1.1 Contingent Liabilities:-
 
 a) Liabilities in respect of Income Tax and Sales Tax have been
 accounted for on the basis of respective returns filed with the
 relevant authorities. Additional demand, if any, arising at the time of
 assessments is accounted for in the year in which the assessments are
 completed.
 
 i) Income Tax assessments have been completed up to the assessment year
 2009-10.  There is no demand in respect of the assessment Years upto
 2009-10.
 
 ii) Sales Tax assessments have been completed up to the assessment year
 2004-05 for Punjab units & 2008-09 for Uttar Pradesh units.
 
 b) An amount of Rs. 36.95 lacs (Previous year Rs. 24.61 lacs) has been
 reduced from Cenvat Receivable on account of disputed excise duty on
 bagasse and the same has been shown under the head Payments of Taxes
 under protest/appeal under Loans & Advances. The Company has filed an
 appeal with the Appellate Authority.
 
 c) The company has deposited Rs. 47.35 lacs on account of Excise Duty
 under protest (Previous year Rs. 12.36 lacs) and the same has been shown
 under the head Payments of Taxes under protest/appeal under short term
 Loans & Advances. The Company has filed an appeal with the Appellate
 Authority against the order of Commissioner, Central Excise.
 
 d) The company has deposited Rs. 80.26 lacs on account of Entry tax under
 protest (Previous year Rs. 26.99 lacs) and the same has been shown under
 the head Payments of Taxes under protest/appeal under Loans & Advances.
 The Company has filed an appeal with the Appellate Authority against
 the order of Deputy Commissioner, Sales Tax.
 
 e) The company has deposited Rs. 2.50 lacs on account of Excise Duty
 under protest (Previous year Rs. 2.50 lacs) and the same has been shown
 under the head Payments of Taxes under protest/appeal under Loans &
 Advances. The Company has filed an appeal with the Appellate Authority
 against the order of Commissioner Appeals.
 
 f) BankGuarantees/LC''s issued to PEC Limited and other companies
 amounting toRs. 1339.58 lacs (previous year Rs. 2780.36 lacs) are secured
 by pledge of FDRs of Rs. 215.83 lacs (previous year Rs. 410.67 lacs) and
 lien ofRs. 40 lacs on current a/c & counter guarantees given by the
 Company.
 
 g) The estimated amount of contracts remaining to be executed is Rs. 8.42
 Lacs (Previous Year Rs. 238.61 Lacs).
 
 1.2 Balances of Debtors, Creditors, Advances and Cane growers are
 subject to their respective confirmation and reconciliation.
 
 1.3 In the opinion of the Board of Directors, all the Current Assets,
 Loans and Advances, if realised in the ordinary course of business, 
 have a value at least equal to the amount at which these are stated 
 in the Balance Sheet.
 
 1.4 Excise duty amounting toRs. 1604.97 Lacs (Previous yearRs. 1338.66
 Lacs) has been added in the closing stock and the same has been shown
 as excise duty payable. However this has no effect on the Profit/(Loss)
 for the year.
 
 1.5 As per Accounting Standard -15 Employee Benefits, the disclosure
 of Employee Benefits as defined in the Accounting Standard are as
 follows:
 
 (i) The Company has taken the policy for gratuity with LIC''s Group
 Gratuity Scheme for its unit at Amritsar and Head Office at Chandigarh
 and paid annual premium of Rs. 12.00 Lacs for the year ended 31st March
 2012. The following are the actuarial assumptions taken based on which
 the premium has been determined:
 
 - Discounting factor 8%
 
 - Salary Increase 7%
 
 (ii) The Company has made provision of gratuity for its units at
 Moradabad, Rampur and Tarn Taran as per actuarial valuation
 certificate.
 
 (iii) The Company has made provision for leave Encashment as per the
 Actuarial valuation certificate.
 
 1.6 Segment Reporting
 
 Primary Segment
 
 Based on the guiding principles given in the Accounting Standard - 1 7
 Segment Reporting issued by ICAI, the Company''s segments are White
 Crystal Sugar, Power Generation and Distillery.
 
 Revenue and expenses have been accounted for on the basis of their
 relationship to the operating activities of the respective segment.
 
 Segment Identification
 
 Business segments have been identified on the basis of the nature of
 products/services, the risk return profile of individual businesses,
 the organizational structure and the internal reporting system of the
 company.
 
 1.7 Related Party Disclosures:
 
 Disclosures as required by the Accounting Standard -18 Related Party
 Disclosures issued by the ICAI are given below:
 
 A. Relationship
 
 a) Associate Companies
 
 1.  Rana Polycot Limited.
 
 2.  RSL Distilleries Pvt. Ltd.
 
 3.  Rana Informatics Pvt. Ltd.
 
 4.  Rana Leathers Pvt. Ltd.
 
 5.  Rana Infrastructure Pvt. Ltd.
 
 6.  Rana Power Ltd.
 
 7.  Superior Food Grain Pvt. Ltd.
 
 b) Key Management Personnel:
 
 1.  RanaRanjitSingh -Chairman
 
 2.  Rana Inder Partap Singh - Managing Director
 
 3.  Rana Veer Partap Singh - Director
 
 4.  Rana Karan Partap Singh-Director
 
 c) Relatives of Key Management Personnel:
 
 1.  Rana Gurjeet Singh
 
 2.  Mrs. Rajbans Kaur
 
 3.  Rana Preet Inder Singh
 
 4.  Mrs. Sukhjinder Kaur.
 
 1.8 Deferred Tax Liability
 
 Deferred tax assets and liabilities are being offset as they relate to
 taxes on income levied by the same governing taxation laws.
 
 Major components of Deferred Tax Assets and Liabilities:-
 
 During the year ended 31st March, 2012 deferred tax asset worth Rs.
 678.37 lacs has been generated, which has not been recognized as a
 matter of prudence.
 
 1.9 Impairment of Assets
 
 As per Accounting Standard -28 Impairment of Assets issued by ICAI,
 the management has reviewed its cash generating units as on 31.03.2012.
 No indication has been found by the management to suggest that the
 recoverable amount of Asset is less then the carrying amount. Hence no
 impairment loss on asset has been recoenized.
 
 1.10 The Micro and Small Enterprises to whom amount is outstanding as
 at the year end and requiring disclosure under the Micro Small and
 Medium Enterprises Development Act, 2006 are as follows:
 
 Chemicals & Chemicals, Raj Lime Industries, Allied Alloys Product, Gita
 Flow Pumps Pvt. Ltd. and Nikhil Techno Chem(P) Ltd.
 
 The above information has been compiled in respect of suppliers to the
 extent to which they could be identified as micro or small enterprises
 on the basis of intimation received from the suppliers regarding
 their status under the Micro Small and Medium Enterprises Development
 Act, 2006.
 
 1.11 Expenditure on employees:
 
 There was no employee employed for full or part of the year who was
 getting remuneration in excess of the limits specified in Section 217
 (2A) of the Companies Act, 1956
 
 Break up of expenditure incurred on employees in receipt of
 remuneration aggregating to Rs. 60,00,000/- per annum or Rs. 5,00,000/- or
 more per month
 
 1.12 No amount has been transferred to Capital Redemption Reserve as
 the company has incurred losses during the year.
 
 1.13 The company has given guarantees against crop loans ofRs. 4651.79
 lacs (previous yearRs. 4069.64 lacs) availed by the farmers. The loan
 given by the company to the farmers is included in Advances recoverable
 in cash or in kind or for value to be received.
 
 1.14 The company has made provision for Purchase tax on sugar cane
 amounting to Rs. 315.00 lacs (Previous year Rs. 554.56 lacs). However, the
 same has not been paid as the matter is under appeal with the Hon''ble
 Supreme Court.
 
 1.15 During the year dividend amounting to Rs. 14.21 lacs, which have
 remained unclaimed for a period of seven years have been transferred to
 Investor Education & Protection Fund.
 
 1.16 Previous year figures have been recasted/regrouped/rearranged
 wherever necessary to make them comparable with that of current year.