Terms of Issue and redemptions of Cumulative Redeemable Preference
Subsequent to the reduction as per the Scheme of Arrangement, the
remaining issued CRPS and their respective redemption details are
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
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
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
8. Related Party Disclosure
(a) List of Related Parties
(i) Parties where control exists
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)
S V Global Mill Ltd. (SVG)
Binny Mills Ltd (BML)
(iii) Key Management Personnel
9. Previous year figures have been regrouped wherever necessary to
conform to current year classifications.