1. As per the Sanctioned Scheme of Arrangement by the High Court of
Madras dated 22/04/2010 the management has implemented all the terms of
the Scheme. SEBI has approved the Relaxation of Rule 19 (2) (b) of the
Securities Contracts (Regulation) Rules, 1957 of Resulting Companies''
during March, 2013. The Listing / Trading of Resulting Companies''
shares are under process. 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.4906.62 lakhs (P.Y. 4910.50 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 1000 sq.ft. of
land (P.Y. 1500 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 1994, to meet the requirements of
rehabilitation schemes submitted to BIFR. As per the Sanctioned Scheme
of Arrangement of Hon''ble High Court of Madras the company has
recorded a sum of Rs.3998.62 lakhs as unsecured loan due to promoter
group. The balance sum of Rs.100.20 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
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.1148.52 lakhs (Previous Year
Rs.435.49 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:
a) Electricity charges on revision
of Tariff rates for the period
1-12-82 to 31-12-87 contested by
the company, the recovery of which is
stayed by the Hon''ble High Court
b) Estimated surcharge on belated
payment above upto 700.31 672.11
c) Claim for back wages in respects of
various disputes Liability, if
any, not ascertainable
d) Income Tax demand for Asst.
Year 2008-09 19.21 19.21
e) Wealth Tax Demand for Asst.
year 1993-94 to 2010-11 2553.77 2553.77
f) Income Tax demand for Asst.
Year 2010 - 2011 11464.23 Nil
6. Other Moneys for which the
company is contingently liable
a) Claims against the company not
acknowledged as Debts 131.32 156.43
7. 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.
8. 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 31-03-2013 resulting in a Net
Deferred Tax asset. As a prudent measure, this net deferred tax asset
has not been recognized in the accounts.
9. a. The company has received wealth tax demand for the Asst. Year
2004-05 to 2010 - 2011
Rs.1060.18 lakhs against which the company has filed appeals with CWT
(A). A/Y 1993-94 to 2003-04 Rs.1493.59 lakhs against the company has
filed appeals with ITAT, Chennai. Against these demands a sum of
Rs.648.66 lakhs has been paid under protest. Considering the
company''s chance of success in appeal no provision has been made in
b. The company has received Income Tax demand for asst. year 2008 - 09
Rs.19.21 lakhs which is disputed before CIT (A). Company also received
Income Tax demand for Asst. Year 2010 - 2011 demanding a sum of
Rs.11464.23 Lakhs, additions were made on flimsy grounds, and company
has filed appeals before CIT (A). Considering the company''s chance of
success in appeal no provision has been made in the accounts.
10. 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.
Binny Mills Ltd (BML)
(iii) Key Management
Personnel M. Ethiraj
E. Shanmugam M. Nandagopal V.R. Venkataachalam Arvind Nandagopal