Shree Renuka Sugars

i.  Excise Duty on Finished Goods
 
 Excise duty is generally provided on manufacture of goods, which are
 not exempt from the payment of duty. However, since the Companys
 finished goods are not segregated at the time of production into those
 for sale in domestic markets and those for sale in export markets, the
 Company is unable to determine the exact liability towards excise duty
 on finished goods. Accordingly, excise duty is provided/paid only at
 the time of clearance of the goods from the factory.
 
 ii.  Leases
 
 The Company has entered into various operating leases for office,
 residential and factory premises. These are generally short- term
 leases and cancelable by serving adequate notice. The minimum amount of
 lease rentals payable on non-cancelable leases is as follows:
 
 - Within a period of one year - Rs. 150 million (Previous year Rs. 121
 million )
 
 - Period from one year to five years - Rs. 385 million (Previous year
 Rs. 287 million )
 
 iii.  Outstanding Commitments
 
 As at September 30, 2008, the Company had the following outstanding
 commitments;
 
 - Bank Guarantees outstanding - Rs. 693 million (Previous Year Rs. 737
 million. )
 
 - Estimated amount of contracts (net of advances) remaining to be
 executed on capital account and not provided for - Rs. 445 million
 (Previous year Rs. 1,485 million.)
 
 iv.  Balances appearing under the head sundry creditors, sundry
 debtors, loans and advances and secured loans are subject to
 confirmation, adjustments, if any, on the receipt/reconciliation of
 such accounts.
 
 v.  In terms of accounting standard AS 28 on impairment of assets,
 there were no impairment indicators existing as of the reporting date
 as per the internal management estimates and hence no impairment charge
 is recognised during the year under review.
 
 vi.  List of Small Scale Industrial undertakings, to whom the Company
 has payments due, have been identified from available information as at
 September 30, 2008 :
 
 1.  Jain Engineers, Belgaum
 
 2.  Inteltech Engineers, Belgaum
 
 3.  Spechem Industries Pvt Ltd., Chennai
 
 4.  Yashaswi Engineers, Belgaum
 
 5.  Techno Trade Links, Belgaum
 
 6.  Patil Thermoplastics, Palus
 
 7.  R. K Enterprises, Kolhapur
 
 8.  Satish Steel Works, Jalandhar
 
 9.  Shri Yash Enterprises, Belgaum
 
 10.  Ceramic Products Limited,Khanapur
 
 11.  Group Engineers, Sangali
 
 xviii. Subsequent events after the Balance Sheet date
 
 a) Acquisition of Gokak Sugars Ltd. in Karnataka.
 
 The Company has acquired 87% shareholding in Gokak Sugars Ltd., for a
 consideration of Rs. 693 million which includes assumption of
 pre-existing debt of Rs.650 million. Gokak Sugars Ltd., has 2,500 TCD
 sugar manufacturing unit and 14 MW co-generation power plant at Kolavi
 village, Taluka Gokak, Belgaum District in Karnataka.
 
 b) 30 Year lease of Raibag Sahakari Sakhar Karkhana Niyamit, Raibag,
 Karnataka.
 
 The Government of Karnataka has awarded Shree Renuka Sugars Ltd. 30
 year lease of Raibag Sahakari Sakhar Karkhana Niyamit. Raibag SSKN has
 a sugar manufacturing capacity of 2,500 TCD.
 
 xix. Previous year figures
 
 Previous year figures have been regrouped / recast wherever considered
 necessary to make them comparable with those of the current year.