| 1. Corporate Information :
The Company is the owner of "Khaitan" Brand and getting royalty from
its users. The Company is manufacturer of Sugar and also cultivates
sugarcane in its captive farms for utilizing the same for manufacturing
sugar in its factory.
(a) There has been no change /movements in number of Shares outstanding
at the beginning and at the end of the Reporting period .
(b) The company has only one class of issued shares i.e. Equity Share
having par value of Rs. 10/- per share . Each holder of Equity Shares is
entitled to one vote per share and equal right for dividend . In the
event of liquidation, the equity shareholders are eligible to receive
the remaining assets of the company after payment of preferential
amounts , in proportion to their share holding.
Details of Security
A) Term Loan from IDBI Bank under the " Scheme for extending financial
assistance to Sugar undertaking 2014" is secured by hypothecation of
stocks, book debts, standing crops ,stores & spares and all other
current assets and mortgage of agricultural land measuring about
2067.21 Acres and entire fixed assets of sugar division of the company,
present & future and personal guarantee of a Director.
B) Loan from Sugar Development Fund is secured by charge on specified
assets and guaranteed by a Director of the Company .
Terms of Repayment of Secured Term Loans
I) Term loan from IDBI Bank is repayable in 36 monthly instalments
staring from September , 2016 . The rate of interest is BASE BANK RATE
(BBR) 350 Bps (current BBR is 10.25% p.a) . Any delay will attract
panel interest @ 2% p.a. and also liquidated damages in case of
default.
II) Loan from Sugar Development Fund for Rs. 287.55 laks was sanctioned
on 31-03-1992 to be disbursed in 3 instalments upto 31-03- 1995.
However, only one instalment of Rs. 132.19 lakhs was disbursed.
Initially rate of interest was 9% p.a. and penal interest was 2.5%
above normal rate of interest. The interest rate was later revised to
4.5% and again to 7.5%. There was a moratorium of 3 years Repayment of
Principal was to be made in 4 equal annual instalment after expiry of
moratorium period and interest on loan was payable annually. At present
amount due on principal account is Rs. 8563117 (Previous year Rs.
8563117) and Rs.25431195 (previous year Rs.23407341 towards interest.
The Company has sent a proposal to Sugar Development Fund for
concession/waiver of interest which is pending. Inerest on loan of
Rs.2023854 for the year (previous Year Rs.1648081) has been provided as
per agreement.
The Company has defaulted in repayment of loan and interest in respect
of the following
The loan from Sugar Development fund of Rs. 132.19 lacs was repayable in
4 annual instalments by 1999. There is a continous default now.
Principal amount of Rs. 46,56,883 has been paid and balance amount due
is Rs. 8563117 as on 31-03-2015 and interest due is Rs.25431195 as on
31.03.2015.
There are no Micro, Small, Medium Enterprises, as defined in the Micro,
Small, Medium Enterprises Development Act, 2006, to whom the company
owes dues on account of principal amount together with interest and
accordingly no additional disclosures have been made. The above
information regarding Micro, Small and Medium Enterprises has been
determined to the extent such parties have been identified on the basis
of information available with the company.
3. DEFERRED TAX
a) Net Deferred tax assets as on 31.03.2015 is Rs 45500973/-(Previous
year Rs.8,71,23,847/-) in accordance with Accounting Standard 221
'Accounting for taxes on Income' issued by ICAI. Out of above Deferred
tax assets of Rs. 12857222/-(Previous Year Rs. 5,44,80,096/- for the
year has not been recognised by the Company due to uncertainty on
prudence basis and opening Deferred Tax Assets of Rs.3,26,43,751/- has
been kept in Balance Sheet.
4. Contingent Liabilities, not provided for, in respect of:
i) Guarantee/Sureties given by the Company
for its Business Associates 3,250,000 3,250,000
ii) Counter Guarantee against Guarantees
given by the bank to various authorities 2,728,172 2,728,172
iii) Estimated liabilities for Sales Tax
relating to earlier years 9,487,225 9,487,225
iv) Income tax matters for earlier
years (under appeals) 22,921,244 32,570,557
5(A) Secondary Segment Information
The Company operates exclusively in the Indian Market and as such there
are no reportable geographical segments.
(B) Other Discloser
The Company's operation predominantly relate to Sugar and Other
products relating to sugar manufecturing .
Accordingly these busness segments comprise the primary basis of
segmental information set out in the financial statements. The
acoounting policies adopted for segment reporting are in line with the
accountng policy of the Company .
6.TRANSACTION WITH RELATED PARTIES
A) Name of the related party and description of relationship :
Related Party Relationship
Khaitan Electricals Limited Associates
The Oriental Mercantile Company Ltd. Associates
Khaitan Lefin Limited Associates
Mr. S.Bafna Executive Director
Seth chiranjilal Khaitan Trust Associates
7. Disclosure of employee benefits is as under:-
i. Defined Benefit Plan:
Post employment and other long-term employee benefits in the form of
gratuity and leave encashment are considered as defined benefit
obligation. The present value of obligation is determined based on
actuarial valuation using projected unit credit method as at the
Balance Sheet date. The amount of defined benefit recognised in the
Balance Sheet represent the present value of the obligation as adjusted
for unrecognised service cost, and as reduced by the fair value of plan
assets.
a. Basis of estimates of rate of escalation in salary.
The estimates of rate of escalation in salary considered in actuarial
valuation, takes into account inflation, seniority, promotion and other
relevant factors including supply and demand in the employment market.
The above information is certified by the actuary.
b. The Expenses have been recognized in "Contribution to Provident &
Other Funds" in "Salaries/Wages and Bonus" Schedule.'
8. The Compnay is not paying to LIC for gratuity fund. However the
Company is also not regular in making payment of Gratuity due to its
employess who have been retired from the company.
9. There is no impairmrnt of assets during the year.
10. No Borrowing cost have been capitalised during the year.
11. Advances, Debtors and creditors balances are subject to
confirmation.
12. Previous year figures have been regrouped/ rearranged/reclassified
wherever necessary
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