1. Contingent Liabilities
Nature of claim/Demands As at As at
31st 30th June,
Claims / demands against the Company under
Central Sales Tax 122.56 122.56
Entry Tax (U.P.) 745.07 730.30
Trade Tax (U.P.) 113.36 193.07
Excise Duty 2,376.34 408.02
Arrears of Dividend on Cumulative
Preference Shares 0 2.21
Others 35.55 35.55
Total 3,392.88 1,491.71
2. Alcohol and Molasses Storage Reserves and Effluent Disposal
Reserves amounting to Rs. 58.78 Lac (P.Y. Rs. 62.06 Lac) are not
deposited with a Scheduled Bank, as required under Uttar Pradesh Sheera
Niyantran (Sansodhan) Adesh, 1974.
3. Segmental Reporting Disclosures under Accounting Standard 17
Based on the guiding principles given in Accounting Standard 17
Segmental Reporting issued by the Institute of Chartered Accountants
of India, the Company''s primary business segments are
e. Agricultural Products
4. Disclosure in respect of Operating Lease in accordance with AS 19 on
a) The total of future minimum lease payments under non-cancellable
operating leases for each of the following periods:
i) Not later than one year Rs. 68.84 Lac (P.Y. Rs. 58.83 Lac).
ii) Later than one year and not later than five years is Nil (P.Y. Rs.
b) Lease payments recognised in the statement of profit and loss during
the Period of Eighteen Months is Rs. 41.48 Lac (P.Y. Rs. 50.02 Lac).
5. The Company follows Accounting standard 22 (AS22) Accounting for
taxes on Income, Deferred Tax Asset arising on account of Unabsorbed
depreciation and brought forward losses has been recognised only to the
extent of Deferred Tax Liability. The management has assessed the
position and on the basis of reasonable/ virtual certainty of realising
it in future, has recognised Deferred Tax Asset as on 31st December,
2014, amounting to Rs. 1,631.92 Lac (P.Y. Rs. 1,569.74 Lac).
6. The Company has incurred significant operational losses in Sugar
Division during the current period due to a steep decline in sugar
prices and uneconomically high Sugarcane prices. Considering the
various representations made by the Industry, the State Government of
Uttar Pradesh has decided to form a high level committee to determine a
fair sugarcane pricing policy and to restore the viability of the Sugar
Industry and the Company is hopeful that pursuant to the same the
Company would turnaround in near future. Accordingly, the financial
statements have been prepared on the assumption of going concern,
despite accumulated losses resulting in erosion of its networth.
7. Sugar cane purchase price for the season 2014-2015 is accounted at
State Advisory Price (SAP) Rs. 280/- per quintal for general, Rs. 275/-
per quintal for rejected and Rs. 290/- per quintal for early varieties.
The Government of Uttar Pradesh has announced various rebates in sugar
cane purchase price for the Season Year 2014-2015 vide press note dated
12/11/2014, linked to average market price of sugar & by-products
during the period 1st October, 2014 to 31st May, 2015. The above
rebates shall be accounted if and when crystalised to the Company or
declared by the State Government of Uttar Pradesh.
8. The Previous Year figures have been regrouped and re-casted
wherever necessary. The current financial statements are prepared for
the Period of Eighteen Months and hence not comparable with the
Previous Year figures.