SENSEX NIFTY India | Notes to Account > Sugar > Notes to Account from Kesar Enterprises - BSE: 507180, NSE: KESARENT

Kesar Enterprises

BSE: 507180|NSE: KESARENT|ISIN: INE133B01019|SECTOR: Sugar
May 29, 16:00
12.3 (9.97%)
VOLUME 165,711
May 29, 15:56
12.15 (9.97%)
VOLUME 471,623
Dec 14
Notes to Accounts Year End : Mar '16


Claims / demands against the Company under litigation:

(i) Claims against the company not acknowledged as debts in respect of criminal and civil cases '' 19.52 Lac (Previous Year '' 19.52 Lac)

(ii) Disputed sales tax, entry tax, trade tax and excise duty cases under appeal - '' 8,469.32 lac (Previous Year '' 3,392.88 lac)

2. Alcohol and Molasses Storage Reserves and Effluent Disposal Reserves amounting to '' 64.30 Lac (P.Y. '' 58.78 Lac) are not deposited with a Scheduled Bank, as required under Uttar Pradesh Sheera Niyantran (Sansodhan) Adesh, 1974.

3. The Micro and Small Enterprises to whom amount was payable and outstanding for more than stipulated period (as per the terms & conditions of the orders) are as under:-

This disclosure is on the basis of information available with the Company regarding the status of Suppliers as defined under the The Micro, Small & Medium Enterprises Act, 2006. Since the Company has not received any claims, hence interest is provided but not paid during the period.


Defined Contribution Plans

The Company has recognized the following amounts in statement of Profit and Loss

Defined Benefit Plan

(i) Gratuity (Funded)

(ii) Leave Encashment (Non-funded)

(i) Gratuity (Funded)

In accordance with Accounting Standard (AS 15) (Revised 2005), actuarial valuation was performed by independent actuaries in respect of the aforesaid defined benefit plan.

5. Related party disclosures as per Accounting Standard 18

Names of related parties and nature of related party relationships:

a) Key Management Personnel and their relatives:

Mr. H R Kilachand Chairman & Managing Director

Relatives of Key Management Personnel:

Mrs. M H Kilachand Wife of Chairman & Managing Director

Mr. Rohan H Kilachand Son

Mrs. Nidhi R Kilachand Daughter in Law

Ms. Rohita H Kilachand Daughter

b) Enterprises over which Key Management Personnel and their relatives are able to exercise significant influence:

Kesar Terminals & Infrastructure Limited Kesar Multimodal Logistics Limited Kesar Corporation Pvt. Ltd.

Kilachand Devchand & Co. Pvt. Ltd.

Indian Commercial Co. Pvt. Ltd.

India Carat Pvt. Ltd.

Kilachand Devchand Commercial Pvt. Ltd.

Duracell Investments & Finance Pvt. Ltd. (merged with Seel Investment Pvt. Ltd. w.e.f. 08/05/2015)

Seel Investments Pvt. Ltd.

Disclosure of transactions between the Company and related parties and the status of outstanding balance as on 31st March, 2016 indicated in bold. Previous Year figures indicated in the row there below in brackets:

36. Disclosure in respect of Operating Lease in accordance with AS 19 on ''Leases''

) The total of future minimum lease payments under non-cancellable operating leases for each of the following periods:

i) Not later than one year '' 4.00 Lac (P.Y. '' 68.84 Lac).

ii) Later than one year and not later than five years Nil (P.Y. '' Nil)

b) Lease payments recognized in the statement of profit and loss during the period is '' 25.65 Lac (P.Y. '' 41.48 Lac).

7. 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 recognized only to the extent of Deferred Tax Liability on conservative basis. The management has assessed the position and on the basis of virtual certainty of realizing it in future, has recognized Deferred Tax Asset as on 31st March, 2016, amounting to '' 1,867.35 Lac (P.Y. '' 1,631.92 Lac).

8. The Company, over the last few years, has been incurring huge cash losses, due to which its net worth has been eroded and its current liabilities are in excess of current assets. The sugar industry is facing difficulties on account of increasing sugar cane prices, lower sugar prices and consequential inadequate recovery of cost of production. These factors have adversely affected the Company''s operations and financial performance. Finance cost has further added to the accumulated cash losses.

The Company had filed a Reference with Board for Industrial and Financial Reconstruction (BIFR) as required under Section 15 of The Sick Industrial Companies (Special Provisions) Act, 1985 on 18/05/2015. The said reference has been registered by BIRF as Case No. 121/2015 on 21/09/2015. The process of revival/ rehabilitation of the Company is under way in line with the prescribed procedures and rules under SICA.

During the current period, the Company has witnessed a steady increase in sugar prices. This has resulted in the Company generating operational profits for the quarter ended March 31, 2016. The industry outlook is also positive in the short term and long term with sugar prices expected to hold.

During the period, the Company has restructured its Cogen Term Loans with two of its term lenders where in the outstanding debts as at 1st July, 2014 (cut-off date), the Company is granted 2 years of moratorium period for full principle amount and partial interest amount and 4 years of repayment period starting from October, 2016 for principle amount and interest thereon.

Accordingly, these financial statements have been prepared on a going concern basis, despite accumulated losses resulting in erosion of its net worth.

9. Sugar cane purchase price for the season 2015-2016 is accounted at State Advisory Price (SAP) '' 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 2015-2016 vide press note dated 18/01/2016, linked to average market price of sugar & by-products during the period 1st October, 2015 to 31st May, 2016. The above rebates shall be accounted if and when crystallized to the Company or declared by the State Government of Uttar Pradesh.

10. The Government of Uttar Pradesh has announced various rebates in sugar cane purchase price for the season 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 Company has received and accounted for financial assistance of Rs, 28.60 per quintals of cane which works out to Rs, 1,768.86 lacs and corresponding cost of material consumed is also reduced by the same amount.

The Government of Uttar Pradesh vide Press Note 4/2015/620 S-G-NU-1/15-1607/2004 dated June 12, 2015, has revised commission payable to the Co-operative Societies towards Sugar Cane purchase for the Season 2012-13 and 2014-15 from 3% of FRP to Rs, 2 per quintal. Therefore, excess provision of Rs, 262.50 lacs for the season 12-13 reversed and Rs, 123.70 lacs has been charged for the season 2014-15 during the period.

11. The previous period figures have been regrouped and re-casted wherever necessary. The current financial statements are prepared for the period of Fifteen Months and hence not comparable with the previous period of Eighteen Months figures.

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