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Notes to Accounts of Ugar Sugar Works Ltd.

Mar 31, 2016

a. Short term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages, bonus and short term compensated absences, leave travel allowance, etc. are recognized in the period in which the employee renders the related service.

b. Post Employment Benefits:

i. Defined Contribution Plans

The Company''s superannuation scheme and pension scheme are defined contribution plans. The contribution paid / payable under the scheme is recognized during the period in which the employee renders related service.

The employees'' gratuity fund scheme and provident fund scheme managed by a Trust are the Company''s defined benefit plans. The present value of the obligation under such defined benefit plans is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined plans, is based on the market yields on Government Securities as at the balance sheet date, having maturity periods approximating to the terms of related obligations.

Actuarial gains and losses are recognized immediately in the Statement of Profit & Loss.

in case of funded plans, the fair value of the plan''s assets is reduced from the gross obligation under the defined benefit plans, to recognize the obligation on the net basis

Gains or losses on curtailment or settlement of any defined benefit plan are recognized when the curtailment or settlement occurs. Past service cost is recognized as expenses on a straight line basis over the average period until the benefits become vested.

The Company pays contribution to a recognized provident fund trust in respect of all locations. The guidance note on implementing AS-15, Employees Benefits (Revised 2006) as issued by the Institute of Chartered Accountants of India (ICAI) states that provident funds set up by employer, which requires interest shortfall to be met by the employer, needs to be treated as a defined benefit plan. In the absence of clear guidelines on the issue of actuarial valuation related to interest shortfall to be made good by the employer, the Company''s actuary have expressed their inability to reliably measure the provident fund liability of the Company''s recognized provident fund. Accordingly, the Company is unable to exhibit the related disclosures.

c. Long Term Employee Benefit

The obligation for long term employee benefits such as long term compensated absences is recognized in the same manner as in the case of defined benefit plans as mentioned in note (b)(ii) above.

Accumulated leaves that are expected to be utilized within the next twelve months are treated as short term employee benefits.

viii. Revenue Recognition

a. Revenue in respect of insurance / other claims, interest, subsidy, Incentive, etc. is recognized only when it is reasonably certain that the ultimate collection will be made.

b. Sales Value is inclusive of Excise Duty and net of sales tax, where applicable.

ix. Foreign Currency Transactions

a. All foreign currency transactions are accounted for at the rates prevailing on the date of the transaction. The exchange differences on settlement / conversion are adjusted to Profit & Loss Account.

b. In respect of amount payable in foreign currency covered by forward contracts, the premium is recognized over the period of contract.

x. Subsidies Received

a. Subsidies received towards specific fixed assets are reduced from gross book value of the concerned fixed assets.

b. Subsidies received relating to revenue expenditure are deducted from related expense.

xi. Borrowing Costs

a. Borrowing costs that are attributable to acquisition, construction or erection of qualifying assets incurred during the period of acquisition or construction, are capitalized as part of the cost of the asset.

b. Other borrowing costs are recognized as expenditure in the period in which they are incurred.

xii. Taxation

Tax on income for the current period is made in accordance with the provisions of the Income Tax Act, 1961. Deferred Tax is recognized on timing differences between the accounting income and the taxable income for the period. The tax effect is calculated on the accumulated timing differences at the end of the accounting period based on the prevailing enacted regulations or those that may be substantively enacted by the Balance Sheet date.

xiii. Earnings per share

a. Basic Earnings per share

For the purpose of calculating basic earnings per share, the net profit or loss for the period attributable to equity shareholders after deducting any attributable tax thereto for the period is divided by weighted number of equity shares outstanding during the period.

b. Diluted Earnings per share

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1 Figures of the previous year have been regrouped / rearranged / recast where necessary.

2 Figures in the brackets pertain to previous year.


Mar 31, 2015

1 Terms / Rights attached to Equity Shares

i. The Company has only one class of equity shares of face value of Re. 1. Each holder of equity share is entitled to one vote per share. Dividend recommended by the Board is subject to approval of the shareholders in the ensuing General Meeting.

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

iii. The Directors have not recommended any dividend for FY 2014-15.[Dividend Recommended for FY 2013-14 - Nil]

2. There has been no continuing default as on the balance sheet date in repayment of any of the above borrowings and interest thereon.

3. Corporate Information

Incorporated on 11-09-1939, The Ugar Sugar Works Ltd. (CIN-L15421PN193/PLC006738) is one of the leading sugar factories in Karnataka. Its shares are listed on BSE and NSE. The Company is engaged in manufacture and sale of sugar, industrial and potable alcohol, and generation and distribution of electricity. The Company's plants are located at Ugarkhurd in Belgaum District and at Malli-Nagarhalli Village in Kalburgi District in the state of Karnataka.

4. Basis of Preparation

a. The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The financial statements have been prepared to comply in all material respects with The Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 2013

b. The financial statements have been prepared under historical cost convention on an accrual basis.

c. The accounting policies applied with the Company are consistent with those used in the previous year.

d. The financial statements have been prepared on a going concern basis.

5. II The Company does not have any Secondary Reportable Segments.

III. Significant Accounting Policies relating to Segment Reporting

a. Business Segments are determined on the basis of the goods manufactured and in accordance with Accounting Standard 17.

b. Inter-segment transfers are recorded at cost except for own generated Bagasse and Molasses, cost of which is unascertainable and which are recorded at Net Realisable Value.

c. Segment report is prepared in conformity with accounting policies adopted for preparing and presenting financial statements.

6. Disclosure with respect to AS-15

The Company has implemented Revised Accounting Standard - 15 on Employee Benefits and made the provisions accordingly. The disclosure as per revised AS-15 are produced below:

Gratuity

In accordance with the applicable laws, the Company provides for gratuity, a defined retirement plan (Gratuity Plan) covering all staff, workers and officers. The Gratuity Plan provides for, at retirement or termination of employment, an amount based on the respective employee's last drawn salary and the years of employment with the Company. The Company provides the gratuity benefit through annual contributions to a Gratuity Trust which in turn mainly contributes to Life Insurance Corporation of India (LIC) for this purpose. Under this plan, the settlement obligation remains with the Gratuity Trust. LIC administers the plan and determines the contribution premium required to be paid by the Trust. The Company has also obtained an independent actuarial valuation of the Trust's Assets and Liabilities, and accordingly, the difference has been provided by the Company. The gratuity liability has been paid by the Company in case of employees, who left during the current period.

Defined Contribution Plan:

7. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. The above information is certified by the actuary.

8. Disclosure of Related Parties and Related Party Transactions

I. Name of the Related Party over which Nature of Relationship significant influence exists

i. Ugar Theatres Pvt.Ltd., Associate Company

ii. Ugar Quality Packaging Pvt. Ltd., Associate Company

iii. Ugar Consultancy Ltd Associate Company (under liquidation) II. Names of the Related Parties with whom transactions were carried out during the year and description of relationship

A. Key Management Personnel (KMP) Designation

I. Shri Prafulla Vinayak Shirgaokar Executive Vice Chairman (Exc. VC)

ii. Shri Shishir Suresh Shirgaokar Managing Director (MD)

iii. Shri Niraj Shishir Shirgaokar Joint Managing Director (Jt. MD)

iv. Shri Chandan Sanjeev Shirgaokar Joint Managing Director (Jt. MD)

B. Relatives of Key Management Personnel

Names of the transacting parties Nature of Relationship

i . Shri. Rajendra Vinayak Shirgaokar Chairman & Mentor (C&M) & Brother of Exc. VC and father of Director Shri Sachin Shirgaokar

ii. Sou. Smita Prafulla Shirgaokar Wife of Exc. VC

iii. Sou. Vinita Mahesh Samant Daughter of Exc.VC

iv. Sou. Shilpa Naval Kumar Daughter of Exc.VC

v. Sou. Sindhu Vijay Dalvi Sister of C&M & Exc.VC

vi. Sou. Savita Shishir Shirgaokar Wife of MD

vii. Sou. Asawari Niraj Shirgaokar Wife of Jt. MD -Shri. Niraj Shishir Shirgaokar

viii. Shri. Arjun Niraj Shirgaokar Son of Jt. MD -Shri. Niraj Shishir Shirgaokar

ix. Kum. Anjini Niraj Shirgaokar Daughter of Jt. MD -Shri. Niraj Shishir Shirgaokar

x. Sou. Puja Hrishikesh Pusalkar Daughter of MD

xi. Sou. Rekha Rajnikant Khedekar Sister of MD

xii. Sou. Chitra Arun Dalvi Sister of MD

xiii. Smt. Radhika Sanjeev Shirgaokar Mother of Jt.MD-Shri. Chandan Shirgaokar and

Director Shri Sohan Shirgaokar

xiv. Sou. Geetali Chandan Shirgaokar Wife of Jt.MD-Shri. Chandan Sanjeev Shirgaokar

xv. Shri. Sachin Rajendra Shirgaokar Director and son of C&M

xvi. Shri. Sohan Sanjeev Shirgaokar Director and Brother of Jt.MD-Shri. Chandan Sanjeev Shirgaokar

9. Disclosure of Related Parties and Related Party Transactions

C. Enterprises over which KMP or Relatives of KMP are able to exercise significant influence

Name of the transacting related party Nature of Relationship

i . S. B. Reshellers Pvt. Ltd. C&M, Exc.VC,MD, Jt.MDs & Directors Shri. Sachin & Sohan Shirgaokar are Directors

ii. Shantaram Machineries Pvt. Ltd. Exc.VC, MD & Directors Shri. Sachin & Sohan Shirgaokar are Directors

iii. Sangli Fabricators Pvt Ltd MD, Jt.MD- Shri Chandan Shirgaokar & Director Sachin Shirgaokar are Directors

iv. Tara Tiles Pvt Ltd. Exc.VC, MD & Director Shri Sachin Shirgaokar are Directors



v. Ugar Pipe Industries Pvt. Ltd. Exc.VC,MD & Jt.MD- Shri Chandan Shirgaokar are Directors

vi. Vinayak Shirgaokar Investments Pvt.Exc.VC, Jt.MD- ShriChandan Ltd. Shirgaokar & Director Shri Sachin Shirgaokar are Directors

vii. D.M. Shirgaokar Investments Pvt. Exc.VC, MD & Directors Shri. Ltd. Sachin & Shri Sohan Shirgaokar are Directors

viii. Prafulla Shirgaokar Investments Exc.VC, Wife of Exc.VC & Director Pvt. Ltd. Shri Sohan Shirgaokar are Directors

ix. Mohan Shirgaokar Investments C&M, Exc.VC, MD, Wife of MD & Pvt. Ltd. Wife of Jt.MD- Shri Niraj Shirgaokar are Directors

x. Shishir Shirgaokar Investments MD, Wife of MD, MD's son's wife Pvt. Ltd. and Director Shri Sachin Shirgaokar are Directors

xi. Prabhakar Shirgaokar Investments Exc.VC & MD are Directors Pvt. Ltd.

xii. Suresh Shirgaokar Investments C&M, MD & Jt.MD Shri Chandan Pvt. Ltd. Shirgaokar and Director Shri Sachin Shirgaokar are Directors

xiii. Sanjeev Shirgaokar Investments Jt.MD Shri Chandan Shirgaokar, Pvt. Ltd. his Mother and Directors Shri. Sachin Shirgaokar and Shri Sohan Shirgaokar are Directors

xiv. Synergy Green Industries Pvt. C&M, Exc.VC, Jt.MDs and Directors Ltd. Shri. Sachin Shirgaokar and Shri Sohan Shirgaokar are Directors

10. The amount due to Micro and Small Enterprises as defined in "The Micro, Small and Medium Enterprises Development Act, 2006" has been determined to the extent such parties have been identified on the basis of information available with the Company. The disclosures relating to Micro and Small enterprises as at 31-03-2015:

11. Figures of the previous year have been regrouped / rearranged / recast where necessary.

12. Figures in the brackets pertain to previous year.

Notes:

13. Bonus shares of the value of Rs. 7.47 lakh, Rs. 10.65 lakh, Rs. 16.82 lakh, Rs. 50.00 lakh, Rs. 75.00 lakh and Rs. 337.50 lakh were issued as fully paid bonus shares, respectively in the years 1950-51, 1966-67, 1973-74, 199495, 1997-98 and 2004-05, by capitalization of reserves.

14. The Accounting year those ended on 30-09-1995 comprised of 18 months and those ended on 31-03-2007 comprised of 6 months only.

15. Dividend for the year ended 30-09-1995 includes interim dividend.

16. Total Income includes value of sales, income from bye-products and other income, and adjustments in the value of opening and closing stocks of finished goods.

17. Figures relating to FY ended 2005-06, 2006-07 includes figures of Tasgaon and Phaltan and 2008-09, 2009-10, 2010-11,2011-12,2012-13, 2013-14 and 2014-15 includes figures of Jewargi unit.


Mar 31, 2014

1: CORPORATE INFORMATION

Incorporated on 11-09-1939, The Ugar Sugar Works Ltd. is one of the leading sugar factories in Karnataka. Its shares are listed on BSE and NSE. The Company is engaged in manufacture and sale of sugar, industrial and potable alcohol, and generation and distribution of electricity. The Company''s plants are located at Ugarkhurd in Belgaum District and at Malli-Nagarhalli Village in Gulbarga District in the state of Karnataka.

2: BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, as amended, and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

3. Principal terms, security and repayment schedule of long term secured loans

i. Loan from Bank of Baroda is obtained for setting up sugar factory with cogeneration of power at Jewargi. The rate of interest is presently Base Rate (BR) 2.5%, i.e. 12.75% p. a. The loan is secured by hypothecation of Plant & Machinery and Stores & Spares at the Jewargi Plant. The loan is repayable in quarterly instalments of Rs. 232.00 lakh. The last instalment is due on 18-07-2014.

ii. Loan from Central Bank of India is obtained for setting up sugar factory with cogeneration of power at Jewargi. The rate of interest is presently BR 2.25% i.e. 12.5% p. a. The loan is secured by hypothecation of Plant & Machinery and Stores & Spares at the Jewargi Plant. The loan is repayable in monthly instalments of Rs. 33.00 lakh. The last instalment is due on 01-03-2015.

iii. Loan from Central Bank of India is obtained for installation of sugar machinery. The rate of interest is presently BR 2.25% i.e. 12.5% p. a. The loan is secured by hypothecation of the said Machinery. The loan is fully repaid on 02-01-2014.

iv. Loan from Central Bank of India is obtained for expansion of crushing capacity of sugar plant at Ugar. The rate of interest is presently BR 1.75% i.e. 12% p. a. The loan is secured by hypothecation of the said Machinery. The loan is repayable in quarterly instalments of Rs. 120.54 lakh. The last instalment is due on 30-09-2020.

v. Loan from Bank of India is obtained to support capital expenditure. The rate of interest presently is BR 0.75% i.e. 10.95% p.a. The loan is secured by hypothecation of proposed machinery. The loan is repayable in quarterly instalments of Rs. 75.00 lakh. The last instalment is due on 31-10-2016.

vi. Loan from Technology Development Board is obtained for Ugar unit for setting up Effluent Treatment Plant. The rate of interest is 5% p. a. The loan is secured by hypothecation of the said machinery. The loan is fully repaid on 25-05-2013.

vii. Loan from Sugar Development Fund is obtained for Jewargi unit for setting up power project. The rate of interest is 4% p. a. The loan is secured by exclusive second charge on all movable and immovable assets of the Company. The Loan is repayable in ten six monthly instalments of Rs. 121.59 lakh. The last instalment is due on 30-06-2018.

4. There has been no continuing default as on the balance sheet date in repayment of any of the above borrowings and interest thereon.

i. Cash credit hypothecation is secured by hypothecation of stock of stores & spares, stock of molasses, stock in trade and book debts. The cash credit is repayable on demand and carries rate of interest at BR 1% i.e. 11.25% p.a.

ii. Cash credit pledge is secured by pledge of stock of sugar. The cash credit is repayable on demand and carries rate of interest at BR 1% i.e. 11.20% to 11.25%.

iii. Loan from Bank of India is obtained to meet off-season expenditure. The rate of interest presently is BR 0.75% i.e. 10.95% p.a. The loan is secured by hypothecation of proposed machinery. The loan is repayable in quarterly instalments of Rs. 500.00 lakh. The last instalment is due on 31-01-2015.

iv. Fixed Deposits are unsecured and are accepted from shareholders and public for a period of one year. The rate of interest for fixed deposits is 10.5% p.a. for senior citizens and 10% p.a. for others.

5. There has been no continuing default as on the balance sheet date in repayment of any of the above borrowings and interest thereon.

6: TRADE PAYABLES

1. Creditors for Supplies 13,887.28 8,182.38

Particulars Financial Year Financial Year 2013 - 2014 2012 - 2013 Rs. Lakh Rs. Lakh NOTE C: OTHER INFORMATION

1. Contingent Liabilities not provided for

a. Claims against the --- --- Company not acknowledged as debts

b. Excise Duty / Service Tax, Liability Disputed 837.33 394.55

c. Cane Purchase Tax, Liability Disputed --- 72.84

d. Income Tax, Liability Disputed 15.74 ---

e. Corporate Guarantees given to the Bankers 5,349.02 3,577.56

7. Disclosure with respect to AS-15

The Company has implemented Revised Accounting Standard - 15 on Employee Benefits and made the provisions accordingly. The disclosure as per revised AS-15 are produced below:

Gratuity

In accordance with the applicable laws, the Company provides for gratuity, a defined retirement plan (Gratuity Plan) covering all staff, workers and officers. The Gratuity Plan provides for, at retirement or termination of employment, an amount based on the respective employee''s last drawn salary and the years of employment with the Company. The Company provides the gratuity benefit through annual contributions to a Gratuity Trust which in turn mainly contributes to Life Insurance Corporation of India (LIC) for this purpose. Under this plan, the settlement obligation remains with the Gratuity Trust. LIC administers the plan and determines the contribution premium required to be paid by the Trust. The Company has also obtained an independent actuarial valuation of the Trust''s Assets and Liabilities, and accordingly, the difference has been provided by the Company. The gratuity liability has been paid by the Company in case of employees, who left during the current period.

8. The amount due to Micro and Small Enterprises as defined in "The Micro, Small and Medium Enterprises Development Act, 2006" has been determined to the extent such parties have been identified on the basis of information available with the Company. The disclosures relating to Micro and Small enterprises as at 31stMarch, 2014.

9. Figures of the previous year have been regrouped / rearranged / recast where necessary.

10. Figures in the brackets pertain to previous year.


Mar 31, 2013

NOTE A - 1: CORPORATE INFORMATION

Incorporated on 11-09-1939, The Ugar Sugar Works Ltd. is one of the leading sugar factories in Karnataka. Its shares are listed on BSE and NSE. The Company is engaged in manufacture and sale of sugar, industrial and potable alcohol, and generation and distribution of electricity. The Company''s plants are located at Ugarkhurd in Belgaum District and at Malli-Nagarhalli Village in Gulbarga District in the state of Karnataka.

NOTE A - 2: BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, as amended, and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

3. Disclosure with respect to AS-15

The Company has implemented Revised Accounting Standard - 15 on Employee Benefits and made the provisions accordingly. The disclosures as per revised AS-15 are produced below:

Gratuity :

In accordance with the applicable laws, the Company provides for gratuity, a defined retirement plan (Gratuity Plan) covering all staff, workers and officers. The Gratuity Plan provides for, at retirement or termination of employment, an amount based on the respective employee''s last drawn salary and the years of employment with the Company. The Company provides the gratuity benefit through annual contributions to a Gratuity Trust which in turn mainly contributes to Life Insurance Corporation of India (LIC) for this purpose. Under this plan, the settlement obligation remains with the Gratuity Trust. LIC administers the plan and determines the contribution premium required to be paid by the Trust. The Company has also obtained an independent actuarial valuation of the Trust''s Assets and Liabilities, and accordingly, the difference has been provided by the Company. The gratuity liability has been paid by the Company in case of employees, who left during the current period.

4. Based on available information, presently, there are no amounts payable to parties mentioned in the Micro, Small and Medium Enterpri ses Development Act, 2006.

5. Disclosure required as per clause 3 2 of the Listing Agreement:

6. Figures of the previous year have been regrouped / rearranged / recast where necessary.

7. Figures in the brackets pertain to previo us year.


Mar 31, 2012

NOTE A - 1: CORPORATE INFORMATION

Incorporated on 11-09-1939, The Ugar Sugar Works Ltd. is one of the leading sugar factories in Karnataka. Its shares are listed on BSE and NSE. The Company is engaged in manufacture and sale of sugar, industrial and potable alcohol, and generation and distribution of electricity. The Company’s plants are located at Ugarkhurd in Belgaum District and at Malli-Nagarhalli Village in Gulbarga District in the state of Karnataka.

NOTE A - 2: BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accouting Standards) Rules, 2006, as amended, and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the conventional cost convention.

1. Terms / Rights attached to Equity Shares

The Company has only one class of equity shares of face value of Re. 1 each, holder of equity share is entitled to one vote per share. Dividend recommended by the Board is subject to approval of the shareholders in the ensuing General Meeting.

For the year 2011-12, the Directors have recommended dividend @ 25% (i.e. Re. 0.25 per equity share of Re. 1) [Previous Year - Nil].The amount of dividend including corporate dividend tax works out to Rs. 326.88 lakh [PreviousYear - Nil].

In the event of liquidation of the Company, the holdersof equityshareswill be entitled to receive remaining assetsof the Company, after distribution of all preferential amounts. The distribution willbe in the proportion of number of equity shares held by the shareholders.

2. Principal terms, security and repayment schedule of long term secured loans

i. Loan from IDBI Bank is availed for working capital, free of interest. The loan is secured by residual charge on fixed assets of the Company. The loan is obtained in the FY2009-10.,The loan isfully repaid on 14-03-2012.

ii. Loan from Bank of Baroda is obtained for setting up sugar factory with cogeneration of power at Jewargi. The rate of interest is presently Base Rate (BR) 25%, i.e. 13.25% p. a. The loan is secured by hypothecation of Plant & Machinery and Stores & Spares at the Jewargi Plant. The loan is repayable in quarterly instalments ofRs. 232.00 lakh, lastinstalmentbei ng due on 05-01-2015.

iii. Loan from Central Bank of India is obtained for setting up sugar factory with cogeneration of power at Jewargi. The rate of interest is presently BR 2.25% i.e. 13% p. a. The loan is secured by hypothecation of Plant & Machinery and Stores & Spares at the Jewargi Plant. The loan is repayable in monthly instalments of Rs. 33.00 lakh, last instalment being due on 01-05-2015.

iv. Loan from Central Bank of India is obtained for installation ofsugar machinery. The rate of interest is presently BR 2.25% i.e. 13% p.a.The loan is secured by hypothecation of the said Machinery. The loan is repayable in monthly instalmentsof Rs. 22.00 lakh, last instalment being due on 01-12-2014.

v. Loan from Sugar Development Fund is obtained for Ugar unit for Modernisation-cum-Expansion. The rate of interest is 4% p. a.The loan is secured by exclusive second charge on al l movable assets of the Company. The Loan is repayable in five yearly instalments of Rs. 114.18 lakh; lastinstalmentbei ng due on 02-01-2013.

vi. Loan from Sugar Development Fund is obtained for Jewargi unit for setting power project. The rate of interest is 4% p. a.The loan is secured by exclusive second charge on all movable and immovable assets ofthe Company. The Loan is repayable in ten six monthly instalments of Rs. 121.59 lakh commencing from 31-12-2013; lastinstalmentbeing due on 30-06-2018.

vii. Deferment of Cane Purchase Tax is granted by Government of Karnataka to encourage additional cane crushing. The Deferment is free of interest and fully repayable in June 2012.

3. There has been no continuing default ason the balance sheet date in repaymentof any of the above borrowings & interestthereon.

3. i. Cash credit hypothecation is secured by hypothecation of stock of stores & spares, stock of molasses, stock in trade and book debts. The cash credit is repayable on demand and carries rate ofinterest at 12% p.a.

ii. Cash credit pledge is secured by pledge of stock of sugar. The cash creditis repayable on demand and carries rate of interest at BR 1% to 2%, i.e. 11.65%to 12.75% p.a.

iii. Fixed Deposits are unsecured and are accepted from shareholders and public for a period of one year. The rate of interest for fixed deposits is 10% p.a. for senior citizens and 9.5%p.a.for others.

4. There has been no continuing default as on the balance sheet date in repayment of any of the above borrowings & interest thereon.

Financial Financial Particulars Year 2011-12 Year 2010-11 Rs. Lakh Rs. Lakh

NOTE C: OTHER INFORMATION

1. Contingent Liabilities not provided for

a. Claims against the Company not acknowledged as debts - 41.00

b. Excise Duty / Service Tax, Liability Disputed 207.22 179.92

c. Cane Purchase Tax, Liability Disputed 72.84 72.84

d. Corporate Guarantees givento the Bankers 426.24 726.14

2. Commitments

Estimated amounts of contracts remaining to be executed on capital account 94.24 14.17

3. Trade Receivables in Note 18 include amount due from a private limited company in which directors ofthe Company are directors - 0.14

II. The Company does not have any Secondary Business Segments.

III. Significant Accounting Policies relating to Segment Reporting

a. Business Segments are determined on the basis of the goods manufactured and in accordance with Accounting Standard 17.

b. Inter-segment transfers are recorded at cost except for own generated Bagasse and Molasses, cost of which is unascertainable and which are recorded at prevalent purchase price.

c. Segment report is prepared in conformity with accounting policies adopted for preparing and presenting financial statements.

NOTE C: OTHER INFORMATION

3. Disclosure with respect to AS-15

The Company has implemented Revised Accounting Standard - 15 on Employee Benefits and made the provisions accordingly. The disclosure as per revised AS-15 are produced below:

Gratuity

In accordance with the applicable laws, the Company provides for gratuity, a defined retirement plan (Gratuity Plan) covering all staff, workers and officers. The Gratuity Plan provides for, at retirement or termination of employment, an amount based on the respective employee's last drawn salary and the years of employment with the Company. The Company provides the gratuity benefit through annual contributions to a Gratuity Trust which in turn mainly contributes to Life Insurance Corporation of India (LIC) for this purpose. Under this plan, the settlement obligation remains with the Gratuity Trust. LIC administers the plan and determines the contribution premium required to be paid by the Trust. The Company has also obtained an independent actuarial valuation of the Trust's Assets and Liabilities, and accordingly, the difference has been provided by the Company. The gratuity liability has been paid by the Company in case of employees, who left duringthe current period.

4. Based on available information, presently, there are no amounts payable to parties mentioned in the Micro, Small and Medium Enterprises Development Act, 2006.

5. Figures of the previous year have been regrouped / rearranged / recast where necessary.

6. Figures in the brackets pertain to previous year.

Notes:

1. Bonus shares of the value of Rs. 7.47 lakh, Rs. 10.65 lakh, Rs. 16.82 lakh, Rs. 50.00 lakh, Rs. 75.00 lakh and Rs. 337.50 lakh were issued as fully paid bonus shares, respectively in the years 1950-51, 1966-67, 1973-74, 1994-95, 1997-98 and 2004-05, by capitalization of reserves.

2. Accounting year ended 30-09-1985 comprised of 15 months and those ended on 31-03-1990, 30-09-1995 comprised of 18 months and those ended on 31-03-2007 comprised of 6 months only.

3. Dividend for the year ended 30-09-1995 includes interim dividend.

4. Total Income includes value of sales, income from bye-products and other income, and adjustments in the value of opening and closing stocks of finished goods.

5. Figures relating to FY ended 2005-06 , 2006-07 includes figures of Tasgaon and Phaltan and 2008-09, 2009-10, 2010-11 and 2011-12 includes figures of Jewargi unit.


Mar 31, 2011

31-03-2011 31-03-2010

Rs. Lakh Rs. Lakh

1. Contingent Liabilities not provided for Claims against the Company not

acknowledged as debts 41.00 41.00

Excise Duty, liability disputed 179.86 168.31

Cane Purchase Tax, Liability Disputed 72.84 72.84

Corporate Guarantees given to Bankers 3,761.00 3,618.00

II. The Company does not have any Secondary Business Segments

Significant Accounting Policies relating to Segment Reporting

1. Business Segments are determined on the basis of the goods manufactured and in accordance with Account- ing Standard 17.

2. Inter-segment transfers are recorded at cost except for own generated Bagasse and Molasses, cost of which is unascertainable and which are recorded at prevalent purchase price.

3. Segment report is prepared in conformity with accounting policies adopted for preparing and presenting financial statements.

2. Disclosure with respect to AS-15

The Company has implemented Revised Accounting Standard - 15 on Employee Benefits and made the provisions accordingly. The disclosure as per revised AS-15 are produced below:

Gratuity

In accordance with the applicable laws, the Company provides for gratuity, a defined retirement plan (Gratuity Plan) covering all staff, workers and officers. The Gratuity Plan prov ides for, at retirement or termination of employment, an amount based on the respective employee's last drawn salary and the years of employment with the Company. The Company provides the gratuity benefit through annual contributions to a Gratuity Trust which in turn mainly contributes to Life Insurance Corporation of India (LIC) for this purpose. Under this plan, the settlement obligation remains with the Gratuity Trust. LIC administers the plan and determines the contribution premium required to be paid by the Trust. The Company has also obtained an independent actuarial valuation of the Trust's Assets and Liabilities, and accordingly, the difference has been provided by the Company. The gratuity liability has been paid by the Company in case of employees, who left during the current period.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relev ant factors, such as supply and demand in the employment market. The above information is certified by the actuary.

3. Disclosure of Related Parties and Related Party Transactions

I Name of the Related Party over which control exists Nature of Relationship

i. Ugar Consultancy Ltd. - Associate Company

ii. Ugar Theatres Pvt. Ltd. - Associate Company

iii. Ugar Quality Packaging Pvt. Ltd. - Associate Company

II. Names of the Related Parties with whom transactions were carried out during the year and description of relationship

1. Key Management Personnel (KMP) Designation

i. Shri Prafulla Vinayak Shirgaokar - Managing Director (MD)

ii. Shri Shishir Suresh Shirgaokar - Executive Director (ED)

2. Relatives of Key Management Personnel

Name of the transacting related party Nature of Relationship

i. Shri Rajendra Vinayak Shirgaokar - Chairman & Mentor

(C&M) and Brother of MD

ii. Sau. Smita Prafulla Shirgaokar - Wife of MD

iii. Sau. Vinita Mahesh Samant - Daughter of MD

iv. Sau. Shilpa Naval Kumar - Daughter of MD

v. Sau. Savita Shishir Shirgaokar - Wife of ED

vi. Shri Niraj Shishir Shirgaokar - Son of ED

vii. Sau. Puja Hrishikesh Pusalkar - Daughter of ED

viii. Sau. Sindhu Vijay Dalvi - Sister of C&M and MD

ix. Sau. Rekha Rajanikant Khedekar - Sister of ED

x. Sau. Chitra Arun Dalvi - Sister of ED

4. Enterprises over which KMP or Relatives of KMP are able to exercise significant influence

Name of the transacting related party Nature of Relationship

i. S. B. Reshellers Pvt. Ltd. - MD is a director

ii. Shantaram Machineries Pvt. Ltd. - MD and ED are directors

iii. Sangli Fabricators Pvt. Ltd. - ED is a director

iv. Tara Tiles Pvt. Ltd. - MD and ED are directors

v. Ugar Pipe Industries Pvt. Ltd. - MD and ED are directors

vi. Vinayak Shirgaokar Investments Pvt. Ltd. - MD is a director

vii. D. M. Shirgaokar Investments Pvt. Ltd. - MD and ED are directors

viii. Prafulla Shirgaokar Investments Pvt. Ltd. - MD and Wife of MD are directors

ix. Mohan Shirgaokar Investments Pvt. Ltd. - MD and ED are directors

x. Shishir Shirgaokar Investments Pvt. Ltd. - ED, Wife of ED and ED's Son's

Wife are directors

xi. Prabhakar Shirgaokar Investments Pvt. Ltd. - MD and ED are directors

xii. M/s Shirgaokar Brothers - MD, ED and Son of ED are partners

5. Based on available information, presently, there are no amounts payable to parties mentioned in the Micro, Small and Medium Enterprises Development Act, 2006.

6. Figures for the previous year are regrouped / recast where necessary.

7. Working for the year has been done considering the current trend in the sugar prices.

8. Figures in the brackets pertain to previous year.


Mar 31, 2010

1. Contingent Liabilities not provided for

Claims against the Company not

acknowledged as debts 41.00 41.00

Excise Duty, liability disputed 168.31 144.44

Cane Purchase Tax, Liability Disputed 72.84 0.00

Corporate Guarantees given to Bankers 3,618.00 4,282.00

II. The Company does not have any Secondary Business Segments

Significant Accounting Policies relating to Segment Reporting

1. Business Segments are determined on the basis of the goods manufactured and in accordance with Accounting Standard 17.

2. Inter-segment transfers are recorded at cost except for own generated Bagasse and Molasses, cost of which is unascertainable and which are recorded at prevalent purchase price.

3. Segment report is prepared in conformity with accounting policies adopted for preparing and presenting financial statements.

2. Discontinued Operations (Disclosure as per Accounting Standard - 24)

The Company has discontinued sugar manufacturing activity at leased units at Tasgaon and Phaltan from the crushing season 2007-08. The decision to discontinue the lease operations was taken on 29-09-2007. Final settlement is in progress. The foilowing statement shows the position of liabilities and assets and of revenue and expenses of continuing and discontinued operations:

3. Disclosure with respect to AS-15

The Company has implemented Revised Accounting Standard - 15 on Employee Benefits and made the provisions accordingly. The disclosure as per revised AS-15 are produced below:

Gratuity

In accordance with the applicable laws, the Company provides for gratuity, a defined retirement plan (Gratuity Plan) covering all staff, workers and officers. The Gratuity Plan provides for, at retirement or termination of employment, an amount based on the respective employees last drawn salary and the years of employment with the Company. The Company provides the gratuity benefit through annual contributions to a Gratuity Trust which in turn mainly contributes to Life Insurance Corporation of India (LIC) for this purpose. Under this plan, the settlement obligation remains with the Gratuity Trust. LIC administers the plan and determines the contribution premium required to be paid by the Trust. The Company has also obtained an independent actuarial valuation of the Trusts Assets and Liabilities, and accordingly, the difference has been provided by the Company. The gratuity liability has been paid by the Company in case of employees, who left during the current period.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. The above information is certified by the actuary.

4. Disclosure of Related Parties and Related Party Transactions

I. Name of the Related Party over which control exists Nature of Relationship

i. Ugar Consultancy Ltd. .....Associate Company

ii. Ugar Theatres Private Limited .....Associate Company

iii. Ugar Quality Packaging Pvt. Ltd. .....Associate Company

iv. Sadashiva Sugars Ltd. .....Associate Company (till October 2009)

II. Names of the Related Parties with whom transactions were carried out during the year and description of relationship

1. Key Management Personnel (KMP) Designation

i. Shri Prafulla Vinayak Shirgaokar .....Managing Director (MD)

ii. Shri Shishir Suresh Shirgaokar .....Executive Director (ED)

2. Relatives of Key Management Personnel

Name of the transacting related party Nature of Relationship

i. Shri Rajendra Vinayak Shirgaokar .....Brotherof MD

ii. Sau. Smita Prafulla Shirgaokar .....Wife of MD

iii. Sau. Vinita Mahesh Samant .....Daughter of MD

iv. Sau. Shilpa Naval Kumar .....Daughter of MD

v. Sau. Savita Shishir Shirgaokar .....Wife of ED

vi. Shri Niraj Shishir Shirgaokar .....Son of ED

vii. Sau. Puja Hrishikesh Pusalkar .....Daughter of ED

viii. Sau. Sindhu Vijay Dalvi .....Sister of MD

ix. Sau. Rekha Rajanikant Khedekar .....Sister of ED

x. Sau. Chitra Arun Dalvi .....Sister of ED

3. Enterprises over which KMP or Relatives of KMP are able to exercise significant influence

Name of the transacting related party Nature of Relationship

i. S. B. Reshellers Pvt. Ltd. .....MD is a director

ii. Shantaram Machineries Pvt. Ltd. .....MD and ED are directors

iii. Sangli Fabricators Pvt. Ltd. .....ED is a director

iv. Tara Tiles Pvt. Ltd. .....MD and ED are directors

v. Ugar Pipe Industries Pvt. Ltd. .....MD and ED are directors

vi. Vinayak Shirgaokar Investments Pvt. Ltd .....MD is a director

vii. D. M. Shirgaokar Investments Pvt. Ltd. .....MD and ED are directors

viii. Prafulla Shirgaokar Investments Pvt. Ltd .....MD and Wife of MD are directors

ix.Mohan Shirgaokar Investments Pvt. Ltd. .....MD and ED are directors

x. Shishir Shirgaokar Investments Pvt. Ltd. .....ED, Wife of ED and EDs Sons Wife are directors

xi.Prabhakar Shirgaokar Investments Pvt. Ltd. .....MD and ED are directors

xii. M/s Shirgaokar Brothers .....MD, ED and Son of ED are partners

5. Based on available information, presently, there are no amounts payable to parties mentioned in the Micro, Small and Medium Enterprises Development Act, 2006.

6. Figures for the previous year are regrouped / recast where necessary.

7. Figures in the brackets pertain to previous year.

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