Mar 31, 2016
1 Loan from State Bank of India of Rs. 60,35,45,834/- secured against by way of Hypothecation of the current assets including Finished & Semi-finished stocks, raw materials, stores and spares of Sugar Unit of the Company of the book value of Rs. 93,69,58,214/- and also by way of Collateral Security on second pari passu charge on fixed assets including extension of Equitable Mortgage of land and building of the Company at Shamli.
The working capital loan of Rs. 20,02,20,286/- from Punjab National Bank, Shamli is secured by way of pledging of Sugar stock of the book value of Rs. 24,77,41,094/- and also by way of Collateral Security on second pari passu charge on the fixed assets including extension of Equitable Mortgage of land and building of the Company at Shamli.
The working capital loan of Rs. 30,29,22,116/- from District Co-Operative Bank, Ghaziabad is secured by way of pledging of Sugar stock of the book value of Rs. 39,92,03,446/-.
2. Parties covered under âThe Micro, Small and Medium Enterprises Development Act, 2006â (MSMED Act, 2006) have been identified on the basis of intimation received by the Company from its suppliers.
Based upon the information available, the balance due to the Micro and Small Enterprises as defined under the MSMED Act, 2006 is Rs. 12.20 Lacs (Previous Year Nil). Further no interest during the year has been paid or is payable under the terms of the MSMED Act, 2006.
* There are no amounts as at the end of the year which are due and outstanding to be credited to the Investors Education and Protection Fund.
3. Fixed Deposits lodged as Security includes Rs. 18,81,89,989/- pledged with bank as security against SEFASU Loan (Previous year Rs. 17,60,00,000/-) and Rs. 1,20,01,570/- pledged with bank against Guarantee given by bank on behalf of the Company (Previous year Rs. 1,95,30,000/-)
4. Confirmation of Fixed Deposit Lodged as Securities with different government departments are awaited.
5. Salary & Wages includes Rs. 58,60,837/- paid to Managerial Personnel (Previous year Rs. 55,43,625/-).
6. Provident Fund includes Rs. 4,17,600/- for Managerial Personnel (Previous year Rs. 3,96,000/-)
2.25.3 Contribution to Provident fund, Superannuation fund and Family Pension fund charged off during the year
The Company also provides for post employment defined benefit in the form of gratuity and leave liability. The Employeeâs Gratuity Scheme is managed by Life Insurance Corporation of India defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method at each Balance sheet date, which works to more by Rs.4,03,33,317/- as compared to Gratuity Scheme managed by the Life Insurance Corporation of India. The difference has been fully provided in the books of Company.
ii) In respect of labour cases in dispute, the amount of which is not ascertainable.
iii) Bank Guarantees for Rs. 1,20,01,570/- in favour of Oil Companies and Government Department (Previous year Rs. 1,95,93,000/-)
c) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 13,23,00,000/against which advances have been paid Rs. 13,23,000/- (Previous year Rs. Nil)
NOTE :- The above amount in-respect of contingent liabilities represents best estimates arrived at on the basis of available information as the actual liability cannot be predicted accurately and Company has relied upon expert legal advise against the such disputed liabilities.
7. In absence of balance confirmations from certain creditors, debtors and securities lodged included in Trade payable, other current liabilities, Long - term loans and advances, Trade Receivables, Short - term loans and advances and Other current assets the Auditors have relied upon the figures appearing in the books of the Company. No provision of doubtful debts amounting to Rs. 1,50,37,693/- appearing under the head, other current assets have been made.
8. Income Tax assessments (regular u/s 143(3)) have been completed up to the Accounting year 2012-2013 ( Assessment Year 2013-2014). The Company has gone in appeal against tax demand certain assessment orders. The Company has been legally advised that in view of expected reliefs, no further provision for income tax liability is required.
9. Like previous year the closing stock of sugar has been valued at âLower of cost and net realizable valueâ. This year Cost price of sugar is lower than the prevailing Market price at the close of the year. Till last year, interest expense was never treated as cost component while calculating cost of production of sugar, whereas the Company has this year changed, the method of arriving at cost of production of sugar and have loaded interest paid/accrued on loans (cash credit accounts), as part of the cost of production of sugar. This change in policy (treatment of interest expense) has resulted in higher valuation of closing stocks of sugar. Had there been no change in treatment of said interest while arriving at âcost of production of sugarâ, the closing stock would have been lower by Rs. 2,45,03,240/-, and consequently profit for the year would have been lower to that extent.
10. The Company has reviewed impairment of assets of the Company to identify the impairment loss, if any. The review has not revealed any material impairment of assets. However, impairment loss determined and recognized in accordance with the Accounting Standard - 28 issued by the Institute of Chartered Accountants of India.
11. The Sahakari Ganna Vikas Samitti Limited, Shamli had claimed interest on late payment of cane dues pursuance to U.P. State Government Press release dated 12th November, 2014 and Order No. 2970 - Cd/46-3-14(48) 98-99 dated 24.12.2014. The Company has not provided towards this liability for the current year amounting to Rs. 15,33,14,560/- and has also reversed Rs. 1,92,20,628/- provided last year on this account. This decision was taken by the Company, based on the representation made by U.P. Sugar Mills Association for waiver of this liability and Association is expecting positive result, as the State Government had agreed to waive this interest in certain earlier years. However, on account of this decision accounts are not maintained on accrual basis to the extent of Rs. 17,25,35,188/-.
12. On account of change in accounting policy in respect of incorporating closing stock of Bagasse at the end of the year has resulted in increase in profit for the year to the extent of Rs. 1,06,61,786/-.
13. The Central Govt. Ministry of Law & Justice, have issued Notification No.6/2016 dated 1.1.2016 regarding payment of bonus (Amendment Act 2015) in terms of which the ceiling for payment of bonus has been revised w.e.f. 1st April, 2014. Certain High Courts have stayed the implementation of revision of Bonus from retrospective effect. ISMA has also filed writ against implementation of the order with regard to its retrospective effect from 1st April, 2014 and the matter is subjudice. Therefore the Company has provided its liability towards bonus keeping in view the effect of aforesaid notification pertaining to this year, but has not made provision for this liability for previous year.
14. The U.P. Government vide Notification No. 4/2015/620 dated 12.6.2015 has notified that the Society Commission on purchase of cane for the season 2012-13 shall be reduced to Rs. 2/- per quintal, as against earlier declaration @ 3% of FRP (Rs. 5.10 per quintal of cane purchased). As such the excess amount of Rs. 3.10 per quintal has since been got adjusted by Upper Doab Sugar Mills, Shamli from its cane price dues for the season 2014-15.
The Company had crushed sugar cane for the season 2012-13 at its then owned sugar unit at Unn, on which the aforesaid refund/adjustment of excess amount of Society Commission on purchase of cane for the season 2012-13 works to Rs. 1,60,30,339/-. The Company has sold its UNN Sugar Unit during September, 2014 to M/s Superior Food Grains Private Limited, when the entire dues up to the season 2013-14 towards Cane price including Society Commission was paid by the Company. It was agreed by M/s Superior Food Grains Private Limited, at the time of sale of UNN Unit that any refund in respect of Cane Society Commission or any other refund/benefit accruing on UNN Unit from U.P. Government to the date of transfer, shall be retained by the Company as the relevant commission was earlier paid by the Company. Based on the aforesaid mutual agreement the Company has lodged claim of Rs. 1,60,30,339/- with the Cane Society, and accordingly booked as Other Operating Revenue during the year. The matter of recovery of Rs. 1,60,30,339/- is being pursued with the Cane Societies for adjustment / recovery.
15. The Company has over the last few years incurring losses, due to which its net worth has been completely eroded. The Company has become Sick Industrial company since the financial year ended on 31.03.14 under provision of Sick Industrial Company (Special Provisions) Act, 1985 and the fact was reported to the BIFR as required under the provisions of section 15(1) of Sick Industrial Company (Special Provisions) Act, 1985 and relevant Form A was duly filed with the Registrar of BIFR, who had asked the Company, to file a revised Form A along with Balance Sheet in which assets and liability of Unn Sugar Complex are not depicted.
The revised Form A has since been submitted to BIFR on the basis of accounts of the Company for the year ended 31.03.2015. The BIFR has registered the Company under BIFR on 03.02.2016 as case no. 23/2016.
16. In view of carry forward losses, the Board have decided not to make any provision for Deferred Tax Assets for the current financial year as per Accounting Standard-22.
17. Certain previous year figures have been rearranged to make them comparable with current figures. Figures have been rounded off nearest to rupee.
NOTES:
18. Quantitative figures of Distillery products are not ascertainable, because the basic product of spirits is converted later into various strengths with water dilution.
19. Closing stock of Molasses arrived at after adjustment of wastage of 1199.10 Qtls. (Previous year 2,101 Qtls.)
20. Turnover includes inter-unit sales of Rs. 11,59,23,016/- (Previous year Rs. 14,03,09,964/-).
21.* Others includes Sale of Press Mud and Bagasse.
22. Sale of Sugar includes Nil bags of BISS (Previous year Rs. 6,445 bags)
23.Related partiesâ Disclosures :
I Relationship
A Key Management Personnel : (Directors) Designation
1. Sh. Rajat Lal Managing Director
2. Sh. Vivek Viswanathan Joint Managing Director
3. Sh. Rahul Lal Executive Director B Key Management Personnel : (Other than Directors)
1. Sh. P. K. Goyal Chief Financial Officer
2. Sh. A. K. Singh Company Secretary
C Relatives of Key Management Personnel : (Directors) Relation with Key Management Personnel
1. Smt. Sudha Singhania Sister of Shri Rajat Lal
2. Smt. Poonam Lal Wife of Shri Rajat Lal
3. Miss Pooja Lal Daughter of Shri Rajat Lal
4. Smt. Radhika Viswanathan Hoon Sister of Shri Vivek Viswanathan D Relatives of Key Management Personnel : (Other than Directors)
1. Smt. Madhu Goyal Wife of Shri P. K. Goyal
2. Sh. Siddharth Goyal Son of Shri P. K. Goyal
3. Smt. Garima Mittal Daughter of Shri P. K. Goyal
4. Sh. Lakshman Singh Father of Shri A. K. Singh
5. Smt. Tara Devi Mother of Shri A. K. Singh
Mar 31, 2015
1.1 In absence of balance Confirmations from certain creditors, debtors
and securities lodged shown in Notes of Trade payable, Other current
liabilities, Long - term loans and advances, Trade Receivables,
Short-term loans and advances and Other current assets the Auditors
have relied upon the fgures appearing in the books of the Company.
However, no provisions of doubtful debts amounting to Rs. 150.38 Lacs
appearing in Note No. 2.20 has been made.
1.2 Income Tax assessments (regular u/s 143(3)) have been completed
upto the Accounting year 2011-2012 (Assessment Year 2012-2013). The
Company has gone to appeal against tax demanded as a result of certain
assessment order. The Company has been legally advised that in view of
expected reliefs, no further provision for income tax liability is
required.
1.3 Certain 'C' forms in respect of inter-state sale will be collected
in due course of time. Liability on account of Sales-Tax may arise on
such inter-state sales relating to which 'C' forms are not received.
1.4 The Company, during the year has reviewed impairment of major Fixed
Assets of the Company to identify the impairment loss, if any. The
review has not revealed any impairment of assets in terms of Accounting
standard-28 issued by the Institute of Chartered Accountants of India.
1.5 During the year Company has disposed off its Sugar Unit "Unn Sugar
Complex" as slump sale after prior approval of Shareholders for
consideration of Rs. 75.50 Crores. The exceptional item in note no.
2.29 represents net of capital Profit of Rs. 16.51 crores after
adjusting the loss of Rs. 1.67 crores on transfer of stores.
1.6 Pursuant to the Companies Act, 2013, the Company had during the
year, revised remaining useful life of its Fixed Assets. The carrying
amount as on 01.04.2014 is depreciated over the revised remaining
useful life of the assets. The revised depreciation for the period
prior to 01.04.2014 results in excess depreciation charged by Rs. 1.53
crores (excluding its effect of Rs. 0.47 crores on the figure of
deferred tax which has been adjusted in the current year) and shown as
income in note no. 2.29 under the head exceptional item in the
statement of Profit & Loss.
1.7 During the financial year 2012-13 Company has accepted/ renewed
deposits in excess of Rs. 42.34 lacs under rule 3 (2)(I) and Rs. 190.93
lacs under rule 3(2)(II) of the provision of section 58 A and other
relevant provision of the Companies Act, 1956, and Companies
(Acceptance of Deposits) Rules 1975. However, the Company has since
refunded the entire amount of fixed deposits.
1.8 The Company has over the last few years incurring losses, due to
which its net worth has been completely eroded. Last year the Company
has become Sick Industrial company under provision of Sick Industrial
Company (Special Provisions) Act, 1985 and the fact was reported to the
BIFR as required under the provisions of section 15(1) of Sick
Industrial Company (Special Provisions) Act, 1985 and relevant Form A
was duly fled with the Registrar of BIFR, who had asked the Company, to
fle a revised Form A along with Balance Sheet in which assets and
liability of Unn Sugar Complex are not depicted.
The relevant adjustment entry regarding sale of Unn Sugar Complex are
recorded in the books which will be appearing in the accounts for the
year ended 31.03.2015
The revised Form A shall be submitted after the approval of the
accounts of the Company of year ended 31.03.2015 by the Board of
Director of Company.
1.9 Certain previous year figures have been rearranged to make them
comparable with current figures. Figures have been rounded off nearest
to rupee.
2. Quantitative figures of Distillery products are not
ascertainable, because the basic product of spirits is converted later
into various strengths with water dilution.
3. Closing stock of Molasses arrived at after adjustment of wastage
of 2,101 Qtls. (Previous year 3,484 Qtls.)
4. Turnover includes inter-unit sales of Rs. 14,03,09,964/-
(Previous year Rs. 14,92,60,131/-).
5. Other Sales includes Sale of Bagasse, Press Mud and Bio Compost.
6. Sale of Sugar includes 6,445 bags of BISS (Previous year Rs.
2,453 bags)
7. Segment Reporting :
The Company's operation predominantly relates to manufacture and sale
of Sugar and Alcohol products. Accordingly the Sugar and Alcohol
products primarily comprises the basis for primary and secondary for
segment information :
Mar 31, 2014
1.1 CONTINGENT LIABILITIES NOT PROVIDED FOR :
As at March 31, 2014 As at March 31,2013
Rs. Rs.
a) In respect of Statutory
Liabilities :
i) Subjudice,Income Tax/
Penalty determined
by Income tax department 34,83,320 38,86,036
ii) Subjudice, Sales tax and
Entry Tax including
interest thereon 59,94,685 55,73,768
iii) Subjudice, Excise Duty
and penalty thereon 65,24,049 67,87,367
iv) Subjudice, In respect of
alleged claim of
Stamping fee on vats 55,42,460 55,42,460
b) In respect of Other
Liabilities :
i) Alleged claim of interest
on arrears of late
payment of cane price 73,08,696 73,08,696
ii) In respect of labour cases in dispute, the amount of which is not
ascertainable.
iii) Bank Guarantees in favour of Oil Companies and Excise Department
of Rs. 1,60,34,000/-.
NOTE 2 : ADDITIONAL INFORMATION
2.1 In absence of balance confirmations from certain creditors, debtors
and securities lodged shown in Notes of Trade payable,Other current
liabilities, Long - term loans and advances, Trade Receivables, Short -
term loans and advances and Other current assets the Auditors have
relied upon the figures appearing in the books of the Company. However,
no provision of doubtful debts amounting to Rs. 150.38 Lacs appearing
in Note No. 2.18 has been made.
2.2 Income Tax assessments (regular u/s 143(3)) have been completed
upto the Accounting year 2010-2011 ( Assessment Year 2011-2012). The
Company has gone in appeals against certain such assessment orders. The
Company has been legally advised that in view of expected reliefs, the
provision for Income Tax liabilities made in Accounts is considered
adequate.
2.3 Certain ''C'' forms in respect of inter-state sales will be
collected in due course of time. Liability on account of Sales-Tax may
arise on such inter- state sales relating to which ''C'' forms are
not received.
2.4 The Company, during the year on test check basis has reviewed
impairment of major Fixed Assets of the Company to identify the
impairment loss, if any, based on the test check of the assets, the
recoverable value for such Assets is higher than their carrying book
value. Accordingly, the review has not revealed any impairment of
assets in terms of Accounting Standard-28 issued by the Institute of
Chartered Accountants of India.
2.5 The Company has entered into an agreement on 14th January 2014 for
sale of its Unit - Unn Sugar Complex located at Block - Unn, District
Shamli. However, the execution / formalities of conveyance deed is
pending because the purchaser has to Comply with certain Conditions /
Formalities for transfer of lease hold rights in his favour.
2.6 The Company over the last few years has been incurring losses due
to which its net worth has been completely eroded and its current
liabilities are far in excess of its current assets. The accumulated
losses of the Company as at 31.03.2014 have resulted in 100% erosion of
the peak net worth during the immediately preceding four financial
years therefore, the Company has become sick industrial Company under
provision of the Sick Industrial Companies (Special Provisions) Act
1985 and this fact will be reported to the BIFR as required under the
provisions of section 15 (1) of the Sick Industrial Company (Special
Provisions) Act, 1985.
The Indian sugar industry, particularly in the State of Uttar Pradesh,
has faced difficulties on account of increasing sugar cane prices and
corresponding lower than expected recovery of sugar from cane, lower
sugar prices and consequential under recovery of cost of production.
These factors have adversely affected the Company''s operations and
financial performance. Higher finance costs have also added to the cash
losses.
During the previous year, based on the Company''s audited financial
statements for the year ended March 31, 2012, the Company had filed
Form ''C'' with the Board for Industrial and Financial Reconstruction
(BIFR), Government of India, about the "Potential Sickness" of the
Company in line with the provisions of Section 23 of the Sick
Industrial Companies (Special Provisions), Act, 1985 (SICA).
2.7 During the financial year 2012-13 Company has accepted/ renewed
deposits in excess of Rs. 42.34 lacs under rule 3 (2)(I) and Rs.
190.93 lacs under rule 3(2)(II) of the provisions of section 58 A and
other relevant provisions of the Companies Act, 1956, and Companies
(Acceptance of Deposits) Rules 1975. During the financial year 2013-14
the Company has refunded Rs. 42.34 lacs under rule 3 (2)(I) and
Rs.175.82 under rule 3 (2)(II) upto 31.03.2014. The balance refund are
being made during the current year.
2.8 Certain previous year figures have been rearranged to make them
comparable with current year figures. Figures have been rounded off
nearest to rupee.
2.9 Particulars of Stocks, Purchases and Sales of Products :
2.10 Related parties'' Disclosures :
I Relationship
A Key Management personnel Designation
i. Sh. Rajat Lal Managing Director
ii. Sh. Vivek Viswanathan Joint Managing Director
iii. Sh. Rahul Lal Executive Director
B Relatives of Key Management Personnel Relation with Key Management
Personnel
1. Smt. Sudha Singhania Sister of Shri Rajat Lal
2. Smt. Poonam Lal Wife of Shri Rajat Lal
3. Sh. Rahul Lal Son of Shri Rajat Lal
4. Ms. Pooja Lal Daughter of Shri Rajat Lal
5. Smt. Radhika Viswanathan Hoon Sister of Shri Vivek
Viswanathan
Mar 31, 2013
1.1.1 Salary & Wages includes Rs.38,45,295/Â paid to Managerial
Personnel (Previous year Rs. 38,41,361/Â).
1.1.2 Provident Fund includes Rs.2,73,600/Â for Managerial Personnel
(Previous year Rs. 2,73,600/Â)
1.1.3 Contribution to Provident fund, Superannuation fund and Family
Pension Fund charged off during the year are as under.
2.1 Estimated amount of contracts remaining to be executed on capital
Account is NIL (Previous year Rs. 40.22 Lacs) against which advance of
Rs. NIL has been made (Previous Year Rs. 8.04 Lacs).
2.2 In absence of balance confrmations from certain creditors, debtors
and securities lodged shown in Notes of Trade payable,Other current
liabilities, Long  term loans and advances, Trade Receivables, Short Â
term loans and advances and Other current assets the Auditors have
relied upon the fgures appearing in the books of the Company.
2.3 Income Tax assessments (regular u/s 143(3)) have been completed
upto the Accounting year 2009Â2010 (Assessment Year 2010Â2011). However
in view of ITAT, Delhi order dated 23.11.12, the block Assessment
orders made for the years 2000Â01 to 2005Â06 under section 153C read
with section 153A has been quashed. However regular assessment for
assessment year 2000Â01 to 2003Â04 have since been completed and notice
for assessment for the assessment year 2004Â05 and 2005Â06 have been
issued by the Department. However, intimation for processing of Return
for the Accounting Year 2010Â11 (Assessment year 2011Â2012) Under
Section 143 (1) of the Income Tax Act 1961 has been received and
necessary adjustments in view thereof have been accounted for in the
books of accounts. The Company has gone in appeals against certain such
assessment orders and the Company has been legally advised that in view
of expected reliefs, the provision for Income Tax liabilities made in
Accounts is considered adequate.
2.4 Certain ÂC'' forms in respect of interÂstate sale will be collected
in due course of time. Liability on account of SalesÂTax may arise on
such inter state sales relating to which ÂC'' forms are not received.
2.5 The Company, during the year on test check basis has reviewed
impairment of major Fixed Assets of the Company to identify the
impairment loss, if any. Based on the test check of the assets, the
recoverable value for such Assets is higher then their carrying book
value. Accordingly, the review has not revealed any impairment of
assets in terms of Accounting standardÂ28 issued by the Institute of
Chartered Accountants of India.
2.6 The fact that accumulated losses of the Company as on 31.03.2012
have resulted in more than 50% erosion of the peak Net Worth during the
immediately preceding four fnancial years, which in compliance of
provisions of section 23(1) (a) (I) of the Sick Industrial Companies
(Special Provisions) Act, 1985 was reported by the Company to BIFR on
31.10.2012 by flling Form-''C''. The Net Worth of the Company as on
31.03.2013 has been further reduced by Rs. 9.25 crore on account of
loss during the year, however Net Worth of the Company as on
31.03.2013, is still positive.
2.7 The Cabinet Committee of Economic Affairs (CCEA) of Central
Government has approved decontrol of Sugar on 4th April, 2013, pursuant
thereto the Food Ministry has issued notifcation on 2nd May, 2013,
abolishing the obligation of the sugar industry for selling 10% sugar
as Levy Quota Sugar from start of the season 2012Â13.Consequently for
valuation of sugar stock at the close of the year as on 31.3.2013, the
entire sugar stock of "Levy Quota Sugar" as on that date has been
treated by the Company as "Free Quota Sugar".
2.8 During the year the Company has accepted/renewed deposits in excess
of the prescribed limits, laid down under provisions of section 58A and
other relevant provision of the Companies Act, 1956, and Companies
(Acceptance of Deposits) Rules, 1975. The inadvertent excess acceptance
of deposit is now being rectifed by way of repayment of excess deposit
of Rs. 42.34 lacs under rule 3(2) (i) and Rs. 190.93 lacs under rule
3(2) (ii).
2.9 Certain previous year fgures have been rearranged to make them
comparable with current year fgures. Figures have been rounded off
nearest to rupee.
Mar 31, 2012
1.1.1 Out of the issued subscribed and paid up capital 17,50,000 equity
shares of Rs. 10/- each issued as fully paid up bonus shares, by way of
capitalization of General Reserve during the year ended on 31/03/2007.
1.2.1 a) Term Loan mentioned at A (i) Secured against first pari passu
charge with Sugar Development Fund on the Fixed Assets of the company
at Shamli.
b) Term Loan mentioned at A(ii) & A(iii) Secured against first pari
passu charge of State Bank of India with Punjab National Bank on the
entire Fixed Assets of Unn Sugar Unit and by way of Collateral Security
on second pari passu charge on Fixed Assets at Shamli.
c) Loan from SDF Secured against first pari passu charge on the Fixed
Assets of the Company at Shamli and second pari passu charges on the
entire current assets of the Company.
1.2.2 Rate of Interest on Term Loan is based to PLR as on 31.3.2012.
The applicable rate of Interest on Loan A (i) and A (ii) is 4.75 %
above PLR and in case of A (iii) is 3.50% above PLR.
1.2.3 The rate of Interest on Loan from Sugar Development Fund is 4.00
% per annum.
1.2.4 The applicable rate of Interest on Fixed deposits ranges from
10.50 % to 11.50 % per annum as was prevailing at the time of
acceptance of deposits.
1.3.1 Cash Credit from Banks Secured against first pari passu charge by
way of Hypothecation of the entire current assets including Finished &
Semi-finished stocks, raw materials, stores and receivables of the
Company in favour of State Bank of India and Punjab National Bank and
by way of Collateral Security on second pari passu charge on fixed
assets including extension of Equitable Mortgage of land and building
of the Company at Shamli and Unn.
The working capital loan of Rs. 2,825.02 lacs from Zila Sahakari Bank
Ltd., Ghaziabad is secured by way of pledging of Sugar stock of the
book value of Rs. 3,413.30 Lacs
1.4.1 In accordance with "Accounting Standard-22" the company has
recognized the Deferred Tax Assets Rs. 16,09,53,773/- which has been
adjusted in Profit & Loss account.
1.5.1 Government Securities of the book value of Rs. 1,51,000/- are
lodged as security with different government departments for which
confirmations from respective departments are still awaited (Previous
Year Rs. 1,51,000/-).
1.6.1 Fixed Deposits with banks lying in Security Lodged Account
includes deposit of Rs.17,73,630/- (Previous year Rs. 17,73,630/-) with
maturity of more than 12 Months.
1.6.2 Fixed Deposits lodged as Security includes Rs. 26,59,000/-
pledged with bank against Bank Guarantee (Previous year Rs. 84,000/-)
1.7.2 Turnover includes inter-unit sales of Rs. 10,17,12,920/-
(Previous year Rs. 11,57,49,427/-).
1.8.1 Tax deducted at source on Interest income Rs. 1,13,472/-
(Previous year Rs. 6,03,549/-)
1.9.1 The Hon'ble Supreme Court vide its Judgment dated 17.01.2012
have decided that differential Cane price for the season 2007-08 is
payable by the Company. The deficit in provision of differential Cane
price for Rs. 4,02,41,350/- has been made during the year.
1.10.1 Salary & Wages includes Rs.38,41,361/- paid to Managerial
Personnel (Previous year Rs. 40,16,653/-) and also includes Rs. NIL
paid under Voluntary Retirement Scheme (Previous Year Rs. 69,54,217/-).
1.10.2 Provident Fund includes Rs. 2,73,600 for Managerial Personnel
(Previous year Rs. 2,83,200/-)
1.11.1 Interest Includes Rs. 2,24,65,460/- paid to Managerial Personnel
(Previous Year Rs. 2,68,81,866/-)
1.12 CONTINGENT LIABILITIES NOT PROVIDED FOR :
As at March
31, 2012 As at March
31, 2011
Rs. Rs.
a) In respect of Statutory
Liabilities :
i) Subjudice, Sales tax and Entry
Tax including interest thereon 1,21,98,069 10,42,74,474
ii) Subjudice, Excise Duty and
penalty thereon 91,73,293 1,53,86,796
iii) Subjudice, Administrative
charges of Molasses 4,38,706 4,38,706
iv) Subjudice, In respect of alleged
claim of Stamping fee on vats 55,42,460 55,42,460
b) In respect of Other Liabilities :
i) Alleged claim of interest on
arrears of late payment of cane price 73,08,696 73,08,696
ii) Alleged lease rent of land demanded
by Northern Railway - 2,41,99,346
iii) In respect of labour cases in dispute, the amount of which is not
ascertainable.
iv) Bank Guarantee given by State Bank of India for Rs. 53.05 Lacs
(Previous year Rs. 306.20 Lacs), against which 100 % lien is marked on
Drawing Power against Stocks, Stores, Hypothecated with the bank and
receivable of the Company.
v) Bank Guarantees for Rs. 26,29,302/- in favor of Oil Companies and
Excise Department.
NOTE 2 : ADDITIONAL INFORMATION
2.1 Estimated amount of contracts remaining to be executed on capital
Account is Rs.40.22 Lacs (Previous year Rs. NIL) against which advance
of Rs. 8.04 Lacs has been made (Previous Year Rs. NIL).
2.2 In absence of balance confirmations from certain creditors, debtors
and securities lodged shown in Notes of Trade payable,Other current
liabilities, Long - term loans and advances, Trade Receivables, Short -
term loans and advances and Other current assets the Auditors have
relied upon the figures appearing in the books of the Company.
2.3 Income Tax assessments have been completed upto the Accounting year
2008-2009 (Assessment Year 2009-2010). However intimation for
processing of return for the Accounting Year 2009-10, 2010-2011
(Assessment year 2010-2011& 2011-2012) U/Sec. 143 (1) of the Act has
been received and necessary adjustments in view there of have been
accounted for in the books of accounts. The Company has gone in appeal
against certain such assessment orders and has been legally advised
that in view of expected reliefs the provision for Income Tax made in
Accounts is considered adequate.
2.4 Certain 'C' forms in respect of inter-state sale will be
collected in due course of time. Liability on account of Sales-Tax may
arise on such inter- state sales relating to which 'C' forms are
not received.
2.5 The Company, during the year on test check basis has reviewed
impairment of major Fixed Assets of the Company to identify the
impairment loss, if any. Based on the test check of the assets, the
recoverable value for such Assets is higher then their carrying book
value. Accordingly, the review has not revealed any impairment of
assets in terms of Accounting standard-28 issued by the Institute of
Chartered Accountants of India.
2.6 The accumulated losses of the company as at 31st March, 2012 have
resulted in more than 50% erosion of the peak Net Worth during the
immediately preceding four Financial Years and this fact will be
reported to the BIFR as required under the provisions of section
23(1)(a)(i) of the Sick Industrial Companies (Special Provisions) Act,
1985.
2.7 Certain previous year figures have been rearranged to make them
comparable with current year figures. Figures have been rounded off
nearest to rupee.
2.8 Cash Flow statement for the year ended 31st March, 2012 is enclosed
in the statement annexed to these accounts at Note No. 4.
2.9.1 Quantitative figures of Distillery products are not
ascertainable, because the basic product of spirits is converted later
into various strengths with water dilution.
2.9.2 Closing stock of Molasses arrived at after adjustment of wastage
of 5,097 Qtls. (Previous year 4,170 Qtls.) & Excess of 2,134 Qtls.
2.9.3 Turnover includes inter-unit sales of Rs. 10,17,12,920/-
(Previous year Rs. 11,57,49,427/-).
2.9.4 Other Sales includes Sale of Bagasse, Press Mud and Bio Compost.
Mar 31, 2011
1. (A) CONTINGENT LIABILITIES NOT PROVIDED FOR :
As on 31.03.2011 As on 31.03.2010
Rs. Rs.
(a) In respect of Statutory
Liabilities :
(i) Subjudice Income tax
determined by Income tax
department NIL 3,43,34,261
(ii) Subjudice Sales tax and
Entry Tax including interest 10,42,74,474 13,66,70,705
(iii) Excise Duty and penalty
thereof 1,53,86,796 11,37,896
(b) In respect of alleged claim
of interest on arrears of late
payment of cane price 73,08,696 73,08,696
(c) In respect of alleged lease
rent of land demanded
by Northern Railway 2,41,99,346 2,32,71,109
(d) In respect of administrative
charges on Molasses 4,38,706 72,49,515
(e) In respect of alleged claim
of Stamping fee on vats 55,42,460 -
(f) In respect of labour cases
in dispute, the amount of
which is not
ascertainable
2. The Company has provided the cane price liability for the season
2007-08 @ Rs. 125/- per qtl. for general variety and Rs. 130/- per qtl.
for early maturing variety as per the State Advised price (SAP) for the
financial year ending 31.03.2008. Thereafter on an appeal the HonÃble
Supreme Court had passed an interim order directing the Sugar Mills to
pay @ Rs. 110/- per qtl. The Company however, decided not to provide
the cane price liability in excess of Rs.110/- per qtl. for sugar cane
purchased during the period from 01.04.2008 to the end of the season
2007-08 amounting to Rs.402.40 lacs. The necessary adjustments shall be
made on the final order of the HonÃble Supreme Court.
3. During the year the Company has disposed off its distillery unit
ÃPilkhani Distillery & Chemical Worksà after obtaining approval from
Share holders for consideration of Rs. 38.40 crores as slump sale.
4. Employee Benefits
i. Short term employee benefits:
All employee benefits falling due wholly within twelve months of
rendering the services are classified as short term employee benefits,
which include benefits like salaries, wages, short term compensated
absences and performance incentives and are recognised as expenditure
at the undiscounted value in the period in which the employee renders
the related service.
ii. Post- employment benefits:
Contributions to defined contribution schemes such as Provident Fund,
Pension Fund etc. are recognised as expenses in the period in which the
employee renders the related service in respect of certain employees,
Provident Fund contributions are made to a Trust administered by the
Company. The interest rate payable to the members of the Trust shall
not be lower than the statutory rate of interest declared by the
Central Government under the Employees Provident Funds and
Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be made
good by the Company.
Govt. administered fund, company has no further obligations beyond its
monthly contributions.
The Company is also contributing to superannuation fund for key
managerial personnel, at pre determined rates to the Superannuation
Fund Trust, which is recognised as expenses in the period in which
employee renders the related service, and there are no other
obligations with regard to superannuation fund of key managerial
personnel.
The Company also provides for post employment defined benefit in the
form of gratuity and leave liability. The EmployeeÃs Gratuity Scheme
is managed by Life Insurance Corporation of India is defined benefit
plan. The present value of obligation is determined based on actuarial
valuation using the projected unit credit Method at each Balance sheet
date.
NOTE: Expenses charged on leave payment/provision included in Salary
Wages & Bonus under Salary Wages & Benefits in Schedule 13.
Termination Benefits à Voluntary Retirement Scheme
5. Estimated amount of contracts remaining to be executed on capital
Account is Rs. NIL (Previous year Rs. NIL) against which advance of Rs.
NIL has been made (Previous Year Rs. NIL).
6. State Bank of India have given bank guarantees on behalf of Company
for Rs. 306.20 Lacs in favour of various Governement Department by way
of noting 100 % lien against the drawing power of cash credit account
of the Company.
7. In absence of balance confirmations from certain creditors, debtors
and securities lodged shown in Schedule Ã7Ã and Ã8Ã, the Auditors have
relied upon the figures appearing in the books of the Company.
8. Income Tax assessments have been completed upto the Accounting year
2007-2008 (Assessment Year 2008-2009). However intimation for
processing of return for the Accounting Year 2009-10 (Assessment year
2010-2011) U/Sec. 143 (1) of the Act has been received and necessary
adjustments in view there of have been accounted for in the books of
accounts. The Company has gone in appeal against certain such
assessment orders and have been legally advised that in view of
expected reliefs the provision for Income Tax made in accounts is
considered adequate.
9. Certain ÃCÃ forms in respect of inter-state sale will be collected
in due course of time. Liability on account of Sales-Tax may arise on
such inter-state sales relating to which ÃCÃ forms are not received.
10. Related partiesà Disclosures :
I Relationship
A Key Management personnel : Designation
1. Mr. Rajat Lal Managing Director
2. Mr. Vivek Viswanathan Joint Managing Director
3. Mr. K.B. Lal* Sr. Executive Director
B Relatives of Key Management Relation with Key Management
Personnel Personnel
1. Smt. Sudha Singhania Sister of Shri Rajat Lal
2. Smt. Poonam Lal Wife of Shri Rajat Lal
3. Sh. Rahul Lal Son of Shri Rajat Lal
4. Ms. Pooja Lal Daughter of Shri Rajat Lal
5. Smt. Nirmala Lal Wife of Shri K.B. Lal
6. Sh. Kapil Bhushan Lal Son of Shri K.B. Lal
7. Smt. Aradhana Daughter of Shri K.B. Lal
8. Smt. Minoo Daughter of Shri K.B. Lal
9. Smt. Anjana Aggarwal Daughter of Shri K.B. Lal
10. Sh. P.K. Viswanathan Father of Shri Vivek
Viswanathan
11. Smt. Manjula Viswanathan** Mother of Shri Vivek
Viswanathan
12. Smt. Radhika Sister of Shri Vivek Viswanathan
* Sh. K.B. Lal, Sr. Executive Director retired from the services
of Company on 30.04.2010.
** Smt. Manjula Viswanathan has expired on 19.12.2010.
11. Segment Reporting :
The CompanyÃs operation predominantly relates to manufacture and sale
of Sugar and Alcohol products. Accordingly the Sugar and Alcohol
products primarily comprises the basis for primary and secondary for
segment information :
12. Regarding the status of Suppliers the Micro, Small Scale & Medium
Industrial undertakings to whom amounts are due for more than thirty
days have been determined based on the information available with the
Company are as follows :
(a) M/s Gemco Controls Ltd.
13. The Company, during the year, has reviewed the Carrying Value of
the assets for finding out the impairment, if any. The review has not
revealed any impairment of assets in terms of Accounting standard-28
issued by the Institute of Chartered Accountants of India.
14. Certain previous year figures have been rearranged to make them
comparable with current year figures.
15 Figures have been rounded off nearest to rupee.
16. Cash Flow statement for the year ended 31st March, 2011 is
enclosed in the statement annexed to these accounts as Annexure I.
Mar 31, 2010
1. (A) CONTINGENT LIABILITIES NOT PROVIDED FOR :
As on 31.03.2010 As on 31.03.2009
Rs. Rs.
(a) In respect of Statutory
Liabilities :
(i) Subjudice Income tax det-
ermined by Income tax
department 3,43,34,261 3,28,10,709
(ii) Subjudice Sales tax and
Entry Tax including interest 13,66,70,705 2,04,54,368
(iii)Excise Duty 11,37,896 7,02,377
(b) In respect of alleged claim
of interest on arrears of late
payment of cane price 73,08,696 73,08,696
(c) In respect of alleged lease
rent of land demanded
by Northern Railway 2,32,71,109 2,23,42,872
(d) In respect of administrative
charges on inter-unit transfer
of Molasses contested by the
Company 72,49,515 22,96,436
(e) In respect of labour cases in
dispute, the amount of which is not
ascertainable
(f) In respect of alleged claim of
Stamping fee on vats amount of which
is not ascertained as the detail has
not been provided by Excise
Department
2. The Company has provided the cane price liability for the season
2007-08 @ Rs. 125/- per qtl. for general variety and Rs. 130/- per qtl.
for early maturing variety as per the State Advised Price (SAP) for the
financial year ending 31.03.2008. Thereafter on an appeal, the Supreme
Court has passed an interim order directing the Sugar Mills to pay @
Rs. 110/- per qtl. The Company has, however, decided not to provide the
cane price liability in excess of Rs.110/- per qtl. for sugar cane
purchased during the period from 01.04.2008 to the end of the season
2007-08 amounting to Rs.402.40 lacs. The necessary adjustments shall be
made on the final order of the Supreme Court.
3. The VAT became applicable from 01.01.2008 in Utter Pradesh, amount
paid over this score upto 31.03.2009 was treated as adjustable against
payment of VAT in Sugar Units. As per clarification of concerned
Government Department & legal opinion obtained during this year, the
benefit of VAT shall not be available for such adjustement, hence this
amount of Rs. 28,19,346/- has been charged to relevant revenue heads of
current year, though this expense relates to previous year.
4. The Central Government has revised the levy sugar price on
21.06.2010 produced in the sugar season 2009-2010. The impact of
difference of increase in levy sugar price amounting to Rs. 8,31,85,048
has been considered and incorporated in the annual accounts ended on
31.03.2010 on the basis of above notification.
5. Retirement Benefits :
A. Defined Benefit Plans :
Provision made this year in the accounts in compliance with AS-15
(Revised) on account of Companys liability at the end of the year
towards Gratuity and Leave encashment benefit payable to the employee
is on the basis of actuarial valuation arrived at by using projected
unit credit method.
B. Defined Contribution Plan :
(i) Contribution to employees provident fund :
Liability towards provident fund contribution is charged as accrued in
accordance with applicable statue and deposited with the Regional
Provident Fund Commissioner/Approved Provident Fund Trust.
(ii) Contribution to Superannuation Fund :
Contribution to superannuation fund of key managerial personnel are
made at predetermind rates to the superannuation fund trust and charged
to the Profit and Loss account.
There are no other obligations other than the contribution payable to
the superannuation fund trust.
6. Estimated amount of contracts remaining to be executed on Capital
Account is Rs. NIL (Previous year Rs. 80,500) against which advance of
Rs. NIL has been made (Previous Year Rs. 20,125).
7. In absence of balance confirmations from certain creditors, debtors
and security logded shown in Schedule Ã7 and Ã8, the Auditors have
relied upon the figures appearing in the books of the Company.
8. Income Tax assessments have been completed upto the Accounting year
2006-2007 (Assessment Year 2007-2008). The Company has gone in appeal
against certain such assessment orders and have been legally advised
that in view of expected reliefs the provision for Income Tax made in
accounts is considered adequate.
9. Certain ÃC forms in respect of inter-state sale will be collected
in due course of time. Liability on account of Sales-Tax may arise on
such inter-state sales relating to which ÃC forms are not received.
10. Additional information pursuant to the Provisions of Part II of
the Schedule VI of the Companies Act, 1956.
Commission to Managerial personnel :
Because of inadequacy of Profit, no commission is payable.
* Managerial Remuneration is exclusive of provision for gratuity and
leave salary for which seperate actuarial Valuation has not been
provided by Actuary.
NOTES :
1. Quantitative figures of Distillery products are not ascertainable,
because the basic product of spirits is converted later into various
strengths with water dilution.
2. Closing stock of Molasses arrived at after adjustment of excess of
2,541 qtls. and wastage of 1,082 Qtls.(Previous year 48,438 Qtls., out
of which normal wastage 9,156 qtls. & abnormal wastage due to bursting
of tank 39,282 qtls.)
3. Turnover includes inter-unit transfer of Rs. 14,79,63,827 (Previous
year Rs. 11,12,36,802).
(b) In accordance with "Accounting Standard-22" the company has
recognized the deferred tax liability of Rs. 1,36,94,411 which has been
adjusted in Profit & Loss account.
12. Related parties Disclosures :
I Relationship
A Key Management personnel : Designation
1.Mr. Rajat Lal Managing Director
2.Mr. Vivek Viswanathan Joint Managing Director
3.Mr. K.B. Lal Sr.Executive Director
B Relatives of Key Management
Personnel Relation with Key Management
Personnel
1. Smt. Sudha Singhania Sister of Shri Rajat Lal
2. Smt. Poonam Lal Wife of Shri Rajat Lal
3. Sh. Rahul Lal Son of Shri Rajat Lal
4. Ms. Pooja Lal Daughter of Shri Rajat Lal
5. Sh. P.K. Viswanathan Father of Shri Vivek
Viswanathan
6. Smt. Manjula Viswanathan Mother of Shri Vivek
Viswanathan
7. Smt. Radhika Sister of Shri Vivek
Viswanathan
8. Smt. Nirmala Lal Wife of Shri K.B. Lal
9. Sh. Kapil Bhushan Lal Son of Shri K.B. Lal
10. Smt. Aradhana Daughter of Shri K.B. Lal
11. Smt. Minoo Daughter of Shri K.B. Lal
12. Smt. Anjana Aggarwal Daughter of Shri K.B. Lal
13. Segment Reporting :
The Companys operation predominantly relates to manufacture and sale
of Sugar and Alcohol products. Accordingly the Sugar and Alcohol
products primarily comprises the basis for primary and secondary for
segment information :
14. Regarding the status of Suppliers the Small Scale Industrial
undertakings to whom amounts are due for more than thirty days have
been determined based on the information available with the Company are
as follows :
(a) M/s Aay Cee Engineering Works, (b) M/S Alpha Control Instruments
Pvt.Ltd., (c) M/s Arosol Chemicals Pvt. Ltd., (d) M/s Akar Implex Pvt.
Ltd. , (e) M/s Century Instrument Pvt. Ltd., (f) M/s DBR Cooling Tower
Pvt. Ltd., (g) M/s Rocky Engineering & Repairing Works, (h) M/s Vikram
Chemicals Industries, (i) M/s Vikas Pump & Projects.
15. The Company, during the year, has reviewed the Carrying Value of
the assets for finding out the impairment, if any. The review has not
revealed any impairment of assets in terms of Accounting standard-28
issued by the Institute of Chartered Accountants of India.
16. Certain previous year figures have been rearranged to make them
comparable with current year figures.
17. Figures have been rounded off nearest to rupee.
18. Cash Flow statement for the year ended 31st March, 2010 is
enclosed in the statement annexed to these accounts as Annexure I.
Note : Figures in ( ) denote Cash OutgoE