1. Under the provisions of The Levy Sugar Price Equalisation Fund
Act, 1976 the excess amount collected over the notified levy sale
price pursuant to the interim stay granted by the Courts vests in the
fund. In a writ petition No: 1534/76 filed by the Company against these
provisions, the High Court of Andhra Pradesh has held that provisions
of the said Act are not applicable to the excess collections made prior
to 15-6-1972, against which the Union Government filed a civil appeal
No: 274/79 before the Supreme Court, which is pending.
While admitting the appeal, the Supreme Court granted stay of operation
of Judgement of A.P. High Court in W.P.No: 1534/76 and directed the
Company to furnish a Bank Guarantee for Rs.9.60 lakhs being the
difference in levy Sugar price for the Sugar Season 1969-70. The Bank
Guarantee was furnished on 7-12-1979 in favour of Registrar, High Court
of Andhra Pradesh. Interest, if any, payable under the said Act,
estimated at Rs. 60.93 lakhs (Rs 59.20 lakhs) has not been provided for
in the accounts pending final legal decision in the matter. However, an
amount of Rs.66.80 lakhs was appropriated during the Financial year
2008-2009 by Govt India, New Delhi, against payment of buffer stock
subsidy dues, which was protested by the company.
2. Sundry Creditors includes Rs.7.53 lakhs received from State
Trading Corporation (STC) towards damages for breach of Contract
pursuant to the orders of the Appellate Authorities/ Arbitrators.
Since, further Appeals preferred by the S.T.C. Before the higher
appellate authorities are pending, the said amount is not recognised as
revenue in the year of receipt, pending disposal of final appeal.
3. In the opinion of the management, all the amounts stated under
sundry debtors and loans and advances are recoverable at the values at
which they are stated.
4. Balances in some of the customers accounts are subject to
confirmation by and reconciliation with the said parties.
Note: For the purpose of the above details of the status of the
suppliers under the Act has been deter- mined, to the extent of and
based on information furnished by the respective parties, and has
accordingly, been relied upon by the Company and its auditors.
5. Loans and Advances in the nature of loans given to subsidiary
Hindustan Allied Chemicals Limited as per clause 32 of the listing
agreement is Rs.0.91 lakhs as on 31.3.2010. (Maximum balance
outstanding during the year is Rs.0.91 lakhs). The investment in the
Equity Shares of the company is Nos. 328760.
6. Closing stock units of Wind farm at Ramagiri and power generation
unit at Taduvai as per the books of the company and as confirmed by the
AP Genco is subject to reconciliation, to the extent of Rs.11.83 lakhs
due to certain matters pending before Honourable High Court of Andhra
Note: Where one class of goods is used in the manufacture of another,
consumption of raw-materials and sales have been arrived at after
deducting inter unit transfers. Excise Duty, if any, is adjusted in
Figures have been rounded off to the nearest thousand. Previous year
figures have been regrouped wherever necessary. Figures in brackets
are for previous year.