(q) Provisions
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Provisions are not recognised for future operating losses.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the
present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax
rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase
in the provision due to the passage of time is recognised as interest expense.
(r) Tax Expense
The tax expense for the period comprises current and deferred tax. Tax is recognised in the Statements of Profit and Loss,
except to the extent that it relates to items recognised in the other comprehensive income or directly in equity. In which
case, the tax is also recognised in other comprehensive income or directly in equity respectively.
- Current tax
Current tax assets and liabilities for current and prior periods are measured at the amount expected to be recovered
from or paid to the taxation authorities, based on tax rates and tax laws that are applicable to the Company.
- Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply to the period when 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 carrying amount of deferred tax liabilities and assets are reviewed
at the end of each reporting period.
Deferred tax relating to items recognized outside the Statements of Profit and Loss are recognized outside the
Statements of Profit and Loss, either in other comprehensive income or directly in equity.
- Minimum Alternate Tax (MAT)
MAT is recognised as an asset only when and to the extent there is convincing evidence that the Company will
pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to
be recognised as an asset in accordance with the recommendations contained in the Guidance Note issued by
ICAI, the said asset is created by way of a credit to the Statements of Profit and Loss and is shown as MAT credit
entitlement. The Company review the same at each balance sheet date and writes down the carrying amount of
MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay
normal income tax during the specified period
(s) Segment Reporting
The segments are in line with the reporting done to the Chief Operating Decision maker which is the Board of Directors.
Inter segment transactions have been accounted for based on the price which has been arrived at considering cost plus
appropriate margins. Revenue and expenses that are directly identifiable with or allocable to segments are considered
for determining the segment results. Segment assets and liabilities include those directly identifiable with the respective
segments. Business segments are identified on the basis of the nature of products, the risk/return profile of the individual
business, the organizational structure and the internal reporting system of the Company.
(t) Employee Benefits
Short Term Employee Benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by
employees are recognised as an expense during the period when the employees render the services.
Post-Employment Benefits
Defined Contribution Plans
A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions
to a separate entity. The Company makes specified monthly contributions towards the Provident Fund, Superannuation
Fund and Pension Scheme. The Company's contribution is recognised as an expense in the Statements of Profit and Loss
during the period in which the employee renders the related service.
Defined Benefit Plans
The Company pays gratuity to the employees whoever has completed five years of service with the Company at the
time of resignation/superannuation. The gratuity is paid @15 days salary for every completed year of service as per the
Payment of Gratuity Act 1972.
The gratuity liability amount is contributed to the approved gratuity fund formed exclusively for gratuity payment to the
employees. The gratuity fund has been approved by respective IT authorities.
The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit
Method and spread over the period during which the benefit is expected to be derived from employees' services.
Re-measurement of defined benefit plans in respect of post-employment are charged to the Other Comprehensive
Income.
(u) Contingent Liabilities and Contingent Assets
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 not wholly within the control of the company
or a present obligation arising from past events that is not recognized because it is not probable that an outflow of
resources embodying economic benefits 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.
Contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company.
Contingent assets are neither recognized nor disclosed, in the financial statements except there is a virtual certainty to
receive the same.
(v) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less from the date of acquisition, which are subject to an insignificant risk of changes
in value.
(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%.
This Modernisation Term Loan has got settleld through One Time Settlement (OTS) duirng the current FY 2025-26,
with intrest write-back to the extent of ' 110.32 Lakh (Refer note no. 45)
(ii) Other Employee Benefit
The liability for leave entitlement is ' 141.55 Lakhs (P.Y. ' 171.94 Lakhs) disclosed under Long Term Provision
(Refer Note No. 18) and Short-Term Provision (Refer Note No. 25)
(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.
40. 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.
Liquidity Risk
The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of
bank loans and unsecured loans.
The table below provides details regarding the maturities of significant financial liabilities as of March 31, 2026
and March 31,2025.
Capital Management
FFor 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.
42. FAIR VALUE HIERARCHY
Some of the Company's financial assets and financial liabilities are measured at fair value at the end of each reporting
period. The following table presents fair value hierarchy of financial assets and financial liabilities measured at fair value
on a recurring basis:
45. During the year, Sugar Development Fund (SDF) had sanctioned a One Time Settlement (OTS) pursuant to the scheme
notified vide notification dated 24.03.2021 under rule 26 of the SDF rules 1983 for the Modernisation Term Loan availed
by the Company. The company has duly paid the entire OTS amount as per OTS sanction terms. Accordingly, the penal
interest levied on the said loan had been waived under the scheme and Company has given the accounting effect in the
books by writing back of liabilities amounting to ' 110.32 Lakhs towards the penal interest waived off which is included
in Other Income for the Year.
46. The Company had certain stocks of IMFL which was to be destroyed, subject to the approval of Delhi Excise authorities.
Due to the pendency of the approval, the godown where the stock was stored could not be vacated. The landlord was
demanding higher rates which the company could not afford to pay and the Company was negotiating the rent charges
with the landlord since FY 2014-15. Accordingly, due to the uncertainty on the rent amount, the said rent was neither
paid nor provided in the books of accounts and accordingly the Company could not create any Right of Use asset and
Lease liability as required under IndAS 116 upto FY 2024-25. During the current year, the settlement was reached
between the landlord and the Company; and the Company has provided ' 43.20 lakhs towards godown rent and ' 0.86
lakhs towards the electricity charges.
47. The Company had received advance aggregating to ' 1,289.50 lakhs from M/s Allied Plus Infra & Others Private Limited
towards sale of land measuring 4.0936 hectares, at village Bandia in earlier years. However, due to some dispute the
matter was referred for Arbitration where the Company had reached to a Settlement Agreement (SA) dated 15.12.2023
with M/s Allied Plus Infra and Others Pvt. Ltd. Rudrapur for an amount of Rs. 49 Cr, subject to actual measurement of
land. This SA was confirmed by award of Sole Arbitrator Justice (Retd) Kurian Joseph dated 16.10.2025. In compliance
of the same M/s Allied Plus Infra and Others Pvt. Ltd. Rudrapur has paid the Company a sum of ' 1,289.50 lakhs. The
balance payment has not been paid by the party due to pending litigations with third party on the said land which is
pending before Govt. Authorities and High Court Nainital. The amount so received by the Company has been disclosed
as advance against the sale of assets under other Non-Current Liabilities till this matter gets settled in the Court.
48. During FY 2016-17, there was a substantial leakage of molasses from Tank no. 4 of the Company on 12.03.2017 for
which the insurance claim was denied by the Insurance Company. The Company had approached National Consumer
Disputes Redressal Commission (NCDRC) and the order was pronounced in favour of the Company on 11.02.2026
thereby directing the Insurance Company to pay a sum of ' 95.91 lakhs to the Company towards the claim alongwith 6%
interest thereon within 90 days of the order. The order also provides for the additional interest of 2% if the claim is not
settled by the Insurance Company within 90 days of the order. Accordingly, the Company has accounted for ' 141.28
lakhs (including interest of ' 45.37 lakhs) as income in the books of accounts as the time limit for appeal by the insurance
company has already expired.
49. The Company has lease agreements for 99 years lease with various parties for nominal lease amount (' 2/-; 4/- etc. i.e.
all lease rentals are below ' 100/- per month), which are expiring around during 2031 / 2032. These leases are in the
nature of a perpetual lease as the Lease deed provides with the right to the lessee (i.e. Company) to occupy / continue the
lease for a further period of 99 years for which the lessors will not object. The sugar factory is constructed on these leased
plots, and the factory is fully operational and functional since inception. The management is more than reasonably
certain for renewal of these leases for a further period of 99 years. Accordingly, RoU Assets along with leasehold land
/ premium paid upfront, has been amortised over the lease term including additional renewable period of 99 years.
Further, the amount of Leasehold land Premium is disclosed in the PPE as a part of RoU which represents the amount of
premium paid upfront and is depreciated over the lease term (alongwith the revaluation amount).
Further since around past 15 years, no legal heirs have approached the Company with valid legal documents to
substantiate their legal right to receive the rentals and also, the Company does not have any system of identifying the
legal heirs and their respective shares. As a result of this, the Company have not been able to make the payment to the
lessors or its respective legal heirs. Further, the Lease deed provides with the right to the lessee (i.e. Company) to occupy /
continue the lease for a further period of 99 years for which the lessors cannot object. The Company, based on the advise
of legal consultant, is exploring the possibility to deposit the unpaid rent in a separate account or with the Government
Authority so that no legal hurdles are faced while renewing the leases.
50. The Company has defaulted on Term loan availed from Sugar Development Fund (SDF) for setting up the Cogeneration
Power plant. Due to this, SDF through its agents IFCI ltd has filed a Company Petition under section 7 of the Insolvency
and Bankruptcy Code, 2016 (IBC) before the Hon'ble National Company Law Tribunal, Mumbai (NCLT), claiming an
amount of ' 6,970.54 lakhs. The current status of the said petition is that it has not been admitted and that the Company
has filed a reply to the said petition. Next date of hearing in the matter is fixed on 05.06.2026. Meanwhile the Company
has filed a One Time Settlement (OTS) proposal with SDF under SDF Rules, 1983. The company is hopeful of getting
approval of its OTS proposal in near future.
51. The Company has incurred substantial losses in the current as well as in the earlier years and the net worth of the
Company has completely eroded, mainly attributable to high sugarcane prices and relatively lower and unviable Sugar
prices and reduction in cane centres due to cane arrears. The Company expects improvement in the revenues and
business of the Company in future in view of various steps taken by Uttar Pradesh State Government and Central
Government to improvise the sugarcane MSP and also improving the power rate for which writ petition is filed with Uttar
Pradesh Electricity Regulatory authority. The Company is in the process of finding the investor to invest in the Company
and is in process of monetizing its non-operating assets (immovables) which will bring funds in the company. This will
help the Company in improving the operational capability in long term basis. Hence, these financial statements have
been prepared on a "going concern" basis, despite accumulated losses resulting in erosion of its entire net worth
53. The Government of India notified the provisions of the four new Labour Codes ("Labour Codes") on 21st November
2025, thereby consolidating twenty-nine existing labour laws into a comprehensive and unified framework. Among
other changes, the Labour Codes provide a unified definition of "wages" to be applied across various employee benefit
computations. In accordance with Ind AS 19 - Employee Benefits, the Company has recognised one-time expense
of ' 159.36 Lakhs towards increase in the gratuity liability during the year. The Company continues to monitor the
finalisation of Central and State Rules, as well as Government clarifications on other aspects of the Labour Codes and
will incorporate appropriate accounting treatment based on these developments as required.
54. 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.
56. 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 31,2026 and
March 31, 2025.
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, 2026 and March 31, 2025.
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, 2026 and March 31, 2025.
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:
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.
57. The previous year figures have been regrouped and reclassified wherever necessary to correspond with the
current year classification / disclosure.
| 