అకౌంట్స్ గమనికలుNaraingarh Sugar Mills Ltd.

Mar 31, 2024

3.15. Contingencies and Provisions

A provision is recognised when the Company has a present obligation as a result of past events. It is
probable that an outflow of resources embodying economic benefit will be required to settle the
obligation in respect of which a reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on the best estimate of the expenditure required to settle the
obligation at the Balance Sheet date. These are reviewed at each balance sheet date and adjusted to
reflect the current best estimate.

A Contingent Liability is disclosed, unless the possibility of an outflow of resources embodying the
economic benefit is remote.

3.16 Financial Instruments

Financial assets and financial liabilities are recognised when a Company becomes a party to the
contractual provisions of the instruments. A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity instrument of another entity.

Equity Investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are
held for trading are classified as at Fair Value through Profit & Loss (FVTPL). For all other equity
instruments, the Company decides to classify the same either as at Fair Value through Other
Comprehensive Income (FVTOCI) or FVTPL. The Company makes such election on an instrument by
instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on
the instrument, excluding dividends, are recognised in the Other Comprehensive Income (OCI). There
is no recycling of the amounts from OCI to Statement of Profit & Loss, even on sale of investment.
However, the Company may transfer the cumulative gain or loss within equity. Equity instruments
included within the FVTPL category are measured at fair value with all changes recognised in the
Statement of Profit & Loss.

NOTE 4 : OTHER NOTES TO ACCOUNTS
(Forming part of Accounts)

FOR THE YEAR ENDED 31^st MARCH, 2024

4.1 -The Adjudicating Authority (under Prevention of Money Laundering Act, 2002), vide its order
dated 28^th May, 2015 confirmed the attachment of Fixed Assets [comprising of Land, Building,
Plant & Machinery (situated at Village - Banondi, PO - Shahzadpur, Tehsil-Naraingarh, District -

Ambala, Haryana)] of Naraingarh Sugar Mills Ltd. (Defendant) to the extent of '' 9,511.40 lakh (against

liability of '' 10,580.72 lakh due towards M/s. Yathuri Associates, a business associate against whom
case had been registered for recovery).

The Company had preferred an appeal with the Hon’ble Appellate Tribunal,

Prevention of Money Laundering Act, 2002 and the matter is subjudiced.

Company''s inability to discharge the liability in the time frame determined by Adjudicating Authority
may affect the Company''s ability to continue as going concern.

However, the Financial Statements of the Company have been prepared on going concern basis
pending decision of the Appellate Authority (Refer note 4.7).

-The Adjudicating Authority ( comprising of committee Constituted by the Order Dated 04.05.2022 by the
Hon’ble Supreme Court in W.P. (C) No. 995/2019) vide its order dated 24^th August, 2024 confirmed the
attachment of Fixed Assets under Maharashtra protection of interest of Depositors Act, 1999 comprising
of Land & Building.

Immoveable properties are attached. The Board of Directors, Directors, employees and authorized
representative of Naraingarh Sugar Mills Limited are restrained from transferring, alienating,
encumbering or parting with possession in any manner.

4.2. Contingent Liabilities & Commitments:

a) Estimated amount of contracts remaining to be executed and not provided for in the
books of account - Nil (previous year - Nil).

b) Contingent Liabilities:

i) The Trading in Shares of Company is suspended on stock exchange since 26.07.1999.
The Company may be liable to pay Revocation Fee, Fine and Penalty of '' 40.00 lakh or if the
Company is compulsorily delisted than all the shareholders will be paid for the number of shares
held by them at the value as decided by the BSE.

ii) Claims against the Company not acknowledged as debt:

a) Income Tax penalty u/s 271(1)(c) for the assessment year 2008-2009, levied by the

Income Tax Department - '' 5.46 lakh (previous year - '' 5.46 lakh).

The Company had preferred an appeal with Income Tax Appellate Tribunal, New Delhi; decision is
still awaited

b) Excise Duty demand ('' 37.27 lakh - inclusive of penalty), for the period from
01^st March, 2015 to 31^st March, 2016, was raised by Excise & Custom Department vide
their order dated 07^th September - 2016 against which the Company has deposited

('' 2.49 lakh) under protest and preferred an appeal with CESTAT, New Delhi;
the decision of the concerned Authority is still awaited.

c) Service Tax demand ('' 30.85 lakh - inclusive of penalty), for the financial year
2010-2011, was raised by Excise & Custom Department vide their order
dated 05^th March, 2014 against which the Company has deposited (''4.72 lakh) under protest
and preferred an appeal with CESTAT, New Delhi; decision is still awaited.

d) The Company may be liable to pay interest on Cane Purchase Tax payable.

e) ICICI Bank claimed (''1,002.21 lakh) for defaults by the Farmers, on account of guarantee given by
the Company.

f) Corporate Guarantee ('' 3,000.00 lakh) given by the Company to Bank, for loans given to
Cane Farmers.

Provisions of Section 186 of the Companies Act, 2013, have not been complied with.

-The amounts mentioned hereinbelow. in earlier years, were deposited (under-protest):

With Hon’ble. Delhi High Court ('' 103.13 lakh):

Sales Tax ('' 98.13 lakh) on demand raised by the Department;

Whereas, as per the policies of the Central Government, Sales Tax on sale of molasses was
exempt for Five years.

Amit Electricals ('' 5.00 lakh), pending settlement of accounts.

With Haryana State Government ('' 14.92 lakh):
on account of Local Area Development Tax.

With Excise & Custom Department ('' 7.20 lakh):

The Company had preferred appeals with CESTAT, New Delhi; decision is still awaited.

- The ultimate outcome of these matters cannot be determined & provision for liability, if any, cannot
be estimated at this stage.

-Liabilities in respect of Income Tax, Excise Duty, Sales Tax, Goods & Services Tax and other
material statutory dues have been accounted for on the basis of respective returns filed with
the concerned authorities.

-Additional demand, if any, on account of statutory dues, arising at the time of assessments will be
accounted for in the year in which assessments are completed.

c) Figures have been rounded off to nearest lakh, except Earnings per Equity share.

4.3. Issued. Subscribed & Paid up Capital:

i) Calls in arrears ('' 129.41 lakh i.e. 25.88 Equity Shares @ ''5.00 per share), since the
financial year 1996-1997, are due from public at large including associates; effective steps have
been initiated to regularise and appropriately adjust the account in the ensuing year.

ii) Redeemable (Non-cumulative) Preference Shares ('' 217.73 lakh - issued to a Bank); due for
redemption in the financial year 2010-2011, have not yet been redeemed.

4.4. Non Current Financial Liabilities:

-Long-term Borrowings:

-Secured:

Term Loans

From: Indian Renewable Energy Development Agency Ltd. (IREDA)

-Account no.- I (sanctioned amount - '' 10,035.00 lakh), as detailed hereinbelow, is repayable in 32
quarterly instalments:

4 quarterly instalments of ''225.78 lakh each w.e.f June-2023 to March-2024.

4 quarterly instalments of ''250.87 lakh each w.e.f June-2024 to March-2025.

4 quarterly instalments of ''282.22 lakh each w.e.f June-2025 to March-2026.

20 quarterly instalments of ''349.96 lakh each w.e.f. June-2026 to March-2031.

The Company could not pay interest accrued & due to Indian Renewable Energy Development
Agency Ltd. ('' 2,000.00 lakh for the period, from March, 2016 to June, 2017).

CONTD. P/6.....

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However, the Company’s proposal to Indian Renewable Energy Development Agency Ltd (IREDA)

for Re-schedulement of interest accrued & due, for the period from March, 2016 to June, 2017,
has been accepted by IREDA - vide their letter no. 221/2697/COG/2012/IREDA/3474
dated 30^th September, 2016 and accordingly the repayment of interest accrued & due was
resch e du led & converted in to Term Loan as mentioned hereinbelow: -
-Account no.- II

(Restructured amount - '' 2,000.00 lakh), is repayable in 20 quarterly instalments as detailed
hereinbelow:

8 quarterly instalments of '' 50.00 lakh each w.e.f June-2018 to March-2020.

4 quarterly instalments of '' 60.00 lakh each w.e.f June-2020 to March-2021.

8 quarterly instalments of ''170.00 lakh each w.e.f June-2021 to March-2023.

The Company had defaulted in repayment of dues ie Principal amount - ''2,283.06 lakh for the periodfrom
March, 2020 to March, 2024 & Interest - ''5,572.28 lakh for the period from March, 2020 to March, 2024 to
Financial Institution (IREDA).

Interest on loans, mentioned hereinabove, is payable on quarterly basis.

Balance of Term Loans from Indian Renewable Energy Development Agency Ltd (IREDA), as per Loan
Statement exceeds by ''50.50 lakh as on 31^st March, 2024, due to non-consideration of said amount by IREDA
in their Loan Statement.

SOFT LOANS:

From: The Ambala Central Cooperative Bank Ltd.

-Account no. - I

(Sanctioned amount - '' 6,000.00 lakh), was repayable in 12 monthly instalments of

'' 500.00 lakh each w.e.f. October-2019 to September-2020.

- Account no. - II

(Disbursed amount - '' 3,410.00 lakh), as detailed hereinbelow, was repayable in 6 quarterly
instalments:

5 quarterly instalments of '' 568.00 lakh each w.e.f June-2019 to June-2020.

1 quarterly instalment of ''570.00 lakh due & payable in September-2020.

Interest on loans, mentioned hereinabove, is payable on quarterly basis.

The Ambala Central Cooperative Bank Ltd. had sanctioned Soft Loan of ('' 4,500.00 lakh), out of

which ('' 3,410.00 lakh) was disbursed upto 31.03.2017 and the remaining amount ('' 1,090.00 lakh)
will be disbursed after the release of funds by the State Government.

- Unsecured:

soft loan ('' 1,111.14 lakh):

The Ambala Central Cooperative Bank Ltd. had sanctioned Soft Loan (interest free) to be paid in six
instalments, as detailed hereinbelow:

1 instalment of '' 335.00 lakh due & payable in December-2018.

1 instalment of '' 160.00 lakh due & payable in June-2019.

2 instalment of '' 160.00 lakh each due & payable in December-2019 & March-2020.

1 instalment of '' 150.00 lakh due & payable in June-2020.

4.5. a) In the opinion of the Directors, “Current Assets” are approximately of the value stated in the

Balance Sheet, if realised in the ordinary course of business and to the best of their knowledge
provisions for all the known liabilities have been made and, as certified, all the contractual and
statutory obligations have been duly complied with.

b) Party balances are good for payment and hopeful of recovery, therefore, provision for doubtful
amount/unclaimed balances is not required; however, the representative of majority shareholders
“Mr. Rahul Anand” who effected the transactions with old parties is behind the bars in Fraud Case and
also the legal cases are pending against him and the parties related to him as per FIR and
Police Department; Copy of FIR against Mr. Rahul Anand and Others is attached.

c) Party balances, brought forward from earlier years, are due for payment/recovery pending settlement
of accounts with the respective parties; effective steps have been initiated by the Chairman,
CEO cum ED and Director Finance appointed by the Government of Haryana this year.

4.6. Taxes

-MAT Credit Entitlement ('' 382.72 lakh i.e. balance brought forward '' 207.22 lakh add adjustment,

during the year '' 175.50 lakh) has been shown under the head ‘Other Equity’ with corresponding effect
under the head ‘Other Non-Curcent Assets’ in accordance with the accepted accounting principles.

According to amendment in the Finance Act 2018; MAT credit Entitlement can be carried forward upto
fifteen assessment year.

In wake of the said amendment, '' 175.50 lakh relating to previous years has been adjusted during the year.
-There are no dues of Income Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty,
Goods & Services Tax and Cess which have not been deposited with appropriate authorities on
account of any dispute, except as mentioned below:

4.7 Other Non-Current/Current Liabilities:

Advance from customer (Yathuri Associates - aggregating to '' 10,580.72 lakh) was received, in terms
of the agreement/supplement agreement executed, in earlier years, for supply of Sugar. As per mutual
agreed, terms & conditions, supply had to be effected in installments; however supply could not be
effected as the party did not lift Sugar within the stipulated period due to pricing issue.

The Company subsequently filed a suit in a Local Court (Naraingarh); the Hon’ble Court directed the
Company to maintain status quo (Refer note 4.1).

Note : This may by noted that Yathuri Associates was one of the party involved in NSEL Financial Fraud,
consequently ED and EOW, Mumbai enquiries are going on against the Company regarding
Yathuri Associates money receipt.

4.8. Non-Current Liabilities

Other Financial Liabilities ('' 138.17 lakh) represent:

-Security Deposits ('' 50.30 lakh) received from farmers, suppliers/contractors & dealers.

The Company has not entered into any contractual agreement(s) with the above referred parties with
regard to repayment/refund or payment of interest etc.

Government of Haryana is also involved in the recovery and FIR is also lodged against
Mr. Rahul Anand and also the Police Recovery Proceedings has been initiated against various parties
involved.

During the year, '' 155.00 lakh balance of ALBELI LEASING & FINANCE PVT LTD -NAGPUR
(unsettled other liability now recovered) has been adjusted with ESOTERIC TRADING PRIVATE
LIMITED- CHD.

4.13. Other Current Assets ('' 7,553.33 lakh):

Advance for Supplies & Services (''1,492.34 lakh) include:

- Farmers:

''1,383.14 lakh (previousyear - ''1,373.43 lakh), are subject to confirmation Amount shown as advances to
Farmers is not actually any amount advanced to any Farmer. This is the Financial Fraud done by
Mr. Rahul Anand and other officer in-charge of the Company at the time of advance shown in the
books.

Others:

Amount Recoverable ('' 6,027.38) include amount due & recoverable from Government Department &
Other Agencies:

From: Income Tax Department ('' 45.39 lakh):

on account of refund of Income Tax for earlier years.

From: Haryana State Government (''253.00 lakh):

on account of subsidy.

From: Suppliers ('' 5,289.48 lakh inclusive of '' 3,645.08 lakh* due from Rahul Sales Ltd and

'' 1,644.40 lakh due from other suppliers):

On account of advance given in earlier years.

CONTD. P/9.....

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*Rahul Sales Ltd (Company in which Ex-Directors/relatives of Ex-Directors are interested):

'' 3,645.08 lakh (previous year - '' 3,645.08 lakh) for supply of imported Sugar;

“Mr. Rahul Anand” who effected the transactions is behind the bars in Fraud Case and also the legal cases
are pending against him and the parties related to him as per FIR and Police Department

'' 1,644.40 lakh due from other parties includes major parties related to previous years and Legal cases are
also pending against many of them as per FIR and Police Department has also initiated the recovery
proceedings against them; List of Parties against which the Police Proceedings has been initiated is attached.

As advised by an expert, the provisions of Section 185 of the Companies Act, 2013 are not attracted, if at the
time of giving advance, directors do not hold, jointly or severally, more than 25% of the voting power of the
Company to whom advance has been given.

From: Naraingarh Distillery Ltd. (''1.58 lakh):
on account of expenses incurred on their behalf

The amounts, mentioned hereinbelow, were deposited (under-protest), in earlier years:

With Hon’ble. Delhi High Court ('' 103.13 lakh):

Sales Tax ('' 98.13 lakh) on demand raised by the Department;

Whereas, as per the policies of the Central Government, Sales Tax on sale of molasses was exempt for Five
years.

Amit Electricals ('' 5.00 lakh), pending settlement of accounts.

With Haryana State Government ('' 14.91 lakh):

on account of Local Area Development Tax.

With Excise & Custom Department ('' 7.20 lakh):

The Company had preferred appeals with CESTAT, New Delhi; decision is still awaited.

4.14. Operating Segments (Ind AS-108)

The Company is operating in Sugar Industry and Power Sector. However, the Chief Operating
Decision Maker (CODM) of the Company is of the opinion that there are no reportable segments as
required under Indian Accounting Standard - 108 "Operating Segments".

4.15. Related Party Disclosures (Ind AS-24)

Related parties & their relationship and related parties transactions - As per Annexure - (A).

4.16. The Company has made provision for liability of Gratuity & Leave Encashment on the basis of
Actuarial Valuation Report, as required under Indian Accounting Standard (Ind AS - 19). Every
employee who has completed five years or more of service gets a gratuity on departure at 15 days
salary (last drawn salary) for each completed year of service. However, the Company has not made
investment in Plan Assets.

Method : Projected Unit Credit (PUC)

The following table summarizes the components of net employee benefit expenses recognised in the
Statement of Profit & Loss, Other Comprehensive Income and amounts recognised in the
Balance Sheet:

4.21 Current Financial Liabilities:

- Trade Payables ('' 4,906.16 lakh) include:

Amount due to Farmers ('' 4,286.11 lakh) on account of Cane Price.

Farmers have been contesting, from time to time, for release of their payment; effective steps have been
taken to settle their accounts.

And Other Balances related to suppliers & contractors are bifurcated as per the Schedule III
requirements.

Other Current Financial Liabilities ('' 24,435.50 lakh):

Workmen’s Compensation:

The Company had made provision of '' 240.00 lakh, in earlier years, on account of
Workmen’s Compensation awarded to 24 workers under the directions of Labour Commissioner,
Haryana; however the case is pending before Hon’ble Supreme Court of India; the matter is
subjudiced.

We have entered for settlement agreement with workers and settlement amount will be paid in
3 installment out of which 1 installment of '' 72.00 Lakh is paid during the year.

Other Liabilities ('' 308.24 lakh) include:

Amount recovered from Unisiddha Trading Private Limited - Nagpur ('' 62.71 lakh) by Police.

Police is recovering the payment in trail of payments gone from mill.

Police recovered Amount has been recovered from Albeli Leasing & Finance Pvt. Ltd by Police.

e) There was no transaction in Foreign Currency (previous year - Nil).

f) The woman Director (Ms. Grupsi) is not attending any of the meeting. Due to non-payment of
Farmers (Cane Growers) within time, the mill is being supervised by the State Government.

CONTD. P/14.....

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4.25. Figures for previous year have been regrouped/rearranged where necessary to conform to the
crnmt year’s presentation.

In terms of our attached report of even date. For and on behalf of the Board of Directors

For P.K. VASUDEVA & CO. SANDEEP SINGH GHUMAN

CHARTERED ACCOUNTANTS (Whole-time Director)

Firm Registration No. - 000724N DIN : 07275838

(PRATEEK PURI) MANOJ KUMAR DAS

PARTNER (Director)

Membership No. - 524431 DIN : 07693956

VIJAY BHATIA
(Chief Financial Officer)

Dated: 20^th June, 2024 PRABHJOT KAUR

Place : Banondi (Company Secretary)

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Mar 31, 2014

Notes: 1. Term Loan from Indian Renewable Energy Development Agency Ltd. (IREDA) is secured by first charge, on all the fixed assets of the Company (situated at Village Banondi, Tehsil Naraingarh, Distt. Ambala, Haryana & elsewhere) both present & future, on pari-passu basis with GOI (SDF) for its term loan, exclusive charge on receivables of power from Bagasse/Biomass based cogeneration project & other monies credited/to be credited in TRA of the Borrower and also lying or held wherever else and equitable mortgage by deposit of title deeds of immovable properties of the Company. The said loan is also secured by personal guarantee of vice-chairman (Mr. Onkar Anand) expired on 21st March, 2014), Mrs. Renu Anand & Mr.Jitendra Anand, directors of the Company.

The rate of interest on the loan ranges from 12.50% to 15.00% per annum.

2. Vehicle Loans are secured against hypothecation of specified vehicles.

3. Contingent Liabilities & Commitments:

a) Estimated amount of contracts remaining to be executed and not provided for in the books of account - Nil (Previous year - Nil).

b) Contingent Liabilities:

* Claims against the Company not acknowledged as debt - Nil (Previous year - Nil).

* Counter indemnity in respect of guarantees issued by Punjab & Sind Bank in favour of Haryana Renewable Energy Development Agency (HAREDA) ( Rs. 10,000,000/-) (previous year - Nil).

Fixed Deposit (Rs. 10,649,945/- inclusive of interest accrued thereon) against bank guarantees have been pledged with the bank.

* The following amounts, in earlier years, were deposited (under-protest) Hon''ble Delhi High Court (Rs. 10,312,631/-):

Sales Tax (Rs. 9,812,631/-) on demand raised by the Department; whereas, as per the policies of the Central Government, Sales Tax on sale of molasses was exempt for five years.

Amit Electricals (Rs. 500,000/-), pending settlement of accounts.

Haryana State Government (Rs. 1,491,098/-) :

on account of Local Area Development Tax.

The decisions of the concerned authorities are awaited.

* Additional demand, if any, arising at the time of assessments will be accounted for in the year in which assessments are completed.

3. Issued, Subscribed & Paid up Capital:

a) Calls in arrears (Rs. 12,941,000/- i.e. 2,588,200 Equity Shares @ Rs. 5/-per share), since the financial year 1996- 1997, are due from public at large including associates; effective steps have been initiated to regularise and appropriately adjust the account in the ensuing year.

b) Redeemable (Non-cumulative) Preference Shares ( Rs. 21,772,510 - issued to a Bank); due for redemption in the financial year 2010-2011, have not yet been redeemed.

4. Long-term Borrowings :

* Secured (Rs. 350,146,420/-)

Term Loan:

From IREDA (Rs. 350,000,000/-)

There are no current maturities since no repayment is due in the year 2014-2015.

* Unsecured (Rs. 105,640,000/-)

After the demise of Mr. Onkar Anand (vice-chairman of the Company) on 21st March, 2014; unsecured loan standing to his credit has been transferred to his wife Mrs. Renu Anand.

5. Provision for Excise Duty (Rs. 13,821,660/-) on inventories of finished goods lying in the factory, at the close of the year, has been made on estimation basis in accordance with the guidance note of the Institute of Chartered Accountants of India. However, the said provision does not have any impact on profit for the year.

6. a) In the opinion of the Directors, "Current Assets" and "Loans & Advances" are approximately of the value stated in the Balance Sheet, if realised in the ordinary course of business and to the best of their knowledge provisions for all the known liabilities have been made and, as certified, all the contractual and statutory obligations have been duly complied with.

b) Party balances have been incorporated in the financial statements at the value as per the books of account & are considered hopeful of recovery/good for payment.

7. "A" Taxes

* The exact liability of Excise Duty, CST/VAT, Income Tax and other statutory dues are indeterminate pending finalisation of assessments and no undisputed dues or amounts were outstanding or remaining unpaid as at 31st March, 2014.

There were no disputed dues, except Cane Purchase Tax Rs. 29,733,831/- for the financial years 1996-1997 to 2001-2002, outstanding or remained unpaid as at 31st March, 2014, on account of any dispute; the decision of the Hon''ble Punjab & Haryana High Court, Chandigarh is awaited.

* MAT Credit Entitlement:

MAT Credit Entitlement (Rs. 42,225,412/-) has been shown under the head ''Reserves & Surplus'' with corresponding effect under the head ''Long-term Loans & Advances'' in accordance with the accepted accounting principles; the amount of tax credit determined shall be carried forward upto ten assessment years immediately succeeding the assessment year in which tax credit becomes allowable.

"B" Others

* Term Loan (r 350,000,000/-) has been disbursed by IREDA for implementation of power project, out of which (Rs. 297,500,000/-) has been given as advance for capital goods and remaining (surplus) funds, pending utilisation for the stated purpose, have been temporarily deployed in bank accounts.

* Exceptional items (Rs. 122,093/-) represent loss on sale of vehicle i.e. difference between W.D.V. of vehicle Rs. 207,093/- (cost of vehicle - Rs. 250,000/- less accumulated depreciation - Rs. 42,907/-) and sale proceeds of vehicle - Rs. 85,000/-.

8. Other Long-term Liabilities (Rs. 726,876,421/-):

* Security Deposits (Rs. 3,094,793/-) received from farmers, suppliers/dealers/contractors.

The Company has not entered into any contractual agreement(s) with the above referred parties with regard to repayment/refund or payment of interest etc.

Retention Money (Rs. 4,066,994/-) due to suppliers.

9. Other Non-Current Assets (Rs. 16,726,162/-):

Pre-operative Expenses (pending capitalisation) represent expenses incurred for setting up of power generation plant; the said expenses will be capitalised on commencement of commercial operation.

10. Cash & Bank Balances (Rs. 111,236,806/-):

Balance with banks (Rs. 91,848,458/-) are net of cheques pending encashment (Rs.16,477,713/-).

11. Segment Reporting (AS-17)

Since the Company primarily operates in one segment (Manufacturing/Trading of Sugar) - therefore segment reporting as required under Accounting Standard - 17 is not applicable - there is no reportable geographical segment either.

12. Related Party Disclosures (AS-18)

Related parties & their relationship and related parties transactions - As per Annexure - (A).

13. Impairment of Assets (AS-28)

During the year, the Company has undertaken a review of all the fixed assets in line with the requirements of AS- 28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India; based on such review, no provision for impairment is required to be recognised for the year.

14. Micro, Small & Medium Enterprises

Based on the information presently available, there are no amounts due to any micro or small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006.

15. There was no transaction in foreign currency.

16. Figures for previous year have been regrouped/rearranged where necessary to conform to the current year''s presentation.

17. Figures have been rounded off to nearest rupee.

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Mar 31, 2013

1.1. Contingent Liabilities 6 Commitments:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for in the books of account - Nil (Previous year - Nil).

b) .Contingent Liabilities:

- Claims against the Company not acknowledged as debt - Nil (Previous year - Nil).

- The following amounts, in earlier years, were deposited (under-protest) Hon''ble Delhi High Court (Rs. 10,934,631/-): Sales Tax (Rs. 9,812,631/-) on demand raised by the Department; whereas, as per the policies of the Central Government, Sales Tax on sale of molasses was exempt for five years.

Amit Electricals (Rs. 1,122,000/-), pending settlement of accounts.

Haryana State Government (Rs. 1,491,098/-):

on account of Local Area Development Tax.

The decisions of the concerned authorities are awaited.

- 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 will be accounted for in the year in which assessments are completed.

There is no demand pending in respect of the completed assessments.

- Additional demand, if any, arising at the time of assessments will be accounted for in the year in which assessments are completed.

1.2. Issued, Subscribed & Paid up Capital:

a) Calls in arrears (Rs. 12,941,000/- i.e. 2,588,200 Equity Shares @ Rs. 5/- per share), since the financial year 1996-1997, are due from public at large including associates; effective steps have been initiated to regularise and appropriately adjust the account in the ensuing year.

b) Redeemable (Non-cumulative) Preference Shares amounting to Rs. 21,772,2510/- comprisesof2,177,2251 SharesofRs. 10/- each issued to a Bank.

1.3. Long-term Borrowings: Secured

Vehicle Loans (Rs. 844,117/-)

From Non Banking Financial Companies are inclusive of installments due ft payable within twelve months of the reporting date and the same is not inconformity with the provisionsofrevised Schedule VI of the CompaniesAct, 1956.

1.4. Provision for Excise Duty (Rs. 25,567,273/-)

On inventories of finished goods lying in the factory, at the close of the year, has been made on estimation basis in accordance with the guidance note of the Institute of Chartered Accountants of India. However, the said provision does not have any impact on profit for the year.

1.5. a) In the opinion of the Directors, "Current Assets" and "Loans & Advances" are approximately of the value stated in the Balance sheet, if realised in the ordinary course of business and to the best of their knowledge provisions for all the known liabilities have been made and, as certified, all the contractual and statutory obligations have been duly complied with. b) Party balances, incorporated in the financial statements, are subject to confirmation and reconciliation.

1.6. Taxes

- The exact liability of Excise Duty, CST/VAT, Income Tax and other statutory dues are indeterminate pending finalisation of assessments and no undisputed amounts, except Cane Purchase Tax Rs. 1,891,807/- for the financial year 2003-2004 - the Company, as per the mutual understanding with the concerned Department, is regularly depositing the specified amount every year, were outstanding or remained unpaid as at 31st March, 2013. There were no disputed dues, except Cane Purchase Tax Rs. 33,910,041/- for the financial years 1996-1997 to 2002-2003, outstanding or remained unpaid as at 31st March, 2013, on account of any dispute; the decision of the Hon''ble Punjab & Haryana High Court, Chandigarh is awaited. - MAT Credit Entitlement:

MAT Credit Entitlement (Rs. 34,810,824/- inclusive of adjustments Rs. 2,726,885/- and net of utilisation'' 4,039,950/- during the year) has been shown under the head ''Reserves & Surplus'' with corresponding effect under the head ''Long-term Loans & Advances'' in accordance with the accepted accounting principles; the amount of tax credit determined shall be carried forward upto ten assessment years immediately succeeding the assessment year in which tax credit becomes allowable

Adjustments represent excess utilisation (Rs. 1,583,220/-) and non-availment (Rs. 1,143,665/) in earlier years. 4.7. - Other Long-term Liabilities (Rs.404,051,722/-):

Security Deposits (Rs. 2,948,527/-) received from farmers, suppliers / dealers / contractors..

The Company has not entered into any contractual agreement(s) with the above referred parties with regard to repayment/refund or payment of interest etc. Retention Money (Rs. 1,103,195/-) due to suppliers.

- Other Non-Current Assets (Rs. 11,056,947/-):

Pre-operative Expenses (pending capitalisation) represents cost of project appraisal incurred for installation of power generation plant. These expenses will be capitalised on installation of plant.

- Cash & Bank Balances (Rs. 16,565,884/-):

Balance with banks (Rs. 1,310,669/-) are net of cheques pending encashment (Rs. 19,226,000/).

1.7. Related Party Disclosures (AS-18)

Related parties & their relationship and related parties transactions - As per Annexure - (A).

1.8. Segment Reporting (AS-17)

Since the Company primarily operates in one segment (Manufacturing/Trading of Sugar) - therefore segment reporting as required under Accounting Standard -17 is not applicable - there is no reportable geographical segment either.

1.9. Impairment of Assets (AS-28)

During the year, the Company has undertaken a review of all the fixed assets in line with the requirements of AS-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India; based on such review, no provision for impairment is required to be recognised for the year.

1.10. Micro, Small 6 Medium Enterprises

The Company has not received any communication from any of its suppliers/service providers confirming that they are registered under the Micro, Small a Medium

Enterprises Development Act, 2006. In absence of any positive confirmation the information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 could not be determined.

1.11. Additional information pursuant to the provisions of paragraph 5 of General Instructions of Revised Schedule VI of the Companies Act, 1956 to the extent applicable.

1.12. There was no transaction in foreign currency.

1.13. Figures for previous year have been regrouped/rearranged where necessary to conform to the current year''s presentation.

1.14. Figures have been rounded off to nearest rupee.

---

Mar 31, 2012

Note :Working Capital Loans from scheduled banks are secured by (a) first hypothecation charge on pari-passu basis with member banks of consortium (State Bank of India, State Bank of Patiala, Canara Bank, Orientat Bank of Commerce and Allahabad Bank) over all current assets of the Company consisting of raw material, semi-finished & finished goods (b) second, pari passu, charge on fixed assets of the Company alongwith equitable mortgage of Land & Building of the Company.

a) Estimated amount of contracts remaining to be executed and not provided for in the books of account - Nil (previous year - Nil).

b) Contingent Liabilities:

- Claims against the Company not acknowledged as debt - Nil (previous year - Nil).

- The following amounts, in earlier years, were deposited (under-protest)

Hon''ble Delhi High Court (Rs. 10,934,631 /-):

Sales Tax (Rs. 9,812,631/-) on demand raised by the Department; whereas, as per the policies of the Central Government Sales Tax on sale of molasses was exempt for five years.

Amit Electricals (Rs. 1,122,000/ -), pending settlement of accounts.

Haryana State Government Rs. 1,491,098/-):

on account of Local Area Development Tax.

The decisions of the concerned authorities are awaited.

- 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 will be accounted for in the year in which assessments are completed.

There is no demand pending in respect of the completed assessments.

Note: Fixed Deposits (Rs. 978,711 /-) with State Bank of Paitala & (Rs. 5,656,667/-) with Allahabad Bank have been pledged with the respective banks.

1. In the opinion of the Directors, "Current Assets" and "Loans 6t Advances" are approximately of the value stated in the Balance sheet, if realised in the ordinary course of business and to the best of their knowledge provisions for all the known liabilities have been made and, as certified, all the contractual and statutory obligations have been duly complied with.

2. Party balances, in certain cases, are under reconciliation & subject to confirmation; however the same have been incorporated in the financial statements at the value as per the books of account & are considered hopeful of recovery/good for payment therefore provision for bad & doubtful debts / unclaimed balances is not required.

3. Provision for Excise Duty (Rs. 25,764,649/-) on inventories of finished goods lying in the factory, at the close of the year, has been made on estimation basis in accordance with the guidance note of the Institute of Chartered Accountants of India. However, the said provision does not have any impact on profit for the year.

4. "A" Employee Benefits

- Contributions as required under the Statute/Rule are made to Provident Fund and charged to the Statement of Profit St Loss of the year when the contributions to the fund are due.

- Provisions of Employees State Insurance are not applicable.

- Gratuity is accounted for on accrual basis - the Company has not opted for any policy for Group Gratuity Scheme from Life Insurance Corporation of India or any other insurer covered under the specified provisions of the Income Tax Act, 1961.

"B" Taxes

- Provision for Current Tax has been made, at specified rates, in accordance with the applicable provisions of the Income Tax Act, 1961.

- MAT Credit Entitlement (Rs. 36,123,889/- i.e. Rs. 37,707,109/- brought forward from the financial year 2011-2012 less Z 1,583,220/- adjusted during the year) has been shown under the head ''Reserves & Surplus'' with corresponding effect under the head ''Long- Term Loans 6t Advances'' in accordance with the accepted accounting principles.

The exact liability of Excise Duty, CST/VAT, Income Tax and other statutory dues are indeterminate pending finalisation of assessments and no undisputed amounts and disputed dues were outstanding or remained unpaid as at 31 st March, 2012.

"C" Others

Issued, Subscribed & Paid up Capital:

Calls in arrears (Rs. 12,941,000/-) are due from public at large including associates; effective steps have been initiated to regularise and appropriately adjust the account in the ensuing year.

- Calls in arrears (Rs. 12,941,000/-) are due from public at large including associates; effective steps have been initiated to regularise and appropriately adjust the account in the ensuing year.

-Redeemable (Non-cumulative) Preference Shares have not yet been redeemed.

Unsecured Loans:

- Unsecured loans from Directors (Rs.115,995,000/-) and Others (Rs.2,327,838/- i.e. deposits/advances received from farmers, suppliers/dealers/contractors) are exempt deposit, inconformity with the relevant applicable provisions of the Companies Act, 1956 and the rules framed thereunder .

- The Company has not entered into any contractual agreement(s) with the above referred parties (others) with regard to repayment/refund or payment of interest etc.

Other Long-Term Liabilities (Rs. 3,305,412/-) include Retention Money (Rs.1,932,789/-) due to suppliers.

Trade Receivables outstanding for a period exceeding six months have been disclosed, as per the past practice followed by the Company; Whereas, as per the revised Schedule - VI of the Companies Act, 1956, the same are required to be disclosed from the date they became due for payment.

5. Long Term Borrowings

Secured Loans :

Vehicle Loans (Rs. 1,755,470/-) :

From : Non-Banking Financial Companies

According to the agreed terms, principal amount outstanding is payable to Kotak

Mahindra Prime Ltd. & Reliance Capital Ltd. in monthly installments ofRs. 75,485/- & Rs. 29,900/- each respectively.

Unsecured Loans :

Business Loans (Rs. 3,751,710/-) :

From : Non-Banking Financial Companies

According to the agreed terms, principal amount outstanding is payable to Religare Finvest Limited & Tata Capital Ltd. in monthly installments of Rs. 195,109/- fit Rs. 222,950/- each respectively.

-Vehicles Loans & Business Loans are inclusive of installments payable within twelve months of the reporting date and the same are not inconformity with the provisions of Revised Schedule VI of the Companies Act, 1956.

6. Segment Reporting (AS-17)

Since the Company primarily operates in one segment (Manufacturing/Trading of Sugar) - therefore segment reporting as required under Accounting Standard -17 is not applicable - there is no reportable geographical segment either.

7. Related Party Disclosures (AS-18)

Related parties relationship and transactions with related parties - As per Annexure - (A).

8. Impairment of Assets (AS-28)

During the year, the Company has undertaken a review of all the fixed assets in line with the requirements of AS-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India; based on such review, no provision for impairment is required to be recognised for the year.

9. Micro, Small 8t Medium Enterprises

The Company has not received any communication from any of its suppliers/service providers confirming that they are registered under the Micro, Small & Medium Enterprises Development Act, 2006. In absence of any positive confirmation the information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 could not be determined

10. General:-

Statutory books, as required under the Companies Act, 1956, are being updated.

11. Additional information pursuant to the provisions of paragraph 5 of General Instructions under Part-II of revised Schedule VI of the Companies Act, 1956 to the extent applicable to the Company.

12. Figures for previous year have been regrouped/rearranged where necessary to conform to the current year''s presentation.

13. Figures have been rounded off to nearest rupee.

---

Mar 31, 2011

1. There were no capital contracts pending execution and contingent liabilities (not provided for in the books of account) as on 31 st March, 2011 (Previous Year-Nil).

2. In the opinion of the Directors, "Current Assets" and "Loans & Advances" are approximately of the value stated in the Balance sheet, if realised in the ordinary course of business and to the best of their knowledge provisions for all the known liabilities have been made and, as certified, all the contractual and statutory obligations have been duly complied with.

3. The management has informed that party balances, in certain cases, are under reconciliation & subject to confirmation; however the same have been incorporated in the financial statements at the value as per the books of account & are considered hopeful of recovery/good for payment therefore provision for bad & doubtful debts / unclaimed balances is not required.

4. Issued, Subscribed & Paid up Capital include:

-Calls in arrears (^ 12,941,000/-) are due from public at large including associates; effective steps have been initiated to regularise and appropriately adjust the account in the ensuing year.

-1,624,522 (12.5%) Redeemable (Cumulative) Preference Shares (held by Industrial Development Bank of India) were redeemed at par, during the year.

-Redeemable (Non-cumulative) Preference Shares have not yet been redeemed

5. Reserves & Surplus include:

-Capital Redemption Reserve Rs 48,845,220/- represent amount transferred from Profit & Loss Account (Rs 16,245,220/- during the year), on redemption of 1,624,522 (12.5%) Redeemable (Cumulative) Preference Shares at par.

-The management has informed that, dividend aggregating to Rs 5,864,938/- (inclusive of dividend distribution tax -Rs 835,362/-), in accordance with the guidelines specified in Secretarial Standard (SS-3) issued by the Institute of Company Secretaries of India, has been set off against profit, after providing depreciation for current year & as confirmed there is no arrear of depreciation.

6. Secured Loans:

- Term Loan :

From : Industrial Development Bank of India

The management has informed that the rescheduled repayments have been honored and there is no default as at 31st March, 2011; according to the agreed terms principal outstanding amount (Rs 15,300,000/-) is payable in three quarterly installments of Rs51.00 lacs each.

7. Unsecured Loans:

-Unsecured loans from Directors (Rs 113,295,000/-) and from Others (Rs 5,643,527/- i.e. deposits/advances received from farmers, suppliers/dealers/contractors) are exempt deposit, in conformity with the provisions of Sections 58A 8t 58AA and other relevant applicable provisions of the Companies Act, 1956 and the rules framed there under.

-The Company has not entered into any contractual agreement(s) with the above referred parties (others) with regard to repayment/refund or payment of interest etc.

8. Provision for Excise Duty (Rs 20,526,950/-) on stock of finished goods lying in the factory, at the close of the year, has been made on estimation basis in accordance with the guidance note of the Institute of Chartered Accountants of India. However, the said provision does not have any impact on profit for the year.

9. The management has informed that:

"A" Employee Benefits

-Contribution as required under the Statute/Rule is made to Employees Provident Fund and charged to the Profit Et Loss Account of the year when the contribution to the fund is due.

- Provisions of Employees State Insurance are not applicable.

-The management on verification of records observed that excess provision for Leave Encashment was made in earlier years; the excess amount covers the current year's liability, as well, hence no provision for Leave Encashment has been made in the year 2010- 2011.

- Bonus (Rs 1,122,288/-) paid/provided, during the year, is within the specified limits of the Payment of Bonus Act, 1965.

- Gratuity is accounted for on accrual basis -the Company has not taken any Gratuity policy with Life Insurance Corporation of India.

"B" Taxes

- Provision for Current Tax (MAT) has been made, at specified rates, in accordance with the applicable provisions of the Income Tax Act, 1961.

- MAT Credit Entitlement (Rs 31,050,949/-), due upto the assessment year 2010-2011 is on account of difference between the Book Profit computed in accordance with the applicable provisions of the Income Tax Act, 1961 and taxable profits as per the provisions of Chapter IVD of the Income Tax Act, 1961, has been shown in Schedule "B" (Reserves & Surplus) and Schedule 'G' (Loans & Advances).

- The exact liability of Excise Duty, CST/VAT, Income Tax and other statutory dues are indeterminate pending finalisation of assessments and no undisputed amounts (except Income Tax - MAT Rs 9,749,840/-, Corporate Dividend Tax Rs 948,479/- ft Cane Purchase Tax Rs 46,796,598/) and disputed dues were outstanding or remained unpaid as at 31st March, 2011.

"C" Others

- Amount Recoverable (Rs 53,449,873/-) include amounts due & recoverable from Government Departments 6 Other Agencies, as detailed herein below:

From: Directorate of Sugar (Rs 7,758,870/-) towards interest subvention on Excise Term Loan due ft recoverable.

From: Income Tax Department -refund of taxes (Rs 1,255,821/-) for earlier years.

Form: Excise ft Taxation Department -Excise Duty (Rs649,135/-)on sugar.

Others

From : Amit Electricals (Rs 4,960,947/-) on account of damages and penalty etc. for late supply of material.

From : The (erstwhile) Executive Director - (Rs 24,121,686/-) due for recoverable for car for cane imprest.

From : Non Banking Financial Companies (T 277,685/-) on account of tax deducted at source.

From: NCR Developers (* 2,000,000/-) for Land ft Building.

Deposits (under-protest)

A sum of Rs 1,491,098 / - had been deposited with Haryana State Government under protest on account of Local Area Development Tax and Rs 1,122,000/- and Rs 9,812,631/- with Hom'ble Delhi High Court, in case of Amit Electricals and Sales Tax respectively the decision of the concerned authorities is awaited.

10. Segment Reporting (AS-17)

Since the Company primarily operates in one segment (Manufacturing/Trading of Sugar) - therefore segment reporting as required under Accounting Standard -17 is not applicable - there is no reportable geographical segment either.

11. Related Party Disclosures (AS-18)

Related parties & their relationship and Related parties transactions - As per Annexure 'A".

12. Impairment of assets

During the year, the Company has undertaken a review of all the fixed assets in line with the requirement of AS-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India; based on such review, no provision for impairment is required to be recognized for the year.

13. Micro, Small & Medium Enterprises

There is no reported Micro, Small & Medium Enterprises as defined in the Micro, Small fit Medium Enterprises (Development) Act 2006, to whom the Company owes dues.

14.General:-

a) Prior period items (Rs 1,049,940/-) comprises of debits on account of interest on buffer stock shown as recoverable, in earlier years, from Directorate of Sugar; since the claim to the extent of Rs 970,291 /- has not been approved/released by the concerned authority, the said amount has been written back, additional demand of VAT/CST (Rs 79,694/-) for the assessment year 2007-08, interest (Rs 1,742,012/-) on Income Tax outstanding for the assessment year 2009-2010, paid to the Income Tax Department net of credits on account of Interest (Rs 1,551,543/-) on income tax refund, for the assessment year 2008-2009, received from the Income Tax Department and Interest accrued ft due (Rs 190,469/- net of Dividend Distribution Tax and TDAS).

b) Sundry Creditors include:

Sundry Acceptances (Rs 63,782,582/-) constitute arrear of Taxes (Minimum Alternate Tax - Rs 9,749,840/- for the assessment year 2010-2011, Dividend Distribution Tax Rs 1,783,841/- for the assessment year 2011-2012 Rs 835,362/- and for earlier years Rs 948,479/- and Cane Purchase Tax Rs 46,796,598/- -for earlier years), Retention Money (Rs 1,037,482/-) due to farmers and Staff balances (Rs 4,414,821 /-) on account of Leave Encashment (Rs 1,984,433/-) and Gratuity (Rs 2,430,388/-).

c) Statutory books, as required under the Companies Act, 1956, are being updated.

- Managerial Remuneration paid is within the limits specified in Schedule XIII of the Companies Act, 1956 and in conformity with the resolutions passed by the Company in its General/Board meetings.

- The computation of profit under Section 349 of the Companies Act, 1956 is not considered necessary, since no commission has been paid to the directors.

15. Figures for previous year have been regrouped/rearranged, where considered necessary.

16. Figures have been rounded off to nearest rupees.

---

Mar 31, 2010

1. -There were no capital contracts pending execution as oh 31 "March, 2010 (prev. year Nil).

- There were no contingent liabilities, except dividend on Preference Shares; the exact liability in respect thereof has not been determined.

2. In the opinion of the Directors, "Current Assets" and "Loans 8t Advances" are approximately of the value stated in the Balance sheet, if realised in the ordinary course of business and to the best of their knowledge provisions for all the known liabilities have been made and, as certified, all the contractual and statutory obligations have been duly complied with.

3. The management has informed that party balances, in certain cases, are under reconciliation & subject to confirmation; however the same have been incorporated in the financial statements at the value as per the books of account & are considered hopeful of recovery/good for payment therefore provision for bad & doubtful debts / unclaimed balances is not required.

4. Reserves & Surplus include:

-Prior period items (Net Rs. 669,013/-) represent:

i) Excess provision of interest (Rs.19,895,013/-), in the year 2008-2009, on Term Loans from HSIDC, written back/adjusted; during the year, by- ef editing-prior period-items— and debiting interest accrued but not due (other liabilities).

ii) Differential reduction of interest (Rs. 19,226,000/-) allowed by IDBI, in the year 2007- 2008, was credited to Capital Reserve; on settlement of account with IDBI the said amount has been determined as liability, hence the same has been charged to prior period items and shown as interest accrued but not due (other liabilities).

Capital Redemption Reserve (Rs 32,600,000/- represent amount transferred from Profit 6 Loss Account, on redemption of 3,260,000 (12.5%) Redeemable (Cumulative) Preference Shares at par.

The management has informed that, dividend aggregating to Rs. 6,529,406/- (inclusive of dividend distribution tax - Rs. 948,479/-), in accordance with the guidelines specified in Secretarial Standard (SS-3) issued by the Institute of Company Secretaries of India, has been set off against profit, of earlier years, after providing depreciation for current year & as confirmed there is no arrear of depreciation.

5. Issued, Subscribed & Paid up Capital include:

-Calls in arrears (Rs. 12,961,000/-) are due from public at large including associates; effective steps have been initiated to regularise and appropriately adjust the account in the ensuing year.

- 1,630,000 (12.5%) Redeemable (Cumulative) Preference Shares (held by Industrial Development Bank of India) were redeemed at par, during the year.

-Redeemable (Non-cumulative) Preference Shares have not yet been redeemed.

6. Secured Loans:

- Term Loans:

From: Industrial Development Bank of India

The management has informed that the rescheduled repayments have been honoured and there is no default as at 31" March, 2010; according to the agreed terms principal outstanding amount (Rs. 35,700,000/-) is payable in seven quarterly installments of Rs. 51.00 lacs each.

From: Haryana State Industrial Development Corp. Ltd.:

Loan - I (Rs; 3,624,124/-) and Loan II (Rs. 53,105/-); the Company has arrived at negotiated settlement of dues of HSIDC ft steps have been initiated to make the payment as per the terms of settlement.

7. Unsecured Loans:

-Unsecured loans from Directors (Rs 113,295,000/-) and from Others (Rs. 7,227,838/- i.e. deposits/advances received from farmers, suppliers/dealers/contractors) are exempt deposit, in conformity with the provisions of Sections 58A a 58AA and other relevant applicable provisions of the Companies Act, 1956 and the rules framed thereunder.

- The Company has not entered into any contractual agreement(s) with the above referred parties (others) with regard to repayment/refund or payment of interest etc.

8. Provision for Excise Duty (Rs. 19,305,940/-) on stock of finished goods lying in the factory, at the close of the year, has been made on estimation basis in accordance with the guidance note of the Institute of Chartered Accountants of India. However, the said provision does not haveany impact on profit for the year.

9. Amount Recoverable (Rs. 72,178,243/-) include amounts due a recoverable from Government Departments a Other Agencies, as detailed herein below:

- From : Ministry of Food, Government of India (Rs. 3,911,268/-) towards interest subsidy, storage a insurance charges on buffer stock.

- From: Directorate of Sugar (Rs. 8,205,951 /-) towards interest subvention on Excise Term Loan due a recoverable.

- From: Income Tax Department -refund of taxes (Rs.14,185,277/-) for earlier year.

- Form: Excise a Taxation Department Excise Duty (Rs. 2,213,968/-).

- Others:

From : Amit Electricals (Rs.4,960,947/-) on account of damages and penalty etc. for late supply of material.

From : The (erstwhile) Executive Director - Rs. 26,121,686/- due & recoverable (as per para B. 12 of last years report). <

From Non-Banking Financial Companies (Rs. 153,417/-) on account of tax deducted at source.

Deposits (under-protest)

A sum of Rs. 1,491,098/- had been deposited with Haryana State Government under protest on account of Local Area Development Tax. Rs. 1,122,000/- and Rs. 9,812,631 /- * with Honble Delhi High Court, in case of Amit Electricals and Sales Tax respectively; the decision of the concerned authorities is awaited.

10. - The management on verification of records observed that excess provision for Leave Encashment was made in earlier years; the excess amount covers the current years liability, as well, hence no provision for Leave Encashment has been made in the year 2009- 2010.

- Gratuity is accounted for at the time of actual payment - the Company has not opted for any policy for Group gratuity Scheme from Life Insurance Corporation of India or any other insurer covered under the specified provisions of the Income Tax Act, 1961.

11. -Provision for Current Tax (MAT) has been made on the basis of harmonious contextual interpretation of the IncomeTaxAct, 1961.

-MATCredit Entitlement (Rs. 21,301,109/-), due upto the assessment year 2009-2010 is on account of difference between the Book Profit computed in accordance with the applicable provisions of the Income Tax Act, 1961 and taxable profits as per the provisions of Chapter IVD of the Income TaxAct, 1961, has been shown in Schedule B" (Reserves ft Surplus) and Schedule G (Loans & Advances).

-The exact liability of Excise Duty, CST/VAT, Income Tax and other statutory dues are indeterminate pending finalisation of assessments and no undisputed amounts/disputed dues wereoutstandingorremainedunpaidasat31"March,2010.

12. Segment Reporting (AS-17)

Since the Company primarily operates in one segment (Manufacturing/Trading of Sugar) therefore segment reporting as required under Accounting Standard -17 is not applicable there is no reportable geographical segment either.

13. Related Party Disclosures (AS-18)

- Related parties & their relationship and Related parties transactions As per Annexure - (A).

14. Impairment of assets

During the year, the Company has undertaken a review of all the fixed assets in line with the requirement of AS-28 on "Impairment of Assets" issued by the Institute of Chartered

Accountants of India; based on such review, no provision for impairment is required to be recognized for the year.

15. The Company has not received any communication from any of its suppliers/service providers confirming that they are registered under the Micro, Small and Medium Enterprises Development Act, 2006. In the absence of any positive confirmation the information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 could not be determined.

16. General:-

- Sundry Creditors include Sundry Acceptances (Rs. 945,453/-) on account of payments due to staff 6t other parties.

- Depreciation on D.G. sets, boilers, water treatment plant, and sugarcane crushers forming part of Plant & Machinery, has been charged, at the rates applicable to the block of Plant & Machinery.

- Listing Fee of Stock Exchanges (Delhi, Calcutta, Ahemadabad & Ludhiana) has not yet been paid- the same will be accounted for at the time of actual payment, however Bombay Stock Exchange fees stands fully paid.

- Managerial Remuneration paid is within the limits specified in Schedule XIII of the Companies Act, 1956 and in conformity with the resolutions passed by the Company in its General/Board meetings.

- The computation of profit under section 349 of the Companies Act, 1956 is not considered necessary, since no commission has been paid to the directors.

17. Additional information pursuant to the provisions paragraph 3, 4-C and 4-D of Part-ll of Schedule VI of the Companies Act, to the extent applicable to the Company.

18. Figures for previous year have been regrouped/rearranged, where considered necessary.

19. Figures have been rounded off to nearest rupees.