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Notes to Accounts of Rajshree Sugars & Chemicals Ltd.

Mar 31, 2015

1) Contingent Liabilities not provided for

a) Claims against the company not acknowledged as debt:

i) The Commissioner of Central Excise (Appeals) has upheld the order of the Central Excise department imposing a penalty of Rs. 21.92 lakhs (Rs. 21.92 lakhs) in the matter of payment of service tax for agency fees and other charges paid towards ECB availed. The company has filed an appeal before CESTAT (Central Excise and Service Tax Appellate Tribunal) and the appeal is pending before the said Appellate Tribunal and hence no provision has been made.

ii) CESTAT has set aside the central excise demand of Rs. 397.78 Lakhs with interest and penalty and passed orders in favour of the Company in the matter of eligibility of exemption on molasses captively consumed in Unit III and also cenvat credit availed on molasses procured from other Units. On the same issue for the subsequent period, Commissioner of Central Excise, Pondicherry has confirmed demand of Rs. 550.40 Lakhs with interest and a penalty of Rs. 10.00 Lakhs. The Company has preferred an appeal before CESTAT. Demand of Rs. 476.55 Lakhs with interest and penalty on the similar issue in Unit I is also being contested by the Company. In view of the CESTAT order referred above, the Company has not provided for these contingent liabilities in the account.

iii) Recompense amount payable as per Corporate Debt Restructuring (CDR) scheme as at the close of the year is Rs. 1,501 lakhs (Rs. 431 Lakhs)

b) Guarantees

The Company has provided a corporate guarantee to the banks in respect of Term loans and cash credit facilities sanctioned to the subsidiary company, Trident Sugars Limited. The outstanding as on 31.3.2015 is Rs. 1,777.42 lakhs (Rs. 4,263.12 lakhs)

c) The Government of Tamilnadu notified the State Advised Price (SAP) of Rs. 2,650/- per MT of sugarcane for the sugar seasons 2013-14 and 2014-15. The company has accrued and accounted the cane purchase at the rate of Rs. 2,350/- per MT (for the cane procured during April 2014 to September 2014) and at the rate of Rs. 2,400/- per MT (for the cane procured during the period October 2014 - March 2015). Since all the private mills in Tamilnadu are disputing the State Government''s announcement and the case is pending before the High Court of Madras. The total amount involved is Rs. 4,012.89 lakhs.

2) Income Tax assessments have been completed upto Assessment year 2012-13. Disallowances made in the order of assessment in some of the years, purely technical in nature, have been disputed in appeal before the appellate authorities. No provision has been made therefor since there are no tax demands for the present.

3) In terms ofAS-28, the company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its Fixed assets. The exercise has not revealed any impairment of assets during the year 2014-15 save and except the immediate following point.

4) The Tamil Nadu Government has issued a G.O. dated 31.08.2010 as directed by the Hon''ble Madras High Court, notifying the elephant corridor in the Nilgris District, which includes company''s land of 7.83 acres in Masinagudi Village Nilgiris District. The GO has now been disputed before the Hon''ble Supreme Court by the Company in SLP (C) 16898/2011 and interim stay has been granted. The carrying value of the said land in the books is Rs. 35.57 lakhs (Rs. 35.57 lakhs).

5) In terms of resolutions passed at the Extraordinary General Meeting held on 10th October 2012, 11,50,000 Equity warrants were issued to Ms.Rajshree Pathy, Chairperson and Managing Director at an exercise price of Rs. 55.20 per warrant. In terms of the regulations, 25% of the total amount (Rs. 158.70 lakhs) was deposited on 24th October 2012. Since Ms. Rajshree Pathy did not exercise the option, the initial amount of Rs. 158.70 lakhs is forfeited in April 2014. The same has been shown under reserves and surplus.

6) The Company has changed the method of providing depreciation and has adopted useful lives and residual value as prescribed in Schedule II of Companies Act, 2013 read with Accounting Standard 6 (AS 6) ''Depreciation Accounting''. Consequent to the above change, the charge for depreciation in respect of fixed assets held as at April 1,2014 is lower by Rs. 210.00 Lakhs. Further carrying value of assets, where the remaining useful life of the asset was determined to be NIL as on April 1,2014, aggregating to Rs. 424.09 lakhs is adjusted against the balance brought forward in General Reserve.

7) Previous year figures have been regrouped wherever necessary to conform to current year''s classification.


Mar 31, 2014

Security details for long term borrowings:

1) The term loans aggregating to Rs. 44,311.41 lakhs under Corporate Debt Restructuring Scheme (CDR) are secured as detailed below:

a) First pari-passu charge on the fixed assets of the company except the following:

i. Co-generation assets of Unit-II at Mundiampakkam and entire fixed assets of Unit-III at Gingee whose first pari- passu charge is exclusively charged to SDF and SBI.

ii. 5.19 Acres land with buildings at Vilankurichi Village belonging to Company exclusively charged to ICICI Bank.

iii. Land at Pallipuram Village, Alleppey District, Kerala belonging to Company exclusively charged to ICICI Bank.

iv. Registered office (Uffizi) at Coimbatore exclusively charged to ICICI Bank

v. 2/3rd undivided rights on the interests in the plot of land admeasuring about 375 sq yards along with the first and second floors terrace floors along with the mezannine floor situated at Municipal No. 186, Block No. 10, Golf Links, New Delhi exclusively charged to Axis Bank.

b) Second pari-passu charge on the entire fixed assets of Unit-III at Gingee subject to approval for sharing the security from Sugar Development Fund.

c) First pari-passu charge over the cogeneration receivables of the Unit-II & III.

d) Second pari-passu charge over the remaining current assets of the company.

e) First Paripassu charge on the additional securities, as briefed below, provided by the company for CDR package.

i. Vacant Land situated at TS No 613/2(Part), TS Ward 10, Krishnaraya Puram Village, Coimbatore North Taluk, Coimbatore District within Coimbatore City Municipal Corporation measuring 80 cents.

ii. Land and building (Bio Control Unit at Unit 1 Theni) situated at Gullapuram Village, Periyakulam Taluk, Theni District, Gullapuram Panchayat after closure of the loan availed from State Bank of Travancore, Coimbatore.

iii. Residential Flat No 2 at Door No. 9 Sathyanarayana Avenue, Raja Annamalaipuram, Chennai 600 028.

f) The Cogeneration receivables of the Unit- II & III, presently charged exclusively to SBI, will be pooled into the Trust and Retention Account for all lenders under CDR Package.

g) The Promoter(s) have pledged their entire shares with voting rights in demat form, in favour of the CDR Lenders.

h) The mortgages, charges and pledges referred to above shall rank pari passu with the mortgages, charges and pledges created and/or to be created in favour of the Acceding Lenders.

2) The term loan (Axis TL II) of Rs. 1,257.13 lakhs is secured by 1st exclusive charge on land and buildings of the Company at Golf Links, New Delhi and subservient charge on the entire movable fixed assets of the company.

3) Term loans (SDF) aggregating to Rs. 4,722.08 lakhs are secured by 1st paripassu charge on the fixed/immovable assets of Unit-III (Sugar, Cogeneration & Distillery).

4) The loans aggregating to Rs. 44,311.41 lakhs guaranteed by Managing Director.

5) Term loans Guaranteed by others is Nil.

6) Period and amount of continuing default in respect of the aforesaid loans is Nil.

Security Details for short term borrowings:

1) The Working Capital facilities aggregating to Rs. 14,307 lakhs under the CDR are secured as detailed below:

a) First pari-passu charge over the current assets of the company.

b) Second pari-passu charge on the fixed assets of the company except the following:

i. Co-generation assets of Unit-II at Mundiampakkam and entire fixed assets of Unit-III at Gingee whose first pari- passu charge is exclusively charged to SDF and SBI.

ii. 5.19 Acres land with buildings at Vilankurichi Village belonging to Company exclusively charged to ICICI Bank.

iii. Land at Pallipuram Village, Alleppey District, Kerala belonging to Company exclusively charged to ICICI Bank.

iv. Registered office (Uffizi) at Coimbatore exclusively charged to ICICI Bank.

v. 2/3rd undivided rights on the interests in the plot of land admeasuring about 375 sq yards along with the first and second floors, terrace floors along with the mezannine floor situated at Municipal No. 186, Block No. 10, Golf Links, New Delhi exclusively charged to Axis Bank.

c) Second pari-passu charge on the additional securities, as briefed below, provided by the company for CDR package.

i. Vacant Land situated at TS No 613/2(Part), TS Ward 10, Krishnaraya Puram village, Coimbatore North Taluk, Coimbatore District within Coimbatore City Municipal Corporation measuring 80 cents.

ii. Land and building (Bio Control Unit at Unit 1, Theni) situated at Gullapuram Village, Periyakulam Taluk, Theni District, Gullapuram Panchayat after closure of the loan availed from State Bank of Travancore, Coimbatore.

iii. Residential Flat No 2 at Door No 9 Sathyanarayana Avenue, Raja Annamalaipuram, Chennai 600 028.

d) First pari-passu charge over the cogeneration receivables of the Unit-II & III.

e) Third pari-passu charge on the entire fixed assets of Unit-III at Gingee subject to approval for sharing the security

from Sugar Development Fund.

f) The Cogeneration receivables of the Unit- II & III, presently charged exclusively to SBI, will be pooled into the Trust and Retention Account for all lenders under CDR Package.

g) The Promoter(s) have pledged their entire shares in demat form with voting rights, in favour of the CDR Lenders.

h) The mortgages/charges and pledges referred to above shall rank pari passu with the mortgages/charges and pledges created and/or to be created in favour of the Acceding Lenders.

2) Term loan (Sundaram Finance) of Rs. 25.08 lakhs is secured by exclusive 1st charge on particular Machinery viz. John Deere wheel Cane located at Unit-II, Mundiampakkam.

3) The term loan (SBI TL III) of Rs. 89.36 lakhs is secured by 1st Paripassu charge over the fixed/immovable assets of Sugar, Cogeneration & Distillery unit at Semmedu Village (Unit-III) and 2nd paripassu charge on Receivables and Inventories of Unit-III (Distillery).

4) Term loan (SBT) of Rs. 24.00 lakhs is secured by way of 1st hypothecation charge on plant & machineries purchased out of bank''s finance for Bio-control Unit at Varadarajnagar and 1st mortgage charge on 2.96 Acres along with buildings and other properties thereon belonging to the said Bio-control unit.

5) Working Capital facilities aggregating to Rs. 14,307 lakhs guaranteed by Managing Director.

6) Short term loans Guaranteed by others is Nil.

7) Period and amount of default in respect of the aforesaid loans is Nil.

1. Defined Benefit Plan

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India / HDFC Standard Life Insurance Company Limited is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The estimates of rate of escalation in salary considered in actuarial valuation, taken into account the inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

2. Contingent Liabilities not provided for

a) Claims against the company not acknowledged as debt:

i) The Commissioner of Central Excise (Appeals) has upheld the order of the Central Excise department imposing a penalty of Rs. 21.92 lakhs in the matter of payment of service tax for agency fees and other charges paid towards ECB availed. The company has filed an appeal before CEGAT and the appeal is pending before the said Appellate Tribunal and hence no provision has been made.

ii) The administrative service fee on alcohol manufactured by distilleries was hiked by the Tamil Nadu Government from 50 paise to 100 paise per litre. This was struck down by the Hon''ble Madras High Court as unconstitutional against which Tamil Nadu Government has filed SLP before the Hon''ble Supreme Court. By its interim order dated 6.5.2004, the Hon''ble Supreme Court has held that only 50 paise per litre could be collected pending disposal of the appeal. The amount is indeterminate at this juncture.

iii) The central excise demand of 397.78 lakhs with interest and a penalty of Rs. 10 lakhs confirmed by Commissioner of Central Excise, Pondicherry in the matter of eligibility of exemption on captive consumption of molasses in Unit III has not been provided for in the accounts. The Company has preferred an appeal before Central Excise and Service Tax Appellate Tribunal (CESTAT), Chennai. Demand of Rs. 280 Lakhs with interest and penalty of Rs. 5 lakhs on the similar issue in Unit I is also being contested by the Company and the same has not been provided for in the account.

iv) Recompense amount payable as per Corporate Debt Restructuring (CDR) scheme for the year ended 31st March 2014 - Rs. 431 Lakhs.

b. Guarantees

The Company has provided a corporate guarantee of Rs. 4,263.12 lakhs (Rs. 4,667.25 lakhs) to the Banks in respect of Term loans and cash credit facilities sanctioned to the subsidiary company Trident Sugars Limited.

c) Income Tax assessments have been completed upto Assessment year 2011-12. Disallowances made in the order of assessment in some of the years, purely technical in nature, have been disputed in appeal before the appellate authorities. No provision has been made therefor since there are no tax demands for the present.

3) In terms of AS-28, the company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its Fixed assets. The exercise has not revealed any impairment of assets during the year 2012-13 save and except the following point No.16.

4) The Tamil Nadu Government has issued a G.O. dated 31.08.2010 as directed by the Hon''ble Madras High Court, notifying the elephant corridor in the Nilgiris District, which includes company''s land of 7.83 acres in Masinagudi Village Nilgiris District. The GO has now been disputed before the Hon''ble Supreme Court by the Company in SLP (C) 16898/2011 and interim stay has been granted. The carrying value of the said land in the books is Rs. 35.57 lakhs.

5) In terms of resolutions passed at the Extraordinary General Meeting held on 10th October 2012, 11,50,000 Equity warrants were issued to Ms. Rajshree Pathy, Chairperson and Managing Director at an exercise price of Rs. 55.20 per warrant. In terms of the regulations, 25% of the total amount (Rs. 158.70 lakhs) was deposited on 24th October 2012. Subsequent to the close of the financial year 2013-14 since Ms.Rajshree Pathy did not exercise the option, the initial amount of Rs. 158.70 lakhs is forfeited in April 2014.

6) Corporate Debt Restructuring (CDR)

The Corporate Debt Restructuring proposal (CDR proposal) was referred by the company to Corporate Debt Restructuring Cell, ("CDR Cell") and the said proposal was recommended by the consortium of lenders led by State Bank of India (SBI), Coimbatore. The CDR proposal was approved by CDR Empowered Group ("CDR EG") on 14th March 2014 and communicated vide final Letter of Approval dated 24th March 2014. The cut-off date for the CDR proposal was 1st October 2013. The Master Restructuring Agreement (MRA) between the company and the CDR lenders has been executed, by virtue of which the restructured facilities are governed by the provisions specified in the MRA on the cut-off date (COD) of October 1, 2013.

The key features of the CDR scheme are as below:

1. Term Loans: Rs. 296.61 crores: Repayment of Restructured term loan (RTL) after moratorium of 18 months from cut-off date in 34 structured quarterly installments commencing from June 30, 2015 till September 30, 2023.

2. Working capital term loan (WCTL): Rs. 63.93 chores: Repayment of WCTL after moratorium of 18 months from cut off date in 28 structured quarterly installments commencing from June 30, 2015 till March 31, 2022.

3. Interest payable on term loans (1) above from cut-off date to 31st March 2015 converted into Funded interest term loan (FITL): Rs. 48.90 chores: Repayment of FILL after moratorium of 18 months from cut-off date in 26 structured quarterly installments commencing from June 30, 2015 till September 30, 2021.

4. New Term Loan under Scheme for Extending Financial Assistance to Sugar Undertakings, 2014 (SEAS) for clearing of cane price arrears of the previous sugar season and for timely settlement of cane prices for the current sugar season: Rs. 65.85 Crores: - Repayment after moratorium of 2 years from the date of first disbursement, in 12 quarterly installments.

5. Restructuring of existing working capital limits to Rs. 143.07 Crores.

6. Waiver of existing events of defaults, penal interest and charges etc. in accordance with MRA.

7. Right to recompense to CDR Lenders for the relief and sacrifice extended, subject to provisions of CDR Guidelines and MRA.

8. Lenders will have right to reverse the waivers / sacrifices granted under the package.

9. The company and the CDR Lenders executed MRA during the year. The MRA as well as the provisions of the Master Circular on Corporate Debt Restructuring issued by the Reserve Bank of India, give a right to the CDR Lenders to get a recompense of their waivers and sacrifices made as part of the CDR Proposal. The recompense payable by the borrowers is contingent on various factors including improved performance of the borrowers and many other conditions, the outcome of which currently is materially uncertain and hence the proportionate amount payable as recompense has been treated as a contingent liability. The aggregate present value of the outstanding sacrifice made/ to be made by CDR Lenders as per the MRA is approximately Rs. 48.97 crores for the Company.

10. Transactions with related parties

Note:

Names of Related parties and description of relationship

1. Holding Companies None

2. Subsidiaries Trident Sugars Limited

3. Fellow Subsidiaries None

4. Associates None

5. Key Management Personnel a) Ms. Rajshree Pathy b) Mr. R.Varadarajan

6. Relatives of Key Management Personnel a) Ms. Aishwarya Pathy b) Mr. Aditya Krishna Pathy

7. Other Related Parties a) RSCL Properties Pvt Ltd b) Prana Ayurveda Coimbatore Pvt Ltd c) Argead Enterprises Pvt Ltd d) CAI Industries Pvt Ltd. e) Rajshree Automotive Pvt Ltd. f) Aloha Tours & Travels (India) Pvt Ltd g) Rajshree Spinning Mills Limited h) Raj Fabrics and Accessories (Cbe) Ltd i) Greenplus Manures Pvt Ltd j) Major Corporate Services (India) Ltd


Mar 31, 2013

1) Provision towards Gratuity and superannuation schemes has been made upto date as per the demands received from Life Insurance Corporation of India and HDFC Standard Life Insurance Company Limited based on actuarial valuation. Provision for leave encashment benefit has been made for the entire amount due and payable as at the close of the year.

2) Contingent Liabilities not provided for

a) Claims against the company not acknowledged as debt:

i) The Commissioner of Central Excise (Appeals) has upheld the order of the Central Excise department imposing a penalty of Rs. 21.92 lakhs in the matter of payment of service tax for agency fees and other charges paid towards ECB availed. The company has filed an appeal before CEGAT and the appeal is pending before the said Appellate Tribunal and hence no provision has been made.

ii) Electricity generation tax demand for Rs. 304.90 lakhs has been raised in respect of captive consumption of electricity generated from cogeneration division. The same is disputed and contested in appeal and SLP is pending before Supreme Court. Hence no amount is provided towards this demand and interest liability of Rs.172.29 lakhs.

iii) The administrative service fee on alcohol manufactured by distilleries was hiked by the Tamil Nadu Government from 50 paise to 100 paise per litre. This was struck down by the Hon''ble Madras High Court as unconstitutional against which Tamil Nadu Government has filed SLP before the Hon''ble Supreme Court. By its interim order dated 6.5.2004, the Hon''ble Supreme Court has held that only 50 paise per litre could be collected pending disposal of the appeal. The amount is indeterminate at this juncture.

b) Guarantees

The Company has provided a corporate guarantee of Rs. 4,667.25 lakhs (Rs. 3,983.21 lakhs) to the Banks in respect of Term loans and cash credit facilities sanctioned to the subsidiary company Trident Sugars Limited.

c) Income Tax assessments have been completed upto Assessment year 2010-11. Disallowances made in the order of assessment in some of the years, purely technical in nature, have been disputed in appeal before the appellate authorities. No provision has been made therefor since there are no tax demands for the present.

3) In terms of AS-28, the company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its Fixed assets. The exercise has not revealed any impairment of assets during the year 2012-13.

4) The Tamil Nadu Government has issued a G.O. dated 31.08.2010 as directed by the Hon''ble Madras High Court, notifying the elephant corridor in the Nilgiris District, which includes company''s land of 7.83 acres in Masinagudi Village, Nilgiris District. The GO has now been disputed before the Hon''ble Supreme Court by the Company in SLP (C) 16898/2011 and interim stay has been granted. The carrying value of the said land in the books is Rs.35.57 lakhs.

5) At the Extraordinary General meeting held on 10th October 2012, the shareholders of the company have consented by way of special resolutions for offering, issuing, allotting on preferential basis to Ms.Rajshree Pathy, Chairperson and Managing Director upto 11,50,000 Equity warrants at an exercise price of Rs. 55.20/- per warrant, and for the allotment of equal number of Equity Shares on exercise of such Equity Warrants. As per the requirement of SEBI Regulations, Ms.Rajshree Pathy has paid the strike price (25% of exercise price) amounting to Rs.158.70 lakhs on 24th October 2012 and accordingly she has been allotted 11,50,000 equity warrants on the same date. The exercise period shall not exceed 18 months from the date of allotment of warrants.

6) Previous year figures have been regrouped wherever necessary to conform to current year''s classification.


Mar 31, 2012

Security details for the aforesaid Long term loans

1) Term loan Rs 8,416.32 lakhs secured by exclusive 1st charge over the fixed assets purchased/ created out of the Bank finance for the Distillery project at Unit-III, Semmedu and 2nd charge over the sugar & cogeneration division assets of Unit-III at Semmedu.

2) Term loan Rs 8,550.00 lakhs secured by exclusive 1st charge on cogeneration receivables of Unit-II at Mundiampakkam and Unit-III at Gingee and exclusive 1st charge on the cogeneration assets (including immovable properties) of Unit-II at Mundiampakkam.

3) Term loan Rs 397.00 lakhs secured by 1st paripassu charge on the current assets of the Company and 1st paripassu charge on fixed & immovable assets of Unit-I at Varadarajnagar.

4) Term loan Rs 2,000.00 lakhs secured by 1st paripassu charge on the current assets of the Company and 1st paripassu charge on fixed & immovable assets of sugar mill of Unit-II situated at Mundiampakkam.

5) Term loan Rs 400.00 lakhs secured by 1st paripassu charge on the fixed & immovable assets of Sugar & Cogeneration plants of Unit-III situated at Semmedu, 2nd paripassu charge on the fixed assets of Unit-I situated at Varadarajnagar and 4th paripassu charge on sugar mill assets of Unit II situated at Mundiampakkam.

6) Term loan Rs 90.00 lakhs secured by 1st paripassu charge on the fixed & immovable assets of Sugar & Cogeneration plants of Unit-III situated at Semmedu.

7) Term loan Rs 70.00 lakhs secured by 1st paripassu charge on the current assets of the Company and 1st paripassu charge on fixed & immovable assets of sugar plant of Unit-II situated at Mundiampakkam.

8) Term loans under the Scheme for Extending Financial Assistance to Sugar Undertakings (SEFASU) aggregating to Rs 60.55 lakhs secured by residual paripassu charge on the fixed assets of Unit-I situated at Varadarajnagar and residual paripassu charge on fixed assets of Unit-II situated at Mundiampakkam.

9) ECB loan of outstanding of Rs10,839.05 lakhs is secured by 1st paripassu charge on the fixed & immovable assets of Sugar & Cogeneration plants of Unit-III at Semmedu and 2nd charge on the current assets of sugar and cogeneration plants of Unit-III at Semmedu, which is subservient to the 1st charge in favour of working capital lenders of Unit-III.

10) Term loan Rs 262.35 lakhs of Sugar Development Fund from Government of India is secured by way of exclusive 2nd charge on movable and immovable properties of Sugar & cogeneration plants of Unit-II situated at Mundiampakkam.

11) Term loan Rs 2,110.00 lakhs secured by 1st paripassu charge on movable and immovable properties of Sugar & Cogeneration plants of Unit-III situated at Semmedu.

12) Term loan Rs 200.00 lakhs is secured by issue of bank guarantee, which is secured by 2nd paripassu charge on the current assets of the Company.

13) Term loan Rs 1,885.71 lakhs secured by 2nd charge on land and buildings of the Company at Golf links, New Delhi and subservient charge on the entire movable fixed assets of the company.

14) Term loan Rs1,875.00 Lakhs secured by 1st Paripassu charge on the entire fixed and immovable assets of the Company's Unit-I at Varadarajnagar and subservient charge on the entire movable fixed assets and current assets of the Company.

15) Term loan Rs 7,500.00 Lakhs secured by way of 1st paripassu charge on the entire movable fixed assets of Factory Unit- I at Varadarajnagar, Unit-II at Mudiampakkam (excluding cogeneration unit), exclusive charge on piece of land and building thereon, if any, situated at Pallipuram Village, Kerala, exclusive Charge on the land and building of Corporate office at Coimbatore, exclusive charge on piece of land and building thereon at Vilankurichi, Coimbatore and residual charge on the entire current assets of the Company.

16) Term loan Rs 89.56 lakhs secured by way of exclusive 1st charge on 1 No. of Machinery viz. John Deerewheel Cane located at Unit-II, Mundiampakkam.

17) Term loan Rs 7,500.00 lakhs guaranteed by the Managing Director.

18) Term Loans guaranteed by others is Nil.

19) Period and amount of continuing default in respect of the aforesaid loans is Nil.

SECURITY DETAILS FOR THE SHORT TERM LOANS

1) Working capital limit of Rs11,893.32 lakhs from consortium of bankers are secured by 1st paripassu charge on the current assets of the Company, 2nd paripassu charge on the fixed & immovable assets of Unit-I at Varadarajnagar and 4th paripassu charge on the fixed & immovable assets of sugar plant of Unit-II situated at Mundiampakkam.

2) Working capital limit of Rs 500.00 lakhs secured by 1st paripassu charge on the Current Assets of the company. The loan has not been availed during the year.

3) Short Term Loan Rs 3,000.00 lakhs guaranteed by the Managing Director.

4) Short Term Loans guaranteed by others is Nil.

5) Period and amount of default in respect of the aforesaid loans is Nil.

1) Provision towards Gratuity and superannuation schemes has been made upto date as per the demands received from Life Insurance Corporation of India and HDFC Standard Life Insurance Company Limited based on actuarial valuation. Provision for leave encashment benefit has been made for the entire amount due and payable as at the close of the year.

2) Contingent Liabilities not provided for

a) Claims against the company not acknowledged as debt:

i) Disputed interest on sales tax for the years 1995-96 to 1997-98 in respect of which stay from High Court at Chennai is obtained Rs 42.50 lakhs (Previous year: Rs 42.50 lakhs)

ii) The Commissioner of Central Excise (Appeals) has upheld the order of the Central Excise department imposing a penalty of Rs 21.92 lakhs in the matter of payment of service tax for agency fees and other charges paid towards ECB availed. The company has filed an appeal before CEGAT and the appeal is pending before the said Appellate Tribunal and hence no provision has been made.

iii) Electricity generation tax demand for Rs 248.09 lakhs has been raised in respect of captive consumption of electricity generated from cogeneration division. The same is disputed and contested in appeal. Hence not provided for.

iv) In respect of additional demand of Sales tax received for the years 2000-2001 to 2004-2005 aggregating to Rs 345.01 lakhs, no provision has been made in the accounts as the demand has been disputed before the first Appellate Authority. The amount of Rs 126.65 lakhs paid towards statutory amount deposited before filing of appeal has been included under advance sales tax.

b) Guarantees

The Company has provided a corporate guarantee of Rs 3983.21 lakhs to the Banks in respect of Term loans and cash credit facilities sanctioned to the subsidiary company, Trident Sugars Limited. (Previous year Rs 3233.60 lakhs)

3) In terms of AS-28, the company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its Fixed assets. The exercise has not revealed any impairment of assets during the year 2011-12.

4) In respect of the property at Delhi wherein the 1st and 2nd floors were acquired during the year 2006-07, the ground floor portion was taken on a long term operational lease of 20 years on a monthly rental of Rs 0.75 lakhs with option to renew for further 20 years on the same terms. The refundable interest free security deposit made and maintained in a separate escrow account with Bank for this purposes is Rs 112.50 lakhs.

5) Previous year figures have been regrouped wherever necessary to conform to current year's classification.


Mar 31, 2011

1. Estimated amount of contracts pending to be executed on capital account as on 31.03.2011 is Rs.7,452.29 lakhs (previous year : Rs.284.38 lakhs)

2. CONTINGENT LIABILITIES NOT PROVIDED FOR

a. Disputed interest on sales tax for the years 1995-96 to 1997-98 in respect of which stay from High Court at Chennai is obtained Rs.4,249,634/- (Previous year: Rs.4,249,634/-)

b. The Company has provided a corporate guarantee of Rs. 32.34 crores to the Banks in respect of Term loans and cash credit facilities sanctioned to the subsidiary company Trident Sugars Limited. (Previous year Rs.51.94 crores)

c. The Company has filed a review petition before the High Court of Judicature, Madras at Chennai in relation to the writ appeals with respect to purchase tax and the decision in the matter has been deferred by the High Court till disposal of similar issues by the Supreme Court in other cases. Hence no provision is made for other charges, if any, in this regard. The amount is indeterminate at this juncture.

d. The Commissioner of Central Excise (Appeals) has upheld the order of the Central Excise department imposing a penalty of Rs.21 lakhs in the matter of payment of service tax for agency fees and other charges paid towards ECB availed. The company has filed an appeal before CEGAT and the appeal is pending before the said Appellate Tribunal and hence no provision has been made.

e. Electricity generation tax demand for Rs. 248.09 lakhs has been raised in respect of captive consumption of electricity generated from cogeneration division. The same is disputed and contested in appeal. Hence not provided for.

f. The company has subscribed 49,980 equity shares of Rs.10/- each in Rajshree Power Private Limited (a subsidiary company), of which Rs. 2/- per share has been paid-up and the balance of Rs. 8/- per share is payable.

g. In respect of additional demand of Sales tax received for the years 2000-2001 to 2004-2005 aggregating to Rs. 345.49 lakhs, no provision has been made in the accounts as the demand has been disputed before the first Appellate Authority. The amount of Rs. 69.36 lakhs paid towards statutory amount deposited before filing of appeal has been included under advance sales tax.

3. SECURED LOANS

1) Term loan of Rs.12 Crores from State Bank India is secured by:

a) 1st paripassu charge on the fixed & immovable assets of Sugar & Cogeneration plants of Unit-III situated at Semmedu.

b) Exclusive 1st charge on 5.19 acres of land with buildings thereon situated at Vilankurichi village, Coimbatore District.

2) Term loan of Rs.30 Crores from State Bank of India is secured by 1st paripassu charge on the current assets of the Company. The loan account is fully settled and closed during the year.

3) Term loan of Rs.25 Crores from State Bank of India is secured by:

a) 1st paripassu charge on the current assets of the company

b) 1st paripassu charge on the sugar mill assets of Unit-II situated at Mundiampakkam.

4) Term loan of Rs. 51.90 Crores and Term loan of Rs. 40.83 Crores from State Bank of India are secured by:

a) Exclusive 1st charge over the fixed assets purchased / created out of the Bank finance shared among lender banks for the Distillery project at Unit-III, Semmedu.

b) 2nd charge over the sugar & cogen division assets of Unit-III at Semmedu.

5) Term loan of Rs. 90 Crores from State Bank of India is secured by:

a) Exclusive 1st Charge on Cogen receivables of Unit-II at Mundiampakkam and Unit-III at Gingee.

b) Exclusive 1st charge on the cogen assets (including immovable properties) of Unit-II at Mundiampakkam.

6) Term loan of Rs. 5 Crores from State Bank of Hyderabad is secured by:

a) 1st paripassu charge on the current assets of the Company ; and

b) 1st paripassu charge on the fixed assets of sugar plant of Unit-II at Mundiampakkam.

7) Term loan of Rs.13 Crores from State Bank of Hyderabad is secured by:

a) 1st paripassu charge on the current assets of the Company

b) 1st paripassu charge on fixed & immovable assets of Unit-I at Varadarajnagar.

8) Term loan of Rs. 20 Crores from State Bank of Hyderabad is secured by:

a) 1st paripassu charge on the current assets of the Company

b) 1st paripassu charge on fixed & immovable assets of sugar mill of Unit-II at Mundiampakkam.

9) Term loan of Rs.10 Crores from State Bank of Mysore is secured by:

a) 1st paripassu charge on the fixed & immovable assets of Sugar & Cogeneration plants of Unit-III at Semmedu.

b) 2nd paripassu charge on the fixed assets of Unit-I at Varadarajnagar.

c) 3rd paripassu charge on co-generation assets of Unit II at Mundiampakkam.

d) 4th paripassu charge on sugar mill assets of Unit II at Mundiampakkam.

10) Term loan of Rs.15 Crores from Bank of India is secured by:

a) 1st paripassu charge on Fixed & movable properties of Unit-I at Varadarajnagar.

b) Exclusive 1st charge on land and buildings of the Company at Golf Links, New Delhi.

11) Term loan of Rs.2 Crores from Bank of India is secured by 1st paripassu charge on the fixed & immovable assets of Sugar & Cogeneration plants of Unit-III at Semmedu.

12) Term loan of Rs. 7 Crores from Bank of India is secured by:

a) 1st paripassu charge on the current assets of the Company

b) 1st paripassu charge on fixed & immovable assets of sugar plant of Unit-II at Mundiampakkam.

13) Term loans aggregating to Rs. 28.40 Crores (State Bank of India Rs. 12.25 Crores, State Bank of Mysore Rs. 4.90 Crores, Bank of India Rs. 4.90 Crores, UCO Bank Rs.3.90 Crores and State Bank of Hyderabad Rs.2.45 Crores) received under the Scheme for Extending Financial Assistance to Sugar Undertakings are secured by:

a) Residual paripassu charge on the fixed assets of Unit-I at Varadarajnagar.

b) Residual paripassu charge on fixed assets of Unit-II at Mundiampakkam.

14) ECB loan of 30 Million USD equivalent to Rs.125.15 Crores is secured by:

a) 1st paripassu charge on the fixed & immovable assets of Sugar & Cogeneration plants of Unit-III at Semmedu.

b) 2nd paripassu charge on the current assets of sugar and co-generation plants of Unit-III at Semmedu, which is subservient to the 1st charge in favour of working capital lenders of Unit-III.

15) Term loan of Rs.17.49 Crores from Sugar Development Fund, Government of India is secured by way of exclusive 2nd charge on movable and immovable properties of Sugar & Cogeneration plants of Unit-II at Mundiampakkam.

16) Term loan of Rs.21.10 Crores from Sugar Development Fund, Government of India is secured by way of 1st paripassu charge on movable and immovable properties of Sugar & Cogeneration plants of Unit-III at Semmedu.

17) Short Term Cane Development Loan of Rs.4 Crores from Sugar Development Fund has been collaterally secured by issue of bank guarantee amounting to Rs.4.40 crores availed from Federal Bank Limited which is secured by creation of 2nd paripassu charge on the current assets of the Company.

18) Term loan of Rs.22 Crores from Axis Bank Limited is secured by:

a) 2nd charge on land and buildings of the Company at Golf links, New Delhi.

b) Subservient charge on the entire movable fixed assets of the company.

19) Term loan of Rs.1.57 Crores from Sundaram Finance Limited is secured by way of Exclusive 1st charge on Cane Harvester Machine at Unit-II, Mundiampakkam.

20) Working capital limit of Rs.191 Crores from consortium of bankers are secured by:

a) 1st paripassu charge on the current assets of the Company

b) 2nd paripassu charge on the fixed & immovable assets of Unit-I at Varadarajnagar.

c) 3rd paripassu charge on the fixed & immovable assets of cogeneration plant of Unit-II at Mundiampakkam.

d) 4th paripassu charge on the fixed & immovable assets of sugar plant of Unit-II at Mundiampakkam.

21) Short term financial assistance of Rs.35 Crores from Yes Bank Limited is secured by:

a) 1st paripassu charge on the entire current assets of the Company.

b) Exclusive 1st charge on 80 cents of land of the Company at Pappanaickenpalayam, Coimbatore.

8. There were no transactions entered into with Micro, Small and Medium Enterprises (MSME) during the year or in the earlier year. Accordingly, no amount is due to Micro, Small and Medium Enterprises in respect of sundry creditors. Further, no interest has been paid or is accrued and payable to MSME under the circumstances either in this year or the earlier year.

15. Provision towards Gratuity and superannuation schemes has been made upto date as per the demands received from Life Insurance Corporation of India and HDFC Standard Life Insurance Company Limited based on actuarial valuation. Provision for leave encashment benefit has been made for the entire amount due and payable as at the close of the year.

Defined Benefit Plan

The employees gratuity fund scheme managed by Life Insurance Corporation of India / HDFC Standard Life Insurance Company Limited is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The estimates of rate of escalation in salary considered in actuarial valuation, taken into account the inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

16. Quantum of Excise Duty included in closing stock of finished goods is Rs. 41,910,823/- (Previous year : Rs. 60,097,625 /-).

17. Borrowing costs capitalized during the year is Rs. 1,795,614/- Previous year : Rs. 835,297/-). Borrowing cost included in Capital Work in progress- Rs. 10,775,604/- (Previous year Rs. 464,984/-)

18. Foreign currency loan (ECB) liability has been restated on 31.3.2011. The exchange difference arising on restatement of the above loan amounting to Rs. 3,579.26 lakhs has been capitalized during the year.

19. Building repair and maintenance includes Rs. 3,073,541/- (Previous year Rs. Nil) being the cost of renovation of the property held under Property Development Division and accordingly the closing inventory value of the immovable property is restated.

20. Interest paid on Fixed deposits include Rs. 338,270 /- (Previous year - Rs. 679,660/-) paid to Ms.Rajshree Pathy, Chairperson and Managing Director in respect of fixed deposits held by her.

21. 110,696 Nos. of Carbon Emission Reductions (CERs) were sold during the year for an value of Rs. 62,887,396/- 22. In terms of AS-28, the company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its Fixed assets. The exercise has not revealed any impairment of assets during the year 2010-11.

23. 1,100,000 Equity Shares at Rs.10/- each at a price of Rs.62/- each including a premium of Rs.52/- per share have been allotted to Ms. Rajshree Pathy, Chairperson and Managing Director on 9th December 2010 on receipt of the entire payment, on exercise of the rights attached to the share warrants. The said 1,100,000 equity shares are subject to lock-in for 3 years upto 9th December 2013.

24. In respect of the property at Delhi wherein the 1st and 2nd floors were acquired during the year 2006-07, the ground floor portion was taken on a long term operational lease of 20 years on a monthly rental of Rs.75,000/- with option to renew for further 20 years on the same terms. The refundable interest free security deposit made and maintained in a separate escrow account with Bank for this purposes is Rs.11,250,000/-.

26. Company during the year ended 31.3.2007 had been awarded a compensation of Rs.4,834,458/- by the State Government in respect of part of land and portion of building thereon acquired by them for extension of National Highway in Mundiampakkam, Villupuram District. A balance amount of Rs.1,183,051/- is due from the State Government.

27. Company during the year ended 31.3.2009 had been awarded a compensation of Rs.810,150/- by the State Government in respect of further acquisition of part of land including structures thereon acquired by them for extension of National Highway in Mundiampakkam, Villupuram District. A balance amount of Rs.563,750/- is yet due from the State Government.

28. The company entered into an out-of-court settlement by payment of Rs.25 crores on account of dispute pertaining to the Derivative transactions with Axis Bank Ltd. The same is written off in the Profit and Loss Account under extraordinary items. Consequent on such settlement, both the parties have withdrawn all actions initiated by each of them and necessary final orders have been obtained.

29. The Company has during the year fulfilled the export obligation of 4500 MTs of white sugar on account of import of raw sugar under advance license scheme.

Notes:

a. The Company has identified business segments as primary segments. The reportable business segments are based on segment results.

c. Inter Segment revenues are recognised at net realisable price as on the date of transaction and are eliminated in consolidation.

d. The Segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

34. Previous year figures have been regrouped wherever necessary to conform to current years classification. Paise are rounded off to the nearest rupee.


Mar 31, 2010

1. Estimated amount of contracts pending to be executed on capital account as on 31.03.2010 is Rs.284.38 lakhs (Previous year :Rs.45.05 lakhs)

2. CONTINGENT LIABILITIES NOT PROVIDED FOR

a. Disputed interest on sales tax for the years 1995-96 to 1997-98 in respect of which stay from High Court at Chennai is obtained Rs.4,249,634/- (Previous year: Rs.4,249,634/-)

b. The Government had fixed the SMP for the sugar season 2003-04 at Rs.730/- per ton linked to 8.5% base recovery and the same has been contested before the Honourable High Court at Chennai which had admitted the petition and stayed the notification. The disputed liability of Rs.99.57 lakhs and the additional sales tax of Rs.2.50 lakhs payable for the financial year 2004-05 has not been provided for in the accounts.

c. The Company has provided a corporate guarantee of Rs.51.94 crores to the banks in respect of Term loan and cash credit facilities sanctioned to the subsidiary company, Trident Sugars Limited. (Previous year Rs.38.82 crores).

d. The Company has filed a review petition before the High Court of Judicature, Madras at Chennai in relation to the writ appeals with respect to purchase tax and the decision in the matter has been deferred by the High Court till disposal of similar issues by the Supreme Court in other cases. Hence no provision is made for other charges, if any, in this regard. The amount is indeterminate at this juncture.

e. The Commissioner of Central Excise (Appeals) has upheld the order of the Central Excise department imposing a penalty of Rs.21 lakhs in the matter of payment of service tax for agency fees and other charges paid towards ECB availed. The company has filed an appeal before CEGAT and the appeal is pending before the said Appellate Tribunal and hence no provision has been made.

f. The company has export obligation of 4,500 tons of white sugar to be fulfilled on or before February 2012 on account of

import of raw sugar under advance license scheme.

g. Electricity generation tax demand of Rs. 248.09 lakhs has been raised in respect of captive consumption of electricity generated from cogeneration division. The same is disputed and contested in appeal. Hence not provided for.

h. The company has contracted to import 26,000 MT of raw sugar and taken forward cover of 13 million USD as on the balance sheet date.

3. SECURED LOANS

1) Term loan from State Bank India with limit of Rs. 12 Crores is secured by:

a) 1st paripassu charge on the fixed assets of Unit-Ill situated at Semmedu, Gingee Taluk, Villupuram District in the state of Tamilnadu

b) Exclusive 1st charge on 5.19 acres of land with buildings thereon situated at Vilankurichi village, Ganapathy, Coimbatore North Taluk, Coimbatore District.

2) Term loan from State Bank of India with limit of Rs. 30 Crores is secured by 1st paripassu charge on the current assets of the Company.

3) Term loan of Rs.25 Crores from State Bank of India is secured by:

a) 1 st paripassu charge on the current assets of the company

b) 1st paripassu charge on the sugar mill assets of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

4) Loan of Rs.9 Crores from State Bank of India is secured by:

a) Exclusive 1st charge on receivables from TNEB

b) 2nd paripassu charge on immovable properties and plant and machineries of Unit-I situated at Varadarajnagar, Periyakulam Taluk, Theni District in the state of Tamilnadu

c) 3rd paripassu charge on immovable properties and plant and machineries of cogeneration plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

d) 4th paripassu charge on immovable properties and plant and machineries of sugar plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

4) Term loan from State Bank of Hyderabad with limit of Rs. 5 Crores is secured by:

a) 1st paripassu charge on the current assets of the Company; and

b) 1st paripassu charge on the fixed assets of sugar plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

5) Term loan of Rs. 13 Crores from State Bank of Hyderabad is secured by:

a) 1st paripassu charge on the current assets of the Company

b) 1st paripassu charge on fixed assets of Unit-I situated at Varadarajnagar, Periyakulam Taluk, Theni District in the state of Tamilnadu

6) Term loan of Rs. 20 Crores from State Bank of Hyderabad is secured by:

a) 1st paripassu charge on the current assets of the Company

b) 1st paripassu charge on fixed assets of cogeneration plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

7) Term loan from State Bank of Mysore with limit of Rs. 10 Crores is secured by:

a) 1st paripassu charge on the fixed assets of Unit-Ill situated at Semmedu, Gingee Taluk, Villupuram District in the state of Tamilnadu

b) 2nd paripassu charge on the fixed assets of Unit-I situated at Varadarajnagar, Periyakulam Taluk, Theni District in the state of Tamilnadu

c) 3rd paripassu charge on co-generation assets of Unit II situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

d) 4th paripassu charge on sugar mill assets of Unit II situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

8) Term loan of Rs. 15 Crores from Bank of India is secured by:

a) 1st paripassu charge on Fixed & movable properties of Unit-I situated at Varadarajnagar, Periyakulam Taluk, Theni District in the state of Tamilnadu and

b) Exclusive 1 st charge on office premises (1 st & 2nd Floor) at New Delhi.

9) Term loans from Bank of India with limit of Rs. 6.60 Crores is secured by:

a) 1st paripassu charge on the block assets of the cogeneration plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

b) 3rd paripassu charge on the co-generation plant of Unit-Ill situated at Semmedu, Gingee Taluk, Villupuram District in the state of Tamilnadu

10) Term loan from Bank of India with limit of Rs. 2 Crores is secured by 1st paripassu charge on the fixed assets of Unit-Ill situated at Semmedu, Gingee Taluk, Villupuram District in the state of Tamilnadu

11) Term loan of Rs. 7 Crores from Bank of India is secured by:

a) 1 st paripassu charge on the current assets of the Company

b) 1st paripassu charge on fixed assets of sugar plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

13) Term loans aggregating to Rs. 33 Crores (State Bank of India Rs. 13 Crores, UCO Bank Rs. 10 Crores and Indian Bank Rs. 10 Crores) are secured by:

a) 1st paripassu charge on the block assets of the cogeneration plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu and

b) 2nd paripassu charge on the current assets of the Company; and

c) 3rd paripassu charge on the fixed assets of Sugar plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

12) Term loans aggregating to Rs. 28.40 Crores (State Bank of India Rs. 12.25 Crores, State Bank of Mysore Rs. 4.90 Crores, Bank of India Rs. 4.90 Crores, UCO Bank Rs. 3.90 Crores and State Bank of Hyderabad Rs. 2.45 Crores) received under the Scheme for Extending Financial Assistance to Sugar Undertakings are secured by:

a) Residual paripassu charge on the fixed assets of Unit-I situated at Varadarajnagar, Periyakulam Taluk, Theni District in the state of Tamilnadu and

b) Residual paripassu charge on fixed assets of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

13) ECB loan of 30 million USD equivalent to Rs. 125.15 Crores is secured by:

a) 1st paripassu charge on the fixed assets of Unit-Ill situated at Semmedu, Gingee Taluk, Villupuram District in the state of Tamilnadu

b) 2nd paripassu charge on the current assets of sugar and co-generation plants of Unit-Ill situated at Semmedu, Gingee Taluk, Villupuram District in the state of Tamilnadu, which is subservient to the 1st charge in favour of working capital lenders of Unit-Ill.

14) Term loan of Rs.17.49 Crores from Sugar Development Fund, Government of India is secured by way of exclusive second charge on movable and immovable properties of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu.

15) Term loan of Rs.21.10 Crores from Sugar Development Fund, Government of India is secured by way of 1st paripassu charge on movable and immovable properties of Unit-Ill situated at Semmedu, Gingee Taluk, Villupuram District in the state of Tamilnadu.

16) Working capital limits of Rs. 179.12 Crores from consortium bankers are secured by:

a) 1 st paripassu charge on the current assets of the Company

b) 2nd paripassu charge on the fixed assets of Unit-I situated at Varadarajnagar, Periyakulam Taluk, Theni District in the state of Tamilnadu

c) 3rd paripassu charge on the fixed assets of cogeneration plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

d) 4th paripassu charge on the fixed assets of sugar plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

17) Short Term Cane Development Loan of Rs.4 Crores from Sugar Development Fund has been collaterally secured by issue of bank guarantee amounting to Rs. 4.40 crores availed from Federal Bank Limited which is secured by creation of 2nd paripassu charge on the current assets of the Company.

18) Short Term Loan of Rs.10 Crores from IDBI Bank is secured by pledge of warehouse receipts covered by raw and processed sugar.

1. No amount is due to Micro, Small and Medium Enterprises in respect of sundry creditors. No interest has been paid or to be payable to such parties. This is as per information available with the company about the status of the parties concerned.

19. Quantum of Excise Duty included in closing stock of finished goods is Rs.60,097,625 /- (Previous year: Rs. 52,672,719/-).

20. Borrowing costs capitalized during the year is Rs. 835,297/- (Previous year: Rs. 168,352,475/-). Borrowing cost included in Capital Work in progress: Rs.464,984/- (Previous year Rs.NIL)

21. Foreign currency loan (ECB) liability has been restated on 31.03.2010. The exchange difference arising on restatement of the above loan amounting to Rs. 949.61 lakhs has been capitalized during the year.

22. Exchange rate fluctuation includes an amount of Rs. 270.51 lacs, being the hedging charges paid to bank in respect of foreign currency term loan instalment payable.

23. interest receipt of Rs.Nil is credited in capital work in progress.(Previous year: Rs. 343,136/-)

24. Interest paid on Fixed deposits include Rs.679,660/- (Previous Year - Rs.648,935/-) paid to Ms.Rajshree Pathy, Chairperson and Managing Director in respect of fixed deposits held by her.

25. Interest charges is net of amount due Rs.Nil (Previous year - Rs. 10,361,589/-) from Directorate of Sugar, Government of India towards buffer stock interest subsidy claim. An amount of Rs. 249.81 lacs is due from the Government towards buffer subsidy.

26. Carbon credit sales has not been recognized during the year as the procedural formalities had not been completed by the respective authorities during the year. However, the process has been completed since the balance sheet date.

27. In terms of Accounting Standard 28, the company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its Fixed assets. The exercise has not revealed any impairment of assets during the year 2009-10.

28. In terms of special resolution passed at the Extraordinary General Meeting held on 28.05.2009, preferential issue of 1,100,000 equity shares of Rs.10/- each at a price of Rs.62/- (including premium of Rs.52/-) per share to Ms.Rajshree Pathy, Chairperson and Managing Director was approved by the shareholders. The amount of Rs. 17,050,000/- secured as initial payment within 15 days from the date of resolution has been treated as share application money. Pursuant to the same, 1,100,000 equity warrants has been allotted on 11.06.2009. The same is convertible into 1,100,000 equity shares of Rs. 10/- each within 18 months thereof.

29. In respect of the property at Delhi wherein the 1st and 2nd floors were acquired during the year 2006-07, the ground floor portion was taken on a long term operational lease of 20 years on a monthly rental of Rs.75,000/- with option to renew for further 20 years on the same terms. The refundable interest free security deposit made and maintained in a separate escrow account with Bank for this purposes is Rs. 11,250,000/-.

30. Company during the year ended 31.3.2007 had been awarded a compensation of Rs.4,834,458/- by the State Government in respect of part of land and portion of building thereon acquired by them for extension of National Highway in Mundiampakkam, Villupuram District. Abalance amount of Rs. 1,183,051/- is due from the State Government.

31. Company during the year ended 31.3.2009 had been awarded a compensation of Rs.810,150/- by the State Government in respect of further acquisition of part of land including structures thereon acquired by them for extension of National Highway in Mundiampakkam, Villupuram District. A balance amount of Rs.563,750/- is due from the State Government.

31. Company during the year ended 31.3.2010 had been awarded a compensation of Rs.691,154/- by the State Government in respect of further acquisition of part of land including structures thereon acquired by them for extension of National Highway in Mundiampakkam, Villupuram District. The surplus realized has been shown under exceptional item.

32. The company had filed a suit in the Madras High Court to declare void the derivative contract entered into with Axis Bank. The bank raised a claim of Rs.40.28 crores and also filed a petition with Debt Recovery Tribunal, Mumbai. The Company has obtained a Status Quo orderfrom the Division Bench of the Madras High Court.

The Bank had then filed a petition in the Supreme Court seeking transfer of the Companys suit from the Madras High Court to the Debt Recovery Tribunal, Mumbai. The Supreme Court in its judgement on 29th July 2009 has dismissed the banks petition seeking transfer of the case from the Madras High Court to the Debt Recovery Tribunal, Mumbai. The case will now be heard in the Madras High Court in due course. As the matter is still subjudice, no provision has been made for this amount or any part thereof in the accounts.

 
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