1. Security & Other Terms
(i) Paripassu first charge on fixed assets including plant and machineries of Aranthangi Division and by personal guarantee of three Directors. The term loans are repayable on quarterly installments .
(ii) Secured by way of first charge on pari-pass basis on the fixed assets including plant and machineries of grain based division at Sangareddy, Andhrapradesh. Second paripassu charge on current assets and by personal guarantee of three directors.
The term loans are repayable in quarterly installments.
2. The company has made share application money for allotment of 0% convertible preference shares of Rs.10/-each at a premium of Rs.140 each from 7th July, 2008 to 30th September, 2012. The allotment could not be made as necessary approvals are yet to be received from SEBI, legal opinion has been received stating that BIFR is the deciding authority regarding allotment/refund of share application pending allotment
3. NOTES ON ACCOUNTS
The Company has closed the accounting year on 31.03.2016 for 12 months period from 01.04.2015 to 31.03.2016. The figures for the current year are not comparable with the previous year which relates to 18 months.
4. Contingent Liabilities, Guarantees & Capital commitments
C. Punjab National Bank vide its letter dated 06/01/2015 addressed to the company intimated about invoking corporate guarantee issued by the company (EDL) on behalf of Empee Sugars & Chemicals Limited.
The Company informs that as per the legal opinion obtained on the basis of various documents executed, it has been construed that the company has not issued any valid corporate guarantee in favour of Punjab National Bank for ESCL. Hence no provision for the guarantee has been made in the accounts of EDL.
5. Employee Benefits
As per Accounting Standard 15 “Employee Benefits”, the disclosures as defined in the Accounting Standard are given below:
a) Defined Contribution Plans : Contribution to defined contribution plan, recognized as expenses for the year is amount to Rs. 132.59 Lakhs (previous year Rs.69.58 Lakhs) pertaining to employers’ contribution to provident fund, Employees State Insurance Funds, Gratuity fund.
b) Defined Benefit Plans:
Leave encashment :
The company has dispensed off the leave encashment policy during the current period; hence no provision had been recognized in the books of accounts for the period.
Gratuity :
The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days salary (includes dearness allowance) last drawn for each completed year of service. The same is payable on termination of service, or retirement, or death whichever is earlier. The benefit vests after five years of continuous service.
A. Economic Assumptions
The principal assumptions are the discount rate and salary growth rate. The discount rate is generally based upon the market yield available on the Government bonds at the accounting date with a term that matches that of the liabilities and salary growth rate takes account of inflation, seniority, promotion and other relevant factors on long term basis.
6. Sundry Creditors and Debtors balances are subject to confirmation by the parties concerned.
7. Quantum of Excise Duty included in closing stock of finished goods is Rs.370.39 Lakhs.
8. Regarding share application money in Empee Sugars and Chemicals Ltd of Rs.137.94 Crs pending for allotment in favour of EDL, the holding Company, it is stated that management of the Company represented to us that due to non-receipt of certain statutory approvals the same is kept pending. However since these monies have been received prior to the Companies Act, 2013, the Company is said to be attracted to the provisions of the Companies Acceptance of Deposit Rules 2014 and Investors Protection and Education Fund. But the Company Vide Legal opinion has mentioned that since the Company has been registered under BIFR much ahead of the said Deposit Rules, the same shall not apply. Further the Investors protection and Education Fund Rules do not apply in so far as EDL has claimed the refund of share application money. The management vide their representation letter dated 27th May, 2016, expressed their inability in the absence of the normal functioning of the Company and cash flows to refund the application which is a matter to be considered under rehabilitation scheme to be filed by the company.
9. Figures for the previous year have been regrouped / reclassified wherever necessary.
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