1. No bonus shares were issued by the company during the last five financial years.

2. Out of the subscribed and paid-up capital of 45,34,528 Equity shares, 45,452 Shares were alloted as fully paid up pursuant to a contract without payment being received in cash.

3. The company has issued only one class of Equity shares having a par value of Rs.10/- each. Each holder of Equity share is entitled to one vote per share on poll and have one vote on show of hands. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the company in proportion to their shareholding after distribution of payments to preferential creditors.

4. Details of share holders holding more than 5% of total number of shares

5. Term loans from banks for financing new sugar plant at Pothavaram

The term loans from IDBI Bank Ltd., Bank of Baroda, State Bank of Hyderabad and Andhra bank are secured by way of first charge on pari passu basis on all the immovable and movable assets of sugar mills at Chagallu and Pothavaram of the company both present and future (excluding assets of the Chagallu distillery and land at Chennai and Rayagada).

The term loan from IDBI-III (Rs. 30 crores) is further secured by way of second pari passu charge on entire current assets of the company.

Further, the Funded interest Term loan is collaterlly secured by way of first charge on the land, buildings and Plant and machinery of distillery division at Jangareddygudem on pari-passu basis with IDBI Bank Ltd., State Bank of Hyderabad, Andhra Bank and Bank of Baroda.

The above loans are guaranteed by Managing director and Executive director in their personal capacities.

IDBI Bank Ltd.

i) The Rupee Term loan-I is repayable in 79 monthly unequal installments commencing from 1.4.2011 and ending on 1.10.2017, Rupee Term-II is repayable in 83 monthly unequal installment commencing from 1.4.2011 and ending on 1.2.2018 and Rupee Term loan-III is repayable in 72 monthly uneuqal installments commencing from 1.4.2012 and ending on 1.3.2018. Further, the Funded interest term loan is repayable in 61 monthly unequal installments commencing from 1.5.2013 and ending on 1.5.2018.

ii) The rate of interest varies based on the bank rate and present rate of interest is 15.50% for all the loans.

iii) The following amounts are repayable as per the above repayment terms.

Term Loan - I 31.3.2016 Rs.8.55 cr: 31.3.2017 Rs.8.55 cr: 31.3.2018 Rs.8.55 crores:

Total Rs.25.65 cr.

Term Loan - II 31.3.2016 Rs.4.45 cr: 31.3.2017 Rs.4.45 cr: 31.3.2018 Rs.4.45 crores:

Total Rs.13.35 cr.

Term Loan - III 31.3.2016 Rs.6 cr: 31.3.2017 Rs.7.50 cr: 31.3.2018 Rs.7.20 cr:

Total Rs.20.70 cr.

Funded Interest Term Loan 31.3.2016 Rs.3.30 cr: 31.3.2017 Rs.3.30 cr: 31.3.2018 Rs.3.30 cr

Total Rs.9.90 cr.

iv) The company made no continuing defaults in repayment of installments as on 31.3.2015.

However, an amount of Rs.0.22 crores towards principal and Rs.1.11 crores towards Interest was pending for remittance as on 31.3.2015.

Bank of Baroda

i) The Rupee Term loan is repayable in 79 monthly unequal installments commencing from 1.4.2011 and ending on 1.10.2017 and Funded Interest term loan is repayable in 72 monthly unequal installments commencing from 1.4.2012 and ending on 1.3.2018.

The following amounts are repayable as per the above repayment terms.

Term loan: 31.3.2016 Rs.5.40 cr: 31.3.2017 Rs.5.40 cr: 31.3.2018 Rs.5.40 cr:

Total Rs.16.20 cr.

Funded Interest Term Loan 31.3.2016 Rs.1.56 cr: 31.3.2017 Rs.1.55 cr: 31.3.2018 Rs.1.55 cr:

Total Rs.4.66cr.

ii) The term loan carries interest at 14.25% and Funded interest loan carries interest at 14.75%.

iii) The company made continuing defaults in repayment of installments and interest and an amount of Rs.4.30 crores was pending for remittance as on 31.3.2015.

State Bank of Hyderabad

During the year, the bank approved compromise proposal of company whereby the total outstanding amount was settled at Rs.24.14 crores. As per the terms of compromise, the company has to pay Rs.12 crores before 31.3.2015, Rs.10 crores before 30.6.2015 and balance Rs.2.14 crores before 30.9.2015.

Andhra Bank

i) The Rupee Term loan is repayable in 84 monthly unequal installments commencing from 2011-12 and ending on 2017-18. Further, the funded interest term loan is repayable in 72 monthly unequal installments commencing from 1.4.2012 and ending on 1.3.2018.

The following amounts are repayable as per the above repayment terms.

Term loan: 31.3.2016 Rs.3.60 cr: 31.3.2017 Rs.3.60 cr: 31.3.2018 Rs.3.60 cr:

Total Rs.10.80 cr.

Funded Interest Term Loan 31.3.2016 Rs.1.15 cr: 31.3.2017 Rs.1.15 cr: 31.3.2018 Rs.1.15 cr:

Total Rs.3.45 cr.

ii) The rate of interest varies based on the bank rate and at present the rate of Interest is 16.25% for Term loan and 16.50% for Funded Interest Term Loan.

iii) The company made continuing defaults in repayment of instalments and interest and an amount of Rs.11.87 crores was outstanding for remittance as on 31.3.2015.

2) Term loan from Bank of India

i) Term loan is secured by way of equitable mortgage by deposit of title deeds of immovable properties admeasuring Ac.150 belonging to the EM division, Rayagada and Ac.40 of land and building and hypothecation of other fixed assets of Chagallu Distillery Divisional.

ii) The loan carries interest at 13.00%.

iii) The said loan is repayable in 59 unequal monthly installments commencing from April, 2013 and ending on February, 2018.

The following amounts are repayable as per the above repayment terms.

31.3.2016 Rs.14.40 cr: 31.3.2017 Rs.14.40 cr: 31.3.2018 Rs.13.20 cr: Total Rs.42 cr.

iii) The company made continuing defaults in repayment of installments and interest and an amount of Rs.1.16 crores was outstanding for remittance as on 31.3.2015.

3) Term loan from ICICI

i) Term loan is secured by way of Equitable mortgage of properties at Rayagada, Orissa admeasuring Ac.151.47 cents belonging to the copmpany and 1 Ac.of land in Coimbatore belonging to Managing director.

ii) The above loan carries interest at 14.75%

iii) Payable in 8 equal half-yeraly installments of Rs.2.75 cores each and 1st installment commences from 27.8.2013.

iv) No continuing defaults in repayment of installments and interest except an amount of Rs. 0.20 crores pending for remittance as on 31.3.2015.

4) Loan from IDBI under SEFASU, 2014.

The company has been sanctioned with Rs.6.64 crores under SEFASU, 2014 for clearance of cane price arrears. The said loan is repayable in 36EMI and 1st instilment commences from 1.10.2016.

The loan carries interest @15.75% of which 12% is to be reimbursed by Government of India.

The above loan is secured by way of 1st mortgage and charge on all movable and immovable properties of chagallu and Pothavaram sugar units and 2nd charge on Inventories and other current assets of the company. Further, the loan is secured by way of 1st charge on all properties of Jangareddy gudem on pari passu basis with FITL loan availed by the company. Further guaranteed by MD and ED in their individual capacities.

5) Loan from IOB under SEFASU, 2014.

The company has been sanctioned with Rs.4.07 crores under SEFASU, 2014 for clearance of cane price arrears. The said loan is repayable in 36EMI of Rs.11.31 lakhs each and 1st instalment commences after a moratorium period of 2 years from the date of 1st disbursement.

The loan carries interest @14.75% of which 12% is to be reimbursed by Government of India.

The said loan is secured by way of 3rd pari passu charge by way of hypothecation of stocks and 3rd pari passu charge on block of fixed assets of the company. Further guaranteed by Managing Director and Executive Director in their personal capacities.

6) Fixed deposits accepted by company carries interest @10% to 10.50% based on period of deposit. No defaults were made in repayment of deposits.

7) Unsecured loan from directors carries interest @ 10% and is repayable after a period of 5 years.

Note:

a) Working capital loans from banks are secured by way of hypothecation of inventories and second pari-passu charge on fixed assets of chagallu units amongest the working capital consortium lenders to chagallu sugar division.

The above loans carries interest at following rates.

Bank of India - 15% : Bank of Baroda - 14.5% : IOB - 15% : Andhra Bank - 17.25% : SIB - 15.25%

DCCB - 15% and IDBI - 13.5%

In some of the occasions, the company overdrawn amounts in excess of the sanctioned limits.

b) Short Term loan from IDBI carries interest @15.50% and is repayable as a bullet payment after a moratorium of 6 months from the date of first disbursement. The loan is secured on lands admeasuring Ac.43.24 belonging to company located at Coimbatore.

Disclosures required under the Micro,Small and Medium Enterprises Development Act, 2006.

Based on, and to the extent of information received from the suppliers with regard to their status under Micro, Small and Medium Enterprises Development Act, 2006(MSMED ACT), on which the auditors Unclaimed dividend represents those relating to the years 2007-08 to 2011-12 and no part thereof has remained unpaid or unclaimed for a period of 7 years or more from the date they became due for payment requiring transfer to the Investor Education Protection fund, except the following.

The above amount includes 2004-05 Rs.61,845/- (Interim), 2004-05 Rs.61845/- (Final), 2005-06 Rs.61,845/-(Interim), Rs.1,85,535/- (Final), 2006-07 Rs.92768/- (Interim) and Rs.30,923/- (Final) which is held in abeyance due to legal cases pending before High court of Judicature of Madras.

6. The Board has proposed to demerge Pothavaram Unit i.e., V R K Sugars into a separate company w.e.f 01.10.2012 as the Appointed day and has intimated the Stock Exchange. Pending approval of the scheme, the assets and liabilities of the resultant entity included in the financial statements of the current year. The un-allocated and common assets and liabilities have been apportioned to the respective units when the scheme got approval. The company is in the process of fnalizing the applications to be moved before the authorities for securing orders to convene meeting of shareholders and meeting of creditors to consider the scheme of demerger.

7. Under the provisions of the Orissa Land Reforms Act, 1960, the Revenue Officer has declared the agricultural lands owned by company to an extent of Acres 488.76 as surplus under sec.44(1) of the said Act. No provision is made in the accounts for the probable loss in this matter, pending fnal legal decision in the appeal preferred by the company against the said declaration.

8. CONTINGENT LIABILITIES :

a) The company has received demands from the Orissa State Sales tax department for Rs.2,00,21,670/- towards sales tax on some of its assets sold in the year ending 31st March, 1996. As per the contract, the above sales tax liability is to be borne by the buyer. Hence no provision is considered necessary in the books of the company for the said demand. As per the directions of the High Court, the buyer has paid a sum of Rs.50 lakhs under protest and the company (seller) was directed to pay under protest an additional sum of Rs.50 lakhs in installments. Accordingly the company has so far paid a sum of Rs.30 lakhs and the same is included under loans and advances.

d) Guarantee worth Rs.2,17,62,000/-(Rs.7,76,30,397/-) executed by Banks on behalf of the company are sucured by counter Guarantee given to them by the company and its Managing Director and Executive Director in their individual capacities.

30. Balances appearing under Trade receivables, Trade payables and Loans and advances as per the books of the company are subject to confirmation. The adjustments, if any, on confirmation/ reconciliation of such accounts will be made in the sand year.

In the opinion of Board of Directors, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which these are stated.