Terms of Issue and redemptions of Cumulative Redeemable Preference
 Shares (CRPS):
 
 Subsequent to the reduction as per the Scheme of Arrangement, the
 remaining issued CRPS and their respective redemption details are
 under:
 
 The above CRPS are allotted to the promoters, their nominees and bodies
 corporate against their unsecured loan brought into the Company to meet
 out the commitments under the sanctioned scheme of BIFR and other
 statutory liabilities and also in terms of the Scheme of Arrangement
 sanctioned by the High Court of Madras
 
 * Redemption due on 30.9.2010, 30.6.2011 & 31.1.2012 have been extended
 till 30.9.2015, 30.6.2016 & 31.1.2017 respectively Details of shares
 held by shareholders holding more than 5% of the aggregate shares of
 the Company:
 
 
 1.  As per the Sanctioned Scheme of Arrangement by the High Court of
 Madras dated 22/04/20I0 the management has implemented all the terms of
 the Scheme. The Listing / Trading of Resulting Companies Shares are
 under process and the Resulting Companiesfjapplications for relaxation
 of Rule I9 (2) (b) of the Securities Contracts (Regulation) Rules, I957
 are presently pending with SEBI. Upon completion of formalities, the
 change in Directorship and interse transfer of shares among the
 Promoters shall be complied with.
 
 2.  Revaluation Reserve is as per the Scheme of Arrangement Sanctioned
 by the High Court of Madras.  The outstanding Revaluation Reserve
 Rs.49I0.50 lakhs (PY. 49I6.32 lakhs) represents the adjusted amount of
 fixed assets (Land) revalued as per the Sanctioned Scheme effective
 from 0I.0I.20I0.
 
 As per the MOU entered into with workers during the year I500 sq.ft. of
 land (PY. 6I500 sq. ft) has been transferred / sold to the workers as
 agreed. The revaluation reserve on these sales of land has now been
 reduced from the Fixed Assets and Revaluation Reserve account.
 
 3.  Long Term Borrowings: Unsecured
 
 The company was receiving the loans from the Promoters individually and
 through their group companies since I994, to meet the requirements of
 rehabilitation schemes submitted to BIFR. As per the Sanctioned Scheme
 of Arrangement the company has recorded a sum of Rs.3892.92 lakhs as
 unsecured loan due to promoter group. The balance sum of Rs.I00.20
 lakhs has been received from promoters group are shown separately, for
 which the confirmation of balance are pending. All the loans are
 interest free and repayable on demand.
 
 4.  Binny Engineering Limited (BEL)
 
 Investment & Advances to subsidiary company - BEL
 
 The investment in subsidiary are considered to be long term in nature.
 The Management has not provided for diminution in value for the
 carrying amount as at the balance sheet date.
 
 The company has advanced a sum of Rs.435.49 lakhs (Previous Year
 Rs.288.94 lakhs) to Binny Engineering Limited for meeting their
 liabilities such as interest on PF, ESI contribution, Sales Tax etc.
 Considering the advances are recoverable in the ordinary course of
 business, the Management decided to carry these amounts at cost and no
 provision has been made.
 
 5.  Contingent Liabilities
 
 No provision is considered necessary in respect of the following
 contingent liabilities as the management is hopeful of getting relief /
 succeeding in the appeals:
 
 6.  Balances in Trade receivable, Trade payable and Loans and Advances
 are subject to confirmation/ reconciliation. However, in the opinion of
 the Management, all current assets, debtors and loans/ advances would
 in the ordinary course of business realize at the value stated.
 
 7.  a. To comply with the Accounting Standard - 22 - Accounting for
 Taxes on income, the company reviewed the deferred tax assets and
 liabilities. The timing differences relates mainly to depreciation and
 carry forward losses for the period up to 3I-03-20I2 resulting in a Net
 Deferred Tax asset. As a prudent measure, this net deferred tax asset
 has not been recognized in the accounts.
 
 b.  The company has received wealth tax demand for the Asst. Year
 2005-06, 2006-07, 2007-08, 2008 - 09, 2009-I0 & 20I0 - 20II for
 Rs.977.24 lakhs against which the company has filed appeals with CWT
 (A). Against these demands a sum of Rs.535.I3 lakhs has been paid under
 protest. Considering the company''s chance of success in appeal no
 provision has been made in the accounts.
 
 c.  The company has received Income Tax demand for asst. year 2008 Q 09
 Rs.I9.2I lakhs which is disputed before CIT (A). Considering the
 company''s chance of success in appeal no provision has been made in the
 accounts.
 
 8.  Related Party Disclosure 
 
 (a) List of Related Parties
 
 (i)  Parties where control exists
 
 Subsidiary
 
 Binny Engineering Limited (BEL)
 
 (ii) Other related Parties with whom transactions have taken place
 during the year Associates
 
 S.V Sugar Mills Ltd (SVSM)
 
 The Thirumagal Mills Ltd (TML)
 
 Mohan Breweries & Distilleries Ltd (MBDL)
 
 TCP Ltd
 
 S V Global Mill Ltd. (SVG)
 
 Binny Mills Ltd (BML)
 
 (iii) Key Management Personnel
 
 M. Ethurajan
 
 E. Shanmugam
 
 M. Nandagopal
 
 VR. Venkataachalam
 
 Arvind Nandagopal
 
 9.  Previous year figures have been regrouped wherever necessary to
 conform to current year classifications.