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Notes to Accounts of Shree Renuka Sugars Ltd.

Mar 31, 2016

d) The Company has only one class of equity shares . The company declares and pays dividend in Indian rupees . The holders of equity shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share .

e) 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 dues . The distribution will be in proportion to the number of equity shares held by the shareholders .

g) The Board at its meeting held on May 27, 2014, allotted 257,491,592 Equity Shares of face value of '' 1/- each, for a price of '' 20.08 per Equity Share, aggregating to '' 5,170.43 mn to M/s Wilmar Sugar Holdings Pte. Ltd. Consequently Wilmar Sugar Holdings Pte. Ltd, holds 27.72% of the enhanced equity share capital of the company, and paid-up Equity share capital of the company had increased from '' 671.32 mn to '' 928.81 mn for the Financial year ended 31st March 2015.

i) Capital Reserve consist of Subsidy received from Government of Karnataka for commissioning of Co-Generation plant located at Munoli Unit, for supply of excess power to the State grid.

ii) General reserve is primarily created to comply with the requirements of section 123 of the Companies Act, 2013 .

This is a free reserve and can be utilized for any general purpose like issue of bonus shares , payment of dividend , buy back of shares etc. Balance in General Reserve of '' 3166.02 Mn was transferred back to Surplus/(Deficit) in statement of profit and loss, due to accumulated losses during the financial year ended 31st March 2015.

iii) Debenture Redemption Reserve is created to the extent of 25% of the Non convertible debentures (being privately placed) equally over the period of the debenture before maturity, as per Rule 18 (7) of the Companies (shares and debentures) Rules, 2014 and Section 71 of the Companies Act, 2013.During the year the company has created '' 125 Mn of debenture redemption reserve on outstanding amount of Non Convertible debentures.

iv) Revaluation Reserve : Refer Note 1 of Note 12A

v) Foreign Currency Monetary Item Translation Difference Account (FCMITDA) represents unamortized foreign currency fluctuation loss on External commercial borrowings of US $20 Mn utilized for purchase of shares of overseas subsidiary. The company has exercised the option available in AS11 para 46A (which was inserted by Ministry of corporate affairs vide its notification dated 29th Dec, 2011).

Nature of Security

a) Non-Convertible Debentures:

(i) 1500 Redeemable Non-Convertible Debentures (11.70%) of '' 1,000,000 each, secured by first pari-passu charge on movable and immovable assets of the company and are redeemable at par on April 02, 2017.

(ii) 1000 Redeemable Non-Convertible Debentures (11.30%) of '' 1,000,000 each , secured by first pari-passu charge on movable and immovable assets of the company and are redeemable at par on Dec 24, 2017.

b) Term-Loans

Rupee Term Loan availed from Indian Renewable Energy Development Authority (IREDA) are secured by first and exclusive charge on the movable and immovable assets of the companies Co-Generation units located at Panchganga and Ajinkyatara.

Term loan from other banks and financial institutions are secured by first pari-passu charge on movable and immovable assets of the company.

From Others:

SDF Loans amounting to '' 667.61 Mn @ 4% p.a., are secured by exclusive second charge on movable and immovable assets of the company.

SDF Loans amounting to '' 312.82 Mn @ 7% p.a., are secured by pari-passu first charge on movable and immovable assets of the company.

Interest Accrued but not due represents interest on certain long-term borrowings, where the payment of interest has also been deferred for a period of time and is therefore considered to be in nature of borrowings and included as a part of secured loans under Long term borrowings.

Unabsorbed business losses have been recognized as deferred tax assets as there is virtual certainty that such deferred tax asset can be realized against future taxable profits in the forthcoming years.

Nature of Security :

Working Capital facilities from Banks are secured by hypothecation of stocks, books debts and other current assets and third charge on movable and immovable fixed assets of the company.

* There is no principal amount and interest overdue to the Micro and Small Enterprises. During the year no interest has been paid to such parties. (This information have been determined to the extent such parties have been identified on the basis of information available with the company.

Note-

1. Note on revaluation of Fixed assets:- Fixed assets are shown at original cost of acquisition less accumulated

depreciation. Fixed Assets have been revalued as on 31.03.2016,the surplus arising from the revaluation has been transferred to "Revaluation Reserves" and shown under the head "Reserves and Surplus". As the Fixed Assets were revalued on the last day of the Balance Sheet, no depreciation has been provided on revalued figures.

* Trade Receivable (over six months) include '' 19.6 Mn (Previous year '' 19.6 Mn) due from Associate company, maximum outstanding '' 767.735 Mn (Previous year '' 718.60 Mn) during the year.

Balances with banks in deposit accounts include amounts that have been provided as margin money or those that have been pledged with government authorities towards guarantees, etc.

* Other Advances include '' Nil (Previous year '' 0.70 Mn) due from an officer of the company, maximum outstanding '' Nil (Previous year '' 1.30 Mn) during the year.

Note 1. Other Notes to the Financial Statements:

i. Excise Duty on Finished Goods

Excise duty is generally provided on manufacture of goods, which are not exempt from the payment of duty. However, since the Company''s finished goods are not segregated at the time of production into those for sale in domestic markets and those for sale in export markets, the Company is unable to determine the exact liability towards excise duty on finished goods. Accordingly, excise duty is provided/ paid only at the time of clearance of the goods from the factory.

vi. Balances appearing under the head trade payables, trade receivables, loans and advances are subject to confirmation, adjustments, if any, on the receipt/reconciliation of such accounts.

vii. In terms of accounting standard AS 28 on impairment of assets, there was no impairment indicators exist as of reporting date as per the internal management estimates done and hence no impairment charge is recognized during the year under review.

xiv. In accordance with Companies (Accounting Standards) Amendment Rules 2009 as amended by Companies (Accounting Standards) (Second Amendment ) Rules 2011 as per AS-11,the Company exercised the option of adjusting exchange differences arising on long term foreign currency monetary items related to acquisition of depreciable capital assets in the cost of assets to be depreciated over the balance life of the assets and other long term monetary item in the "Foreign Currency Monetary Item Translation Difference Account" to be amortized over the period of loan.

Primary Segment Information (by business segments)

Composition of business segment

Segment

(a) Sugar White Sugar, Molasses, Baggasse

(b) Trading Trading of White and Raw Sugar, Coal, Molasses, MG Alcohol (c ) Co-Generation Electricity, Steam, Coal ash, Bagasse ash

(d) Ethanol De-natured Ethanol, Rectified Spirit, De-natured Spirit, Extra-nature Alcohol, Ethanol,

(e) Other Bio-Compost, Press Mud.

Notes :

1. Revenue within India and Outside India are bifurcated based on sales to customers situated in India and Outside India.

2. Segment Assets Investments, Loans and Advances,Trade Receivables and Other assets bifurcated based on situated within India and Outside India.

3. Segment Liabilities, Borrowings, Trade Payables and Other Liabilities bifurcated based on situated within India and Outside India.

xvii. Related Party Disclosures Related parties

(a) Subsidiary Companies

i. Renuka Commodities DMCC, Dubai (UAE)

ii. Parana Global Trading (FZE), Sharjah (UAE)( Operation closed on 06th July 2015)

iii. Shree Renuka Agri Ventures Limited

iv. KBK Chem-Engineering Private Limited

v. Gokak Sugars Limited

vi. Shree Renuka Global Ventures Limited, Mauritius

vii. Lanka Sugar Refinery Company (Private) Limited, Srilanka.

viii. Monica Trading Private Limited

ix. Shree Renuka East Africa Agriventures PLC, Ethiopia.

x. Shree Renuka Tunaport Private Limited

xi. Shree Renuka International PTE, Singapore

(b) Associate Companies

i. Khandepar Investments Private Limited

ii. Vantamuri Trading and Investments Limited

iii. Murkumbi Investments Private Limited

iv. Renuka Energy Resource Holdings (FZE), Sharjah

v. Damodar Resource Holdings (FZE), Sharjah

vi. Ravindra Energy Limited

vii. Agri Venture Trading and Investment Private Limited

viii. Adani Wilmar Limited

ix. Wilmar Sugar Pte Limited

x. Great Wall - Wilmar Holding Limited

(c) Key Managerial Personnel

i. Mrs. Vidya Murkumbi - Executive Chairperson

ii. Mr. Narendra Murkumbi - Vice Chairman and Managing Director

iii. Mr. Vijendra Singh - President and Whole Time Director

iv. Mr. K. K. Kumbhat- Chief Financial Officer

v. Mr. D.V. Iyer- Company Secretary and Compliance Officer. (Till 18th July 2015)

vi. Mr. Naveen Manghani- Company Secretary and Compliance Officer. (From 14th August 2015)

xx. During the year ended 31st March 2015, the Company has revised the useful lives of certain fixed assets as per useful life specified in schedule II of the Companies Act, 2013. Accordingly, the carrying value of fixed assets as on 1st April, 2014, has been depreciated over the revised remaining useful lives. As a result of this change, the net depreciation charge for the year ended 31st March 2015 is lower by '' 136.38 mn. Further, an amount of '' 73.83 mn (Net of deferred tax of '' 38.02 mn) representing the carrying value of assets, whose remaining useful life is Nil, as at 1st April, 2014, has been charged to the opening balance of retained earnings as per the transitional provision prescribed in note 7(b) of Schedule II of the Companies Act, 2013.

xxi. For the payment of managerial remuneration to Mrs. Vidya Murkumbi and Mr Vijendra Singh, Whole time directors of the Company for Financial Year 2014-15, the company has obtained the share holder''s approval by way of special resolution, and permission of the Central government is pending.

xxii. The Company has made an investment in its subsidiary company Shree Renuka Global Ventures Ltd., Mauritius. This investment is stated at its carrying amount of '' 18,245.25 Mn., made by this subsidiary company in the step down subsidiary company Shree Renuka do Brasil Participacoes Ltda. , (SRDBPL). SRDBPL together with all its subsidiaries have filed for Protection on 28th September 2015 under Judicial Recovery (Law 11.101/2005-Recuperacao Judicial) in the designated court in the capital of the State of Sao Paulo, Brazil. SRDBPL along with its subsidiaries has filed the proposal for Reorganization Plan before the designated court. Impairment in the value of investments, if any, will be considered after the receipt of the Judgement of the court.

xxiii. Details of Loan Given, Investments made and Guarantee Given Covered U/S 186 (4) of the Companies Act, 2013

a) Loans given to Subsidiaries for business purpose and disclosed in Note 32 (xviii).

b) Investments made are disclosed in Note 13

c) Corporate Guarantees given by the company in respect of loans as at 31st March 2016

xxiv. Previous year''s figures have been regrouped /rearranged wherever necessary to conform to the current year grouping.


Mar 31, 2015

Note 1. Other Notes to the Financial Statements:

i. Excise Duty on Finished Goods

Excise duty is generally provided on manufacture of goods, which are not exempt from the payment of duty. However, since the Company's finished goods are not segregated at the time of production into those for sale in domestic markets and those for sale in export markets, the Company is unable to determine the exact liability towards excise duty on finished goods. Accordingly, excise duty is provided/ paid only at the time of clearance of the goods from the factory.

ii. Leases Payable

The Company has entered into various operating leases for office, residential and factory premises. These are generally short-term leases and cancellable by serving adequate notice. The minimum amount of lease rentals payable on non- cancelable leases is as follows:

iii. Outstanding Commitments

As at 31st March, 2015, the Company had the following outstanding commitments:

S. Outstanding Commitments As at As at No 31st March, 2015 31st March, 2014

A Bank Guarantee 5,012.00 4,163.18

B Corporate Guarantee 16,238.64 18,475.66

C Estimated amount of contract pending for execution 32.70 42.24

iv. Contingent Liabilities

Liabilities classified and considered contingent due to contested claims

As at As at and legal disputes 31st March, 2015 31st March, 2014 Income Tax Demands 101.29 17.00

Excise and Service Tax Demands 496.70 450.93

Sales Tax/VAT Demands 12.99 36.32

Customs Demand 465.12 465.12

Total: 1,076.10 969.37

v. Balances appearing under the head trade payables, trade receivables, loans and advances are subject to confirmation, adjustments, if any, on the receipt/reconciliation of such accounts.

vi. In terms of accounting standard AS 28 on impairment of assets, there was no impairment indicators exist as of reporting date as per the internal management estimates done and hence no impairment charge is recognized during the year under review.

vii. In accordance with Companies (Accounting Standards) Amendment Rules 2009 as amended by Companies (Accounting Standards) (Second Amendment ) Rules 2011 as per AS-11,the Company exercised the option of adjusting exchange differences arising on long term foreign currency monetary items related to acquisition of depreciable capital assets in the cost of assets to be depreciated over the balance life of the assets and other long term monetary item in the "Foreign Currency Monetary Item Translation Difference Account" to be amortized over the period of loan.

viii. Related Party Disclosures Related parties

(a) Subsidiary Companies

i. Renuka Commodities DMCC, Dubai (UAE)

ii. Parana Global Trading (FZE), Sharjah (UAE)

iii. Shree Renuka Agri Ventures Limited

iv. KBK Chem-Engineering Private Limited

v. Gokak Sugars Limited

vi. Shree Renuka Global Ventures Limited, Mauritius

vii. Lanka Sugar Refnery Company (Private) Limited, Srilanka.

viii. Monica Trading Private Limited (formerly Monica Realators & Investments Private Limited)

ix. Shree Renuka East Africa Agriventures PLC, Ethiopia.

x. Shree Renuka Tunaport Private Limited

xi. Shree Renuka International PTE, Singapore

(b) Associate Companies

i. Khandepar Investments Private Limited

ii. Vantamuri Trading and Investments Limited

iii. Murkumbi Investments Private Limited

iv. Renuka Energy Resource Holdings (FZE), Sharjah

v. Damodar Resource Holdings (FZE), Sharjah

vi. Ravindra Energy Limited (Shree Renuka Energy Limited merged with Ravindra Energy Limited w.e.f. 18th

March 2014) vii. Agri Venture Trading and Investment Private Limited viii. Adani Wilmar Limited* ix. Wilmar Sugar Pte Limited* x. Great Wall - Wilmar Holding* xi. Wilmar Continental*

* Became associate company on 27th May 2014

(c) Key Managerial Personnel

i. Mrs. Vidya Murkumbi – Executive Chairperson

ii. Mr. Narendra Murkumbi – Vice Chairman and Managing Director

iii. Mr. Vijendra Singh – President and Whole Time Director

iv. Mr. K. K. Kumbhat- Chief Financial Ofcer

v. Mr. D.V. Iyer- Company Secretary and Compliance Ofcer.

xix. Derivative instruments and Unhedged foreign currency exposure

(a) Category wise nominal value of derivatives instruments outstanding is as under:

xx. During the year ended 31st March 2015, the Company has revised the useful lives of certain fixed assets as per useful life specified in schedule II of the Companies Act, 2013. Accordingly, the carrying value of fixed assets as on 1st April, 2014, has been depreciated over the revised remaining useful lives. As a result of this change, the net depreciation charge for the year ended 31st March 2015 is lower by Rs.136.38 mn. Further, an amount of Rs. 73.83 mn (Net of deferred tax of Rs. 38.02 mn) representing the carrying value of assets, whose remaining useful life is Nil, as at 1st April, 2014, has been charged to the opening balance of retained earnings as per the transitional provision prescribed in note 7(b) of Schedule II of the Companies Act, 2013.

xxi. For payment of managerial remuneration to Mrs. Vidya Murkumbi and Mr. Vijendra Singh, Whole time directors of the Company, the company has obtained the share holder's approval by way of special resolution, and permission of the Central government is pending

xxii. Details of Loan Given, Investments made and Guarantee Given Covered U/S 186 (4) of the Companies Act, 2013

a) Loans given to Subsidiaries for business purpose and disclosed in Note 33 (xviii).

b) Investments made are disclosed in Note 13

c) Corporate Guarantees given by the company in respect of loans as at 31st March 2015

xxiii. Previous year's figures have been regrouped /rearranged wherever necessary to confirm to the current year grouping. To be read with our report of even date For and on behalf of the Board


Mar 31, 2014

All amounts in million Indian Rupees, unless otherwise stated.

i. Leases Payable

The Company has entered into various operating leases for ofce, residential and factory premises. These are generally short-term leases and cancellable by serving adequate notice. The minimum amount of lease rentals payable/chargeable on non-cancelable leases is as follows:

ii. Leases Receivable

The Company has entered into various operating leases for ofce, residential and factory premises. These are generally short-term leases and cancellable by serving adequate notice. The minimum amount of lease rentals receivable on non-cancelable leases is as follows:

iii. Contingent Liabilities

Liabilities classifed and considered contingent due to contested claims and legal As at As at disputes 31st March,2014 31st March,2013

Income Tax Demands 50.99 5.64

Excise and Service Tax Demands 450.93 464.95

Sales Tax/VAT Demands 36.32 36.32

Customs Demand 465.12 465.12

Total: 1,003.36 972.03

iv. Balances appearing under the head trade payables, trade receivables, loans and advances are subject to confirmation, adjustments, if any, on the receipt/reconciliation of such accounts.

v. In terms of accounting standard AS 28 on impairment of assets, there was no impairment indicators exist as of reporting date as per the internal management estimates done and hence no impairment charge is recognised during the year under review.

vi. In accordance with Companies (Accounting Standards) Amendment Rules 2009 as amended by Companies (Accounting Standards) (Second Amendment ) Rules 2011 as per AS-11,the Company exercised the option of adjusting exchange diferences arising on long term foreign currency monetary items related to acquisition of depreciable capital assets in the cost of assets to be depreciated over the balance life of the assets and other long term monetary item in the "Foreign Currency Monetary Item Translation Diference Account" to be amortised over the period of loan.

vii. Related Party Disclosures Related parties

(a) Subsidiary Companies

i. Renuka Commodities DMCC, Dubai (UAE)

ii. Parana Global Trading (FZE), Sharjah (UAE)

iii. Shree Renuka Agri Ventures Limited

iv. KBK Chem-Engineering Private Limited

v. Gokak Sugars Limited

vi. Nandur Sugars Limited (Ceased to be subsidiary w.e.f. from 09th Dec, 2013)

vii. Shree Renuka Global Ventures Limited, Mauritius

viii. Lanka Sugar Refnery Company (Private) Limited, Srilanka.

ix. Monica Trading Private Limited (formerly Monica Realators & Investments Private Limited )

x. Shree Renuka East Africa Agriventures PLC, Ethiopia.

xi. Shree Renuka Tunaport Pvt. Ltd.

(b) Associate Companies

i. Khandepar Investments Private Limited

ii. Vantamuri Trading And Investments Limited

iii. Murkumbi Investments Private Limited

iv. Shree Renuka Energy Limited

v. Renuka Energy Resource Holdings (FZE), Sharjah

vi. Damodar Resource Holdings (FZE), Sharjah

vii. Ravindra Energy Limited.

viii. Agri Venture Trading and Investment Pvt. Ltd.

(c) Key Managerial Persons

i. Mrs. Vidya Murkumbi

ii. Mr. Narendra Murkumbi

iii. Mr. Nandan Yalgi (Ceased to be a director w.e.f from 20th Feb, 2014)

viii. Mr. Vijendra Singh

xviii. The profit for the year, as Defined u/s 198 of the Companies Act, 1956 is insufcient to pay the contractual managerial remuneration to the whole time directors of the company. In view of the above the Company has obtained Shareholders'' approval by way of postal ballot and the permission from the Central Government in this regard is awaited.

ix. Derivative instruments and Unhedged foreign currency exposure

(a) Category wise nominal value of derivatives instruments outstanding is as under:

- For Hedging currency and interest rate risks:


Mar 31, 2013

I. Excise Duty on Finished Goods

Excise duty is generally provided on manufacture of goods, which are not exempt from the payment of duty. However, since the Company''s finished goods are not segregated at the time of production into those for sale in domestic markets and those for sale in export markets, the Company is unable to determine the exact liability towards excise duty on finished goods. Accordingly, excise duty is provided/paid only at the time of clearance of the goods from the factory.

ii. Leases Payable

The Company has entered into various operating leases for office, residential and factory premises. These are generally short-term leases and cancellable by serving adequate notice. The minimum amount of lease rentals payable on non-cancelable leases is as follows:

- Within a period of one year-Rs.124.96 million (Previous year Rs.124.96 million).

- Period from one year to five years - Rs.499.82 million (Previous year Rs.499.82 million).

- Period from five years and above- Rs.1,814.99 million (Previous Year 1,939.95 million).

- Lease Rent charged to Profit and loss account for the year ended 31st March, 2013 is Rs.125.35 million (Previous Year Rs.157.91 million).

iii. Leases Receivable

The Company has entered into various operating leases for office, residential and factory premises. These are generally short-term leases and cancellable by serving adequate notice. The minimum amount of lease rentals receivable on non-cancelable leases is as follows:

- Within a period of one year - Rs.10.02 million (Previous year Nil).

- Period from one year to five years - Nil (Previous year Nil).

- Period from five years and above - Nil (Previous Year Nil).

- Lease Rent received for the year ended 31st March, 2013 is Rs.5.01 million (Previous Year Nil). iv. Outstanding Commitments

As at 31st March, 2013, the Company had the following outstanding commitments:

- Bank Guarantees outstanding - Rs.2,480.85 million (Previous Year Rs.5,555.00 million).

- Corporate Guarantees outstanding Rs.16,682.00 million (Previous Year Rs.14,096.00 million).

- Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for Rs.55.16 million (Previous year Rs.534.83 million).

iv. Contingent Liabilities

Liabilities classified and considered contingent due to contested claims and As at disputes As at 31st As at March,2013 31stMarch, 2012

Income Tax Demands 5.64 5.64

Excise and Service Tax Demands 464.95 261.25

Sales Tax/VAT Demands 36.32 36.32

Customs Demand 465.12 465.12

Total 972.03 768.33

v. Balances appearing under the head sundry creditors, sundry debtors, loans and advances are subject to confirmation, adjustments, if any, on the receipt/reconciliation of such accounts.

vi. In terms of accounting standard AS 28 on impairment of assets, there was no impairment indicators exist as of reporting date as per the internal management estimates done and hence no impairment charge is recognised during the year under review.

vii. In accordance with Companies (Accounting Standards) Amendment Rules 2009 as amended by Companies (Accounting Standards) (Second Amendment) Rules 2011 as per AS-11,the Company exercised the option of adjusting exchange differences arising on long term foreign currency monetary items related to acquisition of depreciable capital assets in the cost of assets to be depreciated over the balance life of the assets and other long term monetary item in the "Foreign Currency Monetary Item Translation Difference Account"to be amortised over the period of loan.

viii. Related Party Disclosures Related parties

A) Subsidiary Companies

i. Renuka Commodities DMCC, Dubai (UAE)

ii. Parana Global Trading (FZE), Sharjah (UAE) iii. Shree Renuka Agri Ventures Limited iv. KBKChem-Engineering Private Limited v. Gokak Sugars Limited vi. Nandur Sugars Limited vii Shree Renuka Global Ventures Limited, Mauritius viii Lanka Sugar Refinery Company (Private) Limited, Sri lanka ix. Monica Realators & Investments Private Limited

ix. Shree Renuka East Africa Agriventures PLC, Ethiopia xi. Shree Renuka Tunaport Pvt. Ltd.

B) Associate Companies

i. Khandepar Investments Private Limited ii. Vantamuri Trading And Investments Limited

iii. Murkumbi Investments Private Limited

iv. Shree Renuka Energy Limited

v. Renuka Energy Resource Holdings (FZE), Sharjah

vi. Damodar Resource Holdings (FZE), Sharjah

vii Ravindra Energy Limited

viii Agri Venture Trading and Investment Pvt. Ltd.

C) Key Managerial Persons

i. Mrs. Vidya Murkumbi

ii. Mr. Narendra Murkumbi iii. Mr. NandanYalgi iv. Mr. Vijendra Singh

x. a) Previous period''s figures are for 18 months and hence not comparable with current year''s figures which are of 12 months.

b) As the revised schedule VI has became applicable to the company in the current financial year i.e. 2012-13, consequently the figures of the previous year have been regrouped/ reclassified wherever necessary.


Mar 31, 2012

I. Excise Duty on Finished Goods

Excise duty is generally provided on manufacture of goods, which are not exempt from the payment of duty. However, since the Company's finished goods are not segregated at the time of production into those for sale in domestic markets and those for sale in export markets, the Company is unable to determine the exact liability towards excise duty on finished goods. Accordingly, excise duty is provided/paid only at the time of clearance of the goods from the factory.

ii. Leases

The Company has entered into various operating leases for office, residential and factory premises. These are generally short-term leases and cancelable by serving adequate notice. The minimum amount of lease rentals payable on non- cancelable leases is as follows:

- Withina period of one year - Rs 124.96 million (Previous Year Rs 83.63 million)

- Period from one year to five years - Rs 499.82 million (Previous Year Rs 251.63 million)

- Period from five years and above - Rs 1,939.95 million (Previous Year Rs 966.00 million)

- Lease Rent charged to Profit and loss account for the period of 18 months ended March 31, 2012 are Rs 157.91 million (Previous Year Rs 97.69 million).

iii. Outstanding Commitments

As at March 31, 2012, the Company had the following outstanding commitments :

- Bank Guarantees outstanding - Rs 5,555.00 million (Previous Year Rs 320.48 million)

- Corporate Guarantees outstanding - Rs 14,096.00 million (Previous Year Rs 8,137.80 million)

- Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for - Rs 534.83 million (Previous Year Rs 4,109.00 million.)

iv. Balances appearing under the head sundry creditors, sundry debtors, loans and advances are subject to confirmation, adjustments, if any, on the receipt/reconciliation of such accounts.

v. In terms of accounting standard AS 28 on impairment of assets there was no impairment indicators exist as of reporting date as per the internal management estimates done and hence no impairment charge is recognized during the year under review.


Sep 30, 2009

A. The provision for impairment loss, if any, required or

b. The reversal, if any, required of impairment loss recognised in previous periods.

Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount.

All amounts in million Indian Rupees, unless otherwise stated

i. Excise Duty on Finished Goods

Excise duty is generally provided on manufacture of goods, which are not exempt from the payment of duty. However, since the Company’s finished goods are not segregated at the time of production into those for sale in domestic markets and those for sale in export markets, the Company is unable to determine the exact liability towards excise duty on finished goods. Accordingly, excise duty is provided/paid only at the time of clearance of the goods from the factory.

ii. Leases

The Company has entered into various operating leases for office, residential and factory premises. These are generally short- term leases and cancelable by serving adequate notice. The minimum amount of lease rentals payable on non-cancelable leases is as follows:

- Within a period of one year - Rs.55.5 million (Previous year Rs.150 million)

- Period from one year to five years - Rs.97.53 million (Previous year Rs.385 million)

iii. Outstanding Commitments

As at September 30, 2009, the Company had the following outstanding commitments:

- Bank Guarantees outstanding - Rs.246 million (Previous year Rs.693 million)

- Corporate Guarantees outstanding Rs.1,981 million (Previous year Rs.898 million)

- Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for - Rs.1,909 million (Previous year Rs.445 million)

iv. Balances appearing under the head sundry creditors, sundry debtors, loans and advances and secured loans are subject to confirmation, adjustments, if any, on the receipt/reconciliation of such accounts.

v. In terms of accounting standard AS 28 on impairment of assets there was no impairment indicators exist as of reporting date as per the internal management estimates done and hence no impairment charge is recognised during the year under review.

vi. List of Small Scale Industrial undertakings to whom the company is due to the extent such parties that have been identified from available information as at September 30, 2009

1. Jain Engineers, Belgaum

2. Inteltech Engineers, Belgaum

3. Spechem Industries Pvt. Ltd., Chennai

4. Ceramic Products Ltd., Khanapur

5. Patil Thermoplastics, Palus

6. R K enterprises, Kolhapur

7 Satish Steel Works, Jalandhar

8. Yashaswi Engineers, Belgaum

9. Techno Trade Links, Belgaum

10. Vidyut Pumps & Allied Products, Shinolli

11. M G Industries, Kolhapur

12. M P Fabricators, Belgaum

13. Shri Yash Enterprises, Belgaum

14. Group Engineers, Sangli

15. Shantaram Machineries Pvt. Ltd., Kolhapur

xv. Related Party Disclosures Related parties

a) Subsidiary Companies

i. Renuka Commodities DMCC, Dubai.

ii. Shree Renuka Southern Africa Holdings (FZC), Sharjah.

iii. Shree Renuka Biofuels Holdings (FZE), Sharjah.

iv. Shree Renuka Agri Ventures Limited.

v. KBK Chem Engineering Private Limited.

vi. Godavari Biofuels Private Limited.

vii. Ratnaprabha Sugars Limited.

viii. Gokak Sugars Limited.

ix. SRSL Ethanol Limited.

x. Shree Renuka Global Ventures Limited, Mauritius

b) Associate Companies

i. Shree Renuka Infra Projects Limited.

ii. Khandepar Investments Private Limited.

iii. Murkumbi Investments Private Limited.

c) Key Managerial Persons

i. Mrs. Vidya Murkumbi

ii. Mr. Narendra Murkumbi

iii. Mr. S.M. Kaluti

iv. Mr. Nandan Yalgi

v. Mr. Nitin Puranik

vi. Mr. G.K. Sood

xvii. Subsequent events after the Balance Sheet date

The company has floated subsidiary in Brazil by name & style Shree Renuka Partipacoes Ltd. through Shree Renuka Global Ventures Ltd., Mauritius as Holding Company on September 18, 2009. Through the Brazilian subsidiary an agreement has been entered into to acquire 100% stake in VALE DO IVAI S.A. ACUCAR E ALCOOL (“VDI”). The acquired company has got a crushing capacity of 3.1 million tones with 18,000 hectares of land on long lease for cultivation. It also has logistics assets including a share in terminals for storage, loading of sugar and ethanol at port. The value of the enterprise is USD 240 million with an acquisition cost of 100 % equity around 82 million USD and the balance to be repaid as debt in eight years.

xviii. Previous year’s figures

Previous year’s figures have been regrouped/rearranged wherever considered necessary.