ii) Leave encashment by the employees of the company except in the case of his or her death while in service is not allowed by the Company. Leave liability is, therefore, accounted for on cash basis.

iii) Professional Taxes and Trade License Fees are to be accounted for on cash basis.

iv) Balance Confirmation Certificates from Debtors, Creditors and Banks are awaited from the respective parties.

x) In accordance with the requirements under the Accounting Standard (AS-22), Deferred Tax

Assets (net) at the year end arising out of carry forward Business losses, carry forward of Long Term Capital Loss and unabsorbed depreciation has not been recognized in the current year in the accounts. The accounting treatment is in line with prudential accounting norms and recommendations under AS-22.

v) There is no impairment of assets. The management expects to recover amount higher than the carrying value of fixed assets.

vii) The Company has operated in one segment only during the year ended on 30th June, 2014 and hence, Segment Reporting as per AS-17 issued by the ICAI is not applicable.

ix) Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

x) Long Term Loans

a) Term Loan from Sugar Development Fund (SDF) of Rs. 1337 lakhs is secured by creating second charge on its fixed assets in favour of Central Government.

b) Cash Credit borrowing from Bank of India are secured by hypothecation of stock of sugar, stores, spares and packing material.

c) Term Loan from IDBI is secured by way of mortgage of whole of the movable properties of the company including its movable Plant & Machinery, Machinery spares, Tools & accessories and other movables, both present and future other than the movable Plant & Machinery on which the company has already created charge in favour of Bank of India (save and except book debts).

xi) Related Party Disclosure

a) Names of Related Parties:

Associate Companies: Shree Hanuman Sugar & Industries Limited

Key Managerial Personnel: Directors of the Company

b) Transaction entered into with related parties:

Shree Hanuman Sugar & Industries Ltd. During the year amounting to Rs. 177.68 lacs payable.

xii) Lease of sugar mill taken from M/s Shree Hanuman Sugar & Industries Ltd. Has been determined in the year 2005-2006 and as per the terms & conditions of the agreement entered into with the said company, all the fixed assets of the company will be acquired by the said company (erstwhile Lessor) at their gross value appearing in the books of the company as on the date of transfer, subject to the approval of the lending institutions for which they have agreed principle.

xiii) Figure's of Previous Year have been re-arranged and re-grouped, where ever considered necessary.