1. Secured Loan from State Bank of India of Rs. 297.00 million as detailed below is secured on a pari-passu first charges basis on Company's Fixed Assets including Land and Building, Plant and Machinery (excluding Assets under Lease and Vehicles) situated at A.Chittur , Thirumandankudi and at Vadapathimangalam with other EPBG lenders in consortium, and exclusive second charge on the Current Assets of the Company.
2. Obligations under Finance Lease is secured by the respective Asset purchased under Finance Lease. The Loan carries interest at the rate of 15% p.a. and is repayable in 60 installments from the date of disbursement.
3. Trade Deposit from the Subsidiary company carries interest at 16% p.a. and is repayable over a period of five years viz on or before May 11, 2016.
4. Secured Loans from State Bank of India of Rs. 297.00 million is also guaranteed by the Chairman and Managing Director.
5. Secured by Export Performance Bank Guarantee (EPBG) issued by the Banks who are having first charge on Finished goods, Molasses, Consumable Stores and Spares, Receivables and on the other Current Assets of the Sugar Division on pari passu basis with other Working Capital and EPBG Lenders and pari passu first charge on the Fixed Assets of the Company (excluding Assets under lease and Vehicles) situated at A.Chittur, Thirumandankudi and at Vadapathimangalam with other EPBG Lenders in the consortium and Corporate Guarantee of Terra Energy Limited and Personal Guarantee of the Chairman and Managing Director.
6. Cash Credit from State Bank of India of Rs. 100.54 million (P.Y. Rs. 102.58 million) is secured by way of hypothecation of Current Assets viz stock of Raw materials, Semi finished goods, Finished goods , Receivables and other current assets of the Distillery division and Rs. 147.88 million (P.Y. Rs. 982.19 million) is secured by way of hypthecation of Current Assets viz. Finished Goods, Molasses, Consumable Stores, Receivables and other Current Assets of Sugar Division on pari passu first charge basis with other Working Capital and EPBG Lenders.
7. Cash Credit from other Banks of Rs. 364.28 million (P.Y. Rs. 869.79 million) are secured by way of charge on the Current Assets viz stock of Raw Materials, Semi Finished and Finished Goods, Consumable Stores and Spares and charge on Book Debts and second charge on immovable assets of the Company on pari passu basis.
8. Cash Credit to the extent of Rs. 378.88 million (P.Y. Rs. 1712.72 million) are also secured by Corporate Guarantee of the Subsidiary Company, Terra Energy Ltd.
9. Cash Credit to the extent of Rs. 248.42 million (P.Y. Rs. Nil) is also Guaranteed by the Chairman and Managing Director.
10. Cash Credit is renewable every 12 months.
11.. The Company has not received any intimation from the suppliers regarding status under the Micro, Small and
Medium Enterprises Development Act, 2006 and hence disclosure regarding
(12) Amount due and outstanding to suppliers as at the end of the accounting year,
(13) Interest paid during the year,
(14) Interest payable at the end of the accounting year and
(15) Interest accrued and unpaid at the end of the accounting year, have not been provided.
16. FINANCE LEASE
17) The Company has acquired mechanical Harvestors on lease, the fair value of which aggregates to Rs. 190.39 million (PY : Rs. 190.38 million). As per Accounting Standard-19 the Company has capitalized the said Harvestors at its fair value as the lease is in the nature of finance lease as defined in the Accounting Standard-19. Lease payments are apportioned between finance charges and outstanding liabilities.
18) The minimum lease rentals as at March 31, 2016 and the present value as at March 31, 2016 of minimum Lease payments in respect of assets acquired under finance leases are as follows:
Contingent rent recognized in the Statement of Profit and Loss in respect of Finance Lease : Rs. Nil (P.Y. : Nil).
19. The Company has given Corporate Guarantees for Rs. 8317.73 million (P.Y.: Rs. 7850.90 million) to Banks / Financial Institutions for the Term Loans, Working Capital and Guarantee facilities sanctioned to its Subsidiary and Associate Companies. The total amount outstanding in respect of such loans as on March 31, 2016 is Rs. 7348.60 million ( P.Y.: Rs. 5838.80 million).
20. Considering the seasonal nature of sugar industry and improving sugar prices, the Management is of the opinion that the Company will have adequate taxable income in the near future and there exists virtual certainty for taking benefit of MAT credit. Accordingly MAT credit have been duly recognized in these Financial Statements.
21. Pending Litigations
a) The Claim Petition filed by the Company against Railways for wrongful delivery of sugar has been disposed by the Railway Claims Tribunal, Chennai Bench in favour of the Company. Railways have filed appeal before the High Court of Judicature at Madras and the same is pending disposal.
b) In addition, the Company is subject to legal proceedings and Claims which have arisen in the ordinary course of business. The Management expects that these legal proceedings and claims when disposed, will not have any material and adverse impact on the Company's financial position.
22. Disclosure as per Accounting Standard -15 (Revised) - Employee Benefits.
23. Defined Contribution Plans
Contribution of Rs. 11.68 million (P.Y. Rs. 11.97 million) to defined contribution plans is recognized as expense and included in the employees cost in the Statement of Profit and Loss.
24. RELATED PARTY DISCLOSURES
25) Names of the Related Parties
26. Subsidiary Company : Terra Energy Ltd
27. Associate Company : 1. Shree Ambika Sugars Ltd
28. Venkatesa Tyagarajan Private Ltd
29. Mustang Trading and Investments Pvt Ltd.
30. Key Managerial Personnel : R.V. Tyagarajan, Chairman and Managing Director
Note: Related party relationships are as identified by Management and relied upon by the Auditors
31. Transactions with Subsidiary and Associate Companies
Note :32. The Chairman & Managing Director has not been paid any remuneration. As per the terms of arrangement between Thiru Arooran sugars Ltd and Terra Energy Ltd., 158,597 MTs ( P.Y.: 150,321 MTs ) of Bagasse has been Supplied by Thiru Arooran Sugars Ltd., in exchange for 245,642 MTs ( P.Y.: 235,807 MTs ) of steam and 16,376,124 Units (P.Y.: 15,720,491 Units) of Power from Terra Energy Ltd.
Note 33. Figures in brackets represent outflows.
34. Previous year figures have been regrouped to conform to current year's grouping.
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