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Notes to Accounts of Shree Renuka Sugars Ltd.

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.

 
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