| Note : (1) Cash Credit advance from Uttrakhand State Co-operative Bank
Ltd. is secured by pledge of Sugar Stock, hypothecation of store
inventory and a charge ranking 3rd in bank's favour on Land, Building,
Plant & Machinery and other movable assets forming part of fixed assets
of the Sugar the Company.
(2) Loan From Uttrakhand State Co.Operative Bank Limited (Governement
of India Soft Loan) is Secured by Residual Charge on Fixed Assets of
the Sugar Undertaking.
(3) Car loan from Punjab National Bank, is secured by hypothecation of
respective cars financed by Bank.
(4) Term loan from Uttrakhand State Co-operative Bank Ltd. is secured
by a charge on movable assets forming part of Block Assets of the
company lot extent of Rs. 5.00 crores.
I CONTINGENT LIABILITIES AND NOTES ON ACCOUNTS : (Amount in Lacs)
PARTICULARS Current Year Previous Year
30.09.2010 30.09.2009
1 Contingent Liabilities :
(a) Claims not acknowledged as debts
(Disputed) :
(i) Trade Tax / Central Sales Tax
(Excluding Interest) 436.19 658.09
(ii) Income Tax 0.00 1.37
(iii) Demand against Cane price for the
Year 1978-79 21.20 21.20
(iv) Excise duty 4.76 4.76
(b) The Company's claim for exemption
of excise duty on account of
expansion of production capacity as
per government of India notification
no.50/2003 dated 10.06.2003 is under
adjudication The Commissioner of
Central Excise Commissionerate ,
Meerut II has decided various cases up
to 30.09.2008 and raised demand for
excise duty aggregating for Rs. 2678.57
lacs along with interest due there on
and penalty aggregating to Rs.2678.57
lacs The company has filed appeals
with Hon'ble Customs, Excise and
Service tax Appellate Tribunal.
Pending final adjudication on the
matter, no provision has been made
in respect of excise duty of
Rs. 3165.47 Lacs including Rs. 150.21
Lacs for the year. 3165.47 3015.26
(Amt Deposited under protest
271.54 lacs) (PY Rs. 120.66)
(c) Penalty levied by Commissioner
of Central Excise Commissionerate -
Meerut-II 2678.57 2678.57
(d) Arrears of Preference Share's Dividend 357.02 276.76
(e) The Company has challanged the
validity of applicability of Entry
Tax Act. With 00 00
Hon'ble Uttrakhand High Court pending
decision of the Court, no liability
has been ascertained and provided for.
2. Estimated amount of Contract
remaining to be executed on capital
account not provided for Nil Nil
3. Managerial Remuneration Payment to
Whole Time Director
(i) Salary 414094.63 388296.40
(ii) Contribution to Prov. and Other Funds 36323.00 34670.00
450417.63 422966.40
4 Fees and Reimbursement of expenses to
Statutory Auditors :
(i) Audit Fees 275750.00 276471.00
(ii) Taxation and other services 99013.00 89037.00
(iii) Reimbursement of Expenses 39676.00 29646.44
414439.00 395154.44
(Rs. in Lacs) (Rs. in Lacs)
5 Details of Deferred Liabilities
Extra realisation of Levy Sugar and
Excise Duty along with accrued interest 2.86 2.86
2.86 2.86
6 Employees Benefits :
The required disclosures of employees
benefits as per Accounting
Standard-15 are given hereunder :-
(i) In respect of short term employee
benefits :
The Company has at present only the
Scheme of cumulative benefit of leave
encashment payable at the end of each
calendar year and the same have been
provided for on accrual basis.
(ii) In respect of Defined Benefit
Scheme (Based on Actuarial Valuation)
of Gratuity :
A) Change in Obligation over the year
ended 30.09.2010
Present Value of defined obligation
as on 01-10-2009 362.04 345.82
Current Service Cost 15.87 15.54
Past Service Cost 4.15 0.00
Interest Cost 27.15 25.94
Actuarial Gains/Losses -0.43 5.00
Benefits Paid -29.31 -30.26
Present Value of defined obligation
as on 30-09-2010 379.47 362.04
B) Expenses recognised during the year
2009-10
Current Service Cost 15.87 15.54
Past Service Cost 4.15 0.00
Interest Cost 27.15 25.94
Actuarial Gains/Losses -0.43 5.00
Total 46.74 46.48
C) Principal Actuarial Assumptions :
Mortality Table (LIC)
Discount Rate (per annum) 7.50% 7.50%
Rate of Escalation in Salary (per annum) 5.00% 5.00%
The estimates of rate of escalation in
salary considered in actuarial valuation,
take into account inflation, seniority,
promotion and other relevant factors.
(iii) Defined Contribution Plan
Provision for contribution to defined
contribution plan, recognised as
expense during the year are as under
Employer's Contribution to Providend Fund 62.53 56.96
Employer's Contribution to Pension Fund 1.93 1.84
7. The Company has not received information from vendors regarding
their status under the Micro, Small and Medium Enterprises Development
Act'2006 and hence disclosure relating to amounts unpaid as at the year
end togather with the interest paid/payable under this Act have not
been given.
NOTES : 1) Sugar issued for reprocess 96.0 (690.5 M.T.)
2) Reprocess loss of sugar 14.4 MT ( Previous Year 141.9 MT )
3) The actual production of sugar includes 81.6 MT ( Previous Year
548.6 MT) sugar produced out of reprocess.
4) Opening Stock of Sugar includes sugar in process 96.0(Previous Year
114.8M.T.)
5) Closing Stock of Sugar includes sugar in process 80.0 M.T. (Previous
Year 96.0 M.T. )
8. The Company has Accounted for Cane Purchases for the Sugar Season
2007-2008 at Rs.110.00 per quintal, which was paid on the basis of
Interim Order of The Hon'ble Supreme Court as against the price of
Rs.127 per quintal fixed by the Uttarkhand Government such differential
price aggregate to Rs. 622.66 Lacs. The necessary adjustments will be
made in accordance with the Final Decision in the matter.
9. There are no separate reportable segments as prescribed in
accounting standard on segment reporting issued by The Institute of
Chartered Accountant of India.
10. Opening & Closing Stock of Sugar includes 1760 Bags of Sugar
seized by Excise Department.
11. The stock of 1295 Bags of Sugar at Ludhiana Depot has been
auctioned by District Food & Supply Department, Ludhiana and the sales
proceeds are deposited with Hon'ble Punjab & Haryana High Court. In
absense of complete details the sale has been recorded at an average
sale price of Rs. 2710/- per bag. The difference if any shall be
adjusted when the relevant details are available with the Company.
12. In absence of virtual certaintity the company has not recognised
deferred tax assets in accordance with Para No.17 of the Accounting
Standard-22 issued by The Institute of Chartered Accountants of India.
13. Figures for the previous year have been regrouped / recasted
wherever considered necessary.
Signature to Schedule '1' to '17'.
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