Dwarikesh Sugar Industries
BSE: 532610 | NSE: DWARKESH | ISIN: INE366A01033 | Sugar
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Notes to Accounts | Year End : Sep '08 |
1.a) Term Loans from IDBI Bank Limited (IDBI) of Rs. 12,826 lacs
(including term loan in foreign currency equivalent to Rs 2,500 Lacs)
are secured as under:
- Term Loan of Rs 231 Lacs is secured by (i) pari passu first charge on
movable fixed assets including movable plant & machineries, machinery
spares, tools and accessories, both present and future (save and except
book debts),situated at Dwarikesh Nagar, village Bundki and Rajupura,
Post office Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar
Pradesh, (ii) pari passu first charge by way of equitable mortgage on
immovable properties situated at Dwarikesh Nagar, village Bundki and
Rajupura, Post office Medhpurasultan, Tehsil Nagina, District Bijnor,
Uttar Pradesh and (iii) pari passu second charge by way of equitable
mortgage on immovable properties situated at Dwarikesh Puram, village
Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh.
- Term Loan of Rs 5,000 Lacs (including term loan in foreign currency
equivalent to Rs 2,500 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 Rajupura, 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 of Rs 1,600 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 Rajupura, 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 of Rs. 595 Lacs is secured by residual pari-passu charges
on movable & immovable fixed assets of (i) unit -I Dwarikesh Nagar,
Village Bundki and Rajupura, Post office Medhpurasultan, Tehsil Nagina,
District Bijnor, Uttar Pradesh, (ii) Unit-ll Dwarikesh Puram, village
Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh, (iii)
Dwarikesh Dham, village Bhagwanpur Phulwa, Tehsil Faridpur, District
Bareilly, Uttar Pradesh.
b) Term Loans from Punjab National Bank (PNB) of Rs. 30,237 lacs
(including term loan in foreign currency equivalent to Rs 1, 196.10
Lacs) are secured as under:
- Term loan of Rs. 7,650 lacs 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) by way of
hypothecation of machinery & equipment and other fixed assets and
equitable mortgage of land and building situated at Dwarikesh Puram,
village Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh and
(ii) Second pari passu charge on block assets of the unit situated at
Dwarikesh Nagar, village Bundki and Rajupura, Post office
Medhpurasultan, Tehsil Nagina, District Bijnor, Uttar Pradesh.
- Term loan of 9,400 lacs (including term loan in foreign currency
equivalent to Rs 1, 196.10 Lacs) is secured by (i) Pari passu first
charge on block of assets, (both present and future ) by way of
hypothecation of machinery, equipment & other fixed assets and
equitable mortgage of Land and Building of unit situated at Dwarikesh
Dham, village Bhagwanpur Phulwa, Tehsil Faridpur, District Bareilly,
Uttar Pradesh, ii) second pari passu charge on entire block 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 of Rs.5,600 lacs 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 of
Land & Building of unit situated at Dwarikesh Puram, village
Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh pertaining
to 24 MW Co-generation plant, and (ii) second pari passu charge on
entire block assets of Dwarikesh Nagar, village Bundki & Rajupura,
Tehsil Nagina, District Bijnor, Uttar Pradesh.
- Term loans of Rs 210 lacs are secured by (i) pari passu first charge
on movable fixed assets including movable plant & machineries,
machinery spares, tools and accessories, both present and future (save
and except book debts) on entire block assets of Dwarikesh Nagar,
village Bundki & Rajupura, Tehsil Nagina, District Bijnor, Uttar
Pradesh and (ii) equitable mortgage on immovable properties situated at
Dwarikesh Nagar, Village Bundki and Rajupura, Post office
Medhpurasultan, Tehsil Nagina, District Bijnor, 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 loans of Rs. 2,377 Lacs are secured by residual pari-passu
charges on movable & immovable fixed assets of (i) Unit -I Dwarikesh
Nagar, Village Bundki and Rajupura, Post office Medhpurasultan, Tehsil
Nagina, District Bijnor, Uttar Pradesh, (ii) Unit-ll 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.
- Term loan of 5,000 lacs is secured by (i) Pari passu first charge on
immovable and movable fixed assets, (both present and future) by way of
hypothecation of machinery, equipment & other fixed assets and
equitable mortgage of Land and Building of unit situated at Dwarikesh
Dham, village Bhagwanpur Phulwa, Tehsil Faridpur, District Bareilly,
Uttar Pradesh, and ii) pari passu first charge on specific immovable &
movable fixed assets by way of hypothecation of machinery, equipment &
other fixed assets and equitable mortgage of Land & Building of unit
situated at Dwarikesh Puram, village Bahadarpur, Tehsil Dhampur,
District Bijnor, Uttar Pradesh pertaining to 24 MW Co-generation plant
c) Interest free trade tax loan of Rs. 105.77 lacs (including Rs. 19.12
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 Villages Bundki and
Rajupura, 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 by way 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) Loan from Sugar Development Fund of Rs. 236.50 lacs is secured by
(i) first pari passu charge on whole of movable properties of the unit
& equitable mortage on immovable properties situated at Villages
Bundki, and Rajupura, Post Office Medhpurasultan, Tehsil Nagina,
District Bijnor, Uttar Pradesh including its moveable plant and
machinery, machinery spares, tools and accessories and other movables,
both present and future and (ii) second pari passu charge by way of
equitable mortgage on immovable properties situated at Dwarikesh Puram,
village Bahadarpur, Tehsil Dhampur, District Bijnor, Uttar Pradesh.
All the term loans mentioned at above (a to c) are also personally
guaranteed by the Chairman & Managing Director of the Company.
e) Cash credit balances of Rs. 14,268.20 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, (ii) second charge on block assets immovable and movable ,
both present and future, of Dwarikesh Nagar, Village Bundki and
Rajupura, 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.
As at As at
30th Sep 08 30th Sep07
Rupees Rupees
2. Contingent liability not provided for
(a) In respect of show cause notices from
Central Excise department 10,503,596 4,383,005
in various cases against which the company
has preferred appeals.
(b) In respect of Trade Tax and Entry Tax
demand received from 3,212,316 885,760
Uttar Pradesh trade tax authorities in
various cases, in respect of which the
company has preferred appeals (net of amount
deposited under appeal Rs.2,499,584/-,
previous year Rs. 2,847,404/-).
(c) Bank Guarantees given to Pollution
Control Board and Petroleum 3,560,000 3,400,000
Companies.
3. Dividend not provided for on cumulative preference shares- Rs
13,320,000/- (previous year-nil)
4. Estimated amount of contracts remaining to be executed on capital
account, net of advance of Rs. Nil (previous year Rs. 215.87 lacs) and
not provided for is Rs. 140.50 lacs (previous year Rs. 3,883.72 lacs).
5. Loans and Advances include Rs. 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. In view of losses during the year, no provision for income tax has
been considered.
Provision for wealth tax of Rs. 337,480/- represents provision
applicable for the Assessment year 2008- 09 as per the provisions of
Wealth Tax Act, 1957.
8. 15 Lac Equity Share warrants convertible into 15 lac equity shares
were allotted to promoters on 30th July, 2007 on receipt of deposit @
10% of the amount calculated at the time of allotment of warrants as
per pricing formula contained in the SEBI guidelines on preferential
allotment. The warrants are convertible into equity shares at the
option of warrants holders at any time after 31st January, 2008 but
before the expiry of 18 months from the date of allotment considering
the relevant date as 1st January, 2008 for the purpose of determining
the price of the equity shares arising out of the conversion. Out of 15
lacs warrants, 7.50 Lac warrants have been converted into 7.50 Lacs
Equity Shares in February, 2008 and balance 7.50 Lac warrants are
pending for conversion as on 30th September, 2008. The funds raised by
the company through preferential allotment have been utilized for
augmenting long term resources.
9. The Company, in compliance of the interim order passed by the
Honble High Court of Allahabad (Lucknow Bench) on the 15th November,
2007, has paid a price of Rs. 110/- per quintal for sugar cane
purchased and accordingly accounted for the liability for sugar season
2007-08. However, The High Court of Allahabad, by a subsequent order
dated 7th July, 2008, upheld the validity of SAP of Rs 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.
10. a) 12% Redeemable Preference Shares of Rs. 100/- each are
redeemable at par in September, 2011.
b) 8% Redeemable Cumulative Preference Shares of Rs. 100/-each are
redeemable at par in August 2012.
11. 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 of Rs. 100/- each
amounting to Rs. 50,000,000/- in terms of section 80 of the Companies
Act, 1956.
12. There are no amounts outstanding in respect of unpaid dividend
/fixed deposits for more than seven years to be transferred to Investor
Education and Protection Fund.
13. Capital raising expenditure written off during the year Rs.3,01
1,120/- (previous year Rs.3,011,120/-) represents proportionate
expenses incurred in placement of GDR (net of GDR income).
14. Sundry Debtors/Creditors and Loans and Advances balances are
subject to confirmation and reconciliation.
15. a) There are no dues to Micro, Small and Medium enterprises/ Small
scale industrial undertaking (SSI) outstanding for more than 30 days.
b) The company has not made any delays in settlement of balances due to
small-scale undertakings and hence no provision for interest on delayed
payment is required. Further 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.
16. 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.
17. During the year Rupee term loans of Rs. 3,696.10 Lacs were
converted into foreign currency loan of USD 9,333,924.50. The above
loans are hedged by forward contract. There are no other foreign
currency exposures.
18. Figures for the previous year have been regrouped / reclassified,
wherever necessary. |
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| Source : Religare Technova | |
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