturity. Secured by Exclusive first charge on land, Buildings and Plant and Machinery and all movable properties (present and future) of the Sathamangalam Sugar & Cogeneration Unit, Tamil Nadu. Balance installment is 3. Rate of Interest 12% p.a. Amount of each instalment is Rs. 202 lacs.

Term Loan from Sugar Development Fund

i) Rs. 2,566.20 Lacs (P.Y. Rs. 2,566.20 Lacs) Secured by exclusive second charge on all Movable and Immovable Properties situated at Kattur,Tamil Nadu, except book debts of the Company. Annual repayment in 5 equal annual installments starting from December 2014 to September 2019. Rate of Interest 4% p.a. Amount of each installment Rs. 513.24 lacs. Balance installments is 5.

ii) Rs. 1,720.24 Lacs( P.Y. Rs. 1,720.24 lacs) Secured by exclusive second charge on all Movable and Immovable Properties situated at Kattur Unit, Tamil Nadu, except book debts of the Company. Repayment in 5 equal annual installments starting from July 2019 to July 2023 Rate of Interest 4% p.a. Amount of each installment Rs. 344.05 lacs. Balance installments is 5.

iii) Rs. 840 lacs (P.Y. Rs. 1,176 lacs) of which Rs. 504 Lacs under long term borrowings and Rs. 336 lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties situated at Kattur,Tamil Nadu, except book debts of the Company. Repayment in 10 half yearly installments starting from March 2010 to September 2014. Balance Installments is 5. Rate of Interest 4% p.a. Amount of each installment Rs. 168 lacs.

iv) Rs. 1,008 lacs (P.Y. Rs. 1344 lacs) of which Rs. 672 Lacs under long term borrowings and Rs. 336 lacs under current maturity secured by exclusive second charge on all Movable and Immovable Properties situate at Kattur, Tamil Nadu, except book debts of the Company. Repayment in 10 half yearly equal installments starting from September 2010 to March 2015. Balance installments is 6. Rate of Interest 4% p.a. Amount of each installment Rs. 168 lacs.

v) Rs. 73.20 lacs under current maturities of long term debt (P.Y. Rs. 146.40 Lacs) Secured by bank Guarantee. Repayment in 8 equal half yearly installments from May 2009 to November 2012. Balance installments is 2. Rate of Interest-4 % p.a. Amount of each installment Rs. 36.60 lacs.

vi) Rs 99.34 lacs (P.Y. Rs. 132.45 lacs) of which Rs. 66.34 Lacs under long term borrowings and Rs. 33 lacs under current maturity secured by bank Guarantee. Repayment in 4 equal annual installments from August 2011 to August 2014. Balance installments is 3. Rate of Interest-4 % p.a. Amount of each installment Rs. 33.11 lacs.

vii) Rs. 116.80 (P.Y. Nil) Secured by bank Guarantee Repayment in 4 Annual Equal Installments starting from April 2014 to April 2017. Balance installments is 4. Rate of Interest - 4% p.a. Amount of each installment Rs. 29.20 lacs.

viii) Rs. 103.61 lacs (P.Y. Rs. 172.69 lacs) of which Rs. 34.54 Lacs under long term borrowings and Rs. 69.07 lacs under current maturity secured by bank Guarantee. Repayment in 8 half yearly installments starting from January 2010 to July 2013. Balance installments is 3. Rate of Interest-4% p.a. Amount of each installment Rs. 34.54 lacs

ix) Rs. 80 lacs (P.Y. Rs. 120 lacs) of which Rs. 40 Lacs under long term borrowings and Rs. 40 lacs under current maturity. Repayment in 4 equal annual Installments starting from October 2010 to October 2013. Balance installments is 2. Rate of Interest-4% p.a. Amount of each installment Rs. 40 lacs.

x) Rs. 272.79 lacs (P.Y. year Rs. Nil) Repayment 4 equal Annual Installments starting from February 2015 to February 2018. Balance installments is 4. Rate of Interest-4% p.a. Amount of each installment Rs. 68.20 lacs.

Term Loan from Holding Company

i) Rs. 821.20 lacs (P.Y. Rs. 821.20 lacs). Secured by Hypothecation of Movable properties and Inventories situated at Kattur unit, Tamil Nadu. Payable in June 2029. Rate of Interest - Nil.

ii) Rs. 263.96 lacs (P.Y. Rs. 381.26 lacs) of which Rs. 146.64 Lacs under long term borrowings and Rs. 117.32 lacs under current maturity secured by hypothecation of movable properties and Inventories situated at Kattur unit, Tamil Nadu Payable in 28 equal quarterly installments Balance Installments is 9. Rate of Interest is Nil. Amount of each installment Rs. 29.33 lacs.

Term Loan from Others (Unsecured)

i) Rs. 623.15 lacs (P.Y. Rs. 623.15 lacs) payable in June 2029. Rate of Interest is Nil.

ii) Rs. 200.30 lacs (P.Y. Rs. 289.31 lacs) of which Rs. 111.28 Lacs under long term borrowings and Rs. 89.02 lacs under current maturity. Repayment in 4 equal quarterly installments. Balances installments is 9. Rate of Interest is Nil. Amount of each installment Rs. 22.26 lacs.

1. Employee Benefits:

Liability to existing employees of the Company in respect of gratuity is covered under a common insurance policy administered by a trust maintained for the participating enterprises viz. Kothari Sugars and Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL).

The actuarially valued liabilities under the Projected Unit Credit Method for the employees of the participating enterprise of the trust are calculated enterprise wise. The investments available with the underwriter are adjusted in proportion to the liability and the shortfall is provided for in the books of the participating enterprise. Consequently, the actuarial loss/gain if any relating to the other participating enterprise is also borne by every other participatory enterprise.

The following table sets forth the status of the un-availed earned leave and Gratuity plan of the Company and the amounts recognized in the Balance sheet and Statement of Profit and loss.

2. Contingent Liabilities:-

(a) Excise duty demands under appeal Rs. 545.12 Lakhs (P.Y. Rs. 613.59 Lakhs).

(b) Estimated amount of Contracts remaining to be executed on Capital Account and not provided for Rs. Nil (P.Y. Rs. 2.02 Lakhs)

(c) Urban Land Tax under appeal Rs. 37.23 Lakhs (P.Y. Rs. 36.18 Lakhs.)

(d) Customs Duty under appeal Rs. 73.39 Lakhs (P.Y. Rs. 73.39 Lakhs. )

(e) Electricity Generation Tax Rs. 225.59 Lakhs

(f) Bank Guarantees Rs. 1,610.05 lakhs (P.Y. Rs. 2,437.24 lakhs)

3. Notes Relating to Segment

i) Business Segments

The Company has considered business segments as the primary segments for disclosure. The business segments are:

Sugar, Power generation and Distillery.

Sugar segment comprise Sugar and Molasses, Power segment comprise generation of power from Bagasse and Coal and Distillery segment comprises of rectified spirit and denatured spirit.

The above segments have been identified taking into account the organization structure as well as the differing risks and returns of these segments

ii) Geographical Segments

The geographical segment considered for disclosure is India and Rest of the world. All the manufacturing facilities and sales offices are located in India. Sales to the rest of the world are also serviced by Indian sales offices.

Geographical revenues are segmented based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognized.

iii) Segmental assets includes all operating assets used by respective segment and consists principally of operating cash, debtors, inventories and fixed assets net of allowances and provisions. Segmental liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities.

Refer Separate workings on Segment results-Annexure-I at Page No. 42

4. Related Party Disclosures

Refer Separate workings on Related party transactions-Annexure-II at Page No. 43

5. Consequent to the notification under the Companies Act, 1956, the financial statements for the year ended 31st March 2012 are prepared under revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification.


Mar 31, 2011

1. Debentures / Zero Coupon Bonds

Debentures / Zero Coupon Bonds are secured by the first charge on all movable and immovable properties except book debts of the Company situated in the State of Gujarat and Tamilnadu and Fixed Assets situated at Kattur

2. Term Loans

(a) Loan from Sugar Development Fund (Government of India) for modernization / expansion / Cogeneration amounting to Rs.7,377.98 lacs (Previous year Rs. 6,512.02 lacs) of which Rs.6,806.44 is secured by an exclusive second charge on all movable and immovable properties except book debts of the Company situated at Kattur,Tamilnadu and Rs.571.54 Lacs is secured by guarantee from Indian Bank.

(b) Loan from Indian Bank of Rs.4,341.51 lacs (previous Rs. 4,970.50 lacs) consists of the following:.

i. Loan for modernisation / expansion / Cogeneration amounting to Rs. 1,333.62 Lacs (Previous year Rs. 2,035.66 lacs) is secured by exclusive first charge on the whole of the Land, Buildings and Plant and Machinery and all movable properties (present & future) of the Sathamangalam Sugar & Cogeneration unit.

ii. Medium Term Loan (Central Excise) of Rs. 984.52 lacs (Previous year Rs. 2,384.08 lacs) is secured by exclusive first charge on the whole of the Land, Buildings and Plant and Machinery and all movable properties (present & future) of the Sathamangalam Sugar & Cogeneration unit.

iii. Open Cash Credit of Rs.2023.37 lacs (Previous year Rs. 550.76) is secured by exclusive first charge on the whole of the Land, Buildings and Plant and Machinery and all movable properties (present & future) of the Sathamangalam Sugar & Cogeneration unit.

(c) Loan from Holding Company is secured on the hypothecation of movable properties including movable Plant and Machinery and inventories situated at Kattur unit.

(d) Unsecured Loans except Irrigation loan are Interest free.

3. Capital Redemption Reserve:

A Sum of Rs.100 lacs (Previous Year Rs.207.71 lacs) has been appropriated towards the above reserve on redemption of Preference Shares as per AAIFR order dated 17-06-2004.

4. Employee Benefits:

Liability to existing employees of the Company in respect of gratuity is covered under a common insurance policy administered by a trust maintained for the participating enterprises viz. Kothari Sugars and Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL)

The actuarially valued liability under the Projected Unit Credit Method for the employees of the participating enterprise of the trust is calculated enterprise wise. The investments available with the underwriter are adjusted in proportion to the liability and the shortfall is provided for in the books of the participating enterprise. Consequently, the acturial loss / gain if any relating to the other participating enterprise is also borne by every other participatory enterprise.

The following table sets forth the status of the unavailed earned leave and Gratuity plan of the Company and the amounts recognized in the Balance sheet and Profit and loss Account:

5. Contingent Liabilities: -

(a) The hike in the basic minimum price of sugarcane for the sugar year 2002-03 after fixation of statutory minimum price notified by the Central Government on 9th January 2003 has been legally challenged by the South Indian Sugar Mills Association (of which the company is a member), and the matter is subjudice. Based on legal advice, pending disposal of the case no provision has been considered for the same in the books. The amount is not quantifiable at this stage.

(b) Excise duty demands under appeal Rs 613.59 Lacs (Rs.193.99 Lacs).

(c) Estimated amount of Contracts remaining to be executed on Capital Account & not provided for, amount to Rs.2.02 Lacs (Rs.24.79 Lacs).

(d) Urban Land Tax under appeal Rs. 36.18 Lacs.(previous year Rs.34.13 Lacs).

(e) Customs Duty under appeal Rs.73.39 Lacs. ( Rs.73.39 Lacs).

(f) Other Contingent Liabilities:

(Rs.in Lakhs)

Contingent Liability 31-03-2011 31-3-2010

Guarantees to banks on behalf of Subsidiary Nil 600.00

Bank Guarantees/ Letter of 2437.24 1055.55 credit

(a) Notes Relating to Segment

(i) Business Segments

The company has considered business segments as the primary segments for disclosure. The business segments are:

Sugar, Power generation and Distillery.

Sugar segment comprises of sugar and molasses, Power segment comprise generation of power from bagasse and coal and Distillery segment comprises of rectified spirit and denatured spirit.

The above segments have been identified taking into account the organisation structure as well as the differing risks and returns of these segments

(ii) Geographical Segments

The geographical segment considered for disclosure is India and Rest of the world. All the manufacturing facilities and sales offices are located in India. Sales to the rest of the world are also serviced by Indian sales offices.

Geographical revenues are segmented based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognised.

(iii) Segmental assets includes all operating assets used by respective segment and consists principally of operating cash, debtors, inventories and fixed assets net of allowances and provisions. Segmental liabilities include all operat- ing liabilities and consist primarily of creditors and accrued liabilities.

6. (a) Related Party Disclosures:

As per Accounting Standard - 18 (AS-18) Issued by the Institute of Chartered Accountants of India, the Company's related parties are disclosed below

Sl. Description of Name of Related Party No. Related Party

1. Holding Company Parvathi Trading & Finance Co Pvt. Limited

2. Key Management Personnel Mr.B.H.Kothari

3. Subsidiary Company Kothari International Trading Limited

4. Entities having significant influence (i) Kothatari Bio-Tech Limited

(ii) Kothatari Safe Deposit Limited (iii) Kothari Petrochemicals Limited (iv) Century Foods Pvt. Limited

7. A sum of Rs.556.88 Lacs was paid to DRAT, Mumbai for discharging its liability towards the Corporate Guarantee given to the Oman International Bank in respect of advances given to the its wholly owned Subsidiary (Kothari International Trading Limited) by the bank. This sum has been debited to the profit and loss account.

8. Previous year figures have been regrouped and rearranged wherever necessary to Confirm to the classificaion for the year


Mar 31, 2010

1. Debentures / Zero Coupon Bonds

Debentures / Zero Coupon Bonds are secured by the first charge on all movable and immovable properties except book debts of the Company situated in the State of Gujarat and Tamilnadu and Fixed Assets situated at Kattur.

2. Term Loans

(a) Loan from Sugar Development Fund (Government of India) for modernization / expansion / Cogeneration amounting to Rs.6512.02 lacs (Previous year Rs. 6627.75 lacs) of which Rs.5758.20 is secured by an exclusive second charge on all movable and immovable properties except book debts of the Company situated at Kattur, Tamilnadu and Rs.753.82 Lacs is secured by guarantee from Indian Bank.

(b) Loan from Indian Bank of Rs. 4970.50 lacs (previous Rs. 4753.54 lacs) consists of the following.

1. Loan for modernisation/expansion/Cogeneration amounting to Rs. 2035.66 Lacs (Previous year Rs. 2038.60 lacs) is secured by exclusive first charge on the whole of the Land, Buildings and Plant and Machinery and all movable properties (present & future) of the Sathamangalam Sugar & Cogeneration unit.

2. Medium Term Loan (Central Excise) of Rs. 2384.08 lacs (Previous year Rs. 2714.94 lacs) is secured by exclusive first charge on the whole of the Land, Buildings and Plant and Machinery and all movable properties (present & future) of the Sathamangalam Sugar & Cogeneration unit.

3. Short term loan Indian Bank of Rs.550.76 lacs (Previous year Rs. Nil) is secured by exclusive first charge on the whole of the Land, Buildings and Plant and Machinery and all movable properties (present & future) of the Sathamangalam Sugar & Cogeneration unit.

(c) Loan from Holding Company is secured on the hypothecation of movable properties including movable Plant and Machinery and inventories situated at Kattur unit.

(d) Unsecured Loans except Agriculture and Irrigation loan are Interest free.

3. Capital Redemption Reserve:

A Sum of Rs. 207.71 lacs (Previous Year Rs. 9.17 lacs) has been appropriated towards the above reserve on redemption of Preference Shares as per AAIFR order dated 17-06-2004.

4. Employee Benefits:

Liability to existing employees of the company in respect of gratuity is covered under a common insurance policy in favour of Kothari Sugars & Chemicals Gratuity Trust. The cumulative liability of the employees is actuarially valued by the trust under projected unit credit method. Investments available for policy and contribution being effected are adequate to cover the liability of the employees.

The following table sets forth the status of the unavailed earned leave and Gratuity plan of the Company and the amounts recognized in the Balance sheet and Profit and loss Account:

5. Contingent Liabilities: -

(a) The hike in the basic minimum price of sugarcane for the sugar year 2002-03 after fixation of statutory minimum price notified by the Central Government on 9th January 2003 has been legally challenged by the South Indian Sugar Mills Association (of which the company is a member), and the matter is subjudice. Based on legal advice, pending disposal of the case no provision has been considered for the same in the books. The amount is not quantifiable at this stage.

(b) Excise duty demands under appeal Rs 193.99 Lacs (Rs. 275.52 Lacs).

(c) Income Tax demands under appeal Rs.Nil ( Rs. 178.64 Lacs)

(d) Claims against the company not acknowledged as debt amount to Rs Nil (Rs. 1.98 Lacs)

(e) Estimated amount of Contracts remaining to be executed on Capital Account & not provided for, amount to Rs.24.79 Lacs (Rs.28.51 Lacs).

(f) Urban Land Tax under appeal Rs. 34.13 Lacs.(previous year Rs.32.08 Lacs).

(g) Customs Duty under appeal Rs.73.39 Lacs. ( Rs.73.39 Lacs).

(h) Other Contingent Liabilities:

Rs. in Lacs



Contigent Liability 31-03-2010 31-3-2009

Guarantees to banks on behalf of ther companies 600.00 600.00

Bank Guarantees/ Letter of credit 1055.55 846.20

Corporate Guarantees to banks on behalf of farmers Nil 634.00

6. The company has not received information from vendors regarding their status under Micro small and medium enterprises Act 2006, the disclosures relating to amounts unpaid as at the year end together with interest payable/paid under this Act have not been given.

7. Other income includes liabilities / provisions no longer required written back during the year Rs.Nil (Previous year Rs.102.81 lacs)

8. (a) Segment Disclosure

(a) Notes Relating to Segment

(i) Business Segments

The company has considered business segments as the primary segments for disclosure. The business segments are : Sugar, Power and Distillery.

Sugar segment comprises of Sugar and Molasses, Power segment comprise generation of power from bagasse and coal and Distillery segment comprises of rectified spirit and denatured spirit.

The above segments have been identified taking into account the organisation structure as well as the differing risks and returns of these segments

(ii) Geographical Segments

The geographical segment considered for disclosure is India and Rest of the world. All the manufacturing facilities and sales offices are located in India. Sales to the rest of the world are also serviced by Indian sales offices.

Geographical revenues are segmented based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognised.

Segmental assets includes all operating assets used by respective segment and consists principally of operating cash, debtors, inventories and fixed assets net of allowances and provisions. Segmental liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities.

9. (a) Related Party Disclosures:

As per Accounting Standard - 18 (AS-18) Issued by the Institute of Chartered Accountants of India, the Companys related parties are disclosed below:

10. Provision for Taxation:

Deferred Tax:

To comply with the Accounting Standard 22 accounting for taxes on income the Company estimates the deferred tax charge/(credit) using the substantially enacted tax rate applicable rate of taxation based on the impact of timing differences between financial statements and estimated taxable income for the current year.

11. Operating Lease:

The Company had entered into an agreement for Lease of Sugar Factory with an installed capacity of 3500 TCD for a period of seven years (Up to 31-03-2013) with "The Pandavapura Sahakari Sakkare Karhane Niyamit, a Co- operative society registered under the Karnataka Co-operative Societies Act,1959, with its registered office at Pandavapura RS, Pandavapura Taluk, Mandya Dist. The Company has surrendered the lease and necessary formalities have been completed and the effects of annulment of lease are reflected in the financial statements.

STATEMENT PURSUANT TO SECTION 212(1)(e) OF THE COMPANIES ACT, 1956 RELATING TO SUBSIDIARY COMPANIES

Holding Company : Kothari Sugars and Chemicals Limited

Subsidiary Companies : Kothari International Trading Limited (KITL)

Name of the Subsidiary Company KITL

1. Financial Year of the Subsidiary Company ended on 31.03.2010

2. Year from which they become Subsidiary Company 1996

3. Share of the Subsidiary Company (KITL) held by the holding company KSCL at the end of the Financial Year of Subsidiary Company :

a. Number of shares 999,950

b. Face Value of shares Rs.10/- c. Extent of Interest of holding company 99.99%

d. Quoted / Unquoted Unquoted

4. The net aggregate amount of profit and loss for the

subsidiary so far as its concerns members of the holding company.

a. Not dealt with holding Companys accounts

1. For the financial year ended 31.03.2010 (0.48)

2. For the previous Financial year of the Subsidiary Company (1.39)

since they became the holding Companys subsidiary.

b. Dealt within the holding Companys accounts

1. For the financial year ended 31.03.2010 Nil

2. For the previous Financial year of the Subsidiary Company Nil since they became the holding Companys subsidiary.

5. a. Holding Companys interest in Subsidiary as at end of the Not Applicable

Financial year of Holding Company.

b. Material changes in respect of Subsidiary

1. Fixed Assets No Change

2. Investments No Change

3. Moneys lent No Change

4. Moneys Borrowed No Change

12. Previous year figures have been regrouped and rearranged wherever necessary to confirm to the classification for the year.

 
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