p) Provisions, contingent liabilities and contingent asset
Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a
past event and it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation.

Provisions are discounted, if the effect of the time value of money is material, using pre-tax rates that reflects the
risks specific to the liability. When discounting is used, an increase in the provisions due to the passage of time
is recognised as finance cost. These provisions are reviewed at each Balance Sheet date and adjusted to reflect
the current best estimates.

Necessary provision for doubtful debts, claims, etc., are made if realisation of money is doubtful in the judgement
of the management.

Contingent liability

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a
present obligation that is not recognized because it is not probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot
be recognized because it cannot be measured reliably. Contingent liabilities are disclosed separately.

Show cause notices issued by various Government authorities are considered for evaluation of contingent
liabilities only when converted into demand.

Contingent assets

Where an inflow of economic benefits is probable, the Company discloses a brief description of the nature of the
contingent assets at the end of the reporting period, and, where practicable, an estimate of their financial effect.
Contingent assets are disclosed but not recognised in the financial statements.

q) Cash and cash equivalents

Cash comprises cash in hand and demand deposits with banks. Cash equivalents are short-term balances with
original maturity of less than 3 months, highly liquid investments that are readily convertible into cash, which are
subject to insignificant risk of changes in value.

r) Cash Flow Statement

Cash flows are presented using indirect method, whereby profit/ (loss) before tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments.

Bank borrowings are generally considered to be financing activities. However, where bank overdrafts which are
repayable on demand form an integral part of an entity's cash management, bank overdrafts are included as a
component of cash and cash equivalents for the purpose of Cash flow statement.

s) Earnings per share

The basic earnings per share are computed by dividing the net profit for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.

Diluted EPS is computed by dividing the net profit after tax by the weighted average number of equity shares
considered for deriving basic EPS and also weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are
determined independently for each period presented. The number of equity shares and potentially dilutive equity
shares are adjusted for bonus shares, as appropriate.

41 Operating Segments

The Company's operations predominantly relate to manufacture of Sugar, Co-generation of Power and
production of Industrial Alcohol. Other business segments reported are Distillery and Power. Sugar segment
includes molasses and other by-products. Segment Revenue, Segment Results, Segment Assets and Segment
Liabilities include the respective amounts identifiable to each of the segment as also amounts allocated on a
reasonable basis.

The expenses, which are not directly attributable to the business segment, are shown as unallocated corporate
cost. Assets and Liabilities that cannot be allocated between the segments are shown as part of unallocated
corporate assets and liabilities respectively.

Inter Segment Transfer Pricing Policy - (i) The molasses supplied to Distillery segment is based on average
market price. (ii) Power used by other segments is based on 90% of the market price.

* includes loans recalled and classified as repayable on demand in the financials. Figures in brackets represent
previous year numbers.

The Promoters and group companies have pledged 93,80,794 equity shares of the Company to the Banks/
Financial Institutions on pari-passu basis for the facilities availed by the Company including working capital
facilities. In addition, the Company has pledged 16,51,374 shares of the associates with the ICICI Bank on
exclusive basis for the ECB loan and Rupee Term Loan. Further pledge of 51,21,500 Equity Shares of Rs.
10/- each held by the Company in M/s Appu Hotels Limited to the Banks/ Financial Institutions for the Working
Capital facilities and Term Loans.

Repayment Details

The borrowings from the above banks and financial institutions have been classified by the respective lenders
as non-performing assets. All the banks and financial institutions have also issued notice calling back the loans.
Accordingly, all the outstanding loans have been reclassified as repayable on demand as required by Ind AS 1
"Presentation of Financial Statements". Also refer Note 48.

43 Financial Instruments
Capital management

The Company manages its capital to ensure that the Company will be able to continue as going concern, while
maximising the return to stakeholders through the optimisation of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual operating plans and long-term
product and other strategic investment plans. The funding requirements are met through equity and other long-
term/short-term borrowings.

For the purposes of Company's capital management, capital includes consists of net debt (borrowings as
detailed in Note 42 offset by cash and bank balances) and total equity of the Company. The Company monitors
the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of
the Company

Financial risk management objectives

The treasury function provides services to the business, co-ordinates access to domestic and international
financial markets, monitors and manages the financial risks relating to the operations through internal risk
reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including
currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge
risk exposures. The use of financial derivatives is governed by the Company's policies approved by the board
of directors, which provide written principles on foreign exchange risk, the use of financial derivatives, and
the investment of excess liquidity. The Company does not enter into or trade financial instruments, including
derivative financial instruments, for speculative purposes.

Market risk

Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result
from a change in the price of a financial instrument. The Company's activities expose it primarily to the financial
risks of changes in foreign currency exchange rates and interest rates. The Company actively manages its
currency and interest rate exposures through a centralized treasury division. The use of derivative instruments
is subject to limits and regular monitoring by appropriate levels of management.

Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange
rate fluctuations arise. The Company actively manages its currency rate exposures through a centralised treasury
division and uses natural hedging principles to mitigate the risks from such exposures. The use of derivative
instruments, if any, is subject to limits and regular monitoring by appropriate levels of management.

Disclosure of hedged and unhedged foreign currency exposure

The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities
at the end of the reporting period are as follows:

Foreign currency sensitivity analysis

Movement in the functional currencies of the various operations of the Company against major foreign currencies
may impact the Company's revenues from its operations. Any weakening of the functional currency may impact
the cost of borrowings and consequently may increase the cost of financing the Company's capital expenditures.

The following table details the Company's sensitivity movement in the foreign currencies. The foreign exchange
rate sensitivity is calculated for each currency by aggregation of the net foreign exchange rate exposure of a
currency and a simultaneous parallel foreign exchange rates shift in the foreign exchange rates of each currency
by 2%. 2% represents management's assessment of the reasonably possible change in foreign exchange rates.
The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts
their translation at the period end for a 2% change in foreign currency rates. The sensitivity analysis includes
external loans as well as loans to foreign operations within the Company where the denomination of the loan is
in a currency other than the functional currency of the lender or the borrower.

In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk
because the exposure at the end of the reporting period does not reflect the exposure during the year.

Interest rate risk management

The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest
rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate
borrowings and by the use of interest rate swap contracts. Hedging activities are evaluated regularly to align with
interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.
Further, in appropriate cases, the Company also effects changes in the borrowing arrangements to convert
floating interest rates to fixed interest rates.

Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives
and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is
prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding
for the whole year. A 25 basis point increase or decrease is used when reporting interest rate risk internally to
key management personnel and represents management's assessment of the reasonably possible change in
interest rates.

If interest rates had been 25 basis points higher/lower and all other variables were held constant, the Company's
profit for the year ended March 31, 2023 would decrease/ increase by Rs.0 (March 31, 2022 : decrease/
increase by Rs.0). This is mainly attributable to the Company's exposure to interest rates on its variable rate
borrowings.

Equity price risk

Equity price risk is related to the change in market reference price of the investments in equity securities. The
fair value of some of the Company's investments in equity instruments exposes the Company to equity price
risks. In general, these securities are not held for trading purposes.

Equity price sensitivity analysis.

The fair value of equity instruments as at March 31, 2023 and March 31, 2022 was Rs.1,464.97 lakhs and
Rs.1,465.04 lakhs respectively. A 5% change in prices of equity instruments held as at March 31, 2023 and
March 31,2022, would result in an impact of Rs.73.24 and Rs.73.24 Cash on equity, respectively.

Credit risk management

Credit risk arises when a customer or counterparty does not meet its obligations under a customer contract
or financial instrument, leading to a financial loss. The Company is exposed to credit risk from its operating
activities primarily trade receivables and from its financing/ investing activities, including deposits with banks,
mutual fund investments and foreign exchange transactions. The Company has no significant concentration of
credit risk with any counterparty.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure
is the total of the carrying amount of balances with banks, short term deposits with banks, trade receivables,
margin money and other financial assets excluding equity investments.

(a) Trade Receivables

Trade receivables are consisting of a large number of customers. The Company has credit evaluation policy for
each customer and, based on the evaluation, credit limit of each customer is defined. Wherever the Company
assesses the credit risk as high, the exposure is backed by either bank, guarantee/letter of credit or security
deposits.

The Company does not have higher concentration of credit risks to a single customer. As per simplified approach,
the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate

the risk of default in payments and makes appropriate provision at each reporting date wherever outstanding
is for longer period and involves higher risk. In respective dues from the Government, the Company has
considered them as fully recoverable and no allowance for expected credit loss is required.

(b) Investments, Derivative Instruments, Cash and Cash Equivalents and Bank Deposits

Credit Risk on cash and cash equivalents, deposits with the banks/financial institutions is generally low as the
said deposits have been made with the banks/financial institutions, who have been assigned high credit rating
by international and domestic rating agencies.

Credit Risk on Derivative Instruments is generally low as the Company enters into the Derivative Contracts with
the reputed Banks.

Investments of surplus funds are made only with approved financial institutions/ counterparty. Investments
primarily include bank deposits, investment in units of quoted mutual funds issued by high investment grade
funds etc. These bank deposits, mutual funds and counterparties have low credit risk. The Company has standard
operating procedures and investment policy for deployment of surplus liquidity, which allows investment in bank
deposits, debt securities and mutual fund schemes of debt and arbitrage categories and restricts the exposure
in equity markets.

Offsetting related disclosures

Offsetting of cash and cash equivalents to borrowings as per the consortium agreement is available only to
the bank in the event of a default. Company does not have the right to offset in case of the counter party's
bankruptcy, therefore, these disclosures are not required.

Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.
The Company invests its surplus funds in bank fixed deposit and mutual funds, which carry minimal mark to
market risks. The Company also constantly monitors funding options available in the debt and capital markets
with a view to maintaining financial flexibility.

Liquidity tables

The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities
with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of
financial liabilities based on the earliest date on which the Company can be required to pay.

44 Trade Receivables from TANGEDCO

Trade receivables includes Rs.2,800.78 Lakhs due from TANGEDCO is outstanding for more than 3 year.
The Company is following up for recovery of the same and initiated the required steps. The Company was
also initiated steps through South Indian Sugar Mills Association (SISMA) to represent to the Government of
Tamilnadu for instructing TANGEDCO to pay the dues. As required by Ind AS 109 "Financial Instruments", the
Company on a prudent basis provided for allowance for expected credit loss aggregating to INR 2,349.64 Lakhs
as of March 31, 2023.

Since these are due from Government Undertakings and are arising from contractual obligation of those
undertakings, in the opinion of the management, no further allowance for expected credit loss is considered
necessary.

45 Operating lease

The Company has entered into operating lease arrangements for certain facilities with lease term ranging from 2
years to 3 years. The leases are cancellable at the option of either party to lease and may be renewed based on
mutual agreement of the parties. Accordingly, these leases will not qualify for recognising right of use assets and
related lease liability as per Ind AS 116. The amount recognised in the statement of profit and loss as expenses
for the year is Rs. 26.74 Lakhs (Previous year Rs.43.59 Lakhs).

46 Corporate insolvency resolution process

The Company's net worth is negative and the borrowings from banks and other financial institutions have been
classified by the lenders as non-performing assets. All the banks and other financial institutions have also issued
notice calling back the loans. Considering the above facts and since the Company's One Time Settlement
("OTS") proposal is also under negotiation, as in the previous periods, the Company stopped providing interest
on the outstanding borrowings from banks and financial institutions and has not restated the foreign currency
loans after the NPA date.

However, the Hon'ble NCLT, Chennai Bench, admitted the CIRP application filed by a financial creditor of the
Company as more fully explained in Note 1 above and the Interim Resolution Professional is receiving claims
from the financial and operating creditors towards principal and interest due till the date of admission of CIRP. In
the meanwhile, the Promoter of the Company had organised and had deposited Rs. 6,453.30 lakhs (including
of Rs. 2500.00 Lakhs in the earlier year) as on date in the office account (NO LIEN Account) of Indian Bank as
stipulated by the consortium of bankers/financial institutions for the OTS settlement proposal. However, as per
the arrangement with the Promoter, the money deposited by the Promoter shall remain as the Assets of the
Promoter or his affiliates until the settlement proposal is duly sanctioned and approved by the lenders. As per
legal advice obtained by the promoters, the entire amount of Rs 6,453.30 lakhs kept in the office account of
Indian Bank NO LIEN account will be recorded as loan from the promoters' group after the withdrawal of CIRP In
case no settlement proposal gets materialised, the said money is to be refunded to the promoter/his affiliates
In the opinion of the management, in view of the OTS sought by the Company and the also due to the present
developments at Hon'ble NCLT/ NCLAT, there will be no further interest liability on the Company from the NPA
date.

Pending resolution of the above uncertainties, which depends upon the future events, the Company has prepared
the financial statements on a going concern basis and has not considered any adjustment in the carrying value
of non-financial and financial assets/ liabilities.

48 Retirement benefit plans
Defined contribution plans

In accordance with Indian law, eligible employees of the Company are entitled to receive benefits in respect
of provident fund, a defined contribution plan, in which both employees and the Company make monthly
contributions at a specified percentage of the covered employees' salary. The contributions, as specified under
the law, are made to the provident fund and pension fund of Government of India. The Company also has
superannuation plan and contributions are funded with LIC.

The total expense recognised in profit or loss of Rs. 15.67 lakhs (for the year ended March 31, 2022: Rs. 97.83
lakhs) represents contribution payable to these plans by the Company at rates specified in the rules of the plan.

Defined benefit plans

(a) Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees.
The plan provides for a lump-sum payment to vested employees at retirement, death, while in employment or
on termination of employment of an amount equivalent to 15 days salary payable for each completed year of
service. Vesting occurs upon completion of five years of service. The Company has not accounted for the liability
for gratuity benefits payable in the future based on an actuarial valuation during the current financial year and
accordingly, the related disclosure could not be presented in the financial statements.

(b) Compensated absence

The leave scheme is a final salary defined benefit plan, that provides for a lumpsum payment at the time of
separation based on scheme rules the benefits are calculated on the basis of last drawn salary and the leave
count at the time of separation and paid as lumpsum.

Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected
salary increase. The sensitivity analyses below have been determined based on reasonably possible changes
of the respective assumption occurring at the end of the reporting period, while holding all other assumptions
constant.

(vii) Sensitivity analysis

There was no change in the methods and assumptions used in preparing the sensitivity analysis from previous
year.

(viii) Reason for non-disclosure of current year information

Ind AS 19 “Employee Benefits” requires provision towards gratuity and compensated absences should be made
based on actuarial valuation. However, the Company could not obtain actuarial report and the provision for the
current year was made only on an estimated basis. Accordingly, disclosures required by Ind AS 19, in respect
of defined benefit fund and long term employee benefits could not be made.

(iv) Borrowings from banks

(a) The Company has been sanctioned working capital limit in excess of five crore rupees, in aggregate, from
banks or financial institutions on the basis of security of current assets. However, the since the account
became NPA, the Company has not filed any quarterly returns or statements with such banks or financial
institutions.

(b) The Company's account is declared as a wilful defaulter by the one of the consortium banks as per the
minutes of the consortium dated 25.6.2021. However, the company has objected vide its letter dated
27.9.2022, wherein it was mentioned that the said bank has not followed the guidelines specified in the RBI
rules which are mandatory in nature before declaring the company / directors as wilful defaulters. No formal
communication has been received from the Bank on the classification of the Company's account as wilful
defaulter. If no action is taken by the bank in reversing their stand, further legal action will be taken by the
Promoter to correct the status. Company is in negotiation for OTS from the lenders as more fully explained
in Note 46.

(v) Relationship with Struck off Companies

The Company did not have any transactions with Companies struck off under Section 248 of Companies Act,
2013 or Section 560 of Companies Act, 1956 considering the information available with the Company.

(vi) Compliance with number of layers of companies

The Company do not have any parent company and accordingly, compliance with the number of layers prescribed
under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is
not applicable for the year under consideration.

Formula adopted for above Ratios:

Current Ratio = Current Assets / (Total Current Liabilities - Security Deposits payable on Demand - Current
maturities of Long Term Debt)

Debt-Equity Ratio = Total Debt / Total Equity

Debt Service Coverage Ratio = (EBITDA - Current Tax) / (Principal Repayment Gross Interest on term
loans)

Return on Equity Ratio = Total Comprehensive Income / Average Total Equity

Inventory Turnover Ratio (Average Inventory days) = 365 / (Net Revenue / Average Inventories)

Trade receivables Turnover Ratio (Average Receivables days) = 365 / (Net Revenue / Average Trade
receivables)

Trade Payables Turnover Ratio (Average Payable days) = 365 / (Net Revenue / Average Trade payables)

Net Capital Turnover Ratio = (Inventory Turnover Ratio Trade receivables turnover ratio - Trade payables
turnover ratio)

Net Profit Ratio = Net Profit / Net Revenue

Return on Capital employed = (Total Comprehensive Income Interest) / (Average of (Equity Total Debt))
Return on Investment (Assets) = Total Comprehensive Income / Average Total Assets
Reasons for Variation if more than 25%

Current Ratio

The current liabilities have increased significantly during the year, since the Company could not repay them due
to cash crunch and very minimal operations. This resulted in the decrease of current ratio.

Inventory Turnover ratio

During the year, there was very minimal production and the sales were effected using the previous year stock
as well. Further the Company has made provision for work in progress and finished goods for slow moving and
non moving inventory. This resulted in significant decease in inventory turnover ratio.

Trade Receivables Turnover ratio

The company has made additional provisions for expected credit losses, which resulted in decrease of trade
receivables. Since the ratio is calculated on a net basis, it looks like there is a significant decrease in the trade
receivables turnover ratio.

(viii) Scheme of arrangements

There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of
the Companies Act, 2013 during the year.

(ix) Advance or loan or investment to intermediaries and receipt of funds from intermediaries

The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any
other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries)
with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.

The company has also not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

(x) Undisclosed Income

The Company do not have any transaction which are not recorded in the books of accounts that has been
surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the
years.

(xi) Details of Crypto Currency or Virtual Currency

The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence,
disclosures relating to it are not applicable.

50 The Hon'ble National Company Law Tribunal (“NCLT”), Chennai Bench, admitted the Corporate Insolvency
Resolution Process (“CIRP”) application filed by a financial creditor of the Company and appointed an Interim
Resolution Professional (“IRP”), in terms of the Insolvency and Bankruptcy Code, 2016 (“the Code”) to manage
the affairs of the Company vide order dated July 29, 2021 received by the Company on July 31, 2021. On an
appeal filed by a director of the company, the Hon'ble National Company Law Appellate Tribunal (“NCLAT”) has
directed the RP to carry out the CIRP Proceedings and the next hearing has been listed for June 5, 2023.

In view of pendency of the CIRP, and in view of suspension of the powers of the board of directors, RP is taking
on record the unaudited financial results. The RP has relied upon the assistance provided by the management
in the review of the audited financial results and the representations, clarifications and explanations provided by
the Managing Director, Chief Financial Officer, other directors, key management personnel of the Company in
reviewing the unaudited financial results.

The Company's net worth is negative and the borrowings from banks and other financial institutions have been
classified by the lenders as non-performing assets. All the banks and other financial institutions have also issued
notice calling back the loans. Considering the above facts and since the promoters' Settlement proposal is
also under negotiation, as in the previous periods, the Company stopped providing interest on the outstanding
borrowings from banks and financial institutions and has not restated the foreign currency loans after the NPA
date.

In the opinion of the management, in view of the OTS sought by the Company and the also due to the present
developments at Hon'ble NCLT/ NCLAT, there will be no further interest liability on the Company from the NPA
date.

Pending resolution of the above uncertainties, which depends upon the future events, the Company has prepared
the financial statements on a going concern basis and has not considered any adjustment in the carrying value
of non-financial and financial assets/ liabilities.

A corporate insolvency resolution process (CIRP) and the appointment of resolution professional were admitted
in the case of one of the major investees of the Company by the Hon'ble NCLT, Chennai Bench vide its order
dated May 5, 2020. The carrying amount of the investments as at June 30, 2022 is Rs. 1,455.53 Lakhs.

The Hon'ble NCLT has passed an order approving the resolution plan submitted by one of the resolution
applicants. Aggrieved by this Order, the investee has filed an application before the Hon'ble National Company
Law Appellate Tribunal (“NCLAT”) praying for quashing the order of the Hon'ble NCLT The Hon'ble NCLAT
has set aside the resolution plan approved and ordered to recommence the CIRP process, including the
consideration of 12A application filed by the promoters of the investee company. On an appeal against the order
of the Hon'ble NCLAT, the Hon'ble Supreme Court has heard the arguments of both the sides and judgement
was delivered on May 3, 2023 directing Adjudicating Authority (NCLT) to decide on the fresh resolution plan as
submitted by the promoter approved by CoC on its 19th Meetlng.

The Promoter has recently (on October 11, 2022) also given a proposal for settling the entire dues of the CoC
members U/S 12A of the IBC code and the required funding has been arranged by way of deposits and Bank
Guarantee. The proposal has been approved by the CoC with 100% voting in favour of the proposal .As per the
promoters settelment Proposal Uls 12A of lBC, the dues of all the secured and unsecured financial creditors,
operational creditors and all other stake holders including shareholders are fully accommodated.

Accordingly, in the opinion of the management, the Company will still be able to recover the entire carrying
amount of the investments, even in the aforesaid CIRP conditions. Based on the above estimate made by the
management, no adjustment has been made in the fair value of the investments in the aforesaid investee.

51 Status of the CIRP Proceedings: Corporate Insolvency Resolution Process (CIRP) of Dharani Sugars and
Chemicals Limited (DSCL) was ordered by Hon'ble NCLT, Chennai vide orders in IA/976/2019 on July 29, 2021,
and Mr. S. Rajendran was appointed as the Interim Resolution Professional (“IRP”).

Upon appointment, IRP took control and management of DSCL and has taken efforts to keep it as a going
concern. The word “management” used elsewhere in general refers to the previous management ie., promoters
whereas after commencement of CIRP the management of the corporate debtor vests with the IRP as per
Section 17 of IBC.IRP made a public announcement on 1st August 2021, intimating commencement of CIRP
and calling upon creditors to submit their claims against DSCL. IRP collated all claims received and filed a
report constituting Committee of Creditors (CoC) on August 21, 2021 and List of Creditors was published in the
website, IBBI and reported to Stock Exchanges.

Further as per the e-voting results dated September 22, 2022 CoC approved the appointment of Mr. Mahalingam
Suresh Kumar, Insolvency Professional as Resolution Professional. The appointment was confirmed by Hon'ble
NCLT, Chennai vide orders IA/1248(CHE)/2022 in IA/976/2019 dated November 18, 2022.

On February 8, 2023 RP convened the 11th CoC meeting in which the members decided to file an appropriate
application before the Hon'ble NCLT, Chennai Bench seeking extension of CIRP period by 30 days beyond the
maximum timelines specified under Section 12 of the IBC, 2016.The case was heard by the NCLT on March 3,
2023 and was posted for further hearing on May 29, 2023.

As the decision making on the plan is very crucial taking into consideration various factors, the lenders seek
these 60 days additional timeline to decide on the options either by themselves or through NARCL suitably. RP
also informed the COC members that the chairman of the Dharani Sugars have filed a Caveat Petition, that in
case liquidation petition is filed by the RP it shall be brought to their attention.

Claims Recieved:

Pursuant to the public announcement for submission of claims, IRP has received the claims from various
stakeholders including the farmers who have submitted the claim for their dues against the supply of
sugarcane and transportation charges. Banks and financial institutions have submitted their claim including
their interest liability as on CIRP commencement date (July 29, 2021) amounts to Rs. 805,92,89,155/- while
the corporate debtor did not provide for interest after NPA date. IRP has collated the claims based on the
books of accounts of the corporate debtor and the documents submitted by the respective stakeholders, and
the same was published in the website of Corporate debtor and filed with IBBI, NCLT and Stock exchanges.

On January 17, 2023, Revised List of Creditors as on January 10, 2023 has been filed with NCLT including the
claims of One operational creditor viz., Jain Irrigation Systems Ltd, who has filed an Application before NCLT,
Chennai seeking condonation of delay of 132 days in filing their claim with the IRP for a sum of Rs. 4,55 ,09,430/-.
As on 10th January the amount claimed by creditors amount to Rs. 979,80,56,123/- and amount of claims
admitted amount to Rs. 922,66,64,911/-.

52 Status of OTS /12A Proposal: The promoter has submitted a settlement proposal U/S 12A of the IBC on
February 3, 2023 along with the required deposits and Bank Guarantee to bank of India being the applicant

creditor. However the proposal was returned without taking for discussion. The Promoter is still confident of
settling the dues U/S 12A of IBC and revive the operations of the Company.

CIRP timeline of 330 days ended on February 19, 2023 and the COC in its 11th meeting decided to seek 30 days
extension from the AA for deciding on the Resolution plan voting. The said petition has been heard on March 10,
2023 and the matter is posted for further hearing on May 29, 2023.

Further the CoC has accorded its approval for seeking extension of CIRP for an additional period of 60 days
beyond the maximum timelines specified under Section 12 of the IBC, 2016 [after considering the pending 30
days extension request]”. It is posted for hearing on May 29, 2023.

53 The Company could not carry out physical verification of property, plant and equipment during the year due
to non-availability of staff at the units. However, in the opinion of the management, there will be no material
discrepancy between the books and physical assets as at the year end and accordingly, no adjustments are
required to be considered in the financial statements.

54 Comparative figures

Previous year's figures have been reclassified/ regrouped wherever necessary to conform to the current year's
classification.

As per our report of even date attached

For SRIVATSAN & ASSOCIATES For and on behalf of the board

Chartered Accountants Dharani Sugars and Chemicals Limited

Firm Registration No. 014921S
UDIN.No.23230195BGUNMT6462

N SRIVATSAN Dr.PALANI.G. PERIASAMY M. RAMALINGAM

Partner Executive Chairman Managing Director

Membership No. 230195 DIN : 00081002 DIN : 00278025

E P SAKTHIVEL M P KALIANNAN

Company Secretary Chief Financial Officer

Place : Chennai MAHALINGAM SURESH KUMAR

Date : May 27, 2023 Interim Resolution Professional

IPR No.: IBBI/ IPA-001/IP-P00110/
2017-2018/ 10217