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Notes to Accounts of Sakuma Exports Ltd.

Mar 31, 2016

Terms/Rights attached to Equity Shares

The Company has one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting except in case of Interim Dividend.

During the year ended 31 March 2016, the amount of per share recognized as distributions to equity shareholders was Rs. 1 per share (31st March 2015 Rs.1 per share).

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note-: As per records of the company, including register of shareholders and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

Note:-Tax on Interim Dividend

During the relevant financial year, the company has received dividend from its foreign subsidiary, GKM General Trading LLC, of Rs.1,45,79,476/- on which the company is liable to pay Rs.21,86,921/- as divided tax u/s 115 BBD of the Income Tax Act.

As the company has received dividend from the foreign subsidiary the tax paid or payable on the dividend received from foreign subsidiary is eligible for set-off against liability of dividend distribution tax payable u/s 115-O of the Act, hence forth after netting of balance amount of dividend paid of Rs. 18,46,467/- is liable for dividend distribution tax that amounts to Rs. 3,76,250/- for which separate provision for dividend distribution tax has been made under the head Other Current Liabilities.

Note 1 Short-term borrowings:

i) Cash Credit and Packing Credit from Corporation Bank are secured against Hypothecation of Inventory, Book debts, Current assets, Fixed assets other than vehicles and Leasehold land, Lien on Term Deposits and pledge of shares of promoters of the company. Cash Credit is repayable on demand and carries interest @13.85% p.a . Packing credit Loan is repayable within 90 days and carries interest rate @ 10.75% p.a up to the period of Credit.

ii) Cash Credit and Packing Credit from Axis Bank are secured against charge on the entire current assets, Hypothecation of Fixed assets other than vehicles and Leasehold land, Lien on Term Deposits, personal guarantees of Directors and pledge of shares of promoters of the company. Cash Credit is repayable on demand and carries interest @12.50% p.a . Packing credit Loan is repayable within period up to 120 days and carries interest rate prevailing on the date of withdrawals.

iii) Cash Credit and Packing Credit from Indian Overseas Bank are secured against Hypothecation of Inventory, Book debts, Lien on Term Deposits, personal guarantees of Directors and pledge of shares of promoters of the company. Packing credit Loan is repayable within period up to 120 days and carries interest rate as per the circular in force on the date of withdrawals.

iv) Cash Credit and Packing Credit from Union Bank of India are secured against Hypothecation of Inventory, Book debts, Fixed assets other than vehicles and Leasehold land, Lien on Term Deposits, personal guarantees of Directors and pledge of shares of promoters of the company. Packing credit Loan is repayable depending upon the contract and carries interest rate prevailing on the date of withdrawals.

v) Secured Short Term Borrowings Limit of the company has been increased by Rs.45 Crores during the year. Short Term Borrowings amounting Rs.35 Crore from Rabobank are secured pari passu with existing banker against stocks, receivables, other current assets, collateral property and collateral security as fixed Deposit i.e. 15% of Total Facility Limit. Further Short Term Borrowing of Rs. 10 Crore from RBL Bank Limited are secured paripassu with existing bankers against Current Assets , Stocks, Book Debts and Hypothecation of Fixed assets of the company excluding Vehicles and Windmill landed property Lien on Term Deposits and personal guarantees of Directors . During the year company has availed packing credit rupee loan against enhanced limit at rate of interest as prevailing on date of withdrawals.

vi) Unsecured Short Term Borrowings of the company are repayable on demand and carrier interest rate @ 10% p.a.

2 Details on derivatives instruments and unhedged foreign currency exposures

The following derivative positions are open as at 31 March, 2016. These transactions have been undertaken to act as economic hedges for the Company’s exposures to various risks in foreign exchange markets and may/may not qualify or be designated as hedging instruments. The accounting for these transactions is stated in Notes 2.17, 2.18 and 2.19.

(a) Forward exchange contracts which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date for receivables.

(i) Outstanding forward exchange contracts entered into by the Company as on 31 March, 2016

3 The Balance of Sundry Debtors , Sundry Creditors , Loans and Advances have been taken as per books awaiting respective confirmation and reconciliation.

4 The Company has not received any Memorandum (As required to be filled by the Supplier with the notified authority under the Micro Small and Medium Enterprises Development Act 2006) claiming their status as Micro Small and Medium Enterprises. Accordingly the amount paid/ payable together with the interest if any have not been given.

Note 5 Disclosures under Accounting Standards

Employee benefit plans

6 Defined contribution plans

The Company makes Provident Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 4,51,726/- (Year ended 31 March, 2015 Rs.4,39,683) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

7 Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

In Compliance with the Accounting Standard 22 “Accounting for Taxes on Income “issued by ICAI which has become mandatory. The Company has reversed Deferred Tax Liability(Net) amounting to Rs.10,14,335/- for the Current year (Previous year reversal of Deferred Tax Liability (Net) amounting to Rs.12,87,703/-) and the same has been transferred to Statement of Profit and Loss.

Note 8 Previous year’s figures

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


Mar 31, 2015

1 Corporate information

Sakuma Exports Limited(Government of India recognised Star Trading House) is a public limited company domiciled in India and incorporated under the provisions of Companies Act 1956. Its shares are listed on Bombay Stock Exchange(BSE) and National Stock Exchnage (NSE). The company is engaged in exports of commodities like Sugar, Rice,Maize.Sesame Seeds. Ground Nuts,Pulses,Oil Meal, Raw Cotton etc. and Import of commodities like Sugar, Coal and Oil .The company caters to both domestic and international markets.

2.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guide lines issued by the Securities and Exchange Board of India (SEBI). The financial statements have been prepared on accrual basis under the historical cost convention on the accrual basis of accounting, unless stated otherwise. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except for depreciation and amortization as described in the accounting policy on depreciation and amortization.

2.2 Contingent liabilities and commitments (to the extent not provided for)

As at As at Particulars 31 March, 2015 31 March, 2014

(A) Contingent liabilities

(a) Claims against the Company not acknowledged as debt with respect to

(i) Sugar Import Consignment pertaining to year 2009-10 USD 11,23,425 & USD 11,23,425 &

Rs.60,43,987/- and Rs.60,43,987/and

Interest @8% Interest @8%

(ii) Quality issue of Goods Supplied 15,87,450 15,87,450

(iii) Disputed Income tax demands for AY 2009-10 14,60,411 14,60,411

(B) Commitments

(a) Uncalled liability

(i) Share Subscription Money payable for GKM General Trading LLC AED 117,600 AED 117,600

(ii) Share Subscription Money payable for Sakuma Exim DMCC AED 55 AED 55

(b) Other commitments

(i) Outstanding Currency Forward Contracts (Sale USD 27,850,691.02 USD 17,682,508

(ii) Outstanding Currency Forward Contracts (Buy) USD 4,194,000 USD 2,683,000

2.3 Details on derivatives instruments and unhedged foreign currency exposures

The following derivative positions are open as at 31 March, 2015. These transactions have been undertaken to act as economic hedges for the Company's exposures to various risks in foreign exchange markets and may / may not qualify or be designated as hedging instruments. The accounting for these transactions is stated in Notes 2.8, 2.18 and 2.19.

(a) Forward exchange contracts which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date for receivables.

(i) Outstanding forward exchange contracts entered into by the Company as on 31 March, 2015

2.4 Corporate Social Responsibilty Expenditure:

Company has set apart an amount of Rs17,79,866 to be spent as Corporate Social Responsibilty expenditure, however, as 31st March, 2015 the said amount is unspent.

Note 3 Disclosures under Accounting Standards:

3 Employee benefit plans:

3.1 Defined contribution plans:

The Company makes Provident Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs4,39,683/- Year ended 31 March, 2014 Rs.3,01,702) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

3.2 Defined benefit plans:

The Company offers the following employee benefit schemes to its employees:

(i) Gratuity

The following table sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements:

Note 4 Disclosures under Accounting Standards:

Note Particulars

4.1 Related Party transactions Details of related parties:

Description of relationship Names of related parties

Holding Company Sakuma Exports Limited

Subsidiaries Sakuma Exim DMCC (UAE)

GKM General Trading LLC (UAE)

Sakuma Exports Pte Ltd (Singapore)

Sakuma Exports (Ghana) Ltd (Subsidiary of Sakuma Pte Ltd)

Sakuma Exports (Tanzania) Private Ltd (Subsidiary of Sakuma Pte Ltd)

Key Management Personnel (KMP) Mr.Chander Mohan

Mr. Saurabh Malhotra

Relatives of KMP Mrs.Shipra Medirrata

Mrs Kusum Malhotra

Company in which KMP / Relatives of KMP Sakuma Finvest Private Limited can exercise significant influence

GMK System and Logistics Pvt Ltd

Sakuma Infrastructure and Realty Private Limited

C.K.K Exports pvt Ltd


Mar 31, 2014

1.1 Contingent liabilities and commitments (to the extent not provided for)

Particulars As at As at 31 March,2014 31 March,2013

(i) Contingent liabilities

(a) Claims against the Company not acknowledged as debt with respect to

i) Sugar Import Consignment petaining to year 2009-10 USD 11,23,425 USD 11,23,425 & 60,43,987/- &Rs. 60,43,987/- Interest @8% Interest @8%

ii) Quality issue of Goods Supplied 15,87,450 15,87,450

iii) Disputed Income tax demands for 14,60,411 14,60,411 AY 2009-10

(ii) Commitments

(a) Uncalled liability

i) Share Subscription Money payable for GKM General Trading LLC AED 117600 AED 117600

ii) Share Subscription Money payable for Sakuma Exim DMCC AED 55 AED 55

(b) Other commitments

i) Outstanding Currency Forward USD 176,82,508 USD 58,29,899 Contracts (Sale)

ii) Outstanding Currency Forward USD 26,83,000 - Contracts (Buy)

1.2 Details on derivatives instruments and unhedged foreign currency exposures

The following derivative positions are open as at 31 March, 2014. These transactions have been undertaken to act as economic hedges for the Company''s exposures to various risks in foreign exchange markets and may / may not qualify or be designated as hedging instruments.

The accounting for these transactions is stated in Notes 2.8, 2.18 and 2.19.

(a) Forward exchange contracts which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of for receivables.

(i) Outstanding forward exchange contracts entered into by the Company as on 31 March, 2013

Note 2 Disclosures under Accounting Standards

2 Employee benefit plans

2.1 Defined contribution plans

The Company makes Provident Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits.

The Company recognised Rs. 3,01,702/- (Year ended 31 March, 2013 Rs.2,44,243) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

2.2 Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

The following table sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements:

Note 3 Disclosures under Accounting Standards (contd.)

3.1 Details of related parties:

Description of relationship Names of related parties

Holding Company Sakuma Exports Limited

Subsidiaries Sakuma Exim DMCC (UAE)

GKM General Trading LLC (UAE)

Sakuma Exports Pte Ltd (Singapore)

Sakuma Exports (Ghana) Ltd (Subsidiary of Sakuma Pte Ltd)

Sakuma Exports (Tanzania) Private Ltd (Subsidiary of Sakuma Pte Ltd)

Key Management Personnel (KMP) Mr. Chander Mohan

Mr. Saurabh Malhotra

Relatives of KMP Ms. Shipra Medirrata

Mrs Kusum Malhotra

Company in which KMP / Relatives of KMP Sakuma Finvest Private Limited can exercise significant influence GMK System and Logistics Pvt Ltd

Sakuma Infrastructure and Realty Private Limited C.K.K Exports pvt Ltd

The Company has recognised deferred tax asset on unabsorbed depreciation to the extent of the corresponding deferred tax liability on the difference between the book balance and the written down value of fixed assets under Income Tax (or) The Company has recognised deferred tax asset on unabsorbed depreciation and brought forward business losses based on the Management''s estimates of future profits considering the non-cancellable customer orders received by the Company.

Note 4 Previous year''s figures

4.1 Previous year''s figures have been regrouped /reclassified whereever necessary to correspond with the current year''s classification or disclosure.


Mar 31, 2013

1 Corporate information

Sakuma Exports Limited(Government of India recognised Trading House) is a public limited company domciled in India and incorporated under the provisions of Companies Act 1956. Its shares are listed on two stock exchange in India.The company is engaged in exports of commodities like Sugar, Rice,Maize.Sesame Seeds.Ground Nuts,Pulses,Oil Meal, Raw Cotton etc.The company caters to both domestic and international markets.

2.1 Details on derivativgs instruments and unhedged foreign currency exposures

The following derivative positions are open as at 31 March, 2013. These transactions have been undertaken to act as economic hedges for the Company’s exposures to various risks in foreign exchange markets and may / may not qualify or be designated as hedging instruments. The accounting for these transactions is stated in Notes 2.8, 2.18 and 2.19. (a) Forward exchange contracts which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency resuired or available at the settlement date of for receivables. (i) Outstanding forward exchange contracts entered into by the Company as on 31 March, 2013

Note 3 Disclosures under Accounting Standards

3 Employee benefi t plans

3.1 Defi ned contribution plans

The Company makes Provident Fund contributions to defi ned contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specifi ed percentage of the payroll costs to fund the benefi ts. The Company recognised Rs. 2,44,243/- (year ended 31 March, 2012 Rs. 2,45,676) for Provident Fund contributions in the Statement of Profi t and Loss. The contributions payable to these plans by the Company are at rates specifi ed in the rules of the schemes.

3.2 Defi ned benefi t plans

The Company offers the following employee benefi t schemes to its employees:

i. Gratuity

The following table sets out the funded status of the defi ned benefi t schemes and the amount recognised in the fi nancial statements:

4.1 Segment information

The Company has identifi ed business segments as its primary segment and geographic segments as its secondary segment. Business segments are primarily Trading in Commodities and Windmill Operation. As windmill opeartion is not meeting any of the criteria hence forth, we are not providing the primary segment information.

The Company has recognised deferred tax asset on unabsorbed depreciation to the extent of the corresponding deferred tax liability on the difference between the book balance and the written down value of fi xed assets under Income Tax (or) The Company has recognised deferred tax asset on unabsorbed depreciation and brought forward business losses based on the Management’s estimates of future profi ts considering the non-cancellable customer orders received by the Company.

Note 5 Previous year’s fi gures

5.1 Previous year’s fi gures have been reg rouped / reclassifi ed wherever necessar y to cor respond with the cur rent year’s classifi cation / disclosure.


Mar 31, 2012

1 Corporate information

Sakuma Exports Limited(Government of India recognised Trading House) is a public limited company domciled in India and incorporated under the provisions of Companies Act 1956. Its shares are listed on two stock exchange in India.The company is engaged in exports of commodities like Sugar, Rice, Maize, Sesame Seeds,Ground Nuts,Pulses,Oil Meal etc. The company caters to both domestic and international markets.

2.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention for categories of fixed assets. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except for those stated below

3.1 contingent liabilities and commitments (to the extent not provided for)

Particulars As at As at 31st March, 2012 31st March, 2011

(i) contingent liabilities

(a) Claims against the Company not acknowledged as debt with respect to

i) Sugar Import Consignment pertaining to year 2009-10 USD 11,23,425 & USD 11,23,425

60,43,987/- and & 60,43,987/- Interest @8% and Interest @8%

ii) Quality issue of Goods Supplied 1,587,450 1,587,450

iii) Stop Payment of Cheque 1,368,260 1,368,260

b) Disputed Income tax Demands for Ay 2002-03, 2003-04, 2009-10 1,985,242 79,192,722

(ii) commitments # Other commitments

i) Share Subscription Money payable for GKM General Trading LLC AED 117600 -

ii) Outstanding Currency Forward Contracts USD 4,39,73,000 USD 37,86,000



3.2 Disclosures required under Section 22 of the Micro, Small and Medium enterprises Development Act, 2006

In the absence of information regarding vendors covered under Micro, Small and Medium Enterprises Development Act, 2006 disclosures relating to amounts unpaid at the year end together with interest paid/payable under this act has not been given

3.3 Details on derivatives instruments and unhedged foreign currency exposures

The following derivative positions are open as at 31 March, 2012. These transactions have been undertaken to act as economic hedges for the Company's exposures to various risks in foreign exchange markets and may / may not qualify or be designated as hedging instruments. The accounting for these transactions is stated in Notes 2.8, 2.18 and 2.19.

(a) Forward exchange contracts which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of for receivables.

(i) Outstanding forward exchange contracts entered into by the Company as on 31 March, 2012

4 EMPLOYEE Benefit PLANS

4.1 Defined contribution plans

The Company makes Provident Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 2,45,676/ — (Year ended 31 March, 2011 Rs. 93,131) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

4.2 Segment information

The Company has identified business segments as its primary segment and geographic segments as its secondary segment. Business segments are primarily Trading in Commodities and Windmill Operation. As windmill opearation is not meeting any of the criteria. Hence worth, we are not providing the primary segment information.

Note: The geographic bifurcation of the Company's revenues and segment assets are as Under:

Note: Figures in bracket relates to the previous year

The Company has recognised deferred tax asset on unabsorbed depreciation to the extent of the corresponding deferred tax liability on the difference between the book balance and the written down value of fixed assets under Income Tax (or) The Company has recognised deferred tax asset on unabsorbed depreciation and brought forward business losses based on the Management's estimates of future profits considering the non-cancellable customer orders received by the Company.

5 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year as classification / disclosure.


Mar 31, 2011

1. Redemption of Preference Shares

During the year company has redeemed 10,00,092 5% Cumulative Preference shares of Rs.100 each at par. Accordingly an amount of Rs.10,00,09,200/- has been transferred to Capital Redemption Reserve from Profit and Loss account.

2. Employee Benefits :

The disclosures required under Accounting Standard 15 "Employee Benefits" notifed in the Companies (Accounting Standards) Rules 2006, are given below:

Defined Contribution Plan

Contribution to Defined Contribution Plan, recognized and charged to profit and loss account for the year are as under:

Particulars 2010-11 2009-2010

Employers Contribution 93,131 92,407 to Provident Fund

Defined Benefit Plan

Defined Benefit Plan i.e. gratuity is recognized on accrual basis based on the actuarial valuation in accordance with the requirement of Accounting Standard 15 (Revised) – "Employee Benefits".

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 particulars under the AS 15 (Revised) are furnished below

3. Related Party Disclosure

Related party disclosure as required by Accounting Standard – 18, "Related Party Disclosure" issued by the Institute of Chartered Accountants of India -are given below:

A. Name and Relationship of the Related Parties:

Name of the related Party Nature of Relations

Key Management Personal

Mr. Chander Mohan Executive Chairman

Mr Saurabh Malhotra Managing Director Others

Mrs. Shipra Medirrata Director & Relative of Key Management Personal

Kusum Malhotra Relative of Key Management Personal

Vanita Malhotra Relative of Key Management Personal

Sakuma Finvest Private Ltd Enterprise over which Directors have significant Infuence

Sakuma Import and Export Private Ltd

Sakuma International Marketing Pvt Ltd

CKK Exports Pvt Ltd.

Note: Related party relationship is as defned by the company and relied upon by the Auditor.

4. Contingent Liabilities

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and are disclosed by way of notes to Financial Statements.

Contingent Liabilities not provided for in respect of:

(Amount in Rupees) Particulars 2010-11 2009-10

Disputed income tax demand for the A.Y 2002-03 pending before Commissioner of Income Tax 2,45,931 2,45,931 for waiver of Interest

Disputed income tax demand for the 2,78,900 2,78,900 A.Y 2003-04 pending before Assessing offcer (ITAT has reverted to AO on statistical ground) (Company has already made the payment of the tax demand)

Disputed income tax demand for the 32,61,735 32,61,735 A.Y 2005-06 pending before Income Tax Appellate Tribunal.(Company has already made Payment of Rs.10,00,000 against the demand)

Disputed income tax demand for the 15,87,450 15,87,450 A.Y 2008-09 pending before Commissioner of 7,54,06,156 Income Tax (Appeal).Dispute due to quality issue of goods supplied which were rejected by overseas buyer

Dispute u/s 138 of the Negotiable 13,68,260 13,68,260 Instruments Act for stopping on account payment.

Claim not acknowledge as debt

During the last year i.e. FY 2009-10 the company paid 10 % advance of USD 2,10,600 equivalent to Rs.96.22 Lacs for import of sugar against Contract . However seller dispatched different quality of sugar, therefor company rejected the consignment. The seller then fled an arbitration petition for breach of contract claiming damages. The Refned Sugar Association, London has passed the arbitration order against the company awarding damages of USD 11,23,425, Rs.60,43,987 and Interest @8% till the payment is made. Company is in process of challenging the award in the High Court. Pending dispute, company has not made any provision for the Claimed Damages.

5. Deferred tax

In view of Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India deferred tax liability is provided on timing difference between taxable income and accounting income. Deferred tax asset is recognized on the basis of reasonable/ virtual certainty of their realization. Calculation of Deferred Tax is as follows:

6. In the opinion of the Board, current assets, loans and advances have a value at least equal to the amounts shown in the balance sheet, if realized in the ordinary course of business.

7. impairment of assets

Management of the company does not anticipate any impairment to assets with specifc reference to Windmill assets considering current market value for similar kind of assets even though there is decline in Revenue from Windmill operation.

8. Details about the Micro, Small & Medium Enterprise:-

In the absence of information regarding vendors covered under the Micro, Small and Medium Enterprises Development Act, 2006 Disclosures relating to amounts unpaid as the year end together with interest paid / payable under this act has not been given.

9. Events Occurring after the Balance Sheet Date:-

To the Best of the Knowledge of the Management, there are no events occurring after the balance sheet date that provide additional information materially affecting the determination of the amounts relating to the conditions existing at the Balance sheet date that requires adjustment of assets or liabilities.

10. No amounts are due for deposits as at the balance sheet date to the investor Education and protection Fund.

11. Previous year figures have been regrouped/ rearranged/ reclassifed wherever necessary, to make them comparable with the of the current year.


Mar 31, 2010

1. Employee Benefits :

The disclosures required under Accounting Standard 15 "Employee Benefts" notified in the Companies (Accounting Standards) Rules 2006, are given below:

Defined Benefit Plan

During the year company has changed its policy for recognising Defined Benefit Plan i.e. gratuity from cash basis to accrual basis based on the actuarial valuation in accordance with the requirement of Accounting Standard 15 (Revised) – "Employee Benefts". Due to this change of policy profit for the year is lower by Rs.2,40,735 and liability is over by Rs.2,40,735

2. Related Party Disclosure

Related party disclosure as required by Accounting Standard – 18, "Related Party Disclosure" issued by the Institute of Chartered Accountants of India -are given below:

Name of the related Party Nature of Relations

Key Management Personal

Mr Saurabh Malhotra Managing Director

Mr. Chander Mohan Chairman - Executive Director

others

Mrs. Shipra Medirrata Director & Relative of Key Management Personal

Kusum Malhotra Relative of Key Management Personal

Vanita Mlhotra Relative of Key Management Personal

Sakuma Finvest Private Ltd Enterprise over which Directors have Significant Influence

Sakuma Import and Export Private Ltd

Sakuma International Marketing Pvt Ltd

Note: Related party relationship is as defined by the company and relied upon by the Auditor.

Figures in parenthesis represents previous year figure

3. Contingent Liabilities

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and are disclosed by way of notes to Financial Statements.

Contingent Liabilities not provided for in respect of:

(Amount in Rupees)

Particulars 2009-10 2008-09

Disputed income tax demand for the A.Y 2002-03 pending before CIT (Appeal). 2,45,931 2,45,931

Disputed income tax demand for the A.Y 2003-04 pending before Assessing 2,78,900 2,78,900

office (ITAT has reverted to AO on statistical ground) (Company has already made the payment of the tax demand) .

Disputed income tax demand for the A.Y 2005-06 pending before CIT (Appeal). 32,61,735 -

Disputed income tax demand for the A.Y 2006-07 pending before CIT (Appeal). 20,055 -

(The demand is after adjusting the refund of Rs.57,014)

Dispute due to quality issue of goods supplied which were rejected by overseas 15,87,450 15,87,450

buyer

Dispute u/s 138 of the Negotiable Instruments Act for stopping on account 13,68,260 13,68,260 payment.



Claim not acknowledge as debt

During the year the company had paid 10 % advance of USD 2,10,600 equivalent to Rs.96.22 Lacs for import of Brazilian White sugar against Contract No.2158 S (58U1528). However as the seller sent Refined Granulated Sugar under the guise of Brazilian White Sugar, the company rejected the consignment. The seller has fled an arbitration petition for breach of contract claiming damages of USD 4,07,180 and Rs.35.17 Lacs plus additional cost to be incurred and on the other hand company is in process of fling a legal suit against the seller. Pending the dispute company has not made any provision for the advance payment of USD 2,10,600 i.e. Rs.96.22 Lacs.

4. In the opinion of the Board, current assets, loans and advances have a value at least equal to the amounts shown in the balance sheet, if realized in the ordinary course of business.

5. Managerial remuneration under section 198, 309 and other applicable provisions of the Companies Act, 1956 read with schedule - XIII of the Companies Act, 1956 paid or payable during the financial year to the Directors are as under:

6. Segment Reporting

Primary Segment

The company is engaged in trading of commodities & Wind Power Generation. Information is given below

The above information does not include information pertaining to sale of power as the sale of power is done only in domestic market.

7. Impairment of Losses

For the Current Year under review as required by the Accounting Standard - 28, Management is of the opinion that no there is no loss on account of impairment of fixed assets

8. Details about the Micro, Small & Medium Enterprise:-

In the absence of information regarding vendors covered under the Micro, Small and Medium Enterprises Development Act, 2006 Disclosures relating to amounts unpaid as the year end together with interest paid / payable under this act has not been given.

9. Events Occurring after the Balance Sheet Date:-

To the Best of the Knowledge of the Management, there are no events occurring after the balance sheet date that provide additional information materially affecting the determination of the amounts relating to the conditions existing at the Balance sheet date that requires adjustment of assets or liabilities.

10. No amounts are due for deposits as at the balance sheet date to the investor Education and protection Fund.

11. Previous year figures have been regrouped/ rearranged/ reclassified wherever necessary, to make them comparable with the figures of the current year.

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