A.  SECURED LOANS 
 
 1.  LOANS UNDER CDR 
 
 I.  FROM BANKS
 
 a) The amount outstanding under Secured Loans from Banks includes Term
 Loans, Working Capital Term Loans and Funded Interest Term Loans
 aggregating to Rs.83,155.19 lakhs (including interest) from Axis Bank
 Ltd, Allahabad Bank, Bank of India, Canara Bank, HDFC Bank Limited,
 IDBI Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab
 National Bank and State Bank of India. These Loans are secured by:
 
 i) Pari passu first charge on the entire movable and immovable
 properties of the Company except the assets charged on exclusive basis;
 
 
 ii) Pari passu second charge on the current assets of the Company; 
 
 iii) Pledge of shareholdings of the promoters in the Company; 
 
 iv) Personal Guarantees of Chairman, Vice Chairman & Managing Director,
 Joint Managing Director (Finance) and Joint Managing Director
 (Technical); and
 
 v) Collateral security and Corporate Guarantee provided by a promoter
 company
 
 b) The amount outstanding under Secured Loans from Banks includes Term
 Loans and Funded Interest Term Loans aggregating to Rs. 3,875.94 lakhs
 (including interest) from Allahabad Bank. These Loans are secured by:
 
 i) Pari passu First charge on the entire movable and immovable
 properties of the Company except the assets charged on exclusive basis;
 
 ii) First charge on the assets pertaining to Co-generation Plant I at
 Sakthi Nagar ranking pari passu with TIIC;
 
 iii) Pari passu second charge on the current assets of the Company;
 
 iv) Pledge of shareholdings of the promoters in the Company;
 
 v) Personal Guarantees of Chairman, Vice Chairman & Managing Director,
 Joint Managing Director (Finance) and Joint Managing Director
 (Technical); and
 
 vi) Collateral security and Corporate Guarantee provided by a promoter
 company.
 
 c) The amount outstanding under Secured Loans from Banks includes Term
 Loan of Rs.2,841.12 lakhs (including interest) from State Bank of
 India. This loan is secured by:
 
 i) Residual charge on the entire fixed assets of the Company. The
 charge on the assets of sugar division ranking pari passu with Bank of
 India, Canara Bank, HDFC Bank and Indian Overseas Bank;
 
 ii) Residual charge on the current assets of the Company;
 
 iii) Pledge of shareholdings of the promoters in the Company;
 
 iv) Personal Guarantees of Chairman, Vice Chairman & Managing Director,
 Joint Managing Director (Finance) and Joint Managing Director
 (Technical); and
 
 v) Collateral security and Corporate Guarantee provided by a promoter
 company.
 
 d) The amount outstanding under Hypothecation loans from Banks includes
 Working Capital facilities of Rs. 1,439.69 lakhs from Bank of India,
 HDFC Bank and Indian Overseas Bank which are secured by:
 
 i) First charge by way of hypothecation of the current assets of the
 Company ranking pari passu with Citibank; 
 
 ii) Pari passu second charge on the entire movable and immovable
 properties of the Company except Sugar and Co-generation Units in
 Sivaganga and Modakuruchi;
 
 iii) Pledge of shareholdings of the promoters in the Company; 
 
 iv) Personal Guarantees of Chairman, Vice Chairman & Managing Director,
 Joint Managing Director (Finance) and Joint Managing Director
 (Technical); and
 
 v) Collateral security and Corporate Guarantee provided by a promoter
 company.
 
 e) The amount outstanding under Secured Loans includes Bill Discounting
 limit of Rs.1,200.04 lakhs (including interest) from Bank of India. The
 loan is secured by:
 
 i) First charge by way of hypothecation of the current assets of the
 Company ranking pari passu with HDFC Bank, Indian Overseas Bank and
 Citibank N.A
 
 ii) First charge on the TNEB receivables; 
 
 iii) Pari passu second charge on the entire movable and immovable
 properties of the Company except Sugar and Co-generation Units in
 Sivaganga and Modakuruchi;
 
 iv) Pledge of shareholdings of the promoters in the Company; 
 
 v) Personal Guarantees of Chairman, Vice Chairman & Managing Director,
 Joint Managing Director (Finance) and Joint Managing Director
 (Technical); and
 
 vi) Collateral security and Corporate Guarantee provided by a promoter
 company.
 
 II.  FROM OTHERS
 
 The amount outstanding under Secured Loans from Others includes Term
 Loan and Funded Interest Term Loan aggregating to Rs.4,702.16 lakhs
 (including interest) from Infrastructure Development Finance Company
 (IDFC) Limited. This loan is secured by:
 
 i) Pari passu first charge on the entire movable and immovable
 properties of the Company except the assets charged on exclusive basis;
 
 
 ii) Pari passu second charge on the current assets of the Company; 
 
 iii) Pledge of shareholdings of the promoters in the Company; 
 
 iv) Personal Guarantees of Chairman, Vice Chairman & Managing Director,
 Joint Managing Director (Finance) and Joint Managing Director
 (Technical); and
 
 v) Collateral security and Corporate Guarantee provided by a promoter
 company.
 
 The Collateral security and the Corporate Guarantee provided by a
 promoter company for the loans under serial Nos.l (a)(c)(d)(e) and II
 above are subject to an overall limit of Rs.180 crores and is
 subservient to the loans from Allahabad Bank under serial No.l(b) above
 and the loan from TIIC.
 
 2.  LOANS OUTSIDE CDR
 
 I.  FROM BANKS
 
 a) The amount outstanding under Secured Loans from Banks includes
 Interest Free Excise Duty Term Loans aggregating to Rs.3,013.54 lakhs
 from Bank of India, Canara Bank, HDFC Bank and Indian Overseas Bank.
 These Loans are secured by:
 
 i) Residual charge on the Fixed Assets of the Sugar Units of the
 Company ranking pari passu with State Bank of India; and 
 
 ii) Personal Guarantees of Chairman and Vice Chairman & Managing
 Director.
 
 b) The amount outstanding under Hypothecation Loans from Banks includes
 Working Capital facility of Rs.706.96 lakhs (including interest) from
 Citibank which is secured by:
 
 i) First charge by way of hypothecation of finished goods, raw
 materials, stock in process, stores and spares, book debts of the
 Company''s sugar (except Modakurichi), distillery & soya units ranking
 pari passu with Bank of India, HDFC Bank and Indian Overseas Bank;
 
 ii) Second charge on the immovable & movable assets of the Company''s
 sugar (except Sivaganga & Modakurichi), distillery & soya units; and
 
 iii) Personal guarantees of Chairman and Vice Chairman & Managing
 Director.
 
 c) The amount outstanding under Hypothecation Loans from Banks includes
 Working Capital (Packing Credit) facility of Rs.578.92 lakhs (including
 interest) from Central Bank of India which is secured by:
 
 i) Exclusive charge by way of hypothecation of raw sugar in transit
 from the bonded warehouse from ports, raw and processed sugar at the
 sugar factories of the company, white sugar in transit for export and
 documents of title to goods covered under LC/EBN, Packing materials
 etc.
 
 ii) Second Charge on the immoveable assets of the company except assets
 exclusively charged ranking pari passu with the existing member banks
 of consortium for working capital facility.
 
 iii) Personal Guarantee of Vice Chairman & Managing Director.
 
 d) The amount outstanding under Hypothecation Loans from Banks includes
 Working Capital (Adhoc Cash Credit Limit) facility of Rs.600 lakhs from
 Bank of India which is secured by:
 
 i) First pari passu charge on stocks and receivables.
 
 ii) Second pari passu charge on Block assets to cover Working Capital
 Fund Based /Non Fund Based Limits (except assets exclusively charged).
 
 iii) Personal Guarantee of Vice Chairman & Managing Director.
 
 II.  FROM OTHERS
 
 1) The amount outstanding under Secured Loans from Others includes Term
 Loan of Rs.2,531.70 lakhs from Tamilnadu Industrial Investment
 Corporation Limited (TIIC). This loan is secured by:
 
 i) First Charge on the movable and immovable assets of the Company''s
 Cogen Plant-I at Sakthinagar Sugar Unit on pari passu basis with
 Allahabad Bank;
 
 ii) Escrow of the receivable on evacuation of power to Tamil Nadu
 Electricity Board (TNEB) from the Co-gen plant-l at Sakthinagar; 
 
 iii) Escrow of receivable on sale of ethanol from the Company''s
 distillery unit at Sakthinagar;
 
 iv) Personal Guarantees of Chairman and Vice-Chairman & Managing
 Director; and
 
 v) Collateral security provided by a promoter company.
 
 2) The amount outstanding under Secured Loans from Others includes
 Corporate Loan of Rs.9.76 lakhs availed by the Company from Housing
 Development Finance Corporation Ltd (HDFC). This loan is secured by a
 mortgage of Company''s property at New Delhi.
 
 3) The amount outstanding under Secured Loans from Others includes Term
 Loan of Rs.3,614.56 lakhs availed by the Company from Sugar Development
 Fund (SDF) of Government of India. This loan is secured by exclusive
 second charge on the assets of sugar and cogen units at Sivaganga unit
 of the company.
 
 4) The amount outstanding under Secured Loans from Others includes Term
 Loan of Rs.801.86 availed by the Company from Sugar Development Fund
 (SDF) of Government of India. This loan is secured by exclusive second
 charge on the assets of sugar and cogen units at Modakuruchi unit of
 the company.
 
 5) The amount outstanding under Hire Purchase Loans aggregating to
 Rs.76.75 lakhs (total amount payable including future interest is
 Rs.88.07 lakhs) represents the amount availed by the Company from
 public limited companies and is secured by hypothecation of the
 vehicles so financed.
 
 C.  FOREIGN CURRENCY CONVERTIBLE BONDS
 
 The Company had issued during May 2006, Zero coupon - Foreign Currency
 Convertible Bonds in two series aggregating to US$ 60 Million (Series A
 - US$ 20 million and Series B - US$ 40 million). These Bonds are
 convertible at the option of the holders into fully paid Equity shares
 at such conversion price as determined in accordance with the Offer
 Letter, but not less than Rs. 177.39 per share. Bonds of value
 aggregating to US.10 Million have been converted into 54,34,273
 fully paid Equity shares at the conversion price of Rs.208 and Rs.190
 per share for Series A and Series B respectively. Bonds for value
 aggregating to US$ 6.30 Million have been redeemed @40%. As on
 31.3.2011, balance outstanding is US$ 1.0 Million of Series A Bonds and
 US$ 28.6 Million of Series B Bonds.
 
 F.  Borrowing Cost capitalized during the year is Rs. 1,020.88 lakhs
 (Previous year Rs.630.92 lakhs).
 
 G.  The Company has pledged 4,38,59,394 equity shares holding in Sakthi
 Auto Component Limited (SACL), wholly owned subsidiary, to secure the
 loan and obligation in relation to SACL.
 
 K. RELATED PARTIES DISCLOSURE 
 
 I.  RELATED PARTIES
 
 A.  SUBSIDIARY COMPANIES
 
 Sakthi Auto Component Limited 
 
 Sakthi Auto Ancillary Private Limited
 
 Tilan Sugar Limited (since dissolved)
 
 B.  KEY MANAGERIAL PERSONNEL
 
 Dr N Mahalingam, Chairman
 
 Dr M Manickam, Vice Chairman and Managing Director 
 
 Sri M Balasubramaniam, Joint Managing Director (Finance) 
 
 Sri M Srinivaasan, Joint Managing Director (Technical) 
 
 Sri V K Swaminathan, Executive Director
 
 C.  RELATIVES OF KEY MANAGERIAL PERSONNEL
 
 There have been no transactions with relatives of key managerial
 personnel
 
 D.  ENTERPRISES WHERE CONTROL EXIST
 
 ABT Limited
 
 ABT Industries Limited
 
 ABT Info Systems Pvt. Ltd
 
 Anamallais Bus Transport Pvt. Ltd
 
 Sakthi Finance Limited
 
 Sakthi Logistic Services Ltd.
 
 Sri Chamundeswari Sugars Limited (SCSL)
 
 Nachimuthu Industrial Association
 
 E. ENTERPRISES IN WHICH KEY MANAGERIAL PERSONNEL/RELATIVES OF KEY
 MANAGERIAL PERSONNEL HAVE SIGNIFICANT INFLUENCE
 
 ARC Petroleum Services 
 
 N.Mahalingam & Company 
 
 Sakthi Automobiles 
 
 Sakthi Coffee Estates (P) Ltd
 
 Note: Information has been furnished with respect to
 individuals/entities with whom/which related party transactions had
 taken place during the year.
 
 O. The company has not received information from vendors regarding
 their status under The Micro, Small & Medium Enterprises Development
 Act, 2006 and hence disclosures relating to their outstanding amount
 and interest have not been made.
 
 S.  DISCLOSURE PURSUANT TO AS-28 ON ''IMPAIRMENT OF ASSETS''
 
 During the year, review has been done for carrying value of the assets
 for finding out the impairment, if any.  The review has not revealed
 any impairment of assets in terms of AS-28.
 
 T.  CONTINGENT LIABILITIES IN RESPECT OF
 
                                                         (Rs. in lakhs)
 
 Particulars                                   31.03.2011    31.12.2009
 
 Income tax matters                                394.68       1168.05
 
 Purchase tax/sales tax matters                   2691.80       2205.45
 
 Excise/service tax matters                       3293.16       3487.73
 
 Water tax                                         822.40        662.34
 
 Claims against the company not 
 acknowledged as debts                             827.81       1208.70
 
 Note: Above matters are subject to legal proceedings in the ordinary
 course of business. The legal proceedings when ultimately concluded
 will not, in the opinion of the management, have a material effect on
 the results of the operations or financial position of the company.
 
 Guarantees issued by bankers                       29.01         28.01 
 
 Corporate guarantee given for
 loans to subsidiaries
 
 a. Guarantee amount                             43381.88      53945.30
 
 b. Outstanding amount                           37469.98      44299.33
 
 Export obligation:
 
 Obligation for export of sugar (in lakh Mts)           -          1.67
 
 Duty component to be paid in case of 
 non fulfillment of obligation                          -      15524.92
 
 U.  Wherever necessary, figures for previous year have been regrouped
 or reclassified to conform to this year''s grouping or classification.
 
 V.  Previous year''s figures are not comparable with the current year
 figures as the current year is for a period of 15 months whereas
 previous year''s figures were for a period of 12 months.