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Notes to Accounts of Rajshree Sugars & Chemicals Ltd.

Mar 31, 2023

Deferred tax asset as shown above has been created, as the Board of Directors of the Company are of the considered view that the Company would be able to generate adequate profits in the immediate future as soon as the cane availability position improves and reaches normal levels.

Terms and rights attached to equity shares :

Equity Shares : The Company has only one class of equity shares having a par value of ''10 per share. Each shareholder is eligible for one vote per share held. The shareholders have rights in proportion to their shareholding for dividend as well as for assets, in case of liquidation.

i) General reserve: Part of retained earnings was earlier utilised for declaration of dividends as per the erst while Companies Act, 1956. This is available for distribution to share holders.

ii) Retained earnings: Company''s cumulative earnings since its formation minus the dividends/capitalisation and earnings transferred to general reserve.

iii) Securities Premium: Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act 2013.

iv) Capital Reserve: Comprise of amount forfeited on lapse of share warrants, the same is not available for distribution..

v) Fair Value Reserve : Fair value reserve is credited when property, plant and equipmentâs are revalued at fair value and debited on retirement or Impairment or disposal of assets. The reserve is utilised in accordance with the requirements of Ind AS 16.

(i) Gratuity

The company extends defined benefit plans in the form of gratuity to employees. The Company has formed "RSCL Gratuity Trust" with Life Insurance Corporation of India (LIC) and HDFC Life Insurance Company Ltd. Contribution to gratuity is made to LIC in accordance with the scheme framed by the corporation.The Company has made contribution towards Gratuity based on the actuarial valuation.

(ii) Defined contribution plans

Contribution to provident fund is in the nature of defined contribution plan and are made to provident fund account maintained by the Government on its account.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the Defined Benefit Obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the Defined Benefit Obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the Defined Benefit Obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Notes

Gratuity is payable as per entity''s scheme as detailed in the report.

"Actuarial gains/losses are recognized in the period of occurrence under Other Comprehensive Income (OCI).All above reported figures of OCI are gross of taxation."

Salary escalation & attrition rate are considered as advised by the entity; they appear to be in line with the industry practice considering promotion and demand & supply of the employees.

Maturity Analysis of Benefit Payments is undiscounted cashflows considering future salary, attrition & death in respective year for members as mentioned above.

Average Expected Future Service represents Estimated Term of Post - Employment Benefit Obligation.

Weighted Average Duration of the Defined Benefit Obligation is the weighted average of cash flow timing, where weights are derived from the present value of each cash flow to the total present value.

Any benefit payment and contribution to plan assets is considered to occur end of the year to depict liability and fund movement in the disclosures.

Value of asset provided by the entity is not audited by us and the same is considered as unaudited fair value of plan asset as on the reporting date.

In absence of specific communication as regards contribution by the entity, Expected Contribution in the Next Year is considered as the sum of net liability/assets at the end of the current year and current service cost for next year, subject to maximum allowable contribution to the Plan Assets over the next year as per the Income Tax Rules.

Qualitative DisclosuresPara 139 (a) Characteristics of defined benefit plan

"The entity has a defined benefit gratuity plan in India (funded). The entity''s defined benefit gratuity plan is a final salary plan for employees, which requires contributions to be made to a separately administered fund.The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy."

Para 139 (b) Risks associated with defined benefit plan

"Gratuity is a defined benefit plan and entity is exposed to the Following Risks:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very low as insurance companies have to follow stringent regulatory guidelines which mitigate risk."

Para 139 (c) Characteristics of defined benefit plans.

During the year, there were no plan amendments, curtailments and settlements.

Para 147 (a)

A separate trust fund is created to manage the Gratuity plan and the contributions towards the trust fund is done as guided by rule 103 of Income Tax Rules, 1962.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no transfers between levels 1 and 2 during the year. The company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

The carrying amounts of trade receivables, trade payables, loans, deposits, advances, borrowings, cash and cash equivalents and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature.

35 Financial risk management

The company''s activities expose it to market risk, liquidity risk and credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

(A) Credit risk

Credit risk on deposit is mitigated by depositing the funds in reputed private sector bank.

For trade receivables, the primary source of credit risk is that these are unsecured. The Company sells the products to customers only when the collection of trade receivables is certain and whether there has been a significant increase in the credit risk on an on-going basis is monitored throughout each reporting period. As at the balance sheet date, based on the credit assessment the historical trend of low default is expected to continue. An impairment analysis is performed at each reporting date on an individual basis for major clients. Any recoverability of receivables is provided for based on the impairment assessment. Historical trends showed as at the transition date, 31^st March 2017 and 31^st March 2018 company had no significant credit risk.

(B) Liquidity risk

Objective of liquidity risk management is to maintain sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Management monitors rolling forecasts of the company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. The company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal requirements.

Maturities of financial liabilities

The tables below analyse The company''s financial liabilities into relevant maturity groupings based on their contractual maturities for :

a) all non-derivative financial liabilities, and

b) net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

36 Capital management (a) Risk management

The company''s objectives when managing capital are to:

â¢ safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

â¢ maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, The company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, The company monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by

Total âequity'' (as shown in the balance sheet).

37 Share based payments

(a) Employee Stock Option Plan

I) 50% of options due for vesting on each vesting date shall vest on the basis of time i.e. mere continuance of employment as on date of vesting; and (ii) 50% of options due for vesting on each vesting date shall vest on the basis of achievement of individual key result areas set at the beginning of each financial year preceding the financial year in which the individual vesting date falls."

ii) Summary of options granted under plan Â¦

39 OTHER ADDITIONAL INFORMATION1. Details of Borrowings :

1) During the year, the company has been regular in repayment of principal and payment of interest as per the schedule provided in the FRA.

2) Axis Bank held exclusive charge on one property of the Company in respect of the sanctioned loans by the said bank.

The company has sold the aforesaid property to a buyer for a consideration of '' 38 crores out of which the Company has repaid the entire remaining dues of debts availed from Axis bank.

3) Out of the realization from the sale of Residential Property in Delhi and Residential Flat in Chennai, the Company has prepaid a sum of '' 19.22 crores of the debt outstanding of all the Lenders excluding Axis Bank.

4) The Company has been in default of the soft loans received from Sugar Development Fund (SDF), Government of India, since the Financial Year ended 31^st March 2016.

On 20^th May 2022, the Company has received the Administrative Approval (AA) vide letter reference no. ''File No.8-4/2010-SDF'' (copy enclosed) from the Director, Sugar Development Fund, Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & Public Distribution, for restructuring of SDF Ethanol loan of '' 32.45 crore and Co-generation loan of '' 21.10 crore availed by the Company.

The Tripartite Agreement for restructuring was entered in to on 12^th August 2022 between the Company, IFCI Limited (nodel agency for SDF) and Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & Public Distribution.

3. Period and Amount of Continuing Default in respect of Loans and Borrowings : Nil4. Security Details for the Borrowings :

i) Rupee Term Loan (RTL), Tranche A Non-Convertible Debentures (NCDs), Tranche A Optionally Convertible Debentures (OCDs) and Funded Interest Term Loan (FITL) for State Bank of India is secured by:

a. First pari passu charge over all fixed assets of the Borrower (''the Companyâ) (except the fixed assets over which an exclusive charge is created in favour of Sugar Development Fund, ICICI Bank Limited and State Bank of India).

b. First pari passu charge over the cogeneration Receivables of Unit II and Unit III.

c. Second pari passu charge over all current assets of the Borrower (except the current assets set out in Section (b) above

d. First pari passu pledge over the Pledged Shares.

âPledged Sharesâ means, at the date of the Framework Restructuring Agreement (FRA) i.e., 12^th July 2021, 1,34,73,621 Equity Shares of the Borrower held by the Pledgors (Promoter and Promoter Group) which are pledged to secure the Outstanding Obligations in accordance with the terms of the Share Pledge Agreement , and such additional Equity Shares such that the Pledged Shares shall at all times constitute 100% of the total Equity Shares of the Borrower held by the Promoters at any time.

e. Unconditional and irrevocable Personal Guarantee of the Personal Guarantor (Ms.Rajshree Pathy, Promoter / Chairperson of the Company)

f. Irrevocable Corporate Guarantee provided by RSCL Properties Private Limited (RPPL), to the extent of the Value of the Pledged Shares held by RPPL. It is further clarified that the Secured Parties shall have no independent rights under the Corporate Guarantee in the event that they are able to enforce their rights and recover the Value of the Pledged Shares under the Share Pledge Agreement.

g. First pari passu charge over the Fixed Deposit amount of ''108 lakhs.

h. First pari passu charge on the following immoveable properties:

A. 80 Cents land situated at TS No. 613/2(Part), TS Ward 10, Krishnarayapuram Village, Coimbatore North Taluk, Coimbatore, Tamil Nadu;

B. Land and building (Bio Control Unit at Unit 1) situated at Gullapuram Village, Periyakulam Taluk, Theni District, Tamil Nadu;

i. First ranking exclusive charge on fixed assets of the Borrower situated at the co-generation plant of Unit II situated at Mundiyampakkam, Tamil Nadu.

j. First pari passu charge on all the fixed assets of the Borrower situated at Unit III, which fixed assets shall be charged to State Bank of India and Sugar Development Fund on a pari passu basis.

k. First pari passu charge on non-agricultural land admeasuring 1 acre and cents 15-1/6 in Udhagamandalam, Tamil Nadu (including the building with a built-up area of 300 sq.ft.,), belonging to Ms.Rajshree Pathy, Chairperson / Promoter of the Company.

ii) Working Capital Term Loans (WCTL) for State Bank of India is secured by:

a. Second pari passu charge over all fixed assets of the Borrower (except the fixed assets over which an exclusive charge is created in favour of Sugar Development Fund, ICICI Bank Limited and State Bank of India).

b. First pari passu charge over the cogeneration Receivables of Unit II and Unit III.

c. First pari passu charge over all current assets of the Borrower (except the current assets set out in Section (b) above).

d. First pari passu pledge the Pledged Shares.

e. Unconditional and irrevocable Personal Guarantee to be provided by the Personal Guarantor.

f. Irrevocable Corporate Guarantee to be provided by RPPL, limited to the extent of the Value of the Pledged Shares held by RPPL. It is further clarified that the Secured Parties shall have no independent rights under the Corporate Guarantee in the event that they are able to enforce their rights and recover the Value of the Pledged Shares under the Share Pledge Agreement.

g. First pari passu charge over the Fixed Deposit amount of ''108 lakhs.

h. Second pari passu charge on the following immoveable properties:

A) 80 Cents land situated at TS No. 613/2(Part), TS Ward 10, Krishnaraya Puram Village, Coimbatore North Taluk, Coimbatore, Tamil Nadu;

B) Land and building (Bio Control Unit at Unit 1) situated at Gullapuram Village, Periyakulam Taluk, Theni District, Tamil Nadu;

i. First ranking exclusive charge on fixed assets of the Borrower situated at the co-generation plant of Unit II situated at Mundiyampakkam, Tamil Nadu.

j. First pari passu charge on all the fixed assets of the Borrower situatedat Unit III, which fixed assets shall be charged to State Bank of India and Sugar Development Fund on a pari passu basis.

k. First pari passu charge on non-agricultural land admeasuring 1 acre and cents 15-1/6 in Udhagamandalam, Tamil Nadu (including the building with a built-up area of 300 sq. ft.), belonging to Ms.Rajshree Pathy, Chairperson / Promoter of the Company.

iii) RTL, Tranche D NCDs, Tranche D OCDs and FITL for Bank of India, UCO Bank and Federal Bank Limited is secured by:

a. First pari passu charge over all fixed assets of the Borrower (except the fixed assets over which an exclusive charge is created in favour of Sugar Development Fund, ICICI Bank Limited and State Bank of India).

b. First pari passu charge over the cogeneration Receivables of Unit II and Unit III.

c. Second pari passu charge over all current assets of the Borrower (except the current assets set out in Section(b) above).

d. First pari passu pledge over the Pledged Shares.

e. Unconditional and irrevocable Personal Guarantee to be provided by the Personal Guarantor.

g. First pari passu charge over the Fixed Deposit amount of '' 108 lakhs

h. First pari passu charge on the following immoveable properties:

A. 80 Cents land situated at TS No. 613/2(Part), TS Ward 10, Krishnaraya Puram Village, Coimbatore North Taluk, Coimbatore, Tamil Nadu;

B. Land and building (Bio Control Unit at Unit 1) situated at Gullapuram Village, Periyakulam Taluk, Theni District, Tamil Nadu;

i. First pari passu charge on non-agricultural land admeasuring 1 acre and cents 15-1/6 in Udhagamandalam, Tamil Nadu (including the building with a built-up area of 300 sq.ft.,), belonging to Ms.Rajshree Pathy, Chairperson / Promoter of the Company.

j. Second pari passu charge on all fixed assets of the Borrower situated at Unit III.

iv) WCTL for Bank of India and UCO Bank is secured by:

b. First pari passu charge over the cogeneration Receivables of Unit II and Unit III.

c. First pari passu charge over all current assets of the Borrower (except the current assets set out in Section (b) above).

d. First pari passu pledge over the Pledged Shares.

e. Unconditional and irrevocable Personal Guarantee to be provided by the Personal Guarantor.

g. First pari passu charge over the fixed deposit amount of '' 108 lakhs.

h. Second pari passu charge on the following immoveable properties:

A. 80 Cents land situated at TS No. 613/2(Part), TS Ward 10, Krishnaraya Puram Village, Coimbatore North Taluk, Coimbatore, Tamil Nadu;

B. Land and building (Bio Control Unit at Unit 1) situated at Gullapuram Village, Periyakulam Taluk, Theni District, Tamil Nadu; and

j. Second pari passu charge on all fixed assets of the Borrower situated at Unit III.

v) RTL, Tranche B OCDs, Tranche B NCDs and FITL for ICICI Bank Limited is secured by:

b. First pari passu charge over the cogeneration Receivables of Unit II and Unit III.

c. Second pari passu charge over all current assets of the Borrower (except the current assets set out in Section (b) above).

d. First pari passu pledge over the Pledged Shares.

e. Unconditional and irrevocable Personal Guarantee to be provided by the Personal Guarantor.

g. First pari passu charge over the fixed deposit amount of '' 108 lakhs

h. First pari passu charge on the following immoveable properties:

A. 80 Cents land situated at TS No. 613/2(Part), TS Ward 10, Krishnaraya Puram Village, Coimbatore North Taluk, Coimbatore, Tamil Nadu;

B. Land and building (Bio Control Unit at Unit 1) situated at Gullapuram Village, Periyakulam Taluk, Theni District, Tamil Nadu;

i. First ranking exclusive charge on the following immoveable properties:

A. 7.295 Acres Land at Pallipuram Village, Allepey District, Kerala; and

B. Registered Office (Uffizi) of the Borrower in Coimbatore, Tamil Nadu.

j. First pari passu charge on non-agricultural land admeasuring 1 acre and cents 15-1/6 in Udhagamandalam,Tamil Nadu (including the building with a built-up area of 300 sq.ft.,), belonging to Ms.Rajshree Pathy, Chairperson / Promoter of the Company.

k. Second pari passu charge on all fixed assets of the Borrower situated at Unit III.

vi) RTL, Tranche C NCDs, Tranche C OCDs and FITL from Axis Bank Limited.

All the loans / facilities availed from the Axis Bank Limited have been repaid during the year, subject to Right of Recompense as per Axis Bank Sanction Letter dated 30-06-2021.

vii) Term Loan - SDF :

Restructured Term loan SDF aggregating to '' 4948.74 lakhs as on 31.3.2023 as on are secured by First Pari passu charge on the Fixed / Immovable assets of unit III (sugar, Cogeneration and Distillery).

11. Contingent Liabilities not provided for

a) Claims against the company not acknowledged as debt:

I. In the case of eligibility of exemption on molasses captively consumed and eligibility of cenvat credit availed on molasses procured from other Units in Unit III for the period from April 2013 to March 2014, the Commissioner of Central Excise, Pondicherry has confirmed the demand of '' 550.40 Lakhs with interest and penalty of '' 10.00 Lakhs against which the company has preferred an appeal before CESTAT. With regard to the show cause notice for a sum of '' 80.38 lakhs relating to April 2012 to June 2012, the same is yet to be adjudicated by the department. Further, for the period from April 2014 to June 2017 the Commissioner of GST and Central Excise, Chennai has raised a demand of '' 62.84 Crores (Principal - '' 20.95 Crores and Penalty/Interest - '' 41.89 Crores). The company has filed a writ petition before Madras High Court challenging the demand and the case is pending for disposal.

II. The South India Sugar Mills Association, of which the company is a member, had filed W.P.No. 7872/2015 before the Hon''ble Madras High Court against Union of India and Director of Sugar, Tamil Nadu challenging the very jurisdictional basis of fixing additional cane price for the Sugar years 2004-05 to 2008-09 in the absence of any statutory power to do so. In the said writ on 19/3/15 there is a direction to respondents that they shall not initiate any coercive proceedings to recover any amount pursuant to impugned order. No provision was made by RSCL to the alleged cane dues pursuant to the above direction of the Court.

i. The Hon''ble Justice T S Sivagnanam by order dt. 13^th February 2019 has dismissed the said Writ Petition. The judgment further directs Sugar mills to furnish the details called for by the Director of Sugar by his communication dated 11^th Mar''15 and 13^th Mar'' 15 ( ie particulars which forms the basis for fixation of clause 5A price ) within a period of 7 days from the date of receipt of copy of the certified copy of judgment. SISMA has decided to challenge the said judgment by way of Appeal before the Honorable Madras High Court. The principal ground of attack by Sugar Mills is that "L" factor has to be determined on All India basis once and for all and there is no scope or legal permissibility to fix "provisional L factor" for Tamil Nadu and Pondicherry Zone alone. There are other grounds also in favour of Sugar Mills to dispute the said liability.

ii. On reopening of Madras High Court after May 2019 summer recess, SISMA filed a writ appeal bearing No 1850/2019. On 29/07/2019 the court granted stay of the Judgment of the Single Judge dated 13/02/2019 passed and directed to post the matter after four weeks. The appeal is pending.

iii. Hence the amount is indeterminate at this juncture.

III. Superintending Engineer (Theni) had issued demand letters to Unit 1 dated 23/05/2019 and 3/08/2019 for '' 186.93 lakhs claiming parallel operation charges for the period from May 2014 to May 2019.

i. RSCL filed an appeal for all three units ie ,Appeal No 328/2019 before Appellate Tribunal for Electricity, Delhi against any claim of parallel operation charges . On 23/09/2019 the Tribunal by way of interim order directed Tangedco not to precipitate the matter any further and posted the matter to 11/11/2019.

ii. The matter was listed before Registrar, Appeal on 20/01/2020 and at the request of respondents for filing their replies got adjourned to 20/03/2020. The interim order is in force. Because of Covid 19 pandemic only urgent matters are taken up and so the matter is posted to 19/08/2020.

iii. RSCL got two demand notices dated 14.02.2020 levying parallel operation charges for its Unit 2 (Mundiampakkam Village, Villupuram) & Unit 3 (Semmedu Village, Villupuram) of '' 134.62 lakhs and '' 176.61 lakhs respectively. As in the aforesaid appeal before APTEL interim order is in force, RSCL moved applications in the said appeal bringing to the knowledge of the Tribunal the precipitative actions being contemplated by the Tangedco. The applications are pending.

IV. IFCI Limited, nodal agency of Sugar Development Fund (SDF) has filed an application before Debt Recovery Tribunal (DRT)-1, Chennai against the company claiming '' 4080.44/- lakhs being the loan granted by SDF. RSCL filed an application stating the IFCI has no locus standi to file the said application and also that DRT lacks jurisdiction to entertain the said application as the Loan was granted by Govt of India and not by any Bank/Financial Institution. The same is pending.

V. Recompensate amount payable as per Debt Restructuring Scheme as at the close of the year ending 31.03.2023 is '' 111.82 Crores

VI. The Government of Tamilnadu notified the State Advised Price (SAP) of '' 2,650/ per MT of sugarcane for the sugar seasons 2013-14 and 2014-15 and '' 2,850/- for sugar season 2015-16 & 2016-17. The Company has accounted the cane purchase at the rate of '' 2,350/- per MT (for the cane procured during Apr 2014 to Sep 2014) and at the rate of '' 2,400/- per MT (for the cane procured during the period October 2014 - Sep 2016) For the sugar season 2016-17, the company has paid '' 2,425/- per MT. All the private mills in Tamilnadu are disputing the SAP, and the case is pending before the High Court of Madras. The total disputed price involved is '' 17,790 Lakhs ( '' 17,790 lakhs).

W.P No 28620/2014 before Madras High Court by South Indian Sugar Mills Association (SISMA)

i. SISMA (Tamilnadu) has filed the above writ on behalf of all of its Members with the prayer that Madras High Court to grant the interim stay of the G.O.252 dated 24.12.2022 through which the SAP for sugar season 2013-14 was announced by the State Government and to call for the records relating to aforesaid GO and quash the same as illegal, arbitrary and without jurisdiction and ultra vires the Sugarcane control order, 1966 and to forbear State Government from announcing SAP for the sugar season 2013-14 and onwards.

ii. The said writ was listed for hearing on 2/1/2023 and the subject matters were argued by both sides. As the counsel appearing for the State Government informed that the announcement of SAP was not based on the Statutory Powers but on the cabinet decision/notes, the court has called for the minutes of the cabinet decision and posted for 10/01/2023 and even on that date, the other side could not produce the cabinet minutes the court took serious view of the matter and posted the writ to 24/01/2023 for submission of the same without fail. On the said date, the said particulars were furnished by the T.N.Government Further arguments were continued by Government pleader and fresh arguments from the counsel appearing for Karumbu Vivasayigal Sangam. Sisma''s counsel gave a reply argument on 25/1/2023 and the judgment has been reserved .

VII. Writ Petition No 32517/2022 before Madras High Court

i. The surplus power generated from Unit 2 has been sold to Third parties from January 2021 onwards. Based on the Audit note, TANGEDCO has raised a demand notice dated 15.11.2022 on Unit-2 towards Operation & Maintenance charges (O & M Charges) for the period from 1.1.2021 to 31.12.2021. For a value of '' 440.44 lakhs. Aggrieved by the demand, the company filed a writ before the Madras High Court for granting the interim relief and the Court has granted Interim stay.

12. Income Tax assessments have been completed up to Assessment year 2018-19.

Disallowances made in the order of assessment for the AY 2017-18, purely technical in nature, have been disputed in appeal before the appellate authorities.

A Demand of '' 20.21 lakhs has been raised for the AY 2017-18 and the entire amount has been paid as Appeal Deposit / adjusted against refund due of subsequent years. Disputed taxes are appealed before concerned appellate authorities. It is advised that the cases are likely to be disposed of in favour of the Company and hence no provision is considered necessary therefor.

13. In terms of IndAS-36, the company had carried out an exercise to ascertain the impairment, if any, in the carrying values of its Fixed assets. The exercise has not revealed any impairment of assets

14. Assets held for Sale

i) The first sale deal for '' 36 crores through an agreement entered on 29^th March 2022 didn''t materialise. The Company could conclude a sale deal with another buyer for a sale consideration of '' 38 crores vide an agreement entered on 10^th August 2022. The sale realisation net of TDS was utilised for repaying the remaining entire dues of Axis Bank of '' 21.24 Crores and remaining amount was utilised for prepaying the dues of other consortium Lenders of '' 16.38 crores.

ii) The total consideration of the property at Vilankurichi Road, Thanneerpandal, Peelamedu, Coimbatore of '' 38 crores has been received in full in December 2020. Sale Deed has been executed for the amount shown under Asset Held For Sale for the said property.

iii) The residential flat at Chennai, which is another non-core asset, was sold to a buyer for a sale consideration of '' 3 crores and utilised for repaying the debts of all the Lenders in the Consortium.

15. Non-Convertible Debentures

The redemption amount payable, as per Framework Restructuring Agreement, as on 31^st March 2023 has been at '' 97.48 lacs. The company has also made a prepayment of a sum of '' 369.90 lacs as on 31^st March 2023.

16. Optionally Convertible Debentures

As per terms of the Debt Restructuring plan approved by the lenders and in terms of provision in Framework Restructuring Agreement (FRA) executed on 12^th July 2021, the company has, on 27^th August 2021, issued and allotted 14,366 0.1% Secured, Unlisted, Non-Cumulative, Redeemable & Optionally-Convertible Debentures (OCD) of face value of '' 1 lakh each, for a total value of '' 143.66 crores, to the lender banks on part-conversion of their secured loans, on preferential / private placement basis.

The coupon rate applicable is at 0.1% p.a payable annually on March 31^st of each year starting from Financial year 2021-22.

Each OCD of face value of '' 1 lac is to be redeemed at 1% annually on March 31^st of each year from Financial year 2021-22 to 2029-30. In case the entire amount has not been repaid at the end of FY 2030, the lenders shall have the option during the period of March 16, 2030 to March 31,2030, subject to compliance with Applicable Laws, either to roll over as OCD (issue of new series) for redemption in 4 years, in equal instalments (or) convert into Cumulative Redeemable Preference Shares (CRPS) redeemable in 4 years in equal instalments.

The redemption amount payable as per aforesaid agreement as on 31^st March 2023 has been at '' 143.66 lacs.

The redemption amount payable as per aforesaid agreement as on 31^st March 2023 has been at '' 143.66 lacs. The company has also made a prepayment of a sum of '' 1247.09 lacs as on 31^st March 2023.

17. Equity Shares

As per terms of the Debt Restructuring plan approved by the lenders and in terms of provision in Framework Restructuring Agreement (FRA) executed on 12^th July 2021, the company has allotted 49,67,926 equity shares at a face value of '' 10 per share and a premium of '' 4.03 per share on 27^th August 2021 to Lenders. Further, the issue of shares is subject to a Lock-in-period of 12 months from the date of allotment for sale by lenders. The Company/Promoters have the right to buy-back the shares if select to do so and also have the Right of First Refusal (ROFR) in case lenders select to sell the shares to third party (i.e.,) a sale notice is to be issued by lenders to the Company/Promoters to convey intention to exercise the ROFR Offer and to acquire the Offered Securities indicated in the Sale Notice; or (ii) to allow the Lender to proceed to sell the Offered Securities to the third party.

During the current year, the company has issued NOC to SBI, BOI & Axis Bank for selling the equity shares of the company held by these banks. SBI has sold 1,60,000 shares in the open market and held 29,40,599 shares as on 31^st March 2023.

18. Reversal of MAT Credit Entitlement

From the Financial year 2021-22, the Company has opted for new tax regime under the Income Tax Act. As MAT provisions are not applicable under New Regime the carry forward MAT Credit Entitlement of '' 1634.76/- Lakhs as per books has been reversed in the Statement of Profit and Loss during the year.

19. CSR Activities

Gross amount required to be spent by the company during the year - NIL Amount spent by the company during the year - NIL

The Company operates wholly within the geographical limits of India. Revenue from sales to customers outside India is / was nil in the current and previous years. Hence, disclosures on geographical segments are not applicable.

24) Previous year figures have been regrouped wherever necessary to confirm to current year''s classification.

Mar 31, 2018

Company overview

RAJSHREE SUGARS AND CHEMICALS LIMITED (âthe Companyâ) is a public limited company incorporated in India. The companyâs equity shares are listed on BSE and NSE. The registered office is located at 338/8, Avinashi Road, Peelamedu Coimbatore - 641 004, Tamilnadu, India.

(i) Leasing arrangements

Certain investment properties are leased to tenants under long-term operating leases with rentals payable monthly. Minimum lease payments receivable under non-cancellable operating leases of investment properties are as follows:

Estimation of fair value

The fair values of investment properties have been determined with reference to the guideline value as determined by the Government for the location at which the property is located adjusted for the depreciated value of buildings.

Terms and rights attached to equity shares

Equity Shares: The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held. The shareholders have rights in proportion to their shareholding for dividend as well as for assets, in case of liquidation.

i) General reserve: Part of retained earnings was earlier utilised for declaration of dividends as per the erstwhile Companies Act, 1956.

This is available for distribution to share holders.

ii) Retained earnings: Companyâs cumulative earnings since its formation minus the dividends/capitalisation and earnings transferred to general reserve.

iii) Securities Premium: Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act 2013.

iv) Capital Reserve: Comparies of amount forfeited on lapse of share warrents, the same is not available for distribution

v) Share option outstanding: The share options outstanding account is used to recognise the grant date fair value of options issued to employees under Employee Stock Option Plan.

(i) Gratuity

The company extends defined benefit plans in the form of gratuity to employees. The Company has formed âRSCL Gratuity Trustâ with Life Insurance Corporation of India (LIC) and HDFC Standard Life Insurance Co Ltd. Contribution to gratuity is made to LIC in accordance with the scheme framed by the corporation.The Company has made contribution towards Gratuity based on the actuarial valuation.

(ii) Defined contribution plans

Contribution to provident fund is in the nature of defined contribution plan and are made to provident fund account maintained by the Government on its account.

Assumptions regarding future mortality for pension and medical benefits are set based on actuarial advice in accordance with published statistics and experience. These assumptions translate into an average life expectancy in years for a pensioner retiring at age 60.

(v) Sensitivity analysis

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:

Impact on defined benefit obligation

The sensitivity of the defined benefit obligation to other assumption are insignificant

(vi) Risk exposure

Through its defined benefit plans, The company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit.

Changes in bond yields

A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plansâ bond holdings.

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the group has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

There are no transfers between levels 1 and 2 during the year.

The companyâs policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

Fair value of assets carried at amortised cost

1 Financial Risk Management

The companyâs activities expose it to market risk, liquidity risk and credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk

(A) Credit risk

Credit risk on deposit is mitigated by the depositing the funds in reputed private sector bank.

For trade receivables, the primary source of credit risk is that these are unsecured. The Company sells the products to customers only when the collection of trade receivables is certain and whether there has been a significant increase in the credit risk on an on-going basis is monitored throughout each reporting period. As at the balance sheet date, based on the credit assessment the historical trend of low default is expected to continue. An impairment analysis is performed at each reporting date on an individual basis for major clients. Any recoverability of receivables is provided for based on the impairment assessment. Historical trends showed as at the transition date, 31st March 2017 and 31st March 2018 company had no significant credit risk.

(B) Liquidity risk

Objective of liquidity risk management is to maintain sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Management monitors rolling forecasts of The companyâs liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. The companyâs liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal requirements

(i) Maturities of financial liabilities

The tables below analyse The companyâs financial liabilities into relevant maturity groupings based on their contractual maturities for:

a) all non-derivative financial liabilities, and

b) net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

2 Capital management

(a) Risk management

The companyâs objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

Consistent with others in the industry, The company monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by

Total âequityâ (as shown in the balance sheet).

The companyâs strategy is to maintain a optimal gearing ratio. The gearing ratios were as follows:

(b) Dividends

The company has not declared any dividends during the current year and the previous year.

3. Share based payments

(a) Employee option plan

i) 50% of options due for vesting on each vesting date shall vest on the basis of time i.e. mere continuance of employment as on date of vesting; and (ii) 50% of options due for vesting on each vesting date shall vest on the basis of achievement of individual key result areas set at the beginning of each financial year preceding the financial year in which the individual vesting date falls.

ii) Summary of options granted under plan :

i ii) Share options outstanding at the end of year have following expiry date and exercise prices

4. Transition to Ind AS

These are the Companyâs first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (The companyâs date of transition). In preparing its opening Ind AS balance sheet, The company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).

An explanation of how the transition from previous GAAP to Ind AS has affected The companyâs financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions

A.1.1 Business combinations

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date.

The group elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated. The group has applied same exemption for investment in associates and joint ventures.

A.1.2 Deemed cost

The Company has elected to restate retrospectively all its property, plant and equipment as per the Ind AS 16, except for freehold land, which have been accounted at fair value as deemed cost on transition date (as at 1st April, 2016).

A.1.3 Leases

Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material. The company has elected to apply this exemption for such contracts/arrangements.

A.2 Ind AS mandatory exceptions A.2.1 Estimates

An entityâs estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP: Impairment of financial assets based on expected credit loss model.

A.2.2 De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entityâs choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.

The group has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

A.2.3 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

A.2.4 Soft Loans

Below market interest rate benefits for loans existing at the date of transition has not recognised the as government grant in line with para B10 mandatory exemption

C: Notes to first-time adoption: Note 1: Investment in Subsidiaries

Investment in subsidiary has been treated as asset held for sale as the conditions outlined under Ind-AS 105 are met.

Note 2: Fair valuation of Land and Retrospective application of Ind AS 16

Company has adopted fair value of as it deemed cost for the land and retrospectively applied Ind AS 16 for other class of assets, Due to the above the equity increased by Rs. 7,447.15 lakhs as at 31st March 2017 (April 1, 2016 Rs. 7,470.49 lakhs) and profit for FY 16-17 decreased by Rs. 23.34 lakhs.

Note 3: Instruments entirely in the nature of equity

Under previous GAAP, loans given by promoter were classified as loans, Under Ind-AS based on the substance of the agreement same has been classified as equity, due to this the equity as at April 1, 2016 increased by Rs. 894.60 Lakhs.

Note 4: Loans at amortised cost

Under previous GAAP, loans are recognised at nominal value, interest rate of the loans has been recomputed at Effective interest rate (EIR) basis as per Ind-AS 109, due to this the equity as at March 31, 2017 decreased by Rs. 843.61 Lakhs (April 1, 2016 Rs. 915.59 Lakhs). Profit for FY 16-17 increased Rs. 71.98 Lakhs.

Note 5: Finance lease classification

Certain arrangement as been classified as finance lease under Ind AS 109 as at transition date, due to this the equity as at March 31, 2017 and Profit for FY 16-17 decreased by Rs. 56.00 Lakhs.

Note 6: Employee stock option expense

Under the previous GAAP, the cost of equity-settled employee share-based plan were recognised using the intrinsic value method. Under Ind AS, the cost of equity settled share-based plan is recognised based on the fair value of the options as at the grant date. Consequently, the amount recognised in share option outstanding account increased by Rs. 32.07 lakhs as at 31 March 2017 (1 April 2016 - Rs. 28.04 lakhs). The profit for the year ended 31 March 2016 decreased by Rs. 4.27 lakhs. There is no impact on total equity.

Note 7: Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2017 increased by Rs. 23.35 lakhs. There is no impact on the total equity as at 31 March 2017.

Note 8: Investment property

Under Ind AS, investment properties are required to be separately presented on the face of the balance sheet. There is no impact on the total equity or profit as a result of this adjustment.

Note 9: Excise duty

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended 31 March 2017 by Rs. 2846.27 lakhs. There is no impact on the total equity and profit.

Note 10: Others

Under previous GAAP security deposit were carried at its nominal value and under Ind-AS the same were fair valued under transition date and subsequent amortisation prepaid rent. All these adjustments had marginal impact on equity and profit.

Note 11: Deferred tax

Deferred tax have been recognised on the adjustments made on transition to Ind AS.

5 OTHER ADDITIONAL INFORMATION

1) Rate of Interest and Maturity Profile of long term/short term borrowings : (Forming part of note for Long-term borrowings & Short term borrowings)

Net of interest subvention of 12% from Govt. of India as per Scheme for Extending Financial Assistance to Sugar Undertakings 2014 (SEFASU)

Security details for long term borrowings:

1) The term loans aggregating to Rs. 29,747.42 lakhs (31.03.2017 Rs. 37,189.47 lakhs) (01.4.2016 Rs. 44,948.60 lakhs) under Corporate Debt Restructuring Scheme (CDR) are secured as detailed below:

a) First pari-passu charge on the fixed assets of the company except the following:

i. Co-generation assets of Unit-II at Mundiampakkam, which are exclusively charged to State Bank of India and entire fixed assets of Unit-III at Gingee whose first pari-passu charge is exclusively charged to Sugar Development Fund (SDF), Government of India and State Bank of India.

ii. 5.19 Acres land with buildings at Vilankurichi Village belonging to Company exclusively charged to ICICI Bank.

iii. Land at Pallipuram Village, Alleppey Dist., Kerala belonging to Company exclusively charged to ICICI Bank.

iv. Registered office (Uffizi) at Coimbatore exclusively charged to ICICI Bank.

b) Second pari-passu charge on the entire fixed assets of Unit-III at Gingee subject to approval for sharing the security from Sugar Development Fund.

c) First pari-passu charge over the cogeneration receivables of Unit-II & III.

d) Second pari-passu charge over the remaining current assets of the company.

e) First Paripassu charge on the additional securities, as briefed below, provided by the company for CDR package:

i. 80 Cents of vacant Land situated at TS No 613/2(Part), TS Ward 10, Krishnaraya Puram Village, Coimbatore North Taluk, Coimbatore District within Coimbatore City Municipal Corporation.

ii. Land and building (Bio Control Unit at Unit 1 Theni) situated at Gullapuram Village, Periyakulam Taluk, Theni District, Gullapuram Panchayat.

iii. Residential Flat No 2 at Door No 9 Sathyanarayana Avenue, Raja Annamalaipuram, Chennai 600 028.

f) The loans of Rs. 880.39 lakhs availed during the year has been fully settled on 29th March 2018 and charge closure procedures are under process.

g) The Cogeneration receivables of Unit- II & III, previously charged exclusively to State Bank of India, will be pooled into the Trust and Retention Account for all lenders under Corporate Debt Restructuring (CDR) Package.

h) The Promoter(s) have pledged their entire shares in demat form with voting rights, in favour of the CDR Lenders.

i) The mortgages, charges and pledges referred to above shall rank pari passu with the mortgages, charges and pledges created and/or to be created in favour of the Acceding Lenders.

2) Term loans (SDF) aggregating to Rs. 2,661.17 lakhs (31.03.2017 Rs. 3,683.45 lakhs) (01.4.2016 Rs. 3,894.44 lakhs) are secured by 1st paripassu charge on the fixed/immovable assets of Unit-III (Sugar, Cogeneration & Distillery).

3) The soft loans aggregating to Rs. 3,695.11 lakhs (31.03.2017 Rs. 4,330.97 lakhs) (01.4.2016 Rs. 4,388.98 Lakhs) is secured by (a) First charge over the current assets of the Borrower on pari passu basis with other Working Capital Lenders (b) First pari passu charge on the fixed assets of the Borrower except the exclusively charged assets.(c) First pari passu charge on the additional securities provided by the Borrower for CDR package (d) Second pari passu charge on the entire fixed assets of Unit-III at Gingee subject to approval for sharing the security for (SDF). Bank of India needs to modify hypothecation charge to align to this security structure.

4) The loans aggregating to Rs. 33,442.53 lakhs (31.03.2017 Rs. 41,834.71 lakhs) (01.4.2016 Rs. 49,966.15 Lakhs) guaranteed by the Chairperson.

5) Term loans Guaranteed by others is Nil.

6) Period and amount of continuing default in respect of the aforesaid loans is as detailed below :

Security Details for short term borrowings:

1) The Working Capital facilities aggregating to Rs. 8,284 lakhs (31.03.2017 Rs. 14,395 lakhs) (01.4.2016 Rs. 14,340 Lakhs) under the CDR are secured as detailed below:

a) First pari-passu charge over the current assets of the company.

b) Second pari-passu charge on the fixed assets of the company except the following:

i. Co-generation assets of Unit-II at Mundiampakkam, which are exclusively charged to SBI and entire fixed assets of Unit-III at Gingee whose first pari-passu charge is exclusively charged to SDF and SBI.

ii. 5.19 Acres land with buildings at Vilankurichi Village belonging to Company exclusively charged to ICICI Bank.

iii. Land at Pallipuram Village, Alleppey Dist., Kerala belonging to Company exclusively charged to ICICI Bank.

iv. Registered office (Uffizi) at Coimbatore exclusively charged to ICICI Bank.

c) Second pari-passu charge on the additional securities, as briefed below, provided by the company for CDR package.

i. 80 cents of vacant Land situated at TS No 613/2(Part), TS Ward 10, Krishnaraya Puram Village, Coimbatore North Taluk, Coimbatore District within Coimbatore City Municipal Corporation.

ii. Land and building (Bio Control Unit at Unit 1 Theni) situated at Gullapuram Village, Periyakulam Taluk Theni District, Gullapuram Panchayat.

iii. Residential Flat No 2 at Door No 9, Sathyanarayana Avenue, Raja Annamalaipuram, Chennai 600 028.

d) First pari-passu charge over the cogeneration receivables of Unit-II & III.

e) Third pari-passu charge on the entire fixed assets of Unit-III at Gingee subject to approval for sharing the security from SDF.

f) The Cogeneration receivables of Unit- II & III, presently charged exclusively to SBI, will be pooled into the Trust and Retention Account for all lenders under CDR Package.

g) The Promoter(s) have pledged their entire shares in demat form with voting rights, in favour of the CDR Lenders.

h) The mortgages/charges and pledges referred to above shall rank pari passu with the mortgages/charges and pledges created and/or to be created in favour of the Acceding Lenders.

2) Working Capital facilities aggregating to Rs. 8,284 lakhs (31.03.2017 Rs. 14,395 lakhs) (01.4.2016 Rs. 14,340 lakhs) guaranteed by the Chairperson.

3) Short term loans Guaranteed by others is Nil.

4) Period and amount of default in respect of the aforesaid loans is Nil.

9) Provision towards Gratuity and superannuation schemes has been made upto date as per the demands received from Life Insurance Corporation of India and HDFC Standard Life Insurance Company Limited based on actuarial valuation. Provision for leave encashment benefit has been made for the entire amount due and payable as at the close of the year.

10) Contingent Liabilities not provided for

a) Claims against the company not acknowledged as debt:

I) CESTAT had set aside the central excise demand of Rs. 397.78 Lakhs with interest and penalty for the period Aprâ12 to Marâ13 and passed orders in favour of the Company in the matter of eligibility of exemption on molasses captively consumed and eligibility of cenvat credit availed on molasses procured from other Units in case of Unit III. The department has filed an appeal against this order in the Supreme Court of India and the decision is awaited. On the same issue for the period from Aprâ13 to Marâ14, the Commissioner of Central Excise, Pondicherry has confirmed demand of Rs. 550.40 Lakhs with interest and penalty of Rs. 10.00 Lakhs against which the company has preferred an appeal before CESTAT. The department has further issued notices for demand of Rs. 1,197.71 Lakhs (Aprâ14 to Marâ16), Rs. 80.38 Lakhs (Aprâ12 to Junâ12) and Rs. 896.83 Lakhs (Aprâ16 to Junâ17) which are yet to be adjudicated by the department. The department has also issued a notice for demand of Rs. 456.45 Lakhs towards Cenvat credit availed on Distillery capital goods on the same grounds as the other notices. This notice is also pending for adjudication before the Commissioner of Central Excise, Pondicherry.

ii) In case of Unit I, a demand of Rs. 27.80 Lakhs on the same issue of eligibility of exemption on molasses captively consumed for the period Aprilâ10 to Febâ11 was set aside by the CESTAT, Chennai and the department of Excise has preferred an appeal against this decision in the Supreme Court of India. For the subsequent periods (Janâ12 to Decâ14), demand of Rs. 476.55 Lakhs with interest and penalty is also being contested by the Company. In view of the CESTAT order, the Company feels that they have a strong case and hence have not provided for these contingent liabilities in the account.

iii) VAT (Assessment year 2011-12 & 2012-13) Appeal is pending before the Assistant Commissioner Commercial Taxes, in respect of a demand raised by the department, due to wrong classification of the product code. The total demand raised is Rs. 75.85 lakhs and the amount paid is â18.96 lakhs, towards initial payment for the appeal. Appeal has closed in favour of the Company and the order is awaited from the Assessment Circle.

iv) The South Indian Sugar Mills Association, of which the company is a member, has filed W.P. No. 7872/2015 before the Honâble Madras High Court against Union of India and Director of Sugar, Tamil Nadu challenging the very jurisdictional basis of fixing additional cane price for the Sugar years 2004-05 to 2008-09 in the absence of any statutory power to do so. The said writ petition is pending before the said Court along with other connected writ petitions. In the said writ on 19/3/15 there is a direction to respondents that they shall not initiate any coercive proceedings to recover any amount pursuant to impugned order.

The Union of India and Director of Sugar have filed their counter affidavit. Connected writs filed by various parties are also pending. On 19.04.2018 the High Court directed to post all the connected writs for hearing during second week of June 2018.

No provision is made to the alleged cane dues pursuant to the above direction of the Court. The amount is indeterminate at this juncture.

v) Recompense amount payable as per Corporate Debt Restructuring (CDR) scheme as at the close of the year is Rs. 4,767 lakhs (Rs. 3,777 Lakhs).

c) The Government of Tamilnadu notified the State Advised Price (SAP) of Rs. 2,650/ per MT of sugarcane for the sugar seasons 2013-14 and 2014-15 and Rs. 2,850/- for sugar season 2015-16 & 2016-17. The company has accounted the cane purchase at the rate of Rs. 2,350/- per MT (for the cane procured during Apr 2014 to Sep 2014) and at the rate of Rs. 2,400/- per MT (for the cane procured during the period October 2014 - Sep 2016) For the sugar season 2016-17, the company has paid Rs. 2,425/- per MT. All the private mills in Tamilnadu are disputing the SAP, and the case is pending before the High Court of Madras. The total disputed price involved is Rs. 17,790 Lakhs (Rs. 17,131 lakhs)

11) Income Tax assessments have been completed up to Assessment year 2015-16. Disallowances made in the order of assessment in some of the years, purely technical in nature, have been disputed in appeal before the appellate authorities. No provision has been made therefor since there are no tax demands for the present.

12) In terms of Ind AS-36, the company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its Fixed assets. The exercise has not revealed any impairment of assets during the year 2016-17 save and except the following:

The Tamil Nadu Government has issued a G.O. dated 31.08.2010 as directed by the Honâble Madras High Court, notifying the elephant corridor in the Nilgiris District, which includes companyâs land of 7.83 acres in Masinagudi Village Nilgiris District. The GO has now been disputed before the Honâble Supreme Court by the Company in SLP (C) 16898/2011 and interim stay has been granted and the petition is still pending. The carrying value of the said land in the books is Rs. 35.57 lakhs (31.03.2017 Rs. 35.57 lakhs, 01.04.2016 Carrying value Rs. 35.57 lakhs)

13) The exceptional item of Rs. 2,201.20 lakhs represents the gain from Sale of investment in Subsidiary Company Trident Sugars Limited, on 3rd April 2017.

Notes :

Names of Related parties and description of relationship

1. Holding Companies: None

2. Subsidiaries: Trident Sugars Limited (till 3rd April 2017)

3. Fellow Subsidiaries: None

4. Associates: None

5. Key Management Personnel (KMP)

a) Ms.Rajshree Pathy, Chairperson (Managing Director till 29.6.2017)

b) Mr.Aditya Krishna Pathy, Managing Director (w.e.f.30.6.2017)

c) Mr.R.Varadarajan, Wholetime Director

d) Mr.V.B.Gopal Krishnan, Chief Financial Officer

e) Mr.M.Ponraj, Company Secretary

6. Relatives of KMP :

Ms.Aishwarya Pathy (Daughter of Chairperson & Sister of Managing Director)

7. Enterprises over which KMP or their relatives are able to exercise significant influence:

i) RSCL Properties Pvt Ltd.,

ii) Lavik Holdings Pvt Ltd.,

iii) Argead Enterprises Pvt Ltd.,

iv) CAI Industries Pvt Ltd.,

v) COCCAArt & Design Institute (P) Ltd.,

vi) Rajshree Automotive Pvt Ltd.

vii) Aloha Tours & Travels (India) Pvt Ltd.,

viii) Rajshree Spinning Mills Ltd.,

ix) Raj Fabrics and Accessories (Cbe) Ltd.,

x) Greenplus Manures LLP

xi) Major Corporate Services (India) LLP

xii) Lavik Foodworks LLP

xiii) Rajshree Autos (P) Ltd.,

xiv) Rajshree Biosolutions LLP

xv) Lakshmi Mills Company Ltd.,

xvi) Lavik Estates Limited

xvii) Sri Krishna Potable Products Pvt Ltd.,

xviii) Rajnisha Textiles & Exports Pvt Ltd.,

xix) Petal Home LLP

15) Previous year figures have been regrouped wherever necessary to conform to current years classification.

Mar 31, 2016

Y OTHER ADDITIONAL INFORMATION

Security details for long term borrowings:

1) The term loans aggregating to Rs. 44,948.47 lakhs (Rs.47,546.80 lakhs) under Corporate Debt Restructuring Scheme (CDR) are secured as detailed below:

a) First pari-passu charge on the fixed assets of the company except the following:

i. Co-generation assets of Unit-II at Mundiampakkam and entire fixed assets of Unit-III at Gingee whose first pari-passu charge is exclusively charged to SDF and SBI (for SDF not having charge on Unit-II).

ii. 5.19 Acres land with buildings at Vilankurichi Village belonging to Company exclusively charged to ICICI Bank.

iii. Land at Pallipuram Village, Alleppey Dist., Kerala belonging to Company exclusively charged to ICICI Bank.

iv. Registered office (Uffizi) at Coimbatore exclusively charged to ICICI Bank

v. 2/3rd undivided rights on the interests in the plot of land admeasuring about 375 sq yards along with the first and second floors terrace floors along with the mezannine floor situated at municipal number 186, block no. 10, golf links, New Delhi exclusively charged to Axis Bank.

b) Second pari-passu charge on the entire fixed assets of Unit-III at Gingee subject to approval for sharing the security from Sugar Development Fund.

c) First pari-passu charge over the cogeneration receivables of Unit-II & III.

d) Second pari-passu charge over the remaining current assets of the company.

e) First Paripassu charge on the additional securities, as briefed below, provided by the company for CDR package.

i. Vacant Land situated at TS No 613/2(Part), TS Ward 10, Krishnaraya Puram Village, Coimbatore North Taluk, Coimbatore District within Coimbatore city Municipal Corporation measuring 80 cents.

ii. Land and building (Bio Control Unit at Unit I Theni) situated at Gullapuram Village, Periyakulam Taluk, Theni District, Gullapuram Panchayat after closure of the loan availed from State Bank of Travancore, Coimbatore.

iii. Residential Flat No 2 at Door No 9 Sathyanarayana Avenue, Raja Annamalaipuram Chennai 600 028.

f) The Cogeneration receivables of the Unit- II & III, presently charged exclusively to State Bank of India, will be pooled into the Trust and Retention Account for all lenders under CDR Package.

g) The Promoter(s) have pledged their entire shares in demat form with voting rights, in favour of the CDR Lenders.

h) The mortgages, charges and pledges referred to above shall rank pari passu with the mortgages, charges and pledges created and/or to be created in favour of the Acceding Lenders.

2) The term loan (Axis TL II) of Rs.629 lakhs (Rs.942.84 lakhs) is secured by 1st exclusive charge on land and buildings of the Company at Golf Links, New Delhi and subservient charge on the entire movable fixed assets of the company.

3) Term loans (SDF) aggregating to Rs.3,894.44 lakhs (Rs.3,894.44 lakhs) are secured by 1st paripassu charge on the fixed/immovable assets of Unit-III (Sugar, Cogeneration & Distillery).

4) The soft loans aggregating to Rs.4388.98 lakhs is secured by (a) First charge over the current assets of the Borrower on pari passu basis with other WC Lenders (b) First pari passu charge on the fixed assets of the Borrower except the exclusively charged assets.(c) First pari passu charge on the additional securities provided by the Borrower for CDR package (d) Second pari passu charge on the entire fixed assets of the Unit-III at Gingee subject to approval for sharing the security for Sugar Development Fund. The State Bank of Hyderabad, State Bank of Mysore and Bank of India need to modify hypothecation charge to align to this security structure.

5) The loans aggregating to Rs.49,337.45 lakhs (Rs.47,546.80 lakhs) guaranteed by Managing Director.

6) Term loans Guaranteed by others is Nil.

Security Details for short term borrowings:

7) The Working Capital facilities aggregating to Rs.14,307 lakhs (Rs.14,307 lakhs) under the CDR are secured as detailed below:

a) First pari-passu charge over the current assets of the company.

b) Second pari-passu charge on the fixed assets of the company except the following:

i. Co-generation assets of Unit-II at Mundiampakkam and entire fixed assets of Unit-III at Gingee whose first pari-passu charge is exclusively charged to SDF and SBI (Note : SDF not having charge on Unit-II)

ii. 5.19 Acres land with buildings at Vilankurichi Village belonging to Company exclusively charged to ICICI Bank.

iii. Land at Pallipuram Village, Alleppey Dist., Kerala belonging to Company exclusively charged to ICICI Bank.

iv. Registered office (Uffizi) at Coimbatore exclusively charged to ICICI Bank

v. 2/3rd undivided rights on the interests in the plot of land admeasuring about 375 sq yards along with the first and second floors terrace floors along with the mezannine floor situated at municipal number 186, block no. 10, Golf Links, New Delhi exclusively charged to Axis Bank.

c) Second pari-passu charge on the additional securities, as briefed below, provided by the company for CDR package.

i. Vacant Land situated at TS No 613/2(Part), TS Ward 10, Krishnaraya Puram Village, Coimbatore North Taluk, Coimbatore District within Coimbatore city Municipal Corporation measuring 80 cents.

ii. Land and building (Bio Control Unit at Unit 1 Theni) situated at Gullapuram Village, Periyakulam Taluk Theni District, Gullapuram Panchayat after closure of the loan availed from State Bank of Travancore, Coimbatore.

iii. Residential Flat No 2 at Door No 9 Sathyanarayana Avenue, Raja Annamalaipuram Chennai 600 028

d) First pari-passu charge over the cogeneration receivables of the Unit-II & III.

e) Third pari-passu charge on the entire fixed assets of Unit-III at Gingee subject to approval for sharing the security from Sugar Development Fund.

f) The Cogeneration receivables of the Unit- II & III, presently charged exclusively to SBI, will be pooled into the Trust and Retention Account for all lenders under CDR Package.

g) The Promoter(s) have pledged their entire shares in demat form with voting rights, in favour of the CDR Lenders.

h) The mortgages/charges and pledges referred to above shall rank pari passu with the mortgages/charges and pledges created and/or to be created in favour of the Acceding Lenders.

8) Working Capital facilities aggregating to Rs.,307 lakhs (Rs.14,307 lakhs) guaranteed by Managing Director.

9) Short term loans Guaranteed by others is Nil.

10) Period and amount of default in respect of the aforesaid loans is Nil.

11) Provision towards Gratuity and superannuation schemes has been made up to date as per the demands received from Life Insurance Corporation of India and HDFC Standard Life Insurance Company Limited based on actuarial valuation. Provision for leave encashment benefit has been made for the entire amount due and payable as at the close of the year.

The disclosures required under Accounting Standard 15 "Employee Benefits" are as follows.

Defined Contribution Plan

Contribution to Defined Contribution Plan, recognized is charged off for the year as under:

Employer''s Contribution to Provident Fund 146.28 125.44

Employer''s Contribution to Superannuation Fund 2.01 59.86

(excluding refund of excess contribution in prior year)

Defined Benefit Plan

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India / HDFC Standard Life Insurance Company Limited is a defined benefit plan. The present value of obligation 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 estimates of rate of escalation in salary considered in actuarial valuation, taken into account the inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

12) Exceptional Items

Exceptional items represents the provision made in the previous year for cane dues, now not required, reversed.

13) Contingent Liabilities not provided for

a) Claims against the company not acknowledged as debt:

i) The Commissioner of Central Excise (Appeals) has upheld the order of the Central Excise department imposing a penalty of Rs.21.92 lakhs (Rs.21.92 lakhs) in the matter of payment of service tax for agency fees and other charges paid towards ECB availed. The company has filed an appeal before CESTAT (Central Excise and Service Tax Appellate Tribunal) and the appeal is pending before the said Appellate Tribunal and hence no provision has been made.

ii) CESTAT had set aside the central excise demand of Rs.397.78 Lakhs with interest and penalty for the period Apr''12 to Mar''13 and passed orders in favour of the Company in the matter of eligibility of exemption on molasses captively consumed and eligibility of cenvat credit availed on molasses procured from other Units in case of Unit III. The department has now filed an appeal against this order in the Supreme Court of India and the decision is awaited. On the same issue for the period from Apr''13 to Mar''14, the Commissioner of Central Excise, Pondicherry has confirmed demand of Rs.550.40 Lakhs with interest and penalty of Rs.10.00 Lakhs against which the company has preferred an appeal before CESTAT. The department has further issued notices for demand of Rs.1,197.71 lakhs for subsequent periods (Apr''14 to Mar''16) which are not yet adjudicated by the Commissioner of Central Excise, Pondicherry. In case of Unit I, a demand of Rs.27.80 Lakhs for the period April''10 to Feb''11 was set aside by the CESTAT, Chennai and the department of Excise has preferred an appeal against this decision in the Supreme Court of India. For the subsequent periods (Jan''12 to Dec''14), demand of Rs.476.55 Lakhs with interest and penalty is also being contested by the Company. In view of the CESTAT order, the Company feels that they have a strong case and hence have not provided for these contingent liabilities in the account.

iii) VAT (Assessment year 2011-12 & 2012-13) Appeal is pending before the Assistant Commissioner Commercial Taxes, in respect of a demand raised by the department, due to wrong classification of the product code. The total demand raised is Rs.75.85 lakhs and the amount paid is Rs.18.96 lakhs, towards initial payment for the appeal.

iv) The South Indian Sugar Mills Association, of which the company is a member, has filed W.P. No. 7872/2015 before the Hon''ble Madras High Court against Union of India and Director of Sugar, Tamil Nadu challenging the very jurisdictional basis of fixing additional cane price for the Sugar years 2004-05 to 2008-09 in the absence of any statutory power to do so. The said writ petition is pending before the said Court along with other connected writ petitions. In the said writ on 19/3/15 there is a direction to respondents that they shall not initiate any coercive proceedings to recover any amount pursuant to impugned order. No provision is made to the alleged cane dues pursuant to the above direction of the Court. The amount is indeterminate at this juncture.

v) Recompense amount payable as per Corporate Debt Restructuring (CDR) scheme as at the close of the year is Rs.2,746 lakhs (Rs.1501 lakhs)

b) Guarantees

The Company has provided a corporate guarantee to the banks in respect of Term loans and cash credit facilities sanctioned to the subsidiary company Trident Sugars Limited. The outstanding amount as on 31.3.2016 is Rs.3,340.92 lakhs (Rs.1,777.42 lakhs)

c) The Government of Tamilnadu notified the State Advised Price (SAP) of Rs.2,650/ per MT of sugarcane for the sugar seasons 2013-14 and 2014-15 and Rs.2,850/- per MT for sugar season 2015-16. The company has accounted the cane purchase at the rate of Rs.2,350/- per MT (for the cane procured during Apr 2014 to Sep 2014) and at the rate of Rs.2,400/- per MT (for the cane procured during the period October 2014 - March 2016). Since all the private mills in Tamilnadu disputing the State Government''s announcement and the case is pending before the High Court of Madras. The total amount involved is Rs. 12,615.58 lakhs.

14) Income Tax assessments have been completed up to Assessment year 2013-14. Disallowances made in the order of assessment in some of the years, purely technical in nature, have been disputed in appeal before the appellate authorities. No provision has been made therefore since there are no tax demands for the present.

15) The amount of Rs.158.70 lakhs received as initial contribution from Ms.Rajshree Pathy, towards 1,150,000 Equity warrants issued to her was forfeited in April 2014 for failure to exercise the option of conversion of the same into equity shares. The amount so received is shown under other reserves.

16) In terms of AS-28, the company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its Fixed assets. The exercise has not revealed any impairment of assets during the year 2015-16 save and except the following:

The Tamil Nadu Government has issued a G.O. dated 31.08.2010 as directed by the Hon''ble Madras High Court, notifying the elephant corridor in the Nilgiris District, which includes company''s land of 7.83 acres in Masinagudi Village Nilgiris District. The GO has now been disputed before the Hon''ble Supreme Court by the Company in SLP (C) 16898/2011 and interim stay has been granted and the petition is still pending. The carrying value of the said land in the books is Rs.35.57 lakhs (Rs.35.57 lakhs).

17) As per the Corporate Debt Restructuring (CDR) Scheme of the Company, the promoters viz., Ms.Rajshree Pathy, Chairperson & Managing Director and M/s.RSCL Properties Private Limited, have brought-in Rs.8.25 Crores and Rs.4 Crores respectively in March 2014. For speedy implementation of the CDR Scheme, the said amounts have been accounted as non-interest bearing unsecured loan, in the books of the Company, instead of equity at that time. The CDR lenders led by State Bank of India, insisted that the said amount should be converted into equity, as per the CDR Scheme.

Accordingly, in terms of the special resolutions passed at the EGM held on 10th February 2016, the Company has issued and allotted on preferential basis 1,180,000 equity shares of Rs. 10/- each at a price of Rs. 28/- each. Subsequently, in terms of the approval of the shareholders through postal ballot process, the Company has issued and allotted 3,195,000 Equity shares of Rs.10/- each at a price of Rs. 28/- each on 29th April 2016, by conversion of entire promoters'' contribution under the CDR Scheme.

18) Previous year figures have been regrouped wherever necessary to conform to current year''s classification.

Mar 31, 2015

1) Contingent Liabilities not provided for

a) Claims against the company not acknowledged as debt:

i) The Commissioner of Central Excise (Appeals) has upheld the order of the Central Excise department imposing a penalty of Rs. 21.92 lakhs (Rs. 21.92 lakhs) in the matter of payment of service tax for agency fees and other charges paid towards ECB availed. The company has filed an appeal before CESTAT (Central Excise and Service Tax Appellate Tribunal) and the appeal is pending before the said Appellate Tribunal and hence no provision has been made.

ii) CESTAT has set aside the central excise demand of Rs. 397.78 Lakhs with interest and penalty and passed orders in favour of the Company in the matter of eligibility of exemption on molasses captively consumed in Unit III and also cenvat credit availed on molasses procured from other Units. On the same issue for the subsequent period, Commissioner of Central Excise, Pondicherry has confirmed demand of Rs. 550.40 Lakhs with interest and a penalty of Rs. 10.00 Lakhs. The Company has preferred an appeal before CESTAT. Demand of Rs. 476.55 Lakhs with interest and penalty on the similar issue in Unit I is also being contested by the Company. In view of the CESTAT order referred above, the Company has not provided for these contingent liabilities in the account.

iii) Recompense amount payable as per Corporate Debt Restructuring (CDR) scheme as at the close of the year is Rs. 1,501 lakhs (Rs. 431 Lakhs)

b) Guarantees

The Company has provided a corporate guarantee to the banks in respect of Term loans and cash credit facilities sanctioned to the subsidiary company, Trident Sugars Limited. The outstanding as on 31.3.2015 is Rs. 1,777.42 lakhs (Rs. 4,263.12 lakhs)

c) The Government of Tamilnadu notified the State Advised Price (SAP) of Rs. 2,650/- per MT of sugarcane for the sugar seasons 2013-14 and 2014-15. The company has accrued and accounted the cane purchase at the rate of Rs. 2,350/- per MT (for the cane procured during April 2014 to September 2014) and at the rate of Rs. 2,400/- per MT (for the cane procured during the period October 2014 - March 2015). Since all the private mills in Tamilnadu are disputing the State Government''s announcement and the case is pending before the High Court of Madras. The total amount involved is Rs. 4,012.89 lakhs.

2) Income Tax assessments have been completed upto Assessment year 2012-13. Disallowances made in the order of assessment in some of the years, purely technical in nature, have been disputed in appeal before the appellate authorities. No provision has been made therefor since there are no tax demands for the present.

3) In terms ofAS-28, the company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its Fixed assets. The exercise has not revealed any impairment of assets during the year 2014-15 save and except the immediate following point.

4) The Tamil Nadu Government has issued a G.O. dated 31.08.2010 as directed by the Hon''ble Madras High Court, notifying the elephant corridor in the Nilgris District, which includes company''s land of 7.83 acres in Masinagudi Village Nilgiris District. The GO has now been disputed before the Hon''ble Supreme Court by the Company in SLP (C) 16898/2011 and interim stay has been granted. The carrying value of the said land in the books is Rs. 35.57 lakhs (Rs. 35.57 lakhs).

5) In terms of resolutions passed at the Extraordinary General Meeting held on 10th October 2012, 11,50,000 Equity warrants were issued to Ms.Rajshree Pathy, Chairperson and Managing Director at an exercise price of Rs. 55.20 per warrant. In terms of the regulations, 25% of the total amount (Rs. 158.70 lakhs) was deposited on 24th October 2012. Since Ms. Rajshree Pathy did not exercise the option, the initial amount of Rs. 158.70 lakhs is forfeited in April 2014. The same has been shown under reserves and surplus.

6) The Company has changed the method of providing depreciation and has adopted useful lives and residual value as prescribed in Schedule II of Companies Act, 2013 read with Accounting Standard 6 (AS 6) ''Depreciation Accounting''. Consequent to the above change, the charge for depreciation in respect of fixed assets held as at April 1,2014 is lower by Rs. 210.00 Lakhs. Further carrying value of assets, where the remaining useful life of the asset was determined to be NIL as on April 1,2014, aggregating to Rs. 424.09 lakhs is adjusted against the balance brought forward in General Reserve.

7) Previous year figures have been regrouped wherever necessary to conform to current year''s classification.

Mar 31, 2014

Security details for long term borrowings:

1) The term loans aggregating to Rs. 44,311.41 lakhs under Corporate Debt Restructuring Scheme (CDR) are secured as detailed below:

a) First pari-passu charge on the fixed assets of the company except the following:

i. Co-generation assets of Unit-II at Mundiampakkam and entire fixed assets of Unit-III at Gingee whose first pari- passu charge is exclusively charged to SDF and SBI.

ii. 5.19 Acres land with buildings at Vilankurichi Village belonging to Company exclusively charged to ICICI Bank.

iii. Land at Pallipuram Village, Alleppey District, Kerala belonging to Company exclusively charged to ICICI Bank.

iv. Registered office (Uffizi) at Coimbatore exclusively charged to ICICI Bank

v. 2/3rd undivided rights on the interests in the plot of land admeasuring about 375 sq yards along with the first and second floors terrace floors along with the mezannine floor situated at Municipal No. 186, Block No. 10, Golf Links, New Delhi exclusively charged to Axis Bank.

b) Second pari-passu charge on the entire fixed assets of Unit-III at Gingee subject to approval for sharing the security from Sugar Development Fund.

c) First pari-passu charge over the cogeneration receivables of the Unit-II & III.

d) Second pari-passu charge over the remaining current assets of the company.

e) First Paripassu charge on the additional securities, as briefed below, provided by the company for CDR package.

i. Vacant Land situated at TS No 613/2(Part), TS Ward 10, Krishnaraya Puram Village, Coimbatore North Taluk, Coimbatore District within Coimbatore City Municipal Corporation measuring 80 cents.

ii. Land and building (Bio Control Unit at Unit 1 Theni) situated at Gullapuram Village, Periyakulam Taluk, Theni District, Gullapuram Panchayat after closure of the loan availed from State Bank of Travancore, Coimbatore.

iii. Residential Flat No 2 at Door No. 9 Sathyanarayana Avenue, Raja Annamalaipuram, Chennai 600 028.

f) The Cogeneration receivables of the Unit- II & III, presently charged exclusively to SBI, will be pooled into the Trust and Retention Account for all lenders under CDR Package.

g) The Promoter(s) have pledged their entire shares with voting rights in demat form, in favour of the CDR Lenders.

h) The mortgages, charges and pledges referred to above shall rank pari passu with the mortgages, charges and pledges created and/or to be created in favour of the Acceding Lenders.

2) The term loan (Axis TL II) of Rs. 1,257.13 lakhs is secured by 1st exclusive charge on land and buildings of the Company at Golf Links, New Delhi and subservient charge on the entire movable fixed assets of the company.

3) Term loans (SDF) aggregating to Rs. 4,722.08 lakhs are secured by 1st paripassu charge on the fixed/immovable assets of Unit-III (Sugar, Cogeneration & Distillery).

4) The loans aggregating to Rs. 44,311.41 lakhs guaranteed by Managing Director.

5) Term loans Guaranteed by others is Nil.

6) Period and amount of continuing default in respect of the aforesaid loans is Nil.

Security Details for short term borrowings:

1) The Working Capital facilities aggregating to Rs. 14,307 lakhs under the CDR are secured as detailed below:

a) First pari-passu charge over the current assets of the company.

b) Second pari-passu charge on the fixed assets of the company except the following:

i. Co-generation assets of Unit-II at Mundiampakkam and entire fixed assets of Unit-III at Gingee whose first pari- passu charge is exclusively charged to SDF and SBI.

ii. 5.19 Acres land with buildings at Vilankurichi Village belonging to Company exclusively charged to ICICI Bank.

iii. Land at Pallipuram Village, Alleppey District, Kerala belonging to Company exclusively charged to ICICI Bank.

iv. Registered office (Uffizi) at Coimbatore exclusively charged to ICICI Bank.

v. 2/3rd undivided rights on the interests in the plot of land admeasuring about 375 sq yards along with the first and second floors, terrace floors along with the mezannine floor situated at Municipal No. 186, Block No. 10, Golf Links, New Delhi exclusively charged to Axis Bank.

c) Second pari-passu charge on the additional securities, as briefed below, provided by the company for CDR package.

i. Vacant Land situated at TS No 613/2(Part), TS Ward 10, Krishnaraya Puram village, Coimbatore North Taluk, Coimbatore District within Coimbatore City Municipal Corporation measuring 80 cents.

ii. Land and building (Bio Control Unit at Unit 1, Theni) situated at Gullapuram Village, Periyakulam Taluk, Theni District, Gullapuram Panchayat after closure of the loan availed from State Bank of Travancore, Coimbatore.

iii. Residential Flat No 2 at Door No 9 Sathyanarayana Avenue, Raja Annamalaipuram, Chennai 600 028.

d) First pari-passu charge over the cogeneration receivables of the Unit-II & III.

e) Third pari-passu charge on the entire fixed assets of Unit-III at Gingee subject to approval for sharing the security

from Sugar Development Fund.

f) The Cogeneration receivables of the Unit- II & III, presently charged exclusively to SBI, will be pooled into the Trust and Retention Account for all lenders under CDR Package.

g) The Promoter(s) have pledged their entire shares in demat form with voting rights, in favour of the CDR Lenders.

h) The mortgages/charges and pledges referred to above shall rank pari passu with the mortgages/charges and pledges created and/or to be created in favour of the Acceding Lenders.

2) Term loan (Sundaram Finance) of Rs. 25.08 lakhs is secured by exclusive 1st charge on particular Machinery viz. John Deere wheel Cane located at Unit-II, Mundiampakkam.

3) The term loan (SBI TL III) of Rs. 89.36 lakhs is secured by 1st Paripassu charge over the fixed/immovable assets of Sugar, Cogeneration & Distillery unit at Semmedu Village (Unit-III) and 2nd paripassu charge on Receivables and Inventories of Unit-III (Distillery).

4) Term loan (SBT) of Rs. 24.00 lakhs is secured by way of 1st hypothecation charge on plant & machineries purchased out of bank''s finance for Bio-control Unit at Varadarajnagar and 1st mortgage charge on 2.96 Acres along with buildings and other properties thereon belonging to the said Bio-control unit.

5) Working Capital facilities aggregating to Rs. 14,307 lakhs guaranteed by Managing Director.

6) Short term loans Guaranteed by others is Nil.

7) Period and amount of default in respect of the aforesaid loans is Nil.

1. Defined Benefit Plan

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India / HDFC Standard Life Insurance Company Limited is a defined benefit plan. The present value of obligation 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 estimates of rate of escalation in salary considered in actuarial valuation, taken into account the inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

2. Contingent Liabilities not provided for

a) Claims against the company not acknowledged as debt:

i) The Commissioner of Central Excise (Appeals) has upheld the order of the Central Excise department imposing a penalty of Rs. 21.92 lakhs in the matter of payment of service tax for agency fees and other charges paid towards ECB availed. The company has filed an appeal before CEGAT and the appeal is pending before the said Appellate Tribunal and hence no provision has been made.

ii) The administrative service fee on alcohol manufactured by distilleries was hiked by the Tamil Nadu Government from 50 paise to 100 paise per litre. This was struck down by the Hon''ble Madras High Court as unconstitutional against which Tamil Nadu Government has filed SLP before the Hon''ble Supreme Court. By its interim order dated 6.5.2004, the Hon''ble Supreme Court has held that only 50 paise per litre could be collected pending disposal of the appeal. The amount is indeterminate at this juncture.

iii) The central excise demand of 397.78 lakhs with interest and a penalty of Rs. 10 lakhs confirmed by Commissioner of Central Excise, Pondicherry in the matter of eligibility of exemption on captive consumption of molasses in Unit III has not been provided for in the accounts. The Company has preferred an appeal before Central Excise and Service Tax Appellate Tribunal (CESTAT), Chennai. Demand of Rs. 280 Lakhs with interest and penalty of Rs. 5 lakhs on the similar issue in Unit I is also being contested by the Company and the same has not been provided for in the account.

iv) Recompense amount payable as per Corporate Debt Restructuring (CDR) scheme for the year ended 31st March 2014 - Rs. 431 Lakhs.

b. Guarantees

The Company has provided a corporate guarantee of Rs. 4,263.12 lakhs (Rs. 4,667.25 lakhs) to the Banks in respect of Term loans and cash credit facilities sanctioned to the subsidiary company Trident Sugars Limited.

c) Income Tax assessments have been completed upto Assessment year 2011-12. Disallowances made in the order of assessment in some of the years, purely technical in nature, have been disputed in appeal before the appellate authorities. No provision has been made therefor since there are no tax demands for the present.

3) In terms of AS-28, the company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its Fixed assets. The exercise has not revealed any impairment of assets during the year 2012-13 save and except the following point No.16.

4) The Tamil Nadu Government has issued a G.O. dated 31.08.2010 as directed by the Hon''ble Madras High Court, notifying the elephant corridor in the Nilgiris District, which includes company''s land of 7.83 acres in Masinagudi Village Nilgiris District. The GO has now been disputed before the Hon''ble Supreme Court by the Company in SLP (C) 16898/2011 and interim stay has been granted. The carrying value of the said land in the books is Rs. 35.57 lakhs.

5) In terms of resolutions passed at the Extraordinary General Meeting held on 10th October 2012, 11,50,000 Equity warrants were issued to Ms. Rajshree Pathy, Chairperson and Managing Director at an exercise price of Rs. 55.20 per warrant. In terms of the regulations, 25% of the total amount (Rs. 158.70 lakhs) was deposited on 24th October 2012. Subsequent to the close of the financial year 2013-14 since Ms.Rajshree Pathy did not exercise the option, the initial amount of Rs. 158.70 lakhs is forfeited in April 2014.

6) Corporate Debt Restructuring (CDR)

The Corporate Debt Restructuring proposal (CDR proposal) was referred by the company to Corporate Debt Restructuring Cell, ("CDR Cell") and the said proposal was recommended by the consortium of lenders led by State Bank of India (SBI), Coimbatore. The CDR proposal was approved by CDR Empowered Group ("CDR EG") on 14th March 2014 and communicated vide final Letter of Approval dated 24th March 2014. The cut-off date for the CDR proposal was 1st October 2013. The Master Restructuring Agreement (MRA) between the company and the CDR lenders has been executed, by virtue of which the restructured facilities are governed by the provisions specified in the MRA on the cut-off date (COD) of October 1, 2013.

The key features of the CDR scheme are as below:

1. Term Loans: Rs. 296.61 crores: Repayment of Restructured term loan (RTL) after moratorium of 18 months from cut-off date in 34 structured quarterly installments commencing from June 30, 2015 till September 30, 2023.

2. Working capital term loan (WCTL): Rs. 63.93 chores: Repayment of WCTL after moratorium of 18 months from cut off date in 28 structured quarterly installments commencing from June 30, 2015 till March 31, 2022.

3. Interest payable on term loans (1) above from cut-off date to 31st March 2015 converted into Funded interest term loan (FITL): Rs. 48.90 chores: Repayment of FILL after moratorium of 18 months from cut-off date in 26 structured quarterly installments commencing from June 30, 2015 till September 30, 2021.

4. New Term Loan under Scheme for Extending Financial Assistance to Sugar Undertakings, 2014 (SEAS) for clearing of cane price arrears of the previous sugar season and for timely settlement of cane prices for the current sugar season: Rs. 65.85 Crores: - Repayment after moratorium of 2 years from the date of first disbursement, in 12 quarterly installments.

5. Restructuring of existing working capital limits to Rs. 143.07 Crores.

6. Waiver of existing events of defaults, penal interest and charges etc. in accordance with MRA.

7. Right to recompense to CDR Lenders for the relief and sacrifice extended, subject to provisions of CDR Guidelines and MRA.

8. Lenders will have right to reverse the waivers / sacrifices granted under the package.

9. The company and the CDR Lenders executed MRA during the year. The MRA as well as the provisions of the Master Circular on Corporate Debt Restructuring issued by the Reserve Bank of India, give a right to the CDR Lenders to get a recompense of their waivers and sacrifices made as part of the CDR Proposal. The recompense payable by the borrowers is contingent on various factors including improved performance of the borrowers and many other conditions, the outcome of which currently is materially uncertain and hence the proportionate amount payable as recompense has been treated as a contingent liability. The aggregate present value of the outstanding sacrifice made/ to be made by CDR Lenders as per the MRA is approximately Rs. 48.97 crores for the Company.

10. Transactions with related parties

Note:

Names of Related parties and description of relationship

1. Holding Companies None

2. Subsidiaries Trident Sugars Limited

3. Fellow Subsidiaries None

4. Associates None

5. Key Management Personnel a) Ms. Rajshree Pathy b) Mr. R.Varadarajan

6. Relatives of Key Management Personnel a) Ms. Aishwarya Pathy b) Mr. Aditya Krishna Pathy

7. Other Related Parties a) RSCL Properties Pvt Ltd b) Prana Ayurveda Coimbatore Pvt Ltd c) Argead Enterprises Pvt Ltd d) CAI Industries Pvt Ltd. e) Rajshree Automotive Pvt Ltd. f) Aloha Tours & Travels (India) Pvt Ltd g) Rajshree Spinning Mills Limited h) Raj Fabrics and Accessories (Cbe) Ltd i) Greenplus Manures Pvt Ltd j) Major Corporate Services (India) Ltd

Mar 31, 2013

1) Provision towards Gratuity and superannuation schemes has been made upto date as per the demands received from Life Insurance Corporation of India and HDFC Standard Life Insurance Company Limited based on actuarial valuation. Provision for leave encashment benefit has been made for the entire amount due and payable as at the close of the year.

2) Contingent Liabilities not provided for

a) Claims against the company not acknowledged as debt:

i) The Commissioner of Central Excise (Appeals) has upheld the order of the Central Excise department imposing a penalty of Rs. 21.92 lakhs in the matter of payment of service tax for agency fees and other charges paid towards ECB availed. The company has filed an appeal before CEGAT and the appeal is pending before the said Appellate Tribunal and hence no provision has been made.

ii) Electricity generation tax demand for Rs. 304.90 lakhs has been raised in respect of captive consumption of electricity generated from cogeneration division. The same is disputed and contested in appeal and SLP is pending before Supreme Court. Hence no amount is provided towards this demand and interest liability of Rs.172.29 lakhs.

iii) The administrative service fee on alcohol manufactured by distilleries was hiked by the Tamil Nadu Government from 50 paise to 100 paise per litre. This was struck down by the Hon''ble Madras High Court as unconstitutional against which Tamil Nadu Government has filed SLP before the Hon''ble Supreme Court. By its interim order dated 6.5.2004, the Hon''ble Supreme Court has held that only 50 paise per litre could be collected pending disposal of the appeal. The amount is indeterminate at this juncture.

b) Guarantees

The Company has provided a corporate guarantee of Rs. 4,667.25 lakhs (Rs. 3,983.21 lakhs) to the Banks in respect of Term loans and cash credit facilities sanctioned to the subsidiary company Trident Sugars Limited.

c) Income Tax assessments have been completed upto Assessment year 2010-11. Disallowances made in the order of assessment in some of the years, purely technical in nature, have been disputed in appeal before the appellate authorities. No provision has been made therefor since there are no tax demands for the present.

3) In terms of AS-28, the company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its Fixed assets. The exercise has not revealed any impairment of assets during the year 2012-13.

4) The Tamil Nadu Government has issued a G.O. dated 31.08.2010 as directed by the Hon''ble Madras High Court, notifying the elephant corridor in the Nilgiris District, which includes company''s land of 7.83 acres in Masinagudi Village, Nilgiris District. The GO has now been disputed before the Hon''ble Supreme Court by the Company in SLP (C) 16898/2011 and interim stay has been granted. The carrying value of the said land in the books is Rs.35.57 lakhs.

5) At the Extraordinary General meeting held on 10th October 2012, the shareholders of the company have consented by way of special resolutions for offering, issuing, allotting on preferential basis to Ms.Rajshree Pathy, Chairperson and Managing Director upto 11,50,000 Equity warrants at an exercise price of Rs. 55.20/- per warrant, and for the allotment of equal number of Equity Shares on exercise of such Equity Warrants. As per the requirement of SEBI Regulations, Ms.Rajshree Pathy has paid the strike price (25% of exercise price) amounting to Rs.158.70 lakhs on 24th October 2012 and accordingly she has been allotted 11,50,000 equity warrants on the same date. The exercise period shall not exceed 18 months from the date of allotment of warrants.

6) Previous year figures have been regrouped wherever necessary to conform to current year''s classification.

Mar 31, 2012

Security details for the aforesaid Long term loans

1) Term loan Rs 8,416.32 lakhs secured by exclusive 1st charge over the fixed assets purchased/ created out of the Bank finance for the Distillery project at Unit-III, Semmedu and 2nd charge over the sugar & cogeneration division assets of Unit-III at Semmedu.

2) Term loan Rs 8,550.00 lakhs secured by exclusive 1st charge on cogeneration receivables of Unit-II at Mundiampakkam and Unit-III at Gingee and exclusive 1st charge on the cogeneration assets (including immovable properties) of Unit-II at Mundiampakkam.

3) Term loan Rs 397.00 lakhs secured by 1st paripassu charge on the current assets of the Company and 1st paripassu charge on fixed & immovable assets of Unit-I at Varadarajnagar.

4) Term loan Rs 2,000.00 lakhs secured by 1st paripassu charge on the current assets of the Company and 1st paripassu charge on fixed & immovable assets of sugar mill of Unit-II situated at Mundiampakkam.

5) Term loan Rs 400.00 lakhs secured by 1st paripassu charge on the fixed & immovable assets of Sugar & Cogeneration plants of Unit-III situated at Semmedu, 2nd paripassu charge on the fixed assets of Unit-I situated at Varadarajnagar and 4th paripassu charge on sugar mill assets of Unit II situated at Mundiampakkam.

6) Term loan Rs 90.00 lakhs secured by 1st paripassu charge on the fixed & immovable assets of Sugar & Cogeneration plants of Unit-III situated at Semmedu.

7) Term loan Rs 70.00 lakhs secured by 1st paripassu charge on the current assets of the Company and 1st paripassu charge on fixed & immovable assets of sugar plant of Unit-II situated at Mundiampakkam.

8) Term loans under the Scheme for Extending Financial Assistance to Sugar Undertakings (SEFASU) aggregating to Rs 60.55 lakhs secured by residual paripassu charge on the fixed assets of Unit-I situated at Varadarajnagar and residual paripassu charge on fixed assets of Unit-II situated at Mundiampakkam.

9) ECB loan of outstanding of Rs10,839.05 lakhs is secured by 1st paripassu charge on the fixed & immovable assets of Sugar & Cogeneration plants of Unit-III at Semmedu and 2nd charge on the current assets of sugar and cogeneration plants of Unit-III at Semmedu, which is subservient to the 1st charge in favour of working capital lenders of Unit-III.

10) Term loan Rs 262.35 lakhs of Sugar Development Fund from Government of India is secured by way of exclusive 2nd charge on movable and immovable properties of Sugar & cogeneration plants of Unit-II situated at Mundiampakkam.

11) Term loan Rs 2,110.00 lakhs secured by 1st paripassu charge on movable and immovable properties of Sugar & Cogeneration plants of Unit-III situated at Semmedu.

12) Term loan Rs 200.00 lakhs is secured by issue of bank guarantee, which is secured by 2nd paripassu charge on the current assets of the Company.

13) Term loan Rs 1,885.71 lakhs secured by 2nd charge on land and buildings of the Company at Golf links, New Delhi and subservient charge on the entire movable fixed assets of the company.

14) Term loan Rs1,875.00 Lakhs secured by 1st Paripassu charge on the entire fixed and immovable assets of the Company's Unit-I at Varadarajnagar and subservient charge on the entire movable fixed assets and current assets of the Company.

15) Term loan Rs 7,500.00 Lakhs secured by way of 1st paripassu charge on the entire movable fixed assets of Factory Unit- I at Varadarajnagar, Unit-II at Mudiampakkam (excluding cogeneration unit), exclusive charge on piece of land and building thereon, if any, situated at Pallipuram Village, Kerala, exclusive Charge on the land and building of Corporate office at Coimbatore, exclusive charge on piece of land and building thereon at Vilankurichi, Coimbatore and residual charge on the entire current assets of the Company.

16) Term loan Rs 89.56 lakhs secured by way of exclusive 1st charge on 1 No. of Machinery viz. John Deerewheel Cane located at Unit-II, Mundiampakkam.

17) Term loan Rs 7,500.00 lakhs guaranteed by the Managing Director.

18) Term Loans guaranteed by others is Nil.

19) Period and amount of continuing default in respect of the aforesaid loans is Nil.

SECURITY DETAILS FOR THE SHORT TERM LOANS

1) Working capital limit of Rs11,893.32 lakhs from consortium of bankers are secured by 1st paripassu charge on the current assets of the Company, 2nd paripassu charge on the fixed & immovable assets of Unit-I at Varadarajnagar and 4th paripassu charge on the fixed & immovable assets of sugar plant of Unit-II situated at Mundiampakkam.

2) Working capital limit of Rs 500.00 lakhs secured by 1st paripassu charge on the Current Assets of the company. The loan has not been availed during the year.

3) Short Term Loan Rs 3,000.00 lakhs guaranteed by the Managing Director.

4) Short Term Loans guaranteed by others is Nil.

5) Period and amount of default in respect of the aforesaid loans is Nil.

1) Provision towards Gratuity and superannuation schemes has been made upto date as per the demands received from Life Insurance Corporation of India and HDFC Standard Life Insurance Company Limited based on actuarial valuation. Provision for leave encashment benefit has been made for the entire amount due and payable as at the close of the year.

2) Contingent Liabilities not provided for

a) Claims against the company not acknowledged as debt:

i) Disputed interest on sales tax for the years 1995-96 to 1997-98 in respect of which stay from High Court at Chennai is obtained Rs 42.50 lakhs (Previous year: Rs 42.50 lakhs)

ii) The Commissioner of Central Excise (Appeals) has upheld the order of the Central Excise department imposing a penalty of Rs 21.92 lakhs in the matter of payment of service tax for agency fees and other charges paid towards ECB availed. The company has filed an appeal before CEGAT and the appeal is pending before the said Appellate Tribunal and hence no provision has been made.

iii) Electricity generation tax demand for Rs 248.09 lakhs has been raised in respect of captive consumption of electricity generated from cogeneration division. The same is disputed and contested in appeal. Hence not provided for.

iv) In respect of additional demand of Sales tax received for the years 2000-2001 to 2004-2005 aggregating to Rs 345.01 lakhs, no provision has been made in the accounts as the demand has been disputed before the first Appellate Authority. The amount of Rs 126.65 lakhs paid towards statutory amount deposited before filing of appeal has been included under advance sales tax.

b) Guarantees

The Company has provided a corporate guarantee of Rs 3983.21 lakhs to the Banks in respect of Term loans and cash credit facilities sanctioned to the subsidiary company, Trident Sugars Limited. (Previous year Rs 3233.60 lakhs)

3) In terms of AS-28, the company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its Fixed assets. The exercise has not revealed any impairment of assets during the year 2011-12.

4) In respect of the property at Delhi wherein the 1st and 2nd floors were acquired during the year 2006-07, the ground floor portion was taken on a long term operational lease of 20 years on a monthly rental of Rs 0.75 lakhs with option to renew for further 20 years on the same terms. The refundable interest free security deposit made and maintained in a separate escrow account with Bank for this purposes is Rs 112.50 lakhs.

5) Previous year figures have been regrouped wherever necessary to conform to current year's classification.

Mar 31, 2011

1. Estimated amount of contracts pending to be executed on capital account as on 31.03.2011 is Rs.7,452.29 lakhs (previous year : Rs.284.38 lakhs)

2. CONTINGENT LIABILITIES NOT PROVIDED FOR

a. Disputed interest on sales tax for the years 1995-96 to 1997-98 in respect of which stay from High Court at Chennai is obtained Rs.4,249,634/- (Previous year: Rs.4,249,634/-)

b. The Company has provided a corporate guarantee of Rs. 32.34 crores to the Banks in respect of Term loans and cash credit facilities sanctioned to the subsidiary company Trident Sugars Limited. (Previous year Rs.51.94 crores)

c. The Company has filed a review petition before the High Court of Judicature, Madras at Chennai in relation to the writ appeals with respect to purchase tax and the decision in the matter has been deferred by the High Court till disposal of similar issues by the Supreme Court in other cases. Hence no provision is made for other charges, if any, in this regard. The amount is indeterminate at this juncture.

d. The Commissioner of Central Excise (Appeals) has upheld the order of the Central Excise department imposing a penalty of Rs.21 lakhs in the matter of payment of service tax for agency fees and other charges paid towards ECB availed. The company has filed an appeal before CEGAT and the appeal is pending before the said Appellate Tribunal and hence no provision has been made.

e. Electricity generation tax demand for Rs. 248.09 lakhs has been raised in respect of captive consumption of electricity generated from cogeneration division. The same is disputed and contested in appeal. Hence not provided for.

f. The company has subscribed 49,980 equity shares of Rs.10/- each in Rajshree Power Private Limited (a subsidiary company), of which Rs. 2/- per share has been paid-up and the balance of Rs. 8/- per share is payable.

g. In respect of additional demand of Sales tax received for the years 2000-2001 to 2004-2005 aggregating to Rs. 345.49 lakhs, no provision has been made in the accounts as the demand has been disputed before the first Appellate Authority. The amount of Rs. 69.36 lakhs paid towards statutory amount deposited before filing of appeal has been included under advance sales tax.

3. SECURED LOANS

1) Term loan of Rs.12 Crores from State Bank India is secured by:

a) 1st paripassu charge on the fixed & immovable assets of Sugar & Cogeneration plants of Unit-III situated at Semmedu.

b) Exclusive 1st charge on 5.19 acres of land with buildings thereon situated at Vilankurichi village, Coimbatore District.

2) Term loan of Rs.30 Crores from State Bank of India is secured by 1st paripassu charge on the current assets of the Company. The loan account is fully settled and closed during the year.

3) Term loan of Rs.25 Crores from State Bank of India is secured by:

a) 1st paripassu charge on the current assets of the company

b) 1st paripassu charge on the sugar mill assets of Unit-II situated at Mundiampakkam.

4) Term loan of Rs. 51.90 Crores and Term loan of Rs. 40.83 Crores from State Bank of India are secured by:

a) Exclusive 1st charge over the fixed assets purchased / created out of the Bank finance shared among lender banks for the Distillery project at Unit-III, Semmedu.

b) 2nd charge over the sugar & cogen division assets of Unit-III at Semmedu.

5) Term loan of Rs. 90 Crores from State Bank of India is secured by:

a) Exclusive 1st Charge on Cogen receivables of Unit-II at Mundiampakkam and Unit-III at Gingee.

b) Exclusive 1st charge on the cogen assets (including immovable properties) of Unit-II at Mundiampakkam.

6) Term loan of Rs. 5 Crores from State Bank of Hyderabad is secured by:

a) 1st paripassu charge on the current assets of the Company ; and

b) 1st paripassu charge on the fixed assets of sugar plant of Unit-II at Mundiampakkam.

7) Term loan of Rs.13 Crores from State Bank of Hyderabad is secured by:

a) 1st paripassu charge on the current assets of the Company

b) 1st paripassu charge on fixed & immovable assets of Unit-I at Varadarajnagar.

8) Term loan of Rs. 20 Crores from State Bank of Hyderabad is secured by:

a) 1st paripassu charge on the current assets of the Company

b) 1st paripassu charge on fixed & immovable assets of sugar mill of Unit-II at Mundiampakkam.

9) Term loan of Rs.10 Crores from State Bank of Mysore is secured by:

a) 1st paripassu charge on the fixed & immovable assets of Sugar & Cogeneration plants of Unit-III at Semmedu.

b) 2nd paripassu charge on the fixed assets of Unit-I at Varadarajnagar.

c) 3rd paripassu charge on co-generation assets of Unit II at Mundiampakkam.

d) 4th paripassu charge on sugar mill assets of Unit II at Mundiampakkam.

10) Term loan of Rs.15 Crores from Bank of India is secured by:

a) 1st paripassu charge on Fixed & movable properties of Unit-I at Varadarajnagar.

b) Exclusive 1st charge on land and buildings of the Company at Golf Links, New Delhi.

11) Term loan of Rs.2 Crores from Bank of India is secured by 1st paripassu charge on the fixed & immovable assets of Sugar & Cogeneration plants of Unit-III at Semmedu.

12) Term loan of Rs. 7 Crores from Bank of India is secured by:

a) 1st paripassu charge on the current assets of the Company

b) 1st paripassu charge on fixed & immovable assets of sugar plant of Unit-II at Mundiampakkam.

13) Term loans aggregating to Rs. 28.40 Crores (State Bank of India Rs. 12.25 Crores, State Bank of Mysore Rs. 4.90 Crores, Bank of India Rs. 4.90 Crores, UCO Bank Rs.3.90 Crores and State Bank of Hyderabad Rs.2.45 Crores) received under the Scheme for Extending Financial Assistance to Sugar Undertakings are secured by:

a) Residual paripassu charge on the fixed assets of Unit-I at Varadarajnagar.

b) Residual paripassu charge on fixed assets of Unit-II at Mundiampakkam.

14) ECB loan of 30 Million USD equivalent to Rs.125.15 Crores is secured by:

a) 1st paripassu charge on the fixed & immovable assets of Sugar & Cogeneration plants of Unit-III at Semmedu.

b) 2nd paripassu charge on the current assets of sugar and co-generation plants of Unit-III at Semmedu, which is subservient to the 1st charge in favour of working capital lenders of Unit-III.

15) Term loan of Rs.17.49 Crores from Sugar Development Fund, Government of India is secured by way of exclusive 2nd charge on movable and immovable properties of Sugar & Cogeneration plants of Unit-II at Mundiampakkam.

16) Term loan of Rs.21.10 Crores from Sugar Development Fund, Government of India is secured by way of 1st paripassu charge on movable and immovable properties of Sugar & Cogeneration plants of Unit-III at Semmedu.

17) Short Term Cane Development Loan of Rs.4 Crores from Sugar Development Fund has been collaterally secured by issue of bank guarantee amounting to Rs.4.40 crores availed from Federal Bank Limited which is secured by creation of 2nd paripassu charge on the current assets of the Company.

18) Term loan of Rs.22 Crores from Axis Bank Limited is secured by:

a) 2nd charge on land and buildings of the Company at Golf links, New Delhi.

b) Subservient charge on the entire movable fixed assets of the company.

19) Term loan of Rs.1.57 Crores from Sundaram Finance Limited is secured by way of Exclusive 1st charge on Cane Harvester Machine at Unit-II, Mundiampakkam.

20) Working capital limit of Rs.191 Crores from consortium of bankers are secured by:

a) 1st paripassu charge on the current assets of the Company

b) 2nd paripassu charge on the fixed & immovable assets of Unit-I at Varadarajnagar.

c) 3rd paripassu charge on the fixed & immovable assets of cogeneration plant of Unit-II at Mundiampakkam.

d) 4th paripassu charge on the fixed & immovable assets of sugar plant of Unit-II at Mundiampakkam.

21) Short term financial assistance of Rs.35 Crores from Yes Bank Limited is secured by:

a) 1st paripassu charge on the entire current assets of the Company.

b) Exclusive 1st charge on 80 cents of land of the Company at Pappanaickenpalayam, Coimbatore.

8. There were no transactions entered into with Micro, Small and Medium Enterprises (MSME) during the year or in the earlier year. Accordingly, no amount is due to Micro, Small and Medium Enterprises in respect of sundry creditors. Further, no interest has been paid or is accrued and payable to MSME under the circumstances either in this year or the earlier year.

15. Provision towards Gratuity and superannuation schemes has been made upto date as per the demands received from Life Insurance Corporation of India and HDFC Standard Life Insurance Company Limited based on actuarial valuation. Provision for leave encashment benefit has been made for the entire amount due and payable as at the close of the year.

Defined Benefit Plan

The employees gratuity fund scheme managed by Life Insurance Corporation of India / HDFC Standard Life Insurance Company Limited is a defined benefit plan. The present value of obligation 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 estimates of rate of escalation in salary considered in actuarial valuation, taken into account the inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

16. Quantum of Excise Duty included in closing stock of finished goods is Rs. 41,910,823/- (Previous year : Rs. 60,097,625 /-).

17. Borrowing costs capitalized during the year is Rs. 1,795,614/- Previous year : Rs. 835,297/-). Borrowing cost included in Capital Work in progress- Rs. 10,775,604/- (Previous year Rs. 464,984/-)

18. Foreign currency loan (ECB) liability has been restated on 31.3.2011. The exchange difference arising on restatement of the above loan amounting to Rs. 3,579.26 lakhs has been capitalized during the year.

19. Building repair and maintenance includes Rs. 3,073,541/- (Previous year Rs. Nil) being the cost of renovation of the property held under Property Development Division and accordingly the closing inventory value of the immovable property is restated.

20. Interest paid on Fixed deposits include Rs. 338,270 /- (Previous year - Rs. 679,660/-) paid to Ms.Rajshree Pathy, Chairperson and Managing Director in respect of fixed deposits held by her.

21. 110,696 Nos. of Carbon Emission Reductions (CERs) were sold during the year for an value of Rs. 62,887,396/- 22. In terms of AS-28, the company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its Fixed assets. The exercise has not revealed any impairment of assets during the year 2010-11.

23. 1,100,000 Equity Shares at Rs.10/- each at a price of Rs.62/- each including a premium of Rs.52/- per share have been allotted to Ms. Rajshree Pathy, Chairperson and Managing Director on 9th December 2010 on receipt of the entire payment, on exercise of the rights attached to the share warrants. The said 1,100,000 equity shares are subject to lock-in for 3 years upto 9th December 2013.

24. In respect of the property at Delhi wherein the 1st and 2nd floors were acquired during the year 2006-07, the ground floor portion was taken on a long term operational lease of 20 years on a monthly rental of Rs.75,000/- with option to renew for further 20 years on the same terms. The refundable interest free security deposit made and maintained in a separate escrow account with Bank for this purposes is Rs.11,250,000/-.

26. Company during the year ended 31.3.2007 had been awarded a compensation of Rs.4,834,458/- by the State Government in respect of part of land and portion of building thereon acquired by them for extension of National Highway in Mundiampakkam, Villupuram District. A balance amount of Rs.1,183,051/- is due from the State Government.

27. Company during the year ended 31.3.2009 had been awarded a compensation of Rs.810,150/- by the State Government in respect of further acquisition of part of land including structures thereon acquired by them for extension of National Highway in Mundiampakkam, Villupuram District. A balance amount of Rs.563,750/- is yet due from the State Government.

28. The company entered into an out-of-court settlement by payment of Rs.25 crores on account of dispute pertaining to the Derivative transactions with Axis Bank Ltd. The same is written off in the Profit and Loss Account under extraordinary items. Consequent on such settlement, both the parties have withdrawn all actions initiated by each of them and necessary final orders have been obtained.

29. The Company has during the year fulfilled the export obligation of 4500 MTs of white sugar on account of import of raw sugar under advance license scheme.

Notes:

a. The Company has identified business segments as primary segments. The reportable business segments are based on segment results.

c. Inter Segment revenues are recognised at net realisable price as on the date of transaction and are eliminated in consolidation.

d. The Segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

34. Previous year figures have been regrouped wherever necessary to conform to current years classification. Paise are rounded off to the nearest rupee.

Mar 31, 2010

1. Estimated amount of contracts pending to be executed on capital account as on 31.03.2010 is Rs.284.38 lakhs (Previous year :Rs.45.05 lakhs)

2. CONTINGENT LIABILITIES NOT PROVIDED FOR

a. Disputed interest on sales tax for the years 1995-96 to 1997-98 in respect of which stay from High Court at Chennai is obtained Rs.4,249,634/- (Previous year: Rs.4,249,634/-)

b. The Government had fixed the SMP for the sugar season 2003-04 at Rs.730/- per ton linked to 8.5% base recovery and the same has been contested before the Honourable High Court at Chennai which had admitted the petition and stayed the notification. The disputed liability of Rs.99.57 lakhs and the additional sales tax of Rs.2.50 lakhs payable for the financial year 2004-05 has not been provided for in the accounts.

c. The Company has provided a corporate guarantee of Rs.51.94 crores to the banks in respect of Term loan and cash credit facilities sanctioned to the subsidiary company, Trident Sugars Limited. (Previous year Rs.38.82 crores).

d. The Company has filed a review petition before the High Court of Judicature, Madras at Chennai in relation to the writ appeals with respect to purchase tax and the decision in the matter has been deferred by the High Court till disposal of similar issues by the Supreme Court in other cases. Hence no provision is made for other charges, if any, in this regard. The amount is indeterminate at this juncture.

e. The Commissioner of Central Excise (Appeals) has upheld the order of the Central Excise department imposing a penalty of Rs.21 lakhs in the matter of payment of service tax for agency fees and other charges paid towards ECB availed. The company has filed an appeal before CEGAT and the appeal is pending before the said Appellate Tribunal and hence no provision has been made.

f. The company has export obligation of 4,500 tons of white sugar to be fulfilled on or before February 2012 on account of

import of raw sugar under advance license scheme.

g. Electricity generation tax demand of Rs. 248.09 lakhs has been raised in respect of captive consumption of electricity generated from cogeneration division. The same is disputed and contested in appeal. Hence not provided for.

h. The company has contracted to import 26,000 MT of raw sugar and taken forward cover of 13 million USD as on the balance sheet date.

3. SECURED LOANS

1) Term loan from State Bank India with limit of Rs. 12 Crores is secured by:

a) 1st paripassu charge on the fixed assets of Unit-Ill situated at Semmedu, Gingee Taluk, Villupuram District in the state of Tamilnadu

b) Exclusive 1st charge on 5.19 acres of land with buildings thereon situated at Vilankurichi village, Ganapathy, Coimbatore North Taluk, Coimbatore District.

2) Term loan from State Bank of India with limit of Rs. 30 Crores is secured by 1st paripassu charge on the current assets of the Company.

3) Term loan of Rs.25 Crores from State Bank of India is secured by:

a) 1 st paripassu charge on the current assets of the company

b) 1st paripassu charge on the sugar mill assets of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

4) Loan of Rs.9 Crores from State Bank of India is secured by:

a) Exclusive 1st charge on receivables from TNEB

b) 2nd paripassu charge on immovable properties and plant and machineries of Unit-I situated at Varadarajnagar, Periyakulam Taluk, Theni District in the state of Tamilnadu

c) 3rd paripassu charge on immovable properties and plant and machineries of cogeneration plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

d) 4th paripassu charge on immovable properties and plant and machineries of sugar plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

4) Term loan from State Bank of Hyderabad with limit of Rs. 5 Crores is secured by:

a) 1st paripassu charge on the current assets of the Company; and

b) 1st paripassu charge on the fixed assets of sugar plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

5) Term loan of Rs. 13 Crores from State Bank of Hyderabad is secured by:

a) 1st paripassu charge on the current assets of the Company

b) 1st paripassu charge on fixed assets of Unit-I situated at Varadarajnagar, Periyakulam Taluk, Theni District in the state of Tamilnadu

6) Term loan of Rs. 20 Crores from State Bank of Hyderabad is secured by:

a) 1st paripassu charge on the current assets of the Company

b) 1st paripassu charge on fixed assets of cogeneration plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

7) Term loan from State Bank of Mysore with limit of Rs. 10 Crores is secured by:

a) 1st paripassu charge on the fixed assets of Unit-Ill situated at Semmedu, Gingee Taluk, Villupuram District in the state of Tamilnadu

b) 2nd paripassu charge on the fixed assets of Unit-I situated at Varadarajnagar, Periyakulam Taluk, Theni District in the state of Tamilnadu

c) 3rd paripassu charge on co-generation assets of Unit II situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

d) 4th paripassu charge on sugar mill assets of Unit II situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

8) Term loan of Rs. 15 Crores from Bank of India is secured by:

a) 1st paripassu charge on Fixed & movable properties of Unit-I situated at Varadarajnagar, Periyakulam Taluk, Theni District in the state of Tamilnadu and

b) Exclusive 1 st charge on office premises (1 st & 2nd Floor) at New Delhi.

9) Term loans from Bank of India with limit of Rs. 6.60 Crores is secured by:

a) 1st paripassu charge on the block assets of the cogeneration plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

b) 3rd paripassu charge on the co-generation plant of Unit-Ill situated at Semmedu, Gingee Taluk, Villupuram District in the state of Tamilnadu

10) Term loan from Bank of India with limit of Rs. 2 Crores is secured by 1st paripassu charge on the fixed assets of Unit-Ill situated at Semmedu, Gingee Taluk, Villupuram District in the state of Tamilnadu

11) Term loan of Rs. 7 Crores from Bank of India is secured by:

a) 1 st paripassu charge on the current assets of the Company

b) 1st paripassu charge on fixed assets of sugar plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

13) Term loans aggregating to Rs. 33 Crores (State Bank of India Rs. 13 Crores, UCO Bank Rs. 10 Crores and Indian Bank Rs. 10 Crores) are secured by:

a) 1st paripassu charge on the block assets of the cogeneration plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu and

b) 2nd paripassu charge on the current assets of the Company; and

c) 3rd paripassu charge on the fixed assets of Sugar plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

12) Term loans aggregating to Rs. 28.40 Crores (State Bank of India Rs. 12.25 Crores, State Bank of Mysore Rs. 4.90 Crores, Bank of India Rs. 4.90 Crores, UCO Bank Rs. 3.90 Crores and State Bank of Hyderabad Rs. 2.45 Crores) received under the Scheme for Extending Financial Assistance to Sugar Undertakings are secured by:

a) Residual paripassu charge on the fixed assets of Unit-I situated at Varadarajnagar, Periyakulam Taluk, Theni District in the state of Tamilnadu and

b) Residual paripassu charge on fixed assets of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

13) ECB loan of 30 million USD equivalent to Rs. 125.15 Crores is secured by:

a) 1st paripassu charge on the fixed assets of Unit-Ill situated at Semmedu, Gingee Taluk, Villupuram District in the state of Tamilnadu

b) 2nd paripassu charge on the current assets of sugar and co-generation plants of Unit-Ill situated at Semmedu, Gingee Taluk, Villupuram District in the state of Tamilnadu, which is subservient to the 1st charge in favour of working capital lenders of Unit-Ill.

14) Term loan of Rs.17.49 Crores from Sugar Development Fund, Government of India is secured by way of exclusive second charge on movable and immovable properties of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu.

15) Term loan of Rs.21.10 Crores from Sugar Development Fund, Government of India is secured by way of 1st paripassu charge on movable and immovable properties of Unit-Ill situated at Semmedu, Gingee Taluk, Villupuram District in the state of Tamilnadu.

16) Working capital limits of Rs. 179.12 Crores from consortium bankers are secured by:

a) 1 st paripassu charge on the current assets of the Company

b) 2nd paripassu charge on the fixed assets of Unit-I situated at Varadarajnagar, Periyakulam Taluk, Theni District in the state of Tamilnadu

c) 3rd paripassu charge on the fixed assets of cogeneration plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

d) 4th paripassu charge on the fixed assets of sugar plant of Unit-ll situated at Mundiampakkam, Villupuram Taluk & District in the state of Tamilnadu

17) Short Term Cane Development Loan of Rs.4 Crores from Sugar Development Fund has been collaterally secured by issue of bank guarantee amounting to Rs. 4.40 crores availed from Federal Bank Limited which is secured by creation of 2nd paripassu charge on the current assets of the Company.

18) Short Term Loan of Rs.10 Crores from IDBI Bank is secured by pledge of warehouse receipts covered by raw and processed sugar.

1. No amount is due to Micro, Small and Medium Enterprises in respect of sundry creditors. No interest has been paid or to be payable to such parties. This is as per information available with the company about the status of the parties concerned.

19. Quantum of Excise Duty included in closing stock of finished goods is Rs.60,097,625 /- (Previous year: Rs. 52,672,719/-).

20. Borrowing costs capitalized during the year is Rs. 835,297/- (Previous year: Rs. 168,352,475/-). Borrowing cost included in Capital Work in progress: Rs.464,984/- (Previous year Rs.NIL)

21. Foreign currency loan (ECB) liability has been restated on 31.03.2010. The exchange difference arising on restatement of the above loan amounting to Rs. 949.61 lakhs has been capitalized during the year.

22. Exchange rate fluctuation includes an amount of Rs. 270.51 lacs, being the hedging charges paid to bank in respect of foreign currency term loan instalment payable.

23. interest receipt of Rs.Nil is credited in capital work in progress.(Previous year: Rs. 343,136/-)

24. Interest paid on Fixed deposits include Rs.679,660/- (Previous Year - Rs.648,935/-) paid to Ms.Rajshree Pathy, Chairperson and Managing Director in respect of fixed deposits held by her.

25. Interest charges is net of amount due Rs.Nil (Previous year - Rs. 10,361,589/-) from Directorate of Sugar, Government of India towards buffer stock interest subsidy claim. An amount of Rs. 249.81 lacs is due from the Government towards buffer subsidy.

26. Carbon credit sales has not been recognized during the year as the procedural formalities had not been completed by the respective authorities during the year. However, the process has been completed since the balance sheet date.

27. In terms of Accounting Standard 28, the company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its Fixed assets. The exercise has not revealed any impairment of assets during the year 2009-10.

28. In terms of special resolution passed at the Extraordinary General Meeting held on 28.05.2009, preferential issue of 1,100,000 equity shares of Rs.10/- each at a price of Rs.62/- (including premium of Rs.52/-) per share to Ms.Rajshree Pathy, Chairperson and Managing Director was approved by the shareholders. The amount of Rs. 17,050,000/- secured as initial payment within 15 days from the date of resolution has been treated as share application money. Pursuant to the same, 1,100,000 equity warrants has been allotted on 11.06.2009. The same is convertible into 1,100,000 equity shares of Rs. 10/- each within 18 months thereof.

29. In respect of the property at Delhi wherein the 1st and 2nd floors were acquired during the year 2006-07, the ground floor portion was taken on a long term operational lease of 20 years on a monthly rental of Rs.75,000/- with option to renew for further 20 years on the same terms. The refundable interest free security deposit made and maintained in a separate escrow account with Bank for this purposes is Rs. 11,250,000/-.

30. Company during the year ended 31.3.2007 had been awarded a compensation of Rs.4,834,458/- by the State Government in respect of part of land and portion of building thereon acquired by them for extension of National Highway in Mundiampakkam, Villupuram District. Abalance amount of Rs. 1,183,051/- is due from the State Government.

31. Company during the year ended 31.3.2009 had been awarded a compensation of Rs.810,150/- by the State Government in respect of further acquisition of part of land including structures thereon acquired by them for extension of National Highway in Mundiampakkam, Villupuram District. A balance amount of Rs.563,750/- is due from the State Government.

31. Company during the year ended 31.3.2010 had been awarded a compensation of Rs.691,154/- by the State Government in respect of further acquisition of part of land including structures thereon acquired by them for extension of National Highway in Mundiampakkam, Villupuram District. The surplus realized has been shown under exceptional item.

32. The company had filed a suit in the Madras High Court to declare void the derivative contract entered into with Axis Bank. The bank raised a claim of Rs.40.28 crores and also filed a petition with Debt Recovery Tribunal, Mumbai. The Company has obtained a Status Quo orderfrom the Division Bench of the Madras High Court.

The Bank had then filed a petition in the Supreme Court seeking transfer of the Companys suit from the Madras High Court to the Debt Recovery Tribunal, Mumbai. The Supreme Court in its judgement on 29th July 2009 has dismissed the banks petition seeking transfer of the case from the Madras High Court to the Debt Recovery Tribunal, Mumbai. The case will now be heard in the Madras High Court in due course. As the matter is still subjudice, no provision has been made for this amount or any part thereof in the accounts.

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