2.5.11 Provisions:
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a
past event, Itis probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects
some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is
recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a
provision is presented in the statement of profit and loss net of any reimbursement.
Provisions are not discounted to their present value and are determined based on the best estimate required to
settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to
reflect the best estimate.
Contingent Liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or
a present obligation that is not recognized because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises in extremely rare cases, where there is a
liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a
contingent liability but discloses its existence in the financial statements unless the probability of outflow of
resources is remote.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.
2.5.12 Employee Benefits:
2.5.12.1Short term obligations:
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within
12 months after the end of the period in which the employees render the related service are recognized in
respect of employee's service up to the end of reporting period and are measured at the amounts expected to be
paid when the liabilities are settled. The liabilities are presented as current employee benefit obligation in the
balance sheet.
2.5.12.2 Other Long term employee benefit obligations:
The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service. They are therefore measured based on the actuarial
valuation using projected unit credit method at the year end. The benefits are discounted using the market
yields at the end of the reporting period that have terms approximating to the term of the related obligation.
Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognized in
profit or loss.
2.5.12.3 Post-employment obligations: The Company operates the following post-employment schemes:
2.5.12.3.1 Defined benefit plans such as gratuity; and
2.5.12.3.2 Defined contribution plans such as provident fund.
Gratuity Obligations:
Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on
projected unit credit method made at the end of each financial year. The Company has also made contribution
to Life Insurance Corporation (LIC) and SBI Life Insurance Company Limited towards a policy to cover the
gratuity liability of the employees to an extent. The difference between the actuarial valuation of the gratuity of
employees at the year-end and the balance of funds with LIC is provided for as liability in the books.
Remeasurements, (refer note no. 28D) comprising of actuarial gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on the net defined benefit liability and the return on plan assets
(excluding amounts included in net interest on the net defined benefit liability), are recognized immediately in
the Balance Sheet with a corresponding debit or credit to retained earnings through OCI in the period in which
they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.
Net interest is calculated by applying the discount rate to the net defined benefit (liabilities/assets). The
Company recognized the following changes in the net defined benefit obligation under employee benefit
expenses in statement of profit and loss
i. Service cost comprising current service cost, past service cost, gain & loss on curtailments and non-routine
settlements.
ii. Net interest expenses or income
2.5.13 Revenue Recognition:
The Company earns revenue primarily from sales of sugar, ethanol and power.
Revenue is recognized upon transfer of control of promised products or services to customers in an amount
that reflects the consideration which the Company expects to receive in exchange for those products or
services.
Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts,
price concessions and incentives, if any, as specified in the contract with the customer. Revenue also excludes
taxes collected from customers.
Contract assets are recognized when there is excess of revenue earned over billings on contracts.
Contract assets are classified as unbilled receivables (only act of invoicing is pending) when there is
unconditional right to receive cash, and only passage of time is required, as per contractual terms.
Unearned and deferred revenue ("contract liability”) is recognized when there is a billing in excess of revenues.
Contracts are subject to modification to account for changes in contract specification and requirements. The
Company reviews modification to contract in conjunction with the original contract, basis which the transaction
price could be allocated to a new performance obligation, or transaction price of an existing obligation could
undergo a change. In the event transaction price is revised for existing obligation, a cumulative adjustment is
accounted for.
Interest income:
For all debt instruments measured either at amortized cost or at fair value through other comprehensive
income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts
the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter
period, where appropriate, to the gross carrying amount of the financial asset or to the amortized cost of a
financial liability. When calculating the effective interest rate, the company estimates the expected cash flows
by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call
and similar options) but does not consider the expected credit losses. Interest income is included in finance
income in the statement of profit and loss.
Use of significant judgments in revenue recognition
Ý The Company's contracts with customers could include promises to transfer multiple products to a
customer. The Company assesses the products promised in a contract and identifies distinct performance
obligations in the contract. Identification of distinct performance obligation involves judgement to
determine the deliverables and the ability of the customer to benefit independently from such deliverables.
Ý Judgement is also required to determine the transaction price for the contract. The transaction price could
be either a fixed amount of customer consideration or variable consideration with elements such as
volume discounts, price concessions and incentives. The transaction price is also adjusted for the effects of
the time value of money if the contract includes a significant financing component. Any consideration
payable to the customer is adjusted to the transaction price, unless it is a payment for a distinct product or
service from the customer. The estimated amount of variable consideration is adjusted in the transaction
price only to the extent that it is highly probable that a significant reversal in the amount of cumulative
revenue recognized will not occur and is reassessed at the end of each reporting period. The Company
allocates the elements of variable considerations to all the performance obligations of the contract unless
there is observable evidence that they pertain to one or more distinct performance obligations
Ý The Company uses judgement to determine an appropriate standalone selling price for a performance
obligation. The Group allocates the transaction price to each performance obligation on the basis of the
relative stand-alone selling price of each distinct product promised in the contract. Where standalone
selling price is not observable, the Company uses the expected cost plus margin approach to allocate the
transaction price to each distinct performance obligation.
Ý The Company exercises judgement in determining whether the performance obligation is satisfied at a
point in time or over a period of time. The Company considers indicators such as who controls the asset as
it is being created or existence of enforceable right to payment for performance to date and alternate use of
such product, transfer of significant risks and rewards to the customer, acceptance of delivery by the
customer, etc.
2.5.14 Leases
Company as a Lessee
The Company, as a lessee, recognises a right-of-use of asset and a lease liability for its leasing arrangements, if
the contract conveys the right to control the use of an identified asset. The contract conveys the right to control
the use of an identified asset, if it involves the use of an identified asset and the Company has substantially all of
the economic benefits from use of the asset and has right to direct the use of the identified asset. The cost of the
right-of-use asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any
lease payments made at or before the commencement date plus any initial direct costs incurred. The right-of-
use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment
losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use asset is depreciated
using the straight-line method from the commencement date over the shorter of lease term or useful life of
right-of-use asset.
The Company measures the lease liability at the present value of the lease payments that are not paid at the
commencement date of the lease. The lease payments are discounted using the interest rate implicit in the
lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses
incremental borrowing rate. For short-term and low value leases, the Company recognizes the lease payments
as an operating expense on a straight-line basis over the lease term.
Company as a Lessor
Lease income from operating lease where the Company is a lessor is recognized in income or a straight line
basis over the lease term unless the receipts are structured to increase in line with expected general inflation to
compensate the lessor for the expected inflationary cost increases. The respective leased assets are included in
the balance sheet based on their respective nature.
Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer
from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables as
the Company's net investment in the leases. Finance lease income is allocated to accounting periods to reflect a
constant periodic rate of return on the net investment outstanding in respect of the lease.
2.5.15 Fair Value Measurement
The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based on the
presumption that the transaction to sell the asset or transfer the liability takes place either:
i. In the principal market for the asset or liability, or
ii. In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant
that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient date
are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:
a. Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
b. Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
c. Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.
The Company's management determines the policies and procedures for both recurring and non-recurring fair
value measurement, such as derivative instruments measured at fair value.
External valuers are involved for valuation of significant assets, such as properties and financial assets and
significant liabilities. Involvement of external valuers is decided upon annually by the management. The
management decided, after discussions with the Company's external valuers which valuation techniques and
inputs to use for each case.
At each reporting date, the management analyses the movements in the values of assets and liabilities which
are required to be remeasured or re-assessed as per the Company's accounting policies.
The management in conjunction with the Company's external valuers, also compares the change in the fair
value of each asset and liability with relevant external sources to determine whether the change is reasonable.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as
explained above.
2.5.16 Borrowing Costs:
Borrowing cost includes interest expense as per effective interest rate [EIR]. Borrowing costs directly
attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as part of the cost of the asset until such time that
the asset are substantially ready for their intended use. Where funds are borrowed specifically to finance a
project, the amount capitalized represents the actual borrowing incurred. Where surplus funds are available
out of money borrowed specifically to finance project, the income generated from such current investments is
deducted from the total capitalized borrowing cost. Where funds used to finance a project form part of general
borrowings, the amount capitalized is calculated using a weighted average of rate applicable to relevant general
borrowing of the Company during the year. Capitalisation of borrowing cost is suspended and charged to profit
and loss during the extended periods when the active development on the qualifying project is interrupted. All
other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and
other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes
exchange differences arising from foreign currency borrowings to the extent that they are regarded as an
adjustment to the borrowing costs.
2.5.17 Impairment of Non-Financial Assets:
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing for an asset is required, the Company estimates the
asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's
(CGU) fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that
are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or
CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable
amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset.
In determining fair value less costs of disposal, recent market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by
valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.
The Company basis its impairment calculation on detailed budgets and forecast calculations, which are
prepared separately for each of the Company's CGUs to which the individual assets are allocated. These budgets
and forecast calculations generally cover a period of five years. For longer periods, a long-term growth rate is
calculated and applied to project future cash flows after the fifth year. To estimate cash flow projections beyond
periods covered by the most recent budgets/forecasts, the Company extrapolates cash flow projections in the
budget using a steady or declining growth rate for subsequent years, unless an increasing rate can be justified.
In any case, this growth rate does not exceed the long-term average growth rate for the products, industries, or
country or countries in which the entity operates, or for the market in which the asset is used.
Impairment losses of operations, including impairment on inventories, are recognized in the statement of profit
and loss, except for properties previously revalued with the revaluation surplus taken to OCI. For such
properties, the impairment is recognized in OCI up to the amount of any previous revaluation surplus.
After impairment depreciation is provided on the revised carrying amount of the asset over its remaining
economic life.
An assessment is made in respect of assets at each reporting date to determine whether there is an indication
that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the
Company estimates the asset's or CGU's recoverable amount. A previously recognized impairment loss is
reversed only if there has been a change in the assumptions used to determine the asset's recoverable amount
since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset
does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net
of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is
recognized in the statement of profit or loss unless the asset is carried at a revalued amount, in which case, the
reversal is treated as a revaluation increase.
2.5.18 Government Grants:
Government grants are recognized where there is reasonable assurance that the grant will be received and all
attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income
on a systematic basis over the periods that the related costs, for which it is intended to compensate, are
expensed. When the grant relates to an asset, it is recognized as income in equal amounts over the expected
useful life of the related asset. However, if any export obligation is attached to the grant related to an asset, it is
recognized as income on the basis of accomplishment of the export obligation.
When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair value
amounts and released to profit or loss over the expected useful life in a pattern of consumption of the benefit of
the underlying asset i.e. by equal annual installments.
2.5.19 Earnings per share
Basic and diluted earnings per Equity Share are computed in accordance with Indian Accounting Standard 33
'Earnings per Share', notified accounting standard by the Companies (Indian Accounting Standards) Rules of
2015 (as amended). Basic earnings per share is calculated by dividing the net profit or loss attributable to
equity holder of company (after deducting preference dividends and attributable taxes, if any) by the weighted
average number of equity shares outstanding during the period. Partly paid equity shares are treated as a
fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid
equity share during the reporting period. The weighted average number of equity shares outstanding during
the period is adjusted for events such as bonus issue, bonus element in a right issue, share split, and reverse
share split (consolidation of shares) that have changed the number of equity shares outstanding, without a
corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss; for the period attributable to
equity shareholders of the company and the weighted average number of shares outstanding during the period
are adjusted for the effects of all dilutive potential equity shares.
2.5.20 Segment Reporting:
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker (CODM).
The Board of Directors (BOD) of the Company has appointed an executive committee which assesses the
financial performance and the position of the Company, and makes strategic decisions. The executive
committee, which has been identified as being the CODM, consists of the Managing Director, Director and Chief
Financial Officer for corporate planning.
Note: Nature of Securities for the aforesaid secured loans repayable on demand
(a) Zila Sahakari Bank Limited Ghaziabad - For Units in Uttar Pradesh
Working Capital loans from Zila Sahakari Bank Ltd. Ghaziabad are secured by pledge of crystal sugar and hypothecation of
all other current assets at Sugar Units in District Moradabad and Rampur (UP) respectively.
(b) UCO Bank - For Units in District Amritsar & Tarantaran
Working Capital Loans from UCO Bank are secured by hypothecation of stocks of raw materials, Stock in process and
finished goods lying in the borrower's godowns, factory situated at Punjab Units, Stock-in-transit and Stock lying at other
places with prior permission of the bank. The limits are further secured by hypothecation of Trade receivables
(c) Union Bank of India - For Units in District Amritsar & Tarantaran
Overdraft limit from Union bank of India is secured against fixed deposit exclusively in favour of bank.
(d) Uttar Pradesh Co-op. bank Limited, Lucknow - For Units in Uttar Pradesh
Working capital limits from Uttar Pradesh Co-op. bank Limited, Lucknow are secured by pledge of sugar stock at sugar units
in district Moradabad and Rampur respectively and stock of Finished Goods & Raw Material related to Ethanol lying at
Distillery unit in district Moradabad. The limits are also secured by hypothecation of current assets of the company on first
pari-passu charge basis with IREDA, UCO Bank and Zila Sahakari Bank Limited, Ghaziabad except for trade receivables of
Power relating to Uttar Pardesh Power Corporation Limited which are charged exclusively in favour of IREDA and sugar
stock pledged to Zila Sahakari Bank Limited, Ghaziabad.
(e) Overdraft limit from ICICI Bank is secured against fixed deposit exclusively in favour of bank.
(f) Working Capital Loans from Banks are further secured by personal guarantee of promoters / directors.
These are the estimated figures in respect of the matter above and future cash outflows are determinable only on
receipt of judgement / decisions pending at various forum/ authorities and subject to the demand of interest and
possible waivers granted by the respective authorities.
f) Securities & Exchange Board of India Conducted an investigation into the affairs of the Company to examine any
diversion of funds to promoters & promoters related entities, resulting in violation of SEBI - LODR Regulations
and passed an order against the company and levied a Penalty on the Company Rs.7.00 crores. The Company has
challenged the alleged order before Securities Appellate Tribunal (SAT). SAT has passed an order conveyed that
no coercive action should be taken against the Company till the disposal of appeal. The Company foresee no
financial impact in near term on the cash flows of the company.
g) Financial Guarantees
The Company has given guarantees for term loan availed by a Company in which relative of the Directors were
interested. The maximum amount guaranteed is INR 7440 Lakhs (P.Y. INR 9956 Lakhs). The carrying amount of
the related financial guarantees contract were INR 501.03 Lakhs at 31 March 2025. (P.Y. INR 783.50 Lakhs).
B. Commitments
a) Bank Guarantees/LC's issued INR 485.38 Lakhs (Previous Year INR 466.87 Lakhs) are secured by pledge of FDRs of
INR 128.59 Lakhs (Previous Year INR 127.33Lakhs) given by the Company.
b) The estimated amount of contracts remaining to be executed on capital account sand not provided
(INR in Lakhs)
C. Terms and Condition and Settlement
The transactions with the related parties are made on term equivalent to those that prevail in the arm's length
transactions. The assessment is under taken each financial year through examining the financial position of the
related party and in the market in which the related party operates.
30. DEFERRED TAX:
The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets
and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the
same tax authority.
During the year the Company has recognized Deferred tax liability of INR 645.61Lakhs. (P.Y- INR 330.72 Lakhs)
31. EMPLOYEE BENEFITS
The Company has a defined benefit gratuity plan. Under Gratuity Plan, every employee who has completed five years or
more of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service.
The gratuity plan is governed by the Payment of Gratuity Act, 1972. The level of benefits provided depends on the
member's length of service and salary at retirement age. The Company has purchased insurance policy, which is
basically a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed
for a period of one year. The insurance Company, as part of the policy rules, makes payment of all gratuity outgoes
happening during the year (subject to sufficiency of funds under the policy). The policy, thus, mitigates the liquidity risk.
However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus,
the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should
result in a increase in liability without corresponding increase in the asset.
Description of Risk Exposures
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is
exposed to various risks as follow:
i) Salary Increases- Actual salary increases will increase the Plan's liability. Increase in salary increase rate
assumption in future valuations will also increase the liability.
ii) Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan's liability.
iii) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can
impact the liabilities.
iv) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than
the discount rate assumed at the last valuation date can impact the liability
32. SEGMENT INFORMATION:
A. Description of the segments and principal activities:
The Company's executive committee examines the Company's performance from a product and geographic perspective
and has identified three reportable segments of its business:
a. Sugar Manufacturing: (India - Punjab and Uttar Pradesh)
This part of the business manufactures and sells sugar, molasses and bagasse. Whereas sugar is main product; others
are the bye products and are produced at various stages of the production of the sugar. The Company has sugar
manufacturing facilities at three locations in India viz. Buttar (Punjab), Moradabad and Rampur (Uttar Pradesh). The
committee monitors the performance in the respective region separately. While the committee receives separate
reports for each region, the facilities have been aggregated in to one reportable segment as they have similar average
gross margins and similar expected growth rates.
b. Ethanol/ENA Manufacturing: (India - Punjab and Uttar Pradesh)
This part of business manufactures Ethanol & Liquor. The basic raw material for Ethanol & Liquor is molasses and grain.
At present the company has two manufacturing facilities in India viz Laukha (Punjab), Belwara (Uttar Pradesh). At
Laukha, Punjab location the company is manufacturing Ethanol as well as liquor whereas at Belwara Uttar Pradesh
manufacturing facility the company is manufacturing Ethanol only.
c. Power Generation: (India - Punjab and Uttar Pradesh)
This part of the business consumes the bye product bagasse from sugar process and co generates the power. The
segment also procures fuel from outside to generate power. After meeting the captive requirements of the respective
sugar unit the power is exported the respective State Grids under long term Power Purchase Agreements (PPA).
scheme will be eligible for the interest subvention @6% per annum or 50% of the rate of interest charged by bank,
whichever is lower, on the loans to be extended by banks, shall be borne by Central Government for five years.
Till March 31, 2025, the Company has complied with all the conditions as stated in the scheme and submitted the claim
for interest subvention. Accordingly, interest subvention accrued under the Scheme till March 31, 2025 by Rs.263.58
Lakhs and out of which Rs. 129.80 Lakhs has been received till March 31, 2025.
35. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company has instituted an overall risk management programme which also focuses on the unpredictability of
financial markets and seeks to minimize potential adverse effects on the Company's financial performance. Financial risk
management is carried out by Finance department under policies approved by the Board of Directors from time to time.
The Finance department, evaluates and hedges financial risks in close co-operation with the various stakeholders. The
Board of Directors approves written principles for overall financial risk management, as well as written policies covering
specific areas, such as credit risk, use of derivative financial instruments and non-derivative financial instruments.
The Company is exposed to market risk, credit risk and liquidity risk. These risks are managed pro-actively by the Senior
Management of the Company, duly supported by various Groups and Committees.
(a) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
Company employs prudent liquidity risk management practices which inter alia means maintaining sufficient cash
and the availability of funding through an adequate amount of committed credit facilities. Given the nature of the
underlying businesses, the corporate finance maintains flexibility in funding by maintaining availability under
committed credit lines and this way liquidity risk is mitigated by the availability of funds to cover future
commitments. Cash flow forecasts are prepared and the utilized borrowing facilities are monitored on a daily basis
and there is adequate focus on good management practices whereby the collections are managed efficiently. The
Company while borrowing funds for large capital project, negotiates the repayment schedule in such a manner that
these match with the generation of cash on such investment. Longer term cash flow forecasts are updated from time
to time and reviewed by the Senior management of the Company.
The table below represents the maturity profile of Company's financial liabilities at the end March 31, 2025 and
March 31, 2024 based on contractual undiscounted payments: -
(b) Credit Risk
Credit Risk is the risk that the counter party will not meet its obligation 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) including deposits with banks, foreign exchange transactions and other financial assets.
(i) Trade receivables
Customer credit risk is managed subject to the Company's established policy, procedures and control
relating to customer credit risk management. Management evaluate credit risk relating to customers on an
ongoing basis. Receivable control management team assess the credit quality of the customer, taking into
account its financial position, past experience and other factors. Outstanding customer receivables are
regularly monitored. An impairment analysis is performed at each reporting date on group\category basis.
The calculation is based on exchange losses, historical data and available facts as on date of evaluation.
Trade receivables comprise a customer base including Sugar dealers, state electricity board, oil
manufacturing companies apart from related to distillery. The Company evaluates the concentration of risk
with respect to trade receivables as low, as its customers are located in several jurisdictions and industries
and operate in largely independent markets.
(ii) Financial instruments and cash deposit
Credit risk from balances with banks and financial institutions is managed by the Company's Finance
department team in accordance with the Company's policy. The limits are set to minimize the
concentration of risks and therefore mitigate financial loss through counter party's potential failure to
make payments. Credit limits of all authorities are reviewed by the management on regular basis. All
balances with banks and financial institutions is subject to low credit risk due to good credit ratings
assigned to the Company.
(c) 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 prices. Market risks comprises three types of risk: currency rate risk, interest rate risk and
other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market
risks include loans and borrowings. The sensitivity analyses in the following sections relate to the position as at
March 31, 2025 and March 31, 2024. The analyses exclude the impact of movements in market variables on; the
carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and
liabilities. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the
respective market risks. This is based on the financial assets and financial liabilities held as of at March 31, 2025
and March 31, 2024.
(d) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange
rates relates primarily to the Company's operating activities (when revenue, expense or capital expenditure is
denominated in foreign currency). The company is not exposed to material foreign currency risk.
(e) Interest rate risk
Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates
primarily to the Company's debt obligation at floating interest rates which is not material.
(f) Commodity price risk
The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing
purchase of raw material and therefore requires a continues supply. The Company operations may impact due to
changes in prices of those raw materials.
36. CAPITAL MANAGEMENT
For the purpose of the Company's capital management, capital includes issued equity attributable to the equity
shareholders of the Company, Liability Component of compound financial instrument (CFI), security premium and all
other equity reserves. The primary objective of the Company's capital management is that it maintains an efficient capital
structure and maximize the shareholder value. The Company manages its capital structure and makes adjustments in light
of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital
structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new
shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The
Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents, other bank
balances.
38. The Directorate of Enforcement (ED), Jalandhar, ordered the seizure of immovable properties worth Rs.22.02
Crore held in the name of M/s Rana Sugars Limited (RSL) situated at Village Buttar Seviyan Tehsil Baba Bakala
India, within the power conferred under the provision of section 37A (1) of the Foreign Exchange management
Act (FEMA), 1999 for having reason to believe that RSL holds foreign exchange outside India in contravention of
Section 4 of FEMA. 1999.
However, there is no Financial implication in short term. Further, the company has a strong case to defend and
has filed appeal against the said order before the competent authority.
39. COMPANY AS A LESSEE
As required by Ind AS 116 'Lease' the company has recognized "right of use” assets which have been amortized over the
term of lease. Further, finance cost in respect of corresponding lease liabilities has been measured and considered in these
financial statement
The Company's lease asset class primarily consist of leases for Plant & Machinery & vehicles
The Company applied the exemption not to recognize Right-of-use assets and liabilities for leases with less than 12
months of lease term on the date of initial application.
Depreciation charge for Right-of-use assets is included under depreciation and amortization expense in the Statement of
Profit and Loss. Further, to above, the Company has certain lease arrangement on short term basis, expenditure on which
has been recognized under line item "Rent” under Other expenses. The effect of adoption of IND AS 116 'Leases' is not
material on the profit before tax, profit for the year and earnings per share.
(v) Previous year figures have been recasted/regrouped/rearranged wherever necessary to make them
comparable with that of current year.
(vi) Additional Regulatory Information
(a) Title deeds of all the immovable properties (other than the properties where the company is the lessee and
the lease agreements are duly executed in favour of the lessee) are held in the name of the company. Further,
the company does not hold any immovable property jointly with others.
(b) The company has not revalued its Property, Plant and Equipment during the financial year 2024-25.
Therefore, the disclosure as to whether the revaluation is based on the valuation by a registered valuer as
defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017 is not required.
(c) The company has not granted any Loan or Advances in the nature of loans to Promoters, Directors, KMPs and
related parties (as defined under the Companies Act 2013) either severally or jointly with any other person,
that are Repayable on demand or are Without specifying any terms or period of repayment.
(d) No proceedings have been initiated or pending against the company for holding any benami property under
the Benami Transactions (Prohibitions) Act, 1988 and rules made thereunder.
(e) The company has borrowed working capital facilities from Uttar Pradesh Co-operative Bank Limited Zila
Sahakari Bank Limited Ghaziabad and UCO Bank on the basis of security of current assets and the quarterly
returns or statements of current assets filed with the said banks are in agreement with the books of accounts.
(f) The company is not declared by any bank or financial institutions or other lender as a willful defaulter.
(g) The company has not entered into any transaction with the companies stuck off under section 248 of the
companies Act, 2013.
(h) The company has filed registration of charges or satisfaction with the registrar of companies within the
statutory period as per the Companies Act, 2013.
(i) The company has not traded or invested in crypto currency or virtual currency during the financial year.
(j) Key Ratio
Rana Veer Pratap Singh Rana Ranjit Singh Gaurav Garg Madhur Bain Singh
Managing Director Director Chief Financial Officer Company Secretary
(DIN 00076808) (DIN 00076770)
As per our report of even date attached
For Ashwani K. Gupta & Associates
Chartered Accountants
Munish Goel
Place : Chandigarh Partner
Dated : May 29, 2025 Membership No. : 553043
UDIN : 23553043BKABNB7173 FRN : 003803N
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