Balrampur Chini Mills

1.  (Note no.4 of Schedule - 22)
 
 The levy sugar price for the seasons 2004-05 to 2007-08 is yet to be
 announced by the Government of India. Pending such announcement, the
 sale of levy sugar has been accounted for at the 2003-04 seasons levy
 price.
 
 2.  (Note no. 5 of Schedule - 22)
 
 The Company has accounted for cane price for sugar season 2006-07 at
 the State Advised Price of Rs.125/- per quintal. Subsequently, the
 Honble Supreme Court of India vide its interim order dated 27th
 February, 2008, announced a price of Rs.118/- per quintal for general
 variety of sugarcane based on which all the cane dues were paid by the
 company. Pending final decision of the Honble Supreme Court, effect of
 the differential cane price has not been given in the accounts.
 
 3.  (Note no. 6 of Schedule - 22)
 
 There are no Micro, Small and Medium Enterprises, to whom the Company
 owes dues, which are outstanding for more than 45 days as at the
 Balance Sheet date. The information regarding Micro, Small and Medium
 Enterprises have been determined to the extent such parties have been
 identified on the basis of information available with the Company.
 
 4.  (Note no. 7 of Schedule - 22)
 
 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 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.
 
 5.  (Note no. 9 of Schedule - 22)
 
 a) During the year, the Company has issued and allotted 73,00,000
 Equity Shares of Re. 1/- each on preferential basis to the Promoter
 group at a premium of Rs.91/- per Share, aggregating to Rs. 6716.00
 lacs.
 
 b) The Company has also issued 1,00,00,000 Warrants convertible into
 equal number of Equity Shares of Re.l/- each at a premium of Rs.91/-
 per Share to the Promoter group and received Rs.920.00 lacs being 10%
 of the value of the Warrants as per the terms of issue.
 
 c) The above proceeds of the preferential issue have been utilised for
 general corporate purpose.
 
 6. (Note no. 12 of Schedule - 22)
 
 Excise Duty & Cess on Stock :
 
 The amount of Excise Duty & Cess on Stock shown in Schedule - 15
 represents differential Excise Duty & Cess on opening & closing stock
 of finished goods/by products.
 
 7. (Note no. 17 of Schedule - 22)
 
 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.
 
 8.  (Note no. 18 of Schedule - 22)
 
 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.4281.53 lacs (Previous year Rs.1757.09 lacs) allowable under the
 above policy have been accounted for during the year.
 
 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 revocation 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.
 
 9.  (Note no. 19 of Schedule - 22)
 
 Intangible Assets
 
 a) The unamortised amount of Share Issue Expenses Rs. 18.26 lacs and
 Rs.159.84 lacs are to be amortised equally in the next six months and 1
 year & six months respectively.
 
 b) The unamortised amount of Computer Software (Acquired) Rs.3.64 lacs
 and Rs. 0.28 lac are to be amortised equally in the next 4 years &
 three months and 4 years & seven months respectively.
 
 10.  (Note no. 20 of Schedule - 22)
 
 Employee Benefits :
 
 As per Accounting Standard - 15 Employee Benefits, the disclosure of
 Employee Benefits as defined in the Accounting Standard are as follows:
 
 The Company has with effect from 1st October, 2007 adopted Accounting
 Standard - 15, Employee Benefits notified under the Companies
 
 (Accounting Standards) Rules, 2006.
 
 In accordance with the stipulations of the said Accounting Standard,
 the Company has adjusted Rs.27.65 lacs towards the additional liability
 for employee benefits upto 30th September, 2007 against the balance of
 General Reserve as at 1st October, 2007 as permitted under the
 transitional provision in the Accounting Standard - 15.
 
 11. Previous years figures have been re-grouped / re-arranged wherever
 found necessary to make them comparable with those of the current year.