Mar 31, 2016
1. Secured Loan from State Bank of India of Rs. 297.00 million as detailed below is secured on a pari-passu first charges basis on Company''s Fixed Assets including Land and Building, Plant and Machinery (excluding Assets under Lease and Vehicles) situated at A.Chittur , Thirumandankudi and at Vadapathimangalam with other EPBG lenders in consortium, and exclusive second charge on the Current Assets of the Company.
2. Obligations under Finance Lease is secured by the respective Asset purchased under Finance Lease. The Loan carries interest at the rate of 15% p.a. and is repayable in 60 installments from the date of disbursement.
3. Trade Deposit from the Subsidiary company carries interest at 16% p.a. and is repayable over a period of five years viz on or before May 11, 2016.
4. Secured Loans from State Bank of India of Rs. 297.00 million is also guaranteed by the Chairman and Managing Director.
5. Secured by Export Performance Bank Guarantee (EPBG) issued by the Banks who are having first charge on Finished goods, Molasses, Consumable Stores and Spares, Receivables and on the other Current Assets of the Sugar Division on pari passu basis with other Working Capital and EPBG Lenders and pari passu first charge on the Fixed Assets of the Company (excluding Assets under lease and Vehicles) situated at A.Chittur, Thirumandankudi and at Vadapathimangalam with other EPBG Lenders in the consortium and Corporate Guarantee of Terra Energy Limited and Personal Guarantee of the Chairman and Managing Director.
6. Cash Credit from State Bank of India of Rs. 100.54 million (P.Y. Rs. 102.58 million) is secured by way of hypothecation of Current Assets viz stock of Raw materials, Semi finished goods, Finished goods , Receivables and other current assets of the Distillery division and Rs. 147.88 million (P.Y. Rs. 982.19 million) is secured by way of hypthecation of Current Assets viz. Finished Goods, Molasses, Consumable Stores, Receivables and other Current Assets of Sugar Division on pari passu first charge basis with other Working Capital and EPBG Lenders.
7. Cash Credit from other Banks of Rs. 364.28 million (P.Y. Rs. 869.79 million) are secured by way of charge on the Current Assets viz stock of Raw Materials, Semi Finished and Finished Goods, Consumable Stores and Spares and charge on Book Debts and second charge on immovable assets of the Company on pari passu basis.
8. Cash Credit to the extent of Rs. 378.88 million (P.Y. Rs. 1712.72 million) are also secured by Corporate Guarantee of the Subsidiary Company, Terra Energy Ltd.
9. Cash Credit to the extent of Rs. 248.42 million (P.Y. Rs. Nil) is also Guaranteed by the Chairman and Managing Director.
10. Cash Credit is renewable every 12 months.
11.. The Company has not received any intimation from the suppliers regarding status under the Micro, Small and
Medium Enterprises Development Act, 2006 and hence disclosure regarding
(12) Amount due and outstanding to suppliers as at the end of the accounting year,
(13) Interest paid during the year,
(14) Interest payable at the end of the accounting year and
(15) Interest accrued and unpaid at the end of the accounting year, have not been provided.
16. FINANCE LEASE
17) The Company has acquired mechanical Harvestors on lease, the fair value of which aggregates to Rs. 190.39 million (PY : Rs. 190.38 million). As per Accounting Standard-19 the Company has capitalized the said Harvestors at its fair value as the lease is in the nature of finance lease as defined in the Accounting Standard-19. Lease payments are apportioned between finance charges and outstanding liabilities.
18) The minimum lease rentals as at March 31, 2016 and the present value as at March 31, 2016 of minimum Lease payments in respect of assets acquired under finance leases are as follows:
Contingent rent recognized in the Statement of Profit and Loss in respect of Finance Lease : Rs. Nil (P.Y. : Nil).
19. The Company has given Corporate Guarantees for Rs. 8317.73 million (P.Y.: Rs. 7850.90 million) to Banks / Financial Institutions for the Term Loans, Working Capital and Guarantee facilities sanctioned to its Subsidiary and Associate Companies. The total amount outstanding in respect of such loans as on March 31, 2016 is Rs. 7348.60 million ( P.Y.: Rs. 5838.80 million).
20. Considering the seasonal nature of sugar industry and improving sugar prices, the Management is of the opinion that the Company will have adequate taxable income in the near future and there exists virtual certainty for taking benefit of MAT credit. Accordingly MAT credit have been duly recognized in these Financial Statements.
21. Pending Litigations
a) The Claim Petition filed by the Company against Railways for wrongful delivery of sugar has been disposed by the Railway Claims Tribunal, Chennai Bench in favour of the Company. Railways have filed appeal before the High Court of Judicature at Madras and the same is pending disposal.
b) In addition, the Company is subject to legal proceedings and Claims which have arisen in the ordinary course of business. The Management expects that these legal proceedings and claims when disposed, will not have any material and adverse impact on the Company''s financial position.
22. Disclosure as per Accounting Standard -15 (Revised) - Employee Benefits.
23. Defined Contribution Plans
Contribution of Rs. 11.68 million (P.Y. Rs. 11.97 million) to defined contribution plans is recognized as expense and included in the employees cost in the Statement of Profit and Loss.
24. RELATED PARTY DISCLOSURES
25) Names of the Related Parties
26. Subsidiary Company : Terra Energy Ltd
27. Associate Company : 1. Shree Ambika Sugars Ltd
28. Venkatesa Tyagarajan Private Ltd
29. Mustang Trading and Investments Pvt Ltd.
30. Key Managerial Personnel : R.V. Tyagarajan, Chairman and Managing Director
Note: Related party relationships are as identified by Management and relied upon by the Auditors
31. Transactions with Subsidiary and Associate Companies
Note :32. The Chairman & Managing Director has not been paid any remuneration. As per the terms of arrangement between Thiru Arooran sugars Ltd and Terra Energy Ltd., 158,597 MTs ( P.Y.: 150,321 MTs ) of Bagasse has been Supplied by Thiru Arooran Sugars Ltd., in exchange for 245,642 MTs ( P.Y.: 235,807 MTs ) of steam and 16,376,124 Units (P.Y.: 15,720,491 Units) of Power from Terra Energy Ltd.
Note 33. Figures in brackets represent outflows.
34. Previous year figures have been regrouped to conform to current year''s grouping.
Mar 31, 2015
1. Terms attached to Shares:
Equity Shares
The Equity Shares have a par value of Rs.10/-each. Each holder of the
Equity Share is entitled to one vote per share.
The dividend, when proposed by the Board of Directors, is subject to
approval of the Shareholders in the ensuing Annual General Meeting.
Repayment of capital on liquidation will be in proportion to the number
of Equity Shares held.
2. Secured Loans from banks of Rs.8424.59 lakhs as detailed below are
secured on a pari-passu first charges basis on company's Fixed Assets
including Land and Building, Plant and Machinery and other immovables
and movable Fixed Assets both present and furture and second charge on
pari-passu basis on Current Assets of the Company.
3. Obligations under Finance Lease is secured by the respective assest
purchased under Finance Lease. The loan carries interest at the rate of
15% p.a. and is repayable in 60 instalements from the date of
disbursement.
4. Trade Deposit from the Subsidiary company carries interest at 16%
p.a. and is repayable over a period of Five Years.
5. Secured Loans to the extent of Rs.1,687.50 lakhs as detailed below
are additionally secured by Corporate Guarantee of the Subsidiary
Company Terra Energy Ltd.
UCO Bank 1,687.50 lakhs
6. Secured Loans to the extent of Rs.7,112.09 lakhs are also guranteed
by the Chairman and Managing Director.
Forming part of the Financial Statements
7. Cash Credit and other Loans and Advances are secured by way of
charge on current assets viz., stocks of raw material, semi-finished
and finished goods, consumable stores and spares and charge on book
debts and second charge on immovable assets of the Company.The above
loan to the extent of Rs.17127.19/- lakhs are also secured by the
Corporate guarantee of subsidiary company Terra Energy Ltd. Cash credit
is renewable every 12 months.
In respect of loans granted by Banks to Shree Ambika Sugars Limited, a
company under the same management, the Company has given an undertaking
not to dispose off its equity shareholdings in Shree Ambika Sugars
Limited as long as the loans sanctioned to Shree Ambika Sugars Limited
are outstanding.
8. Bank balance include deposit of Rs. Nil ( P.Y. Rs.0.46 lakhs)
which have maturity of more than 12 months. 16. 2 Bank balance include
deposit of Rs. 82.37 Lakhs ( P.Y. Rs.86.92 Lakhs) as margin money to
banks for various facilities granted to the Company.
9. a) During the year the Company has changed the Accounting policy of
providing for depreciation on Buildings, Furniture & Fittings, Vehicles
and Other Machinery to SLM method as against WDV method followed up to
31.03.2014, Consequent to the change in the Accounting Policy, the
depreciation has been reworked from the date of asset being put to use
and the excess depreciation amounting to Rs.1177.20 lakhs has been
credited to the Profit & Loss Account.
b) Consequent to the notification of schedule II of the Companies Act,
2013 the Company based on the technical evaluation, determined the
useful life of the fixed assets and the unamortized value of the fixed
assets as at 01.04.2014 has been depreciated over the remaining useful
life. In case of assets whose life has expired by 31.03.2014, the
unamortized value has been reduced from the surplus balance as at
01.04.2014. Had depreciation been provided as per schedule XIV of the
Companies Act, 1956 and the accounting policy up to 31.03.2014, the
charge on account of depreciation would have been higher by Rs.805.89
lakhs.
Forming part of the Financial Statements
(Rs. in lakhs)
Year ended Year ended
Particulars March 31,2015 March 31,2014
10. CONTINGENT LIABILITIES IN RESPECT OF
Guarantees issued by bankers - 383.98
Other Commitments - Purchase order issued
for items such as
Raw materials, Services etc. 80.14 13.03
Disputed Income Tax demand/liabilities
not provided for 647.35 391.15
Claims against the Company for Excise
Duty and others including
Industrial disputes not acknowledged as
debt and not provided for 3,913.01 3,613.66
Disputed Purchase Tax & Sales Tax
liabilities not provided for 1,547.50 1,547.50
11. The Company has not received any intimation from the suppliers
regarding status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosure regarding
(i) Amount due and outstanding to suppliers as at the end of the
accounting year,
(ii) Interest paid during the year,
(iii) Interest payable at the end of the accounting year and
(iv) Interest accrued and unpaid at the end of the accounting year,
have not been provided.
12. FINANCE LEASE
a) The Company has acquired mechanical Harvestors on lease, the fair
value of which aggregates to Rs.1903.90 lakhs. As per Accounting
Standard-19 the Company has capitalised the said Harvestors at its fair
value as the leases are in the nature of finance lease as defined in
Accounting Standard-19. Lease Payments are appor- tioned between
finance charges and outstanding liabilities.
13. The Company has given Corporate Guarantee of Rs. 78509.00 lakhs
(P.Y. Rs. 81,009.00 lakhs) to Banks / Financial Institutions for the
Term Loans and Working Capital facilities sanctioned to its Subsidiary
and Associate Companies.
The total amount outstanding in respect of such loans as on March 31,
2015 is Rs.58,387.96 lakhs.
(P.Y. Rs.53,198.69 lakhs).
14. Pending Litigations
a) The Claim Petition filed by the Company against Railways for
wrongful delivery of Sugar has been decided by the Railway Claims
Tribunal in favour of the Company. Railways have filed appeal before
the High Court of Judicature at Madras and the same is pending
disposal.
b) In addition, the Company is subject to legal proceedings and claims
which have arisen in the ordinary course of business. The Management
does not expect that these legal proceedings and claims when disposed,
will have any material and adverse impact on the Company's financial
position.
f) In the absence of detailed information regarding Plan assets which
is funded with SBI Life Insurance Co Ltd, the composition of each major
category of plan assets, the percentage or amount for each category to
the fair value of the plan assets has not been disclosed.
g) The Company expects to contribute Rs.60.00 lakhs to Gratuity Fund in
2015-16.
h) The estimates of future salary increases, considered in actuarial
valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market.
15. RELATED PARTY DISCLOSURES
a) Names of the Related Parties
1. Subsidiary Company : Terra Energy Ltd
2. Associate Company : Shree Ambika Sugars Ltd
b) Key Managerial Personnel : R.V Tyagarajan, Chairman and Managing
Director
Note: Related party relationships are as identified by Management and
relied upon by the Auditors
Mar 31, 2014
1. SHARE CAPITAl
Terms attached to Shares:
Equity Shares
The Equity Shares have a par value of Rs.10/-each. Each holder of the
Equity Share is entitled to one vote per share.
The dividend, when proposed by the Board of Directors, is subject to
approval of the Shareholders in the ensuing Annual General Meeting.
Repayment of capital on liquidation will be in proportion to the number
of Equity Shares held.
2. LONG TERM BORROWINGS
Secured Loans from banks of Rs.6,568.84 lakhs as detailed below are
secured on a pari-passu first charge basis on company''s Fixed Assets
including Land and Building, Plant and Machinery and other immovables
and movable Fixed Assets, both present and furture and second charge on
pari-passu basis on Current Assets of the Company.
3. SHORT TERM BORROWINGS
Cash Credit facilities from Banks are secured by way of hypothecation
of Current Assets viz., stocks of raw material, semi-finished and
finished goods, consumable stores and spares and charge on book debts
and second charge on immovable assets of the Company.The above loan to
the extent of Rs.17,194.24 lakhs are also secured by the Corporate
Guarantee of subsidiary company Terra Energy Ltd. Cash credit is
renewable every 12 months.
4. NON CURRENT INVESTMENTS
Note :
In respect of loans granted by Banks to Shree Ambika Sugars Limited, a
company under the same management, the Company has given an undertaking
not to dispose off its equity shareholdings in Shree Ambika Sugars
Limited as long as the loans sanctioned to Shree Ambika Sugars Limited
are outstanding.
(Rs. in lakhs)
For the For the
Particulars year ended year ended
March 31, 2014 March 31, 2013
5. CONTINGENT LIABILITIES IN
RESPECT OF
Guarantees issued by bankers 383.98 36.70
Estimated amount of Contracts to
be executed on Capital Account and
not provided for (Net of advance paid) - 23.18
Other Commitments - Purchase order
issued for items such as Raw materials,
Services etc. 13.03 44.29
Disputed Income Tax demand/liabilities
not provided for 391.15 391.15
Claims against the Company for Excise
Duty and others including Industrial
disputes not acknowledged as debt
and not provided for 3,613.66 4,295.38
Disputed Purchase Tax & Sales Tax
liabilities not provided for 1,547.50 1,547.50
6. The Company has not received any intimation from the suppliers
regarding status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosure regarding
(i) Amount due and outstanding to suppliers as at the end of the
accounting year,
(ii) Interest paid during the year,
(iii) Interest payable at the end of the accounting year and
(iv) Interest accrued and unpaid at the end of the accounting year,
have not been provided.
7. FINANCE LEASE
The Company has acquired mechanical Harvestors on lease, the fair value
of which aggregates to Rs.1,903.90 lakhs. As per Accounting Standard-19
the Company has capitalised the said Harvestors at its fair value as
the leases are in the nature of finance lease as defined in Accounting
Standard-19. Lease Payments are apportioned between finance charges and
outstanding liabilities.
8. The Company has given Corporate Guarantee of Rs.81,009.00 lakhs
(P.Y.: Rs 61,974.00 lakhs) to Banks / Financial Institutions for the
Term Loans and Working Capital facilities sanctioned to its Subsidiary
and Associate Companies. The total amount outstanding in respect of
such loans as on March 31, 2014 is Rs. 53,198.69 lakhs. ( P.Y.:
Rs.39,547.74 lakhs).
9. Defined Contribution Plans
Contribution of Rs.116.40 lakhs to defined contribution plans is
recognized as expense and included in the employees cost in the
Statement of Profit and Loss.
9. Segment Reporting
i. The Company''s operations relate to manufacture of Sugar and Alcohol.
ii. The Company is exporting sugar apart from sale in the domestic
market. The analysis of geographical segment is demarcated into local
and exports.
iii. Inter Segment Transfer Pricing Policy: Molasses supplied to
Alcohol segment is based on market price.
10. RELATED PARTY DISCLOSURES
a) Names of the Related Parties
1. Subsidiary Company : Terra Energy Ltd
2. Associate Company : Shree Ambika Sugars Ltd
b) Key Managerial Personnel : R.V. Tyagarajan, Chairman and
Managing Director
Note: Related party relationships are as identified by Management
and relied upon by the Auditors
c) Transactions with Subsidiary and Associate Companies
Note : The Chairman & Managing Director has not been paid any
remuneration. As per the terms of arrangement between Thiru Arooran
sugars Ltd and Terra Energy Ltd., 173,093 Mts (P.Y.: 351,386 Mts) of
Bagasse has been Supplied by Thiru Arooran Sugars Ltd., in exchange for
321,585 Mts (P.Y.: 550,547 Mts) of steam and 21,438,994 Units (P.Y.:
35,383,754 Units) of Power from Terra Energy Ltd.
Mar 31, 2013
($ in lakhs)
For the 15 Months
Particulars year
ended ended
March 31, 2013 March 31, 2012
1. CONTINGENT LIABILITIES
IN RESPECT OF
Guarantees issued by Bankers 36.70 47.69
Estimated amount of Contracts to
be executed on Capital Account
and not provided for
(Net of advance paid) 23.18 845.94
Other commitments - Purchase
order issued for items such as Raw
Materials, Services etc. 44.29 210.14
Disputed Income Tax demand/liabilities
not provided for 391.15 1677.39
Claims against the Company for
Excise Duty and others including
Industrial disputes not acknowledged
as debt and not provided for 4,295.38 3,756.71
Disputed Purchase Tax & Sales Tax
liabilities not provided for 1,547.50 1,547.50
2. The Company has not received any intimation from the suppliers
regarding status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosure regarding (i)Amount due and
outstanding to suppliers as at the end of the accounting year, (ii)
Interest paid during the year, (iii)Interest payable at the end of the
accounting year and (iv) Interest accrued and unpaid at the end of the
accounting year, have not been provided.
3. FINANCE LEASE
a) The Company has acquired mechanical Harvestors on lease, the fair
value of which aggregates to Rs. 1903.90 lakhs. As per Accounting
Standard-19 the Company has capitalised the said Harvestors at its fair
value as the leases are in the nature of finance lease as defined in
Accounting Standard -19. Lease payments are apportioned between finance
charges and outstanding liabilities.
b) The minimum lease rentals as at March 31, 2013 and the present value
as at March 31, 2013 of minimum lease payments in respect of assets
acquired under finance lease are as follows.
c) Contingent rent recognised in the Statement of Profit and Loss in
respect of Finance Lease : Rs. Nil (P.Y. : Nil).
4. The Company has given Corporate Guarantee of Rs.61,974 lakhs (P.Y.:
Rs.65,732 lakhs) to Banks / Financial Institutions for the Term Loans
and Working Capital facilities sanctioned to its Subsidiary and
Associate Companies. The total amount outstanding in respect of such
loans as on March 31, 2013 is Rs.39,547.74 lakhs (P.Y.: Rs.39,775.40
lakhs).
5. RELATED PARTY DISCLOSURES
a) Names of the Related Parties
1. Subsidiary Company : Terra Energy Ltd
2. Associate Company : Shree Ambika Sugars Ltd
b) Key Managerial Personnel : R.V. Tyagarajan, Chairman and Managing
Director
Note: Related party relationships are as identified by Management and
relied upon by the Auditors
c) Transactions with Subsidiary and Associate Companies
6. Previous year figures have been regrouped wherever necessary to
conform to current year''s classification.
7. The figures for the current accounting year relate to 12 months
and to that extent are not comparable with the figures of the previous
year of 15 months.
Mar 31, 2012
1. Ffifteen months Year
ended ended
Mar. 31,2012 Dec. 31, 2010
1. Contingent liabilities in
respect of
Guarantees issued by Bankers 4,768,620 348,620
Contracts to be executed on
capital account and not
provided for 84,593,957 107,896,458
(Net of advance paid)
Disputed Income tax demand/
liabilities not provided for 167,739,191 106,611,673
Claims against the Company for
Excise Duty and others including
Industrial disputes not
acknowledged as debt and not
provided for 378,271,780 160,400,807
Disputed Purchase tax & Sales
tax liabilities not provided for 154,750,009 154,750,009
2. Managerial Remuneration
under section 198 of the
Companies Act, 1956
Sitting fees to Directors 350,000 450,000
(Managing Director has not been
paid any sitting fees or remuneration)
3. The Company has not received any intimation from the suppliers
regarding status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosure regarding (i) Amount due and
outstanding to suppliers as at the end of the accounting year, (ii)
Interest paid during the year, (iii) Interest payable at the end of the
accounting year and
(iv) Interest accrued and unpaid at the end of the accounting year,
have not been provided.
4. The Company has given Corporate Guarantee of Rs. 6573.20 million to
Banks/Financial Institutions for the Term Loans and Working Capital
facilities sanctioned to its Subsidiary and Associate companies. The
total amount outstanding in respect of such loans as on March 31, 2012
is Rs. 3977.54 million.
5. Finance Lease
a) The Company has acquired mechanical Harvestors on lease, the fair
value of which aggregates to Rs. 190.39 Million. As per Accounting
Standard -19 the Company has capitalised the said Harvestors at its
fair value as the lease is in the nature of Finance Lease as defined in
the Accounting Standard -19. Lease payments are apportioned between
finance charges and outstanding liabilities.
c) Contingent rent recognised in the Profit and Loss Account in respect
of Finance Lease : Rs. Nil (Previous Year : Nil).
6. Deferred Tax
In accordance with Accounting Standard - 22, Accounting for Taxes on
Income, issued by the Institute of Chartered Accountants of India, the
deferred tax for timing differences between the book and tax profits
for the year is accounted for using the rates and the laws that have
been enacted or subsequently enacted as of the Balance Sheet date.
Deferred tax assets arising from temporary timing differences are
recognized to the extent there is virtual certainty that the assets can
be realised in future as evidenced by the consistent past performance
rendered by all the plants of the Company and the likelihood of such
plants performing to their potential in future.
7. Previous year figures have been regrouped wherever necessary to
confirm to current year's classification.
8. The figures for the reported accounting year relate to 15 months
and to that extent are not comparable with the figures of the previous
year.
9. Since the current Financial year commenced on 1st January 2011, the
provisions of the revised Schedule VI of the Companies Act, 1956 are
not applicable. Hence the accounts have been presented in accordance
with old Schedule VI.
10. Disclosure as per Accounting Standard -15 (Revised) - Employee
Benefits.
Dec 31, 2010
Year Fififteen months
ended ended
Dec. 31, 2010 Dec. 31, 2009
1. Contingent liabilities in respect of
Guarantees issued by bankers 348,620 648,620
Contracts to be executed on capital
account and not provided for 107,896,458 21,619,485
(Net of advance paid)
Disputed Income tax demand/liabilities
not provided for 106,611,673 33,291
Claims against the Company for Excise
Duty and others including
Industrial disputes not acknowledged
as debt and not provided for 160,400,807 214,531,083
Disputed Purchase tax 6k Sales tax
liabilities not provided for 154,750,009 157,122,791
2. Managerial Remuneration under
section 198 of the Companies Act, 1956
Sitting fees to Directors 450,000 370,000
(Managing Director has not been paid any sitting fees or remuneration)
3. Cane Development expenses include cane price of Rs. 394.38 million
(Previous year Rs.557.12 million) paid over and above Fair and
Remunerative Price.
4. The Company has not received any intimation from the suppliers
regarding status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosure regarding :
a. Amount due and outstanding to suppliers as at the end of the
accounting year,
b. Interest paid during the year,
c. Interest payable at the end of the accounting year and
d. Interest accrued and unpaid at the end of the accounting year, have
not been provided.
5. The Company has given Corporate Guarantee of Rs. 7251.30 million to
Banks/Financial Institutions for the Term Loans and Working Capital
facilities sanctioned to its subsidiary and associate companies. The
total amount outstanding in respect of such loans as on December 31,
2010 is Rs. 3632.27 million.
6. Finance Lease
a) Tire Company has acquired mechanical Harvestors on lease, the fair
value of which aggregates to Rs. 60.40 Million. As per Accounting
Standard -19 the Company has capitalised the said Harvestors at their
fair value as the leases are in the nature of finance lease as defined
in Accounting Standard -19. Lease Payments are apportioned between
finance charges and outstanding liabilities.
7. Deferred Tax
In accordance with Accounting Standard - 22, Accounting for Taxes on
Income, issued by the Institute of Chartered Accountants of India, the
deferred tax for timing differences between the book and tax profits
for the year is accounted for using the rates and the laws that have
been enacted or subsequently enacted as of the Balance Sheet date.
Deferred tax assets arising from temporary timing differences are
recognized to the extent there is virtual certainty that the assets can
be realised in future as evidenced by the consistent past performance
rendered by all the plants of the Company and the likelihood of such
plants performing to their potential in future.
8. Previous year figures have been regrouped wherever necessary to
confirm to current years classification.
9. The figures for the reported accounting year relate to 12 months
and to that extent are not comparable with the figures of the previous
accounting period which is of 15 months.
11. Disclosure as per Accouting Standard -15 (Revised) - Employee
Benefits.
1. Defined Contribution Plans
Contribution of Rs.l 1.57 million to defined contribution plans is
recognized as expense and included in the employees cost in the Profit
and Loss Account.
I 3. Related Party disclosures
a) Names of the Related Parties
1. Subsidiary Company Terra Energy Ltd.,
2. Associate Company Shree Ambika Sugars Ltd.,
b) Key Managerial Personnel R.V. Tyagarajan, Chairman and Managing
Director
Note: Related party relationships are as identified by management and
relied upon by the auditors
Dec 31, 2009
Fifteen months Year
ended ended
Dec. 31,2009 Sept. 30, 2008
1.Contingent Liabilities in respect of
Guarantees issued by bankers 648,620 348,620
Contracts to be executed on capital
account and not provided for
(Net of advance paid) 21,619,485 60,953,245
Disputed Income tax demand/liabil
ities not provided for 33,291 33,291
Claims against the Company for Excise
Duty and others including
Industrial disputes not acknowledged
as debt and not provided for 214,531,083 265,262,683
Disputed Purchase tax & Sales tax
liabilities not provided for 157,122,791 157,122,791
2. Cane Development expenses include cane price of Rs. 557.12 million
paid over and above Statutory Minimum Price/Fair and Remunerative
Price.
3. The Company has not received any intimation from the suppliers
regarding status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosure regarding a) Amount due and
Outstanding to suppliers as at the end of the accounting year, b)
Interest paid during the year, c) Interest payable at the end of the
accounting year and d) Interest accrued and unpaid at the end of the
accounting year, have not been provided.
4. The Company has given Corporate Guarantee of Rs. 6351.30 million to
Banks/Financial Institutions for the Term Loans and Working Capital
facilities sanctioned to its subsidiary and associate companies. The
total amount outstanding in respect of such loans as on December 31,
2009 is Rs. 3749.83 million.
5. Deferred Tax
In accordance with Accounting Standard - 22, Accounting for Taxes on
Income, issued by the Institute of Chartered Accountants of India, the
deferred tax for timing differences between the book and tax profits
for the year is accounted for using the rates and the laws that have
been enacted or subsequently enacted as of the Balance Sheet date.
Deferred tax assets arising from temporary timing differences are
recognized to the extent there is virtual certainty that the assets can
be realised in future as evidenced by the consistent past performance
rendered by all the plants of the Company and the likelihood of such
plants performing to their potential in future.
6. Previous year figures have been regrouped wherever necessary to
confirm to current years classification.
7. The figures for the current accounting period relate to 15 months
and to the extent are not comparable with the figures of the previous
year.
8. Disclosure as per Accounting Standard - 15 (Revised) - Employee
Benefits
1. Defined Contribution plans
Contribution of Rs. 12.64 million to defined contribution plans is
recognized as expense and included in the emloyee cost in the Profit
and Loss Account.
Segment Reporting
1. The Companys operations telate to manufacture of sugat and
alcohol.
2. The Company is expotting sugat apatt from sale in the domestic
market. The analysis of geographical segment is demarcated into local
and expotts.
3. Intet segment Ttansfet Pricing Policy: Molasses supplied to Alcohol
segment is based on matket ptice.
9. Related Party disclosures
a) Names of the Related Parties
1. Subsidiary Company Terra Energy Ltd.,
2. Associate Company Shree Ambika Sugars Ltd.,
b) Key Managerial Personnel R.V. Tyagaraj an, Chairman and
Managing Director
Note: Related party relationships are as identified by management and
relied upon by the auditors
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