Mar 31, 2016
(b) Terms / rights attached to Equity Shares
Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution to equity shareholder will be in proportion to the amount paid on the shares held by them.
(c) Terms of redemption of Preference Shares
The Non-Convertible Cumulative Redeemable Preference Shares (NCCRPS) carries dividend @ 8. 5% per annum. NCCRPS shall be redeemable at par on 2 August 2023 being twelve yea and one day from the date of allotment i. e. 01 August 2011 with a right vested to the Board of Directors to redeem it earlier, subject to the consent of the lender and dividend is payable at the time of redemption of the NCCRPS. However, the Board reserves the right to pay the dividend earlier with the consent of the Lender and subject to the availability of profit.
(d) Details of shareholder holding more than 5% shares in the company
(a) Term Loan from Banks carry interest rate in the range of 13. 77% to 14. 99% and are repayable in 32 quarterly installments by 30th June 2020. These loans are secured by fit mortgage / charge on all the immovable and movable assets (save and except book debts), present and future, of the Company''s Sugar Units at Hargaon, Narkatiaganj and Dhadha Bujurg (Hata) and Distillery Unit at Hargaon, ranking pari-passu amongst the various lende, subject to prior charges created on movables for working capital borrowings from the Company''s bank.
The above Term Loan is further secured as follows.
(i) Second charge on current assets of Sugar Unit at Dhadha Bujurg (Hata) and fixed assets of Sugar Unit at Rosa ranking pari-passu amongst the various lender.
(ii) Third charge on current assets of Sugar & Distillery Units at Hargaon and Sugar Unit at Narkatiaganj.
(iii) Pledge of 64, 79,294 equity shares of the Company held by the promoter group companies, ranking pari-passu amongst the various lender.
(b) Term loans from banks under Financial Assistance Scheme (SEFASU 2014), carry interest rate in the range of 11. 4% to 12. 3% p. a. and is repayable in12 quarterly installments by 30 June 2019. The Company is entitled to interest subvention from the Government of India up to 12% as per terms of scheme and the same will be directly rumbaed to bank by Department of Food & Public Distribution and hence, no liability towards interest under subvention has been provided in these accounts. The above loan is secured by the fit pari passu charge on all the fixed assets of both present and future of Sugar and Co-generation units of the Company at Hargaon & Dhadha Bujurg (Hata) and Sugar units of the Company at Narkatiaganj & Rosa.
(c) Term loans from banks under Financial Assistance Scheme of the Government of India (SOFT LOAN2015) carry interest rate in the range of 11. 60% to 11 75% p. a. And are re payable in 20 equal quarterly installments by 30 September 2022. The Company is entitled to interest subvention from the Government of India up to 10% for fit year as per terms of the Scheme and the same will be rumbaed directly to banks by the Department of Food & Public Distribution and hence, no liability towards interest under subvention has been provided in these accounts. The above loans are secured / to be secured by the fit pari-passu charge on all the fixed assets, both present and future, of Sugar and Co-generation units of the Company at Hargaon and Dhadha Bujurg (Hata) and Sugar units of the Company at Narkatiaganj and Rosa.
(d) Term loans from a bank under Financial Assistance Scheme of the State Government of Bihar (SOFT LOAN 2015), carry interest rate of 13% p. a. and are repayable in 20 equal quarterly installments by 31 March 2021. The Company is entitled to interest subvention from the State Government of Bihar up to 12% for fit year and 10% thereafter as per terms of the Scheme and the same will be rumbaed directly
The above loans are repayable as under.
to banks by the State Government of Bihar and hence, no liability towards interest under subvention has been provided in these accounts. The above loans are secured / to be secured by the fit pari-passu charge on all the fixed assets, both present and future, of Sugar and Co-generation units of the Company at Hargaon and Dhadha Bujurg (Hata) and Sugar units of the Company at Narkatiaganj and Rosa.
(e) Term loans from the Sugar Development Fund, which carry interest of 4% p. a. , are secured by a second charge on all the immovable / movable assets (save and except book debts) present and future of the Company''s Sugar Units at Hargaon and Narkatiaganj.
Provision for warranties
A provision is recognized for expected warranty claims on products based on the management''s estimate computed on the basis of past experience. It is expected that the entire provision will be utilized within one year of the reporting date, since the warranty is generally for one year. The table below gives information about movement in warranties provisions.
Provision for litigation, claims and contingencies The Company has estimated the provision for pending litigation, claims and demands based on the assessment of probability for these demands being crystallizing against the Company in due Coue. The table below gives information about movement in litigation, claims and contingencies provisions.
Cash Credit from bank other than from District Co-operative Bank Ltd. is secured by hypothecation of the entire current assets of the Company and also by a charge on the immovable assets as follows :
(i) Canning factory at Allahabad - Fit Charge;
(ii) Sugar Unit at Rosa - Fit Charge;
(iii) Sugar Unit at Dhadha Bujurg (Hata) - Second Charge;
(iv). Sugar Units at Hargaon and Narkatiaganj - Third Charge.
In addition, Cash Credit from banks are also secured by pledge of 64, 79,294 equity shares of the Company held by the promoter group companies, ranking pari-passu amongst the various lender. Cash credit of Rs,11,440.14 lacs (Rs, 12,156. 16lacs) from District Co-operative Bank Ltd. is secured by pledge of the Stock of Sugar pertaining to Sugar Units at Hargaon and Rosa. Cash Credit borrowings carry interest rates ranging between 11. 25% to12.30% pea.
Although, there is carried forward unabsorbed depreciation and business losses as on the reporting date, yet in view of the future profitability projections, the Company is certain that there would be sufficient taxable income in future, to claim the above tax credit.
1. AGRICULTURAL INCOME (CONTD.)
Details of revenue and expenses pertaining to agricultural activities, which have been included in Notes 20 to 26 under th respective heads, are as follows:
2. GRATUITY - DEFINED BENEFIT PLAN
The Company has a defined benefit gratuity plan. Every employee who has completed at least five yea or more of service is entitled to Gratuity on terms as per the provisions of The Payment of Gratuity Act, 1972. The Company has got an approved gratuity fund which has taken an insurance policy with Life Insurance Corporation of India (LIC) to cover the gratuity liabilities.
The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the plan.
The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant facto, such as supply and demand in the employment market.
The overall expected rate of return on assets is determined based on the market prices prevailing on the date, applicable to the year over which the obligation is to be settled.
Defined Contribution Plan:
The Company has recognized the following amount as an expense and included under, "Contribution to Provident & Other Funds".
3. LEASES
Operating lease:
Certain office premises, go downs, cane purchasing centre etc. Are held on operating lease. The leases range up to 3 yea and are renewable either mutually or at the option of the Company. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease agreements. There are no subleases. The leases are cancellable.
4. SEGMENT INFORMATION
The primary segment reporting format is determined to be business segments as the companyâs risks and rates of return are affected predominantly by differences in the products produced. Secondary information is reported geographically. The operating businesses are organized and managed separately according to the nature of the products and services provided, with each segment representing a strategic business unit that offe different products and serves different markets. Accordingly, the Company has identified "Sugar", "Spirits", "Co-generation" and "Food processing" as the operating segments:
Sugar - Consists of manufacture, trading and sale of Sugar, Molasses and Biogases
Spirits - Consists of manufacture and sale of Industrial Spirits (including Ethanol), Fusel Oil and Bio-Compost Co-generation - Consists of generation and transmission of Power Food Processing Products - Consists of Canned Fruits and Vegetables, Jams, Jellies, Squashes and Juices.
The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into its Indian and Overeats Operations.
* Based on discussions with the solicitor / favorable decisions in similar cases / legal opinions taken by the Company, the management believes that it is possible but not probable the action will succeed and accordingly no provision there against is considered necessary.
5. A civil suit is pending against the Company''s sugar unit at Dhadha Bujurg (Hata), which is already in operation. The Company has been legally advised that the said civil suit is not tenable as per law.
6. The Company''s Board of Directors has approved a Composite Scheme of arrangement amongst the Company, Upper Ganges Sugar & Industries Limited, Palash Securities Limited, Allahabad Canning Limited, Ganges Securities Limited, Cinnatolliah Tea Limited, Vaishali Sugar & Energy Limited, Magadh Sugar & Energy Limited, Avadh Sugar & Energy Limited in terms of the provisions of Section 391 to 394 and other applicable provisions of the Companies Act, 1956 & Companies Act, 2013, to the extent applicable to restructure and de-link its multiple business in separate new entities w. e. f. 1 April 2015 subject to necessary approvals. The Company is in the process of obtaining necessary approvals from various concerned authorities and pending such approvals, no accounting adjustment has been made in these financial statements.
7. The net worth of the Company is completely eroded due to losses in earlier yea. However, the Company earned profits during the current year consequent to improved realization and sugar yields. Further, the Company is also in the process of business restructuring as mentioned in note 37 above. In view of the above, the management is certain that the Company would be in a position to generate positive cash flows and profits in future and accordingly, these financial statements have been drawn as per the going concern assumption.
8. Loans and advances in the nature of loans given to subsidiaries and associates and firms / companies in which the director are interested and which are outstanding at the end of the year in terms of Clause 32 of the Listing Agreement with Stock Exchanges.
9. Previous year''s figures including those given in brackets have been regrouped / rearranged wherever necessary.
Mar 31, 2015
1. CORPORATE INFORMATION
The Oudh Sugar Mills Limited (the Company) is a public Company
domiciled in India. Its shares are listed on National and Bombay Stock
Exchanges in India. The Company is primarily engaged in manufacture and
sale of Sugar and its By-products (Molasses and Bagasse), Spirits
including Ethanol, Power and Food Processing Products. The Company
presently has manufacturing facilities at Hargaon District Sitapur,
Dhadha Bujurg District Kushinagar, Rosa District Shahjahanpur and
Allahabad in the State of Uttar Pradesh and at Narkatiaganj District
West Champaran in the State of Bihar.
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 Section 133 of the Companies Act, 2013, read together with
paragraph 7 of the Companies (Accounts) Rules, 2014. The financial
statements have been prepared on an accrual basis and under the
historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year, except for the
change in accounting policy explained below.
(b) Terms / rights attached to Equity Shares
Each holder of equity shares is entitled to one vote per share. In the
event of liquidation of the company, the holders of equity shares will
be entitled to receive remaining assets of the company, after
distribution of all preferential amounts. The distribution to equity
shareholders will be in proportion to the amount paid on the shares
held by them.
(c) Terms of redemption of Preference Shares
The Non-Convertible Cumulative Redeemable Preference Shares (CRPS)
carries dividend @ 8.5% per annum.
CRPS shall be redeemable at par on 2nd August 2023 being twelve years
and one day from the date of allotment i.e. 01st August 2011 with a
right vested to the Board of Directors to redeem it earlier, subject to
the consent of the lenders and dividend is payable at the time of
redemption of the CRPS. However, the Board reserves the right to pay
the dividend earlier with the consent of the Lenders and subject to the
availability of profit.
(a) Term Loans and FITL from Banks carry interest rate in the range of
13.77% to 14.99% and are repayable in 32 and 12 quarterly instalments
respectively by 30th June 2020 and 30th June 2015. These loans are
secured by first mortgage / charge on all the immovable and movable
assets (save and except book debts), present and future, of the
Company's Sugar Units at Hargaon, Narkatiaganj and Dhadha Bujurg (Hata)
and Distillery Unit at Hargaon, ranking pari-passu amongst the various
lenders, subject to prior charges created on movables for working
capital borrowings from the Company's bankers.
The above Term Loans including FITL are further secured as follows.
(i) Second charge on current assets of Sugar Unit at Dhadha Bujurg
(Hata) ranking pari-passu amongst the various lenders.
Second charge on fixed assets of Sugar Unit at Rosa ranking pari-passu
amongst the various lenders.
(ii) Third charge on current assets of Sugar Unit at Narkatiaganj.
(iii) Third charge on current assets of Sugar & Distillery Units at
Hargaon.
(iv) Pledge of 64,79,294 equity shares of the Company held by the
promoter group companies, ranking pari- passu amongst the various
lenders.
(b) Term loans from banks under Financial Assistance Scheme (SEFASU
2014), carry interest rate in the range of 12% to 13% p.a. and is
repayable in 12 quarterly instalments by 30th June 2019. The Company is
entitled to interest subvention from the Government of India upto 12%
as per terms of scheme and the same will be directly reimbursed to bank
by Department of Food & Public Distribution and hence, no liability
towards interest has been provided in these accounts. The above loan is
secured by the first pari passu charge on all the fixed assets of both
present and future of Sugar and Co-generation units of the Company at
Hargaon & Dhadha Bujurg (Hata) and Sugar units of the Company at
Narkatiaganj & Rosa.
(c) Term loans from the Sugar Development Fund, which carry interest of
4% p.a., are secured by a second charge on all the immovable / movable
assets (save and except book debts) present and future of the Company's
Sugar Units at Hargaon and Narkatiaganj.
Cash Credit from bank other than from District Co-operative Bank Ltd.
is secured by hypothecation of the entire current assets of the Company
and also by a charge on the immovable assets as follows :
(i) Canning factory at Allahabad - First Charge;
(ii) Sugar Unit at Rosa - First Charge;
(iii) Sugar Unit at Dhadha Bujurg (Hata) - Second Charge;
(iv) Sugar Units at Hargaon and Narkatiaganj - Third Charge.
In addition, Cash Credit from banks are also secured by pledge of
64,79,294 equity shares of the Company held by the promoter group
companies, ranking pari-passu amongst the various lenders.
Cash credit of Rs. 12,156.16 lacs (Rs. 14,082.15 lacs) from District
Co-operative Bank Ltd. is secured by pledge of the Stock of Sugar
pertaining to Sugar Units at Hargaon and Rosa.
Cash Credit borrowings carry interest rates ranging between 11.75% to
13.00% p.a.
3. GRATUITY - DEFINED BENEFIT PLAN
The Company has a defined benefit gratuity plan. Every employee who has
completed at least five years or more of service is entitled to
Gratuity on terms as per the provisions of The Payment of Gratuity Act,
1972. The Company has got an approved gratuity fund which has taken an
insurance policy with Life Insurance Corporation of India (LIC) to
cover the gratuity liabilities.
The following tables summarize the components of net benefit expense
recognized in the statement of profit and loss and the funded status
and amounts recognized in the balance sheet for the plan.
4. Bearer Equity Share Coupons having a realized value of Rs. 0.06 lacs
(Rs. 0.06 lacs) has been shown separately under "Shareholders' Funds" as
the holders of such coupons are yet to tender coupon certificates to
claim the underlying security i.e. equity shares of equal paid up
value.
5. SEGMENT INFORMATION
The primary segment reporting format is determined to be business
segments as the company's risks and rates of return are affected
predominantly by differences in the products produced. Secondary
information is reported geographically. The operating businesses are
organized and managed separately according to the nature of the
products and services provided, with each segment representing a
strategic business unit that offers different products and serves
different markets. Accordingly, the Company has identified "Sugar",
"Spirits", "Co-generation" and "Food processing" as the operating
segments :
Sugar - Consists of manufacture, trading and sale of Sugar, Molasses
and Bagasse
Spirits - Consists of manufacture and sale of Industrial Spirits
(including Ethanol), Fusel Oil and Bio-Compost Co-generation - Consists
of generation and transmission of Power
Food Processing Products - Consists of Canned Fruits and Vegetables,
Jams, Jellies, Squashes and Juices
The Company primarily operates in India and therefore the analysis of
geographical segments is demarcated into its Indian and Overseas
Operations.
6. CONTINGENT LIABILITIES
Rs. in lacs
Year Ended Year Ended
31st March 2015 31st March 2014
(a) Demands / Claims by various
Government Authorities and others not
acknowledged as debt and contested
by the Company :
(i) Excise Duty & Service Tax 10,329.87 5,908.33
(ii) Sales & Entry Tax 174.22 96.08
(iii) Duty under State Acts 361.04 188.92
(iv) Others 68.28 144.90
Total 10,933.41 6,338.23
(b) Outstanding towards Crop Loan
disbursed to growers for which corporate
588.52 762.35
guarantee is given to a bank
(c) Bank Guarantees outstanding 1,157.97 935.28
(d) Bills discounted with banks - 83.80
(e) Arrear Dividend (including tax)
on Non-convertible Cumulative Redeemable 1,835.57 1,325.60
Preference Shares (CRPS)
* Based on discussions with the solicitors / favourable decisions in
similar cases / legal opinions taken by the Company, the management
believes that it is possible but not probable the action will succeed
and accordingly no provision there against is considered necessary.
7. A civil suit is pending against the Company's sugar unit at Dhadha
Bujurg (Hata), which is already in operation. The Company has been
legally advised that the said civil suit is not tenable as per law.
8. The Government of Uttar Pradesh has announced Subsidy for Sugar
Industry for the Sugar Season 2014-2015 linked to average selling price
of sugar and its by-products during the period 1st October 2014 to 31st
May 2015. The average selling prices of sugar and the by-products have
been significatly lower than the thresholds specified in the subsidy
scheme considering the actual and future realisation. In view of this,
the Company has estimated and recognised subsidy amounting to Rs.
6,172.61 lacs during the year. The Company is confident of realising
the subsidy in view of the current prices of sugar and the by-products.
9. The Company's Board of Directors at its meeting held on 13th March
2015 has approved a Composite Scheme of Arrangement amongst the
Company, Upper Ganges Sugar & Industries Limited, Palash Securities
Limited, Allahabad Canning Limited, Ganges Securities Limited,
Cinnatolliah Tea Limited, Vaishali Sugar & Energy Limited, Magadh Sugar
& Energy Limited, Avadh Sugar & Energy Limited in terms of the
provisions of Section 391 to 394 and other applicable provisions of the
Companies Act, 1956 & Companies Act, 2013, to the extent applicable to
restructure and de-link its multiple business in separate new entities
w.e.f. 1st April 2015 subject to necessary approvals. Accordingly, the
Company has incorporated new subsidiaries namely Allahabad Canning
Limited, Palash Securities Limited, Vaishali Sugar & Energy Limited and
the joint venture entity namely Avadh Sugar & Energy Limited. The
Company is in the process of filing the scheme for approval with the
concerned authorities.
10. Due to Steep decline in sugar realization, the Company has incurred
significant higher losses during the current year and net- worth of the
Company is completely eroded. The Sugar manufacturers are in active
discussions with the State and Central Governments on the matter of
sugar cane and other incentives for the sugar industry in order to make
the operations viable. The management is hopeful of positive outcome
from the discussions with the Governments and expects to be in a
position to generate positive cash flow and profitability in future and
accordingly, these financial statements have been drawn up on the going
concern assumption.
Mar 31, 2014
CORPORATE INFORMATION
The oudh Sugar Mills Limited (the Company) is a public Company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956. Its shares are listed on National and Bombay
Stock Exchanges in india. The Company is primarily engaged in
manufacture and sale of Sugar and its By-products (Molasses and
Bagasse), Spirits including Ethanol, Power and Food Processing
Products. The Company presently has manufacturing facilities at Hargaon
District Sitapur, Dhadha Bujurg District Kushinagar, Rosa District
Shahjahanpur and Allahabad in the State of uttar Pradesh and at
Narkatiaganj District West Champaran in the State of Bihar.
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 read with
General Circular 8/2014 dated 4 April 2014, issued by the Ministry of
Corporate Affairs. The financial statements have been prepared on an
accrual basis and under the historical cost convention.
1. Share capital
(a) Terms / rights attached to Equity Shares
Each holder of equity shares is entitled to one vote per share. in the
event of liquidation of the company, the holders of equity shares will
be entitled to receive remaining assets of the company, after
distribution of all preferential amounts. The distribution to equity
shareholders will be in proportion to the amount paid on the shares
held by them.
(b) Terms of redemption of preference Shares
The Non-Convertible Cumulative Redeemable Preference Shares (CRPS)
carries dividend @ 8.5% per annum.
CRPS shall be redeemable at par on 2nd August 2023 being twelve years
and one day from the date of allotment i.e. 1st August 2011 with a
right vested to the Board of Directors to redeem it earlier, subject to
the consent of the lenders. However, no redemption will take place
before 30th June 2014.
Dividend is payable at the time of redemption of the CRPS. However, the
Board reserves the right to pay the dividend earlier with the consent
of the Lenders and subject to the availability of profit.
2. Long-term borrowings
(a) Term Loans and FiTL from Banks carry interest rate in the range of
13.77% to 14.99% and are repayable in 32 and 12 quarterly instalments
respectively by 30th June 2020 and 30th June 2015. These loans are
secured by first mortgage / charge on all the immovable and movable
assets (save and except book debts), present and future, of the
Company''s Sugar units at Hargaon, Narkatiaganj and Dhadha Bujurg (Hata)
and Distillery unit at Hargaon, ranking pari-passu amongst the various
lenders, subject to prior charges created on movables for working
capital borrowings from the Company''s bankers.
The above Term Loans including FiTL are further secured as follows.
(i) Second charge on current assets of Sugar unit at Dhadha Bujurg
(Hata) ranking pari-passu amongst the various lenders.
Second charge on fixed assets of Sugar unit at Rosa ranking pari-passu
amongst the various lenders.
(ii) Third charge on current assets of Sugar unit at Narkatiaganj.
(iii) Third charge on current assets of Sugar & Distillery units at
Hargaon.
(iv) Pledge of 64,79,294 equity shares of the Company held by the
promoter group companies, ranking pari- passu amongst the various
lenders.
(b) Term loans from a bank under Financial Assistance Scheme (SEFASu
2014), carry interest of 12% p.a. and is repayable in 12 equal
quarterly instalments by 30th March 2019. The Company is entitled to
interest subvention from the government of india upto 12% as per terms
of scheme and the same will be directly reimbursed to bank by
Department of Food & Public Distribution and hence, no liability
towards interest has been provided in these accounts. The above loan is
to be secured by the first pari passu charge on all the fixed assets of
both present and future of Sugar and Co-generation units of the Company
at Hargaon & Dhadha Bujurg (Hata), and Sugar units of the Company at
Narkatiaganj & Rosa.
(c) Term loans from the Sugar Development Fund, which carry interest of
4% p.a., are secured by a second charge on all the immovable / movable
assets (save and except book debts) present and future of the Company''s
Sugar units at Hargaon and Narkatiaganj and Distillery unit at Hargaon.
3. PROVISIONS
A provision is recognised for expected warranty claims on products
based on the management''s estimate computed on the basis of past
experience. It is expected that the entire provision will be utilised
within one year of the reporting date, since the warranty is generally
for one year. The table below gives information about movement in
warranties provisions.
4. SHORT-TERM BORROWINGS
Cash Credit from banks other than from State Bank of Patiala, District
Co-operative Bank Ltd. and U.P. Co-operative Bank Ltd. are secured by
hypothecation of the entire current assets of the Company and also by a
charge on the immovable assets as follows :
(i) Canning factory at Allahabad - First Charge;
(ii) Sugar Unit at Rosa - First Charge;
(iii) Sugar Unit at Dhadha Bujurg (Hata) - Second Charge;
(iv) Sugar Units at Hargaon and Narkatiaganj - Third Charge.
In addition, Cash Credit from banks are also secured by pledge of
64,79,294 equity shares of the Company held by the promoter group
companies, ranking pari-passu amongst the various lenders.
Cash credit of Rs.14,082.15 lacs Rs. 5 603.17 lacs) from State Bank of
Patiala, District Co-operative Bank Ltd. and U.P. Co- operative Bank
Ltd. are secured by pledge of the Stock of Sugar pertaining to Sugar
Units at Rosa, Hargaon and Dhadha Bujurg (Hata).
Cash Credit borrowings carry interest rates ranging between 11.25% to
13.00% p.a.
5. TANGIBLE ASSETS
(a) Includes Rs. 3.46 lacs 3.46 lacs) being the value of agricultural
land measuring about 3839 acres together with estimated written down
value of immovable assets thereon, taken over by the Government of
Uttar Pradesh under the U.P. Imposition of Ceiling of Land Holding
Act,1960, a case whereof is pending in the court.
(b) Title deeds for Rs. 433.26 lacs (Rs. 433.26 lacs) are yet to be
executed in favour of the Company.
(c) Includes assets held in joint ownership with others - Gross Block
Rs. 201.22 lacs (Rs. 166.01 lacs) and Net Block Rs. 104.91 lacs (Rs.
77.13 lacs).
6. NON-CURRENT INVESTMENTS
(a) Deposited / pledged with various Government authorities.
(b) The figures, being less than Rs. 500, have been shown above as
blank.
(c) The cost of following unquoted investments in equity shares (fully
paid up) had been written off, though quantity thereof appears in the
books.
7. DEFERRED TAX ASSET (NET)
Although, there is carried forward unabsorbed depreciation and business
losses as on the reporting date, yet in view of the future
profitability projections, the Company is virtually certain that there
would be sufficient taxable income in future, to claim the above tax
credit.
8. GRATUITY - DEFINED BENEFIT PLAN
The Company has a defined benefit gratuity plan. Every employee who has
completed at least five years or more of service is entitled to
Gratuity on terms as per the provisions of The Payment of Gratuity Act,
1972. The Company has got an approved gratuity fund which has taken an
insurance policy with Life Insurance Corporation of India (LIC) to
cover the gratuity liabilities.
The following tables summarise the components of net benefit expense
recognised in the statement of profit and loss and the funded status
and amounts recognised in the balance sheet for the plan.
* Experience adjustments on plan liabilities and assets are not readily
available for the year 2009-10 and hence not disclosed.
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 overall expected rate of return on assets is determined based on
the market prices prevailing on the date, applicable to the year over
which the obligation is to be settled.
9. LEASES
Operating lease
Certain office premises, godowns, cane purchasing centre etc. are held
on operating lease. The leases range upto 3 years and are renewable for
further year either mutually or at the option of the Company. There is
no escalation clause in the lease agreement. There are no restrictions
imposed by lease agreements. There are no subleases. The leases are
cancellable.
10. Bearer Equity Share Coupons having a realised value of Rs. 0.06
lacs (Rs. 0.06 lacs) has been shown separately under "Shareholders''
Funds" as the holders of such coupons are yet to tender coupon
certificates to claim the underlying security i.e. equity shares of
equal paid up value.
11. SEGMENT INFORMATION
The primary segment reporting format is determined to be business
segments as the company''s risks and rates of return are affected
predominantly by differences in the products produced. Secondary
information is reported geographically. The operating businesses are
organised and managed separately according to the nature of the
products and services provided, with each segment representing a
strategic business unit that offers different products and serves
different markets. Accordingly, the Company has identified "Sugar",
"Spirits", "Co-generation" and "Food processing" as the operating
segments :
Sugar - Consists of manufacture, trading and sale of Sugar, Molasses
and Bagasse
Spirits - Consists of manufacture and sale of industrial Spirits
(including Ethanol), Fusel oil and Bio-Compost
Co-generation - Consists of generation and transmission of Power
Food Processing Products - Consists of Canned Fruits and Vegetables,
Jams, Jellies, Squashes and Juices
The Company primarily operates in India and therefore the analysis of
geographical segments is demarcated into its Indian and overseas
operations.
12. CAPITAL AND OTHER COMMITMENTS
Estimated amount of contracts remaining to be executed on Capiytal
Account and not provided for (net of advances) Rs. 144.75 lacs (Rs.
55.34 lacs).
13. CONTINGENT LIABILITIES Rs. in lacs
31st March, 2014 31st March, 2013
(a) Demands / Claims by various
Government Authorities and
others not acknowledged as
debt and contested by the
Company :
(i) Excise Duty & Service Tax 5,908.33 3,739.56
(ii) Sales & Entry Tax 96.08 106.84
(iii) Duty under State Acts 188.92 180.99
(iv) others 144.90 144.41
Total * 6,338.23 4,171.80
(b) Outstanding towards Crop Loan
disbursed to growers for which
corporate guarantee is given to
a bank 62.35 666.16
(c) Bank Guarantees outstanding 935.28 40.04
(d) Bills discounted with banks 83.80 71.90
(e) Arrear Dividend (including tax)
on Non-convertible Cumulative
Redeemable Preference Shares (CRPS) 1,325.60 828.37
* Based on discussions with the solicitors / favourable decisions in
similar cases / legal opinions taken by the Company, the management
believes that it is possible but not probable the action will succeed
and accordingly no provision there against is considered necessary.
14.. A civil suit is pending against the Company''s sugar unit at Dhadha
Bujurg (Hata), which is already in operation. The Company has been
legally advised that the said civil suit is not tenable as per law.
15. Loans and advances in the nature of loans given to subsidiaries and
associates and firms/companies in which the directors are interested
and which are outstanding at the end of the year in terms of Clause 32
of the Listing Agreement with Stock Exchanges.
16. Previous year''s figures including those given in brackets have been
regrouped / rearranged wherever necessary. Further, the previous
period figures, being for nine months, are not comparable with current
year figures.
Mar 31, 2013
1. CORPORATE INFORMATION
The Oudh Sugar Mills Limited (the Company) is a public Company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956. Its shares are listed on National and Bombay
Stock Exchanges in India. The Company is primarily engaged in
manufacture and sale of Sugar and its By-products (Molasses and
Bagasse), Spirits including Ethanol, Power and Food Processing
Products. The Company presently has manufacturing facilities at Hargaon
District Sitapur, Dhadha Bujurg District Kushinagar, Rosa District
Shahjahanpur and Allahabad in the State of Uttar Pradesh and at
Narkatiaganj District West Champaran in the State of Bihar.
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.
The accounting policies adopted in the preparation of financial
statements are consistent with those used in the previous year.
3. GRATUITY - DEFINED BENEFIT PLAN
The Company has a defined benefit gratuity plan. Every employee who has
completed at least five years or more of service is entitled to
Gratuity on terms not less favourable than the provisions of The
Payment of Gratuity Act, 1972. The Company has got an approved
gratuity fund which has taken an insurance policy with Life Insurance
Corporation of India (LIC) to cover the gratuity liabilities.
The following tables summarise the components of net benefit expense
recognised in the statement of profit and loss and the funded status
and amounts recognised in the balance sheet for the plan.
4. LEASES
Operating lease:
Certain office premises, godowns, cane purchasing centre etc. are held
on operating lease. The leases range upto 3 years and are renewable for
further year either mutually or at the option of the Company. There is
no escalation clause in the lease agreement. There are no restrictions
imposed by lease agreements. There are no subleases. The leases are
cancellable.
5. Bearer Equity Share Coupons having a realised value of Rs. 0.06 lacs
(Rs. 0.06 lacs) has been shown separately under "Shareholders'' Funds" as
the holders of such coupons are yet to tender coupon certificates to
claim the underlying security i.e. equity shares of equal paid up
value.
6. SEGMENT INFORMATION
The primary segment reporting format is determined to be business
segments as the company''s risks and rates of return are affected
predominantly by differences in the products produced. Secondary
information is reported geographically.
The operating businesses are organised and managed separately according
to the nature of the products and services provided, with each segment
representing a strategic business unit that offers different products
and serves different markets. Accordingly, the Company has identified
"Sugar", "Spirits", "Co-generation" and "Food processing" as the
operating segments:
Sugar - Consists of manufacture, trading and sale of Sugar, Molasses
and Bagasse
Spirits - Consists of manufacture and sale of Industrial Spirits
(including Ethanol), Fusel Oil and Bio-Compost
Co-generation - Consists of generation and transmission of Power
Food Processing Products - Consists of Canned Fruits and Vegetables,
Jams, Jellies, Squashes and Juices
The Company primarily operates in India and therefore the analysis of
geographical segments is demarcated into its
Indian and Overseas Operations.
7. CAPITAL AND OTHER COMMITMENTS
(a) Estimated amount of contracts remaining to be executed on Capital
Account and not provided for (net of advances) Rs. 55.34 lacs (Rs. 125.62
lacs).
(b) For commitments relating to lease arrangements, please refer note
31.
8. CONTINGENT LIABILITIES
Rs. in lacs
31st March,
2013 30th June,
2012
(a) Demands/Claims by
various Government
Authorities and others not
acknowledged as debt
and contested by the Company:
(i) Excise Duty & Service Tax 3,739.55 2,552.88
(ii) Sales & Entry Tax 106.84 104.28
(iii) Duty under State Acts 180.99 157.89
(iv) Others 144.41 275.65
Total * 4,171.80 3,100.70
(b) Outstanding towards Crop
Loan disbursed to growers
for which 666.16 884.56
corporate guarantee is given
to a bank
(c) Bank Guarantees outstanding 40.04 551.99
(d) Bills discounted with banks 71.90 117.83
(e) Arrear Dividend (including
tax) on Non-convertible
Cumulative 828.37 452.11
Redeemable Preference Shares (CRPS)
* Based on discussions with the solicitors/favourable decisions in
similar cases/legal opinions taken by the Company, the management
believes that the Company has a good chance of success in
above-mentioned cases and hence, no provision there against is
considered necessary.
9. A civil suit is pending against the Company''s sugar unit at Dhadha
Bujurg (Hata), which is already in operation. The Company has been
legally advised that the said civil suit is not tenable as per law.
10. In view of brought forward loss or unabsorbed depreciation as per
books of accounts in terms of the provisions of Section 115JB of the
Income Tax Act, 1961, there is no taxable income and hence no provision
for current tax has been made in these accounts.
11. Loans and Advances in the nature of loans given to subsidiaries
and associates and firms/ companies in which the directors are
interested and which are outstanding at the end of the year in terms of
Clause 32 of the Listing Agreement with Stock Exchanges.
12. The Ministry of Consumer Affairs, Food and Public Distribution,
Government of India vide its Notification 281 (E) dated May 2,2013 has
dispensed away the levy obligation from sugar season 2012-13 onwards.
Accordingly, all Sugar Stocks for the current sugar season have been
valued as Free Sugar.
13. The Company has changed its Accounting year ending on 30th June to
31st March and hence, the current period figures being for nine months
period from 1st July, 2012 to 31st March, 2013 are not comparable with
those of the previous year.
14. Previous year''s figures including those given in brackets have
been regrouped/rearranged wherever necessary.
Jun 30, 2012
1. CORPORATE INFORMATION
The Oudh Sugar Mills Limited (the Company) is a public limited Company
domiciled in India and an existing company under the provisions of the
Companies Act, 1956. Its shares are listed on two stock exchanges in
India. The Company is primarily engaged in manufacture and sale of
Sugar and its By-products (Molasses and Bagasse), Spirits including
Ethanol, Power and Food Processing Products. The Company presently has
manufacturing facilities at Hargaon District Sitapur, Dhadha Bujurg
District Kushinagar, Rosa District Shahjahanpur and Allahabad in the
State of Uttar Pradesh and at Narkatiaganj District West Champaran in
the State of Bihar.
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 notifi ed
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.
The accounting policies adopted in the preparation of financial
statements are consistent with those used in the previous year, except
for the change in accounting policy explained in 2.1 (a) below.
(a) Terms / rights attached to Equity Shares
Each holder of equity shares is entitled to one vote per share.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution to
equity shareholders will be in proportion to the amount paid up or
credited as paid up.
(b) Terms of redemption of Preference Shares
The Non-Convertible Cumulative Redeemable Preference Shares (CRPS)
issued during the year carries dividend @ 8.5% per annum.
CRPS shall be redeemable at par upon expiry of a period of twelve years
and one day from the date of allotment i.e. 1st August 2011 with a
right vested to the Board of Directors to redeem earlier, subject to
the consent of the lenders. However, no redemption will take place
before 30th June 2014.
Dividend is payable at the time of redemption of the CRPS. However, the
Board reserves the right to pay the dividend arlier with the consent of
the Lenders and subject to the availability of profit.
(a) Term Loans and FITL from Banks carry interest rate in the range of
13.77% to 14.99%. The loans are repayable in quarterly instalments
starting from 30th September, 2012 and are secured by first mortgage /
charge on all the immovable and movable assets (save and except book
debts), present and future, of the Company's Sugar Units at Hargaon,
Narkatiaganj and Dhadha Bujurg (Hata) and Distillery Unit at Hargaon,
ranking pari-passu amongst the various lenders, subject to prior
charges created on movables for working capital borrowings from the
Company's bankers.
The above Term Loans including FITL are further secured as follows.
(i) - Second charge on current assets of Sugar Unit at Dhadha Bujurg
(Hata) ranking pari-passu amongst the various lenders.
- Second charge on fixed assets of Sugar Unit at Rosa ranking
pari-passu amongst the various lenders.
(ii) Third charge on current assets of Sugar Unit at Narkatiaganj.
(iii) Third charge on current assets of Sugar & Distillery Units at
Hargaon.
(iv) Pledge of 64,79,294 equity shares of the Company held by promoter
group companies, ranking pari-passu amongst the various lenders.
(b) Term loans under Financial Assistance Scheme (Excise Duty Loan)
were secured by a residual charge on entire Fixed Assets (movable and
immovable), present and future of the Company's Sugar units at Hargaon,
Rosa and Narkatiaganj. The said loan has been repaid during the year
as per the stipulated terms of repayments.
(c) Term loans from the Sugar Development Fund, carry interest of 4%
p.a., are secured by a second charge on all the immovable / movable
assets (save and except book debts) present and future of the Company's
Sugar Units at Hargaon and Narkatiaganj.
3. LEASES
Operating lease :
Certain office premises, godowns, cane purchasing centre etc. are held
on operating lease. The lease term is ranging upto 3 years and
renewable for further year either mutually or at the option of the
Company. There is no escalation clause in the lease agreement. There
are no restrictions imposed by lease agreements. There are no
subleases. The leases are cancellable.
4.
Bearer Equity Share Coupons having a realised value of 0.06 lacs (30th
June, 2011 : 0.06 lacs) has been shown separately under "Shareholders'
Funds" as the holders of such coupons are yet to tender coupon
certifcates to claim the underlying security i.e. equity shares of
equal paid up value.
5.
The Company had received Preference Share Application Money 3,750 lacs
during the year ended 30 June 2011 against 8.5% Non-Convertible
Cumulative Redeemable Preference Shares (CRPS) of 10 each to be issued
at par. The Company has issued, during the reporting year, CRPS against
the said share application money.
6.
During the year, Company has paid 2,422.19 lacs towards differential
cane price for its Hargaon and Rosa Sugar units in Uttar Pradesh for
the sugar season 2007-08 in term of the order of the Hon'ble Supreme
Court dated 17th January, 2012, which has been shown as "Exceptional
Item" in the statement of profit and loss.
7. SEGMENT INFORMATION
The primary segment reporting format is determined to be business
segments as the Company's risks and rates of return are affected
predominantly by differences in the products produced. Secondary
information is reported geographically. The operating businesses are
organised and managed separately according to the nature of the
products and services provided, with each segment representing a
strategic business unit that offers different products and serves
different markets. Accordingly, the Company has identified "Sugar",
"Spirits", "Co-generation" and "Food processing" as the operating
segments:
Sugar - Consists of manufacture, trading and sale of Sugar, Molasses
and Bagasse
Spirits - Consists of manufacture and sale of Industrial Spirits
(including Ethanol), Fusel Oil and Bio-Compost
Co-generation - Consists of generation and transmission of Power
Food Processing Products - Consists of Canned Fruits and Vegetables,
Jams, Jellies, Squashes and Juices
Others - Consist of Miscellaneous business comprising of less than 10%
revenues.
The Company primarily operates in India and therefore the analysis of
geographical segments is demarcated into its Indian and Overseas
Operations.
Jun 30, 2010
(Rs. in Lakh)
As at 30th As at 30th
June, 2010 June, 2009
1. Estimated amount of contracts
remaining to be executed on Capital
Account 278.63 1,371.16
(net of advances) and not provided for
2. Contingent Liabilities not provided
for in respect of :-
(a) Demands / Claims by various
Government Authorities and others
not acknowledged as debts:
(i) Excise Duty & Service Tax 2,035.65 705.71
(ii) Sales & Entry Tax 110.96 156.41
(iii) Duty under State Acts 155.05 230.18
(iv) Others 124.26 56.41
Total 2,425.92 1148.71
(b) (i) Guarantees given to a bank
against loans to cane growers 5,000.00 4,000.00
(ii) Against the above, the loan
facilities actually availed as on
the Balance Sheet date 4,773.95 3,047.93
(c) Unredeemed bank guarantees 0.96 0.96
(d) Bills discounted with banks
[since realized Rs. Nil
(Rs. 81.00 Lakh)] 92.91 176.00
3. Excise Duty & Cess on sales has been reduced from sales in Profit
& Loss account and Excise Duty & Cess on increase / decrease in stocks
has been considered as income / expenses in Profit & Loss Account.
4. Pending disposal of writs/appeals by the court with regard to levy
sugar prices for some years, Rs. 79.41 Lakh (net) received as excess
levy sugar price, against which bank guarantees furnished by the
Company for Rs. 83.79 Lakh, are in force in terms of the Court Orders,
is included under the head Current Liabilities. Necessary adjustment
for the above amount together with interest, if any, in this regard
will be made in the accounts as and when the matter will be finally
settled.
5. Pending decisions of various courts on writ petitions filed by /
against the Company, no credit has been taken in the Profit and Loss
Account in respect of certain realizations aggregating to Rs. 52.05
Lakh in earlier years, which continue to be shown under the head
"Liabilities for other Finance" in Schedule à 12. Against the above, fi
-xed deposit receipts / bank guarantees for similar amount have been
furnished by the Company.
6. In view of the interim order dated 8th September 2008 of the Honble
Supreme Court, the Company for its Hargaon and Rosa Sugar units in
Uttar Pradesh has continued the provision towards Sugarcane purchases
made during the year 2007-08 @ Rs. 110 per quintal as against the State
Advised Price (SAP) of Rs. 125 per quintal. Pending fi nal decision by
the Honble Supreme Court in this matter, the differential price of Rs.
2422.74 Lakh between SAP and the amount already provided, as stated
above, has not been accounted for.
Although, there is carried forward unabsorbed depreciation and business
loss as on the Balance Sheet date, yet in view of the future profi
tability projections, the Company is virtually certain that there would
be suffi cient taxable income in future, to claim the above Tax credit.
(b) Minimum Alternative Tax (MAT) Credit Entitlement of Rs. 836.59 Lakh
carried forward from earlier years in books of accounts have been
reversed in the current year in terms of Accounting Policy No. 1 (xiii)
stated above.
7. a) Pending execution of the conveyance deed, no adjustment has been
made in respect of 0.75 acre of land sold by the Company in earlier
years.
b) An application filed by the Company for exemption of 3785.19 sq.
mtrs. of land at Bamrauli under the Urban Land (Ceiling and Regulation)
Act, 1976, is pending with the concerned authority.
8. A civil suit is pending against the Companys sugar unit at Dhadha
Bujurg (Hata), which is already in operation. The Company has been
legally advised that the said civil suit is not tenable as per law.
9. The Company has a defi ned benefit gratuity plan. Every employee
who has completed fi ve years or more of service is entitled to
Gratuity on terms as per provisions of The Payment of Gratuity Act,
1972. The Company has got an approved gratuity fund which has taken an
insurance policy with Life Insurance Corporation of India (LIC) to
cover the gratuity liabilities.
10. The company has raised Rs.1704.45 Lakh (including securities
premium Rs. 1304.62 Lakh) by allotment of 39,98,240 equity shares of
Rs. 10 each on conversion of detachable warrants issued in term of
Letter of Offer dated 17th July, 2008 at a premium of Rs. 32.63 per
equity share during the year and has utilised the proceeds of the issue
for repayment of a part of the working capital borrowings.
11. (a) Salaries and Wages relating to various repairs have not been
charged separately to the repairs, as the amount thereof has not been
demarcated.
(b) Consumption of raw materials, stores, spare parts and packing
materials includes profit/loss on sale thereof.
12. Salary & Wages includes Rs. 53.92 Lakh in respect of earlier year
on account of increase in wages with retrospective effect from 1st
October,2008 in terms of wage Board award / order received during the
year.
13. Previous years figures including those given in brackets have
been regrouped and / or rearranged, wherever necessary.
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