1 A. SECURITIES FOR SECURED LOANS:
a) Term Loans from IDBI Bank Limited (IDBI) ofRs 4,916.67 lacs are
secured as under:
- Term loan ofRs 3,000 lacs is secured by (i) pari passu first charge
on movable and immovable fixed assets ( both present and future ) of
unit situated at Dwarikesh Dham, village Bhagwanpur Phulwa, Tehsil
Faridpur, District Bareilly , Uttar Pradesh (ii) pari passu second
charge on the movable and immovable fixed assets of unit situated at
Dwarikesh Nagar, village Bundki and Rajpura, Post office
Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar Pradesh and (iii)
pari passu third charge on the movable and immovable fixed assets of
unit situated at Dwarikesh Puram, village Bahadarpur, Tehsil Dhampur,
District Bijnor, Uttar Pradesh.
- Term loan ofRs 1,520 lacs is secured by (i) pari passu first charge
on movable and immovable fixed assets ( both present and future ) of
unit situated at Dwarikesh Dham, village Bhagwanpur Phulwa, Tehsil
Faridpur, District Bareilly, Uttar Pradesh (ii) pari passu second
charge on the movable and immovable fixed assets of unit situated at
Dwarikesh Nagar, village Bundki and Rajpura, Post office
Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar Pradesh and (iii)
pari passu third charge on the movable and immovable fixed assets of
unit situated at Dwarikesh Puram, village Bahadarpur, Tehsil Dhampur,
District Bijnor, Uttar Pradesh.
- Term loan ofRs 396.67 lacs under the Governments Scheme for
extending Financial Assistance to Sugar Undertakings 2007 is secured by
residual pari-passu charges on movable & immovable fixed assets of (i)
UnitRsI Dwarikesh Nagar, Village Bundki and Rajpura, Post office
Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar Pradesh, (ii)
Unit-II Dwarikesh Puram, village Bahadarpur, Tehsil Dhampur, District
Bijnor, Uttar Pradesh, (iii) Unit-III Dwarikesh Dham, village
Bhagwanpur Phulwa, Tehsil Faridpur, District Bareilly, Uttar Pradesh .
b) Term loans from punjab national Bank (PNB) ofRs 21,584.67 lacs
(including term loan in foreign currency equivalent toRs 17,000 lacs)
are secured as under:
- Term loan ofRs 7,100 lacs (Rs 5,500 lacs converted in foreign currency
loan) is secured by (i) First charge on block assets of unit situated
at Dwarikesh Puram, village Bahadarpur, Tehsil Dhampur, District
Bijnor, Uttar Pradesh (present & future) byway of hypothecation of
machinery & equipment and other fixed assets and equitable mortgage on
immovable properties situated at Dwarikesh Puram, village Bahadarpur,
Tehsil Dhampur, District Bijnor, Uttar Pradesh,(ii) Second pari passu
charge on block of fixed assets of the unit situated at Dwarikesh
Nagar, village Bundki and Rajpura, Post office Medhpurasultan, Tehsil
Nagina, District. Bijnor, Uttar Pradesh and (iii) third pari passu
charge on block of fixed assets of unit situated at Dwarikesh Dham,
village Bhagwanpur Phulwa, Tehsil Faridpur, District Bareilly, Uttar
Pradesh.
- Term loan ofRs 7,200 lacs (- 5,800 lacs converted in foreign currency
loan) is secured by (i) Pari passu first charge on block of assets,
(both present and future) byway of hypothecation of machinery,
equipment & other fixed assets and equitable mortgage on immovable
properties of unit situated at Dwarikesh Dham, village Bhagwanpur
Phulwa, Tehsil Faridpur, District Bareilly, Uttar Pradesh, ii) second
pari passu charge on entire block of fixed assets of Dwarikesh Nagar,
village Bundki & Rajupura, Tehsil Nagina, District Bijnor, Uttar
Pradesh and (iii) third pari passu charge on entire block assets of
Dwarikesh Puram, village Bahadarpur, Tehsil Dhampur, District Bijnor,
Uttar Pradesh.
- Term loan ofRs 1,200 lacs (fully converted in foreign currency loan )
is secured by (i) pari passu first charge on specific immovable &
movable fixed assets by way of hypothecation of machinery, equipment &
other fixed assets and equitable mortgage on immovable properties
situated at Dwarikesh Puram, village Bahadarpur, Tehsil Dhampur,
District Bijnor, Uttar Pradesh pertaining to 24 MW Co-generation
plant,(ii) second pari passu charge on entire block of fixed assets of
Dwarikesh Nagar, village Bundki & Rajupura, Tehsil Nagina, District
Bijnor, Uttar Pradesh and (iii) third pari passut charge on block of
fixed assets of unit situated at Dwarikesh Dham, village Bhagwanpur
Phulwa, Tehsil Faridpur, District Bareilly, Uttar Pradesh.
All the term loans of PNB mentioned above are also secured by second
pari passu charge on current assets of the company.
- Term loan ofRs 4,500 lacs (fully converted to foreign currency loan)
is secured by (i) pari-passu first charge on entire block assets of
Dwarikesh Nagar unit by way of hypothecation of machinery, equipment &
other fixed assets and equitable mortgage on immovable properties
situated at Dwarikesh Nagar, Village Bundki and Rajpura, Post office
Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar Pradesh, (ii)
pari passu second charge on entire block of fixed assets of unit
situated at Dwarikesh Puram, village Bahadarpur, Tehsil Dhampur,
District Bijnor, Uttar Pradesh and (iii) pari passu second charge on
entire block of fixed assets of unit situated at at Dwarikesh Dham,
village Bhagwanpur Phulwa, Tehsil Faridpur, District Bareilly, Uttar
Pradesh.
- Term loan ofRs 1,584.67 lacs under Governments Scheme for extending
Financial Assistance to Sugar Undertakings, 2007 is secured by residual
pari-passu charges on movable & immovable fixed assets of (i) unitRsI
Dwarikesh Nagar, Village Bundki and Rajpura, Post office
Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar Pradesh, (ii)
Unit-II Dwarikesh Puram, village Bahadarpur, Tehsil Dhampur, District
Bijnor, Uttar Pradesh, (iii) Dwarikesh Dham, village Bhagwanpur Phulwa,
Tehsil Faridpur, District Bareilly, Uttar Pradesh of the Company.
c) Interest free trade tax loan ofRs 79.69 lacs (includingRs 11.10 lacs
added during the year) from Pradeshiya Industrial & Investment
Corporation of UP Limited is secured by (i) second pari-passu charge on
Companys immovable properties situated at village Bundki and Rajpura,
Post Office Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar
Pradesh and movable fixed assets including plant & machineries,
machinery spares, tools and accessories, both present and future (save
and except book debts) and (ii) second pari passu charge byway of
equitable mortgage on immovable properties situated at Dwarikesh Puram,
village Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh. the
loan amount is repayable at the end of 5 years from the respective year
of collection.
d) Term loan from Sugar Development Fund (SDF) ofRs 5,723.86 are
secured as under:
- Term loan ofRs 2,458.54 lacs is secured by (i) first pari passu
charge by way of equitable mortage on immovable properties and by way
of hypothecation on movable properties situated at Dwarikesh Dham,
village Bhagwanpur Phulwa, Tehsil Faridpur, District Bareilly, Uttar
Pradesh,
- Term loan ofRs 2,565.32 lacs is secured by (i) first pari passu
charge by way of equitable mortage on immovable properties and by way
of hypothecation on movable properties situated at Dwarikesh Puram,
village: Bhadarpur, Tehsil: Dhampur , District Bijnor, Uttar Pradesh
- Two short term loans ofRs 250 lacs each and one short term loan ofRs
200 lacs are secured by bank guarantees ofRs 275 lacs each andRs 220
lacs respectively aggregating toRs 770 lacs(Refer point no 2 (d) under
contingent liabilities).
All the term loans mentioned above at a & b are also personally
guaranteed by the Chairman & Managing Director of the Company. the
company has given counter guarantee to him to secure these personal
guarantees
e) Cash credit balances ofRs 7,426.02 lacs from Punjab National Bank
and IDBI Bank Limited are secured by (i) hypothecation of current
assets of the Company viz. stock of sugar, molasses, chemicals, stores
& spares,( Cash Credit balance ofRs 7,426.47 lacs from Punjab national
Bank additionally secured by way of pledge of stock of sugar, molasses,
chemicals , stores & spares) (ii) second charge on block assets
immovable and movable, both present and future, of Dwarikesh Nagar,
Village Bundki and Rajpura, Post office Medhpurasultan, Tehsil Nagina,
District Bijnor, Uttar Pradesh, (iii) second charges on block assets
immovable & movable, both present & future, of Dwarikesh Puram, village
Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh and (iv)
second charges on block assets immovable & movable, both present &
future, of Dwarikesh Dham, village Bhagwanpur Phulwa, Tehsil Faridpur,
District Bareilly, Uttar Pradesh.
The cash credit facilities are also personally guaranteed by the
Chairman & Managing Director of the Company. the company has given
counter guarantee to him to secure these personal guarantees.
B. SECURITIES FOR UNSECURED LOANS:
2. Dividend not provided for on cumulative preference shares-Rs
13,320,000/- (previous year-nil)
3 Additional information pursuant to Paragraphs 3 & 4 of Part II,
Schedule VI, of the Companies Act, 1956.
(A) Particulars of Capacity, Production, Stock and Turnover
* During current year receipt in foreign currency from sale of CERs Rs
12,743,414, out of which Rs 5,501,113 accrued and provided for as income
in the previous year.
Note: Figures in the bracket are for the previous year.
4. Estimated amount of contracts remaining to be executed on capital
account, net of advance of Rs 27.82 lacs (previous year nil) and not
provided for is Rs 203.70 lacs (previous year Rs 34.90 lacs).
5. Loans and Advances includeRs 2,330,519/- representing sales tax and
interest thereon paid as a matter of abundant caution under protest
under applicable Trade & Sales tax Act, based on the enquiry made on
the company by Uttar Pradesh trade tax authorities in respect of
diesel, steel and cement provided to contractors/ sugar cane
transporters during the years 1997-98 to 2000-2001.
However, the company is confident of the non-applicability of any sales
tax levy on this score as these items have been provided strictly for
the activities directly related to the manufacturing process. the issue
of diesel and other items has also not been classified as revenue
income and has always been treated as store consumption. The company
has paid the amount purely to establish its bona fide intentions and is
confident of settling the issue in its favour and does not consider it
necessary for making any provision.
6. The company has not taken any assets on finance/ operating lease.
Accordingly, Accounting Standard AS-19 on leases is not applicable. The
company has taken various office/ residential premises and office
equipments on cancelable leases which are renewable on expiry of the
lease period.
7 The company is governed by the provisions of section 115 JB of the
Income Tax Act, 1961 and provision for income tax has been made
accordingly. the company has considered MAT credit entitlement for MAT
paid for the current financial year and earlier financial years based
on virtual certainty of sufficient future taxable income available
against which the tax credit will be utilized.
The provision for Income Tax for the period is the aggregate of the
provision made for the six months ended 31st March, 2010 and the
estimated provision based on the taxable income earned for the six
months upto 30th September,2010, the ultimate liability of which will
be determined on the basis of the income for the period from 1st
April,2010 to 31st March, 2011.
Provision for wealth tax ofRs 384,778/- has been made for the
Assessment year 2010-11 as per the provisions of Wealth tax Act, 1957.
8. Deferred tax asset & liability are attributable to the following
items:
Deferred tax assets in respect of brought forward losses and
depreciation have been recognized owing to virtual certainty of
availability of future taxable income to realize such assets.
9 The Company, in compliance of the interim order passed by the
honble high Court of Allahabad (Lucknow Bench) on the 15th
november2007, has paid a price ofRs 110/- per quintal for sugar cane
purchased and accordingly accounted for the liability for sugar season
07-08. however, the high Court of Allahabad, by a subsequent order
dated 7th July2008, upheld the validity of SAP ofRs 125/- per quintal
announced by the State Government. Aggrieved by the said order, the
UPSMA filed SLP with Honble Supreme Court of India. Honble Supreme
Court, in the interim, upheld that the sugar cane purchased by the
sugar mills would continue to be paid for @Rs 110/- per quintal. In
view of the above, differential liability, if any, will be accounted as
and when the matter is finally settled. However, for seasons 2008-09
and 2009-10, the company has paid and accounted for the cane price at
SAP announced by the State Government.
10 Aggrieved by the Order of the Directorate of Sugar, Government of
India, converting Un- lifted quantity of non-levy sugar of 177,403
quintals into levy, the company filed a writ petition with the Honble
Allahabad High Court.Honble High Court upheld the Order of the
Directorate of Sugar. The company filed SLP with the Honble Supreme
Court of India and the order of the Directorate of Sugar in the interim
stands stayed. The company has obtained legal opinion and is advised
that the order of the Directorate of Sugar is in contravention of the
provisions of applicable laws and is therefore liable to be struck
down. pending disposal of the SLP, liability arising on account of the
said order, if any, has therefore not been provided.
11. a) 12% Redeemable preference Shares of- 100/- each are redeemable
at par in September 2011.
b) 8% Redeemable Cumulative preference Shares ofRs 100/- each are
redeemable at par in August 2012.
12. a) The company has made provision for gratuity and leave
encashment in the nature of defined benefit obligation on the basis of
actuarial valuation as per revised AS-15. Since the liability has not
been funded through a Trust or Insurer, there are no plan assets.
b) i) Defined Contribution Plans: employers Contribution to provident
FundRs 201.72 lacs (previous yearRs 157.48 lacs)
13. Capital Redemption Reserve represents reserve created on account
of:
a) Buy-back of Equity Shares in the year 2000-2001 in terms of
provisions of section 77A of the Companies Act, 1956.
b) Redemption of 500,000 11% preference shares ofRs 100/- each
amounting toRs 50,000,000/- in terms of section 80 of the Companies
Act, 1956.
14. Sundry creditors-others in Schedule 8 includeRs 1,073,335/-
(previous yearRs 593,796/-) on account of unpaid dividends/fixed
deposits. However, there are no amounts outstanding in respect of
unpaid dividend /fixed deposits included under sundry creditors in
Schedule 8, for more than seven years to be transferred to Investor
education and protection Fund.
15. Capital raising expenditure written off during the yearRs
3,011,128/- (previous yearRs 3,011,120/-) represents proportionate
expenses incurred in placement of GDR (net of income realized during
the course of placement).
16. Sundry Debtors/Creditors and Loans and Advances balances are
subject to confirmation and reconciliation.
17. Sundry creditorsRs others include short term loan ofRs 5,000 lacs
by IDBI Bank Limited (Previous year Nil) to farmers, wherein the
company is acting as a managing agent. Short term loan is collaterally
backed by personal guarantee of the Chairman & Managing Director of the
company.
18. There are no outstanding amount payable beyond the agreed period
to Micro, Small and Medium enterprises as required by MSMED Act, 2006
as on the Balance Sheet date to the extent such enterprises have been
identified based on information available with the company . In view of
this there is no overdue interest payable.
19. As per the Accounting Standard AS-28 Impairment of Assets, the
company has tested impairment of fixed assets to identify the
impairment loss, if any. Based on the assessment of the existing
assets, the realizable amount for all the units is higher than the
carrying values of such units. Accordingly no impairment is required to
be recognized during the year.
20. During the year Rupee term loans of Rs 17,000 lacs were converted
into foreign currency loan of USD 36,600,216.80. the above loans are
hedged by forward contracts. there are no other foreign currency
exposures.
21. A wholly owned Subsidiary Viz.Faridpur Sugars limited (FSl) was
formed on 9th February, 2010. FSl has not yet started any commercial
operations.
22. Figures for the previous year have been regrouped / reclassified,
wherever necessary.
23. Segment information for the year ended 30th September, 2010
Revenue in respect of captive power produced from Co generation plant
has been arrived at based on the rates at which the same is being
supplied to State electricity Board.
(ii) the company does not have any Secondary Business Segment since
there were no export during the year and all the manufacturing
facilities are located in India. |