1 Loan from State Bank of India of Rs. 60,35,45,834/- secured against by way of Hypothecation of the current assets including Finished & Semi-finished stocks, raw materials, stores and spares of Sugar Unit of the Company of the book value of Rs. 93,69,58,214/- and also by way of Collateral Security on second pari passu charge on fixed assets including extension of Equitable Mortgage of land and building of the Company at Shamli.

The working capital loan of Rs. 20,02,20,286/- from Punjab National Bank, Shamli is secured by way of pledging of Sugar stock of the book value of Rs. 24,77,41,094/- and also by way of Collateral Security on second pari passu charge on the fixed assets including extension of Equitable Mortgage of land and building of the Company at Shamli.

The working capital loan of Rs. 30,29,22,116/- from District Co-Operative Bank, Ghaziabad is secured by way of pledging of Sugar stock of the book value of Rs. 39,92,03,446/-.

2. Parties covered under “The Micro, Small and Medium Enterprises Development Act, 2006” (MSMED Act, 2006) have been identified on the basis of intimation received by the Company from its suppliers.

Based upon the information available, the balance due to the Micro and Small Enterprises as defined under the MSMED Act, 2006 is Rs. 12.20 Lacs (Previous Year Nil). Further no interest during the year has been paid or is payable under the terms of the MSMED Act, 2006.

* There are no amounts as at the end of the year which are due and outstanding to be credited to the Investors Education and Protection Fund.

3. Fixed Deposits lodged as Security includes Rs. 18,81,89,989/- pledged with bank as security against SEFASU Loan (Previous year Rs. 17,60,00,000/-) and Rs. 1,20,01,570/- pledged with bank against Guarantee given by bank on behalf of the Company (Previous year Rs. 1,95,30,000/-)

4. Confirmation of Fixed Deposit Lodged as Securities with different government departments are awaited.

5. Salary & Wages includes Rs. 58,60,837/- paid to Managerial Personnel (Previous year Rs. 55,43,625/-).

6. Provident Fund includes Rs. 4,17,600/- for Managerial Personnel (Previous year Rs. 3,96,000/-)

2.25.3 Contribution to Provident fund, Superannuation fund and Family Pension fund charged off during the year

The Company also provides for post employment defined benefit in the form of gratuity and leave liability. The Employee’s Gratuity Scheme is managed by Life Insurance Corporation of India defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method at each Balance sheet date, which works to more by Rs.4,03,33,317/- as compared to Gratuity Scheme managed by the Life Insurance Corporation of India. The difference has been fully provided in the books of Company.

ii) In respect of labour cases in dispute, the amount of which is not ascertainable.

iii) Bank Guarantees for Rs. 1,20,01,570/- in favour of Oil Companies and Government Department (Previous year Rs. 1,95,93,000/-)

c) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 13,23,00,000/against which advances have been paid Rs. 13,23,000/- (Previous year Rs. Nil)

NOTE :- The above amount in-respect of contingent liabilities represents best estimates arrived at on the basis of available information as the actual liability cannot be predicted accurately and Company has relied upon expert legal advise against the such disputed liabilities.

7. In absence of balance confirmations from certain creditors, debtors and securities lodged included in Trade payable, other current liabilities, Long - term loans and advances, Trade Receivables, Short - term loans and advances and Other current assets the Auditors have relied upon the figures appearing in the books of the Company. No provision of doubtful debts amounting to Rs. 1,50,37,693/- appearing under the head, other current assets have been made.

8. Income Tax assessments (regular u/s 143(3)) have been completed up to the Accounting year 2012-2013 ( Assessment Year 2013-2014). The Company has gone in appeal against tax demand certain assessment orders. The Company has been legally advised that in view of expected reliefs, no further provision for income tax liability is required.

9. Like previous year the closing stock of sugar has been valued at “Lower of cost and net realizable value”. This year Cost price of sugar is lower than the prevailing Market price at the close of the year. Till last year, interest expense was never treated as cost component while calculating cost of production of sugar, whereas the Company has this year changed, the method of arriving at cost of production of sugar and have loaded interest paid/accrued on loans (cash credit accounts), as part of the cost of production of sugar. This change in policy (treatment of interest expense) has resulted in higher valuation of closing stocks of sugar. Had there been no change in treatment of said interest while arriving at “cost of production of sugar”, the closing stock would have been lower by Rs. 2,45,03,240/-, and consequently profit for the year would have been lower to that extent.

10. The Company has reviewed impairment of assets of the Company to identify the impairment loss, if any. The review has not revealed any material impairment of assets. However, impairment loss determined and recognized in accordance with the Accounting Standard - 28 issued by the Institute of Chartered Accountants of India.

11. The Sahakari Ganna Vikas Samitti Limited, Shamli had claimed interest on late payment of cane dues pursuance to U.P. State Government Press release dated 12th November, 2014 and Order No. 2970 - Cd/46-3-14(48) 98-99 dated 24.12.2014. The Company has not provided towards this liability for the current year amounting to Rs. 15,33,14,560/- and has also reversed Rs. 1,92,20,628/- provided last year on this account. This decision was taken by the Company, based on the representation made by U.P. Sugar Mills Association for waiver of this liability and Association is expecting positive result, as the State Government had agreed to waive this interest in certain earlier years. However, on account of this decision accounts are not maintained on accrual basis to the extent of Rs. 17,25,35,188/-.

12. On account of change in accounting policy in respect of incorporating closing stock of Bagasse at the end of the year has resulted in increase in profit for the year to the extent of Rs. 1,06,61,786/-.

13. The Central Govt. Ministry of Law & Justice, have issued Notification No.6/2016 dated 1.1.2016 regarding payment of bonus (Amendment Act 2015) in terms of which the ceiling for payment of bonus has been revised w.e.f. 1st April, 2014. Certain High Courts have stayed the implementation of revision of Bonus from retrospective effect. ISMA has also filed writ against implementation of the order with regard to its retrospective effect from 1st April, 2014 and the matter is subjudice. Therefore the Company has provided its liability towards bonus keeping in view the effect of aforesaid notification pertaining to this year, but has not made provision for this liability for previous year.

14. The U.P. Government vide Notification No. 4/2015/620 dated 12.6.2015 has notified that the Society Commission on purchase of cane for the season 2012-13 shall be reduced to Rs. 2/- per quintal, as against earlier declaration @ 3% of FRP (Rs. 5.10 per quintal of cane purchased). As such the excess amount of Rs. 3.10 per quintal has since been got adjusted by Upper Doab Sugar Mills, Shamli from its cane price dues for the season 2014-15.

The Company had crushed sugar cane for the season 2012-13 at its then owned sugar unit at Unn, on which the aforesaid refund/adjustment of excess amount of Society Commission on purchase of cane for the season 2012-13 works to Rs. 1,60,30,339/-. The Company has sold its UNN Sugar Unit during September, 2014 to M/s Superior Food Grains Private Limited, when the entire dues up to the season 2013-14 towards Cane price including Society Commission was paid by the Company. It was agreed by M/s Superior Food Grains Private Limited, at the time of sale of UNN Unit that any refund in respect of Cane Society Commission or any other refund/benefit accruing on UNN Unit from U.P. Government to the date of transfer, shall be retained by the Company as the relevant commission was earlier paid by the Company. Based on the aforesaid mutual agreement the Company has lodged claim of Rs. 1,60,30,339/- with the Cane Society, and accordingly booked as Other Operating Revenue during the year. The matter of recovery of Rs. 1,60,30,339/- is being pursued with the Cane Societies for adjustment / recovery.

15. The Company has over the last few years incurring losses, due to which its net worth has been completely eroded. The Company has become Sick Industrial company since the financial year ended on 31.03.14 under provision of Sick Industrial Company (Special Provisions) Act, 1985 and the fact was reported to the BIFR as required under the provisions of section 15(1) of Sick Industrial Company (Special Provisions) Act, 1985 and relevant Form A was duly filed with the Registrar of BIFR, who had asked the Company, to file a revised Form A along with Balance Sheet in which assets and liability of Unn Sugar Complex are not depicted.

The revised Form A has since been submitted to BIFR on the basis of accounts of the Company for the year ended 31.03.2015. The BIFR has registered the Company under BIFR on 03.02.2016 as case no. 23/2016.

16. In view of carry forward losses, the Board have decided not to make any provision for Deferred Tax Assets for the current financial year as per Accounting Standard-22.

17. Certain previous year figures have been rearranged to make them comparable with current figures. Figures have been rounded off nearest to rupee.

NOTES:

18. Quantitative figures of Distillery products are not ascertainable, because the basic product of spirits is converted later into various strengths with water dilution.

19. Closing stock of Molasses arrived at after adjustment of wastage of 1199.10 Qtls. (Previous year 2,101 Qtls.)

20. Turnover includes inter-unit sales of Rs. 11,59,23,016/- (Previous year Rs. 14,03,09,964/-).

21.* Others includes Sale of Press Mud and Bagasse.

22. Sale of Sugar includes Nil bags of BISS (Previous year Rs. 6,445 bags)

23.Related parties’ Disclosures :

I Relationship

A Key Management Personnel : (Directors) Designation

1. Sh. Rajat Lal Managing Director

2. Sh. Vivek Viswanathan Joint Managing Director

3. Sh. Rahul Lal Executive Director B Key Management Personnel : (Other than Directors)

1. Sh. P. K. Goyal Chief Financial Officer

2. Sh. A. K. Singh Company Secretary

C Relatives of Key Management Personnel : (Directors) Relation with Key Management Personnel

1. Smt. Sudha Singhania Sister of Shri Rajat Lal

2. Smt. Poonam Lal Wife of Shri Rajat Lal

3. Miss Pooja Lal Daughter of Shri Rajat Lal

4. Smt. Radhika Viswanathan Hoon Sister of Shri Vivek Viswanathan D Relatives of Key Management Personnel : (Other than Directors)

1. Smt. Madhu Goyal Wife of Shri P. K. Goyal

2. Sh. Siddharth Goyal Son of Shri P. K. Goyal

3. Smt. Garima Mittal Daughter of Shri P. K. Goyal

4. Sh. Lakshman Singh Father of Shri A. K. Singh

5. Smt. Tara Devi Mother of Shri A. K. Singh