Ugar Sugar Works

1.  Business Segments are determined on the basis of the goods
 manufactured and in accordance with Accounting Standard 17.
 
 2.  Inter-segment transfers are recorded at cost except for own
 generated Bagasse and Molasses, cost of which is unascertainable and
 which are recorded at prevalent purchase price.
 
 3.  Segment report is prepared in conformity with accounting policies
 adopted for preparing and pre- senting financial statements.
 
 4.  Utilization of Rights Issue proceeds:
 
 The Company has utilized the entire proceeds of the Rights Issue as per
 the Object stated in the Offer Document dated 24/10/2008.
 
 5.  Discontinued Operations (Disclosure as per Accounting Standard -
 24)
 
 The Company has discontinued sugar manufacturing activity at leased
 units at Tasgaon and Phaltan from the crushing season 2007-08. The
 decision to discontinue the lease operations was taken on 29-09- 2007.
 Final settlement is in progress. The following statement shows the
 position of liabilities and assets and of revenue and expenses of
 continuing and discontinued operations:
 
 6.  Disclosure with respect to AS-15
 
 The Company has implemented Revised Accounting Standard -15 on Employee
 Benefits and made the provisions accordingly. The disclosure as per
 revised AS-15 are produced below:
 
 Gratuity
 
 In accordance with the applicable laws, the Company provides for
 gratuity, a defined retirement plan (Gratuity Plan) covering all staff,
 workers and officers. The Gratuity Plan provides for, at retirement or
 termination of employment, an amount based on the respective employees
 last drawn salary and the years of employment with the Company. The
 Company provides the gratuity benefit through annual contributions to a
 Gratuity Trust which in turn mainly contributes to Life Insurance
 Corporation of India (LIC) for this purpose. Under this plan, the
 settlement obligation remains with the Gratuity Trust. LIC administers
 the plan and determines the contribution premium required to be paid by
 the Trust. The Company has also obtained an independent actuarial
 valuation of the Trusts Assets and Liabilities, and accordingly, the
 difference has been provided by the Company. The gratuity liability has
 been paid by the Company in case of employees, who left during the
 current period.
 
 1 he estimates of future salary increases, considered in actuarial
 valuation, take account of inflation, seniority, promotion and other
 relevant factors, such as supply and demand in the employment market.
 1 he above information is certified by the actuary.
 
 7.  Disclosure of Related Parties and Related Party Transactions
 
 I.  Name of the Related Party over which control exists Nature of
 Relationship
 
 i.  Ugar Consultancy Ltd.  Associate Company
 
 ii.  Ugar Theatres Private Limited .....  Associate Company
 
 iii.  Ugar Quality Packaging Pvt. Ltd.  .  Associate Company
 
 iv.  Sadashiva Sugars Ltd.  .  Associate Company
 
 
 I.  Names of the Related Parties with whom transactions were carried
 out during the year and description of relationship
 
 1.  Key Management Personnel (KMP) Designation
 
 i.  Shri Rajendra Vinayak Shirgaokar .  Chairman & Managing
 Director (CM0)
 
 ii.  Shri Prafulla Vinayak Shirgaokar .  Executive Director (ED)
 
 iii.  Shri Shishir Suresh Shirgaokar   Wholetime Director (WTD)
 
 2.  Relatives of Key Management Personnel
 
 Name of the transacting related party Natare-of ftefaKonship
 
 i.  Sau. SmitaPrafuHa Shirgaokar   Wife of ED
 
 ii.  Sau. Vinita Mahesh Samant   DaughterofEO
 
 iii.  Shri Sachinflajendra Shirgaokar   SonofCMD
 
 iv.  Sau. Savfta Shishir Shirgaokar   WifeofWTD
 
 v.  Shri Niraj Shishir Shirgaokar   Son of WTD
 
 vi.  Sau.MadhaviRajeevDatvi   DaughterofCMD
 
 vii.  Sau.SindhuVjjayDalvi   Sister of CMD & ED
 
 viii. Sau. RekhaRajartifeantKhedekar   Sister of WTD
 
 ix.  Sau. ChitraArun Dalvi   Sister of WTD
 
 x.  Sau. Puja Hrishikesh Pusalkar   DaughterofWTD
 
 3.  Enterprises over which KMP or Relatives of KMP are able to exercise
 significant influence
 
 Name of the transacting related party Nature of Relationship
 
 i.  S. B. Resheiters Pvt. Ltd.    CMD and ED are directors and Son
 of CMD is MD
 
 ii.  Shantaram Machineries Pvt. Ltd.    ED, WTD and Son of CMD are
 directors
 
 iii.  Sangli Fabricators Pvt. Ltd.    WTD and Son of CMD are
 directors
 
 iv.  Tara Tiles Pvt. Ltd.    ED, WTD and Son of CMD are directors
 
 v.  Ugar Pipe industries Pvt. Ltd.    ED and WTD are directors
 
 vi.  Tara Flooring Pvt. Ltd.    Son of CMD is a director
 
 vii. Vinayak Shirgaokar investments Pvt. Ltd  ED, Son of CMD and
 CMDs Sons Wife are directors
 
 viii. Suresh Shirgaokar Investments Pvt. Ltd  CMD is a director
 
 ix.  D.M. Shirgaokar Investments Pvt. Ltd  ED and WTD are
 directors
 
 x.  Sanjeev Shirgaokar Investments Pvt. Ltd  Son of CMD is a
 director
 
 xi.  Prafulla Shirgaokar Investments Pvt Ltd  ED and Wife of ED
 are directors
 
 xii. Mohan Shirgaokar Investments Pvt. Ltd  ED and WTD are
 directors
 
 xiii. Shishir Shirgaokar Investments Pvt. Ltd  CMD, WTD, Wife of
 WTD and WTDs Sons Wife
 are directors.
 
 xiv.  Prabhakar Shirgaokar Investments Pvt. Ltd  ED and WTD are
 directors
 
 xv.  M/s Shirgaokar Brothers .  ED, WTD, Son of CMD and Son of WTD
 are partners