1.  (Note no. 3 of Schedule - 23)
 
 The Company has accounted for Cane Price for the Sugar Season 2006-07
 at State Advised Price of Rs.125/- per quintal. Subsequently, the
 Honble Supreme Court vide its interim order dated 27.02.2008 announced
 the price of Rs.118/- per quintal. Accordingly, subsequent payment of
 Cane dues remaining outstanding on the date of the Order were made by
 the Company @ Rs.118/- per quintal. Pending final decision of the
 Supreme Court, the impact of differential Cane Price has not been given
 in the Accounts.
 
 2.  (Note no. 4 of Schedule - 23)
 
 There is a pari passu charge by way of hypothecation and equitable
 mortgage on the fixed assets of Kumbhi and Gularia units of the Company
 for an amount of Euro 4.50 million equivalent to Rs.2456.61 lacs
 (Previous year Rs.2456.61 lacs) in favour of BNP Paribas, India for
 securing various Swap Contracts entered into in connection with hedging
 in respect of various External Commercial Borrowings availed by the
 Company.
 
 3.  (Note no. 6 of Schedule - 23)
 
 a) Land, Building, Plant & Machinery, Railway Siding, Tubewell and
 Water Supply Machinery of Balrampur unit were revalued as at 30th June,
 1988 on net replacement value as per the report of S.R. Batliboi
 Consultants Pvt. Ltd. and the cost of respective assets aggregating to
 Rs.1200.77 lacs was substituted by the revalued amount of Rs.1920.52
 lacs and the resultant increase was credited to Revaluation Reserve.
 
 b) Land, Building and Plant & Machinery of Tulsipur unit were revalued
 as at 31st March, 1999 on net replacement value as per the report of
 Lodha & Co. and the cost of the respective assets aggregating to
 Rs.1023.85 lacs was substituted by the revalued amount of Rs.2944.93
 lacs and the resultant increase was credited to Revaluation Reserve in
 the books of erstwhile Tulsipur Sugar Company Limited.
 
 c) Land, Building and Plant & Machinery of Maizapur unit were revalued
 as at 30th September, 2008 on net replacement value as per the report
 of S.K. Ahuja & Associates and the cost of the respective assets
 aggregating to Rs.7645.46 lacs was substituted by the revalued amount
 of Rs.10546.40 lacs and the resultant increase was credited to
 Revaluation Reserve in the books of Indo Gulf Industries Limited.
 
 Note :
 
 Carried forward losses have been recognised as Deferred Tax Assets as
 per latest Income Tax assessment order / Return of Income filed by the
 Company as there is virtual certainty that such Deferred Tax Asset can
 be realised against future taxable profits in the forthcoming financial
 years.
 
 4.  (Note no. 8 of Schedule - 23) Details of Issued, Subscribed and
 Paid up Equity Share Capital of the Company:
 
 i) 15,55,39,650 Equity Shares have been issued and allotted as fully
 paid up Bonus Shares by utilisation of Securities Premium, Capital
 Redemption Reserve and capitalisation of General Reserve.
 
 ii) 2,37,55,600 Equity Shares have been issued to the members of
 erstwhile Babhnan Sugar Mills Limited pursuant to the Scheme of
 Amalgamation as fully paid up without payment received in cash.
 
 iii) 21,15,400 Equity Shares have been issued to the members of
 erstwhile Tulsipur Sugar Company Limited pursuant to the Scheme of
 Amalgamation as fully paid up without payment received in cash.
 
 iv) 44,048 Equity Shares have been issued to the members of Indo Gulf
 Industries Limited pursuant to the Rehabilitation Scheme containing the
 Scheme of Arrangement between the Company and Indo Gulf Industries
 Limited sanctioned by the Honble Board for Industrial and Financial
 Reconstruction (BIFR) vide its order dated 24.06.2010 as fully paid up
 without payment received in cash.
 
 v) Out of 2,27,66,780 Equity Shares of Rs.1/- each offered to the
 shareholders on right basis, issue of 17,270 (Previous year 17,270)
 Equity Shares has been kept in abeyance as per the direction of court.
 
 vi) 1,63,52,000 fully paid up Equity Shares of Rs.1/- each were
 allotted against Global Depository Receipts (GDRs) which have since
 been converted.
 
 vii) 42,25,350 fully paid Equity Shares have been allotted under
 Employees Stock Option Scheme.
 
 viii) 34,49,147 Equity Shares were bought back and extinguished during
 the period.
 
 ix) The Company has reserved issuance of 3,33,650 (Previous year
 33,51,600) Equity Shares of Rs.1/- each for offering to eligible
 employees of the company under Employee Stock Option Scheme.
 
 5.  (Note no. 9 of Schedule - 23)
 
 Pursuant to the resolution passed by the Board of Directors of the
 Company and in accordance with the provisions of the Companies Act,
 1956 and the Securities and Exchange Board of India (Buy Back of
 Securities) Regulations, 1998, the Company made a Public Announcement
 on February 22, 2011, to buy-back the Equity Shares of face value of
 Rs.1/- each of the Company from open market through stock exchange
 route at a price not exceeding Rs.85/-per share, aggregating to
 Rs.11000.00 lacs.
 
 The Company has bought back 46,78,678 Equity Shares as at 31st March,
 2011 at an average price of Rs.69.80 per share, utilizing a sum of
 Rs.3265.96 lacs. The amount paid towards buy-back of shares, in excess
 of the face value, has been utilised out of General Reserve. In terms
 of the provisions of Section 77A of the Companies Act, 1956 and SEBI
 (Buy Back of Securities) Regulations 1998, as at 31st March, 2011 the
 Company has extinguished 34,49,147 Equity Shares and the remaining
 12,29,531 Equity Shares have been extinguished on 13.04.2011.
 Consequently, the paid-up Equity Share capital of the Company has been
 reduced and the Company has created Capital Redemption Reserve of
 Rs.34.49 lacs towards the face value of 34,49,147 Equity Shares of
 Rs.1/- each by utilising General Reserve. The balance amount paid on
 buy- back of Equity Shares which are yet to be extinguished as on 31st
 March, 2011 has been shown by way of deduction from the Shareholders
 Fund.
 
 6.  (Note no. 10 of Schedule - 23)
 
 The Employee Stock Option Scheme (Scheme 2005) of the Company was
 formulated in the year 2005. Under the said Scheme, Options granted
 have vesting period of one year and exercise period of maximum eight
 years. During the previous year, Options covered by 1st, 2nd, 3rd and
 4th Series which remained outstanding were re-priced. The revised
 Exercise Price of Rs.45/- was approved by the Shareholders of the
 Company in the Extra-Ordinary General Meeting held on 25th May, 2009.
 
 Note : Refer Directors Report for other disclosures.
 
 7. (Note no. 11 of Schedule - 23)
 
 a) The Storage Fund for Molasses has been created to meet the cost of
 construction of Molasses Storage Tank as required under Uttar Pradesh
 Sheera Niyantran (Sansodhan) Adesh, 1974 and the said Storage Fund is
 represented by investment in the form of bank fixed deposits of
 Rs.175.05 lacs (Previous year Rs.84.55 lacs).
 
 b) Fixed Deposits pledged with Excise authorities etc. Rs.60.01 lacs
 (Previous year Rs.45.01 lacs).
 
 c) Fixed Deposits with Scheduled Banks include Rs.76.50 lacs (Previous
 year Nil) deposited with UPPCL towards security deposit.
 
 Note : None of the Directors or their relatives have any interest in
 any of the Non-Scheduled Banks.  
 
 8. (Note no. 14 of Schedule - 23)
 
 Based on the review made as at the Balance Sheet date, MAT Credit
 Entitlement to the extent of Rs.4016.18 lacs recognised in earlier
 years has been written down during the current period in accordance
 with the Guidance Note issued by the Institute of Chartered Accountants
 of India.
 
 However, based on future profitability projections, the Management is
 confident that there will be sufficient taxable profit during the
 specified periods which will enable the company to utilise the balance MAT 
 Credit Entitlement of Rs.5642.00 lacs including Rs.3754.00 lacs recognised
 during the current period.
 
 * Included in the line item Total outstanding dues of Micro and Small
 Enterprises under Schedule-12.
 
 9.  (Note no. 16 of Schedule - 23)
 
 Excess amount of Levy Sugar Price received to date for various Sugar
 Seasons as per Orders of the Honble High Court Rs.34.96 lacs (Previous
 year Rs.43.15 lacs) has not been credited to the Profit & Loss Account
 as the matter is subjudice.
 
 10.  (Note no. 17 of Schedule - 23) Disclosures in terms of Accounting
 Standard -29 on Provisions, Contingent Liabilities and Contingent
 Assets:
 
 a) Movement for Provision for Liabilities: (Rs. in Lacs)
 
 Particulars                        Duties & taxes  Others  Amount
 
 Balance as at 1st October, 2009              6.31    1.03    7.34
 
 Provided during the period                      –       –       –
 
 Amount used during the period                   –       –       –
 
 Reversed during the period                      –    0.45    0.45
 
 Balance as at 31st March, 2011               6.31    0.58    6.89 
 
 Timing of outflow/uncertainties                      Outflow on 
                                                      settlement/
                                                      crystallization
 
 b) The Contingent Liabilities & Liabilities mentioned at Sl. No. 2 & 17
 (a) respectively are dependent upon Court decision / out of Court
 settlement/disposal of appeals etc.
 
 c) No reimbursement is expected in the case of Contingent Liabilities &
 Liabilities shown respectively under Sl.No. 2 & 17 (a) above and in
 view of this, no asset has been recognised in this respect.
 
 11. (Note no. 20 of Schedule - 23) Excise Duty & Cess on Stock :
 
 The amount of Excise Duty & Cess on Stock shown in Schedule - 16
 represents differential Excise Duty & Cess on Opening & Closing Stock
 of finished goods/by products.
 
 * The Company depreciates some of the fixed assets based on estimated
 useful life that are lower than those implicit in Schedule XIV to the
 Companies Act, 1956. Accordingly, the rate of depreciation used by the
 Company in respect of these fixed assets are higher than the rate
 prescribed under Schedule XIV.
 
 Note: Re-appointment of the Managing Director, Joint Managing Director
 and Director cum CFO and their revised remuneration is subject to
 approval of the members in the ensuing Annual General Meeting.
 
 Note : 
 
 i) During the period under review, the lenders have waived the
 requirement of providing personal guarantees.
 
 ii) No Guarantee Commission has been paid to the guarantors.
 
 12.  (Note no. 24 of Schedule - 23)
 
 The Company has been granted eligibility certificate dated 23rd
 February, 2007 under New Sugar Industry Promotion Policy, 2004 of the
 Government of Uttar Pradesh. Accordingly, incentives aggregating to
 Rs.8288.68 lacs (Previous year Rs.3722.93 lacs) allowable under the
 above policy have been accounted for during the period under review.
 
 The above policy has been terminated by the Government of Uttar Pradesh
 vide order dated 4th June, 2007 wherein the Government expressed its
 intention to introduce another policy. The Company has been legally
 advised that it continues to be eligible to receive the incentives
 under the above policy. Furthermore, the Company has filed Writ
 Petition against withdrawal of the aforesaid policy which has been
 admitted by the Lucknow Bench of the Honble Allahabad High Court vide
 its Order dated 9th May, 2008, the hearing in respect of which is in
 progress.
 
 13.  (Note no. 25 of Schedule - 23) Intangible Assets
 
 The unamortised amount of Computer Software (Acquired) Rs.4.23 lacs and
 Rs.0.13 lacs are to be amortised equally in the next 1 year & nine
 months and 2 years & one month respectively.
 
 14.  (Note no. 26 of Schedule - 23) 
 
 Employee Benefits :
 
 As per Accounting Standard - 15 Employee Benefits, the disclosure of
 Employee Benefits as defined in the Accounting Standard are as follows:
 
 Defined Contribution Plan :
 
 Employee benefits in the form of Provident Fund and Labour Welfare Fund
 are considered as defined contribution plan except that Provident fund
 in respect of certain employees is contributed to a fund set up by the
 Company which is treated as defined benefit plan since the Company has
 to meet the interest shortfall.
 
 Defined Benefit Plan:
 
 Long-term employee benefits in the forms of gratuity and leave
 encashment are considered as defined benefit obligation. The present
 value of obligation is determined based on actuarial valuation using
 projected unit credit method as at the Balance Sheet date. The amount
 of defined benefits recognised in the Balance Sheet represent the
 present value of the obligation as adjusted for unrecognised past
 service cost and as reduced by the fair value of plan assets.
 
 Provident fund in respect of certain employees is contributed to a fund
 set up by the Company which is treated as a defined benefit plan since
 the Company has to meet the interest shortfall. The interest shortfall
 of Rs.23.93 lacs (Previous year Rs.6.54 lacs) at the period end is
 recognised as expense for the period.
 
 VIII. Basis used to determine the expected Rate of return on Plan
 Assets :
 
 The basis used to determine overall expected Rate of return on Plan
 Assets is based on the current portfolio of assets, investment strategy
 and market scenario. In order to protect the Capital and optimise
 returns within acceptable risk parameters, the Plan Assets are well
 diversified.
 
 c) Other disclosures :
 
 i) Basis of estimates of Rate of escalation in salary :
 
 The estimates of rate of escalation in salary, considered in Actuarial
 valuation, take into account inflation, seniority, promotion and other
 relevant factors including supply and demand in the employment market.
 The above information is certified by the actuary.
 
 ii) The Gratuity and Provident Fund Expenses have been recognised under
 Contribution to Provident Fund, Gratuity and Other Funds and Leave
 Encashment under Salaries, Wages, Bonus etc. under Schedule - 18.
 
 iii) The amount of the Present value of Obligations, fair value of Plan
 Assets, Surplus/Deficit in the plan and experience adjustment arising
 on Plan Liabilities and Plan Assets for the previous two annual periods
 are not available and therefore, not disclosed.
 
 15. (Note no. 27 of Schedule - 23)
 
 Segment information as per Accounting Standard - 17 on Segment
 Reporting :
 
 The Company has identified four primary business segments viz. Sugar,
 Distillery, Co-generation and Others. Segments have been identified and
 reported taking into account the nature of the products, the differing
 risks and returns, the organisational structure and internal business
 reporting system.
 
 a) Revenue and expenses have been identified to a segment on the basis
 of relationship to operating activities of the segment. Revenue and
 expenses which relate to enterprise as a whole and are not allocable to
 a segment on reasonable basis have been disclosed as Unallocable.
 
 b) Segment Assets and Segment Liabilities represent assets and
 liabilities of respective segment. Investments, tax related assets/
 liabilities and other assets and liabilities that cannot be allocated
 to a segment on reasonable basis have been disclosed as Unallocable.
 
 Notes :
 
 1) Transactions between segments are primarily for materials which are
 transferred at market determined prices. Common costs are apportioned
 on a reasonable basis.
 
 2) Unallocable expenses are net of unallocable income Rs.1089.65 lacs
 (Previous year Rs.130.19 lacs).
 
 3) Inter Segment Sales include Excise Duty & Cess Rs.976.32 lacs
 (Previous year Rs.586.72 lacs).
 
 4) Figures in brackets pertain to previous year.
 
 d) Information about Secondary Geographical Segments :
 
 i) The information about secondary segments has not been furnished as
 the export revenue is less than 10% of the total revenue of the
 Company.
 
 ii) The Company has common fixed assets located in India for producing
 goods for domestic and overseas markets. Therefore, the value of fixed
 assets and additions thereto can not be allocated to the geographical
 segments. Hence, the total carrying amount of segment assets and cost
 incurred during the period to acquire segment assets has not been given
 in respect of secondary segments.
 
 16. (Note no. 28 of Schedule - 23)
 
 Related party disclosures as per Accounting Standard - 18 are given
 below: a) Name of the related parties and description of relationship :
 
 i) Subsidiaries    : Indo Gulf Industries Ltd.
 
 (Control exists)     Balrampur Overseas Pvt. Ltd.
 
 ii) Associates     : VA Friendship Solar Park Private Limited
 
 (Where the Company 
 exercises 
 significant 
 influence)
 
 iii) Key Managerial 
 Personnel (KMP)    : Mr. Vivek Saraogi - Managing Director
 
                      Mrs. Meenakshi Saraogi - Joint Managing Director
 
                      Mr. K.N. Ranasaria - Whole-time Director (upto 
                      11.05.2009)
 
                      Mr. Kishor Shah - Director-cum-Chief Financial 
                      Officer
 
                      Dr. Arvind Krishna Saxena - Whole-time Director 
                      (from 01.08.2008)
 
 iv) Relatives of Key 
 Managerial Personnel :
 
 Mr. Vivek Saraogi    1. Mr. K.N.Saraogi (Father) - Chairman Emeritus
 
                      2. Mrs. Meenakshi Saraogi (Mother)
 
                      3. Mrs. Sumedha Saraogi (Wife)
 
                      4. Mr. Karan Saraogi (Son)
 
                      5. Miss Avantika Saraogi (Daughter)
 
                      6. Mrs. Stuti Dhanuka (Sister)
 
 Mrs. Meenakshi 
 Saraogi              1. Mr. K.N. Saraogi (Husband)
 
                      2. Mr. Vivek Saraogi (Son)
 
                      3. Mrs. Stuti Dhanuka (Daughter)
 
                      4. Mrs. Sumedha Saraogi (Daughter-in-Law)
 
                      5. Mr. Karan Saraogi (Grand-Son)
 
                      6. Miss Avantika Saraogi (Grand-Daughter)
 
 v) Enterprises in 
 which KMP and their  1. Meenakshi Mercantiles Ltd.
 relatives have 
 substantial 
 interest :           2. Udaipur Cotton Mills Co. Ltd.
 
                      3. Kamal Nayan Saraogi (HUF)
 
                      4. Vivek Saraogi (HUF)
 
                      5. Kishor Shah (HUF)
 
 
 # Excluding monetary value of perquisites
 
 @ Maximum amount outstanding during the period Rs. 7500.00 lacs
 (Previous year Rs.9950.00 lacs). During the period under review, an
 amount of Rs.7275.00 lacs lying as loan to Subsidiary as on the
 appointment date was adjusted towards the value of consideration in
 connection with the merger of sugar unit of Indo Gulf Industries Ltd.
 (IGIL) with the Company. The Company also paid Rs.7.50 lacs to make the
 partly paid shares as fully paid shares in terms of the Scheme
 sanctioned by BIFR.
 
 c) The transactions with related parties have been entered at an amount
 which are not materially different from those on normal commercial
 terms.
 
 d) No amount has been written back / written off during the year in
 respect of due to / from related parties except reduction in face value
 of Equity Shares of IGIL from Rs.10/- to Rs.1/- as mentioned in
 Schedule - 6 of Investments.
 
 e) The amount due from related parties are good and hence no provision
 for doubtful debts in respect of dues from such related parties is
 required except provision of Rs.283.27 lacs towards diminution in value
 of investments in shares of IGIL.
 
 f) The value of companys holding of Rs.45.95 lacs in its subsidiary
 company IGIL was adjusted with the consideration amount on merger of
 sugar unit of IGIL with the Company as mentioned in Note No.32 (c).
 
 g) Figures in brackets pertain to previous year.
 
 17. (Note no. 29 of Schedule - 23)
 
 Disclosure under clause 32 of the Listing Agreement :
 
 There are no transactions (other than loan transactions with
 subsidiaries as given in para 28 (b) (xix) (b) above) which are
 required to be disclosed under Clause 32 of the Listing Agreement with
 the Stock Exchanges where the Equity Shares of the Company are listed.
 
 18. (Note no. 32 of Schedule - 23)
 
 a) Pursuant to sanction of the Rehabilitation Scheme containing the
 Scheme of Arrangement between the Company and Indo Gulf Industries
 Limited (IGIL, a Subsidiary of the Company) by the Honble Board for
 Industrial and Financial Reconstruction (BIFR) vide its order dated
 24.06.2010, the Sugar Unit of IGIL, hereinafter referred to as the
 Demerged Undertaking, as defined in the Scheme, has been transferred
 to the Company with effect from the Appointed Date, 1st October, 2008.
 
 b) The aforesaid Scheme of Arrangement has become effective on filing
 the certified copy of the order dated 24.06.2010 passed by Honble BIFR
 with the Registrar of Companies, Delhi and also with the Registrar of
 Companies, West Bengal both on 21.07.2010. Therefore, not withstanding
 a subsequent appeal filed by one of the stake holder against the
 aforesaid order of BIFR, the Company has recorded in its books all the
 assets and liabilities pertaining to the Demerged Undertaking at values
 as appearing in the books of IGIL as on the appointed date after giving
 effect of the Scheme save and except fixed assets having gross book
 value of Rs.7645.46 lacs which have been revalued prior to the demerger
 and accordingly the fixed assets have been recorded in the books of the
 Company at the revalued amount.
 
 c) In consideration for the transfer and vesting of the Demerged
 Undertaking, the scheme provides for payment of Rs.75.00 lacs in cash
 and issue of Equity Shares worth Rs.85.15 lacs (including share
 premium) of the Company in the ratio of 1 Equity Share of Rs.1/- each
 fully paid up for every 100 Equity Shares of Rs.1/- in IGIL. However,
 Equity Shares worth Rs.45.95 lacs have not been issued in view of
 Companys holding of 53.96% in IGIL and thus Equity Shares amounting to
 Rs.39.20 lacs (including premium) have been issued to the share holders
 of IGIL.
 
 d) The loss of Maizapur sugar unit of IGIL pertaining to period 1st
 October, 2008 to 30th September, 2009 i.e. from the appointed date till
 the end of the companys previous year ended 30th September, 2009
 amounting to Rs.1248.17 lacs has also been recognised in the current
 period.
 
 19.  a) With effect from the Current accounting period, the Company has
 changed its financial year ending from 30th September to 31st March
 pursuant to the approval of Registrar of Companies, Kolkata.
 Accordingly, the current financial period is for eighteen months i.e.
 from 1st October, 2009 to 31st March 2011.
 
 b) Figures for the current period include all the assets and
 liabilities and the revenues and expenses pertaining to the Demerged
 Undertaking as mentioned herein above. The previous year figure does
 not include the figures in respect of said Demerged Undertaking.
 
 c) In view of above, the figures of the current financial period are
 not comparable with those of the previous year.
 
 20.  The previous years figures have been reworked, regrouped,
 rearranged and reclassified wherever necessary. Amounts and other
 disclosures for the preceding year are included as an integral part of
 the current period financial statements and are to be read in relation
 to the amounts and other disclosures relating to the current period.