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.