l) Provisions and Contingencies
Provision is recognised only when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources embodying economic benefits to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Contingent liabilities are disclosed when there is a possible obligation that may, but probably will not require an outflow of resources embodying economic benefits or the amount of obligation cannot be measured reliably. When the possible obligation in respect of which the outflow of resources embodying economic benefits is remote, it is not been disclosed as Contingent Liability.
m) Income Tax
Tax expense is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.
Current Tax
Current tax is the amount of income tax payable in respect of taxable profit for the year. The taxable profit differs from profit before tax as reported in Statement of Profit and Loss because of items of income or expenses that are taxable or deductible in other years and items that are never taxable or deductible under the Income Tax Act, 1961. The Company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period for the amount expected to be paid to / recovered from the taxation authorities.
Minimum Alternate Tax (MAT) credit is recognised as deferred tax asset only when and to the extent there is convincing evidence that the sufficient taxable profit will be available against which the MAT credit can be utilised.
Deferred Tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statement and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised on all temporary differences. Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised. Deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of an asset or liability in a transaction (other than a business combination) affects neither accounting profit nor taxable profit (tax loss).
Deferred tax assets are recognised for the carry forward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilised based on the review at the end of each reporting period by the company considering the likely timing and the level of
future taxable profits together with future tax planning strategies.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of reporting period, to recover or settle the carrying amount of its assets and liabilities.
As per the company's assessment on uncertainty over tax treatment on recognising Income tax with respect to Appendix C amendment, there are no material uncertainties over tax treatments.
Presentation of Current and Deferred Tax
Current and deferred tax is recognised in the statement of profit and loss except to the extent it relates to items recognised in other comprehensive income or directly in equity. In such cases, the tax is also recognised in other comprehensive income.
The company offsets current tax assets and current tax liabilities, where it is legally enforceable right to set off the recognised amount and where it intends either to settle on a net basis or to realize the assets and settle the liabilities simultaneously.
In case of deferred tax assets and deferred tax liabilities, the company offsets only when they relate to income taxes levied by the same taxation authorities and it has legally enforceable right to set off current tax assets against current tax liabilities..
n) Employee Benefits
Short Term Employee Benefits
All employee benefits payable within twelve months of rendering service are classified as short term employee benefits and are recognised in the period
in which the employee renders the related service. The Company recognises the undiscounted amount of short term employee benefits expected to be paid as a liability after deducting the amount already paid.
Post-employment Benefits
The Company operates the following postemployment schemes:
a) defined contribution plans such as provident fund; and
b) defined benefit plans such as gratuit Defined Contribution Plans
Defined Contribution Plans are Provident Fund, Employee State Insurance scheme and Government administered Pension Fund scheme for all applicable employees.
The company recognises contribution payable to a defined contribution plan as expenses in the statement of profit and loss when the employee renders services to the company during the reporting period. If the contribution payable for services received from employee before the reporting date exceeds the contribution already paid, the deficit payable is recognised as a liability after deducting the contribution already paid.
Defined Benefit Plans Gratuity obligations
Defined Contribution Plans are Provident Fund, Employee State Insurance scheme and Government administered Pension Fund scheme for all applicable employees. The company recognises contribution payable to a defined contribution plan as expenses in the statement of profit and loss when the employee renders services to the company during the reporting period. If the contribution payable for services received from employee before the reporting date exceeds the contribution already paid, the deficit payable is recognised as a liability after deducting the contribution already paid..
The Company operates a defined benefit plan for employees. The Company contributes to a seperate entity (a fund), towards meeting the gratuity obligation. The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by Independent actuaries using the projected unit credit method.The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows at a predetermined rate of interest based on the market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income.
Other long-term employee benefit obligations
The liabilities for earned leave which is not expected to be settled wholly within 12 months are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted at a predetermined rate of interest based on yields on Government Bonds that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in the Statement of Profit and Loss.
o) Operating Segments
Operating segments are identified in accordance with the criteria set out in paragraphs 5 to 10 of Ind AS 108 viz. a component of an entity that engages in business activities from which the company earns revenues and incur expenses and the operating results are regularly reviewed by the entity's Chief
Operating Decision Maker (CODM) to make decisions about resources to be allocated to the segment and assess the performance for which discrete financial information is available.
The operating segments are reported after taken into consideration of aggregation criteria and quantitative threshold as mentioned in Para 12 and 13 of Ind AS 108.
Operating segments are reported in a manner consistent with the internal reporting provided to the CODM of the company. The CODM is responsible for allocating the resources and assessing the performance of the operating segments of the company.
p) Leases
The Company's significant leasing arrangements are operating leases and cancelable in nature.
Company as Lessor
The lease rental income under agreements are recognised in the statement of profit and loss as per the terms of the lease. The rental income from operating lease is generally recognised on a straight line basis over the term of relevant lease. When the rentals are structured solely to increase in line with expected general inflation to compensate for the Company's expected inflationary cost increases, such increases are recognised in the year in which such benefits accrue. Contingent rental income arising under operating leases are recognised as income in the period in which they accrue.
Company as Lessee
The Company's lease asset classes primarily consists of leases for land and building. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified assets, the Company assesses whether: (i) the right to obtain substantially all of the economic
benefits from use of the identified asset through the period of the lease and (ii) the right to direct the use of the asset.
The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received
The Right-of-Use-Asset is subsequently measured at cost less any accumulated depreciation thereon. The right-of-use asset is depreciated using the straightline method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rate. Lease liabilities are remeasured with a corresponding adjustment to the related Right-of-Use asset if the Company changes its assessment of whether it will exercise an extension or a termination option.
Lease liability and Right-of-Use asset have been presented in the Balance Sheet and lease payments have been classified as cash flows from financing activities. The Interest expense and depreciation relating to Right-of- Use Asset have also been disclosed in the statement of profit and loss.
The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases and leases of low-value assets. The Company recognises such lease payments relating to these leases as an expense on a straight-line basis over the lease term.
q) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit or loss is adjusted for the effects of transactions of non cash nature, any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the company are segregated based on the available information.
For the purpose of presentation of cash flow statement, cash and cash equivalents includes cash on hand, cheques on hand, bank balances, demand deposit with banks where the original maturity is three months or less and other short term highly liquid investments.
r) Borrowings
Borrowings are initially recognised at net of transaction costs incurred and are subsequently measured at amortised cost.
s) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale are added to the cost of those assets. Borrowing costs capitalisation be commenced by the company when (i) incurs expenditure for the asset (ii) incurs borrowing cost (iii) incurs activities that are necessary to prepare the asset for its intended use or sale. All other borrowing costs are recognised as an expense in the statement of profit and loss in the period in which they are incurred.
t) Events occuring after balance sheet date
Where events occurring after the Balance Sheet date
provide evidence of conditions that existed at the end of thereporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after theBalance Sheet date of material size or nature are only disclosed.
u) Recent Accounting Pronouncements and Application:
Ministry of Corporate Affairs ("MCA") vide notification dated March 31,2023 has amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023 and the amendements are applicable with effect from April 1,2023. The amendments are as follows :
Ind AS 1 - Presentation of Financial
Statements
This amendment prescribes "Disclosure of accounting policy information", which requires the entity to disclose material accounting policies instead of significant accounting policies in the financial statements. The Company has assessed that this amendment has no significant impact on the financial statements.
Ind AS 8 - Accounting policies, Changes in Accounting estimates and errors
This amendment replaces the definition of a change in accounting estimates with the new definition of accounting estimates to clarify the entity on the accounting estimates, treatment of change in accounting estimates and accounting policies. The Company has assessed that this amendment has no significant impact on the financial statements.
Ind AS 12 - Income Tax
This amendment has narrowed the exceptions on initial recognition that the exception is not applicable to the transactions which give rise to equal taxable and deductable temporary differences on initial recognition. The Company has assessed that this amendment has no impact on the financial statements.
Description of nature and purpose of Reserve :
Capital Reserve is utilised in accordance with the Act and not available for distribution by way of dividend
Securities Premium represents premium on issue of shares. The reserve will be utilised in accordance with the provisions of the Companies Act, 2013.
Capital Redemption Reserve is created for redemption of Preference Shares and it is not available for distribution by way of dividend
General Reserve is created out of retained earnings from time to time.
Retained Earnings: Retained Earnings are the profits that the company has earned till date of the balance sheet less any transfers to other reserves and dividend paid to the shareholders, if any.
Other Comprehensive Income: Other Comprehensive Income represents the cumulative gain/loss arising on measurement of Equity Instruments at fair value and remeasurement of Defined Benefit Obligation. This would not be reclassified to the statement of profit and loss
20.1 Rupee term loan of Nil (' 300 Lakhs) from HDFC Bank Ltd is secured by pari passu first charge on the movable fixed assets of Sugar Unit I.
The loan carries Interest at the rate of 1Year MCLR and repayable in 20 equal quarterly instalments starting from December 2018.
The loan amount repayable within twelve months of Nil (' 300 Lakhs) is grouped under Short Term Borrowings.
20.2 Rupee term loan of ' 2625 Lakhs (' 4125 Lakhs) from HDFC Bank Ltd is secured by pari passu first charge on the movable fixed assets of Distillery Plant at Unit II.
The loan carries Interest at the rate of 0.30% over applicable six months MCLR and repayable in 20 equal quarterly instalments from March 2021.
The loan amount repayable within twelve months of ' 1500 Lakhs (' 1500 Lakhs) is grouped under Short Term Borrowings.
20.3 Working Capital Rupee term loan of ' 7500 Lakhs (' 12500 Lakhs) from The Federal Bank Ltd is secured by way of exclusive charge against receivable from TANGEDCO for supply of power from Cogeneration units and Wind mills.
The loan carries Interest at the rate of Repo Rate plus sperad of 1.40% and repayable in 12 equal quarterly instalments from December 2022
The loan amount repayable within twelve months of ' 5000 Lakhs (' 5000 Lakhs) is grouped under Short Term Borrowings.
20.4 Loan from Sugar Development Fund (Government of India) availed for modernisation of Sugar Unit-I, amounting to ' 1025.66 Lakhs (' 1139.62 Lakhs) is secured by way of pari passu first charge basis on the immovable and movable properties of Sugar Plant at Unit-I.
The loan carries interest at the rate of 2% below the bank rate prevailing on the date of disbursement. Repayment of principal and payment of interest thereon commences after the expiry of one year from the repayment of bank term loan and interest thereon or on the expiry of a period of 5 years reckoned from the date of disbursement whichever is earlier in ten half yearly instalments.
The loan amount repayable within twelve months of ' 227.92 Lakhs (' 113.96 Lakhs) is grouped under Short Term Borrowings.
20.5 Loan from Sugar Development Fund (Government of India) availed for modernisation cum expansion of Sugar Unit-III, amounting to ' 1520.12 Lakhs (' 2128.17 Lakhs) is secured by way of pari passu first charge basis on the immovable and movable properties of Sugar Plant at Unit-III.
The loan carries interest at the rate of 2% below the bank rate prevailing on the date of disbursement and repayable in ten half yearly i nstalments from December 2021.
The loan amount repayable within twelve months of ' 608.04 Lakhs (' 608.04 Lakhs) is grouped under Short Term Borrowings.
20.6 Loan from Sugar Development Fund (Government of India) availed for setting up of 20 MW bagasse based cogeneration plant at Sugar Unit-III, amounting to ' 631.65 Lakhs (' 1053.20 Lakhs) is secured by way of pari passu first charge basis on the immovable and movable properties of Cogeneration Plant at Unit-III.
The loan carries interest at the rate of 2% below the bank rate prevailing on the date of disbursement. Interest shall be paid half yearly for the first three years from the date of each disbursement after which it shall be paid half yearly alongwith repayment of principal.
Repayment of principal shall commence after expiry of three years reckoned from the date of each disbursement and it shall be paid in ten half yearly instalments.
The loan amount repayable within twelve months of ' 421.55 Lakhs (' 421.55 Lakhs) is grouped under Short Term Borrowings.
20.7 Loan from Sugar Development Fund (Government of India) availed for expansion of distillery plant at Sugar Unit-II from 60 KLPD to 150 KLPD for production of ethanol from molasses with spent wash incineration to achieve ZLD, amounting to ' 2300.75 Lakhs (' 3451.13 Lakhs) is secured by way of pari passu first charge basis on the immovable and movable properties of Sugar Unit - II.
The loan carries interest at the date of 2% below the bank rate prevailing on the date of disbursement. Repayment of loan shall commence after the expiry of one year from the date of each disbursement of the loan and shall be in eight half yearly instalment. The interest shall be paid annually for the first year from the date of disbursement after which it shall be paid half yearly alongwith instalments.
The loan amount repayable within twelve months of ' 1150.38 Lakhs ('1150.38 Lakhs) is grouped under Short Term Borrowings.
20.8 The purchase tax of ' 103.24 Lakhs (' 171.29 Lakhs) payable to Government of Karnataka for purchase of Sugarcane to Sugar Unit III during the years ended 31.03.2015 and 31.03.2016 has been converted into interest free loan. The loan is secured by issue of Bank Guarantee from ICICI Bank Limited. The loan is repayable
in five annual instalments from the sixth year of Conversion into Loan.
The loan amount repayable within twelve months is ' 68.05 Lakhs (' 68.05 Lakhs) is grouped under Short Term Borrowings.
20.9 None of the Directors has given any Security or Guarantee to any borrowings.
25.1 Cash Credit and other Working Capital Limits/ Demand Loan sanctioned by Punjab National Bank consortium consists of Punjab National Bank, The Federal Bank Ltd, The Karur Vysya Bank Ltd, Indian Overseas Bank, State Bank of India, Bank of India, Axis bank Ltd, ICICI Bank Ltd and The HDFC Bank Ltd to the company are secured by way of hypothecation of current assets and other movable block assets of the sugar units I, II, III, IV and V and third mortgage on the immovable properties of the Sugar units I, II, III, IV and V.
The credit limit availed as at 31.03.2024 is ' 17851.52 Lakhs (' 20688.23 Lakhs)
The availed limits are repayable on demand and carries interest rates between Bank's MCLR plus 0% and 1.85% per annum.
23.2 The Unsecured short term loan of Nil (' 12500 lakhs) from The Federal Bank Ltd is repayable within ninety days from the date of availment and carries interest at 7.35% per annum.
The Unsecured short term loan of ' 3500 lakhs (Nil) from The Federal Bank Ltd is repayable within one hundred and eighty days from the date of availment and carries interest at 7.45% per annum.
The Unsecured short term loan of ' 8500 lakhs (Nil) from The Federal Bank Ltd is repayable within one hundred and eighty days from the date of availment and carries interest at 7.50% per annum.
The Unsecured short term loan of ' 3000 lakhs (Nil) from The Federal Bank Ltd is repayable within one hundred and eighty days from the date of availment and carries interest at 7.60% per annum.
NOTE 45. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for) CONTINGENT LIABILITIES
45. 1. The company has preferred a Writ Appeal before the Division Bench of the Hon'ble High Court, Madras challenging the Order pronounced in Writ Petition No. 4030/2002 dated 28.02.2006 in connection with increase in rate of water charges and the method of computation of water charges pursuant to the G.O. No.474 dated 13.11.2001 for the water drawn for industrial purposes. The approximate amount under dispute is ' 594.89 Lakhs.
45.2. The Company has received a demand for payment of excise duty for ' 148.44 lakhs on the machineries purchased for cogeneration plant in Sugar Unit-II which have been cleared by the manufacturers based on the certificates alleged to have been forged by an Official in the Ministry of Finance. The Company has remitted the amount under protest. The company opted for obtaining a valid certificate for which steps have been taken through a writ petition filed in Hon'ble High Court of Madras.
proceedings of the above mentioned assessment years.
45.3 The Company has Income Tax demand of ' 139.36 lakhs for the assessment years from 2015-16 to 2018-19 and ' 358.45 lakhs for the assessment year 2021-22. The Company has filed appeal before Commissioner of Income Tax (Appeals) in respect of the income tax
COMMITMENTS
45.4. Estimated amount of contracts remaining to be executed on capital account - Tangible Assets not provided for is ' 4801.54 Lakhs (' 8120.07 lakhs).
NOTE 48. DISCLOSURE UNDER IND AS 19 Contd.... :
ii) DEFINED BENEFIT PLAN :
GRATUITY
The company provides the Gratuity benefit through annual contributions to the fund managed by Life Insurance Corporation of India (LIC).
The defined benefit plans expose to the actuarial risks such as:
a) Interest Rate Risk:
The present value of the defined benefit plan obligation is calculated using a discount rate determined by reference to government bond yields. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the obligation.
b) Salary Risk:
The present value of the defined benefit plan is calculated based on the salary of plan participants in the future. Accordingly, an increase in salary of the plan participants will increase the defined benefit obligation and will have an exponential effect.
c) Investment Risk:
The present value of the defined benefit plan obligation is calculated using a discount rate determined by reference to government bond yields. If there are significant changes in the discount rate during the inter valuation period, it can result in wide fluctuations in the net liability or plan assets.
d) Variability in mortality rates:
The present value of the defined benefit plan obligation is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. If actual mortality rates are higher than the assumed mortality rate assumption, there is a risk of payment of gratuity benefits earlier than expected.
The Company's principal financial liabilities includes borrowings, trade payable and other financial liabilities. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include investments, trade receivables, cash and cash equivalents, Bank Balance other than cash and cash equivalent, loans and other financial assets that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management under the supervision of Risk management committee / Board of Directors oversees the management of these risks and the appropriate financial risk governance framework for the Company. The senior management provides assurance that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives.
a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market price. Market risk comprises three types of risk: interest rate risk, currency risk and other risks, such as regulatory risk and commodity price risk. Financial Instruments affected by market risk includes investment, borrowings, trade receivable, trade payable and loans.
i) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's borrowings obligations with floating interest rate. Interest rate risk is managed by maintaining a combination of fixed and floating rate debt and cash management policies.
The carrying amount of Company's borrowings at the end of the reporting period is as under:
iii) Other price risk
Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. The Company is exposed to price risk arising mainly from investments in equity instruments recognised at FVTOCI. As at 31st March, 2024, the carrying value of such equity instruments recognised at FVTOCI amounts to ' 307.21 Lakhs (' 168.88 Lakhs). The details of such investments in equity instruments are given in Note No 5.
b) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument leading to a financial loss. Credit risk arising from trade receivables is managed in accordance with the Company's established policy, procedures and control relating to customer credit risk management. The Company had managed the credit risk with respect to trade receivables by selling majority of sugar sales covering minimal portion on credit basis.
The Company's exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties. The company manages the risk by credit
aprroval. Credit quality of a customer is assessed based on a detailed study of credit worthiness and accordingly individual credit limits are defined/modified.
The impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company's past history, existing market conditions as well as forward looking estimates at the end of each balance sheet date. The company has recognised provision for Expected Credit Loss on the financial assets in the statement of Profit & Loss.
Financial assets are written off when there is no reasonable expectation of recovery. However, the Company continues to attempt to recover the receivables and are recognised in the Statement of Profit and Loss when recovered.
c) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result for an inability to sell a financial asset quickly close to its fair value.
The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.
The objective of Capital Management is to safeguard its ability to continue as a going concern and optimise the returns to shareholders. Capital includes paid up equity capital, securities premium and all other equity reserves attributable to the equity shareholders of the Company and debt refers to Long Term Borrowings, Short Term Borrowings and Interest accrued thereon for the purpose of Capital Management of the Company.
The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements of the financial covenants. The capital structure of the Company consist of net debt and total equity of the Company.
In order to achieve this overall objectives, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. The Company has complied with these covenants and there have been no breaches in the financial covenants of any interest-bearing loans and borrowings.
NOTE 61. RECOGNITION OF LATE PAYMENT SURCHARGE (LPSC)
The Company has recognised Nil (' 3289.36 Lakhs) towards Late Payment surcharge (LPSC) upto 03.06.2022 on the receivable as on 31.03.2022 from TANGEDCO vide The Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 under Other Income. The total outstanding including LPSC will be paid by TANGEDCO in 48 monthly installments from August, 2022. The carrying amount of LPSC has been classified under Other Financial Assets in the Balance Sheet. The installments comprising receivables and LPSC beyond next twelve months is classified under non-current assets in the Balance sheet. The original due date of such trade receivables has been considered for the purpose of ageing schedule. The Expected Credit Loss on such receivables has been disclosed under Other Expenses in Statement of Profit & Loss.
NOTE 62. ADDITIONAL REGULATORY INFORMATION
i) Title Deed of Immovable Properties not held in the name of the Company:
All immovable properties of the Company are held in the name of the Company.
ii) Fair Value of Investment Property :
The Company as on the reporting date doesn't have any Investment Property.
iii) Revaluation of Property, Plant and Equipment :
The Company has not revalued the Property, Plant and Equipment during the year.
iv) Revaluation of Intangible Assets :
Not Applicable.
v) Loans and advances granted to Promoters, Directors, KMPs and the related parties :
The Company has not granted any loans to promoters, directors, KMPs and the related parties as defined under Companies Act, 2013 either jointly or severally with any other person that are repayable on demand or without specifying any terms or period of repayment.
vi) Capital Work-in-Progress :
The ageing schedule of Capital Work-in-Progress has been disclosed in Note No. 2 - Property, Plant and Equipment.
vii) Intangible Assets under development :
Not Applicable.
viii) Details of Benami Property :
Nil
ix) Reconciliation of Statement of Current Assets filed by the Company with banks for Working Capital facilities availed by the Company:
Name of the Bank : Punjab National Bank (Consortium Leader).
Particulars of Security Provided : Current Assets of Sugar and Granite Division.
x) Wilful Defaulter : The Company has not been declared wilful defaulter.
xi) Relationship with struck off companies : Nil
xii) Registration/ Satisfaction of charges with Registrar of Companies : The Company does not have any charges yet to be registered or file the satisfaction of charges with Registrar of Companies beyond the statutory period.
xiii) Layers of Companies : The Company does not have any subsidiary or associate company.
xiv) Approved Scheme of Arrangements: Nil
xv) Utilisation of Borrowed funds and Share premium:
A) 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 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 provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
B) 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 Group shall 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 provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
NOTE 63. Previous year's figures have been regrouped / reclassified wherever necessary.
NOTE 64. EVENTS OCCURING AFTER BALANCE SHEET DATE - PROPOSED DIVIDEND
The Board of Directors at its meeting held on 23rd May 2024 has recommended a payment of final dividend of ' 12.50/- per equity share for the year ended 31st March, 2024 amounting to ' 1567.46 lakhs.
The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognised as a liability.
NOTE 65. APPROVAL OF FINANCIAL STATEMENTS
The Financial statements are reviewed and recommended by Audit Committee and approved for issue by the Board of Directors at their meeting held on 23rd May 2024.
As per our report of even date attached
For P N RAGHAVENDRA RAO & CO., S V BALASUBRAMANIAM B SARAVANAN
Chartered Accountants - Firm Regn No. : 003328S Chairman Managing Wredoc
DIN 00002405 DIN 00002927
P. R. VITTEL
Partner
M No 018111 C PALAN>SWAMY M RAMPRABHU
Company Secretary Chief Financial Officer
Place : Coimbatore Date : 23.05.2024
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