Oudh Sugar Mills

(Rs. in Lacs)
                                       As at 30th         As at 30th
                                       June, 2008         June, 2007
 
 1. Estimated amount of contracts 
 remaining to be executed on Capital 
 Account (net of advances) 
 and not provided for                     8186.52           18672.67
 
 2. Contingent liabilities not 
 provided for in respect of :-
 
 (a) Demands / Claims by various 
 Government Authorities
 and others not acknowledged as debts :
 
 (i) Excise Duty & Service Tax             773.85             405.00
 
 (ii) Sales & Entry Tax                    241.52              90.28
 
 (iii) Duty under State Acts               155.05             155.05
 
 (iv) Others                                36.12               7.81
 
 Total                                    1206.54             658.14
 
 (b) (i) Guarantees given to a bank 
 against loans to cane growers            3000.00            1500.00
 
 (ii) Against the above, the loan 
 facilities actually availed as on the
 Balance Sheet date                       2350.22            1074.37
 
 (c) Unredeemed bank guarantees              0.96               0.96
 
 (d) Bills discounted with banks 
 [since realised Rs. 49.26 Lacs 
 (Rs. 66.65 Lacs)]                          66.54              66.65
 
 3.  Excise Duty & Cess on stocks represents differential excise duty
 and cess on opening and closing stock of finished goods/ by products.
 
 4.  Pending disposal of writs/appeals by the court with regard to levy
 sugar prices for some years, Rs. 79.41 Lacs (Rs. 113.46 Lacs) (net)
 received as excess levy sugar price, against which bank guarantees
 furnished by the Company for Rs. 84.88 Lacs, are in force in terms of
 the Court Orders, is included under the head Current Liabilities.
 Necessary adjustment for the above amount together with interest, if
 any, in this regard will be made in the accounts as and when the matter
 will be finally settled.
 
 5.  Pending decisions of various courts on writ petitions filed by/
 against the Company, no credit has been taken in the Profit and Loss
 Account in respect of certain realisations aggregating to Rs. 52.05
 Lacs in earlier years, which continue to be shown under the head
 Liabilities for other Finance in Schedule — 12. Against the above,
 fixed deposit receipts/ bank guarantees for similar amount have been
 furnished by the Company.
 
 6.  The Company at its Hargaon & Rosa sugar units in U.P. has accounted
 for sugarcane purchases @ Rs. 110 per quintal for sugar season
 2007-2008 in terms of Honble Allahabad High Courts (Lucknow Bench)
 interim order dated 15th November, 2007 as against the State Advised
 Price (SAP) of Rs. 125 per quintal, upheld by the said High Court vide
 its final order dated 7th July, 2008 against which the Company along
 with others through UP Sugar Mills Association has filed a Special
 Leave Petition (SLP) before the Honble Supreme Court.
 
 In the meantime, the Honble Allahabad High Court in its subsequent
 judgment dated 18th August, 2008 in case of another sugar Company has
 quashed the SAP for sugar season 2007-2008. In view of two different
 judgments from the two benches of the same court and also based on the
 legal advice, the Company has accounted for sugarcane liability for the
 current season @ Rs. 110 per quintal, as paid in accordance with the
 earlier interim order of the Honble High Court, although in terms of
 the order dated 18th August, 2008 as stated above, the Company is only
 liable to pay the Statutory Minimum Price fixed by the Central
 Government (till the finalisation of SAP by the State Government as per
 the courts directions), which is lower than the amount of Rs. 110 per
 quintal accounted for by the Company. Pending final decision by the
 Honble Supreme Court in this matter, the differential price of Rs.
 2422.74 Lacs between SAP and the amount already provided, as stated
 above, has not been accounted for.
 
 7. a) Pending execution of the conveyance deed, no adjustment has been
 made in respect of 0.75 acre of land sold by the Company in earlier
 years.
 
 b) An application filed by the Company for exemption of 3785.19 sq.
 mtrs. of land at Bamrauli under the Urban Land (Ceiling and Regulation)
 Act, 1976, is pending with the concerned authority.
 
 8. Advances include Rs. 66.58 Lacs incurred towards Rights Issue
 expenses, which will be adjusted against the Securities Premium, as per
 the Accounting policy followed by the Company, after the close of the
 Rights Issue. Further, the above amount includes Rs. 22.00 Lacs paid to
 the Statutory Auditors.
 
 9. (a) Salaries and Wages relating to various repairs have not been
 charged separately to the repairs, as the amount thereof has not been
 demarcated.
 
 (b) Consumption of raw materials, stores, spare parts and packing
 materials includes profit/loss on sale thereof.
 
 10.  Figures given in brackets are for the previous year and the
 previous years figures have been regrouped and/ or rearranged,
 wherever necessary.