Note (a): The written down value of Freehold Land, Leasehold Land, Building and Plant and Equipments revalued by the Company on 30th June, 2023 were ? 29,655.30 Lakhs and their fair market value were ? 34,080.53 Lakhs. Hence, the revaluation resulted in increase in the value of Freehold Land, Leasehold Land, Building and Plant and Equipments by? 4,425.23 Lakhs. The revaluation of the Freehold Land, Leasehold Land, Building and Plant and Equipments resulted into additional Depreciation charge of ? 4.45 Lakhs for the year under consideration. Depreciation on revalued portion is provided for the balance estimated useful life of the respective assets and equivalent amount is transferred from Revaluation Reserve to General reserve.
(#) Note b (i): In respect of land (out of the above Freehold Land) owned by the Company in Village Kluirpia, Tehsil Kiccha, District Udharn Singh Nagar, Uttarakhand on an application of a third party, passed an order dated 06.02.2023 deleting the name of the Company as owner and entering the name of third party as owner, in Khatauni (a revenue record of the Local District). On the strength of the order dated 06.02.2023, the third party also filed original suit before Ld. Senior Civil Judge, District Udharn Singh Nagar, Uttarakhand, seeking permanent injunction against the Company in respect of the said land. Ld. Senior Civil Judge granted temporary injunction against the Company via order dated 03.03.2023. These orders have been challenged by the Company at appropriate forums including through writ petition filed by the Company before Hon'ble High Court of Uttarakhand at Nainital, which is currently pending for adjudication.
(#) Note b (ii): In respect of land (out of the above Freehold Land) owned by the Company in village Bandia, Bareilly Nainital Road, Tehsil - Kichha, District - Udharn Singh Nagar, Uttarakhand, Consolidation Officer, Kichha has, on the request of a third party, passed an order dated 3rd May 2024, deleting the name of the company and entering the name of the third party as legal owner of the said land. On the strength of the said order, the third party has been able to get the land entered in her name in the concerned Khatauni (a revenue record of the Local District). The Company has challenged the order before the Competent Civil Court as well as a writ petition has also been filed before Hon'ble High Court of Uttarakhand at Nainital, which is currently pending for adjudication.
Terms/rights attached to Equity Shares
The Company has only one class of Equity Shares having a par value of ' 10 /- per Share. Each Holder of Equity Shares is entitled to one vote per Share. The Company declares and pays Dividends in Indian Rupees. The Dividend, if proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting except for interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the value of the remaining assets of the Company after distribution of all preferential amounts, in proportion of their holdings.
(1) Sugar Development Fund (Co-Gen Term Loan)
Security: Secured by way of first pari passu charge on Properties of the Sugar Factory at Baheri both present and future
Terms of Repayments:
Tranche I: Repayable in 10 half yearly installments of ' 159.77 Lakhs each, starting from July 4, 2014 to January 4, 2019. Tranche II: Terms of Repayments: Repayable in 10 half yearly installments of ' 158.47 Lakhs each, starting from March 2015 to September 2019.
Rate of Interest: Ranging from 4% to 7.5%.
(2) Sugar Development Fund (Modernisation Term Loan)
Security: Secured by way of first pari passu charge on Properties of the Sugar Factory at Baheri both present and future
Terms of Repayments:
Tranche I: Repayable in 5 annual installments of ' 44.05 Lakhs each, starting from August 3, 2018 to August 3, 2022. Tranche II: Terms of Repayments: Repayable in 5 annual installments of ' 46.72 Lakhs each, starting from August 15, 2018 to August 15, 2022.
Rate of Interest: 4%.(3) U P Co Operative Bank Ltd. (Working Capital Term Loan)
Security: Secured by pledge of Stocks of Sugar and further secured by second pari passu charge on Fixed Assets of Sugar Division
Terms of Repayments: Repayable in 8 half yearly installments from August 2019 to Feb 2023 Rate of Interest: Ranging from 8.95% to 9.50%.
(4) UCO Bank (Cogen Term Loan)
Primary Security: Secured by way of first pari passu charge on all Fixed Assets of Sugar, Spirit and Cogen Division at Baheri both present and future, and 1st pari passu charge on the Current Assets of Cogen Division both present and future.
Collateral Security:Secured by way of 2nd pari passu charge on the Current Assets of Sugar and Spirit Division at Baheri (except Sugar Stocks pledged) both present and futurePersonal Guarantee: Personal Guarantee of Shri H R Kilachand
Terms of Repayments: The Company has entered into One Time Settlement (OTS) with the UCO Bank and entire OTS amount was to be paid by 31/03/2024 and entire OTS amount is paid by the Company as per OTS sanction terms. Pursuant to the payment of entire OTS amount, the Company is in the process of completing with the other procedural formalities like release of the Bank's charge on the assets of the Company and withdrawal of various legal cases.
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32. CONTINGENT LIABILITIES
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|
(' in Lakhs)
|
|
(a)
|
particulars
Claims against the company not acknowledged as debts in respect of
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As at
31st March,2024
4.75
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As at
31st March,2023
4.75
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|
(b)
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criminal and civil cases
Disputed sales tax, entry tax, trade tax and excise duty cases under appeal: Central Sales Tax
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62.00
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62.00
|
| |
Entry Tax (U.P.)
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982.60
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982.60
|
| |
Trade Tax (U.P.)
|
17.21
|
17.21
|
| |
Excise Duty
|
953.35
|
4,992.59
|
| |
Others
|
0.48
|
0.48
|
| |
Total
|
2020.39
|
6,059.63
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33. CAPITAL AND OTHER COMMITMENTS
Estimated amount of contracts remaining to be executed not provided for - Towards Property Plant and Equipment
|
2,997.37
|
2,997.37
|
|
- Towards Operating Expenditure
|
149.63
|
0.00
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34. Alcohol and Molasses Storage Reserves and Effluent Disposal Reserves amounting to ' 116.79 Lakhs (P.Y. ' 108.58 Lakhs) are not deposited with a Scheduled Bank since it is reserved by the Company for utilization for provision and maintenance of adequate storage facilities as required under Uttar Pradesh Sheera Niyantran (Sansodhan) Adesh, 1974.
35. Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) is given below: -
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The principal amount and the interest due thereon remaining unpaid to any supplier
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131.92
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84.91
|
|
The amount of Principal and interest paid beyond the appointed day
|
162.03
|
183.14
|
|
The amount of interest due and payable on delayed payments
|
7.53
|
2.14
|
|
The amount of interest accrued and remaining unpaid
|
7.53
|
2.14
|
|
The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise.
|
0.00
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0.00
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This disclosure is on the basis of information available with the Company regarding the status of Suppliers as defined under the "The Micro, Small & Medium Enterprises Development Act, 2006."
(ii) Other Employee Benefit
The liability for leave entitlement is '160.07 Lakhs (P.Y. '162.64 Lakhs) disclosed under Long Term Provision (Refer Note No. 17) and Short-Term Provision (Refer Note No. 24)
(iii) Sensitivity Analysis
The below sensitivity analysis is based on the change in an assumption while holding all other assumptions constant. In practice this unlikely to occur and change in some of the assumptions may be correlated. When calculation the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet. The method and types of assumptions used in reporting the sensitivity analysis did not change compared to the prior period.
39. FINANCIAL RISK MANAGEMENT
The Company's principal financial liabilities, comprises borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company's operations and to support its operations directly or indirectly. The Company's principal financial assets include loans, trade and other receivables, cash and cash equivalents that derive directly from its operations.
The Company is exposed to credit risk and liquidity risk. Market risk is applicable for equity shares and variable borrowing. Foreign exchange risk is not applicable since the company does not have long term imports. The below note explains the sources of risk which the entity is exposed to and how the entity manages the risk :
Credit Risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.
Trade receivables
Outstanding customer receivables are regularly monitored and any further services to major customers are approved by the senior management.
On account of adoption of Ind-AS 109, the Company uses the expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and the Company's historical experience for customers.
Capital Management
For the purpose of the Company's capital management, capital includes issued equity share capital, securities premium and all other reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to maximise the value of the shares and to reduce the cost of capital.
The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings.
Rental expense recorded for short-term leases (less than one year) was ' 4.64 lakhs and '4.29 lakhs for the year ended March 31,2024 and March 31, 2023 respectively.
44. The Company had entered into a One Time Settlement (OTS) with UCO Bank in March, 2023 and has paid the entire OTS amount as per OTS sanction terms. Accordingly, the Company has given the accounting effect in the books by writing back of liabilities amounting to ' 9,113.77 Lakhs and included in Other Income (II). Pursuant to the payment of entire OTS amount, the Company is in the process of completing with the other procedural formalities like release of the Bank's charge on the assets of the Company and withdrawal of various legal cases.
45. The Company has incurred substantial losses in the earlier years, mainly attributable to high sugarcane prices and relatively lower and unviable Sugar prices. The Company is hopeful for the revival of the Sugar Industry in Uttar Pradesh in view of various steps taken by Uttar Pradesh State Government and Central Government. Hence, these Ind-AS financial statements have been prepared on a "going concern" basis, despite accumulated losses resulting in erosion of its entire net worth.
b) The Company has evaluated the Deferred Tax Asset and Deferred Tax Liability on the eligible components as required under Ind AS 12 - Taxes on income. The net outcome is coming to Deferred Tax Asset. Currently the Company has huge unabsorbed depreciation and carry forward losses under the Income tax laws. The Company has assessed the future position and is convinced of having a reasonable certainty of realizing the accumulated losses in future. However, the Company decided that it would be prudent that the net Deferred Tax Asset should not be recognized in the current year in the books of accounts.
47. The Code on Social Security 2020 ('the Code') relating to employee benefits, during the employment and postemployment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued.
The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which the Code becomes effective and the related rules to determine the financial impact are published.
48. Balances in ledgers of Sundry Receivables (Debtors), Sundry Payables (Creditors), Loans & Advances/ Security Deposits accepted and given, few Non-operative Bank Accounts are subject to confirmation and reconciliation.
50. additional regulatory information:
a) Loans and advances to promoters, Directors, Key Managerial Personnel and Related Parties
The Company has not given any loans and advances to promoters, Directors, Key Managerial Personnel and Related Parties except as mentioned in note number 38 - Related Party Disclosures as per Indian Accounting Standard 24
b) Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended March 31,2024 and March 31,2023.
c) Undisclosed Income
There are no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
d) Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual currency during the financial year ended March 31,2024 and March 31,2023.
e) Wilful Defaulter
Based on the information's available with the management, the Company has not been declared as a wilful defaulter by any bank or financial institution or other lender.
f) Fraud Reporting
The company has not reported any fraud during the year ended March 31,2024 and March 31, 2023.
g) Relationship with Struck off companies
The Company is under the process of identifying the transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act,1956.
h) Details of Benami Property held
No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
i) Title deed of immovable properties:
The title deeds of the immovable property disclosed in the financial statements are held in the name of the company except in respect of freehold land, which was owned by the Company has now been reflected in the name of the third party as owner, in Khatauni:
(a) Village Khurpia, Tehsil Kichha, District Udham Singh Nagar, Uttarakhand.
(b) Village Bandia, Bareilly Nainital Road, Tehsil - Kichha, District - Udham Singh Nagar, Uttarakhand.
j) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.
k) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
l) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
m) The company has used an accounting software for maintaining its books of accounts which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant transactions recorded in the software.
51. The previous year figures have been regrouped and reclassified wherever necessary to correspond with the current year classification / disclosure.
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