(b) Terms / rights attached to Equity Shares

Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution to equity shareholder will be in proportion to the amount paid on the shares held by them.

(c) Terms of redemption of Preference Shares

The Non-Convertible Cumulative Redeemable Preference Shares (NCCRPS) carries dividend @ 8. 5% per annum. NCCRPS shall be redeemable at par on 2 August 2023 being twelve yea and one day from the date of allotment i. e. 01 August 2011 with a right vested to the Board of Directors to redeem it earlier, subject to the consent of the lender and dividend is payable at the time of redemption of the NCCRPS. However, the Board reserves the right to pay the dividend earlier with the consent of the Lender and subject to the availability of profit.

(d) Details of shareholder holding more than 5% shares in the company

(a) Term Loan from Banks carry interest rate in the range of 13. 77% to 14. 99% and are repayable in 32 quarterly installments by 30th June 2020. These loans are secured by fit mortgage / charge on all the immovable and movable assets (save and except book debts), present and future, of the Company's Sugar Units at Hargaon, Narkatiaganj and Dhadha Bujurg (Hata) and Distillery Unit at Hargaon, ranking pari-passu amongst the various lende, subject to prior charges created on movables for working capital borrowings from the Company's bank.

The above Term Loan is further secured as follows.

(i) Second charge on current assets of Sugar Unit at Dhadha Bujurg (Hata) and fixed assets of Sugar Unit at Rosa ranking pari-passu amongst the various lender.

(ii) Third charge on current assets of Sugar & Distillery Units at Hargaon and Sugar Unit at Narkatiaganj.

(iii) Pledge of 64, 79,294 equity shares of the Company held by the promoter group companies, ranking pari-passu amongst the various lender.

(b) Term loans from banks under Financial Assistance Scheme (SEFASU 2014), carry interest rate in the range of 11. 4% to 12. 3% p. a. and is repayable in12 quarterly installments by 30 June 2019. The Company is entitled to interest subvention from the Government of India up to 12% as per terms of scheme and the same will be directly rumbaed to bank by Department of Food & Public Distribution and hence, no liability towards interest under subvention has been provided in these accounts. The above loan is secured by the fit pari passu charge on all the fixed assets of both present and future of Sugar and Co-generation units of the Company at Hargaon & Dhadha Bujurg (Hata) and Sugar units of the Company at Narkatiaganj & Rosa.

(c) Term loans from banks under Financial Assistance Scheme of the Government of India (SOFT LOAN2015) carry interest rate in the range of 11. 60% to 11 75% p. a. And are re payable in 20 equal quarterly installments by 30 September 2022. The Company is entitled to interest subvention from the Government of India up to 10% for fit year as per terms of the Scheme and the same will be rumbaed directly to banks by the Department of Food & Public Distribution and hence, no liability towards interest under subvention has been provided in these accounts. The above loans are secured / to be secured by the fit pari-passu charge on all the fixed assets, both present and future, of Sugar and Co-generation units of the Company at Hargaon and Dhadha Bujurg (Hata) and Sugar units of the Company at Narkatiaganj and Rosa.

(d) Term loans from a bank under Financial Assistance Scheme of the State Government of Bihar (SOFT LOAN 2015), carry interest rate of 13% p. a. and are repayable in 20 equal quarterly installments by 31 March 2021. The Company is entitled to interest subvention from the State Government of Bihar up to 12% for fit year and 10% thereafter as per terms of the Scheme and the same will be rumbaed directly

The above loans are repayable as under.

to banks by the State Government of Bihar and hence, no liability towards interest under subvention has been provided in these accounts. The above loans are secured / to be secured by the fit pari-passu charge on all the fixed assets, both present and future, of Sugar and Co-generation units of the Company at Hargaon and Dhadha Bujurg (Hata) and Sugar units of the Company at Narkatiaganj and Rosa.

(e) Term loans from the Sugar Development Fund, which carry interest of 4% p. a. , are secured by a second charge on all the immovable / movable assets (save and except book debts) present and future of the Company's Sugar Units at Hargaon and Narkatiaganj.

Provision for warranties

A provision is recognized for expected warranty claims on products based on the management's estimate computed on the basis of past experience. It is expected that the entire provision will be utilized within one year of the reporting date, since the warranty is generally for one year. The table below gives information about movement in warranties provisions.

Provision for litigation, claims and contingencies The Company has estimated the provision for pending litigation, claims and demands based on the assessment of probability for these demands being crystallizing against the Company in due Coue. The table below gives information about movement in litigation, claims and contingencies provisions.

Cash Credit from bank other than from District Co-operative Bank Ltd. is secured by hypothecation of the entire current assets of the Company and also by a charge on the immovable assets as follows :

(i) Canning factory at Allahabad - Fit Charge;

(ii) Sugar Unit at Rosa - Fit Charge;

(iii) Sugar Unit at Dhadha Bujurg (Hata) - Second Charge;

(iv). Sugar Units at Hargaon and Narkatiaganj - Third Charge.

In addition, Cash Credit from banks are also secured by pledge of 64, 79,294 equity shares of the Company held by the promoter group companies, ranking pari-passu amongst the various lender. Cash credit of Rs,11,440.14 lacs (Rs, 12,156. 16lacs) from District Co-operative Bank Ltd. is secured by pledge of the Stock of Sugar pertaining to Sugar Units at Hargaon and Rosa. Cash Credit borrowings carry interest rates ranging between 11. 25% to12.30% pea.

Although, there is carried forward unabsorbed depreciation and business losses as on the reporting date, yet in view of the future profitability projections, the Company is certain that there would be sufficient taxable income in future, to claim the above tax credit.

1. AGRICULTURAL INCOME (CONTD.)

Details of revenue and expenses pertaining to agricultural activities, which have been included in Notes 20 to 26 under th respective heads, are as follows:

2. GRATUITY - DEFINED BENEFIT PLAN

The Company has a defined benefit gratuity plan. Every employee who has completed at least five yea or more of service is entitled to Gratuity on terms as per the provisions of The Payment of Gratuity Act, 1972. The Company has got an approved gratuity fund which has taken an insurance policy with Life Insurance Corporation of India (LIC) to cover the gratuity liabilities.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the plan.

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant facto, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on the date, applicable to the year over which the obligation is to be settled.

Defined Contribution Plan:

The Company has recognized the following amount as an expense and included under, "Contribution to Provident & Other Funds".

3. LEASES

Operating lease:

Certain office premises, go downs, cane purchasing centre etc. Are held on operating lease. The leases range up to 3 yea and are renewable either mutually or at the option of the Company. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease agreements. There are no subleases. The leases are cancellable.

4. SEGMENT INFORMATION

The primary segment reporting format is determined to be business segments as the company’s risks and rates of return are affected predominantly by differences in the products produced. Secondary information is reported geographically. The operating businesses are organized and managed separately according to the nature of the products and services provided, with each segment representing a strategic business unit that offe different products and serves different markets. Accordingly, the Company has identified "Sugar", "Spirits", "Co-generation" and "Food processing" as the operating segments:

Sugar - Consists of manufacture, trading and sale of Sugar, Molasses and Biogases

Spirits - Consists of manufacture and sale of Industrial Spirits (including Ethanol), Fusel Oil and Bio-Compost Co-generation - Consists of generation and transmission of Power Food Processing Products - Consists of Canned Fruits and Vegetables, Jams, Jellies, Squashes and Juices.

The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into its Indian and Overeats Operations.

* Based on discussions with the solicitor / favorable decisions in similar cases / legal opinions taken by the Company, the management believes that it is possible but not probable the action will succeed and accordingly no provision there against is considered necessary.

5. A civil suit is pending against the Company's sugar unit at Dhadha Bujurg (Hata), which is already in operation. The Company has been legally advised that the said civil suit is not tenable as per law.

6. The Company's Board of Directors has approved a Composite Scheme of arrangement amongst the Company, Upper Ganges Sugar & Industries Limited, Palash Securities Limited, Allahabad Canning Limited, Ganges Securities Limited, Cinnatolliah Tea Limited, Vaishali Sugar & Energy Limited, Magadh Sugar & Energy Limited, Avadh Sugar & Energy Limited in terms of the provisions of Section 391 to 394 and other applicable provisions of the Companies Act, 1956 & Companies Act, 2013, to the extent applicable to restructure and de-link its multiple business in separate new entities w. e. f. 1 April 2015 subject to necessary approvals. The Company is in the process of obtaining necessary approvals from various concerned authorities and pending such approvals, no accounting adjustment has been made in these financial statements.

7. The net worth of the Company is completely eroded due to losses in earlier yea. However, the Company earned profits during the current year consequent to improved realization and sugar yields. Further, the Company is also in the process of business restructuring as mentioned in note 37 above. In view of the above, the management is certain that the Company would be in a position to generate positive cash flows and profits in future and accordingly, these financial statements have been drawn as per the going concern assumption.

8. Loans and advances in the nature of loans given to subsidiaries and associates and firms / companies in which the director are interested and which are outstanding at the end of the year in terms of Clause 32 of the Listing Agreement with Stock Exchanges.

9. Previous year's figures including those given in brackets have been regrouped / rearranged wherever necessary.