New India Retailing & Investment Ltd. के अकाउंट के लिये नोट

Mar 31, 2012

1. CORPORATE INFORMATION

The Company is engaged in retailing operations having a designer store which has showcased Worldwide fashion exhibiting the products of international brands. It provides a perfect blend of leading Indian designers products as well. This iconic fashion store is one of the few haute couture stores in eastern India to showcase the spectrum of contemporary Indian fashion.

(a) Terms/ rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share.The company declares and pays dividend in Indian Rupees. The Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2012, the amount of per share dividend recognised as distributions to equity shareholders was Rs.0.50(31 st March 2011 :- Rs.0.50)

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 up or credited as paid up.

(b) Terms of redemption of Non Convertible Cumulative Preference Shares

The Non Convertabile Cumulative Prefernce Shares of Rs. 100 each issued in earlier year carry a dividened @ 8% p.a. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Non Convertabile Cumulative Preference shares shall be redeemable at par at any time within a period of 10 years from the date of allotment i.e 1st December ,2009, as may be decided by the Board of Directors.

Each holder of Non Convertible Cumulative Preference Share have a right to vote at every resolution placed before the General Meeting of the Company if the dividend due on such shares or any part of such dividend remains unpaid for a period of 2 years ending with the expiry of the financial year immediately preceding the commencement of the General Meeting.

Term Loan from bank carries interest rate of l-Base plus 6.50% p.a.The loan is repayable in 32 quarterly instalments of Rs. 6.25 lacs starting from the date of loan i.e August 9, 2006. The loan is secured by way of equitable mortagage of Land & Building at 85-B Sarat Bose Road, Kolkata-700 026.

2. Other Commitments

Uncalled capital on partly paid shares held as Investments Rs. 12 thousands (Rs. 12 thousands).

3. Gratuity and other post-employment benefit plans.

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The Scheme is unfunded.

The following tables summarize the components of net benefit expenses recognized in the Statement of Profit & Loss and amounts recognized in the balance sheet for the gratuity.

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

*The management has relied on the overall actuarial valuation conducted by the actuary. However, experience adjustments on plan liabilities are not readily available and hence not disclosed.

4. Minimum Alternate Tax (MAT) credit entitlement of Rs 7,226 thousands (Rs. 6,003 thousands), being available as tax credit for set off in future years as per the Income Tax Act, 1961, is carried forward for future adjustments based on future profitability projections.

5. There is a diminution of Rs.107,291 thousands ( Rs. 90,750 thousands) in the value of certain long term quoted investments based on their quoted price, which having regard to long term investment of the Company and being temporary in nature has not been provided for.

6. (a) The Company has given an undertaking to a financial institution not to transfer, pledge, hypothecate or otherwise dispose off its shareholding in Upper Ganges Sugar & Industries Limited without their prior approval in writing till the loan of the financial institution to the said Companies remains outstanding.

(b) The Company has pledge shares of The Oudh Sugar Mills Limited , a promoter Group company against the loan facility availed by the said promoter group company.

7. Miscellaneous expenses includes Rs 638 thousand towards misappropriation of cash by one of the employees of the Company. The Company has filed a legal complaint against the said employee and has also terminated his service.

8. The Company has only one business segment viz. trading of goods and related activities and its operations are also confined to one geographical segment i.e. India. As such, no further disclosure under Accounting Standard 17 "Segment Reporting" is required.

9. There is no related party in terms of Accounting Standard 18 "Related Party Disclosures".

10. Based on the information''s/documents available with the Company, no creditor is covered under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly , no disclosures has been made in these accounts.

11. Till the year ended 31 March 2011, the company was using the pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the company. The company has reclassified previous year figures to conform to this year''s classification. Figures given in the brackets unless specified otherwise represent those of previous year.

---

Mar 31, 2009

1. Contingent Liability not provided for in respect of (i) Uncalled capital on partly paid shares held as Investments Rs. 12 thousands (Rs. 12 thousands).

(ii) Arrear dividend on cumulative redeemable Preference Shares Rs. 1008 thousands (Nil).

2. Diminution of Rs. 123,937 thousands (Rs. 33,577 thousands) in the value of certain quoted investments based on their quoted price has not been provided, as the break-up value of the said companies supplemented by the market value as on 31st March, 2009, of the quoted investments held by them is much higher.

3. Gratuity and other post-employment benefit plans

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The Scheme is unfunded.

The following tables summarize the components of net benefit expenses recognized in the Profit & Loss Account and the funded status and amounts recognized in the balance sheet for the gratuity plans.

4. The Company has only one business segment viz. trading of goods and related activities and its operations are also confined to one geographical segment i.e. India. As such, no further disclosure under Accounting Standard 17 "Segment Reporting" as notified under the Companies (Accounting Standards) Rules 2006, is required.

5. Related Party Disclosures:

There is no related party in terms of Accounting Standard 18, notified under the Companies (Accounting Standards) Rules, 2006

6. The Company has received 12,97,938 detachable warrants against subscription to Right Issue of The Oudh Sugar Mills Limited. As per the terms, the Investee Company has the right to exercise the option to allot shares against these warrants between 12th March, 2009 to 11th September, 2012.

7. The Company has given an undertaking to a financial institution not to transfer, pledge, hypothecate or otherwise dispose off its shareholding in The Oudh Sugar Mills Limited & Upper Ganges Sugar & Industries Limited without their prior approval in writing till the loan of the financial institution to the said Companies remains outstanding.

8. Based on the informations/documents available with the Company, no creditor is covered under Micro, Small and Medium Enterprises Development Act, 2006. As a result, no interest provisions/payments have been made by the company to such creditors, if any, and no disclosures are made in these accounts.

9. Figures given in the brackets represent those of previous year. Previous years figures have been regrouped where necessary to conform to this years classification.

---

Mar 31, 2008

1. Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for: Nil (Rs. 557 thousands).

2. Contingent Liability not provided for in respect of uncalled capital on partly paid shares held as Investments Rs. 12 thousands (Rs. 70 thousands).

3. (a) Pursuant to the scheme of amalgamation approved by the shareholders of the Company and the Honble High Court at Calcutta, by an order dated 26th November, 2007, all the assets and liabilities of Darbhanga Marketing Company Limited (DMCL), a wholly owned subsidiary of the Company (Investment Company), have been vested in the Company from 1st April, 2007 at their book value and the same have been incorporated in these accounts.

(b) The amalgamation has been accounted for under the "pooling of interests" method as prescribed by Accounting Standard (AS-14) issued by the Institute of Chartered Accountants of India. Pursuant to the scheme, all the assets, liabilities and reserves of DMCL as at 1st April, 2007 have been transferred at book values. The scheme has, accordingly, been given effect to in these accounts and Rs. 789 thousands being the difference between the cost of Companys Investment in DMCL and the amount of Share Capital & Share Premium thereon appearing in the books of DMCL, has been credited to Capital Reserve.

4. Diminution of Rs. 33,577 thousands in the value of certain quoted investments based on their quoted price has not been provided, as the break-up value of the said companies supplemented by the market value as on 31st March, 2008, of the quoted investments held by them is much higher.

5. Gratuity and other post-employment benefit plans In current year, the Company has adopted Accounting Standard 15 (revised) - Employee Benefits, which is mandatory from accounting periods commencing on or after December 7, 2006. Accordingly, the company has provided for gratuity and long term compensated leave encashment based on actuarial valuation done as per projected unit credit method. This change does not have any material impact on the profit for the current year. The above liabilities are not funded.

The following tables summarize the components of net benefit expenses recognized in the Profit & Loss Account and the funded status and amounts recognized in the balance sheet for the respective plans.

6. The Company has only one business segment and its operations are also confined to one geographical segment i.e. India. As such, no further disclosure under Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, is required.

7. In terms of Accounting Standard 22, net Deferred Tax Asset (net) of Rs. 6153 thousands (after adjusting deferred tax liability of Rs. 85 thousands for the year) have been recognized in the accounts upto 31st March. 2008. Although there is carried forward unabsorbed depreciation and business loss, the management based on future profitability projections is certain that there would be sufficient taxable income in the future, to claim the above tax credit.

8. The Company has given an undertaking to a financial institution not to transfer, pledge, hypothecate or otherwise dispose off its shareholding in The Oudh Sugar Mills Limited & Upper Ganges Sugar & Industries Limited without their prior approval in writing till the loan of the financial institution to the said Companies remains outstanding.

9. Corresponding figures for the previous year, which are given in brackets, have been regrouped and / or re- arranged, wherever necessary. Further, the current years figures being inclusive of the figures of a subsidiary company, which has been amalgamated with the Company with effect from 1 st April, 2007, are not comparable with the previous years figures.

---

Mar 31, 2007

1. Secured Loan Notes:

1) Term Loan from the Bank is secured by first charge by way of Equitable mortgage of Land & Buildings of the Companys showroom at Lansdowne, Kolkata

2) The above loans include Rs. 40,100 thousands (Rs 27,400 thousands) falling due for payment within one year.

2. Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs 557 thousands (Nil).

3. Contingent Liability not provided for in respect of uncalled capital on partly paid shares held as Investments of Rs 70 thousands [Rs 99 thousands].

4. Dividend on Cumulative Convertible Preference shares provided during the year 2005-06 included Rs 163 thousands, which was inadverterly provided on preference shares held by erstwhile Saran Trading Co. Ltd., which was amalgamated with the Company with effect from 1st April 2005. Accordingly, the above amount of unpaid dividend is written back and included under the head Unspent liabilities & provisions and unclaimed balances no longer required written back in Schedule 12.

5. Earnings per Share (EPS):

In terms of Accounting Standard AS-20, the calculation of EPS is given below: -

2006-07 2005-06 Profit / (Loss) as per Profit & Loss Account (Rs. in 000) (2768) 20958 Weighted average No. of Equity Shares outstanding during the year 1452995 1452995 Basic and Diluted EPS (Rs.) (1.91) 14.42 Nominal value of Equity Share (Rs.) 10.00 10.00

6. The Company is engaged in the trading of various goods and products including sugar, dress materials, moorti, photos, curio goods, etc. The entire operations are governed by the same set of risks and returns. Hence the same has been considered as representing a single segment; the operations of the Company are confined to one geographical segment i.e. India, these treatment are in accordance with the guiding principle enunciated in the accounting standard (AS 17) "Segment Reporting".

7. In terms of Accounting Standard 22, net Deferred Tax Asset of Rs. 6238 thousands (including Rs. 4051 thousands for the year) have been recognized in the accounts upto 31 st March, 2007. The Board of Directors of the Company has passed a resolution to give effect to merger of its fully owned subsidiary, namely, Darbhanga Marketing Company Limited with effect from 1st April, 2007. In view of the said merger, it is virtually certain there would be sufficient taxable income in the future, to claim the above tax credit.

The break-up of Deferred Tax Asset as on 31st March, 2007 is as follows:

Rs. in 000 2006-07 2005-06

(A) Deferred Tax Asset

(i) Carry forward unabsorbed busi- ness losses and depreciation 7,963 3,007 (ii) Expenses allowable against taxable income in future years 17 53

7,980 3,060

(B) Deferred Tax Liability

Timing Difference in depreciable assets 1,742 873 Net Deferred Tax Asset (A- B) 6,238 2,187

8. Related Party Disclosures:

(a) Names of the Related Parties:

Subsidiary Company : Darbhanga Marketing Company Limited Key Management Personnel: Shri R N Bagaria, Company Secretary (upto 26th February, 2007) Enterprise having Upper Ganges Sugar & significant influence : Industries Limited (upto 12th June, 2006)

9. Corresponding figures for the previous period, which are given in brackets, have been regrouped and / or re- arranged, wherever necessary. Further, the current years figures, being for 12 months as against 9 months in the previous period and also being inclusive of figures for Fashion Design store launched during the year, are not comparable with the previous periods figures.

---

Mar 31, 2006

ANNUAL REPORT 2005-2006

NOTES ON ACCOUNTS

ACCOUNTING POLICIES AND NOTES ON ACCOUNTS:

1. Accounting Policies:

(1) Basis of Accounting:

The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis, as per normally accepted accounting principles, except for the Claims / Refunds, which due to uncertainty in realisation, are accounted for on cash / acceptance basis.

(2) Fixed Assets:

Fixed assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses, erection/commissioning expenses etc. upto the date the asset is ready for its intended use.

The carrying amounts of assets are reviewed at each balance sheet date to determine wherever there is any indication of impairment based on external/internal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount, which represents the greater of the net selling price and 'Value in use' of the assets. The estimated future cash flows considered for determining the value in use, are discounted to their present value at the weighted average cost of capital.

Assets awaiting disposal are disclosed separately in fixed assets schedule at the lower of written down value or net realisable value.

(3) Depreciation:

(a) Depreciation is provided under straight line method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

(b) Depreciation in respect of fixed assets added/disposed off during the year is provided on pro-rata basis, with reference to the date of addition/disposal.

(c) In case of impairment, if any, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

(4) Investments:

Current Quoted Investments are stated at lower of cost or market rate on individual investment basis. Unquoted/Long Term Investments are considered 'at cost' on individual investment basis, unless there is a decline other than temporary in value thereof, in which case adequate provision is made against such diminution in the value of investments.

(5) Borrowing Costs:

Borrowing costs relating to the acquisition / construction of qualifying assets are capitalised until the time all substantial activities necessary to prepare the qualifying assets for their intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

(6) Inventories:

Inventories are valued at lower of cost (computed on annual weighted average / first-in-first-out basis) or net realisable value.

(7) Foreign Currency Transactions:

(a) Initial Recognition:

Foreign currency transactions are recorded in the reporting currency, by applying to tree foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

(b) Conversion:

Foreign currency monetary items are reported using the closing rate. Non- monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction, and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

(c) Exchange Differences:

Exchange differences arising on the settlement/conversion of monetary items are recognized as income or expenses in the year in which they arise except those relating to acquisition of fixed assets outside India, in which case such exchange differences are capitalized.

The premium or discount arising at the inception of forward exchange contracts is amortized as expenses or income over the life of the respective contracts. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or expense for the year.

(8) Retirement Benefits:

(a) The Company has created an approved gratuity fund, which has taken a group gratuity insurance policy with Life Insurance Corporation of India (LIC), for future payment of gratuity to the employees. The Company accounts for gratuity liability equivalent to the premium amount payable to LIC every year, which together with annual contribution in subsequent years would be sufficient to cover the gratuity liability as and when it accrues for payment. In case of its trading division, gratuity is accounted for based on actuarial valuation.

(b) Leave liability is provided for on the basis of actuarial valuation.

(c) Retirement benefits in the form of provident fund, pension scheme and superannuation fund are charged to the Profit & Loss Account of the year when the contributions to the respective funds are due.

(9) Segment Reporting:

(a) Identification of Segments:

The Company has identified that its operating segments are the primary segments. The Company's operating businesses are organized and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products and serves different markets. The analysis of geographical segments is based on the areas in which the customers of the Company are located.

(b) Allocation of Common Costs:

Common allocable costs are allocated to each segment on case to case basis applying the ratio, appropriate to each relevant case. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, are included under the head 'Unallocated - Common'.

The accounting policies adopted for segment reporting are in line with those of the Company.

(10) Earning per Share:

Earning per Share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted number of equity shares outstanding during the period.

For the purpose of calculating diluted earning poi share, net profit or loss for the period attributable to equity share holders and the weighted average no. of shares outstanding during the period are adjusted for the effect of all dilutive potential equity shares.

(11) Taxation:

Provision for Income tax comprises of current tax and deferred tax charge or release. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being difference between taxable and accounting income/expenditure that originate in one period and are capable of reversal in one or more subsequent period(s). Deferred tax assets are not recognized unless there is 'virtual certainty' that sufficient future taxable income will be available against which such deferred tax assets will be realized.

Fringe Benefit tax is provided in accordance with the provisions of the Income Tax Act, 1961.

(12) Provisions:

A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

(13) Contingencies:

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of notes to the accounts.

2. Contingent Liability not provided for in respect of uncalled capital on partly paid shares held as Investments of Rs.0.99 lac (Rs.0.12 lac).

3.(a) In view of taxable loss for the year ended 31st March, 2006, no provision for taxation has been made.

(b) In terms of Accounting Standard 22, net Deferred Tax Asset of Rs.21.87 lacs (including Rs.14.16 lacs for the period) have been recognized in the accounts upto 31st March 2006. Although there is carried forward unabsorbed depreciation and business loss, the management based on future profitability projections is certain that there would be sufficient taxable income in the future, to claim the above tax credit.

The break-up of Deferred Tax Asset as on 31st March 2006 is as follows:

(Rs. in lacs)

2005-06 2004-05

(A) Deferred Tax Asset:

(i) Carry forward unabsorbed business losses and depreciation 30.07 15.33

(ii) Expenses allowable against taxable income in future years 0.53 0.50

30.60 15.83

(B) Deferred Tax Liability:

Timing difference in depreciable assets 8.73 8.12

Net Deferred Tax Asset (A-B) 21.87 7.71

4. The Company's segment information as at and for the period ended 31st March, 2006 are as below:

(Rs. in lacs)

Sugar Trading Goods Total (a) Revenue (net of excise duty and cess) External sales - 11.63 11.63 (315.16) (29.30) (344.46)

(b) Results Segment Results: Loss - 6.71 6.71 (97.00) (7.85) (104.85)

Unallocated income net of 206.72 unallocated expenses (28.21)

Operating Profit / (-) Loss 200.01 (-76.64) Interest Expenses (net) 3.62 (137.08) Wealth & Fringe Benefit Tax 0.97 (0.28)

Deferred Tax Asset (net) 14.16 (89.52) Excess provision for - taxation written back (0.04) Net Profit / (-) Loss 209.58 (-124.44) (c) Total Assets:

Segment Assets - 1313.28 1313.28 (-) (102.36) (102.36) Unallocated Assets 1313.70 (1313.38) 2626.98 (1415.74)

(d) Total Liabilities Segment Liabilities - 929.56 929.56 (-) (8.74) (8.74) Unallocated Liabilities 576.60 (467,07)

1506.16 (475.81)

(e) Other Information:

(i) Capital Expenditure - 280.97 280.97 (4.30) (1.31) (5.61)

(ii) Depreciation for the period - 3.31 3.31 (29.08) (2.70) (31.78)

(f) Geographical Segments

Revenue 11.63 India (344.46) Overseas - 11.63 (344.46)

Notes:

(i) Business Segment:

The business segments have been identified on the basis of the products of the Company. Accordingly, the Company has identified 'Sugar' and 'Trading Goods' as the operating segments:

Sugar:

Consists of manufacture and sale of Sugar, Molasses & Bagasse.

Trading Goods:

Consists of trading of various goods and products, including Sugar, dress materials, moorti, photos and curio goods.

(ii) Geographical Segment:

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

(iii) The Company has common fixed assets for producing goods for domestic and overseas. Hence, separate figures for fixed assets/additions to fixed assets thereof cannot be furnished.

5. Earnings per Share (EPS):

In terms of Accounting Standard AS-20, the calculation of EPS is given below:

2005-06 2004-05 Profit / (Loss) as per Profit & Loss Account (Rs. in lacs) 209.58 (124.44)

Weighted average No. of Equity Shares outstanding during the period 1452995 1452995

Basic and Diluted EPS (Rs.) 14.42 (8.56)

Nominal value of Equity Share (Rs.) 10.00 10.00

6. Related Party Disclosures:

(a) Names of the Related Parties:

Subsidiary Company: Darbhanga Marketing Company Limited

Key Management Personnel: Shri R. N. Bagaria, Company Secretary

Enterprise having significant Upper Ganges Sugar & influence: Industries Limited

(b) Aggregated Related Party Disclosures as at and for the period ended 31st March 2006.

(Rs. In lacs)

Subsidiary Key Management Personnel

Transaction Balance Transaction Balance Value Outstanding Value Outstanding as on as on 31.03.2006 31.03.2006

Interest Expense:

Upper Ganges Sugar & - - - - Industries Limited (-) (-) (-) (-)

Dividend Income:

Upper Ganges Sugar & - - - - Industries Limited (-) (-) (-) (-)

Purchase of Trading Goods:

Upper Ganges Sugar & - - - - Industries Limited (-) (-) (-) (-)

Loans & Deposits taken:

Darbhanga Marketing 264.50 268.00 - - Company Limited (89.25) (11.50) (-) (-)

Loans & Deposits repaid:

Darbhanga Marketing 8.00 - - - Company Limited (154.25) (-) (-) (-)

Intercorporate Loans taken:

Upper Ganges Sugar & - - - - Industries Limited (-) (-) (-) (-)

Intercorporate Loans refunded:

Upper Ganges Sugar & - - - - Industries Limited (-) (-) (-) (-)

Balances outstanding on current account (net) credit:

Upper Ganges Sugar & - - - - Industries Limited (-) (-) (-) (-)

Remuneration:

Sri R.N.Bagaria - - 5.14 - (-) (-) (6.26) (-)

Enterprises having Total Significant Influence Transaction Balance Transaction Balance Value Outstanding Value Outstanding as on as on 31.03.2006 31.03.2006 Interest Expense: Upper Ganges Sugar & 16.27 - 16.27 - Industries Limited (33.66) (13.33) (33.66) (13.33)

Dividend Income: Upper Ganges Sugar & 10.80 - 10.80 - Industries Limited (10.80) (-) (10.80) (-)

Purchase of Trading Goods: Upper Ganges Sugar & 450.28 450.28 450.23 450.28 Industries Limited (-) (-) (-) (-)

Loans & Deposits taken: Darbhanga Marketing - - 264.50 268.00 Company Limited (-) (-) (89.25) (11.50)

Loans & Deposits repaid: Darbhanga Marketing - - 8.00 - Company Limited (-) (-) (154.25) (-)

Intercorporate Loans taken: Upper Ganges Sugar & 225.00 274.00 225.00 274.00 Industries Limited (311.99) (349.00) (311.99) (349.00)

Intercorporate Loans refunded: Upper Ganges Sugar & 300.00 - 300.00 - Industries Limited (11.99) (-) (11.99) (-)

Balances outstanding on current account (net) credit: Upper Ganges Sugar & - 0.14 - 0.14 Industries Limited (-) (85.89) (-) (85.89)

Remuneration: Sri R.N.Bagaria - - 5.14 - (-) (-) (6.26) (-)

7. Additional information pursuant to the provisions of Clause 3, 4C and 4D of Part II of Schedule VI of the Companies Act, 1956 Quantitive Information:

I. Particulars about Goods Produced, etc:

Class of Goods Unit Opening Stock Sales

Quantity Amount Quantity Amount (Rs. in lacs) (Rs. in lacs)

Sugar Qtls. - - - - (1,00,820) (1,375,45) (18,706) (311.99)

Molasses Qtls. - - - - (95,485) (66.00) (21,468) (29.86)

Bagasse Qtls. - - - - (416) (0.07) (-) (-)

Miscellaneous - - - - (0.97) (-)

- - (1,442,49) (341.85)

Class of Goods Unit Transferred under Closing Stock Scheme of Arrangement Qty Amount Qty Amount (Rs.in lacs) (Rs. in lacs)

Sugar Qtls. - - - - (82,114) (1,117.96) (-) (-) Molasses Qtls. - - - - (74,017) (30.95) (-) (-) Bagasse Qtls. - - - - (416) (0.07) (-) (-)

Miscellaneous - - - - (0.97) (-)

- - (1,149.95) (-)

II. Particulars about Traded Goods, etc.

Class of Goods Unit Opening Stock Purchases

Qty Amount Qty Amount (Rs. in (Rs. in lacs) lacs)

Sugar Qtls. - - 48,256 924.23 (-) (-) (-) (-)

Readymade PCs. 6,799 36.01 203 1.44 Garments (5,271) (28.90) (4,973) (23.21)

Sundry Materials PCs. 9,215 4.90 2,820 0.59 (11,473) (5.57) (16,989) (4.25)

40.91 926.26 (34.47) (27.46)

Class of Goods Unit Sales Closing Stock Qty Amount Qty Amount (Rs. in (Rs. in lacs) lacs) Sugar Qtls. - - 48,256 924.23 (-) (-) (-) (-) Readymade PCs. 1,228 8.53 5,774 27.83 Garments (3,445) (21.88) (6,799) (36.01) Sundry Materials PCs. 9,954 3.10 2,081 2,53 (19,247) (7.42) (9,215) (4.90) 11.63 954.59 (29.30) (40.91)

8. Corresponding figures for the previous year, which are given in brackets, have been regrouped and / or rearranged, wherever necessary. Further, the previous year's figures, being for 12 months as against 9 months in the current year and also being inclusive of figures for a part of the year (upto 30th September, 2004) in relation to the demerged Sugar Division (transferred to Upper Ganges Sugar & Industries Ltd. with effect from 1st October 2004), are not comparable with the current year's figures.

S. R. BATLIBOI & CO. Chartered Accountants

Per R. K. AGRAWAL a Partner Membership No. 16667

22, Camac Street, Block `C', 3rd Floor, Kolkata - 700 016 R. N. BAGARIA C. S. NOPANY Chairman Dated : 15th May, 2006 Secretary R. TAPURIAH Director

---

Mar 31, 1999

1. No provision has been made in respect of :

a. Doubtful advances aggregating to Rs. 3.95 lacs (Rs. 6.19 lacs)

b. Cane purchase tax (amount unascertained) payable under Bihar Finance Act, 1981 as the Company has contended in pending court proceedings that no purchase tax is payable. However, the amount of Rs. 63.61 lacs already paid (under protest) during the year, has been charged to Profit and Loss Account. Final adjustment, if any, in this regard will be made on decision of the writs.

2. Market fee payable under Bihar Agriculture Market Produce Act is being contested by way of writ in various Courts. However, the total liability, except for Rs. 4.61 lacs, has been paid/provided in the accounts. Final adjustment, if any, in this regard, will be made on decision of the writs.

3. Pending decision of Delhi High Court, no credit has been taken to the Profit & Loss Account in respect of Rs 1.44 lacs received in terms of the award of sole arbitrator against loss on sugar sold to State Trading Corporation for export but not lifted by them and thus sold in open market by the Company and the same continues to be shown under the head "Current Liabilities".

4. In pursuance of the judgement/directions of Hon'ble Supreme Court in levy sugar matters, the Central Government is yet to fix the levy sugar prices for various years, after considering the impact of additional cane price under Clause 5A of the Sugarcane (Control) Order. Due to non-fixation of the above prices, the exact amount receivable/payable by the company (with interest and additional cane price, if any) in this regard is not presently determinable and thus, would be accounted for as and when the matter is finally settled. Further, excise duty on the above levy sugar price being unascertainable, has not been provided for, which even if it accrues for payment, would be recoverable from the respective customers. Further, writs/appeals with regard to levy sugar prices for some years are still pending in the Courts.

Pending fixation of levy sugar price and disposal of various writs/appeals, Rs. 68.01 lacs (net) received as excess levy sugar price in respect of these years, against which bank guarantees furnished by the Company for Rs. 68.01 lacs, are in force in terms of the Court Orders, is included under the head `Current Liabilities'. Necessary adjustment in this regard will be made in the accounts as and when the matter will be finally settled.

5. Pursuant to the stay granted by Patna High Court regarding the validity of control on supply of molasses for the manufacturing of country spirit (including specified spirit) within the State of Bihar, no credit has been taken for Rs. 2.83 lacs being the difference between the control price fixed by the Government and the market price fixed by the Excise Commissioner and the same will be accounted for on disposal of the case.

6. a. Levy sugar sales for the season 1998-99 have been accounted for on the basis of prices provisionally fixed by the Government. Further realisation, if any, in this regard would be accounted for upon notification of final price by the Government.

b. The closing Stock of levy sugar has also been valued with reference to the provisional prices.

7. The Company has given an undertaking to a financial institution, not to dispose of its shareholdings in upper Ganges Sugar & Industries Limited, so long as the loan taken by the company from the above financial institution remains outstanding.

8. Tax provision for the year includes Rs. 6.65 lacs towards Minimum Alternate Tax (MAT) as per Section 115JA of the Income-tax Act, 1961, which along with Rs. 5.00 lacs provided under MAT in the previous year, may be available as tax credit for set-off in the coming years in terms of Section 115JAA of the said Act.

9. Leave liability to employees aggregating Rs. 3.49 lacs which was hitherto accounted for on cash basis, has been provided for on the basis of actuarial valuation.

10. Unlike previous year, excise duty of Rs. 103.88 lacs on finished goods stock lying at the factory as on the Balance Sheet date, has been provided for in the accounts and considered for valuation of respective inventories as well. However, the above adjustment has no impact on the operating results of the Company for the year.

---

Mar 31, 1998

Details not available in 1998-99 report.

---

Mar 31, 1997

1.No provision has been made in respect of:

(a) Debts and advances considered doubtful and/ or under litigation Rs. 4.31 lacs (Rs. 0.91 lac)

(b) Cane Purchase Tax of Rs. 192.68 lacs as the Company has contended in pending court proceedings that no Purchase Tax is payable.

(c) Demand of land revenue as salami amounting to Rs. 0.94 lac and rent @ Rs. 0.05 lac per year with effect from the year 1956 aggregating to Rs. 1.94 lacs (Rs. 1.89 lacs) approximately against which the Company has obtained a stay order from the Patna High Court.

2.Market fee payable under Bihar Agriculture Market Produce Act is being contested by way of writ in the Patna High Court. However, the total liability, except for Rs. 4.61 lacs has been paid / provided in the accounts. Final adjustment in this regard, will be made on decision of the writs.

3.Pending decision of various courts on writ petitions filed by the Company, no credit has been taken to the Profit & Loss Account in respect of the following amounts realised and the same continue to be shown under the head "Current Liabilities" :-

(a) Amount of Rs. 1.44 lacs received in terms of the award of sole arbitrator against loss on sugar sold to State Trading Corporation for export but not lifted by them and thus sold in open market by the Company.

(b) Amount of Rs. 3.88 lacs received from N.E. Railway towards excess payment of Railway siding charges by the Company in earlier years.

Against the above, bank guarantees aggregating to Rs. 5.32 lacs have been furnished by the Company as per the directions of various courts.

4. In pursuance of the Supreme Court judgement in levy sugar matters, the Central Government has notified the revised prices for levy sugar for the years 1974-75 to 1979-80. However, the exact amount receivable/payable by the Company (with interest, if any) being not yet determinable as the Central Government has to re-fix the levy sugar price as per Supreme Court Order after considering the additional cane prices under Clause 5A of the Sugarcane (Control) Order, the same would be accounted for as and when the matter is finally settled. Further, excise duty on the above levy sugar price being unascertainable, has not been provided for, which even if it accrued for payment, would be recoverable from the respective customers.

Further, writs / appeals with regard to levy prices for some years are pending. In view of the above, Rs. 68.01 lacs (net of Rs. 11.53 lacs, being 50% of the bank guarantees encashed earlier in terms of the Supreme Court judgement) received as excess levy sugar price against which bank guarantees furnished by the Company are in force, in terms of the court orders, are included under the head 'Current Liabilities'. Necessary adjustment in this regard will be made in the accounts after final determination / judgement of the writs / appeals.

5. Pursuant to the stay granted by Patna High Court regarding the validity of control on supply of molasses for the manufacturing of country spirit (including specified spirit) within the State of Bihar, no credit has been taken for Rs. 2.83 lacs being the difference between the control price fixed by the Government and the market price fixed by the Excise Commissioner and the same will be accounted for on disposal of the case.

6. Pending final decision of the joint reference petition filed by the Company challenging tho award, no adjustment has been made for loss (amount unascertainable) which may arise on acquisition of co-ownership, land at Calcutta.

7. In the absence of adequate documents / information, amount due to small and ancillary undertakings included under Sundry Creditors could not be identified and specifically disclosed in the accounts.

8. Interest and holding charges on buffer stock of sugar which were hitherto being considered on cash basis, have been accounted for on accrual basis during the year, resulting into an increase in Profit for the year by Rs. 12.74 lacs.

9. Consumption of stores, manure and spare parts includes profits / loss on sales thereof.

10. The following items are included under other heads of expenses in the Profit & Loss Account

Rupees in lacs 1996-97 1995-96 a) Stores, Chemicals and Spare Parts 96.83 51.25 b) Salaries and Wages 14.43 10.54 c) Rent 0.32 0.29 d) Rates & Taxes 30.80 38.87 Revenue expenditure incurred on research and development 7.50 7.48

11. The Company has given an undertaking to a financial institution, not to dispose of its share holdings in Upper Ganges Sugar & Industries Limited, so long as the loan taken by the company from the above financial institution remains outstanding.

12. No provision has been made in respect of leave liabilities towards employees (amount unascertained) and the same, as per consistent practice, will be accounted for on cash basis.

13. Levy sugar sales for the season 1996-97 have been accounted for on the basis of prices provisionally fixed by the Government. Further realisation, if any, in this regard would be considered in the accounts upon notification of the final price by the Government.

14. Provision for taxation includes Rs. 381 lacs towards Minimum Alternate Tax (MAT) as per Section 115JA of the Income-Tax Act, 1961, which may be available as tax credit for set-off in the coming years in terms of Section 115JAA of the said Act.

15. Modvat credits amounting to Rs. 16.22 lacs (Rs. 12.00 lacs) on certain items under the category of capital goods and Rs. 5.36 lacs (Rs 3.84 lacs) on certain input items have not been considered, pending settlement of relevant disputes about their allow ability by the excise authorities.

16. Redeemable at par in accordance with the provisions of Section 80A of the Companies Act, 1956, by giving three months, notice in writing.

17. Convertible into 10 Fully paid up Equity Shares of Rs.10 each at par on the expiry of 7 years from the date of allotment i.e 25.09.1995. However, the Board may, with the approval of shareholders, convert the above preference shares into equity shares at any time after the expiry of a period of three years from the date of allotment.

---

Mar 31, 1996

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of notes to the accounts.

No provision has been made in respect of:

(a) Debts and advances considered doubtful and/or under litigation Rs. 0.91 lacs (Rs. 1.00 lacs)

(b) Cane purchase tax under Bihar Finance Act, 1981 for the period 1.5.83 to 31.3.96 amounting to Rs. 452.44 lacs (including Rs. 423.94 lacs for earlier years). In the event of the said tax being held ultimately not payable the Company, incidence thereof included in the levy sugar price (amount unascertained) for the years 1990-91 to 1995-96 will have to be paid to the Levy Sugar Price Equalisation Fund.

(c) Demand of land revenue as salami amounting to Rs. 0.94 lac and rent @ Rs. 0.05 lac per year with effect from the year 1956 aggregating to Rs. 1.89 lacs (Rs. 1.84 lacs) approximately against which the Company has obtained a stay order from the Patna High Court.

Market fee payable under Bihar Agriculture Market Produce Act is being contested by way of writ in the Patna High Court. However, the total liability, except for Rs. 4.61 lacs has been paid/provided in the accounts. Final adjustment this regard, will be made on decision of the writs.

Pending decision of various courts on writ petitions filed by the Company, no credit has been taken to the Profit & Loss Account in respect of the following amounts realised and the same continue to be shown under the head "Current Liabilities" :-

(a) Amount of Rs. 1.44 lacs received in terms of the award of sole arbitrator against loss on sugar sold to State Trading Corporation for export but not lifted by them and thus sold in open market by the Company.

(b) Amount of Rs. 3.88 lacs received from N.E. Railway towards excess payment of Railway siding charges by the Company in earlier years.

Against the above, bank guarantees aggregating to Rs. 5.32 lacs have been furnished by the Company as per the directions of various courts.

In pursuance of the Supreme Court judgment in levy sugar matters, the Central Government has notified revised prices for levy sugar for the years 1974-75 to 1979-80. The exact amount receivable/payable by the Company (with interest, if any) has not yet been determined. Further, writs/appeals with regard to levy prices for some years are pending. In view of the above, Rs. 68.01 lacs (net of Rs. 11.53 lacs, being 50% of the bank guarantees encashed earlier in terms of the Supreme Court judgment) received as excess levy sugar price against which bank guarantees furnished by the Company are in force, in terms of the Court Orders, are included under the head 'Current Liabilities'. Necessary adjustment in this regard will be made in the accounts after final determination/ judgment of the writs/ appeals.

Pursuant to the stay granted by Patna High Court regarding the validity of control on supply of molasses for the manufacturing of country spirit (including specified spirit) within the State of Bihar, no credit has been taken for Rs. 2.83 lacs being the difference between the control price fixed by the Government and the market price fixed by the Excise Commissioner and the same will be accounted for on disposal of the case.

Pending final decision of the joint reference petition filed by the Company challenging the award, no adjustment has been made for loss (amount unascertainable) which may arise on acquisition of co-ownership land at Calcutta.

In the absence of adequate documents/ information, amount due to small and ancillary undertakings included under Sundry Creditors could not be identified and specifically disclosed in the accounts.

Consumption of stores, manure and spare parts includes profit/loss on sales thereof.

The following items are included under other heads of expenses in the Profit & Loss Account :

Rupees in lacs 1995-96 1994-95

a) Stores, Chemicals and Spare Parts 51.25 39.78

b) Salaries and Wages 10.54 7.98

c) Rent 0.29 0.21

d) Rates & Taxes 38.87 30.20

e) Insurance - 0.02

Revenue expenditure incurred on Research & Development 7.48 3.37

The Company has given an undertaking to financial institution, not to dispose of it shareholdings in Upper Ganges Sugar Industries Limited, so long as the loan take by the company from the above financial institution remains outstanding.

No provision has been made in respect of leave liabilities towards employees (amount unascertained) and the same, as per consistent practice, will be accounted for on cash basis.

Unlike previous year, interest and depreciation have been considered as a part of cost for the valuation of finished goods and process stock, resulting into an increase in the profit for the year by Rs. 41.27 lacs.

Modvat credits amounting to Rs. 12.00 lac on certain items under the category of capital goods and Rs. 3.84 lacs on certain input items have not been considered, pending settlement of relevant disputes about their allowability the excise authorities.

---

Mar 31, 1995

3. No provision has been made in respect of:

(a) Debts and advances considered doubtful and/or under litigation Rs. 1.00 lacs- (Rs. 0.63 lacs)

(b) Cane purchase tax under Bihar Finance Act, 1981 for the period 1.5.83 to 31.3.95 amounting to Rs. 423.94 lacs (including Rs. 390.07 lacs far earlier years). In the event of the said tax being held ultimately not payable by the Company, incidence thereof included in the levy sygar price (amount unascertained) for the years 1990-91 to 1994-95 will have to be paid to the Levy Sugar Price Equalisation Fund.

(c) Demand of land revenue as salami amounting to Rs. 0.94 lac and rent @ Rs. 0.05 lac per year with effect from the year 1956 aggregating to Rs. 1.84 lacs (Rs. 1.79 lacs) approximately against which the Company has obtained a stay order from the Patna High Court.

(d) Bonus liability for the period from 1.4.1993 to 31.3.1995 in terms of the Ordinance dated 9th July 1995, pending determination of the actual quantum thereof.

4. Market fee payable under Bihar Agriculture Market Produce Act is being contested by way of writ in the Patna High Court. However, the total liability, except for Rs. 4.61 lacs has been paid/provided in the accounts. Final adjustrnent in this regard, will be made on decision of the writs.

5. Pending decision of various courts on writ petitions filed by the Company, no credit has been taken to the Profit & Loss Account in respect of the following amounts realised and the same continue to be shown under the head "Current Uabilities" :-

(a) Amount of Rs. 1.44 lacs received in terms of the award of sole arbitrator against loss on sugar sold to State Trading Corporation for export but not lifted by them and thus sold in open market by the Company.

(b) Amount of Rs. 3.88 lacs received from N.E. Railway towards exceess payment of railway siding charges by the Company in earlier years.

Against the above, bank guarantees aggregating to Rs. 5.32 lacs have been furnished by the Company as per the directions of various courts.

6. In pursuance of the Supreme Court judgement in levy sugar matters, the Central Government has notified revised prices for levy sugar for the years 1974-75 to 1979-80. The exact amount receivable/payable by the Company (with interest, if any) has not yet been determined. Further, writs/appeals with regard to levy prices for some years are pending. In view of the above, Rs. 68.01 lacs (net of Rs. 11.53 lacs, being 50% of the bank guarantees encashed during the period in terms of the Supreme Court judgement) received as excess levy sugar price against which bank guarantees furnished by the Company are in force, in terms of the Court Orders, are included under the head 'Current Liabilities'. Necessary adjustment in this regard will be made in the accounts after final determination/judgement of the writs/appeals.

7. Pursuant to the stay granted by Patna High Court regarding the validity of control on supply of molasses for the manufacturing of country spirit (including specified spirit) within the State of Bihar, no credit has been taken for Rs. 2.83 lacs being the difference between the control price fixed by the Government and the market price fixed by the Excise Commissioner and the same will be accounted for on disposal of the case.

8. Pending final decision of the joint reference petition filed by the Company challenging the award, no adjustment has been made for loss (amount unascertainable) which may arise on acquisition of co-ownership, land at Calcutta.

9. In the absence of adequate documents/information, amount due to small and ancillary undertakings included under Sundry Creditors could not be identified and specitically disclosed in the accounts.

10. Consumption of stores, manure and spare parts includes profits/loss on sales thereof.

---

Jun 30, 1992

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs.63,84,762 (Rs.4.15.496).

3. Contingent liabilities not provided for in respect of:

(a) Claims against the Company not acknowledged as debts Rs.6,11,399 (Rs.2,33,417).

(b) Bills discounted with a bank Rs.61,611 (Rs.1,10,522).

(c) Guarantees given to a bank against loans to canegrowers Rs.29,95,154 (Rs.27,17,679).

(d) Excise duty on molasses destroyed/lying in kutcha pits Rs.9,71,769 (Rs.3,75,015).

No provision has been made in respect of:

(a) Debts and advances considered doubtful and/or under litigation Rs.1,28,225 (Rs.58,260).

(b) Cane purchase tax under Bihar Finance Act, 1981 for the period 1.5.83 to 30.6.92 amounting to Rs.6,40,71,587 (including Rs.4,88,14,399 for earlier years). In the event of said tax being held ultimately not payable by the Company, incidence thereof included in the levy sugar price (amount unascertained) for 1990-91 and 1991-92 will have to be paid to the Levy Sugar Price Equalisation Fund.

(c) Demand of land revenue as salami amounting to Rs.93,962 and rent @ Rs.4,698 per year with effect from the year 1956, aggregating to Rs.1,69,200 (Rs.1,64,500) approximately, against which the Company has obtained a stay order from Patna High Court.

(d) Levy of market fee on sugarcane is being disputed by the Company by way of writs. No provision has, therefore, been made in respect of Sidhwalia factory for the years 1978-79 to 1988-89.

However, the said levy for the subsequent years at Sidhwalia factory and for all the years in respect of Hasanpur factory has been paid under protest and final adjustment in this regard will be made in the accounts on disposal of the writs.

The Patna High Court has held that there can be no levy of market fee on sugar. Amount already paid in respect of free sugar is thus refundable and credit thereof will be taken as and when the amount is received.

(e) As the loss payable on export quota of sugar is not presently ascertainable, no provision has been made for such loss. However, Rs.6,47,888 (Rs.5,67,000) has been paid in this regard, to an agency through whom the exports have been made, as advance.

5. Pending decision of various Courts on writ petitions filed by the Company, no credit has been taken to the Profit & Loss Account in respect of the following amounts realised in earlier years and the same continues to be shown under the head "Current Liabilities" :-

(a) Amount of Rs.4,72,939 received in terms of the award of sole arbitrator against loss on sugar sold to State Trading Corporation for export but not lifted by them and thus sold in open market by the Company.

(b) A mount of Rs.3,88,484 received from N. E. Railway towards excess payment of railway siding charges by the Company in earlier years.

Against the above, bank guarantees aggregating to Rs. 8,61,423 have been furnished by the Company as per the directions of the various Courts.

6. Pending decision of various High Courts on writ petitions filed by the Company challenging the validity of levy and /or controlled price of sugar for various years, no adjustment has been made for excess realisation of sale price (including excise duty) amounting to Rs.1,52,34,698 (Rs.1,59,24,662) in the Profit & Loss Account and the said amount has been shown under the head "Current Liabilities." The above sum does not include the amount which may become further realisable from Food Corporation of India together with interest @ 12.5% per annum, in case the writ is decided in favour of the Company and the same will be accounted for on final decision of writs. Further, in case the above amount becomes refundable to the parties after decision of the writs, interest @ 12.5% per annum will have to be paid thereon by the Company which will be accounted for on cash basis. However, necessary bank guarantees as per directions of various High Courts have been furnished by the Company in the above matter.

7. Additional cane price. it any, payable for the year 1979.80 has not yet been determined. In view of this, liability of Rs.30, 19,770 provided in the accounts in earlier years has been written back to the Profit & Loss Account during the year. Any liability which may be determined, as payable by the Company in this regard, will be adjusted in the accounts in the year in which the liability is finally determined.

8. (a) Pending final decision of the joint reference petition filed by the Company challenging the award, no adjustment has been made for loss (amount unascertainable) which may arise on acquisition of co-ownership land at Calcutta.

(b) No adjustment has been made in respect of 49.59 acres of agricultural land surrendered to the Bihar Government as the compensation receivable thereof is pending settlement.

(c) The land ceiling matter under the Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) Act, 1961 for acquisition of agricultural lands by the Government is pending before the Hon'ble High Court at Patna and the proceedings have been stayed.

9. Tax liability for the period from 1st April, 1992 to 30th June, 1992 will be provided in the next year's accounts after determination of the financial results for the previous year ending 31st March, 1993.

10. Unlike previous year, certain expenses like salaries, employees' welfare, rates & taxes, insurance, etc. have been considered as a part of cost for the valaution of finished goods and process stock of sugar, resulting into an increase in profit for the year by Rs.31,36,980.

11. Consumption of stores, manure and spare parts includes profit/loss on sales thereof.