Notes to Account
1. SEFASU Term Loan, Soft Loan & CC Under Repayment (except term loan from Co-Operative Banks):
i. Term Loans and CC under repayment from Banks are secured on first pari passu charge by way of Joint Equitable Mortgage on Company's immovable properties and first charge byway of hypothecation of all movable properties of the Company on pari passu basis, subject to prior charge created /to be created in favour of Company's Bankers (except Co-operative bank loan) for securing borrowings for working capital requirements of the Company.
ii. Term Loans and CC under repayment from Banks are also secured by third pari-passu charge basis on whole of the current assets (stock, book debts etc.), both present and future.
iii. Term Loans and CC under repayment from Banks are also secured by way of Pledge on pari-passu basis of 34,84,170 Equity Shares in the company held by individual Promoters of the Company viz. M/s. Raj Kumar Adlakha, Rajan Adlakha and Ranjan Adlakha.
iv. Term Loans and CC under repayment from Banks are also guaranteed by Managing Director and two other promoters of the Company (viz. Mr. Rajan Adlakha & Mr. Ranjan Adlakha) and corporate guarantees of three Promoter Companies (viz. Uttam Industrial Engineering Private Limited, Uttam Sucrotech Limited and Lipi Boilers Private Limited).
v. CC Under Repayment is additionally secured by :
• Pledge on pari-passu basis of 60,00,000 Equity Shares held by three promoter companies viz. M/s Uttam Industrial Engineering Pvt. Limited, M/s Uttam Sucrotech Limited and M/s Lipi Boilers Private Limited.
• Joint Equitable Mortgage on the immovable properties situated at H-2, Kaushambi, Ghaziabad owned by a group company, M/s Uttam Housinginfra Limited.
• Corporate Guarantee by two group Companies viz. M/s Uttam Adlakha & Sons Holdings Private Limited and M/s Uttam Housinginfra Limited.
vi. Soft Loan is additionally secured by :
• Joint Equitable Mortgage on the immovable properties situated at H-2, Kaushambi, Ghaziabad owned by a group
company, M/s Uttam Housinginfra Limited.
• Corporate Guarantee by a group Company viz M/s Uttam Housinginfra Limited.
Notes on Financial Statements for the Year Ended 31st March 2018
2. Term Loan from Govt. of India, Sugar Development Fund through IFCI Ltd.:
Term Loan from Govt. of India, Sugar Development Fund through IFCI Ltd is secured by an exclusive second charge on movable assets (except book debts) and Company's immovable properties.
3. Term Loan from Uttarakhand State Co-Operative Bank Limited:
Term Loan from Uttarakhand State Co-Operative Bank Limited is secured by Residual charge on all movable assets forming part of fixed/block assets both present & future, and Joint Equitable Mortgage on company's immovable properties situated at Village Libberheri, Roorkee, District Haridwar (Uttarakhand) on Residual Charge basis, and also guaranteed by Managing Director.
4. Term Loan from Zila Sahkari Bank Limited, Ghaziabad:
Term Loan from Zila Sahkari Bank Limited, Ghaziabad is secured on Residual charge basis on movable assets forming part of fixed/block assets, both present & future, and Joint Equitable Mortgage on company's immovable properties situated at Village Shermau, Tehsil Nakur, District Saharanpur (Uttar Pradesh) on Residual Charge basis, and also guaranteed by Managing Director.
5. Vehicle loans:
Vehicle loans from banks and Non-Banking finance company are secured by way of hypothecation of vehicle financed by them. Terms & Conditions of short term borrowings
1. Non-Fund Based Working Capital Limits from Punjab National Bank & State Bank of India (Working Capital Limits)
a) Working Capital Limits from Banks are secured/to be secured by first pari passu charges by hypothecation of stocks of raw materials, sugar, molasses, other stores and spares and book debts/receivables of the Company both present and future and third pari passu charge on immovable assets of the Company.
b) Working Capital Limits from Banks are also secured by way of Pledge on pari-passu basis of 34,84,170 Equity Shares in the company held by individual Promoters of the Company viz. Mr. Raj Kumar Adlakha, Rajan Adlakha and Ranjan Adlakha.
c) Working Capital Limits from Banks are also guaranteed by Managing Director and two other promoters of the Company (viz. Mr. Rajan Adlakha & Mr. Ranjan Adlakha) and corporate guarantees of three Promoter Companies (viz. Uttam Industrial Engineering Private Limited, Uttam Sucrotech Limited and Lipi Boilers Private Limited).
d) Non-Fund based Cash Credit Facilities from Punjab National Bank is additionally secured by :
• Pledge on pari-passu basis of 60,00,000 Equity Shares held in the Company, held by three promoter companies viz. Uttam Industrial Engineering Private Limited, Uttam Sucrotech Limited and Lipi Boilers Private Limited.
• Joint Equitable Mortgage on the immovable properties situated at H-2, Kaushambi, Ghaziabad owned by a group company, M/s Uttam Housinginfra Limited.
• Also Guaranteed by two group Companies viz. M/s Uttam Adlakha & Sons Holdings Private Limited and M/s Uttam Housinginfra Limited.
2. Cash Credit (Pledge) Limits from Punjab National Bank
a) Cash Credit (Pledge) Limits from Punjab National Bank is secured by way of pledge of warehouse receipt covering sugar stocks in possession of collateral managers appointed by bank.
b) Cash Credit (Pledge) Limits from Punjab National Bank is also guaranteed by Managing Director (Mr. Rajkumar Adlakha) and two other promoters of the Company (viz. Mr. Rajan Adlakha & Mr. Ranjan Adlakha) and corporate guarantees of five Promoter/Group Companies (viz. Uttam Industrial Engineering Private Limited, Uttam Sucrotech Limited, Lipi Boilers Private Limited, Uttam Adlakha & Sons Holdings Pvt. Ltd. & Uttam Housinginfra Limited).
c) Cash Credit (Pledge) Limits from Punjab National Bank is secured /to be secured on the third pari passu charge on immovable assets of the company.
d) Cash Credit (Pledge) Limit from Punjab National Bank is also secured by way of Pledge on pari-passu basis of 94,84,170 Equity Shares in the company held by Promoters of the Company viz. Mr. Raj Kumar Adlakha, Mr. Rajan Adlakha, Mr. Ranjan Adlakha, M/s Uttam Industrial Engineering Private Limited, M/s Uttam Sucrotech Limited and M/s Lipi Boilers Private Limited.
3. Working Capital Demand Loan (WCDL) from State Bank of India
a) Working Capital Demand Loan (WCDL) from State Bank of India is secured by way of pledge of warehouse receipt covering sugar stocks in possession of collateral managers appointed by bank.
b) Working Capital Demand Loan (WCDL) from State Bank of India is also guaranteed by Managing Director and two other promoters of the Company (viz. Mr. Rajan Adlakha & Mr. Ranjan Adlakha).
4. Term Loan (Repair & Maintenance) from Punjab National Bank
Term Loan from Punjab National Bank is secured on residual charge basis on fixed assets of the company, both present & future. The Loan is additionally secured by Joint Equitable Mortgage on the immovable properties situated at H-2, Kaushambi, Ghaziabad owned by a group company, M/s Uttam Housinginfra Limited.
5. Cash credit facility from Uttarakhand State Co-Operative Bank Limited
Cash credit facility from Uttarakhand State Co-Operative Bank Limited is secured by pledge of stocks of sugar at Libberheri Sugar Factory situated at Village Libberheri, Roorkee, District Haridwar.
6. Cash credit facility from Zila Sahkari Bank Limited, Ghaziabad
a. Cash Credit facility for Shermau Unit
Cash Credit facility for Shermau Unit from Zila Sahkari Bank Limited, Ghaziabad is secured by pledge of stocks of sugar at Shermau Sugar Factory situated at Village Shermau, Tehsil Nakur, District Saharanpur, Uttar Pradesh & also guaranteed by Managing Director of the Company.
b. Cash Credit facility for Barkatpur Unit
Cash Credit facility for Barkatpur Unit from Zila Sahkari Bank Limited, Ghaziabad is secured by pledge of stocks of sugar at Barkatpur Sugar Factory situated at Village Barkatpur, Tehsil Nazibabad, District Bijnor, Uttar Pradesh & also guaranteed by Managing Director of the Company.
7. Cash credit facility from Zila Sahkari Bank Limited, Bulandshahr
a. Cash Credit facility for Shermau Unit
Cash Credit facility for Shermau Unit from Zila Sahkari Bank Limited, Bulandshahr is secured by pledge of stocks of sugar at Shermau Sugar Factory situated at Village Shermau, Tehsil Nakur, District Saharanpur, Uttar Pradesh & also guaranteed by Managing Director of the Company.
b. Cash Credit facility for Barkatpur Unit:
Cash Credit facility for Barkatpur Unit from Zila Sahkari Bank Limited, Bulandshahr is secured by pledge of stocks of sugar at Barkatpur Sugar Factory situated at Village Barkatpur, Tehsil Nazibabad, District Bijnor, Uttar Pradesh & also guaranteed by Managing Director of the Company.
Terms & Conditions of Unsecured Loans
Unsecured Loans from related parties shall be repayable after eight years from the date of disbursement of Loan.
Interest will be accrued annually on 31st March every year but is payable on maturity or date of repayment of loan, whichever is earlier.
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(Rs. in Lakhs)
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Particulars
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As at 31st March, 2018
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As at 31st March, 2017
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As at 01st April, 2016
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(B) Unsecured Loans
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|
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- Soft Loan from Uttarakhand State Government
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656.68
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656.68
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656.68
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Interest accrued but not due on borrowings
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60.17
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68.88
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104.36
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Interest accrued and due on borrowings
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346.03
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319.76
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487.81
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Security deposits
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269.09
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273.34
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220.38
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Due to directors
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4.32
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60.40
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11.44
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Due to scheduled bank (book overdraft)
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882.33
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227.52
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505.57
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Supplier's credit balance against farmer crop loan (refer note no.34 d)
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1,346.42
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2,585.90
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2,496.38
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Other Liabilities
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606.03
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573.67
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546.30
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Total (ii)
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12,846.39
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13,021.87
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12,737.16
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Total (i ii)
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17,043.99
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16,786.54
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16,113.55
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Terms & conditions of Preference Shares capital reclassified due to adoption of Ind AS as financial Liabilities, is as under:-
Series-16.50% Non-Cumulative Redeemable Preference Shares
1. Rate of dividend on these Preference shares is 6.50%.
2. The Preference shares are Non-Cumulative with reference to the dividend.
3. The Preference shares shall be redeemed on the call of the Company on or after 1st April, 2023 but not later than 31st March, 2026 by giving 30 days notice.
4. The Preference shareholders will have no voting rights except as provided in the Companies Act, 2013. Series-2 10% Non-Cumulative Redeemable Preference Shares
1. Rate of dividend on these Preference shares is 10%.
2. The Preference shares are Non-Cumulative with reference to the dividend.
3. The Preference shares shall be redeemed on the call of the Company on or after 1st April, 2023 but not later than 31st March, 2026 by giving 30 days notice.
4. The Preference shareholders will have no voting rights except as provided in the Companies Act, 2013.
Terms & Conditions of Unsecured Loan from Uttarakhand State Government
Unsecured Soft Loan from Uttarakhand State Government amounting to Rs. 656.68 lacs and interest accrued & due thereon of Rs.346.03 lacs was repayable in three years in quarterly installments w.e.f. January 2008 however the same continues to unpaid. An application for waiver off such loan is pending with the Government of Uttarakhand.
Notes on Financial Statements for the Year Ended 31st March 2018 Note No.: 34
a. Based upon the information received from vendors regarding their status under the "Micro, Small and Medium Enterprises Development Act, 2006", the relevant Information is provided below:
(Rs. in Lakhs)
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Particulars
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Current Year
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Previous Year
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(a) Amount due to Micro, Small and Medium Enterprises as on
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i) Principal amount
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293.94
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203.74
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ii) Interest due on above
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6.71
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6.09
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(b) i) Principal amount paid after due date or appointed day during the period
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NIL
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NIL
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ii) Interest paid during the period on (i) above
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NIL
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NIL
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(c) Interest due & payable (but not paid) on principal amounts paid during the period after the due date or appointed day
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5.42
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NIL
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(d) Total interest accrued and remaining unpaid as on
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12.80
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6.09
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(e) Further interest in respect of defaults of earlier years due and payable in current period up to the date when actually paid
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NIL
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NIL
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b. All the Current assets, loans and advances, in the opinion of the Board, have a value on realization which in the ordinary course of business shall at least be equal to the amount at which it is stated in the balance sheet.
c. The Company has made an investment of the requisite amount for setting up new projects in the State of Uttar Pradesh in accordance with the UP Sugar Industry Promotion Policy, 2004 and has accordingly filed application for eligibility under the above policy. However, the State Government has later on terminated the Policy with effect from June 4, 2007 and based on that rejected the application. The Company had filed writ petition before Hon'ble Allahabad high court (Lucknow Bench) for enforcement of the scheme and settlement of incentive claims.
As per the erstwhile incentive policy, the Company claims to be eligible for capital subsidy of Rs. 3847 lakhs (10 % of total investment) and remission/exemption/ reimbursement of taxes, duties & other charges aggregating to Rs. 9277 lakhs, which will be accounted for in the year of final decision of Hon'ble court.
d. Supplier's credit balance against farmers crop loan appearing under other financial liabilities (note no. 18) represent loan of Rs. 1346.42 lakhs (Previous year Rs. 2585.90 lakhs) from IDBI Bank Ltd to the cane growers under corporate tie up scheme for Crop loans, wherein the Company is acting as 'Business Facilitator' and the same is backed by indemnity/guarantee of the Company and personal guarantee of the Managing director.
e. Exceptional item represents a sum of nil (Previous year Rs.452.01 lakhs) being society commission relating to sugar season 2015-2016 which was recoverable from the State Government of Uttar Pradesh vide order dated 05th February, 2016, has now been written off during the last year in pursuance of Government order dated 28th December, 2016.
f. For sugar season 2016-2017 financial assistance of Rs.2/- per quintal was granted vide Govt. of Uttarakhand Order No.02/XIV-2/2017/7(6)72013 T.C.-2016 Dtd 03.01.2017, the Company has accounted for an amount of Rs. 117.63 lakhs during the last year (note no. 6). The aforesaid financial assistance has been reduced from cane cost.
g. For sugar season 2015-2016 financial assistance of Rs. 23.30/- per quintal was granted vide Govt. of Uttarakhand Order No.XIV-2/2016/7(6)72013 Dated 08.02.2016, the Company has accounted for an amount of Rs. 914.72 lakhs during the last year. The aforesaid financial assistance has been accounted for Rs. 823.47 lakhs shown under other operating revenue (Note No. 25) & Rs. 91.25 lakhs has been reduced from cane cost.
h. Disclosure in respect of Operating Lease:
The Company has entered into non-cancelable Operating Lease for premises and vehicles and lease rent amounting to Rs.64.75 Lakhs (Previous year Rs. 93.65 Lakhs) have been charged to Statement of Profit & Loss. The future minimum lease payments are as under:-
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