Sujana Universal Industries Ltd. के अकाउंट के लिये नोट

Mar 31, 2015

1) (a) Term loans availed from IDBI Bank Ltd are payable in 25 monthly installments commenced from July 1, 2014 and ending on July 1, 2016 and carrying interest rate BBR 650 basic points.

(b) The term loans are secured by way of first charge on the entire fixed assets of the Company, both present and future, ranking pari passu with the charges already created in favour of existing term lender and second charge on all the current assets of the Company, both present and future, and further secured by the guarantees of the Promoter Directors, namely Y S Chowdary and G Srinivasa Raju, in their personal capacities and corporate guarantee of M/s Sujana Metal Products Ltd.

(c) The term loans installments which are falling due within next 12 months are classified as current liability.

2) Vehicle loans availed from various banks and secured by way of charge of respective vehicles financed. Vehicles loan installments which are fallen due within 12 months are classified as current liability. There are no overdues;

3) Un-secured loans represents loans availed in the year 2011-12 from the Tejdeep Engineering Enterprises Pvt. Ltd and Tejeswini Engineering Pvt. Ltd to meet the working capital requirements.

4. Depreciation

Depreciation is provided on Straight Line Basis applying the rates specified in the Schedule II to the Companies Act, 2013. Depreciation on the revalued fixed assets charged to revaluation reserve.

5. Dues from Directors : Nil

6. Key Managerial Personnel

Shri G. Srinivasa Raju Managing Director

Shri B Manoharan Chief Financial Officer

Shri M Naresh Kumar Company Secretary

7. The discount rate of 7.80% per annum has been used as at 31-03-2015 for the purposes of the AS15 (Revised 2005) calculations. It has been chosen by reference to market yields on government bonds as at the same date.

a) In the case of Gratuity, the expected rate of return was assumed to be 9% per annum since the fund has earned interest at this rate as per the certificate issued by Insurance Companies.

b) In the case of Leave Encashment, the expected rate of return assumed to be 0% since there is no fund except provision.

8. Salary increase rate of 6% per annum has been assumed keeping in view of the inflation rate on long term basis.

9. Segment Reporting

The Company has identified three reportable segments viz. LEC Division, Appliance Division, Steel Division. Segments have been identified and reported taking into account the nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Un-allocable".

b) Segment assets and liabilities represent net assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Un-allocable".

10. Secondary Segments Information : Geographical

Revenue from geographical segment is based on location of its customers and total carrying amount of assets. The total cost incurred during the year to acquire fixed assets is based on geographical locations of the assets.

11. Balances under Sundry Debtors, Sundry creditors and Loans & Advances and other receivables and payables include long outstanding amounts are subject to confirmations to be received from most of the parties.

12. The Company has not received information / memorandum as required to be filed by the supplier with the notified authority under the MSMED Act, 2006 claiming their status as Micro or Small or Medium Enterprises. Hence, disclosure relating to amounts unpaid as at the yearend together with interest paid or payable under this act has not been given.

13. Contingent Liabilities

Particulars 2014-15 2013-14

1. Bank Guarantees

a) Bank of Baroda: Guarantee executed in favour of Commissioner Central Excise Rs. 8.00 Rs. 8.00 lakhs lakhs b) Corporate Guarantee provided by the Company to Mauritius Commercial Bank, Mauritius, US $ 20.00 US $ 20.00 on behalf of Hestia Holdings Millions Millions Ltd, Mauritius, wholly owned subsidiary to SUIL.#

c) Corporate Guarantee provided by the Company to Standard Bank (Mauritius) Limited on US $ 23.00 US $ 23.00 behalf of Selene Holdings Ltd, Millions Millions Mauritius, step down subsidiary to SUIL.#

d) Corporate Guarantee provided by the Company to Afrasia Bank Limited, Mauritius, on US $ 2.50 US $ 2.50 behalf of Selene Holdings Ltd, Millions Millions Mauritius, step down subsidiary to SUIL

e) Corporate Guarantee provided by the Company to Intra Asia Trading Pte. Ltd, Singapore, US $ 10.00 US $ 10.00 on behalf of Nuance Holdings Ltd, Millions Millions Hong Kong, wholly owned subsidiary to SUIL

f) Corporate Guarantee provided by the Company to Intra Asia Trading Pte. Ltd, Singapore, US $ 3.00 US $ 3.00 on behalf of Pac Ventures Pte. Millions Millions Ltd, Singapore, wholly owned subsidiary to SUIL

g) Corporate Guarantee provided by the Company to Rhodium Resources Pte. Ltd, Singapore, US $ 17.55 US $ 8.17 on behalf of Pac Ventures Pte. Millions Millions Ltd, Singapore, wholly owned subsidiary to SUIL

2. Standby Letter of Credit (SBLC)

a) Indian Overseas Bank: SBLC issued in favour of Apies Ventures US $ 12.20 US $ 12.20 Pte. Ltd Millions Millions

b) Indian Overseas Bank: SBLC issued in favour of United Industrial Group (Asia) Ltd US $ 10.03 US $ 10.03 Millions Millions c) Oriental Bank of Commerce: SBLC issued in favour of Pan Arabian International FZE. Nil US $ 9.00 However the said SBLC stands Millions discharged in month of May 2014.

d) Exim Bank of India: SBLC issued in favour of Exim Bank of India, London Branch, on behalf US $ 13.00 US $ 13.00 of Pac ventures Pte. Ltd, Millions Millions Singapore, wholly owned subsidiary to SUIL

3. Claims against the Company not acknowledged as debt

a) Sales Tax Rs. 64697.57lakhs Rs. 70064.41 lakhs

b) Customs & Central Excise Rs. 721.75 lakhs Rs. 721.75 lakhs

c) Income Tax Rs. 2648.45 lakhs Rs. 3585.56 lakhs

d) Workmen Compensation Rs.4.65 lakhs Rs.4.65 lakhs

* Company petition (C.P. 174/2013) filed by Standard Bank (Mauritius) Limited (SBML) against the Company u/s 433 of the Companies Act, 1956, in connection with the corporate guarantee furnished by the Company on behalf of its step down subsidiary Selene Holdings Ltd, Mauritius and Company petition (C.P 169/2013) filed by Mauritius Commercial Bank (MCB) against the Company u/s 433 of the Companies Act, 1956, in connection with the corporate guarantee furnished by the Company on behalf of its subsidiary Hestia Holdings Ltd, Mauritius was admitted by the High Court of Judicature of Hyderabad for the State of Telangana and the State of Andhra Pradesh, (High Court). However the Company has filed appeals before the appropriate judicial authority and also exploring the process of settlement.

Except the above, there are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status of the Company and the Company's operations in future.

14. Previous year's figures have been regrouped and reclassified wherever necessary for comparability and to conform to current period's classification and comparison.

15. Figures have been rounded off to nearest rupee.

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Mar 31, 2014

1.1 Depreciation

Depreciation is provided on Straight Line Basis applying the rates specified in the Schedule XIV to the Companies Act, 1956. However, depreciation on the amount enhanced over the original cost due to revaluation of some of the fixed assets done during the year 1992-93 has been calculated for the year on the same basis as provided on the original cost and the amount of depreciation arising due to revaluation of fixed assets has been adjusted to revaluation reserve.

1.2 Dues from Directors : Nil

1.3 Related Party Disclosure

The following are the related parties as defined in Accounting Standard 18 notified under the Companies (Accounting Standard) Rules, 2006

Notes:

1. The discount rate is based on the prevailing market yield on Government Bonds as at the balance sheet date for the estimated terms of obligations

a) In the case of Gratuity, the expected rate of return was assumed to be 9% per annum since the fund has earned interest at this rate as per the certificate issued by Life Insurance Corporation of India Ltd (LIC)

b) In the case of Leave Encashment, the expected rate of return assumed to be 0% since there is no fund except provision.

2. Salary increase rate of 6% per annum has been assumed keeping in view of the inflation rate on long term basis.

1.4 Segment Reporting

The Company has identified three reportable segments viz. LEC Division, Appliance Division, Steel Division. Segments have been identified and reported taking into account the nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

a. Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Un-allocable".

b. Segment assets and liabilities represent net assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Un-allocable".

(ii) Secondary Segments Information : Geographical

Revenue from geographical segment is based on location of its customers and total carrying amount of assets. The total cost incurred during the year to acquire fixed assets is based on geographical locations of the assets.

1.5 Balances under Sundry Debtors, Sundry Creditors and Loans & Advances and other receivables and payables include long outstanding amounts are subject to confirmations to be received from most of the parties.

1.6 The Company has not received information / memorandum as required to be filed by the supplier with the notified authority under the MSMED Act, 2006 claiming their status as Micro or Small or Medium Enterprises. Hence, disclosure relating to amounts unpaid as at the year end together with interest paid or payable under this act has not been given.

1.7 Contingent Liabilities

Particulars 2013-14 2012-13

1. Bank Guarantees

a) Bank of Baroda: Guarantee executed in Rs.8.00 lakhs Rs.8.00 lakhs favour of Commissioner Central Excise

b) Corporate Guarantee provided by the US $ 20.00 US $ 20.00 Company to Mauritius Commercial Bank, Millions Millions Mauritius, on behalf of Hestia Holdings Ltd, Mauritius, wholly owned subsidiary to SUIL. The Company has received the legal notice u/s 433 of the Companies Act 1956 and the Company has given reply to the legal notice.

c) Corporate Guarantee provided by the US $ 23.00 US $ 23.00 Company to Standard Bank (Mauritius) Millions Millions Limited on behalf of Selene Holdings Ltd, Mauritius, step down subsidiary to SUIL. The Company has received the notice from Hon''ble High Court of Andhra Pradesh u/s 433 of the Companies Act, 1956 and the Company has filed the counter against the said notice.

d) Corporate Guarantee provided by the US $ 2.50 US $ 5.00 Company to Afrasia Bank Limited, Mauritius, Millions Millions on behalf of Selene Holdings Ltd, Mauritius, step down subsidiary to SUIL

e) Corporate Guarantee provided by the US $ 10.00 - Company to Intra Asia Trading Pte. Ltd, Millions Singapore, on behalf of Nuance Holdings Ltd, Hong Kong, wholly owned subsidiary to SUIL

f) Corporate Guarantee provided by the US $ 3.00 - Company to Intra Asia Trading Pte. Ltd, Millions Singapore, on behalf of Pac Ventures Pte. Ltd, Singapore, wholly owned subsidiary to SUIL

g) Corporate Guarantee provided by the US $ 5.72 - Company to Rhodium Resources Pte. Ltd, Millions Singapore, on behalf of Pac Ventures Pte. Ltd, Singapore, wholly owned subsidiary to SUIL

h) Corporate Guarantee provided by the US $ 2.45 - Company to Rhodium Resources Pte. Ltd, Millions Singapore, on behalf of Pac Ventures Pte. Ltd, Singapore, wholly owned subsidiary to SUIL

2. Standby Letter of Credit (SBLC)

a) Indian Overseas Bank: SBLC issued in US $ 12.20 US $ 13.50 favour of Apies Ventures Pte. Ltd Millions Millions

b) Indian Overseas Bank: SBLC issued in US $ 10.03 US $ 8.73 favour of United Industrial Group (Asia) Ltd Millions Millions

c) Oriental Bank of Commerce: SBLC issued in US $ 9.00 US $ 9.00 favour of Pan Arabian International FZE. Millions Millions However the said SBLC stands discharged in the month of May 2014.

d) Exim Bank of India: SBLC issued in favour US $ 13.00 - of Exim Bank of India, London Branch, on Millions behalf of Pac ventures Pte. Ltd, Singapore, wholly owned subsidiary to SUIL

3. Claims against the Company not acknowledged as debt

a) Sales Tax Rs. 70064.41 Rs. 59240.51 lakhs lakhs b) Customs & Central Excise Rs. 721.75 Rs. 769.50 lakhs lakhs

c) Income Tax Rs. 3585.56 Rs. 2075.75 lakhs lakhs

d) Workmen Compensation Rs.4.65 Rs.4.65 lakhs lakhs

e) Bill Discounting Facility availed from Nil Nil SICOM to a tune of Rs. 20 crores has been settled and discharged fully and the case filed by SICOM is yet to be withdrawn

1.8 Previous year''s figures have been regrouped and reclassified wherever necessary for comparability and to conform to current period''s classification and comparison.

1.9 Figures have been rounded off to nearest rupee.

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Mar 31, 2013

1.1 Depreciation

Depreciation is provided on Straight Line Basis applying the rates specified in the Schedule XIV to the Companies Act, 1956. However, depreciation on the amount enhanced over the original cost due to revaluation of some of the fixed assets done during the year 1992-93 has been calculated for the year on the same basis as provided on the original cost and the amount of depreciation arising due to revaluation of fixed assets has been adjusted to revaluation reserve.

1.2 Dues from Directors : Nil

1.3 Related Party Disclosure

The following are the related parties as defined in Accounting Standard 18 notified under the Companies (Accounting Standard) Rules, 2006

1.4 Segment Reporting

The Company has identified three reportable segments viz. LEC Division, Appliance Division, Steel Division. Segments have been identified and reported taking into account the nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Un-allocable".

b) Segment assets and liabilities represent net assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Un-allocable".

1.5 Balances under Sundry Debtors, Sundry creditors and Loans & Advances and other receivables and payables include long outstanding amounts are subject to confirmations to be received from most of the parties.

1.6 The Company has not received information / memorandum as required to be filed by the supplier with the notified authority under the MSMED Act, 2006 claiming their status as Micro or Small or Medium Enterprises. Hence, disclosure relating to amounts unpaid as at the year end together with interest paid or payable under this act has not been given.

1.7 Previous year''s figures have been regrouped wherever necessary for comparability and to conform to current period''s classification and comparison.

1.8 Figures have been rounded off to nearest rupee.

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Mar 31, 2012

1.01 Share Capital

i) During the year 2011 - 12, the Company has made the following preferential allotment of equity shares:

a) 1,50,00,000 equity shares @ Rs. 12.50 each share, having face value of Rs. 10/- each to Yalamanchali Finance & Trading Pvt. Ltd against conversion warrants

b) 1,50,00,000 equity shares @ Rs. 10 each share, having face value of Rs. 10/- each to Sunlight Engineering Trading Pvt. Ltd

ii) The Company allotted 24,36,200 of 1% Cumulative Redeemable Preference Shares (CRPS) of Rs. 100/- each on 31st March 2006 aggregating to Rs. 2436.20 lakhs, and redeemable in 12 quarterly installments co-terminus with the principal repayment. Accordingly the repayment of CRPS starts from October 2014 and will be completed by July 2017.

1.02 Long-Term Borrowings

1) Term Loans availed from IDBI Bank Ltd which carries rate of interest at 13.75% per annum and are repayable in 24 quarterly installments. The above term loans are secured by way of first charge on the entire assets of the Company, both present and future, ranking pari passu with the charges already created in favour of existing term lender and second charge on all the current assets of the company, both present and future, and further secured by the guarantees of Promoter Directors, in their personal capacities and Corporate Guarantee of M/s Sujana Metal Products Ltd.

2) Deferred Payment liabilities are vehicle loans availed from various banks and secured by vehicles.

3) During the previous year the Company has obtained unsecured term loans from SE Investments Ltd, which is repayable in 24 installments commencing from 3rd November 2010 to 3rd October 2012 and carrying interest rate @ 8.50% per annum fat, to meet the working capital requirements. However the Company has not provided the interest for the period 1st October 2011 to 31st March 2012 and few installments are overdue.

4) During the current year the Company has obtained un-secured loans from the Tejdeep Engineering Enterprises Pvt. Ltd and Tejeswini Engineering Pvt. Ltd to meet the working capital requirements.

Notes :

1) Working Capital Loans availed from banks are inter alia secured by way of pari passu first charge on the current assets and pari passu second charge on fixed assets both present and future and secured by the personal guarantees of Promoter Directors and further secured by the corporate guarantee of M/s Sujana Metal Products Ltd.

2) During the previous year the Company had obtained unsecured loans by way of Inter Corporate Deposits from Followel Engineering Ltd, which was repayable in 90 days and carried interest rate @ 16% per annum

1.03 Disclosure as per Clause 32 of Listing Agreement

b) Loans and advances in the nature of loans to associates by name and amount : Nil

c) Loans and advances in the nature of loans where there is no repayment schedule or payment beyond seven years or no interest or interest below Section 372A of the Companies Act,1956 by name and amount : Nil

d) Loans and advances in the nature of loans to firms/companies in which directors are interested by name and amount : Nil

e) Disclosure as applicable to the parent company in the account of subsidiary company - Pac Ventures Pte Ltd, Singapore – Rs. 543.37 Lakhs

1.04 Depreciation

Depreciation is provided on Straight Line Basis applying the rates specified in the Schedule XIV to the Companies Act, 1956. However, depreciation on the amount enhanced over the original cost due to revaluation of some of the fixed assets done during the year 1992-93 has been calculated for the year on the same basis as provided on the original cost and the amount of depreciation arising due to revaluation of fixed assets has been adjusted to revaluation reserve.

1.05 Dues from Directors : Nil

1.06 Retirement Benefits

1. The discount rate is based on the prevailing market yield on Government Bonds as at the balance sheet date for the estimated terms of obligations

2. a) In the case of Gratuity, the expected rate of return was assumed to be 8% per annum since the fund has earned interest at this rate as per the certificate issued by Life Insurance Corporation of India Ltd (LIC)

b) In the case of Leave Encashment, the expected rate of return assumed to be 0% since there is no fund except provision.

3. Salary increase rate of 6% per annum has been assumed keeping in view of the inflation rate on long term basis.

1.07 Segment Reporting

The Company has identified three reportable segments viz. LEC division, Appliance Division, Steel Division. Segments have been identified and reported taking into account the nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Un-allocable".

b) Segment assets and liabilities represent net assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Un-allocable".

1.08 Earnings Per Share (EPS)

1.09 Balances under Sundry Debtors, Sundry Creditors and Loans & Advances and other Receivables and Payables include long outstanding amounts are subject to confirmations to be received from most of the parties.

1.10 The Company has not received information/memorandum as required to be filed by the supplier with the notified authority under the MSMED Act 2006 claiming their status as Micro or Small or Medium Enterprises. Hence, disclosure relating to amounts unpaid as at the year end together with interest paid or payable under this act has not been given.

1.11 Contingent Liabilities

Particulars 2011-12 2009-10

1. Bank Guarantees/Counter Guarantees given

a) Bank of Baroda: Guarantee executed in favour of Commissioner Rs. 8.00 Rs. 8.00 Central Excise lakhs lakhs

b) Joint Corporate Guarantee executed Nil US $ 85 by the Company along with Sujana Millions Metal Products Ltd. (SMPL), Sujana Towers Ltd. (STL) in favour of Sujana Holding Limited, Dubai and Alpha Ventures Ltd. wholly owned subsidiaries SUIL and SMPL respectively.

c) Corporate Guarantee executed by US $ 20 US $ 10 the Company in favour of Hestia Millions Millions Holdings Ltd, Mauritius, wholly owned subsidiary to SUIL.

d) Corporate Guarantee executed by US $ 28 US $ 15 the Company in favour of Selene Millions Millions Holdings Ltd, Mauritius, wholly owned subsidiary to Nuance Holdings Ltd.

2. Claims against the Company not acknowledged as debt

a) Sales Tax Rs. 5,964.16 Rs. 8,284.21 lakhs lakhs

b) Excise Rs. 839.02 Rs. 839.02 lakhs lakhs c) Income Tax Rs. 756.29 Nil lakhs

d) Workmen Compensation Rs. 1.77 Rs. 1.77 lakhs lakhs

1.12 Comparatives

The Accounts have been prepared for 12 months i.e. April 01, 2011 to March 31, 2012 and not strictly comparable with previous year's numbers 18 months i.e. for the period October 01, 2009 to March 31, 2011

1.13 Previous year's figures have been regrouped wherever necessary to conform to current period's classification.

1.14 Figures have been rounded off to nearest rupee.

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Mar 31, 2011

1) Share Capital

a) During the period under review, the Company made a preferential allotment of 1,50,00,000 equity shares @ Rs.12.50/- each share, having face value of Rs. 10/- each, to M/s Yalamanchili Finance & Trading Pvt. Ltd. Out of which 85,00,000 equity shares were allotted against conversion of warrants (out of 2,35,00,000 warrants).

b) The Company has allotted 24,36,200 of 1% Cumulative Redeemable Preference Shares (CRPS) of Rs.100/ each on 31st March 2006 aggregating to Rs.24.46Cr., and redeemable in 12 quarterly installments co-terminus with the principal repayment. Accordingly the repayment of CRPS starts from October 2014 and will be completed by July 2017.

2) Secured and Unsecured Loans

i) Secured Loans :

a) Term Loans availed from IDBI Bank Ltd is secured by way of first charge on the entire assets of the Company, both present and future, raking pari passu with the charges already created in favour of existing term lender and second charges on all the current assets of the company, both present and future, and further secured by the guarantees of Sri Y S Chowdary, Chairman, Sri G Srinivasa Raju, Managing Director, in their personal capacities and Corporate Guarantee of M/s Sujana Metal Products Ltd.

b) Working Capital Loans availed from Banks are inter alia secured by way of pari passu first charge on the current assets and pari passu second charge on fixed assets both present and future and secured by the personal guarantees of Sri Y S Chowdary, Chairman, and Sri G Srinivasa Raju, Managing Director. Further secured by the corporate guarantee of M/s Sujana Metal Products Ltd.

ii) Unsecured Loans :

a) The Company has obtained the unsecured loans during the period from:

(i) SE Investments Ltd which is repayable in 24 installments and carrying interest rate @ 8.50% per annum fat,

(ii) Followell Engineering Ltd which is repayable in 90days with an interest rate @ 16% per annum, to meet the working capital requirements.

b) Loans from Directors are Nil

3) Investments

i) Current and Unquoted :

The investments in wholly owned subsidiaries at Singapore, Dubai, Hong Kong, Cayman Islands and Mauritius are at cost of acquisition as on the reporting date of Financial Statements.

During the period the Company disposed the investments in Futuretech Investments Ltd 13,16,000 shares @ Rs.125/- each sold. As a result, the Company incurred a loss of Rs. 80,000.

ii) Long-term and Unquoted : Nil

4) Disclosure as per Clause 32 of Listing Agreement

b) Loans and advances in the nature of loans to associates by name and amount : Nil

c) Loans and advances in the nature of loans where there is no repayment schedule or payment beyond seven years or no interest or interest below Section 372A of the Companies Act,1956 by name and amount : Nil

d) Loans and advances in the nature of loans to firms/companies in which directors are interested by name and amount : Nil

e) Disclosure as applicable to the parent company in the account of subsidiary company - Pac Ventures Pte Ltd, Singapore – Rs. 543.37 Lakhs

5) Depreciation

Depreciation is provided on Straight Line Basis applying the rates specified in the Schedule XIV to the Companies Act, 1956. However, depreciation on the amount enhanced over the original cost due to revaluation of some of the fixed assets done during the year 1992-93 has been calculated for the year on the same basis as provided on the original cost and the amount of depreciation arising due to revaluation of fixed assets has been adjusted to revaluation reserve.

6) Dues from Directors : Nil

7) Related Party Disclosure

The following are the related parties as defned in Accounting Standard 18 notified under the Companies (Accounting Standard) Rules, 2006

Key Management Personnel :

List of Companies in which Key Managerial Person exercising significant influence

Sl. Name of the Key Managerial Person No Name of the Company Sri Y S Sri G Srinivasa Sri S Hanumantha Chowdary Raju Rao

1 Esteem Hotels Ltd Yes Yes

2 Foster Infn and Trading Private Ltd Yes Yes

3 Hestia Holdings Ltd - Mauritius Yes

4 Kakatiya Enclaves Private Ltd Yes

5 Pac Ventures Pte Ltd - Singapore Yes

6 STL Africa Ltd Yes

7 Sujana Energy Ltd Yes Yes

8 Sujana Finance and Trading Private Ltd Yes Yes

9 Sujana Holdings Ltd Yes Yes

10 Sujana Holdings Ltd - Dubai Yes

11 Sujana Metal Products Ltd Yes Yes Yes

12 Sujana Ports Ltd Yes Yes

13 Sujana Power (Gangikondan) Ltd. Yes Yes

14 Sujana Power (India) Ltd. Yes Yes Yes

15 Sujana Power (Tuticorin) Yes Yes Ltd.

16 Sujana Projects Ltd Yes Yes

17 Sujana Projects Ltd ( Livewire) Yes

18 Sujana Towers Ltd Yes Yes Yes

19 Sujana Transmission Ltd Yes Yes Yes

20 Telesuprecon Ltd Yes Yes

21 Yalamanchali Finance and Trading Private Ltd Yes Yes

8) Retirement Benefits

Gratuity and Leave Encashment

Notes:

1. The discount rate is based on the prevailing market yield on Government Bonds as at the balance sheet date for the estimated terms of obligations

2. a) In the case of Gratuity, the expected rate of return was assumed to be 8% per annum since the fund has earned interest at this rate as per the certificate issued by Life Insurance Corporation of India Ltd (LIC)

b) In the case of Leave Encashment, the expected rate of return assumed to be 0% since there is no fund except provision.

3. Salary increase rate of 6% per annum has been assumed keeping in view of the inflation rate on long term basis.

9) Segment Reporting

The Company has identified three reportable segments viz. LEC division, Appliance Division, Steel Division. Segments have been identified and reported taking into account the nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

b) Segment assets and liabilities represent gross assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

(ii) Secondary Segments Information: Geographical

Revenue from geographical segment is based on location of its customers and total carrying amount of assets. The total cost incurred during the period to acquire fixed assets is based on geographical locations of the assets.

10. Balances under Sundry Debtors, Sundry creditors and Loans & Advances and other receivable and payables include long outstanding amounts are subject to confirmations to be received from some of the parties.

11. As regards to compliance of provisions relating to the dues to the Small Scale Industries in terms of the Companies (Amendment) Act, 1999, the Company has no information, as to whether its suppliers constitute Small Scale Industrial Undertakings and consequently the amount due to such Industrial Undertakings have not been identified.

12. Contingent Liabilities

Particulars 2009-11 2008-09

1. Bank Guarantees / Counter Guarantees given

a) Bank of Baroda: Guarantee executed in favour of Commissioner Rs. 8.00 Rs. 8.00 Central Excise (Rs. Lakhs)

b) Corporate Guarantees furnished on behalf of Sujana Metal Products Nil Rs.10,996.65 Ltd. (Rs. Lakhs)

c) Joint Corporate Guarantee executed by the Company along with US $ 85 US $ 85 Sujana Metal Products Ltd. (SMPL), Sujana Towers Ltd. (STL) in Millions Millions favour of Sujana Holding Limited, Dubai and Alpha Ventures Ltd. (Note) wholly owned subsidiaries SUIL and SMPL respectively.

d) Corporate Guarantee executed by the Company in favour of Hestia US $10 Nil Holdings Ltd, Mauritius, wholly owned subsidiary to SUIL. Millions

e) Corporate Guarantee executed by the Company in favour of Selene US $15 Nil Holdings Ltd, Mauritius, wholly Millions owned subsidiary to Nuance Holdings Ltd.

2. Claims against the Company not acknowledged as debt (Rs. in Lakhs)

a) Sales Tax 8,284.21 8,284.21

b) Excise 839.02 839.02

Note: The limits sanctioned by Duetsche Bank to Alpha Ventures and Sujana Holdings Ltd had been repaid and therefore the Corporate Guarantee provided by the company stands cancelled/ discharged w.e.f. 23rd June 2011

13. Previous year's figures have been regrouped wherever necessary to conform to current period's classification

14. Figures have been rounded off to nearest rupee.

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Sep 30, 2009

01. The Long Term Loans sanctioned by IDBI of Rs 7210.00 lakh secured by the first charge on the entire assets of the Company both present and future ranking paripassu with the charges already created in favour of existing term lenders and second charge on all the current assets of the Company present and future and further secured by the guarantees of Sri.Y.S.Chowdary, Chairman, Sri.G.Srinivasa Raju in their personal capacities and Corporate Guarantee of M/s Sujana Metal Products Limited.

02. The total liability of Term Loan of Rs. 3726.33 lakh to IFCI was repaid and the securities are yet to be released by IFCI.

03. The Working Capital Loan of Rs. 131 crore (under interchangeability) from Bank of Baroda Chennai, Bank of India , Chennai and IDBI Bank Ltd, Hyderabad is secured by hypothecation of all stocks of Raw Materials, Work In Progress, Finished Goods, Stores & Spares, Book Debts, Other Current Assets and further secured by the personal guarantees of Sri. Y. S. Chowdary, Chairman of the Company, Sri. G. Srinivasa Raju, Director of the Company jointly and severally and are also secured by Corporate Guarantee of Sujana Metal Products Ltd. The said loan is further secured by the second charge on all the fixed assets of the Company.

04. Depreciation on the amount enhanced over the original cost due to revaluation of some of the fixed assets done during the year 1992-93 has been calculated for the year on the same basis as provided on the original cost. The amount of depreciation arising due to revaluation of fixed assets has been adjusted to revaluation reserve.

05. Contingent Liabilities not provided for in respect of

PARTICULARS 2008-09 2007-08

1. Estimated amount of contracts remaining to be NIL 275 lakhs executed during the year (approx) in respect of Casting Division

Bank Guarantees / Counter Guarantees given to - -

a) Bank of Baroda: Guarantee executed in 8.00 8.00 favour of Commissioner, Central Excise Lakhs Lakhs

b) Corporate Guarantees furnished on behalf of 10996.65 10996.65 Sujana Metal Products Ltd. Lakhs Lakhs

c) Joint Corporate Guarantee executed by the Company US $ 85 US $ 85 along with Sujana Metal Products Ltd. (SMPL), MILLION MILLION Sujana Towers Ltd.(STL) in favour of Sujana Holdings Limited, Dubai and Alpha Ventures Ltd. wholly owned Subsidiaries of SUIL and SMPL respectively.

d) Corporate Guarantee executed in favour of CFIST Inc. - US $ USA on behalf of wholly owned subsidiary Company 9.9626 M/s Pac Ventures Pte.Ltd., Singapore Million



d. Claims against the Company not acknowledged as debt. : NIL

06. Management perception for audit observation No.9 (b) regarding dues payable to:

i. The Income tax Department has passed consequential orders up to the assessment year 2005-06 for Rs.163.81 lakhs.

ii. The Commercial Tax department has raised a demand for Rs. 5823.39 lakhs on the Company towards sales tax arrears in excess of the actual liability against which the Company has preferred an appeal before Commissioner (Appeals), Commercial Taxes. The appeal before Sales Tax authorities was upheld and the Company is awaiting the release of deposit of Rs.252 lakhs.

iii. The Customs and Central Excise Department has raised a demand for Rs. 570.36 lakhs on the company for arrears in excess of the actual liability against which the Company has preferred an appeal before CESTAT. The Company had deposited Rs.2.50 lakhs and obtained stay.

iv. The Management is hopeful of getting the verdict in its favour.

v. The Company has received in principle order from the Development Commissioner, Viskahapatnam Special Economic Zone (VSEZ) for de-bonding the Export Oriented Unit and the liability of duties payable for de-bonding is Rs.30.58 lakhs.

The investments in fully owned subsidiaries at Singapore, Dubai, Hong Kong and Cayman Islands are at cost of acquisition as on the reporting date of Financial Statements.

The market value of investments made in subsidiary companies as on the balance sheet date is Rs. 1007.74 lakhs only. The diminution on account of Foreign Exchange fluctuations in value of the investments are not accounted for in the accounts.

07. Disclosures made in terms of Clause 32 of the Listing Agreement with Stock Exchanges.

b. Loans and advances in the nature of loans to associates by name and amount : NIL

c. Loans and advances in the nature of loans where there is no repayment schedule or payment beyond seven years or no interest or interest below section 372A of Companies Act by name and amount. -NIL-

d. Loans and advances in the nature of loans to firms/companies in which directors are interested by name and amount. -NIL-

1. Disclosures as applicable to the parent company in the accounts of subsidiary company.

2. Investments by the loanee in the shares of parent company and subsidiary company, when the company has made a loan or advance in the nature of loan. - NIL—

08. The following are the related parties as defined in Accounting Standard 18 of The Institute of Chartered Accountants of India.

09. The Share Premium Account is net of expenses of Rs. 109.27 lakhs incurred on account of the issue of GDRs issued in earlier years.

10. Balances under Sundry Debtors, Sundry creditors and Loans & Advances and other receivables and payables include long outstanding amounts are subject to confirmations to be received from some of the parties.

11. Loans and advances of the Company includes

a. Rs. 6702.03 lakhs paid to M/s Seazun Limited towards advance which carry an interest of 2 per cent per annum.

b. Rs. 260.02 lakhs paid to Vintage FTZ, Dubai towards advance which carry interest of 2 per- cent per annum and

c. Rs. 1056 lacs paid to Bennet & Colomen Limited towards future advertisement expenses

12. As regards to compliance of provisions relating to the dues to the Small Scale Industries in terms of the Companies (Amendment) Act, 1999, the Company has no information, as to whether its suppliers constitute Small Scale Industrial Undertakings and consequently the amount due to such Industrial Undertakings have not been identified.

13 Additional Information pursuant to the paras 3 and 4of the part II of Schedule VI of the Companies Act , 1956