1. SHARE CAPITAL

(a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting year Equity shares

(b) Terms / rights attached to Equity Shares

The Company has only one class of equity shares having a par value of '10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution to equity shareholders 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 @12% per annum.

NCCRPS shall be redeemable at par on 24th September, 2019 being 5 years from the date of allotment i.e. 25th September, 2014 with a right vested to the Board of Directors to redeem it earlier, but not before 12 months from the date of issue.

The Dividend is payable annually, subject to the availability of the profit. However, the unpaid cumulative dividend, if any, is payable along with the redemption of NCCRPS.

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

(a) Term Loans from Banks under project finance / corporate loan scheme, carry interest in the range of 11.85% to 12.75% and are secured by first mortgage / charge on all the immovable and movable assets (save and except book debts), present and future, of the Companies Sugar Units at Sahara (including Co-generation plant), Sidhwalia & Hasanpur and Distillery unit at Sahara , ranking pari passu amongst the various lenders, subject to prior charges created on movables for working capital borrowings from the Companies bankers. Further, the term loan of Rs, 3,300 lacs ('Rs, 4,400 lacs) is also secured by pledge of certain shares held as investments by the Company and its subsidiary Company (Refer note 13a).

The above loans are repayable as under.

(b) Term Loans from Punjab National Bank (PNB) & State Bank of India (SBI) under Financial Assistance Scheme (SEFASU 2014) carry interest of 12% and 12.50% p.a. respectively and is repayable in monthly / quarterly installments ending on March 2019. The Company is entitled to Interest subvention from Government of India up to 12% as per the terms of schedule and the same will be directly reimbursed to Banks by Department of Food & Public Distribution and hence no liability towards interest of 12% p.a. has been provided in these accounts. The above loan is secured by the first pari-passu charge on all the fixed assets, both present and future of the Companies Sugar unit at Seohara, Sidhwalia and Hasanpur. The term loan from PNB is further secured by 3rd pari-passu charge on all current assets of the above sugar units.

(c) Term loan from a bank under Financial Assistance Scheme of the Government of India (SOFT Loan 2015), carry interest rate in the range of 10.60% to 11% p.a. and repayable in 20 equal quarterly installments by 30th September, 2022. The Company is entitled to interest subvention from the Government of India up to 10% for first year as per terms of the Scheme and the same will be reimbursed 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 first parri-passu charge on all the fixed asets,both present and future, of all sugar units of the Company at Seohara,Sidhwalia and Hasanpur.

(d) Term loan from a bank under Financial Assistance Scheme of the State Government of Bihar (SOFT Loan 2015), carry interest rate of 13% p.a. and repayable in 20 equal installments by 31st March, 2021. The Company is entitled to interest subvention from the Government of Bihar up to 12% for first year and 10% thereafter as per terms of the Scheme and the same will be reimbursed directly 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 first parri-passu charge on all the fixed assets, both present and future, of all sugar units of the Company at Seohara,Sidhwalia and Hasanpur.

(e) Term loans from the Sugar Development Fund, carry interest @ 4% p.a. and are secured by a second charge on all the immovable and movable assets (save and except book debts), present and future of the Company's Sugar unit at Sidhwalia (including Co-generation Plant).

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 course. The table below gives information about movement in litigation, claims and contingencies provisions.

(a) Cash credit borrowings from Banks, other than from District Co-operative Bank Ltd. and DCB Bank Ltd. (Commodity Finance) are secured by hypothecation of the current assets of the Company ranking pari passu amongst the various lenders. In addition, cash credit borrowings from State Bank of India, Punjab National Bank and DCB Bank Ltd. is further secured by a charge on the immovable assets as follows:

i. Cinnatolliah Tea Unit - First Charge;

ii. Hasanpur Sugar Mills - Second Charge;

iii. Seohara Sugar Unit - Third Charge (ranking pari-passu between the lenders);

iv. Bharat Sugar Mills - Third Charge.

(b) Cash credit of ' 15,126.28 lacs (' 11,549.24 lacs) from District Co-operative Bank Ltd. and DCB Bank Ltd. (Commodity Finance) are secured by pledge of the stock of sugar pertaining to Sugar units at Seohara and Sidhwalia.

(c) Cash Credit borrowings carry interest ranging between 11.25% to 12.90% p.a.

2. OTHER CURRENT LIABILITIES

(a) Title deeds tor Rs, 25.42 lacs (Rs, 25.42 lacs) are yet to be executed in favor of the Company.

(b) IncludesRs, 585.34 lacs which has been recapitalized on account of Capital Subsidy received during the year and depreciation of Rs, 174.40 lacs thereon provided in earlier years has been reversed during the year.

(c) Includes assets held in joint ownership with others, Gross BlockRs, 264.74 lacs (Rs, 264.81 lacs) and Net BlockRs, 151.16 lacs (Rs, 157.33 lacs), details of which is as under:

a) Includes 6,37,365 shares pledged against term loan of Rs, 3,300 lacs (Rs, 4,400 lacs) taken from a bank (refer Note 5).

b) The figures, being less than Rs, 500, have been shown above as blank.

c) Deposited / pledged with various Government authorities.

d) The cost of following unquoted investments in equity shares (fully paid up) has been written off in the past, though quantity thereof appears in the books.

e) There is a diminution of Rs, 216.75 lacs (Rs, 216.75 lacs) in the value of certain long term quoted investments based on the last quoted price. The above diminution in the opinion of the management is temporary in nature since the breakup value of the said shares supplemented by the market value as on 31st March 2016, of the quoted investments held by the investee Company, is much higher than the corresponding Book Value and hence no provision is considered necessary.

3. GRATUITY - DEFINED BENEFIT PLAN

The Company has a defined benefit gratuity plan. Every employee who has completed at least five years 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.

Statement of profit and loss

Net employee benefit expense recognized in employee costs

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, 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 that date, applicable to the period 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".

4. LEASES Operating lease:

Certain office premises, go downs, cane purchasing centre etc. are held on operating lease. The lease term is ranging up to 3 years and is renewable for further year 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.

5. 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 offers different products and serves different markets. Accordingly, the Company has identified "Sugar", "Spirits", "Co-generation" and "Tea" 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 Tea - Consist of cultivation, manufacture and sale of tea Others - Consist of Miscellaneous business comprising of less than 10% revenues.

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

6. SEGMENT INFORMATION (CONTD.)

Business segments

Year ended 31st March 2016

7. RELATED PARTY TRANSACTIONS

The following table provides the total amount of transactions that have been entered into with related parties for the reporting year:

The remuneration to the key managerial personnel does not include the provisions made for gratuity and leave benefits, as they are determined on an actuarial basis for the company as a whole.

8. CAPITAL AND OTHER COMMITMENTS

Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) 'Rs, 263.25 lacs (' Rs, 263.25 lacs).

9. CONTINGENT LIABILITIES

* Based on discussions with the solicitors / 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.

10. The Company's Board of Directors has approved a Composite Scheme of arrangement amongst the Company, The Oudh Sugar Mills 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.

11. The land ceiling matter under the U.P. Imposition of Ceiling on Land Holdings Act, 1960 / Bihar Land Reforms (Fixation of Ceiling, Area and Acquisition of Surplus Land) Act, 1961 for acquisition of agricultural land by the Government is pending before the appropriate adjudicating authorities.