1. SECURED LOANS
(i) Term Loan & Short term(Bridge) loan extended by State Bank of India is primarily secured by Pari-passu first charge on fixed assets of the Company and collaterally secured by second charge on the current assets of the company
(ii) SEFASU Term Loan extended by State Bank of India secured by Pari-passu first charge on fixed assets of the Company and collaterally secured by second charge on the current assets of the company
(iii) Sugar Development Fund(SDF) Loans for Cane Development & expansion is secured by a Bank Guarantee
(iv) Cash Credit facility extended by State Bank of India is secured by hypothecation of entire current assets of the company and further second charge on company's fixed assets
The above loans extended by SDF & banks carry interest rates ranging from 6.75% p.a. to 10.25% p.a. The loans extended by banks are linked to their base rate
2. UNSECURED LOANS
(i) Loan extended by Yes Bank Ltd is unsecured in nature. It carries an interest rate of 10.25% p.a
(ii) As per the Government of Karnataka Notification No: CI/06/SPI/2010 dated 09.12.2011 Purchase Tax liability has been converted to Interest free Loan for the expanded capacity of 2500 to 4000 TCD
3. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) for the Financial
Year 2015-16 - Rs,NIL Lakhs (2015: Rs,NIL Lakhs).
$ Preference dividend includes dividend distribution tax
* during the year company has not given any Corporate guarantee to the Banks.
4. a) The Ministry of Corporate Affairs, Government of India has vide its Notification No GSR 225(E) dated March 31, 2009 has announced Companies Accounting Standards (Amendment) Rules 2009 prescribing changes to Accounting Standard 11 on 'The Effects of Changes in Foreign Exchange Rates', till 31-03-2020.
The Company has, pursuant to the adoption of such principles of Companies (Accounting Standards) Amendment Rules 2009, exercised the option of recognizing the exchange differences arising on reporting of foreign currency monetary items at rates different from those at which they were recorded earlier, in the original cost of such depreciable fixed assets in so far such exchange differences arose on foreign currency monetary items relating to the acquisition of a depreciable asset as below: Exchange differences aggregating to ' Nil arising during the year ended March 31, 2016 (2015: ' NIL Lakhs) have been adjusted to the cost of the depreciable assets.
5. operating leases
i. The Company has entered in to a non cancellable operating lease agreement with Shri Dhanalaxmi Sahakari Sakkare Karkhane Niyamit, Ramdurg for the lease of sugar factory together with the specified assets on Built, Own, operate and Transfer basis (BOOT) for a period of 25 years till 2032. Lease rentals of Rs,841.23 Lakhs (2015: Rs,816.73 Lakhs) in respect of the obligation under such lease agreement have been recognized in the Statement of Profit and Loss Account.
Future obligations of lease rentals applicable to the above lease agreement aggregate to Rs,11,017.65 Lakhs (2015: Rs,11,858.88 Lakhs) and are due:
6. As per the information available with the Management, there are no suppliers falling under the Micro,Small and Medium Enterprise registered with the Company
7. (a) The following table sets forth the status of the Gratuity Plan of the Company and the amount recognized in the Balance Sheet and Statement of Profit and Loss Account.
Based on the above allocation and the prevailing yields on these assets, the long term estimate of the expected rate of return on fund assets has been arrived at. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching government bonds.
The estimates of future increase in compensation levels, considered in the actuarial valuation, have been taken on account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
As per the best estimates of the management, contribution of Rs,6.56 lakhs is expected to be paid to the plan during the year ending March 31, 2017.
(b) Provision made during the year for other long term employee benefits based on the actuarial valuation report amounted to Rs, Nil Lakhs (2015: Rs,0.74 Lakhs).
(c) During the period, the Company has recognized the following amounts in the Statement of Profit and Loss Account, which are included in 'Contribution to Provident and Other Funds'
As per the Resolution passed by the members in General Meeting held in July'15, the Managing Director is not entitled for any remuneration.
8. SEGMENT REPORTING
The Company has identified two business segments viz. Sugar and Power. Segments have been identified and reported taking into account
the nature of the products, the differing risks and returns, the organizational structure and internal business reporting system.
(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 a reasonable basis have been disclosed as "Un-allocable"
(b) Segment Assets and Segment Liabilities represent assets and liabilities of respective segment. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on a reasonable basis have been disclosed as "Un-allocable"
(c) The Company generally accounts for inter segment sales/transfer as if the sales/transfers were to external parties at prevailing average market price on the date of transfer.
During the year under report, the Company has engaged in business only within India and not in any other country. The conditions prevailing in India being uniform, no separate geographical segment disclosure is considered necessary.
9. related party disclosures
(i) Names of the related parties and description of relationship Relationship Name of the Parties
Holding Company E.I.D. - Parry (India) Limited
Fellow Subsidiaries Coromandel International Ltd
Parry Chemicals Ltd
CFL Mauritius Limited
Coromandel Brasil Limitada-Partnership
Sabero Europe BV
Sabero Australia Pty Ltd
Sabero Organics America SA
Sabero Argentina SA
Coromandel Agronegocious de Merico SA De.CV
Parry America Inc
Parrys Investments Limited
Parrys Sugar Limited
Parry Infrastructure Company Private Limited
Parry Sugars Refinery India Pvt. Ltd
Parry Phytoremedies Private Limited
US Nutraceuticals Inc
Parry Agrochem Exports Limited
La Belle Botanics LLC (has becomes an Associates from April 2, 2015) Key Management Personnel Mr. V. Ramesh, Managing Director
Note: Managing Director of the Holding Company is also the Managing Director of the Company. As approved by Board, no Remuneration is payable by the Company
10. Previous year's figures have been regrouped/reclassified to conform to current year's classification
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