Mar 31, 2016
1. SECURED LOANS
(i) Term Loan & Short term(Bridge) loan extended by State Bank of India is primarily secured by Pari-passu first charge on fixed assets of the Company and collaterally secured by second charge on the current assets of the company
(ii) SEFASU Term Loan extended by State Bank of India secured by Pari-passu first charge on fixed assets of the Company and collaterally secured by second charge on the current assets of the company
(iii) Sugar Development Fund(SDF) Loans for Cane Development & expansion is secured by a Bank Guarantee
(iv) Cash Credit facility extended by State Bank of India is secured by hypothecation of entire current assets of the company and further second charge on company''s fixed assets
The above loans extended by SDF & banks carry interest rates ranging from 6.75% p.a. to 10.25% p.a. The loans extended by banks are linked to their base rate
2. UNSECURED LOANS
(i) Loan extended by Yes Bank Ltd is unsecured in nature. It carries an interest rate of 10.25% p.a
(ii) As per the Government of Karnataka Notification No: CI/06/SPI/2010 dated 09.12.2011 Purchase Tax liability has been converted to Interest free Loan for the expanded capacity of 2500 to 4000 TCD
3. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) for the Financial
Year 2015-16 - Rs,NIL Lakhs (2015: Rs,NIL Lakhs).
$ Preference dividend includes dividend distribution tax
* during the year company has not given any Corporate guarantee to the Banks.
4. a) The Ministry of Corporate Affairs, Government of India has vide its Notification No GSR 225(E) dated March 31, 2009 has announced Companies Accounting Standards (Amendment) Rules 2009 prescribing changes to Accounting Standard 11 on ''The Effects of Changes in Foreign Exchange Rates'', till 31-03-2020.
The Company has, pursuant to the adoption of such principles of Companies (Accounting Standards) Amendment Rules 2009, exercised the option of recognizing the exchange differences arising on reporting of foreign currency monetary items at rates different from those at which they were recorded earlier, in the original cost of such depreciable fixed assets in so far such exchange differences arose on foreign currency monetary items relating to the acquisition of a depreciable asset as below: Exchange differences aggregating to '' Nil arising during the year ended March 31, 2016 (2015: '' NIL Lakhs) have been adjusted to the cost of the depreciable assets.
5. operating leases
i. The Company has entered in to a non cancellable operating lease agreement with Shri Dhanalaxmi Sahakari Sakkare Karkhane Niyamit, Ramdurg for the lease of sugar factory together with the specified assets on Built, Own, operate and Transfer basis (BOOT) for a period of 25 years till 2032. Lease rentals of Rs,841.23 Lakhs (2015: Rs,816.73 Lakhs) in respect of the obligation under such lease agreement have been recognized in the Statement of Profit and Loss Account.
Future obligations of lease rentals applicable to the above lease agreement aggregate to Rs,11,017.65 Lakhs (2015: Rs,11,858.88 Lakhs) and are due:
6. As per the information available with the Management, there are no suppliers falling under the Micro,Small and Medium Enterprise registered with the Company
7. (a) The following table sets forth the status of the Gratuity Plan of the Company and the amount recognized in the Balance Sheet and Statement of Profit and Loss Account.
Based on the above allocation and the prevailing yields on these assets, the long term estimate of the expected rate of return on fund assets has been arrived at. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching government bonds.
The estimates of future increase in compensation levels, considered in the actuarial valuation, have been taken on account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
As per the best estimates of the management, contribution of Rs,6.56 lakhs is expected to be paid to the plan during the year ending March 31, 2017.
(b) Provision made during the year for other long term employee benefits based on the actuarial valuation report amounted to Rs, Nil Lakhs (2015: Rs,0.74 Lakhs).
(c) During the period, the Company has recognized the following amounts in the Statement of Profit and Loss Account, which are included in ''Contribution to Provident and Other Funds''
As per the Resolution passed by the members in General Meeting held in July''15, the Managing Director is not entitled for any remuneration.
8. SEGMENT REPORTING
The Company has identified two business segments viz. Sugar and Power. Segments have been identified and reported taking into account
the nature of the products, the differing risks and returns, the organizational structure and internal business reporting system.
(a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on a reasonable basis have been disclosed as "Un-allocable"
(b) Segment Assets and Segment Liabilities represent assets and liabilities of respective segment. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on a reasonable basis have been disclosed as "Un-allocable"
(c) The Company generally accounts for inter segment sales/transfer as if the sales/transfers were to external parties at prevailing average market price on the date of transfer.
During the year under report, the Company has engaged in business only within India and not in any other country. The conditions prevailing in India being uniform, no separate geographical segment disclosure is considered necessary.
9. related party disclosures
(i) Names of the related parties and description of relationship Relationship Name of the Parties
Holding Company E.I.D. - Parry (India) Limited
Fellow Subsidiaries Coromandel International Ltd
Parry Chemicals Ltd
CFL Mauritius Limited
Coromandel Brasil Limitada-Partnership
Sabero Europe BV
Sabero Australia Pty Ltd
Sabero Organics America SA
Sabero Argentina SA
Coromandel Agronegocious de Merico SA De.CV
Parry America Inc
Parrys Investments Limited
Parrys Sugar Limited
Parry Infrastructure Company Private Limited
Parry Sugars Refinery India Pvt. Ltd
Parry Phytoremedies Private Limited
US Nutraceuticals Inc
Parry Agrochem Exports Limited
La Belle Botanics LLC (has becomes an Associates from April 2, 2015) Key Management Personnel Mr. V. Ramesh, Managing Director
Note: Managing Director of the Holding Company is also the Managing Director of the Company. As approved by Board, no Remuneration is payable by the Company
10. Previous year''s figures have been regrouped/reclassified to conform to current year''s classification
Mar 31, 2015
1. Contingent Liabilities not provided for on account of :
Rsin Lakhs
Particulars 2014-15 2013-14
a) Bank Guarantees 4,665.79 4,301.65
b) Corporate Guarantees given by the Company to
banks in respect of crop loans to farmers 22.42 1,768.32
and H & T loan
c) Arrears of fixed cumulative dividends of
Preference shares 145.01 0.77
d) Claims made by Government Departments against
the Company not acknowledged as debts:
Excise Duty/Service Tax under appeal 338.17 225.38
e) Preference Dividend attributable to Cumulative
Preference Shares 435.73 144.24
f) Sugar Cane Price payable (FY 2013-14) 495.73 -
2. a) The Ministry of Corporate Affairs, Government of India has vide
its Notification No GSR 225(E) dated March 31, 2009 has announced
Companies Accounting Standards (Amendment) Rules 2009 prescribing
changes to Accounting Standard 11 on 'The Effects of Changes in Foreign
Exchange Rates', till 31-03-2020.
The Company has, pursuant to the adoption of such principles of
Companies (Accounting Standards) Amendment Rules 2009, exercised the
option of recognising the exchange differences arising on reporting of
foreign currency monetary items at rates different from those at which
they were recorded earlier, in the original cost of such depreciable
fixed assets in so far such exchange differences arose on foreign
currency monetary items relating to the acquisition of a depreciable
asset as below: Exchange differences aggregating to Rs.NIL Lakhs
arising during the year ended March 31,2015 (2014: Rs1.77 Lakhs) have
been adjusted to the cost of the depreciable assets.
3. OPERATING LEASES
i. The Company has entered in to a non cancellable operating lease
agreement with Shri Dhanalaxmi Sahakari Sakkare Karkhane Niyamit,
Ramdurg for the lease of sugar factory together with the specified
assets on Built, Own, operate and Transfer basis (BOOT) for a period of
25 years. Lease rentals of Rs816.73 Lakhs (2014: Rs792.94 Lakhs) in
respect of the obligation under such lease agreement have been
recognized in the Statement of Profit and Loss.
Future obligations of lease rentals applicable to the above lease
agreement aggregate to Rs11,858.88 Lakhs (2014: Rs12,675.61 Lakhs) and
are due:
4. As per the information available with the Management, there are no
suppliers falling under the Micro, Small and Medium Enterprise
registered with the Company.
5. (a) The following table sets forth the status of the Gratuity Plan
of the Company and the amount recognized in the Balance Sheet and
Statement of Profit and Loss.
Based on the above allocation and the prevailing yields on these
assets, the long-term estimate of the expected rate of return on fund
assets has been arrived at. Assumed rate of return on assets is
expected to vary from year to year reflecting the returns on matching
government bonds.
The estimates of future increase in compensation levels, considered in
the actuarial valuation, have been taken on account of
inflation,seniority,promotion and other revelant factors such as supply
and demand in the employment market.
As per the best estimates of the management, contribution of Rs2.00
lakhs is expected to be paid to the plan during the year ending March
31,2016
(b) Provision made during the year for other long-term employee
benefits based on the actuarial valuation report amounted to Rs0.74
Lakhs (2014: Rs5.51 Lakhs).
(c) During the period, the Company has recognised the following amounts
in the Statement of Profit and Loss, which are included in
'Contribution to Provident and Other Funds.
6. SEGMENT REPORTING
The Company has identified two business segments viz. Sugar and Power.
Segments have been identified and reported taking into account the
nature of the products, the differing risks and returns, the
organizational structure and internal business reporting system.
(a) Revenue and expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
expenses which relate to enterprise as a whole and are not allocable to
a segment on a reasonable basis have been disclosed as "Un-allocable".
(b) Segment Assets and Segment Liabilities represent assets and
liabilities of respective segment. Investments, tax related assets and
other assets and liabilities that cannot be allocated to a segment on a
reasonable basis have been disclosed as "Un- allocable"
(c) The Company generally accounts for inter segment sales/transfer as
if the sales/transfers were to external parties at prevailing average
market price on the date of transfer.
During the year under report, the Company has engaged in business only
within India and not in any other country. The conditions prevailing in
India being uniform, no separate geographical segment disclosure is
considered necessary.
7. Previous year's figures have been regrouped/reclassified to conform
to Current year's classification.
Mar 31, 2013
1. seCureD Loans
(i) Term Loan & Short Term (Bridge) Loan extended by State Bank of
India is primarily secured by Pari-passu frst charge on fxed assets of
the Company and collaterally secured by second charge on the current
assets of the company.
(ii) Term Loan extended by ICICI Bank Ltd. is secured by Pari-passu
second charge on fxed assets of the company.
(iii) Sugar Development Fund (SDF) Loan for Cane development at the
Ramdurg Unit is secured by a Bank Guarantee.
(iv) Cash Credit facility extended by State Bank of India is secured by
way of hypothecation of entire current assets of the company and
further secured by second charge on companyÂs fxed assets.
(v) Specifc Loans pertaining to the Sankili & Haliyal Units and a
portion of the general purpose borrowings have been transferred to
E.I.D. Parry (India) Ltd. pursuant to the scheme of Arrangement
(Demerger) with efect from April 1, 2012. Refer to Note No. 37.
The above loans extended by SDF & banks carry interest rates ranging
from 4.00% p.a. to 12.60% p.a. The loans extended by banks are linked
to their Base Rate.
2. unseCureD Loans
(i) Loan extended by Indusind Bank Ltd. is unsecured in nature.
(ii) Loans extended by Holding Company, EID Parry (India) Ltd. are
unsecured in nature. These loans cannot be withdrawn during the tenancy
of the loans extended by SBI & ICICI Bank Ltd. and hence classifed as
Long Term Borrowings.
The above loans extended by EID Parry (India) Ltd. and bank carries
interest rates ranging from 8.75% p.a. to 11.75% p.a.
3. Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) of Rs.84.70 Lakhs (2012:
Rs.1,819.03 Lakhs).
4. ContInGent LIaBILItIes not proVIDeD for on aCCount of :
Rs. in Lakhs
particulars 2013 2012
a) Bank Guarantees 122.23 254.00
b) Corporate Guarantees given
by the Company to banks in
respect of crop loans to
farmers and H&T loan 2,344.85 4,599.07
c) Arrears of fxed cumulative
dividends of Preference shares 1.64
d) Claims made by Government Departments against the Company not
acknowledged as debts:
i. Excise/Service tax claims under appeal 225.38 309.04
ii. Sales tax & Commercial taxes appeal under various states 13.18
61.08
e) Preference Dividend attributable to Cumulative Preference Shares
0.77 568.31
5. a) The Ministry of Corporate Afairs, Government of India has vide
its Notifcation No. GSR 225(E) dated
March 31, 2009 has announced Companies Accounting Standards (Amendment)
Rules 2009 prescribing changes to Accounting Standard 11 on ÂThe Efects
of Changes in Foreign Exchange Rates extended till 31-03-2020.
The Company has, pursuant to the adoption of such principles of
Companies (Accounting Standards) Amendment Rules 2009, exercised the
option of recognising the exchange diferences arising on reporting of
foreign currency monetary items at rates diferent from those at which
they were recorded earlier, in the original cost of such depreciable
fxed assets in so far such exchange diferences arose on foreign
currency monetary items relating to the acquisition of a depreciable
asset.
Exchange diferences aggregating to Nil arising during the year ended
March 31, 2013 (2012: Nil) have been adjusted to the cost of the
depreciable assets.
6. operatInG Leases
i. The Company has entered in to a non-cancellable operating lease
agreement with Shri Dhanalakshmi Sahakari Sakkare Karkhane Niyamit,
Ramdurg for the lease of sugar factory together with the specifed
assets on Built, Own, operate and Transfer basis (BOOT) for a period of
25 years. Lease rentals of Rs. 769.85 Lakhs (2012: Rs. 560.57 Lakhs) in
respect of the obligation under such lease agreement have been
recognised in the Statement of Proft and Loss.
Future obligations of lease rentals applicable to the above lease
agreement aggregate to Rs.13,468.55 Lakhs (2012: Rs. 14,238.40 Lakhs) and
are due:
ii. The Company has certain operating leases for ofce facilities and
residential premises under a cancellable operating lease agreement.
Such agreements are generally with the option of renewal against
increased rent and premature termination of agreement. The charge on
account of lease rentals under such agreements to the Statement of
Proft and Loss for the year is Rs. 4.92 Lakhs (2012: Rs. 22.58 Lakhs).
7. There are no suppliers falling under the Micro, Small and Medium
Enterprise registered with the company.
Pursuant to the Scheme of Arrangement (Demerger) becoming efective, the
Gratuity as on 31.3.2013 has been Provided only for Ramdurg unit.
ÂBased on the above allocation and the prevailing yields on these
assets, the long term estimate of the expected rate of return on fund
assets has been arrived at. Assumed rate of return on assets is
expected to vary from year to year refecting the returns on matching
government bonds.
The estimates of future increase in compensation levels, considered in
the actuarial valuation, have been taken on account of infation,
seniority, promotion and other relevant factors such as supply and
demand in the employment market. As per the best estimate of the
management, contribution of Rs.2.00 lakhs is expected to be paid to the
plan during the year ending March 31, 2013.Â
(b) Provision made during the year for other long term employee benefts
based on the actuarial valuation report amounted to Nil (2012: Nil)
(c) During the period, the Company has recognised the following amounts
in the Statement of Proft and Loss, which are included in ÂContribution
to Provident and Other Funds
8. sCHeme of arranGement( DemerGer)
The Scheme of Arrangement (Demerger) between the Company and the
Holding Company, .E.I.D.-Parry (India) Ltd., (EID Parry) under Sections
391 to 394 of the Companies Act, 1956 for transfer and vesting of the
CompanyÂs manufacturing facilities located at Haliyal and Sankili, to
and into EID Parry, with appointed date of April 1, 2012 has been
approved by the order of the HonÂble High Court of Karnataka dated
February 1, 2013 and Order of the HonÂble High Court of Judicature,
Madras dated February 18, 2013. The Scheme as approved by the High
Courts, has become efective from March 18, 2013 pursuant to fling of
the orders of the HonÂble High Courts of Karnataka and Madras with the
Registrar of Companies, Bangalore and Registrar of Companies, Chennai,
respectively. The broad details of Assets and Liabilities transferred
and vested with EID Parry w.e.f. April 1, 2012 are as below:
9. Pursuant to the announcement of partial decontrol of Sugar
Industry on April 4, 2013, the Company does not
have any obligation to ear mark any part of production towards levy
stock from the sugar season 2012-13 onwards and hence the entire sugar
stock arising from production in the 2012-13 sugar season is valued at
Cost or NRV whichever is lower.
10. seGment reportInG
The Company has identifed two business segments viz. Sugar and Power.
Segments have been identifed and reported taking into account the
nature of the products, the difering risks and returns, the
organisational structure and internal business reporting system.
(a) Revenue and expenses have been identifed to a segment on the basis
of relationship to operating activities of the segment. Revenue and
expenses which relate to enterprise as a whole and are not allocable to
a segment on a reasonable basis have been disclosed as ÂUn-allocableÂ.
(b) Segment Assets and Segment Liabilities represent assets and
liabilities of respective segment. Investments, tax related assets and
other assets and liabilities that cannot be allocated to a segment on a
reasonable basis have been disclosed as ÂUn-allocableÂ.
(c) The Company generally accounts for inter segment sales/transfer as
if the sales/transfers were to external parties at prevailing average
market price on the date of transfer.
11. The Scheme of Arrangement (Demerger) involving the demerger of the
Sankili and Haliyal Units of the company into EID Parry (India) Ltd.
became efective from March 18, 2013 with April 1, 2012 as the Appointed
date.
Hence the fgures for the fnancial year ended March 31, 2013 relates to
the post demerged company and are therefore not comparable with that of
previous year.
12. Previous yearÂs fgures have been regrouped/reclassifed to conform
to Current yearÂs classifcation.
Mar 31, 2012
1. Secured Loans
(i) Term Loan & Short Term (Bridge) Loan extended by State Bank of
India is primarily secured by Pari-passu first charge on fixed Assets
of the Company and collaterally secured by second charge on the current
assets of the Company.
(ii) Term Loan extended by Axis Bank Ltd. is primarily secured by
Pari-passu first charge on fixed Assets of the Haliyal & Sankili Units.
(iii) Term Loan extended by ICICI Bank Ltd. is secured by Pari-passu
second charge on fixed Assets of the Company. The process of charge
creation in favour of ICICI Bank Ltd. is pending.
(iv) Loans extended by Sugar Development Fund, Government of India
(SDF) for Modernisation/Expansion/Cane Development at the Sankili Unit
is secured by Pari-passu first charge on movable & immovable properties
of Sankili Unit.
(v) Loans extended by SDF for Congeneration Project/Raw-sugar
processing/Cane development at the Haliyal Unit are secured by
Pari-passu first charge on the movable & immovable properties of
Haliyal Unit.
(vi) Loans extended by SDF for Cane development at the Ramdurg Unit is
secured by Bank Guarantee.
(vii) Short term Loan extended by Bank of India is secured by
Pari-passu first charge on fixed Assets of the Haliyal Unit.
(viii) Cash Credit facility extended by State Bank of India is secured
by way of hypothecation of entire current assets of the Company and
further secured by second charge on Company's fixed assets.
The above loans extended by SDF & Banks carry interest rates ranging
from 4.00% p.a. to 13.50% p.a. The loans extended by banks are linked
to their Base Rate.
2. Unsecured Loans
(i) Loan extended by L & T Finance Ltd. is unsecured in nature.
(ii) Loan extended by Dena Bank is unsecured in nature
(iii) Loan extended by Axis Bank Ltd. is unsecured in nature.
(iv) Loans extended by the Holding Company, EID Parry (India) Ltd. are
unsecured in nature.
These loans cannot be withdrawn during the tenancy of the loans
extended by SBI, Axis Bank Ltd. & ICICI Bank Ltd. and hence Classified
as Long Term Borrowings.
The above loans extended by EID Parry (India) Ltd. & Banks carries
interest rates ranging from 9.50% p.a. to 13.50% p.a. The loans
extended by banks are linked to their Base Rate.
3. Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) of Rs 1819.03 Lakhs
(2011: Rs 1,587.95 Lakhs).
4. Contingent Liabilities not provided for on account of :
Rs in Lakhs
Particulars 2012 2011
a) Bank Guarantees 254.00 247.42
b) Letter of Credit - -
c) Corporate Guarantees given by the
Company to banks in respect of crop 4599.07 1291.70
loans to farmers and H&T loan
d) Arrears of fixed cumulative dividends
of Preference shares 1.64 -
e) Claims made by Government Departments
against the Company not acknowledged as debts:
i. Excise claims under appeal 309.04 263.79
ii. Sales tax & Commercial taxes appeal
under various states 61.08 79.76
iii. Other claims - -
f) Preference Dividend attributable to
Cumulative Preference Shares 568.31 1.64
5. a) The Ministry of Corporate Affairs, Government of India has vide
its Notification No. GSR 225(E) dated March 31, 2009 has announced
Companies Accounting Standards (Amendment) Rules 2009 prescribing changes
to Accounting Standard 11 on 'The Effects of Changes in Foreign Exchange
Rates' extended till 31-03-2020.
The Company has, pursuant to the adoption of such principles of
Companies (Accounting Standards) Amendment Rules 2009, exercised the
option of recognizing the exchange differences arising on reporting of
foreign currency monetary items at rates different from those at which
they were recorded earlier, in the original cost of such depreciable
fixed assets in so far such exchange differences arose on foreign
currency monetary items relating to the acquisition of a depreciable
asset.
Exchange differences aggregating to Rs NIL arising during the year ended
March 31, 2012 (2011: Rs 0.54 Lakhs) have been adjusted to the cost of
the depreciable assets.
6. Operating Leases
i. The Company has entered in to a non-cancellable operating lease
agreement with Shri Dhanalakshmi Sahakari Sakkare Karkhane Niyamit,
Ramdurg for the lease of sugar factory together with the specified
assets on Built, Own, Operate and Transfer basis (BOOT) for a period of
25 years. Lease rentals of Rs 560.57 Lakhs (2011: Rs 912.51 Lakhs) in
respect of the obligation under such lease agreement have been
recognized in the Profit and Loss Account.
Future obligations of lease rentals applicable to the above lease
agreement aggregate to Rs14,238.40 Lakhs (2011: Rs 14,798.97 Lakhs) and
are due:
ii. The Company has certain operating leases for office facilities and
residential premises under a cancellable operating lease agreement.
Such agreements are generally with the option of renewal against
increased rent and premature termination of agreement. The charge on
account of lease rentals under such agreements to the Profit and Loss
Account for the year is Rs22.58 Lakhs (2011: Rs 57.41 Lakhs). The future
obligations of lease rentals applicable are as under:
7. There are no suppliers falling under the Micro, Small and Medium
Enterprise registered with the company.
8. With respect to receivables from Transmission Corporation of
Andhra Pradesh Limited (APTRANSCO) included under
Sundry Debtors:
a) Amounts aggregating to Rs777.78 Lakhs [2011:Rs 715.87 Lakhs] relate to
price difference matter in dispute where the Company has appealed
before the Apellate Tribunal for Electricity (ATE) against an order of
State Commission. As the matters are pending before the ATE, the
Company, as a matter of prudence, has postponed the recognition of such
amounts as income and a corresponding credit is retained as liability
in the books of account and adjusted against Sundry Debtors as at March
31, 2012.
b) Amounts aggregating to Rs526.06 Lakhs [2011: Rs 582.64 Lakhs] relate
to other matters in dispute where the Company has appealed before the
ATE against the orders of State Commission. As the matters are pending
before the ATE, no adjustment has been made in respect of such dues
recognised as receivable as at March 31, 2012.
Based on the above allocation and the prevailing yields on these
assets, the long term estimate of the expected rate of return on fund
assets has been arrived at. Assumed rate of return on assets is
expected to vary from year to year reflecting the returns on matching
government bonds.
The estimates of future increase in compensation levels, considered in
the actuarial valuation, have been taken on account of inflation,
seniority, promotion and other relevant factors such as supply and
demand in the employment market.
As per the best estimate of the management, contribution of Rs5.00 lakhs
is expected to be paid to the plan during the year ending March 31,
2013.
(b) Provision made during the year for other long term employee
benefits based on the actuarial valuation report amounted to RsNIL
(2011: Rs 41.54 Lakhs).
(c) During the period, the Company has recognised the following amounts
in the Profit and Loss Account, which are included in Contribution to
Provident and Other Funds.
8. The Closing Stock of Finished goods has been valued net of Excise
duty payable amounting to Rs659.83 Lakhs.
10. Segment Reporting
The Company has identified three business segments viz. Sugar, Power
and Distillery. Segments have been identified and reported taking into
account the nature of the products, the differing risks and returns,
the organizational structure and internal business reporting system.
(a) Revenue and expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
expenses which relate to enterprise as a whole and are not allocable to
a segment on a reasonable basis have been disclosed as"Un-allocable".
(b) Segment Assets and Segment Liabilities represent assets and
liabilities of respective segment. Investments, tax related assets and
other assets and liabilities that cannot be allocated to a segment on a
reasonable basis have been disclosed as "Un-allocable".
(c) The Company generally accounts for inter segment sales/transfer as
if the sales/transfers were to external parties at prevailing average
market price on the date of transfer.
11. Previous year's figures have been regrouped/reclassified to
conform to Current year's classification.
12. Previous financial year was for a period of fifteen months,
whereas 2011-12 is for a period of nine months and hence figures are
not comparable.
Jun 30, 2011
1. Secured Loans
(i) Rupee Term Loans from Banks, other than which are Specifically
mentioned hereinafter, are secured by second charge on all the fixed
assets of the respective divisions of the Company, both present and
future, ranking pari passu in terms of sanction.
(ii) Rupee Term Loans include Long Term Loan (LTL) of Rs 20,500 Lakhs
from Axis Bank Limited secured by pari passu frst charge on all the
fixed assets of Sankili and Haliyal Units. The process of charge
creation is in progress.
(iii) Sugar Development Fund Loans include Cane Development Loan of Rs.
100 Lakhs secured by a Bank Guarantee. This loan has been availed for
Ramdurg Unit.
All other Sugar Development Fund Loans are secured by way of frst
charge on the movable and immovable assets of respective divisions of
the company.
(iv) Short Term Loan (STL) include Rs. 2,500 Lakhs from Andhra Bank
secured by frst pari passu charge on the fixed assets of Sankili Unit,
STL of Rs. 5,000 Lakhs from Bank of India secured by frst pari passu
charge on fixed assets of Haliyal Unit and STL from Axis Bank of Rs. 2,500
Lakhs collaterally secured by land at Srikakulam District of Andhra
Pradesh admeasuring 154 acres.
(v) Cash Credits and demand loan are secured by way of hypothecation of
entire current assets of the company and further secured by second
charge on company's fixed assets. The creation of second charge is in
progress.
2. Unsecured Loans
Unsecured Loans include Short Term Loans of Rs. 14,497.16 Lakhs extended
by M/s.E.I.D.- Parry (India) Ltd, the Holding Company, and interest
accrued and due thereon Rs. Nil.
3. Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) of Rs. 1,587.95 Lakhs
(2010: Rs. 55.84 Lakhs).
4. Contingent Liabilities
Rs. In Lakhs
Particulars 2011 2010
Contingent Liabilities not provided
for on account of :
a) Bank Guarantees 247.42 211.25
b) Letter of Credit à 786.14
c) Corporate Guarantees given by the
Company to banks in respect of
crop loans to farmers 1,291.70 7,040.00
and harvesters and transporters
loans
d) Arrears of fixed cumulative
dividends of Preference Shares à 264.22
e) Claims made by Government
Departments against the Company not
acknowledged as debts:
i. Excise claims under appeal 263.79 201.16
ii. Sales tax appeal under various
states 79.76 42.89
iii. Other claims à 166.02
f) Preference Dividend attributable
to Cumulative Preference Shares 1.64 Ã
5. a) The Ministry of Corporate Affairs, Government of India has vide
its Notifcation No GSR 225(E) dated March 31, 2009 announced Companies
Accounting Standards (Amendment) Rules 2009 prescribing changes to
Accounting Standard 11 on 'The Effects of Changes in Foreign Exchange
Rates'.
The Company has, pursuant to the adoption of such principles of
Companies (Accounting Standards) Amendment Rules 2009, exercised the
option of recognising the exchange differences arising on reporting of
foreign currency monetary items at rates different from those at which
they were recorded earlier, in the original cost of such depreciable
fixed assets in so far such exchange differences arose on foreign
currency monetary items relating to the acquisition of a depreciable
asset as below:
Exchange differences aggregating to Rs. 0.54 Lakhs arising during the
period ended June 30, 2011 (2010: Rs. 58.82 Lakhs) have been adjusted to
the cost of the depreciable assets.
6. Segment Reporting:
The Company has identifed three business segments viz. Sugar, Power and
Distillery. Segments have been identifed and reported taking into
account the nature of the products, the differing risks and returns,
the organisational structure and internal business reporting system.
(a) Revenue and expenses have been identifed to a segment on the basis
of relationship to operating activities of the segment. Revenue and
expenses which relate to enterprise as a whole and are not allocable to
a segment on a reasonable basis have been disclosed as "Un-allocable".
(b) Segment Assets and Segment Liabilities represent assets and
liabilities of respective segment. Investments, tax related assets and
other assets and liabilities that cannot be allocated to a segment on a
reasonable basis have been disclosed as "Un-allocable"
(c) The Company generally accounts for inter segment sales/transfer as
if the sales/transfers were to external parties at prevailing average
market price on the date of transfer.
Based on the above allocation and the prevailing yields on these
assets, the long term estimate of the expected rate of return on fund
assets has been arrived at. Assumed rate of return on assets is
expected to vary from year to year refecting the returns on matching
government bonds.
The estimates of future increase in compensation levels, considered in
the actuarial valuation, have been taken on account of infation,
seniority, promotion and other relevant factors such as supply and
demand in the employment market.
As per the best estimate of the management, contribution of Rs.15.00
lakhs is expected to be paid to the plan during the year ending March
31, 2012.
ii. Provision made during the period for other long term employee
benefits based on the actuarial valuation report amounted to Rs. 41.54
Lakhs (2010: Rs. 10.72 Lakhs).
iii. During the period, the Company has recognised the following
amounts in the Profit and Loss Account, which are included in
'Contribution to Provident and Other Funds' in Schedule 16.
7. Operating Leases:
i. The Company has entered in to a non cancelable operating lease
agreement with Shri Dhanalakshmi Sahakari Sakkare Karkhane Niyamit,
Ramdurg for the lease of sugar factory together with the specifed
assets on Built, Own, Operate and Transfer basis (BOOT) for a period of
25 years. Lease rentals of Rs. 912.51 Lakhs (2010: Rs. 704.78 Lakhs) in
respect of the obligation under such lease agreement have been
recognised in the Profit and Loss Account.
Future obligations of lease rentals applicable to the above lease
agreement aggregate to Rs. 14,798.97 Lakhs (2010:Rs. 15,711.48 Lakhs) and
are due:
ii. The Company has certain operating leases for office facilities and
residential premises under a cancellable operating lease agreement.
Such agreements are generally with the option of renewal against
increased rent and premature termination of agreement. The charge on
account of lease rentals under such agreements to the Profit and Loss
Account for the fifteen months period is Rs. 57.41 Lakhs (2010: Rs. 40.78
Lakhs).
ii. The remuneration, as approved by the Remuneration Committee/ Board/
Shareholders, paid to the managerial personnel during the year has been
considered as the minimum remuneration, resulting in excess of such
remuneration over the maximum remuneration stipulated under Schedule
XIII of the Act, due to absence of Profit during the year. The Central
Government vide its letter dated March 28, 2011 approved excess
managerial remuneration of Rs.18.67 Lakhs paid to Mr. R.Ramakrishnan,
Managing Director of the Company (upto August 27, 2010).
The Central Government has also approved payment of maximum managerial
remuneration of Rs. 60.92 Lakhs to Mr. D.Kumaraswamy, Managing Director
of the Company (from August 28, 2010) for the financial year 2010-11 and
for the Financial Year 2011-12 the approval was obtained for Rs. 102.94
Lakhs
B) Curent Tax:
During the fifteen months period the Company has recognised Minimum
Alternate Tax (MAT) credit of Rs.125.35 Lakhs relating to Assessment Year
2008-09 based on the income tax order dated December 24, 2010. In
accordance with the Guidance Note on Accounting for Credit Available in
respect of Minimum Alternate Tax under the provisions of Section 115JB
of the Income Tax Act, 1961, issued by Institute of Chartered
Accountants of India (ICAI), the company can avail MAT tax credit and
recognise as an asset. The company has included the MAT credit
entitlement under Schedule 11 - Loans and Advances.
8. Based on the information available with the Company regarding the
status of suppliers under Micro, Small and Medium Enterprises
Development Act, 2006 (MSME), during the period no amount has been paid
beyond the appointed day in terms of the MSME and there is no amount
paid towards interest in respect of such suppliers. Further, there is
no interest accrued/payable under the said Act as at the Balance Sheet
date, June 30, 2011.
9. With respect to receivables from Transmission Corporation of
Andhra Pradesh Limited (APTRANSCO) included under Schedule 8 Sundry
Debtors:
a) Amounts aggregating to Rs. 715.87 Lakhs [2010: Rs. 539.42 Lakhs] relate
to price difference matter in dispute where APTRANSCO has appealed
before the Apex court against an order of Electricity Tribunal. As the
matters are pending before the Apex court, the Company, as a matter of
prudence, has postponed the recognition of such amounts as income and a
corresponding credit is retained as liability in the books of account
and adjusted against Sundry Debtors as at June 30, 2011.
b) Amounts aggregating to Rs. 582.64 Lakhs [2010: Rs. 551.31 Lakhs] relate
to other matters in dispute where APTRANSCO has appealed before the
Apex court against the orders of Electricity Tribunal. As the matters
are pending before the Apex court, no adjustment has been made in
respect of such dues recognised as receivable as at June 30, 2011.
10. Consumption of Raw Materials includes a payment of Rs. 855.81 lakhs
towards additional cane price payable for the sugar cane purchased for
the season 2009-10. For the comparable previous period, similar
expenditure of Rs. 831.29 lakhs paid for the sugar cane purchased for the
season 2008-09 was earlier disclosed as Exceptional Item which is now
regrouped to Consumption of Raw Materials.
11. Additional information pursuant to the provisions of Paragraph 3,
4C and 4D of Part of Schedule VI to the Act.
12. Earnings in Foreign Currency: NIL
13. During the year, there was an instance of misappropriation of Rs.
47,98,316 by an employee by way of creating certain false and
misleading records and documents. The amounts as determined by the
management based on investigation carried out independently by a frm of
Chartered Accountants aggregating to Rs. 47,98,316 have been recovered
from the concerned employee. Further, the company has also strengthened
the controls in this area.
14. The company has changed its financial accounting year from April Ã
March to April à June. The current financial period is for fifteen months
commencing from April 01, 2010 and ending on June 30, 2011. Previous
year's figures are for twelve months period commencing from April 01,
2009 and ending on March 31, 2010. Therefore, the figures for the
current period are not comparable with those of the previous year with
the incremental impacts in financial statements being increase in Income
and Expenditure by Rs.12,717.38 Lakhs and Rs.15,286.10 Lakhs respectively.
Further, there is an increase in Loss before Taxation and Loss after
Taxation amounting to Rs. 2,568.72 Lakhs and Rs. 2,707.05 Lakhs
respectively. Resultant impact on Earning / (Loss) per Share is an
increase in loss per share by Rs. 13.57 per share.
15. Previous years' figures have been regrouped and reclassified
wherever necessary, to conform to those of the current period.
Mar 31, 2010
1. Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) of Rs. 55.84 Lakhs
(2009: Rs. 114.69 Lakhs).
2. Contingent Liabilities
(Rs. in Lakhs)
Particulars 2010 2009
Contingent liabilities not provided for on
account of:
a) Bank Guarantees 211.25 110.75
b) Letter of Credit 786.14 709.74
c) Corporate Guarantees given by the Company
to banks in respect of crop loans to
farmers 7,040.00 800.00
d) Arrears of fxed cumulative dividends of
Preference shares 264.22 132.11
e) Claims made by Government Departments
against the Company not acknowledged as
debts:
i) Excise claims under appeal 201.16 77.61
ii) Sales tax appeal under various states 42.89 41.78
iii) Other claims 166.02 -
3. a) The Ministry of Corporate Affairs, Government of India has vide
its Notifcation No. GSR 225(E) dated March 31,2009 has announced
Companies Accounting Standards (Amendment) Rules 2009 prescribing
changes to Accounting Standard 11 on The Effects of Changes in Foreign
Exchange RatesÃ.
The Company has, pursuant to the adoption of such principles of
Companies (Accounting Standards) Amendment Rules 2009, exercised the
option of recognizing the exchange differences arising on reporting of
foreign currency monetary items at rates different from those at which
they were recorded earlier, in the original cost of such depreciable
fxed assets in so far such exchange differences arose on foreign
currency monetary items relating to the acquisition of a depreciable
asset as below:
Exchange differences aggregating to Rs. 58.82 Lakhs arising during the
year ended March 31, 2010 (2009: Rs. 39.65 Lakhs) have been adjusted to
the cost of the depreciable assets.
4. During the year, the Company has recognized Rs. 399.18 Lakhs (2009:
Nil) of liquidated damages recovered from suppliersà of capital
equipment purchased, with respect to the Haliyal unit, as ÃOther
IncomeÃ. These liquidated damages were imposed on suppliersà due to
failure on the performance with regard to the delivery schedules and
were recovered at an amount or a rate in conformity with the purchase
order entered into. The same was grouped under ÃCurrent liabilitiesà in
earlier years.
The Liquidated damages such recognized as Ãother incomeà are subject to
reconciliation, acceptance and confrmation by the suppliersà as at the
Balance Sheet date.
5. During the year, the Company acquired 1,445 Shares of Rs. 100/-
each comprising 1.41% of the paid-up capital of Alagawadi Bireshwar
Sugars Private Limited (ABSPL) at a cost of Rs. 843.88 Lakhs.
Consequently ABSPL has become a wholly-owned Subsidiary of the Company
with effect from March 27, 2010. The carrying value of investment in
ABSPL as at March 31, 2010 is Rs. 1,362.94 Lakhs (2009: Rs. 519.06
Lakhs) which exceed the net worth of ABSPL. Additionally, loan
amounting to Rs. 1,134 lakhs [2009: Rs. 250 Lakhs] has been given to
ABSPL.
ABSPL owns an Industrial Entrepreneur Memorandum (IEM) to set up a 2500
TCD Sugar mill in the high recovery sugar rich belts of Raibagh Taluk,
Belgaum District of Karnataka. Further, ABSPL acquired land to the
extent of approximately 196 acres for setting up the project and has
also obtained permission of the State High Level Committee (SHLC) for
setting up a 25 MW Cogeneration Plant and 100 KLPD Distillery.
Considering the strategic location of the project, the embedded value
of the sugar license held by ABSPL and the nearby high recovery sugar
cane rich belt which is the lifeline of a Sugar Industry, the Company
considers that the acquisition cost is reasonable. The management of
the Company believes that this refects intrinsic value far in excess of
the carrying cost of investments and loan given. Therefore, no
provision is considered necessary at this stage in respect of
aforementioned amounts.
6. Sundry Debtors as at March 31, 2010 include Rs.1,090.73 Lakhs
[2009: Rs. 905.48 Lakhs] receivable from Transmission Corporation of
Andhra Pradesh Limited (APTRANSCO). Of the total such dues,
a) Amounts aggregating to Rs. 539.42 Lakhs [2009:Rs. 448.81 Lakhs]
relate to price difference matter in dispute where APTRANSCO has
appealed before the apex court against an order of Electricity
Tribunal. As the matters are pending before the apex court, the Company
as a matter of prudence, has postponed the recognition of such amounts
as income and a corresponding credit is retained as liability in the
books of account. Necessary adjustments will be made upon fnal
resolution of the matter.
b) Amounts aggregating to Rs. 551.31 Lakhs [2009: Rs. 456.67 Lakhs]
relate to various matters in dispute where APTRANSCO has appealed
before the apex court against the orders of Electricity Tribunal. As
the matters are pending before the apex court, no adjustment has been
made in respect of such dues recognized as receivable as at March 31,
2010.
7. Segment Reporting:
(i) The Company has identifed three business segments viz., Sugar,
Power and Distillery. Segments have been identifed and reported taking
into account the nature of the products, the differing risks and
returns, the organizational structure and internal business reporting
system.
(a) Revenue and expenses have been identifed to a segment on the basis
of relationship to operating activities of the segment. Revenue and
expenses which relate to enterprise as a whole and are not allocable to
a segment on a reasonable basis have been disclosed as ÃUn-allocableÃ.
(b) Segment Assets and Segment Liabilities represent assets and
liabilities of respective segment. Investments, tax related assets and
other assets and liabilities that cannot be allocated to a segment on a
reasonable basis have been disclosed as ÃUn-allocableÃ
(c) The Company generally accounts for inter segment sales/transfer as
if the sales/transfers were to external parties at prevailing average
market price on the date of transfer.
Based on the above allocation and the prevailing yields on these
assets, the long term estimate of the expected rate of return on fund
assets has been arrived at. Assumed rate of return on assets is
expected to vary from year to year refecting the returns on matching
government bonds.
The estimates of future increase in compensation levels, considered in
the actuarial valuation, have been taken on account of infation,
seniority, promotion and other relevant factors such as supply and
demand in the employment market.
As per the best estimate of the management, contribution of Rs. 48.75
lakhs is expected to be paid to the plan during the year ending March
31, 2011.
(ii) During the year, the Company has recognized the following amounts
in the Proft and Loss Account, which are included in ÃContribution to
Provident and Other Funds in Schedule 16:
8. Operating Leases:
(i) The Company has entered into a non-cancellable operating lease
agreement with Shri Dhanalakshmi Sahakari Sakkare Karkhane Niyamit,
Ramdurg for the lease of sugar factory together with the specifed
assets on Build, Own, Operate and Transfer basis (BOOT) for a period of
25 years. Lease rentals of Rs. 704.52 Lakhs (2009: Rs. 218.82 Lakhs) in
respect of the obligation under such lease agreement have been
recognized in the Proft and Loss Account.
Future obligations of lease rentals applicable to the above lease
agreement aggregate to Rs.15,711.48 Lakhs (2009: Rs.16,416.00 Lakhs)
and are due:
(ii) The Company has certain operating leases for offce facilities and
residential premises under a cancellable operating lease agreement.
Such agreements are generally with the option of renewal against
increased rent and premature termination of agreement. The charge on
account of lease rentals under such agreements to the Proft and Loss
Account for the year is Rs. 40.78 Lakhs (2009: Rs. 12.82 Lakhs).
Notes:
The above information has been determined to the extent such parties
have been identifed on the basis of information provided by the
Company, which has been relied upon by the auditors.
C. Managerial remuneration
i. The Proft and Loss Account includes payments and provisions on
account of remuneration to managerial person as under:
ii. The remuneration, as approved by the Remuneration
committee/Board/Shareholders, paid to the managerial personnel during
the year has been considered as the minimum remuneration, resulting in
excess of such remuneration over the maximum remuneration stipulated
under Schedule XIII of the Act, amounting to Rs. 25.18 Lakhs due to
absence of proft during the year. The Central Government vide its
letter dated March 11, 2010 approved payment of Rs. 73.18 Lakhs as
remuneration to Mr. Ramakrishnan, Managing Director of the Company.
9. Provision towards L-Factor:
Pursuant to the amendment of the Essential Commodities Act,1955 vide
the Central Government through order dated October 22, 2009
(S.0.2665(E)/Essential Commodities/sugar cane issued by the Ministry of
Consumer Affairs, Food and Public Distribution (Department of Food and
Public Distribution) in exercise of powers conferred by Section 3 of
the Essential Commodities Act,1955 called as Sugarcane (Control)
Amendment Order 2009 has omitted Clause 5A and second schedule of the
sugarcane control order.
Consequently, the erstwhile formula under which the Company made a
provision for additional remuneration payable to the farmers has now
become redundant and such provision amounting to Rs.1,408.12 Lakhs has
been written back during the year.
The movement in Provision for L-Factor as at March 31, 2010 is shown
hereunder:
10. During the current year the Company has accounted for sugar cane
purchases for the season 2008-09 at Rs. 50 per quintal in respect of
Haliyal and Ramdurg units. The total additional cane price announced
and paid in respect of the 2008-09 season aggregating to Rs. 831.29
Lakhs has been included in the Proft and Loss Account as ÃExceptional
ItemÃ. The decision to pay such additional cane price for last year
supplies was taken keeping in view the scarcity of sugar cane and
competition in the region.
11. Based on the information available with the Company regarding the
status of supplier under Micro, Small and Medium Enterprises
Development Act, 2006 (MSME), during the year no amounts have been paid
beyond the appointed day in terms of the MSME and there is no amount
paid towards interest. Further, there is no interest accrued/payable
under the said act as at the balance sheet date.
12. Previous yearÃs fgures have been regrouped and reclassifed
wherever necessary, to conform to those of the current year.