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NOTES TO ACCOUNTS

Ponni Sugars (Erode) Ltd.

You can view the entire text of Notes to accounts of the company for the latest year
Market Cap. (₹) 115.26 Cr. P/BV 0.42 Book Value (₹) 317.35
52 Week High/Low (₹) 189/102 FV/ML 10/1 P/E(X) 34.51
Bookclosure 25/07/2018 EPS (₹) 3.88 Div Yield (%) 0.75
Year End :2017-03 

(1) Note on Proposed Dividend

(a) Proposed dividend on equity shares is subject to declaration/ approval at the Annual General Meeting and is not recognised as a liability (including DDT thereon) as at 31st March 2017 pursuant to the Accounting Standard 4 revised by MCA Notification dated 30th March 2016.

(b) As a result of change in accounting policy to comply with the revised AS-4, Reserves & Surplus is higher by Rs.259 Lakhs and Short-term provisions lower by equivalent amount. This however has no impact on the profit for the year.

(2) The Company has filed Writ Petitions in the High Court of Madras in respect of the disallowance of depreciation claim on the transfer value of assets in terms of Scheme of Arrangement by treating the same as Demerger within the meaning of Income Tax Act, 1961 and obtained interim stay for consequent demand of Rs.1308 lakhs. The Company has been legally advised that probability of outflow of resources arising out of aforesaid legal issues would be remote. Accordingly, no provision or disclosure of contingent liability is required for same in terms of Accounting Standard 29.

(3) The company recognized eligible subsidies of Rs.690 lakhs due from Sugar Development Fund (SDF) as income in earlier period and treated the amount outstanding as “incentives/subsidies receivable” under the head “Other current assets”. This is based on the legal stand taken by the company and vindicated later by rulings obtained from both the Ld. Single Judge and Division Bench of the High Court of Madras in its favour.

The company during the year moved a fresh Writ Petition seeking specific direction of the Hon’ble High Court of Madras for immediate payment of pending subsidies. The High Court by its Order dated 12.01.2017 directed such payment with in three weeks. While the Central Govt settled the buffer stock subsidy, it by communication dated 14.02.2017 has repudiated the claims for export subsidies on technical and other extraneous grounds.

While the company would persist with its legal remedy for eventual realization of these claims, having regard to the continuing uncertainty and on grounds of prudence and without prejudice to its legal rights to pursue the matter, the company has recognized the disallowance of claims for incentives/ subsidies in these Financial Statements and disclosed its effect as ‘Exceptional Item’ in the Statement of Profit & Loss.

(4) South Indian Sugar Mills Association, Tamil Nadu has filed a Writ Petition in the High Court of Madras on behalf of private sector sugar mills in the State, challenging the power of State Govt to fix State Advised Price (SAP) for sugarcane. Since the Hon’ble Supreme Court has already held in 2004 that SAP is only recommendatory in Tamil Nadu and having regard to the legal opinion in the matter, the company does not foresee any adverse impact.

(5) The Company does not attract the mandatory spend on CSR for the current year pursuant to Sec. 135 (5) of the Companies Act, 2013 in the absence of average net profits made during the three immediately preceeding financial years. It however continued CSR programs earlier initiated on voluntary basis and incurred CSR expenditure during the year on following:

(6) Employee Benefits:

(i) Defined Contribution Plans:

Contribution of Rs.108 lakhs (previous year Rs.110 lakhs) to defined contribution plans is recognized as expense and included in Employee benefits expense in the Statement of profit and loss.

(ii) Defined Benefit Plans:

Disclosure for defined benefit plans based on actuarial valuation as on 31.03.2017

(38) Related Party Disclosures

a) List of Related Parties where control exists : None

b) Transaction between Related Parties:

i) Names of the transacting

Related Parties : Seshasayee Paper and Boards Ltd

Esvi International (Engineers & Exporters) Ltd

ii) Description of relationship : Presumption of significant influence

iii) Description of Transactions :

a) Seshasayee Paper and Boards Ltd

(7) Figures for the previous year have been regrouped, wherever necessary.

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