Corporate Data

SRI CHAMUNDESWARI SUGARS LIMITED

REGISTERED OFFICE BOARD OF DIRECTORS

No 88/5, Richmond Road
Shri. M. Srinivaasan B.E., MBA
Bangalore- 560 025
MANAGING DIRECTOR
CIN : L15435KA1970PLC001974

DIRECTORS
PLANT LOCATION
UNIT-I Dr. M. Manickam M.Sc., MBA
(Sugar, Distillery and Power Generation)
Shri. M. Balasubramaniam M.Com, MBA
Bharathinagara (K.M. Doddi)
Maddur Taluk, Mandya District Shri. V.K. Swaminathan B.Com
Karnataka State
Shri. A. Arjunaraj B.Sc., FCA
UNIT-II
Dr. A. Selvakumar M.E., Ph.D.
(Sugar Plant)
Srinivasapura, Channarayapatna Taluk, Dr. M.R. Desai M.B.B.S
Hassan District, Karnataka State
Smt. Susheela Balakrishnan B.A., F.C.A.,

STATUTORY AUDITORS
P.N. Raghavendra Rao & Co. CHIEF FINANCIAL OFFICER
Chartered Accountants
Coimbatore Shri. J.U. Srinivasan

INTERNAL AUDITORS
Brahmayya & Co COMPANY SECRETARY
Chartered Accountants
Shri. Vignesa Somathurai Pandian
Bangalore
(upto 7.3.2015)
Shri. M. Rajendraprasath (w.e.f. 30.3.2015)
COST AUDITOR
Shri. M.R. Krishnamurthy
Cost Accountant BANKERS & FINANCIAL INSTITUTIONS
Bangalore IDBI Bank Limited
Allahabad Bank
SECRETARIAL AUDITOR State Bank of Mysore
Shri. M. Thirupal Gorige State Bank of India
Practicing Company Secretary State Bank of Travancore
Bangalore
IDFC Limited
The Karnataka State Co-operative Apex Bank Limited
The Hassan District Co-operative Central Bank Limited
The South Canara District Central Co-Operative Bank Limited
Bajpe VSS Bank Limited

1
 CONTENTS

PARTICULARS PAGE NO

Notice to Shareholders 3

Board's Report 7

Management Discussion and Analysis Report 17

Secretarial Audit Report 18

Report on Corporate Governance 20

Independent Auditors' Report 26

Balance Sheet 28

Statement of Profit & Loss 29

Notes forming part of Financial Statements 32

Cash Flow Statement 47

Performance Report 48

2 SRI CHAMUNDESWARI SUGARS LIMITED


NOTICE TO SHAREHOLDERS
NOTICE is hereby given that the Forty Second Annual General
Meeting of the Members of the Company will be held at Hotel
Woodlands, No. 5, Raja Ram Mohan Roy Road, Bangalore-560025
on Friday, 25th September 2015 at 2.30p.m to transact the following
business:
1. To Consider and adopt the Directors' Report and the Audited
Financial Statements for the year ended 31st March 2015 and the
Auditors' Report thereon.
2. To appoint a Director in the place of Dr. M. Manickam (DIN
00102233), who retires by rotation and, being eligible, offers
himself for re-appointment.
3. To consider and if thought fit to pass with or without
modification(s) the following resolution as an Ordinary
Resolution:
"RESOLVED THAT pursuant to the provisions of Section 139 and
other applicable provisions if any of the Companies Act 2013 and
the Rules made thereunder and pursuant to the
recommendations of the Audit Committee, the re-appointment
of M/s P N Raghavendra Rao & Co Chartered Accountants (FRN:
003328S) as the Statutory Auditors of the Company for the
financial year 2015-2016 be and is hereby ratified at such
remuneration as may be determined by the Board of Directors."
Special Business:
4. To consider and if thought fit, to pass with or without
modification, the following resolution as an Ordinary
Resolution:
"RESOLVED THAT pursuant to the provisions of Sections 149, 152,
160 and any other applicable provisions of the Companies Act,
2013 and rules made thereunder read with Schedule IV to the Act,
Smt Susheela Balakrishnan (DIN:07140637), who was appointed
as an Additional Director of the Company by the Board of
Directors with effect from March 30, 2015 and who holds office up
to the date of this Annual General meeting in terms of Section 161
of the Companies Act 2013 and in respect of whom the Company
has received a notice in writing from a member proposing the
candidature of Smt Susheela Balakrishnan for the office of the
Director of the Company, be and is hereby appointed as an
Independent Non-Executive Director of the Company for a first
term of five consecutive years commencing from the date of 42nd
Annual General Meeting and she is not liable to retire by
rotation."
5. To consider and if thought fit, to pass with or without
modification, the following resolution as an Ordinary
Resolution:
"RESOLVED THAT pursuant to the provisions of Section 148 and
other applicable provisions, if any of the Companies Act, 2013
read with Companies (Audit and Auditors), Rules, 2014 and other
rules applicable and made there under, as amended from time to
time, the remuneration of ` 50,000 to Shri M R Krishnamurthy,
(M.No.F7568) Cost Accountant Bangalore for conducting Cost
Audit for the financial year ending 31st March 2016."
6. To consider and if thought fit, to pass with or without
modification, the following resolution as an Ordinary
Resolution:
"RESOLVED THAT in supersession of the Resolution passed at the
Annual General Meeting of the Company held on 13th September
42nd ANNUAL REPORT
Notice of the Annual General Meeting
2010 and pursuant to the provisions of Section 181 and other
applicable provisions, if any, of the Companies Act, 2013, the
Board of Directors of the Company be and is hereby authorized to
contribute, in any financial year, to bona fide charitable and other
funds, upto a limit of ` 50,00,000 (Rupees Fifty lakhs only) or such
amount as may be permissible under Companies Act 2013
whichever is greater."
By order of the Board
For Sri Chamundeswari Sugars Limited
Date : 07.08.2015 M. Rajendraprasath
Place : Coimbatore Company Secretary
Notes:
1. Pursuant to Provisions of Section 105 of the Companies Act, 2013
with respect to Proxy:
A member entitled to attend and vote at the Annual General
Meeting is entitled to appoint a Proxy. Proxy need not be a
member of the Company. Proxy so appointed shall not have any
right to speak at the meeting and shall not be entitled to vote
except on a poll. A person can act as a proxy on behalf of not more
than fifty members and holding in aggregate not more than ten
percent of the total Share Capital of the Company. Members
holding more than ten percent of the total Share Capital of the
Company may appoint a single person as proxy, who shall not act
as a proxy for any other Member. The duly completed and signed
instrument of Proxy, in order to be effective, should be deposited
at the Registered Office, not later than 48 hours before the
commencement of the meeting. A Proxy Form is annexed to this
Report. Proxies submitted on behalf of limited companies,
societies, etc., must be supported by an appropriate resolution /
authority, as applicable.
2. The relative Explanatory Statement as required under Section
102 of the Companies Act, 2013 in respect of Special Business are
given forming part of the Notice.
3. The Register of Members of the company will be closed from
16th September, 2015 to 25th September, 2015 (Both days
inclusive).
4. M/s.Canbank Computer Services Limited, Bangalore are the
authorized Registrars and Share Transfer Agents. Members are
requested to correspond with them directly for non-receipt of
share certificates, share transfers, transmission, change of
address, consolidation of certificate, splits of certificate,
registration of Power of Attorney, non-receipt of dividend and on
all other queries in the following address.
Canbank Computer Services Limited
Unit: Sri Chamundeswari Sugars Limited,
No.218, J.P.Royale, 1st Floor
2nd Main, Sampige Road (Near 14th Cross)
Malleswaram, Bangalore - 560003.
Ph.: 080-23469661/62/64/65
Fax: 080-23469667/68
E-mail: canbankrta@ccsl.co.in
5. Email ID: Company has provided an exclusive E-mail ID
complianceofficer@chamundisugars.com for investors to send
their requests/grievances/complaints in electronic mode.
3
 Notice of the Annual General Meeting
6. The matured deposits and proceeds of fractional shares remain
unclaimed for a period of seven years will be transferred to
Investor Education and Protection Fund, if any.
7. Nomination Facility:
Section 72 of the Companies Act, 2013 provides inter-alia the
facility of nomination for shareholders and debenture holders.
Nomination can be made by either single or joint holders.
8. A brief resume in respect of the proposed re-appointment /
appointment of Directors is attached herewith in terms of Clause
49 of the Listing Agreement.
9. Members are requested to bring their copies of the Annual
Report to the meeting.
10. Attendance slip has to be signed and delivered at the entrance of
the meeting venue.
11. Pursuant to Section 101 and Section 136 of the Companies Act,
2013 read with relevant Rules made thereunder, Companies can
serve Annual Reports and other communications through
electronic mode to those Members who have registered their
e-mail address either with the Company or with the Depository.
Members holding shares in demat form are requested to register
their e-mail address with their Depository Participant(s) only.
Members of the Company, who have registered their e-mail
address, are entitled to receive such communication in physical
form upon request. The Notice of AGM, Annual Report and
Attendance Slip are being sent in electronic mode to Members
whose e-mail IDs are registered with the Company or the
Depository Participants. Physical copy of the Notice of AGM,
Annual Report and Attendance Slip are being sent to those
Members who have not registered their e-mail IDs with the
Company or Depository Participant(s) and to those Members
who have requested for physical copies. Members who have
received the Notice of AGM, Annual Report and Attendance Slip
in electronic mode are requested to print the Attendance Slip and
submit a duly filled in Attendance Slip at the registration counter
to attend the AGM.
12. As required under the listing agreement, those shareholders who
does not have access to e-voting facility, the Company has
enabled a ballot paper facility in lieu of e-voting. A member
desiring to exercise vote by postal ballot is requested to carefully
read the instructions printed in the ballot paper form and return
the form duly completed in the attached self addressed business
reply envelope so as to reach the scrutinizer on or before 21st
September 2015.
13. Members are provided with the facility of exercising their rights in
electronic mode as required under Section 108 of the Companies
Act. The procedures for e-voting is given hereunder:
Please follow all steps from Sl.No.(II) to Sl.No.(XII) overleaf, to cast
vote.
Voting through electronic means.
I. In compliance with provisions of Section 108 of the Companies
Act, 2013, Rule 20 of the Companies (Management and
Administration) Amendment Rules, 2015 and Clause 35B of the
Listing Agreement, the Company is pleased to provide the
members facility to exercise their right to vote on resolutions
proposed to be considered at the 42nd Annual General Meeting
(AGM) by electronic means and the business may be transacted
through e-Voting Services. The facility of casting the votes by
members using an electronic voting system from a place other
than venue of the AGM) ("remote e-voting") will be provided by
National Securities Depository Limited (NSDL).
4 SRI CHAMUNDESWARI SUGARS LIMITED
II. The facility for voting through ballot paper shall be made
available at the AGM Hall and the members attending the
meeting who have not cast their vote by remote e-voting shall be
able to exercise their right at the meeting through ballot paper.
III. The members who have sent their vote by remote e-voting prior
to the AGM may also attend the AGM but shall not be entitled to
cast their vote again.
IV. The remote e-voting period commences on 22nd September,
2015 (9.00 am) and ends on 24th September,2015 (5.00 pm).
During this period members' of the Company, holding shares
either in physical form or in dematerialised form as on the cut-off
date of 18th September, 2015 may cast their vote by remote
e-voting. The remote e-voting module shall be disabled by NSDL
for voting after 24th September, 2015 (5.00pm). Once the vote
on a resolution is cast by the members, the member shall not be
allowed to change it subsequently.
V. The process and manner for remote e-voting are as under.
a. Open email and open PDF file viz; "remote e-voting-pdf" with
your Client ID or Folio No. as password. The said PDF file
contains your user ID and password/PIN for remote e-voting.
Please note that the password/PIN for remote e-voting.
Please note that the password is an initial password.
b. Launch internet browser by typing the following
URL:http://www.evoting.nsdl.com/
c. Click on shareholder - Login.
d. Put user ID and password as initial password/PIN noted in
step (a) above. Click Login.
e. Password change menu appears. Change the password/PIN
with new password of your choice with minimum 8
digits/characters or combination thereof. Note new
password. It is strongly recommended not to share your
password with any other person and take utmost care to keep
your password confidential.
f. Home page of remote e-voting opens. Check on remote
e-voting: Active Voting Cycles.
g. Select "EVEN" of "Sri Chamundeswari Sugars Limited"
h. Now you are ready for remote e-voting as Cast Vote page
opens.
i. Cast your vote by selecting appropriate option and click on
"Submit" and also "Confirm" when prompted.
j. Upon confirmation, the message "Vote cast successfully" will
be displayed.
k. Once you have voted on the resolution, you will not be
allowed to modify your vote.
l. Institutional shareholders (i.e. other than individuals, HUF,
NRI etc.) are required to send scanned copy (PDF/JPG Format)
of the relevant Board Resolution/Authority letter etc.
together with attested specimen signature of the duly
authorised signatory(ies) who are authorized to vote to the
Scrutinizer through e-mail to gthirupal@gmail.com with a
copy marked to evoting@nsdl.co.in
VI. In case of any queries you may refer the Frequently Asked
Questions (FAQs) for Members and remote e-voting used
manual for Members available at the downloads section of
www.evoting.nsdl.com or call on toll free no:1800-222-990.
VII. If you are already registered with NSDL for remote e-voting then
you can use your existing user ID and password/PIN for casting
your vote.

VIII. You can also update your mobile number and e-mail id in the user
profile details of the folio which may be used for sending further
communication(s).
IX. The voting rights of members shall be in proportion to their
shares of the paid up equity shares capital of the Company as on
the cut-off date of 18th September, 2015.
X. Any person, who acquired shares of the Company and become
member of the Company after dispatch of the notice and holding
shares as of the cut-off date i.e. 18th September, 2015, may
obtain the login ID and password by sending a request at
evoting@nsdl.co.in or ravi@ccsl.co.in.
However, if you are already registered with NSDL for remote e-
voting then you can use your existing user ID and password for
casting your vote. If you forgot your password, you can reset your
password by using "Forgot User Details/Password" option
available on www.evoting.nsdl.com or contact NSDL at the
following toll free no:1800-222-990.
XI. A member may participate in the AGM even after exercising his
right to vote through remote e-voting but shall not be allowed to
vote again at the AGM.
XII. A person, whose name is recorded in the register of members or
in the register of beneficial owner maintained by the
depositories as on the cut-off date only shall be entitled to avail
the facility of remote e-voting as well as voting at the AGM
through ballot paper.
EXPLANATORY STATEMENT UNDER SECTION 102 OF THE COMPANIES ACT, 2013
Item No. 4:
Ordinary Resolution relating to Appointment of Smt Susheela
Balakrishnan as an Independent Director of the Company.
The Board of Directors co-opted Smt Susheela Balakrishnan as an
Additional Director from 30.03.2015 pursuant to Section 161 of the
Companies Act, 2013. She holds office till conclusion of this Annual
General Meeting.
Smt Susheela Balakrishnan is a Practicing Chartered Accountant,
Partner in M/s. Susheela Balakrishnan Associates, Chartered
Accountants,. She specializes in Audit, Taxation, Finance and
Company Law Matters and has over 29 years of experience. The Board
considers that her continued association would be of immense
benefit to the Company. She fulfills the conditions specified in the
Companies Act, 2013 for appointment as an Independent Director for
a first term of five consecutive years commencing from the date of
ensuing 42nd Annual General Meeting.
A Notice in writing along with deposit of ` 1,00,000 has been received
from a member proposing Smt Susheela Balakrishnan for the Office of
Independent Director as required under section 160 of the
Companies Act, 2013. Smt Susheela Balakrishnan is not having any
beneficial interest in the company and has also submitted her consent
to act as a Director in Form DIR-2 and other declaration as required by
the Companies Act, 2013 and the related rules thereon and clause 49
of the Listing Agreement.
Except Smt Susheela Balakrishnan, being an appointee, none of the
Directors and Key Managerial Personnel of the Company and their
relatives is concerned or interested, financial or otherwise, in the
resolution except and to the extent they are member of the Company.
Item No. 5:
Ordinary Resolution relating to ratification of Remuneration Fixed to
Cost Auditor
42nd ANNUAL REPORT
Notice of the Annual General Meeting
XIII. Shri Thirupal Gorige, Practicing Company Secretary
(Membership No.F6680-CP No.6424) No.87 2nd Floor, 21st
Cross, 7th Main, N.S.Palaya, BTM 2nd Stage, Bangalore - 560076
has been appointed as Scrutinizer for providing facility to the
members of the Company to scrutinize the voting and remote e-
voting process in a fair and transparent manner.
XIV. The Chairman of the Meeting Shall at the AGM at the end of
discussion on the resolution on which voting is to be held, allow
voting with the assistance of scrutinizer by use of "Ballot Paper"
for all those members who are present at the AGM but have not
cast their votes by availing the remote e-voting facility.
XV. The Scrutinizer shall after the conclusion of voting at the general
meeting, will first count the votes cast at the meeting and
thereafter unblock the votes cast through remote e-voting in the
presence of at least two witness not in the employment of the
Company and shall make, not later than three days of the
conclusion of the AGM, a consolidated scrutinizer's report of the
total votes cast in favour or against, if any, to the Chairman of the
meeting or a person authorised by him in writing, who shall
countersign the same and declare the result of the voting
forthwith.
XVI. The Results declared along with the report of the Scrutinizer shall
be placed on the websites of the Company and NSDL after the
declaration of result by the Chairman of the meeting or a person
authorized by him within the prescribed period.
At the Board Meeting held on 30th May 2015, Shri M R Krishnamurthy
Cost Accountant has been appointed for conducting Cost Audit for the
financial year ending 31st March 2016 with remuneration of
` 50,000 as recommended by the Audit Committee.
Pursuant to Rule 14 of the Companies (Audit and Auditors) Rules,
2014, which prescribes that the remuneration payable to Cost Auditor
is to be ratified by the members at the General Meeting.
None of the Directors and Key Managerial Personnel of the Company
and their relatives are concerned or interested, financial or
otherwise, in the resolution except and to the extent they are
member of the Company.
Item No.6:
Ordinary Resolution relating to Section 181 of the Companies Act,
2013
The Company can contribute towards bonafide charitable and other
funds upto 5% of its average net profits for the three immediately
preceding years. The Members approval is sought under section 181
of the Companies Act 2013 to the Board of Directors to make
contribution to bonafide charitable and other funds upto
` 50,00,000/- or 5% of its average net profit for the immediately three
preceding years whichever is higher.
None of the Directors and Key Managerial Personnel of the Company
and their relatives are concerned or interested, financial or
otherwise, in the resolution except and to the extent they are
member of the Company.
By order of the Board
For Sri Chamundeswari Sugars Limited
M. Rajendraprasath
Date : 07.08.2015
Place : Coimbatore Company Secretary
5
 Annexure to the Notice
A Brief resume in respect of the proposed appointment /re-appointment of Directors is given below in terms of Clause 49 of the Listing
Agreement
Particulars
DIN
Date of Birth
Date of Appointment on the Board
Qualification
Experience
No of Shares held in the Company
Other Directorship:
Members/Chairmanship of
Committees in Sri Chamundeswari
Sugars Limited.
Members/Chairmanship of
Committees in other Public
Limited Companies
Relation with other Directors
Last drawn remuneration :
6 SRI CHAMUNDESWARI SUGARS LIMITED
Dr. M. MANICKAM Smt. SUSHEELA BALAKRISHNAN
00102233 07140637
24th March 1956 (59 Years) 20th June 1950 (65 Years)
27th July 1987 30th March 2015
M.Sc., MBA B.A., FCA
Rich Experience in Industrial and Business Rich experience in the field of Audit, Finance,
Management taxation and company law matters.
2669 500
1. Sakthi Auto Component Ltd.
2. ABT Limited.
3. Kovai Medical Centre & Hospital Ltd.
4. Sakthi Finance Limited.
5. Sakthi Sugars Limited.
6. Sakthi Properties (CBE) Limited.
NIL
7. The Gounder and Company Auto Limited.
8. ABT Foods Retailing (India) Ltd.
9. Nachimuthu Industrial Association
10. Anamallais Bus Transports P Ltd
11. ABT Infosystems P Ltd
12. ABT Healthcare P Ltd
NIL NIL
1. Sakthi Finance Limited - Stakeholders
Relationship Committee - Chairman.
NIL
2. Sakthi Sugars Limited - Stakeholders
Relationship Committee - Member.
Shri M. Balasubramaniam - Brother
Shri M. Srinivaasan - Brother. NIL
NIL NIL
 Board's Report

BOARD'S REPORT

Dear Members and Protection Fund account on 17th January, 2015 amounting to a
Your Directors have pleasure in presenting the 42nd Annual Report total of `. 1,79,040/-
together with the Audited Financial Accounts of the Company for the MATERIAL CHANGES AND COMMITMENTS
financial year ended 31st March, 2015.
No Material changes occurred subsequent to the close of the financial
FINANCIAL RESULT year of the Company to which the balance sheet relates and the date
of this report.
Particulars 2014-15 2013-14 There is no change in the nature of business of the company.
Profit Before Interest and EXTRACT OF ANNUAL RETURN
Depreciation 2373.07 3293.04
The Extract of Annual Return as required under section 92(3) of the
Less: Interest 3070.24 3076.05 Companies Act, 2013 and rule 12(1) of the Companies (Management
Depreciation and and Administration) Rules, 2014, in Form MGT-9 is annexed.
Amortisation 1259.91 4330.15 1819.35 4895.40
Profit / (Loss) Before Tax (1957.08) (1602.36) DIRECTORS' RESPONSIBILITY STATEMENT
Less : Income Tax Expenses The Directors' Responsibility Statement referred to in clause (c) of
Deferred Tax Liability/ sub-section (3) of Section 134 read with Section 134(5) of the
(Asset) (586.09) (519.89) Companies Act, 2013, is hereby confirmed that-
Profit / (Loss) after Tax (1370.99) (1082.47) (a) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper
Review of Operations: explanation relating to material departures, if any
Division wise performance is as under: (b) the directors had selected such accounting policies and applied
Co-generation
Cane Sugar Production (Power them consistently and made judgments and estimates that are
Recovery
Units Crushed Produced of Alcohol Generated) reasonable and prudent so as to give a true and fair view of the
Lakh MTs Lakh Qtls. (%) Lakh Ltrs. Crore Units state of affairs of the company at the end of the financial year and
Bharathinagara of the profit and loss of the company for that period;
2014 - 2015 6.52 6.05 9.39 131.24 11.25 (c) the directors had taken proper and sufficient care for the
2013 - 2014 6.18 5.74 9.21 146.83 10.49 maintenance of adequate accounting records in accordance with
Srinivasapura the provisions of this Act for safeguarding the assets of the
2014 - 2015 2.14 2.00 9.33 – – company and for preventing and detecting fraud and other
2013 - 2014 2.12 2.06 9.61 – – irregularities;
(d) the directors had prepared the annual accounts on a going
During the year under review the alcohol and power prices were concern basis;
steady. The agreement for development of part of Real Estate Assets
has been re-negotiated. The Company had incurred losses mainly due (e) the directors, had laid down internal financial controls to be
to depleted sugar prices which went down as low as ` 22.80 per KG followed by the company and that such internal financial
(During March 2015) controls are adequate and were operating effectively, and;
The Karnataka Sugarcane (Regulation of Purchase & Supply) Act, 2013 (f) the directors had devised proper systems to ensure compliance
has been amended enabling the sugar factories to start the crushing with the provisions of all applicable laws and that such systems
operations by paying applicable FRP. Accordingly your factory has were adequate and operating effectively.
started crushing operations by paying the FRP applicable to your AUDITORS and AUDITORS REPORT thereon
Company.
M/s P.N. Raghavendra Rao & Co. (Firm Regn. No. 003328S), Chartered
The Company is in the process of expansion of production capacity at Accountants, who were re-appointed as Statutory Auditors for a
sugar unit - II, located at Srinivasapura, Hassan District along with 18 period of 3 years at the Annual General Meeting held on 25th
MW Co-generation plant and upgrading the technology at unit - I, September, 2014. Their re-appointment and payment of
located at Bharathinagara, Mandya District to optimize the remuneration are to be ratified in the ensuing Annual General
performance. Meeting in accordance with the provisions of Section 139 (1) of the
DIVIDEND Companies Act, 2013.
Due to inadequacy of profits, the directors are not recommending any With regard to Auditor's remark on public deposits, we wish to state
dividend. that an application has been made under section 74 (2) of the
INFORMATION ABOUT SUBSIDIARY/ JV/ ASSOCIATE COMPANY Companies Act, 2013 to Company Law Board, Chennai Bench seeking
Company does not have any Subsidiary, Joint venture or Associate time till 31.03.2016 for the repayment of deposits and the order is
Company. awaited. The Notes on financial statements are self-explanatory.
TRANSFER OF UNCLAIMED DIVIDEND / DEPOSIT TO INVESTOR LOANS, GUARANTEES AND INVESTMENTS
EDUCATION AND PROTECTION FUND There were no loans, guarantees or investments made by the
As per the provisions of Section 205 (c) of Companies Act, 1956, the Company under Section 186 of the Companies Act, 2013 during the
unclaimed deposits have been transferred to the Investor Education year under review and hence the said provision is not applicable

7
42nd ANNUAL REPORT
 Board's Report

RELATED PARTY TRANSACTIONS

All the transactions with the related parties are in the ordinary course of business and on arm's length basis, thus disclosure in form
AOC-2 is not required.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE OUTGO:

(A) Conservation of energy:
(i) Steps taken / impact on conservation of energy /
Heat and Electrical Energy, with special reference to
the following:
● Modification of Condensate Heater for Raw Juice to recover the waste
thermal Energy from condensate water.
● Usage of IV Body vapour bleeding to raw juice.
● Usage of III Vapour for all the Molasses conditioners.
● Usage of III Vapour for B-Continuous pan boiling.
● Usage of Direct contact heater for clear juice heating to get minimum
approach of temperature.
● Periodical Energy / Thermal Audit has been carried out in SUGAR And
COGEN divisions to reduce energy requirement thereby enhancing the
power exported.
The above measures against conservation of thermal energy have helped to
reduce the steam % cane to the tune of 2.50% on cane for the season 2014 -
2015.

(ii) Steps taken by the company for utilizing alternate The Company primarily uses bagasse and green power, supplying the
sources of energy including waste generated surplus power to state grid.
(iii) Capital investment on energy conservation The company has invested about ` 20.00 Lakhs in thermal energy saving.
equipment
(B) Technology absorption:
1. Efforts, in brief, made towards technology Planting of sugarcane was initiated through single eye bud sets by procuring
absorption. "Bud cutting machine" and started production of single eye budded
sugarcane seedlings in Factory Nursery Farm and supplied to Farmers.
2. Benefits derived as a result of the above efforts, Research were made with direct planting of single eye Bud sets and saplings
e.g., product improvement, cost reduction, through the Nursery with same single bud sets. The sugarcane through
product development, import substitution, etc. Nursery produces the better result of extra tillers by 30% and the length of
the Node is also 15 cms against 10 - 11 cms of direct plantation of sugarcane
sets/chips. Almost 1,14,000 Seedlings of CO86032 were issued to farmers .
As a result Higher yield and recovery is achieved.
3. In case of imported technology (imported during
the last 3 years reckoned from the beginning of Nil
the financial year), following information may be
furnished:
a) Details of technology imported.
b) Year of import.
c) Whether the technology been fully absorbed
d) If not fully absorbed, areas where absorption
has not taken place, and the reasons therefore.
4. Expenditure incurred on Research and Nil
Development

(C) Foreign exchange earnings and Outgo

Earnings ` 29.38 lakhs
Outgo Nil

RISK MANAGEMENT
Periodic assessments to identify the risk areas are carried out and
management is briefed on the risks in advance to enable the company
to control risk through a properly defined plan. The risks are classified
as financial risks, operational risks and market risks. The risks are
taken into account while preparing the annual business plan for the
year. The Board is also periodically informed of the business risks and
the action taken to manage them. The Company has formulated a
policy for Risk management.
DIRECTORS and KEY MANAGERIAL PERSONNEL
During the current financial year the following changes have occurred
in the constitution of Directors / KMP of the company:

8 SRI CHAMUNDESWARI SUGARS LIMITED

 Board's Report

Date of b) The percentage increase in There is no increase in the actual

S. Name Designation Appointment/ Appointment/ remuneration of each director, remuneration paid to Managing
No cessation Cessation
Chief Financial Officer, Chief Director for the Financial Year
1 Dr. N Mahalingam Chairman 02.10.2014 Demise Executive Officer, Company 2014 - 2015. However, last year
2 Shri K N V Ramani Director 20.03.2015 Resignation Secretary or Manager, if any, in there was a reduction in the
the financial year: remuneration on account of the
3 Shri K Prakash Director 23.03.2015 Resignation
set off of remuneration paid by
4 Shri Vignesa Company 07.03.2015 Resignation another Company, in which he is
Somathurai Secretary a Joint Managing Director, in
Pandian (KMP) terms of Section II of Part II of
5 Shri M Rajendra Company 30.03.2015 Appointment Schedule XIII of the Companies
prasath Secretary Act, 1956.
(KMP) Other Directors/KMPs - NIL
c) The percentage increase in the
m e d i a n re m u n e ra t i o n o f Nil
Dr. N. Mahalingam, Chairman of the Company passed away on 2nd employees in the financial year:
October 2014. He was the Chairman of the Company for more than 4 d) The number of permanent
decades. His advice and guidance immensely benefitted the company employees on the rolls of 1106
in its growth and adherences to good corporate practices. His overall company:
contribution is immeasurable to the group as a whole and our e) The explanation on the
company in particular. We pledge to follow his high standards in the relationship between average NA
conduct of business and in all activities. increase in remuneration and
company performance:
RESIGNATION OF DIRECTORS
f) Comparison of the remuneration of the Key Managerial Personnel
Shri K.N.V Ramani and Shri K Prakash resigned from the board on against the performance of the company:
20.03.2015 and 23.03.2015 respectively. The board places its
%
appreciation for their outstanding contributions during their tenure Name Designation CTC increase The revenue from
of their office. in CTC o p e r a t i o n s h a d
Shri.M.Srinivaasan Managing 28.48 Nil increased from `
DEPOSITS 30236.76 lakhs to `
Director lakhs
35967.96 lakhs. The
The Company has not accepted any deposits during the year. As per Shri.J.U.Srinivasan Chief 11.36 Nil remuneration paid
section 74 of the Companies Act, 2013 the Company should have Financial lakhs to Key Managerial
repaid all the deposits even though it is not matured. As per that Officer Personnel has no
section the unpaid Fixed Deposit amount to ` 11,68,00,000/- (553 Shri.Vignesa Company 6.52 Nil direct correlation to
the performance of
depositors). An application has been made under section 74 (2) of the Somathurai Secretary lakhs
the company but
Companies Act, 2013, seeking extension of time till 31.03.2016 or as Pandian determined in the
on the date of maturity whichever is earlier for the repayment of (Resigned wef normal course of
these deposits. All the deposits matured / claimed during the year 07.03.2015) business
have been paid. The unclaimed deposits as on 31.03.2015 is
g) Variations in market capitalization of the company, price earnings
` 26,09,000/- (26 depositors)
ratio as at the closing date of the current financial year and previous
CORPORATE SOCIAL RESPONSIBILITY financial year and percentage increase over decrease in the
As there have been no profits available during the year, provisions of quotations of the shares of the company in comparison to the rate at
which the company came out with the last public offer
section 135 pertaining to corporate social responsibility are not
applicable to the Company. As per Section 135(5) of the Companies Particulars FY 2013- 14 FY 2014- 15 Variation (%)
Act, 2013 and Rule 8 of the Companies (Corporate Social Market Capitalization
Responsibility Policy) Rules, 2014 and schedule VII of the Companies (` crores) ` 60.27 ` 42.67 (29.20%)
Act, 2013, the company has duly constituted CSR Committee. The Price Earnings Ratio N.A N.A -
committee would decide the activities to be undertaken by the
company and the expenditures to be incurred on the same and h) Average percentage increase Average increase in salaries is
recommended the same to the board therefore the board approved already made in the salaries of 0.73% for Employees other than
the CSR policy. employees other than the Managerial Personnel .
managerial personnel in the last
PARTICULARS PURSUANT TO SECTION 197(12) AND THE RELEVANT financial year and its
RULES comparison with the percentage
increase in the managerial
a) The ratio of the remuneration Shri. M. Srinivaasan, remuneration and justification
of each director to the median Managing Director - 1:14 thereof and any exceptional
remuneration of employees for circumstances for increase in the
the financial year : managerial remuneration:

9
42nd ANNUAL REPORT
 Board's Report
i) Comparison of the each Refer point (f) above
re m u n e rat i o n o f t h e key
managerial personnel against
the performance of the company
j)The key parameters for any Except for the Managing
v a r i a b l e c o m p o n e n t o f Director and Executive Director
remuneration availed by the (only for April, May & June 14)
directors: (only to Executive Director) no
directors have been paid any
remuneration, as only Sitting
Fees are paid to them. Variable
component is paid, as per the
Compensation Policy of the
Company
k)The ratio of the remuneration
No employee is remunerated
of the highest paid director to
more than the directors
that of the employees who are
not directors but receive
remuneration in excess of the
highest paid director during the
year
l) Affirmation that the It is affirmed that the
remuneration is as per the remuneration is as per the
remuneration policy of the remuneration policy of the
company company
ANNUAL EVALUATION
Pursuant to the provisions of the Companies Act, 2013, the Board has
carried out an annual performance evaluation of its own
performance, the directors individually as well as the evaluation of
the working of its Audit, Nomination & Remuneration and
Compliance Committees.
A structured questionnaire was prepared after taking into
consideration inputs received from the Directors, covering various
aspects of the Board's functioning such as adequacy of the
composition of the Board and its Committees, Board culture,
execution and performance of specific duties, obligations and
governance.
A separate exercise was carried out to evaluate the performance of
individual Directors, who were evaluated on parameters such as level
of engagement and contribution, independence of judgment,
safeguarding the interest of the Company etc. The performance
evaluation of the Independent Directors was carried out by the entire
Board. The performance evaluation of the Non Independent Directors
was carried out by the Independent Directors.
CORPORATE GOVERNANCE
Report on Corporate Governance along with the Certificate of the
Auditors confirming compliance of conditions of Corporate
Governance as stipulated in the Listing Agreement with the Stock
Exchanges forms part of the Board Report.
INDEPENDENT DIRECTORS and DECLARATION
Dr. M R Desai has been appointed as the independent director of the
company as per Section 149(10) of the Companies Act, 2013 on25th
September, 2014 for a term of 5 consecutive years on the Board of the
Company.
Dr. A Selvakumar has been appointed as the independent director of
the company as per Section 149(10) of the Companies Act, 2013 on
25th September, 2014 for a term of 5 consecutive years on the Board
of the Company.
10
Shri A Arjunraj has been appointed as the independent director of the
company as per Section 149(10) of the Companies Act, 2013 on 25th
September, 2014 for a term of 5 consecutive years on the Board of the
Company.
Smt Susheela Balakrishnan has been appointed as an additional
director of the company on 30th March 2015 subject to the approval
of the members at the ensuing AGM. If the resolution for her
appointment gets passed in the ensuing AGM, she will be an
Independent director as per section 149(10)of the Companies Act,
2013 for a period of five consecutive years.
The Board of Directors of the Company hereby confirms that all the
Independent directors duly appointed by the Company have given the
declaration and they meet the criteria of independence as provided
under section 149(6) of the Companies Act, 2013.
SECRETARIAL AUDIT REPORT
The Secretarial Audit Report as provided by Shri. M Thirupal Gorige,
Practicing Company Secretary for the financial year ended, 31st
March, 2015 is annexed herewith.
With regard to Secretarial Auditor's remark on public deposits, we
wish to state that an application has been made under section 74(2) of
the Companies Act, 2013 to Company Law Board, Chennai Bench
seeking time till 31.03.2016 for the repayment of deposits and the
order is awaited. In respect of dividend for Cumulative Non
convertible preference share, the company did not declare any
dividend, as the company incurred loss during the said year.
COST AUDIT
Shri M.R Krishnamurthy (Membership No.7568), Cost Accountant,
was appointed as the Cost Auditor of the Company and their Audit
report on the Cost Accounts of the Company for the period ended
March 31, 2015, will be submitted to the Central Government in due
course.
In terms of the Companies (Cost Accounting Records and
Compliance)Rules, 2011, Cost Audit Report for the year ended 31st
March, 2014 was filed on 27.09.2014 and the due date for the same
being 27.09.2014.
VIGIL MECHANISM/ WHISTLE BLOWER POLICY
As per Section 177(9) and (10) of the Companies Act, 2013, and as per
the Clause 49 of the Listing Agreement, the company has established
Vigil Mechanism for directors and employees to report genuine
concerns and made provisions for direct access to the Chairperson of
the Audit Committee. Company has formulated the present policy for
establishing the Vigil Mechanism/ Whistle Blower Policy to safeguard
the interest of its stakeholders, Directors and employees, to freely
communicate and address to the Company their genuine concerns in
relation to any illegal or unethical practice being carried out in the
Company.
SHARES
a. BUY BACK OF SECURITIES
The Company has not bought back any of its securities during the
year under review.
b. SWEAT EQUITY
The Company has not issued any Sweat Equity Shares during the
year under review.
c. BONUS SHARES
No Bonus Shares were issued during the year under review.
d. EMPLOYEES STOCK OPTION PLAN
The Company has not provided any Stock Option Scheme to the
employees.
SRI CHAMUNDESWARI SUGARS LIMITED
 Board's Report

ORDERS PASSED BY REGULATORS/COURTS/TRIBUNALS.
During the year the Company has not received any significant and
material order from regulators/courts/tribunals impacting the status
of going concern and future operations of the company.
DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS
The Company is having an adequate Internal Financial Controls ("IFC")
within the meaning of the explanation to Section 134 (5) (e) IFC of the
Companies Act, 2013. For the year ended 31st March, 2015, the Board
is of the opinion that the Company has sound IFC commensurate with
the nature and size of its business operations; wherein controls are in
place and operating effectively and no material weaknesses exist. The
Company has also a process in place to continuously monitor the
existing controls and identify gaps, if any, and implement new and /or
improved controls wherever the effect of such gaps would have a
material effect on the Company's operation.

SHARES IN UNCLAIMED SUSPENSE ACCOUNT

Particulars No of Shareholders No of Shares

Aggregate number of shareholders and the outstanding shares lying in the
Unclaimed Suspense Account at the beginning of the year 2,689 2,22,197
Number of shareholders who approached the issuer for transfer of
shares from the Unclaimed Suspense Account during the year Nil Nil
Number of shareholders to whom shares were transferred from the
Unclaimed Suspense Account during the year Nil Nil
Aggregate number of shareholders and the outstanding shares lying in
the Unclaimed Suspense Account at the end of the year 2,689 2,22,197

HUMAN RESOURCES AND INDUSTRIAL RELATIONS ACKNOWLEDGEMENT

During the year under review the human relations continued to be Your Directors wish to express their grateful appreciation to the
very cordial. The Company wishes to acknowledge the contribution of continued co-operation received from the Banks, Government
the employees at all levels of the organisation. Authorities, Customers, Vendors and Shareholders during the year
The Company has placed an Anti Sexual Harassment Policy in line with under review. Your Directors also wish to place on record their deep
the requirements of The Sexual Harassment of Women at the sense of appreciation for the committed service of the Executives,
Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal staff and Workers of the Company.
Complaints Committee (ICC) has been set up to redress complaints for For and on behalf of the Board of Directors
sexual harassment. All employees (permanent, contractual,
temporary, trainees) are covered under this policy. The Company has Date : 07.08.2015 M. Srinivaasan V.K. Swaminathan
not received any complaints received for disposal off during the year. Place : Coimbatore Managing Director Director

11
42nd ANNUAL REPORT
 Form No. MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on 31st March 2015
[Pursuant to section 92 (3) of the Companies Act, 2013 and rule 12 (1) of the Companies
(Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS:

CIN:- L15435KA1970PLC001974
Registration Date 14.12.1970
Name of the Company Sri Chamundeswari Sugars Limited
Category / Sub-Category of the Company Public Limited Company
Address of the Registered office and contact details 88/5, Richmond Road, Bangalore - 560025. Ph No. 080 2500 2500
Whether listed company Yes (In Dissemination Board of NSE)

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10% or more of the total turnover of the company shall be stated:-
Name and Description of
Sl. No. NIC Code of the Product/service % to total turn over of the company
main products/ services
1 Sugar 10721 68.88
2 Industrial Alcohol 1101 14.36
3 Power 3510 12.40

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES -

The company does not have any holding, subsidiary or associate companies.

IV. SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i) Category-wise Share Holding
No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
Category of Shareholders during
Physical % of Physical % of
Demat Total Demat Total
Total Shares Total Shares the year
A. Promoters
(1) Indian
a) Individual/ HUF 29,228 – 29,228 0.12 29,228 – 29,228 0.12 –
b) Central Government – – – – – – – – –
c) State Government – – – – – – – – –
d) Bodies Corporate 18,244,551 – 18,244,551 74.61 18,244,551 – 18,244,551 74.61 –
e) Banks / FI – – – – – – – – –
f) Any Other – – – – – – – – –
Sub-total (A) (1) 18,273,779 – 18,273,779 74.73 18,273,779 – 18,273,779 74.73 –
(2) Foreign
a) NRIs - Individuals
b) Other – Individuals
c) Bodies Corp. – – – – – – – – –
d) Banks / FI – – – – – – – – –
e) Any Other – – – – – – – – –
Sub-total – – – – – – – – –
(A) (2):- – – – – – – – – –
Total shareholding
of Promoter (A) =
(A)(1)+(A)(2) 18,273,779 – 18,273,779 74.73 18,273,779 – 18,273,779 74.73 –

12 SRI CHAMUNDESWARI SUGARS LIMITED

 Board's Report

No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
Category of Shareholders during
Physical % of Physical % of
Demat Total Demat Total the year
Total Shares Total Shares
B. Public Shareholding
Institutions
a) Mutual Funds 200 – 200 0.0008 200 – 200 0.0008 –
b) Banks / FI – 150 150 0.0006 – 150 150 0.0006 –
c) Central Governments – – – – – – – – –
d) State Governments – – – – – – – – –
e) Venture Capital Funds – – – – – – – – –
f) Insurance Companies 133,332 – 133,332 0.55 133,332 – 133,332 0.55 –
g) FIIs – – – – – – – – –
h) Foreign Venture Capital – – – – – – – – –
i) Qualified Foreign Investor – – – – – – – – –
j) Others – – – – – – – – –
Sub-total (B) (1) 133,532 150 133,682 0.55 133,532 150 133,682 0.55 –
2. Non- Institutions
a) Bodies Corporate – – – – – – – – –
i) Indian 4,091,433 143,904 4,235,337 17.32 4,089,433 143,847 4,233,280 17.31 0.01
ii) Overseas – – – – – – – – –
b) Individuals
i) Individual shareholders
holding nominal share
capital upto ` 1 lakh 251,004 1,044,583 1,295,587 5.30 269,371 931,992 1,201,363 4.91 0.39
ii) Individual shareholders
holding nominal share
capital in excess of ` 1 lakh 366,683 128,863 495,546 2.03 588,880 – 588,880 2.41 (0.38)
c) Others
i) Directors & their relatives 2,683 5,597 8,280 0.03 2,693 5,587 8,280 0.03 –
ii) NRIs 2,132 1,632 3,764 0.02 2,932 1,266 4,198 0.02 –
iii) HUF 8,353 – 8,353 0.03 10,866 – 10,866 0.04 (0.01)
Sub-total - (B) (2) 4,722,288 1,324,579 6,046,867 24.73 4,964,175 1,082,692 6,046,867 24.73 –
Total Public
Shareholding (B)=
(B)(1)+(B)(2) 4,855,820 1,324,729 6,180,549 25.27 5,097,707 1,082,842 6,180,549 25.27 –
C. Shares held by
Custodian for GDRs & ADRs – – – – – – – – –
Grand Total (A+B+C) 24,454,328 – 24,454,328 – –

(ii) Shareholding of Promoters

Shareholding at the beginning of the year Share holding at the end of the year % change in
Sl % of total %of Shares % of total %of Shares share
Shareholders Name Shares of Pledged / Shares of Pledged / holding
No. No. of Shares the encumbered No. of Shares the encumbered during the
company to total shares company to total shares year
1 Shri. M. Manickam 2,669 0.011 – 2,669 0.011 – –
2 Shri. M. Balasubramaniam 2,666 0.011 – 2,666 0.011 – –
3 Shri. M. Srinivaasan 21,200 0.087 0.018 21,200 0.087 0.018 –
4 M/s. Chamundeswari
Enterprises P Ltd 4,469,066 18.275 – 4,469,066 18.275 – –
5 M/s. Sakthi Finance Limited 186,666 0.763 – 186,666 0.763 – –
6 Dr. N. Mahalingam 2,693 0.011 0.002 2,693 0.011 0.002 –
7 M/s. ABT Limited 1,170,208 4.785 1.794 1,170,208 4.785 1.794 –
8 M/s. ABT Industries Limited 7,466,666 30.533 – 7,466,666 30.533 – –
9 M/s. Sakthi Sugars Limited 681,146 2.785 – 681,146 2.785 – –
10 M/s. Sakthi Beverages Limited 4,266,666 17.447 6.543 4,266,666 17.447 6.543 –
11 M/s. ABT Finance Limited 4,133 0.017 – 4,133 0.017 – –
18,273,779 74.73 8.36 18,273,779 74.73 8.36 –

13
42nd ANNUAL REPORT
 Board's Report
(iii) Change in Promoters’ Shareholding (please specify, if there is no change)

Shareholding at the beginning of the year Cumulative Shareholding during the year
Sl
Particulars % of total Shares of % of total Shares of
No. No. of Shares No. of Shares
the company the company
1 At the beginning of the year 18,273,779 74.73 18,273,779 74.73
2 Date wise Increase / Decrease in Promoters
Share holding during the year specifying the
reasons for increase / decrease (e.g. allotment /
transfer / bonus/ sweat equity etc): – – – –
3 At the end of the year 18,273,779 74.73 18,273,779 74.73

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

Shareholding at the beginning of the year Cumulative Shareholding during the year
Sl
Particulars % of total Shares of % of total Shares of
No. No. of Shares No. of Shares
the company the company
1 At the beginning of the year 4,561,902 18.65 4,561,902 18.65
2 Date wise Increase / Decrease in Promoters
Share holding during the year specifying the
reasons for increase / decrease (e.g. allotment /
transfer / bonus/ sweat equity etc): – – – –
3 At the end of the year 4,561,902 18.65 4,561,902 18.65

(v) Shareholding of Directors and Key Managerial Personnel:

Shareholding at the beginning of the year Cumulative Shareholding during the year
Sl
Particulars % of total Shares of % of total Shares of
No. No. of Shares No. of Shares
the company the company
1 At the beginning of the year 34,815 0.14 34,815 0.14
2 Date wise Increase / Decrease in Promoters
Share holding during the year specifying the
reasons for increase / decrease (e.g. allotment /
transfer / bonus/ sweat equity etc): – – – –
3 At the end of the year 34,815 0.14 34,815 0.14

V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding / accrued but not due for payment
Secured Loans Un Secured
Particulars Deposits Total Indebtedness
Excluding Deposits Loans
Indebtedness at the beginning of the financial year
i) Principal 2,099,650,736.00 48,772,854.00 187,170,521.00 2,335,594,111.00
ii) Interest due but not paid 57,061,397.00 – – 57,061,397.00
iii) Interest accrued but not due 2,413,095.00 – 3,346,531.00 5,759,626.00
Total (i+ii+iii) 2,159,125,228.00 48,772,854.00 190,517,052.00 2,398,415,134.00
Change in Indebtedness during the financial year
Addition 1,123,815,864.00 1,352,000.00 – 1,125,167,864.00
Reduction 966,283,646.00 – 67,761,521.00 1,034,045,167.00
Net Change 157,532,218.00 1,352,000.00 (67,761,521.00) 91,122,697.00
Indebtedness at the end of the financial year
i) Principal 2,257,182,954.00 50,124,854.00 119,409,000.00 2,426,716,808.00
ii) Interest due but not paid 74,702,081.00 – – 74,702,081.00
iii) Interest accrued but not due 2,078,502.00 – 9,565,558.00 11,644,060.00
Total (i+ii+iii) 2,333,963,537.00 50,124,854.00 128,974,558.00 2,513,062,949.00

14 SRI CHAMUNDESWARI SUGARS LIMITED

 Board's Report

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

Shri. M. Srinivaasan Shri. K. Prakash

Sl. No. Particulars of Remuneration
Managing Director Executive Director*
1 Gross salary
(a) Salary as per provisions contained in
section 17(1) of the Income-tax Act, 1961 1,800,000 200,892#
(b) Value of perquisites u/s 17(2)
Income-tax Act, 1961 1,048,340 24,108
(c) Profits in lieu of salary under
section 17(3) Income-tax Act, 1961 – –
2 Stock Option – –
3 Sweat Equity – –
4 Commission – –
- as % of profit – –
- others, specify… – –
5 Others, please specify – –
Total (A) = (1+2+3+4+5) 2,848,340 225,000
Ceiling as per the Act 2,961,000 740,250
* Resigned on 23.03.2015
# Remuneration paid from April 2014 to June 2014
B. Remuneration to other directors:

Sl. No. Particulars of Remuneration Name of Directors Total Amount

1 Independent Directors
a Fee for attending board committee meetings Shri.K.N.V.Ramani 30,000
Dr.A.Selvakumar 116,000
Shri.A.Arjunaraj 96,000
Shri.M.Desai 5,000
Smt. Susheela Balakrishnan 10,000
b Commission –
c Others, please specify –
Total (a+b+c) 257,000
2 Other Non-Executive Directors
a Fee for attending board committee meetings Dr.N.Mahalingam 5,000
Dr.M.Manickam 40,000
Shri.M.Balasubramaniam 71,000
Shri.V.K.Swaminathan 102,000
b Commission –
c Others, please specify –
Total (a+b+c) 218,000
Total (B) = (1+2) 475,000
Total Managerial Remuneration (A+B) 3,548,340
Overall Ceiling as per the Act 4,176,250

15
42nd ANNUAL REPORT
 Board's Report
C. Remuneration to Key Managerial Personnel Other than MD / Manager / WTD
Key Managerial Personnel
Sl. No. Particulars of Remuneration Shri. J.U. Srinivasan Shri. Vignesa Somathurai Pandian
Chief Financial Officer Company Secretary*
1 Gross salary
(a) Salary as per provisions contained in
section 17(1) of the Income-tax Act, 1961 1,025,327 577,869
(b) Value of perquisites u/s 17(2)
Income-tax Act, 1961 – –
(c) Profits in lieu of salary under
section 17(3) Income-tax Act, 1961 – –
2 Stock Option – –
3 Sweat Equity – –
4 Commission – –
- as % of profit – –
- others, specify… – –
5 Others, (Bonus & Medical) 111,508 74,442
Total 1,136,835 652,311
Ceiling as per the Act NA NA
*Resigned on 07.03.2015

VII. PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES:

Nil

16 SRI CHAMUNDESWARI SUGARS LIMITED

MANAGEMENT DISCUSSION AND ANALYSIS REPORT
1) Company Overview
The Company has a total sugarcane crushing capacity of 5250
TCD consisting of 4000 TCD at Bharathinagara Unit, Mandya
district and 1250 TCD at the leased factory located in
Srinivasapura Unit, Hassan District. The Company has also set up
a 26 MW Co-generation Power Plant and 50 KLPD Distillery at
Bharathinagara unit. The company is in the process of expansion
of Sugarcane Crushing capacity of 1250 TCD to 3500 TCD and
establishment of Co-generation Power Plant of 18MW at the
leased factory unit located at Srinivasapura, Hassan District.
2) Industry Structure and Development:
India is the second largest sugar producer in the world. At present
the global sugar production is in excess of consumption and
consequent to which the sugar prices have come down by 50%.
The lower sugar prices is the main reason for delayed cane
payments. The Government of India has taken initiative for
providing soft loan for reducing the cane arrears to some extent.
The following redressal measures are urgently required for
setting right the Sugar Industry's predicaments:-
● Implementation of a revenue sharing formula for sugarcane
price wherein factory's obligation for paying sugarcane price
would be limited to sharing of 70% on Sugar, Molasses,
Bagasse and Pressmud or 75% on Sugar Revenue alone and
should be payable in two installments.
● Creation of Sugar Stabilization Fund by Government of India
in order to fund export subsidy, creation of strategic stock,
interest subvention to sugar factories, direct subsidy to
farmers etc.
● Exports of 30 lakhs MT of refined, white or raw sugar with a
subsidy of ` 5000 per MT This Scheme should be made
effective immediately for a period of one year.
● Re-introduction of a modified Sugar Export Promotion Act
effective from Sugar Year 2015-16 which will cast an
obligation on each sugar mill to export a specified percentage
of production either directly or through another factory
situated closer to the port. The nominated Sugar Factory
should be compensated for the losses suffered, if any by the
factory nominating the export.
● Promotion of ethanol blending in petrol and diesel should be
taken up in a rapid manner. A flexible ethanol blending
program with petrol ranging from 5% to 25% should be
followed. Higher blending ratios can be adopted in the years
of excess sugarcane production in order to avoid excess sugar
production. Introduction of flexi fuel vehicles will also help in
using higher ethanol blends.
3) Opportunities & Threats:
Opportunities
Export of Sugar would be possible if Government of India extends
the subsidy for the same. The Government of India has strongly
committed to ethanol blending programme. The Company is in
the process of setting up the ethanol unit and the distillery unit
will run at full capacity by converting excess sugar in to alcohol.
Threats
The mismatch between the sugarcane price and excess sugar
production can result in adverse financial results. There would be
reduction in the cane area, consequent to cane arrears. Those
areas would be taken for other competitive crops.
4) Risks and Concerns :
The Sugar Industry is going through a critical stage. We hope that
the expected reform measures to be announced by the
Government of India would restore, stability and viability of the
Industry.
The monsoon not been very favorable so far and the crop
availability will depend upon the monsoon in the remaining
period.
42nd ANNUAL REPORT
5) Product and Segment-wise performance
Product wise performance:
31.03.2015 31.03.2014
Products Turnover % on Turnover % on
(` in Lakhs) Turnover (` in Lakhs) Turnover
Sugar 25,256.48 68.88 21,491.40 69.81
Industrial Alcohol 5,265.93 14.36 5,657.23 18.38
Power 4,545.67 12.40 3,634.45 11.81
Segment wise results are given in the notes forming part of financial statements.
6) Outlook:
Due to the continuous excess sugar production in the last few
years and the lack of export opportunities consequent to Global
glut in sugar, the Indian market had an opening stock of 75 lakh
Metric Tons as on 01/10/2014. The closing stock for the current
year i.e. Sugar year 14-15 is estimated to be above 100 lakh
Metric Tons with the production of about 280 lakh Metric Tons.
The normal carry over stock should be equal to around 3 months
supply and we are having about 40 lakh Metric Tons in excess.
The Sugar Industry associations namely SISMA, MAIN and ISMA
have made repeated representation to Government of India for
urgent redressal of the grave situation the Sugar Industry finds
itself in.
7) Internal Control systems and their adequacy
The Company has well-established, robust internal control
systems and processes, commensurate with its nature of
business and the size of operations, to ensure smooth
functioning. This safeguards assets against unauthorized use, as
well as correct recording and reporting of transactions. Such
controls, subject to periodical review and monitoring by audit
committee and also ensure efficiency of operations, accuracy
and promptness of financial reporting, besides complying with
applicable laws and regulations.
The Company has an internal audit system to ensure that all
activities are monitored and controlled. Adequate internal
checks are built in to cover all monetary transactions. These
checks and controls are reviewed periodically for improvement.
8) Financial Performance with respect to Operational
Performance
This year has ended with a gross profit of `2373.07 Lakhs
before providing for interest and depreciation. After providing
`3070.24 Lakhs for interest and `1259.71 Lakhs for depreciation,
the Loss before tax for the year is `1957.08 Lakhs (Previous
year -loss `1602.36 Lakhs)
9) Human Resources / Industrial Relations
The Company recognizes its employees to be the primary source
of its inherent strength. The Company is committed to equal
employment opportunities to attract the best available talent
and to ensure a competitive work force. It pursues management
practices designed to enrich the quality of life to its employees,
develop their potential and maximize their productivity. The
Company's total employee strength, was 1106 as on 31st March
2015
The relationship between the management and employees is
cordial.
During the year under review, no case was filed under Sexual
Harassment of women at workplace (Prevention, Prohibition
and Redressal) Act, 2013.
The company has created an excellent relationship with the
farmers as well as other stakeholders including bankers.
10) Cautionary Statement
Statements made in this report describing industry outlook as
well as the Company's plans, policies and expectations may
constitute "forward-looking statements" within the meaning of
applicable laws and regulations. Actual results may differ
materially from those either expressed or implied.
17
 SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2015
[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014]
To
The Members
Sri Chamundeswari Sugars Limited
Registered Office:
88/5, Richmond Road,
Bangalore- 560025, Karnataka
I have conducted the secretarial audit of the compliance of applicable
statutory provisions and the adherence to good corporate practices
by Sri Chamundeswari Sugars Limited (hereinafter called the
'company'). Secretarial Audit was conducted in a manner that
provided me a reasonable basis for evaluating the corporate
conducts/statutory compliances and expressing my opinion thereon.
Based on my verification of the Company's books, papers, minute
books, forms and returns filed and other records maintained by the
company and also the information provided by the Company, its
officers, agents and authorized representatives during the conduct of
secretarial audit, I hereby report that in my opinion, the company has,
during the audit period covering the financial year ended on 31st
March, 2015, complied with the statutory provisions listed hereunder
and also that the Company has proper Board-processes and
compliance-mechanism in place to the extent, in the manner and
subject to the reporting made hereinafter:
I have examined the books, papers, minute books, forms and returns
filed and other records maintained by the Company for the financial
year ended on, 31st March, 2015 according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made there
under;
(ii) The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the
rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws
framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and
regulations made thereunder to the extent of External
Commercial Borrowings. However provisions of Foreign Direct
Investment, Overseas Direct Investment are not applicable
during the audit period;
(v) The following Regulations and Guidelines prescribed under the
Securities and Exchange Board of India Act, 1992 ('SEBI Act'):-
(a) The Securities and Exchange Board of India (Substantial
Acquisition of Shares and Takeovers) Regulations, 2011; (Not
applicable to the Company during the Audit Period)
(b) The Securities and Exchange Board of India (Prohibition of
Insider Trading) Regulations,1992; (Not applicable to the
Company during the Audit Period)
(c) The Securities and Exchange Board of India (Issue of Capital
and Disclosure Requirements) Regulations,2009; (Not
applicable to the Company during the Audit Period)
(d) The Securities and Exchange Board of India (Employee Stock
Option Scheme and Employee Stock Purchase
Scheme)Guidelines,1999; (Not applicable to the Company
during the Audit Period)
(e) The Securities and Exchange Board of India (Issue and Listing
of Debt Securities) Regulations, 2008; (Not applicable to the
Company during the Audit Period)
18
(f) The Securities and Exchange Board of India (Registrars to an
Issue and Share Transfer Agents) Regulations, 1993
regarding the Companies Act and dealing with client;
(g) The Securities and Exchange Board of India (Delisting of
Equity Shares) Regulations, 2009; (Not applicable to the
Company during the Audit Period) and
(h) The Securities and Exchange Board of India (Buy-back of
Securities) Regulations, 1998 (Not applicable to the
Company during the Audit Period)
I have also examined compliance with the applicable clauses of the
following:
i. Secretarial Standards issued by The Institute of Company
Secretaries of India. Not notified hence not applicable to the
Company during the audit period.
ii. The Listing Agreements entered into by the Company with
Madras Stock Exchange Ltd (MSE). The shares of the company
are listed with MSE. MSE being not able to fulfil the criteria
prescribed by SEBI, made application for voluntary exit as a stock
exchange with SEBI by giving two options to the Exclusively Listed
Companies (ELCs) with it either to list on national level stock
exchange or opt for voluntary de-listing in terms of SEBI
(Delisting of Equity shares) Regulations 2009, else MSE would be
forced to take the shares of the ELCs to the Dissemination Board
of National Stock Exchange (NSE).
The Company, being ELC with MSE, is in the process of either obtain
listing on national level stock exchanges or to opt for voluntary de-
listing in terms of SEBI (Delisting of Equity shares) Regulations
2009.The status of the Company has ceased to be a listed company
with MSE and has been placed on dissemination board of NSE with
effect from 27th March 2015 by allowing buying and selling of shares
through NSE on its Dissemination Board.
During the period under review the Company has complied with the
provisions of the Act, Rules, Regulations, Guidelines, Standards, etc.
mentioned above subject to the following observations.
(a) With respect of deposits accepted by the company before the
commencement of the Act, amounting to `11,68,00,000/-
(553 Depositors) remains unpaid as on 31st March, 2015. An
application under section of 74(2) of the Act seeking extension of
time till 31st March, 2016 for repayment of those Deposits, was
made by the Company to the Company Law Board (CLB), Chennai
Bench. The application is yet to be disposed of by CLB.
(b) Dividend for Cumulative Non Convertible Preference Shares was
not declared for the financial year ended 31st March 2015 as the
company incurred losses during the said year.
I further report that, having regard to the compliance system
prevailing in the Company and on examination of the relevant
documents and records in pursuance thereof, on test-check basis, the
Company has complied with the following laws / guidelines/rules
applicable specifically to the Company (as certified by the
management):
(a) Sugar Cess Act, 1982;
(b) Levy Sugar Price Equalisation Fund Act, 1976;
(c) Food Safety and Standards Act, 2006;
(d) Essential Commodities Act, 1955;
SRI CHAMUNDESWARI SUGARS LIMITED

I further report that:
The Board of Directors of the Company is duly constituted with proper
balance of Executive Directors Non-Executive Directors, women
director and independent director. The changes in the composition of
the Board of Directors that took place during the period under review
were carried out in compliance with the provisions of the Act.
Adequate notice is given to all directors to schedule the Board
Meetings, agenda and detailed notes on agenda were sent at least
seven days in advance, and a system exists for seeking and obtaining
further information and clarifications on the agenda items before the
meeting and for meaningful participation at the meeting.
All decisions at Board Meetings and Committee Meetings are carried
out unanimously as recorded in the minutes of the meetings of the
Board of Directors or Committee of the Board, as the case may be.
To
Sri Chamundeswari Sugars Limited
Registered Office:
88/5, Richmond Road,
Bangalore- 560025, Karnataka
My report of even date is to be read along with this letter.
(1) Maintenance of secretarial record is the responsibility of the
management of the company. My responsibility is to express an
opinion on these secretarial records based on my audit.
(2) I have followed the audit practices and processes as were
appropriate to obtain reasonable assurance about the
correctness of the contents of the Secretarial records. The
verification was done on test basis to ensure that correct facts are
reflected in secretarial records. I believe that the processes and
practices, I followed provide a reasonable basis for my opinion.
42nd ANNUAL REPORT
Secretarial Audit Report
I further report that there are adequate systems and processes in the
company commensurate with the size and operations of the company
to monitor and ensure compliance with applicable laws, rules,
regulations and guidelines.
I further report that during the audit period there are no specific
events/actions having a major bearing on the company's affairs in
pursuance of the above referred laws, rules, regulations, guidelines,
standards taken place:
Thirupal Gorige
July 28, 2015 Practicing Company Secretary
Bangalore FCS No. : 6680; CP No. : 6424
Note: This report is to be read with my letter of even date which is
annexed as Annexure A and forms an integral part of this report.
(3) I have not verified the correctness and appropriateness of
financial records and Books of Accounts of the company.
(4) Where ever required, I have obtained the Management
representation about the compliance of laws, rules and
regulations and happening of events etc.
(5) The compliance of the provisions of Corporate and other
applicable laws, rules, regulations, standards is the responsibility
of management. My examination was limited to the verification
of procedures on test basis.
(6) The Secretarial Audit report is neither an assurance as to the
future viability of the company nor of the efficacy or
effectiveness with which the management as conducted the
affairs of the company.
Thirupal Gorige
July 28, 2015 Practicing Company Secretary
Bangalore FCS No. : 6680; CP No. : 6424
19
 Report on Corporate Governance

REPORT ON CORPORATE GOVERNANCE

1. Company's Philosophy Senior Management of the Company. Annual Declaration

The Company's philosophy on Corporate Governance endeavors regarding compliance with the Code is obtained from every
attainment of the highest levels of transparency, accountability person covered by the Code of conduct. A declaration to this
and equity in all facets of its operation and in all interactions with effect, duly signed by the Managing Director is annexed. The
its stakeholders, including shareholders, employees, cane Code of Conduct is available on the Company's website-
growers, customers, suppliers, local community, lenders and the www.chamundeswarisugars.in.
Government. 4. Board Meetings and AGM Attendance
2. Board of Directors The Board met 6 times during the financial year on 29.05.2014,
The Board comprises of a one Managing Director and seven 14.08.2014, 25.09.2014, 14.11.2014, 11.02.2015 and
other Non-Executive Directors, including a Women Director. The 30.03.2015. The Board has formed Audit Committee,
number of independent directors is half of the total number of Nomination and Remuneration Committee and Stakeholders
directors. The composition of the Board is in conformity with Relationship Committee. Details of attendance of each Director
clause 49 of the listing agreement. at the Board Meetings and at last Annual General Meeting held
3. Code of Conduct on 25.09.2014 are given below:
The Code of Conduct of Sri Chamundeswari Sugars Limited, as
adopted by the Board of Directors, is applicable to Directors and
Financial Year 2014-15 Committee position # No. of
Category of Attendance at No. of
Name of the Director other Chairman Member Shares
Directorships Board Last Directorships*
Meeting AGM (excluding SCSL) held
Dr. N. Mahalingam** Non-Executive Director/
Chairman Non-Independent Director 2 No NA NA NA 2693
Shri. M. Srinivaasan Executive Director
Managing Director 6 Yes 8 – 1 21200
Shri. K. Prakash*** Non-Executive Director/ 5 Yes 2 – – 1600
Executive Director Non-Independent Director
Dr. M. Manickam Non-Executive Director/ 5 No 8 1 1 2669
Non-Independent Director
Shri. M. Balasubramaniam Non-Executive Director/
Non-Independent Director 5 No 9 – 2 2666
Shri. K.N.V. Ramani## Independent
Non-Executive Director 4 No 6 2 2 1397
Shri. V.K. Swaminathan Non-Executive Director/
Non-Independent Director 6 Yes 1 – – 2693
Dr. A. Selvakumar Independent
Non-Executive Director 5 Yes 2 1 – 1424
Shri. A. Arjunaraj Independent
Non-Executive Director 4 Yes – – – 666
Dr. M.R. Desai Independent
Non-Executive Director 1 No 2 – 1 500
Smt. Susheela Independent
Balakrishnan### Non-Executive Director 1 NA – – – 500

* Excluding Directorship in Private Limited Companies and Section 25 Companies (Companies Act, 1956)
** Passed away on 02.10.2014
*** Resigned from the Board on 23rd March 2015.
# Only Audit Committee and Stakeholder Relationship Committee of public limited companies are considered for this purpose.
## Resigned from the Board on 20thMarch, 2015.
### Appointed w.e.f 30.03.2015
Familiarisation Programme for Directors Managing Director also has one to one discussion with the Directors
At the time of appointing a Directors, a formal letter of appointment is to familiarize them with the company's operations. Further the
given to them which inter alia explains the role, function, duties and company has put in place a system to familiarize the Independent
responsibilities as a Director of the Company. The Directors are also Directors about the company, its products, business modules etc., The
explained in detail the compliance required under the Companies Act, terms and conditions of the appointment of Independent Directors
2013, Clause 49 of the Listing Agreement and other relevant has been uploaded on the Company's website
regulations and affirmation taken with respect to the same. The www.chamundeswarisugars.in

20 SRI CHAMUNDESWARI SUGARS LIMITED


5. Audit Committee
The Committee consists of two Independent Directors and two
Non-Executive and Non-Independent Director. No Executive
Director is in the Committee. The Audit Committee consists of:
1. Shri. A. Arjunaraj
2. Shri. M. Balasubramaniam
3. Dr. A. Selvakumar
4. Shri. V.K . Swaminathan
Shri. A. Arjunaraj is the Chairman of the Audit Committee.
The Audit Committee met 6 times during the financial year on
28.05.2014, 13.08.2014, 25.09.2014, 13.11.2014, 11.02.2015
and 30.03.2015 and the details of attendance of the members
are given below:
Name of Member No. of meetings attended
1. Shri. A. Arjunaraj 4
2. Shri. M. Balasubramaniam 4
3. Dr. A. Selvakumar 5
4. Shri. V.K.Swaminathan 6
The role and terms of reference of the Audit Committee, inter alia,
cover reviewing of the following.
1. Examination of the financial statement and draft auditors' report
2. Oversee of the Company's financial reporting process and
disclosure of its financial information to ensure that the financial
statements are correct, sufficient and credible.
3. Recommendation for appointment, remuneration and terms of
appointment of statutory auditors and cost auditors of the
Company
4. Approval of payment to statutory auditors for any other services
rendered by the statutory auditors.
5. Discuss and review, with the management and auditors, the
annual / quarterly financial statements before submission to the
Board, with particular reference to:
5.1. Matters required to be included in the Directors'
Responsibility Statement in the Board's report in terms of
sub-section (3)(c) of Section 134 of the Companies Act
2013.
5.2. Disclosure under 'Management Discussion and Analysis of
Financial Condition and Results of Operations'.
5.3. Any changes in accounting policies and practices and
reasons for them.
5.4. Major accounting entries involving estimates based on
exercise of judgment by management.
5.5. Significant adjustments made in the financial statements
arising out of audit findings.
5.6. Qualifications in the draft audit report.
5.7. Disclosure of any related party transactions.
5.8. Compliance with listing and other legal requirements
relating to financial statements.
5.9. Review the statement for uses/applications of funds by
major category on a quarterly basis, with the financial
results and annually the statement of funds utilized for
purposes other than as mentioned in the offer document /
prospectus / notice. Such review shall be conducted till the
full money raised through the issue has been fully spent.
42nd ANNUAL REPORT
Report on Corporate Governance
6. Review the financial statements, in particular, the investments
made by the unlisted subsidiary company, if any
And also the areas mentioned, under clause 49 of the Listing
Agreement and Section 177 of the Companies Act, 2013, besides
other terms as may be referred to by the Board of Directors from
time to time.
The Chairman of the Audit Committee was present at the last
Annual General Meeting.
7. Nomination and Remuneration Committee
The Committee has been reconstituted on 30th March 2015, as
one of the member Shri K.N.V Ramani, resigned from the Board
on 20th March, 2015. The present composition of the
Nomination and Remuneration Committee is given below:
1. Dr A Selvakumar
2. Shri A Arjunaraj
3. Dr M R Desai
Dr. A. Selvakumar is the Chairman of the Remuneration
Committee.
The Remuneration Committee will determine and recommend
to the Board the remuneration including commission,
perquisites and allowances payable to the Managing Director,
Executive Director and Key Managerial Personnel as and when
the necessity arises.
During the year, Nomination and Remuneration committee met
on 25.09.2014 and on 30.03.2015. The attendance of the
committee members is as follows :
Name of Member No. of meetings attended
1. Shri. K N V Ramani* –
2. Dr A Selvakumar 2
3. Shri A Arjunaraj 2
4. Dr M R Desai –
*Resigned from the Board on 20.03.2015
Details of remuneration paid to Managing Director and
Executive Director are given in Notes Forming part of Financial
Statements.
The Board's terms of reference to the Committee are:
1. Identifying persons who are qualified to become directors
and who may be appointed in senior management in
accordance with the criteria laid down;
2. Recommend to the Board their appointment and removal;
3. Carry out evaluation of Director's performance;
4. Formulate the criteria for determining qualifications, positive
attributes and independence of a Director;
5. Recommend to the Board a policy relating to the
remuneration for the Directors, Key Managerial Personnel
and other employees and to ensure that in this regard the
following:
a. The level and composition of remuneration is reasonable
and sufficient to attract, retain and motivate directors of the
quality required to run the company successfully
b. Relationship of remuneration to performance is clear and
meets the appropriate benchmarks;
c. Remuneration to directors, key managerial personnel and
senior management involves a balance between fixed and
incentive pay reflecting the short and long term
performance objectives appropriate to the working of the
company and its goals.
21
 Report on Corporate Governance
6. Review and recommend the compensation and variable pay for
Executive Directors to the Board; and
7. Perform such other activities related to this Charter as requested
by the Board of Directors.
REMUNERATION POLICY
The remuneration policy is directed towards rewarding performance,
based on the review of achievements. It is aimed at attracting and
retaining talents. The remuneration structure shall be determined
after taking into consideration of age, qualification, experience in the
respective field, past performance of the concerned individual,
regulatory frame work, competition in the industry, financial position
of the company.
The appointment and remuneration of Executive Directors viz.
Managing Director is governed by the recommendation of
Nomination and Remuneration Committee, resolutions passed by the
Board of Directors and shareholders of the company. The
remuneration consists of salary, perquisites, allowances and
commission which are subject to the limitations specified under the
Companies Act, 2013 and Schedule V to the said Act.
The Non-Executive Directors are paid sitting fees of ` 10,000/- for
each meeting of the Board or Committee thereof.
The remuneration paid to the Managing Director and Executive
Director are disclosed at Note No 31. The company does not have any
Employees Stock Option Scheme.
Evaluation Criteria :
The Nomination and Remuneration Committee has formulated the
methodology and criteria to evaluate the performance of the Board
and each Director. The evaluation of the performance of the Board
and its committees are evaluated through a questionnaire circulated
to all directors and based upon the response to the questionnaire, the
directors do a self evaluation of their performance. Accordingly Board
reviewed the performance of each of the directors and expressed
their satisfaction.
The performance evaluation of the Managing Director was carried
out separately by the Independent Directors. The Independent
Directors expressed their satisfaction on the performance of the
Managing Director.
The Remuneration policy and the evaluation criteria approved by the
Board of Directors is hosted on the Company's website.
Meeting of Independent Directors
Pursuant to the provisions of the Companies Act, 2013 and Clause 49
of the Listing Agreement with the Stock Exchanges, a meeting of
Independent Directors was held to review the performance of the
Board and the Managing Director and to assess the quality, quantity
and timeliness of flow of information between the management and
the Board. All the Independent directors met on 30th March, 2015 .
Dr. A. Selva Kumar, Chairman of the meeting presented views of the
Independent Directors on the matters relating to the Board process
and the overall affairs of the company to the full Board.
RELATED PARTY TRANSACTIONS
All transactions entered into with Related Parties for the year under
review were on arm's length basis and in the ordinary course of
business and that the provisions of Section 188 of the Companies Act,
2013 are not attracted. Further, there are no material related party
transactions during the year under review with the Promoters,
Directors or Key Managerial Personnel. All Related Party Transactions
are placed before the Audit Committee as also to the Board of
Directors. Omnibus approvals are obtained for the transactions which
22
are of repetitive nature. Transactions entered into pursuant to
omnibus approval are reviewed by Audit Committee on quarterly
basis.
The policy on related party transactions as approved by the Board of
Directors has been uploaded on the website of the company at
www.chamundeswarisugars.in. None of the Independent Director
has any pecuniary relationship or transactions vis-à-vis the company.
Risk Management Committee :
Company has laid down procedures to inform Board members about
the risk assessment and minimization procedures. The Board
periodically discusses the significant business risks identified by the
management and the mitigation process being taken up.
The Committee consists of following members:
Shri M Srinivaasan - Chairman
Dr A Selvakumar - Member
Shri V K Swaminathan - Member
During the year, the committee met on 30.03.2015.
The Company has formulated a policy for Risk management with the
following objectives:
● Provide an overview of the principles of risk management
● Explain approach adopted by the Company for risk management
● Define the organizational structure for effective risk management
● Develop a "risk" culture that encourages all employees to identify
risks and associated opportunities and to respond to them with
effective actions.
● Identify, access and manage existing and new risks in a planned
and coordinated manner with minimum disruption and cost, to
protect and preserve Company's human, physical and financial
assets.
7. Stakeholders' Committee
(i) Share Transfer Committee
A Share Transfer Committee has constituted to deal with
various matters relating to share transfer / transmission, issue
of duplicate share certificates, approving the split and
consolidation requests and other matters relating to transfer
and registration of shares. The members of the Committee
are Dr M R Desai, Director and Shri. M. Srinivaasan, Managing
Director.
(ii) Stakeholder's Relationship Committee
The Company has constituted the Stakeholder's Relationship
Committee to oversee the redressal of Stakeholders and
investors' grievance in relation to the transfer of shares, non-
receipt of annual report, etc.,
The Committee consists of the following Directors
1. Dr M R Desai
2. Shri M Srinivaasan,
3. Shri M Balasubramaniam
Dr M R Desai is the Chairman of the Committee
Shri. M. Rajendraprasath, Company Secretary, has been functioning
as Compliance Officer for the purpose of complying with various
provisions of Securities and Exchange Board of India, Listing
Agreements with Stock Exchanges, Registrar of Companies, and for
monitoring the share transfer process etc.,
During the year the company has not received any complaints from
the shareholders and no complaint is pending as on 31.03.2015.
The Committee shall consider and resolve the grievances of security
holders of the company including complaints related to transfer of
SRI CHAMUNDESWARI SUGARS LIMITED
 Report on Corporate Governance

shares, non-receipt of Balance Sheet, non-receipt of declared Exchanges. Adoption of non-mandatory requirements of
dividend, if any and to monitor the performance of Company's Clause 49 of the Listing Agreement is being reviewed by Board
Registrar and Share Transfer Agents. from time-to-time.
8. CEO / CFO Certification 12. Means of Communication
The Managing Director &Chief Financial Officer have furnished a The Quarterly / Half yearly / Annual Financial results of the
certificate relating to financial statements and internal controls Company are published in English (Financial Express) and
and systems to the Board of Directors as required under Clause 49 Kannada (Samyuktha Karnataka) newspapers.
of the Listing Agreement and Board took the same on record. 13. Shareholders Information
9. Insider Trading Annual General Meeting
In compliance with SEBI Regulations in prevention of Insider Day and Date Friday, 25th September 2015
Trading, the Company has framed a comprehensive code of Time 2.30 P.M
conduct for its Management Staff. The code lays down guidelines Venue Hotel Woodlands, Bangalore
and procedures to be followed and disclosures to be made by the Financial Calendar 1st April 2015 to 31st March 2016
Management Staff while dealing with the shares of the Company. Financial Results for
10. General Body Meetings the quarter ending Results announcement
Details of Annual General Meetings: 30th June 2015 Second week of August 2015
The venue and time of the General Meetings held during last (Unaudited)
three years are as follows: 30th September 2015 Second week of November 2015
(Unaudited)
AGM Date Venue Time 31st December 2015 Second Week of February 2016
(Unaudited)
39th 24.09.2012 Hotel Woodlands 3.00 PM
AGM #5, Raja Ram Mohan Roy Road Year Ending
31st March 2016 (Audited) Last Week of May 2016
Bangalore – 560 025
Date of Book Closure 16th September 2015 to
40th 27.09.2013 Hotel Woodlands 2.30 PM 25th September 2015
AGM #5, Raja Ram Mohan Roy Road (both dates inclusive)
Bangalore – 560 025 Share Price Movement
41st 25.09.2014 Hotel Woodlands 3.15 PM During the year the Company's shares were traded in Madras Stock
AGM #5, Raja Ram Mohan Roy Road Exchange through National Stock Exchange. The scrip code at NSE for
our Company is "SRICHAMUND". The monthly high and low market
Bangalore – 560 025
prices at NSE from 1st April 2014 to 31st March 2015 is given below
Details of Special Resolutions passed during the last 3 AGM: along with Nifty:
Date of Share Price at NSE NSE-Nifty
Particulars MONTH
AGM HIGH LOW HIGH LOW
24.09.2012 Nil April 2014 23.55 23.55 6,869.85 6,650.40
27.09.2013 1. Commission to Non-Executive Chairman May 2014 23.55 23.55 7,563.50 6,638.55
2. Re-appointment of Managing Director
June 2014 24.15 21.85 7,700.05 7,239.50
25.09.2014 1. Authorization to Board under Sec. 180(1)(c) of the July 2014 23.70 19.60 7,840.95 7,422.15
Companies Act, 2013
August 2014 22.05 22.05 7,968.25 7,540.10
2. Authorization to Board under Sec. 180(1)(a) of the
Companies Act, 2013 September 2014 21.35 20.30 8,180.20 7,723.85
3. Alteration of Article No.125 (a) of Articles of October 2014 20.40 20.30 8,330.75 7,723.85
Association of the Company
November 2014 - - 8,617.00 8,290.25
In the last year none of the special resolution was passed by way of December 2014 - - 8,626.95 7,961.35
postal ballot. January 2015 17.55 17.45 8,996.60 8,065.45
The company has not proposed to pass any special resolution through February 2015 - - 8,941.10 8,470.50
postal ballot in the forth coming Annual General Meeting. March 2015 - - 9,119.20 8,269.15
11. Disclosures Subsequently, on 30th May 2012, SEBI had issued a circular providing
● The company has not entered into any transaction of material guidelines in respect of exit option to stock exchanges if the annual
nature with the related parties having potential conflict with trading turnover on their own platform was less than ` 1000 Crores
the interests of the company at large. and if the Stock Exchanges was not able to achieve the prescribed
turnover of ` 1000 Crores on a continual basis at any time before the
● There are no instances of non-compliance relating to capital
expiry of 2 years from the date of issuance of the circular. Also that
markets during the last three years.
circular stated that such exchanges may opt for voluntary de-
● The company has a whistle blower policy in place and no recognition and exit before the expiry of 2 years Accordingly the MSE
personnel have been denied access to the Audit committee. has ceased from trading activities
● The company has complied with all the mandatory Further MSE informed that, our Company has ceased to be a listed
requirements of Corporate Governance norms as company with MSE and has been placed on the dissemination board
enumerated in Clause 49 of the Listing Agreement with Stock of National Stock Exchange, Mumbai.

23
42nd ANNUAL REPORT
 Report on Corporate Governance

Share Transfer System Plant Location

To enable members for conversion of shares from physical to demat Unit - I Unit - II
form the company has entered into an agreement with National Sugar, Distillery Sugar unit
Securities Depository Limited (NSDL) and the Central Depository & Cogeneration Unit. Srinivasapura
Service (India) Limited (CDSL) and appointed M/s.Canbank Computer Bharathinagara, KM Doddi, Channarayapatna Taluk
Services Ltd., Bangalore as the Registrars & Share Transfer Agents. Maddur Taluk, Mandya District, Hassan District
International Securities Identification Number (ISIN) allotted to the Karnataka. Karnataka
equity shares of the company is INE 004H01019.
Address for Correspondence
The shares lodged in physical form are processed, registered and The Company has appointed M/s. Canbank Computer Services
returned by the Registrar & Share Transfer Agents within a stipulated Limited., Bangalore, as the authorised Registrar and Share Transfer
time if the documents are in order. Agents. Members are requested to correspond with them directly for
Distribution of Shareholding as on 31st March 2015 non-receipt of share certificates, for share transfers, transmission,
and change of address, consolidation, splits, and registration of power
Share No. of % of % of of attorney and on all other queries, in the following address.
Share Share No. of Share
holdings holders holders Shares holding M/s Canbank Computer Services Limited
1 – 100 3835 55.15 1,46,170 0.60 Unit: Sri Chamundeswari Sugars Limited
101 – 500 2597 37.35 5,46,389 2.23 No.218, J.P.Royale, 1st Floor, 2nd Main, Sampige Road
501 – 1000 325 4.76 2,17,204 0.90 (Near 14th Cross), Malleswaram, Bangalore – 560003.
Ph:080-23469661/62/64/65, Fax:080-23469667/68
1001 – 2000 118 1.70 1,56,478 0.64
e-mail: canbankrta@ccsl.co.in
2001 – 3000 30 0.43 73,703 0.30
(or)
3001 – 4000 12 0.17 43,912 0.18
Shri M. Rajendraprasath
4001 – 5000 4 0.06 17,429 0.07 Company Secretary & Asst. General Manager (A/cs)
5001 – 10000 9 0.13 54,910 0.22 Sri Chamundeswari Sugars Limited
10001 – and above 24 0.35 2,31,98,133 94.86 88/5, Richmond Road, Bangalore - 560 025, Karnataka.
Total 6969 100.00 2,44,54,328 100.00 Tel : 080 - 25002500 Fax : 080 - 25002510
e-mail : complianceofficer@chamundisugars.com
Shareholding pattern as on 31st March 2015
No. of shares held % of ANNUAL DECLARATION BY MANAGING DIRECTOR PURSUANT TO
Category share CLAUSE 49 OF LISTING AGREEMENT
Physical Demat Total holding
As required under Clause 49 of the Listing Agreement with the Stock
1. Promoters and Promoters Group - 1,82,73,779 1,82,73,779 74.73
Exchange, I declare that all the Board Members and Senior
2. Banks / Financial Institutions, Management Personnel of the Company have affirmed compliance
Public Sector Undertakings, 150 1,33,532 1,33,682 0.55 with the Company's Code of Conduct and Ethics for the year ended
Mutual Funds 31st March 2015.
3. NRIs 1,266 2,932 4,198 0.02
For Sri Chamundeswari Sugars Limited
4. Private Corporate Bodies 1,43,847 40,89,433 42,33,280 17.31
Date: 07.08.2015 (Sd/-) M. Srinivaasan
5. Public 9,37,579 8,71,810 18,09,389 7.40
Place: Coimbatore Managing Director
Total 10,82,842 2,33,71,486 2,44,54,328 100.00
Percentage (%) 4.43 95.57 100.00

24 SRI CHAMUNDESWARI SUGARS LIMITED

 AUDITORS' CERTIFICATE ON CORPORATE GOVERNANCE
(Under Clause 49 of the Listing Agreement)
To the members of
SRI CHAMUNDESWARI SUGARS LIMITED
We have examined the compliance of conditions of Corporate Governance by Sri Chamundeswari Sugars Limited ('the Company'), for the year
ended on 31st March 2015, as stipulated in Clause 49 of the Listing Agreement of the said Company with Stock Exchanges.
The compliance of conditions of corporate governance is the responsibility of the management. Our examination was limited to a review of the
procedures and implementation thereof adopted by the company for ensuring the compliance with the conditions of the Corporate
Governance as stipulated in the said clause. It is neither an audit nor an expression of opinion on the financial statements of the company.
In our opinion and to the best of our information and according to the explanations and the representations given to us by the Directors and the
Management, we certify that the company has complied with the conditions of Corporate Governance as stipulated in the above mentioned
Listing Agreement. However, the company has ceased to be a listed company with Madras Stock Exchange Limited and has been placed on
dissemination board of National Stock Exchange Limited with effect from 27th March, 2015.
We further state that such compliance is neither an assurance as to the future viability of the company nor the efficiency or effectiveness with
which the management has conducted the affairs of the company.
For P.N. Raghavendra Rao & Co.,
Chartered Accountants
Firm Registration Number : 003328S
(Sd/-) P.R.Vittel
Coimbatore Partner
August 07, 2015 Membership Number: 200/018111

25
42nd ANNUAL REPORT
 Independent Auditors' Report
INDEPENDENT AUDITORS' REPORT
To The Members of SRI CHAMUNDESWARI SUGARS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of SRI
CHAMUNDESWARI SUGARS LIMITED ("the Company"), which
comprise the Balance Sheet as at 31st March ,2015, the Statement of
Profit and Loss, the Cash Flow Statement for the year then ended on
that date, and a summary of the significant accounting policies and
other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act,2013 ("the Act") with
respect to the preparation of these financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rule, 2014. This responsibility also
includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included
in the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10)of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements.
The procedures selected depend on the auditors' judgment, including
the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of
expressing an opinion on whether the Company has in place an
adequate internal financial control system over financial reporting
and the operative effectiveness of such controls. An audit also
includes evaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates made by
Company's Directors, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
26
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as at
31st March ,2015, and its LOSS and its cash flows for the year ended
on that date.
Emphasis of Matter
We draw attention to Note No: 37 (1) and (2) to the financial
statements which specifies the claims disputed challenged by the
company.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of sub-
section (11) of section 143 of the Companies Act, 2013, we give in the
Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
8. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and
explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our
examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with
the books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March ,
2015, from being appointed as a director in terms of Section
164(2) of the Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations
on its financial position in its financial statements- Refer Note
37(1) and (2) to the financial statements;
(ii) The Company has a long-term lease contract for operating a
Sugar Unit at Srinivasapura, Hassan District. As per the
management representation, there are no material
foreseeable losses which require provision on account of this.
The company, during the year, has not entered into any
derivative contracts.
(iii) There has been no delay in transferring amounts, required to
be transferred, to the Investor Education and Protection fund
by the company.
For P.N. Raghavendra Rao & Co.,
Chartered Accountants
Firm Registration Number : 003328S
P.R.Vittel
May 30, 2015 Partner
Coimbatore Membership Number : 018111
SRI CHAMUNDESWARI SUGARS LIMITED
 Independent Auditors' Report

Annexure referred to Auditors report of even date (c ) The amount required to be transferred to Investor
Re : Sri Chamundeswari Sugars Limited (the "Company") Education and Protection Fund in accordance with the
i. (a) The Company has maintained proper records showing full relevant provisions of the Act and rules framed there under
particulars, including quantitative details and situation of has been transferred to such fund within time.
fixed assets; viii. The company's accumulated losses at the end of the financial
(b) These fixed assets have been physically verified by the year does not exceed 50% of its Networth. The Company has
management at reasonable intervals. No material incurred cash losses during the year and cash profit in the
discrepancies were noticed on such verification. immediately preceding year.
ii. (a) Physical verification of the inventory has been conducted at ix. Defaults by the Company in repayment of dues to banks and
reasonable intervals by the management. financial institutions are as under:
(b) The procedures of physical verification of inventories (a) Default in repayment of dues to Banks:
followed by the management are reasonable and adequate
in relation to the size of the Company and the nature of its Amount of Amount since
Period of
business. Particulars Default paid
Default
(c) The Company is maintaining proper records of inventories. (` in lakhs ) (` in lakhs)
No material discrepancies were noticed on physical
Principal 198.12 January 2015 Nil
verification of inventory.
iii. According to the information and explanations given to us, the
January 2015 &
Company has not granted any loans, secured or unsecured to Interest 4.14 Nil
February 2015
companies, firms or other parties covered in the register
maintained under section 189 of the Act. (b) Default in repayment of dues to financial institution:
iv. There is an adequate internal control system commensurate with
the size of the Company and the nature of its business, for the Amount of Amount since
Period of
purchase of inventory and fixed assets ,for the sale of goods and Particulars Default paid
Default
services. During the course of our audit, we have not observed (` in lakhs ) (` in lakhs)
any major weakness or continuing failure to correct any major Sept 14 to
weakness in internal control system. Principal 360.89 Nil
Mar 15
v. In our opinion and according to the information and explanations
given to us in respect of deposits accepted by the company from Interest 20.50 16.2.15 to Nil
public, amounting to ` 11,68,00,000/- (553 depositors) 15.3.15
remaining unpaid as on 31.03.2015. An application under (c) The Company has not accepted any debentures.
section 74 (2) of the Companies Act, 2013 has been made by the
Company to the Company Law Board, Chennai Bench seeking x. The Company has not given guarantees for loans taken by others
extension of time till 31.03.2016 for repayment of those deposits from banks or financial institutions.
and order of the Company Law Board is awaited. The Company
has not accepted any deposits from public during the year. xi. Term loans availed during the year have been applied for the
vi. We have broadly reviewed the cost records maintained by the purpose for which the loans were obtained.
Company specified under sub-section (1) of Section 148 of the
Companies Act, and are of the opinion that, the prescribed xii. According to the information and explanation given to us, no
accounts and records have been made and maintained. fraud on or by the company has been noticed or reported during
vii. (a) The company has deposited with appropriate authorities, the year.
with delay on many occasions, undisputed statutory dues,
including provident fund, employees' state insurance,
income-tax, sales-tax, service tax, duty of excise, duty of
customs, value added tax, cess and other statutory dues.
There are no such statutory dues as at the last day of the
financial year, remaining in arrears for a period of more For P.N. Raghavendra Rao & Co.,
than six months from the date they became payable. Chartered Accountants
(b) According to the information and explanation given to us Firm Registration Number : 003328S
and records of the Company, the statutory dues that have P.R.Vittel
not been deposited on account of dispute are as under: May 30, 2015 Partner
Forum where Coimbatore Membership Number : 018111
Name of the Nature Amount Period to which
of the amount the dispute
statute dues (` in Lakhs) relates is pending
The Central Excise 2022.88 FY : 2005-06 Commissioner
Excise Act, Duty to 2012-13 of Central
1944 Excise, Mysore

27
42nd ANNUAL REPORT
 Balance Sheet

BALANCE SHEET AS AT 31.03.2015

Note As at 31.03.2015 As at 31.03.2014

Particulars
No. ` in Lakhs ` in Lakhs

I. EQUITY AND LIABILITIES

Shareholders' Funds
(a) Share Capital 2 3,915.43 3,915.43
(b) Reserves and Surplus 3 10,152.01 11,831.42
14,067.44 15,746.85
Non-Current Liabilities
(a) Long-Term Borrowings 4 9,841.24 8,861.70
(b) Deferred Tax Liabilities (Net) 5 1,070.26 1,656.35
(c) Other Long Term Liabilities 6 2,132.41 2,131.73
(d) Long-Term Provisions 7 504.25 490.79
13,548.16 13,140.57
Current Liabilities
(a) Short-Term Borrowings 8 6,057.53 4,963.05
(b) Trade Payables 9 7,026.11 4,661.81
(c) Other Current Liabilities 10 10,950.24 11,141.89
(d) Short-Term Provisions 11 267.59 249.46
24,301.47 21,016.21
TOTAL 51,917.07 49,903.63
II. ASSETS
Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets 12 21,540.14 22,321.43
(ii) Intangible Assets 2,304.35 3,003.55
(iii) Capital Work-in-Progress 1,113.24 631.38
24,957.73 25,956.36
(b) Non-Current Investments 13 214.79 324.96
(c) Long-Term Loans and Advances 14 794.93 803.23
(d) Other Non-Current Assets 15 2,204.78 2,204.78
28,172.23 29,289.33
Current Assets
(a) Current Investments 16 5,456.49 3,856.49
(b) Inventories 17 7,754.18 10,552.34
(c) Trade Receivables 18 1,386.15 804.83
(d) Cash and Cash Equivalents 19 1,114.57 589.87
(e) Short-Term Loans and Advances 20 7,429.91 4,525.75
(f) Other Current Assets 21 603.54 285.02
23,744.84 20,614.30
TOTAL 51,917.07 49,903.63
Significant Accounting Policies 1
Notes are an integral part of the Financial Statements.

Per our Report Annexed

For P.N.Raghavendra Rao & Co.,
Chartered Accountants
Firm Registration No. : 003328S

P R Vittel M Srinivaasan V K Swaminathan J U Srinivasan

Partner Managing Director Director Chief Financial Officer
Membership No.: 018111

Date : 30.05.2015 M. Rajendraprasath

Place : Coimbatore Company Secretary

28 SRI CHAMUNDESWARI SUGARS LIMITED

 Statement of Profit & Loss

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31.03.2015

Year Ended Year Ended

Note
Particulars 31.03.2015 31.03.2014
No. ` in Lakhs ` in Lakhs

Income
Revenue from Operations (Gross) 22 36,831.48 30,960.77
Less: Excise Duty 863.52 724.01

Revenue from Operations (Net) 35,967.96 30,236.76

Other Income 23 17.26 39.34

Total Revenue 35,985.22 30,276.10

Expenses
Cost of Raw Materials Consumed 24 22,347.94 19,447.81
Changes in Inventories of 25
(a) Finished Goods 3,152.85 (674.26)
(b) Work-in-Progress (164.85) 175.69
Employee Benefit Expenses 26 2,831.53 2,686.60
Finance Costs 27 3,070.24 3,076.05
Depreciation and Amortization Expenses 28 1,259.91 1,819.35
Other Expenses 29 5,444.68 5,347.22
Total Expenses 37,942.30 31,878.46

Profit / (Loss) Before Tax (1,957.08) (1,602.36)

Less: Provision for Taxation
For Deferred Tax (586.09) (519.89)
Profit / (Loss) After Tax (1,370.99) (1,082.47)

Earnings per Equity Share

Nominal Value per Equity Share 10.00 10.00
(a) Basic (5.91) (4.73)
(b) Diluted (5.91) (4.73)

Significant Accounting Policies 1

Notes are an integral part of the Financial Statements.

Per our Report Annexed

For P.N.Raghavendra Rao & Co.,
Chartered Accountants
Firm Registration No. : 003328S

P R Vittel M Srinivaasan V K Swaminathan J U Srinivasan

Partner Managing Director Director Chief Financial Officer
Membership No.: 018111

Date : 30.05.2015 M. Rajendraprasath

Place : Coimbatore Company Secretary

29
42nd ANNUAL REPORT
30 SRI CHAMUNDESWARI SUGARS LIMITED
 31
42nd ANNUAL REPORT
 Notes forming part of Financial Statements
Note : 1 >> SIGNIFICANT ACCOUNTING POLICIES
A. BASIS OF PREPARATION:
The accompanying Financial Statements have been prepared on
a going concern basis under the historical cost convention on the
accrual basis of accounting in conformity with Generally
Accepted Accounting Principles in India ("Indian GAAP").
B. VALUATION OF INVENTORIES:
Inventories of raw materials, work-in-progress, stores, finished
products and stock-in-trade are valued at the lower of cost and
net realizable value. Cost is ascertained on seasonal weighted
average for sugar and yearly average for distillery products and
stores. By-products and Scrap Stock are valued at Net realizable
value.
C. FIXED ASSETS:
a) Fixed Assets are shown at cost/re-valued figures, less
accumulated depreciation. Fixed assets added during the year
are valued at cost net of CENVAT but includes all direct expenses
like freight, erection charges, pre-operative expenses and
borrowing costs.
b) Expenditure including borrowing cost incurred on projects under
implementation is shown under "Work-in-Progress" pending
allocation to the assets.
D. INTANGIBLE ASSETS:
The payment made towards good will for cane ryots is amortized
over a period of 10 years in accordance with AS-26.
E. BORROWING COSTS:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the
cost of such assets.
F. DEPRECIATION:
Depreciation on tangible assets is provided on the straight line
method over the useful life in the manner prescribed in the
Schedule II of the companies Act, 2013 effective from 1st April
2014, as against the earlier practice of depreciating at the rates
prescribed in Schedule XIV of the Companies Act, 1956.
Depreciation on addition to assets on sale / discardment of
assets is calculated on pro-rata from the month of such addition
or up to the month of such sale / discardment, as the case may
be.
The additional depreciation relating to increased value of
revalued assets is adjusted against Revaluation Reserve.
G. INVESTMENTS:
Long term Investments are accounted at Cost. The diminution in
value of long term investments is recognised if the decline is
other than temporary.
H. a) REVENUE RECOGNITION:
Revenue is recognised to the extent it is probable that the
economic benefits will flow to the Company and the revenue
can be reliably measured. Revenue from sale of goods is
recognised when the significant risks and rewards of
ownership of the goods are transferred to the customer and is
stated net of trade discounts, excise duty and sales return.
Gross turnover includes excise duty but exclude sales tax.
i. Dividend income is accounted for in the year it is declared.
ii. All other incomes are accounted for on accrual basis.
iii. The Excise duty on sale of finished goods is deducted from
the turnover to arrive at the net sales as shown in the
Statement of Profit and loss.
iv. Inter Segmental transfer price is not recognised.
32
b) EXPENDITURE RECOGNITION:
i. The Cane price is written off on the basis of determination
of fair & remunerative price and agreed price if any, over
and above fair & remunerative price.
ii. The Excise duty appearing in the Statement of Profit and
loss as an expense represents excise duty provision for
difference between opening and closing stock of finished
goods.
I. FOREIGN CURRENCY TRANSACTIONS:
Foreign Exchange transactions are recognised based on maturity
of obligation.
J. RETIREMENT BENEFITS:
Contribution payable by the Company towards Provident fund,
Gratuity, Employees State Insurance and Superannuation fund
for the year are charged to statement of profit and loss. Gratuity
is determined based on the actuarial valuation made by an
independent actuary. For leased plant, gratuity is determined
based on the demand from the lessor.
Provision for liability in respect of Leave encashment benefits are
made based on actuarial valuation made by an independent
actuary.
K. SEGMENT REPORTING:
The segment reporting is inline with the accounting policies of
the company. Inter segment transactions have been accounted
for based on the price which has been arrived at considering cost
for utilities and net realizable value for by-products. Revenue
and expenses that are directly identifiable with or allocable to
segments are considered for determining the segment results.
Segment assets and liabilities include those directly identifiable
with the respective segments. Business segments are identified
on the basis of the nature of products, the risk/return profile of
the individual business, the organizational structure and the
internal reporting system of the company.
L. DEFERRED TAX:
Deferred tax is recognized on timing difference between
accounting income and the taxable income for the period and
reversal of timing differences of earlier periods and quantified
using the tax rates and laws that have been enacted /
substantively enacted as at the balance sheet date. The deferred
tax assets are recognized and carried forward to the extent that
there is reasonable certainty that these would be realized in
future.
M. EARNING PER SHARE:
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during
the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders
and the weighted average number of shares outstanding during
the period are adjusted for the effects of all dilutive potential
equity shares.
N. IMPAIRMENT OF ASSETS:
Impairment, if any, is recognized in accordance with the
Accounting Standard 28.
O. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT
ASSETS:
Provision is recognized only when there is a present obligation as
a result of past event and it is probable that there will be an
outflow of resources. Contingent Liabilities are not recognized
but are disclosed in the notes. Contingent Assets are neither
recognized nor disclosed in the financial statements.
SRI CHAMUNDESWARI SUGARS LIMITED
 Notes forming part of Financial Statements

As at As at
Particulars 31.03.2015 31.03.2014
` in Lakhs ` in Lakhs
Note : 2 >> Share Capital
(i) Particulars of Each Class of Share Capital :-
a) Authorised Share Capital:
4,00,00,000 Equity shares of `10/- each 4,000.00 4,000.00
20,00,000 Redeemable Cumulative Preference Shares of ` 100/- each 2,000.00 2,000.00
6,000.00 6,000.00
b) Issued, Subscribed and Paid up Share capital:
2,44,54,328 Equity shares of `10/- each fully paid up 2,445.43 2,445.43
14,70,000 5% Redeemable Cumulative Preference Shares of `100/- each 1,470.00 1,470.00
3,915.43 3,915.43
(ii) Reconciliation of Number and Amount of Shares at the end of the reporting period :-
a) Equity Shares with Voting Rights:

No. of Shares ` in Lakhs

Particulars As at As at As at As at
31.03.2015 31.03.2014 31.03.2015 31.03.2014
a) Number of Shares at the beginning of the reporting period 2,44,54,328 2,44,54,328 2,445.43 2,445.43
b) Number of Shares at the end of the reporting period 2,44,54,328 2,44,54,328 2,445.43 2,445.43

b) Redeemable Cumulative Preference Shares:

No. of Shares ` in Lakhs
Particulars As at As at As at As at
31.03.2015 31.03.2014 31.03.2015 31.03.2014
a) Number of Shares at the beginning of the reporting period 14,70,000 14,70,000 1,470.00 1,470.00
b) Number of Shares at the end of the reporting period 14,70,000 14,70,000 1,470.00 1,470.00

(iii) Rights, Preferences and Restrictions attaching to each class of Shares:

A. Equity Shares
The Company has only one class of Equity Shares having face value of ` 10 each. Each Shareholder is eligible for one vote per share.
Final Dividend is payable when it is recommended by the Board of Directors and subject to the approval of the Members at the
Annual General Meeting. In the event of liquidation, the equity shareholders will get the remaining assets after payment of all the
preferential dues.
B. Redeemable Cumulative Preference Shares
The Redeemable Cumulative Preference Shares have a par value of ` 100 each. These shares carry a fixed cumulative dividend of
5% p.a. These Shares would be redeemable at par at the end of ten years commencing from 30.01.2006.
These shares have the following preferential rights over the equity shareholders:
a) The payment of dividend at a Fixed Rate; and
b) The return of capital on winding up of the company.
These shareholders can enforce their right of getting dividend in priority over the equity shareholders.
The Preference Shareholders have no voting right except when the dividend is outstanding for a period of more than 2 years in case
of cumulative preference shares. But, they have right to vote on any resolution for winding up of the company or for the reduction /
repayment of capital.

33
42nd ANNUAL REPORT
 Notes forming part of Financial Statements

(iv) Details of shareholders holding more than 5% shares :-

As at 31.03.2015 As at 31.03.2014
Name of the Shareholder
% of Holding No. of Shares % of Holding No. of Shares
Equity Shares with Voting Rights:
a) ABT Industries Limited 30.53 74,66,666 30.53 74,66,666
b) Chamundeswari Enterprises Private Limited 18.27 44,69,066 18.27 44,69,066
c) Sakthi Beverages Limited 17.45 42,66,666 17.45 42,66,666
d) Sri Shanthini Exports Private Limited 14.45 35,33,333 14.45 35,33,333
TOTAL 80.70 1,97,35,731 80.70 1,97,35,731
Redeemable Cumulative Preference Shares:
a) Sakthi Sugars Limited 60.95 8,95,900 60.95 8,95,900
b) ABT Limited 31.39 4,61,500 31.39 4,61,500
TOTAL 92.34 13,57,400 92.34 13,57,400
(v) Specified details on each class of shares for the period of last five years :-
Particulars 31.03.2015 31.03.2014 31.03.2013 31.03.2012 31.03.2011
Aggregate number of shares allotted
by way of bonus shares (Fully Paid-up) – – – – 61,13,582
Note : 3 >> Reserves and Surplus
As at As at
Particulars 31.03.2015 31.03.2014
` in Lakhs ` in Lakhs
(i) Capital Redemption Reserve :-
Opening Balance 500.00 500.00
Closing Balance 500.00 500.00
(ii) Securities Premium Account :-
Opening Balance 150.00 150.00
Closing Balance 150.00 150.00
(iii) Revaluation Reserve :-
Opening Balance 5,930.55 6,255.56
Less : Utilised for:
Depreciation on revalued Assets transferred from to Profit & Loss Account 199.98 325.01
(Refer Note No. 28)
Closing Balance 5,730.57 5,930.55
(iv) General Reserve :-
Opening Balance 4,307.00 4,307.00
Closing Balance 4,307.00 4,307.00
(v) Surplus in Statement of Profit & Loss :-
Opening Balance 943.87 2,026.34
Add : Profit / (Loss) After Tax for the year (1,370.99) (1082.47)
Less : Adjustment of Short provision in previous years' depreciation (108.44) –
Total (535.56) 943.87
Closing Surplus (535.56) 943.87
(vi) Total Reserves and Surplus [(i) to (v)] 10,152.01 11,831.42
Note : 4 >> Long-Term Borrowings
Secured
Term Loans - From Banks 8,989.10 5,797.71
Term Loans - From Other Parties 535.89 1,566.66
9,524.99 7,364.37
Unsecured
Public Deposits – 1,194.60
Loans and advances from related parties (From a Director) 236.42 228.84
Other Loans and Advances 79.83 73.89
316.25 1,497.33
9,841.24 8,861.70

34 SRI CHAMUNDESWARI SUGARS LIMITED

 Notes forming part of Financial Statements
Details of terms of repayment for the Term Loans and Security provided in respect of the Secured Term Loans :-

Nature of Security Repayment Terms

From Banks The Loan is under consortium comprising of State

i) Term loan of ` 451.15 lakhs (` 1290.33 lakhs) availed by the company is Bank of Mysore, State Bank of Travancore, and IDBI
secured as under :- Ltd.
a. Pari passu first charge on the Company’s movable and immovable Repayable in 20 Quarterly installments.
assets of Sugar Division and Distillery Division situated at K.M.Doddi, Last installment falling due on April 2015.
Bharathinagara, Maddur Taluk, Mandya District, Karnataka.
Rate of Interest : 8% p.a.
b. Pari passu second charge on the current assets of Sugar Division at
K.M.Doddi, Bharathinagara, Maddur Taluk, Mandya District,
Karnataka.
c. Pledge of the 20,43,844 equity shares held by the Promoter group in
the share capital of the Company.
d. Personal Guarantee of the Managing Director and two Directors.
ii) Term Loan of ` 662.29 lakhs (` 1192.05 lakhs) availed from Allahabad Repayable in 24 Quarterly installments. Last
installment falling due on March 2016.
Bank is secured by pari passu first charge on the movable and immovable
assets pertaining to 26 MW Co-generation Power Plant at K.M.Doddi, Rate of Interest : BR + 2.25% p.a.
Bharathinagara, Maddur Taluk, Mandya District, Karnataka and Personal
Guarantee of the Managing Director and two Directors.
iii) Term loan of ` 3750.00 lakhs (` 5200.57) availed from Allahabad Bank is Repayable in 16 Quarterly installments. Last
secured by assignment of future receivables of Distillery division and is installment falling due on June 2017.
further secured by personal guarantee of Managing Director and three
Rate of Interest : BR + 4.25% p.a.
Directors. The loan is also additionally secured by a personal property of
Managing Director.
iv) Term Loan of ` 1991.00 lakhs (` Nil) is availed from IDBI Bank is secured
Repayable in 36 monthly installments. Last
by Pari Passu first charge on fixed assets of sugar & Distillery division, Installment falling due on June 2020.
Bio-compost & Bio-methanisation plant. Pari Passu first charge on Hoodi
property of the company. Rate of Interest : BR+4.75% p.a.
Pari passu third charge on entire other fixed assets (including co-gen
plant) of the company and Personal Guarantee of Shri. M. Srinivaasan.
v) Term Loan of ` 667.00 Lakhs(` Nil) is availed from Allahabad Bank is
secured by Pari Passu first charge on fixed assets of sugar & Distillery Repayable in 36 monthly installments. Last
division, Bio-compost & Bio-methanisation plant. Pari Passu first charge installment falling due on June 2020.
on Hoodi property of the company. Pari passu third charge on entire Rate of Interest : BR + 4.75% p.a.
other fixed assets (including co-gen plant) of the company.
vi) Term Loan Sanction Amount is ` 5500.00 lakhs out of which ` 4112.46
Repayable in 90 months including 6 months
Lakhs is availed. This loan is under consortium arrangement from SCDCC moratorium.
Bank Limited and BAJPE VSS Bank Limited and is secured by movable
properties on the un-encumbered portion of plant & machinery Rate of Interest : 13.50% p.a.
pertaining to the existing sugar and distillery division situated at Unit I,
K.M.Doddi.
vii) Term Loan Sanction Amount is ` 6500.00 lakhs out of which ` 325.00 Repayable in 108 months including moratorium of
Lakhs is availed under consortium arrangement from SCDCC Bank Limited 24 months
and BAJPE VSS Bank Limited. This loan is secured by movable properties Rate of Interest : 13.50% p.a.
viz plant and machinery to be acquired in respect of the sugar expansion
project situated at Hassan Dist, Karnataka on first exclusive charge basis
and movable properties including un-encumbered plant and machinery
pertaining to the existing sugar and distillery division situated at Unit I,
K.M.Doddi.

Note: The amount repayable within twelve months is `2969.79 Lakhs (`4116.49 Lakhs), grouped under Other Current Liabilities in Note No. 10
includes overdues of `198.12 lakhs.

35
42nd ANNUAL REPORT
 Notes forming part of Financial Statements

Details of terms of repayment for the Term Loans and Security provided in respect of the Secured Term Loans :-
Nature of Security Repayment Terms

From Others
i) Terms loan of ` 1585.89 Lakhs(` 1925.00 Lakhs) availed from IDFC Ltd is Repayable in 23 Quarterly installments. Last
secured by pari passu first charge on the movable and immovable assets installment falling due on December 2016.
pertaining to 26 MW Co-Generation Power Plant at K.M.Doddi, Rate of Interest : 12.54% p.a.
Bharathinagara, Maddur taluk, Mandya District, Karnataka
ii) Term loan of ` 2491.00 Lakhs (` 2515.75 Lakhs) availed from Sugar Repayable in 10 Half-yearly installments. Last
Development Fund (SDF) Govt. of India (Co-gen power project loan) is installment falling due on March 2016
secured by exclusive second charge by way of mortgage on the company’s
immovable properties of sugar factory at K.M.Doddi, Bharathi Nagara, Rate of Interest : 7.00% p.a.
Maddur Taluk, Mandya District,Karnataka
iii) Term loan of ` 323.51 Lakhs (` 323.51 Lakhs) availed from Sugar Repayable in 10 Half-yearly installments. Last
Development Fund (SDF) Govt. of India (Co-gen power project loan) is installment falling due on November 2016.
secured by exclusive second charge by way of mortgage on the company’s Rate of Interest : 7.00% p.a.
immovable properties of sugar factory at K.M.Doddi, Bharathi Nagara,
Maddur Taluk, Mandya District, Karnataka
iv) Term loan of ` 80.00 Lakhs (` 80.00 Lakhs) availed from Sugar Repayable in 4 Yearly installments. Last installment
Development Fund (SDF) Govt. of India (Modernisation of Sugar Plant) is falling due on March 2014.
secured by exclusive Second charge on the company’s immovable Rate of Interest : 7.00% p.a.
properties of Sugar Factory at K.M.Doddi, Bharathinagara, Maddur Taluk,
Mandya District, Karnataka.
v) Term loan of ` 75.00 Lakhs (` 75.00 Lakhs) availed from Sugar Repayable in 4 Yearly installments.
Development Fund (SDF) Govt. of India (Cane Development) is secured by Last installment falling due on July 2014.
exclusive Second charge on the company’s immovable properties of
Rate of Interest : 7.00% p.a.
Sugar Factory at K.M.Doddi, Bharathinagara, Maddur Taluk, Mandhya
District, Karnataka.
Note : The amount repayable with in twelve months is ` 4019.51 lakhs (` 4552.59 lakhs), grouped under other current liabilities in Note
No. 10 includes over due of ` 360.89 lakhs to IDFC and ` 2818.92 lakhs to SDF Loans.
Particulars As at As at
31.03.2015 31.03.2014
` in Lakhs ` in Lakhs
Note : 5 >> Deferred Tax Liability (Net)
Tax effect of items constituting deferred tax liability:
On account of Depreciation 2,934.36 2,985.03
On account of treatment of Goodwill 747.65 974.50
(A) 3,682.01 3,959.53
Tax effect of items constituting deferred tax asset:
Brought Forward Business Losses (B) 2,611.75 2,303.18
(A-B) 1,070.26 1,656.35
Note : 6 >> Other Long-Term Liabilities
a) Trade / Security Deposits 2,122.12 2,129.67
b) Trade Payable - Others 10.29 2.06
2,132.41 2,131.73
Note : 7 >> Long-Term Provisions
(i) Provision for Employee Benefits :-
a) Provision for Gratuity 448.30 387.92
b) Provision for other employee benefits - Leave Salary 55.95 102.87
Total Long-Term Provisions 504.25 490.79
Note : 8 >> Short-Term Borrowings
Secured
From Banks 6,057.53 4963.05
6,057.53 4963.05

36 SRI CHAMUNDESWARI SUGARS LIMITED

 Notes forming part of Financial Statements
Details of Security for the Secured Loans repayable on Demand :-

Nature of Security As at 31.03.2015 As at 31.03.2014

Particulars
` in Lakhs ` in Lakhs
Loans Repayable on Demand from Banks:-
➤ IDBI Bank:

}
● Working Capital Loan 1,552.40 1,457.39
Pari passu first charge on the current assets of
a) Sugar Unit at K.M.Doddi, Bharathinagara, Maddur Taluk,
Mandya District, Karnataka excluding receivables of
Distillery Division and
b) Sugar Unit at Srinivasapura,Hassan District, Karnataka.
This loan is further secured by third charge on the
fixed assets of Sugar unit at K.M.Doddi, Bharathinagara,
➤
Allahabad Bank: Maddur Taluk, Mandya District, Karnataka.
● Working Capital Loan 505.13 505.66

➤
The Karnataka State Co-Op Apex
Bank Ltd
● Working Capital Loan Pari passu first charge on the un-encumbered portion of
current assets in respect of sugar and distillery division
excluding receivables and book debts of sugar and distillery
division located at K.M.Doddi. 2,000.00 –
➤
The HDCC Bank Ltd:
● Working Capital Loan Pari passu first charge on the un-encumbered portion of
current assets in respect of sugar and distillery division
excluding receivables and book debts of sugar and distillery
division located at K.M.Doddi. 2,000.00 –
➤
State Bank of India
● Demand Loan Pledge of over and above the sugar stock held against
working capital facility under warehouse receipt loan with
margin of 25% – 3,000.00
6,057.53 4,963.05
As at As at
Particulars 31.03.2015 31.03.2014
` in Lakhs ` in Lakhs
Note : 9 >> Trade Payables
Dues to Trade Creditors 7,026.11 4,661.81
7,026.11 4,661.81
Note : 10 >> Other Current Liabilities
Current Maturities of Long-Term Debt :-
Secured Term Loans - From Banks 2,969.79 4,116.49
Secured Term Loans - From Other Parties 4,019.51 4,552.59
Unsecured Public Deposits 1,194.09 677.11
8,183.39 9,346.19
Interest accrued but not due on borrowings 116.44 57.60
Interest accrued and due on borrowings 747.02 570.61
Statutory remittances
(Contributions to PF, ESIC, Withholding Taxes, Excise Duty, VAT, Service Tax, etc.) 83.98 61.05
Other payables 1,085.83 842.81
Liability for Expenses 127.04 120.01
Advances from customers 551.00 85.72
Dues to Directors 55.54 57.90
10,950.24 11,141.89
Note : 11 >> Short-Term Provisions
(i) Provision for Employee Benefits :-
Employee Benefits 267.59 249.46
267.59 249.46

Total Short - Term Provisions 267.59 249.46

37
42nd ANNUAL REPORT
 38
Note : 12 >> Fixed Assets

(` in Lakhs)
<---------- G R O S S B L O C K ----------> <--------- D E P R E C I A T I O N ---------> <---- NET BLOCK ----->
Withdrawn Transferred
Sl No. Particulars As on Deletions/ As on Upto For the Upto As on As on
Additions on Account to retained
01.04.2014 Disposals 31.03.2015 01.04.2014 Year Earnings 31.03.2015 31.03.2015 31.03.2014
of Disposal Schedule-2013

TANGIBLE ASSETS
1 Free Hold Land 3,820.18 8.60 - 3,828.78 - - - - - 3,828.78 3,820.18
2 Building 5,388.16 8.27 - 5,396.43 1,405.03 139.45 - 5.87 1,550.35 3,846.08 3,983.13
3 Plant & Equipments 24,873.52 55.79 - 24,929.31 10,876.02 519.39 - 1.76 11,397.17 13,532.14 13,997.50
4 Furniture And Fittings 122.71 5.62 - 128.33 62.87 6.98 - 0.15 70.00 58.33 59.84
5 Office Equipment 192.87 3.33 0.13 196.07 31.31 35.86 - 67.17 128.90 161.56
Notes forming part of Financial Statements

6 Computer Equipment 436.52 6.40 0.43 442.49 232.32 31.61 0.39 100.40 363.94 78.55 204.20
7 Vehicles 242.69 - - 242.69 147.67 27.40 - 0.26 175.33 67.36 95.02
TOTAL A 35,076.65 88.01 0.56 35,164.10 12,755.22 760.69 0.39 108.44 13,623.96 21,540.14 22,321.43

INTANGIBLE ASSETS
8 Goodwill 6,992.01 - - 6,992.01 3,988.46 699.20 - - 4,687.66 2,304.35 3,003.55

TOTAL B 6,992.01 - - 6,992.01 3,988.46 699.20 - - 4,687.66 2,304.35 3,003.55

9 Capital Work-in-progress 631.38 481.86 - 1,113.24 - - - - - 1,113.24 631.38

TOTAL C 631.38 481.86 - 1,113.24 - - - - - 1,113.24 631.38

Currnet Year Figures (A+B+C) 42,700.04 569.87 0.56 43,269.35 16,743.68 1,459.89 0.39 108.44 18,311.62 24,957.73 25,956.36

Previous Year Figures 42,480.64 266.75 47.35 42,700.04 14,607.92 2,144.36 8.60 - 16,743.68 25,956.36 27,872.72

Land, Buildings, Plant & Machinery, Furniture & Fixtures and Motor Vehicles were revalued on 31st January 2004. The net increase in revaluation amounting to ` 10,946.78 Lakhs has been credited to Revaluation Reserve.

SRI CHAMUNDESWARI SUGARS LIMITED

 Notes forming part of Financial Statements

As at As at
Particulars 31.03.2015 31.03.2014
` in Lakhs ` in Lakhs
Note : 13 >> Non-Current Investments
Summary of Classification of Non-Current Investments :-
Investments in Equity Instruments 173.66 324.32
Investments in Government Securities - 0.01
Other Non-Current Investments 41.13 0.63
214.79 324.96

Details for Investments in Equity Instruments, Government Securities and other non-current investments:- (` in lakhs)
Name of the Number of Cost of Market Rate Market value Provision for As at As at
Sl.No Script Shares / units acquisition as on 31.03.2015 as on 31.03.2015 fall in value 31.03.2015 31.03.2014
(A) Equity Instruments :-
➤ Quoted :
1 Sakthi Sugars Limited of
` 10 each 12,45,200 321.49 13.00 161.88 (159.61) 161.88 312.54
2 Sakthi Finance Limited of
` 10 each 24,000 5.60 16.75 4.02 (3.20) 2.40 2.40
(162.81) 164.28 314.94
Unquoted :
➤
1 Sakthi Beverages Limited of
` 10 each 1,25,000 12.50 – – (3.12) 9.38 9.38
(3.12) 9.38 9.38
Total of Equity Instruments
(Quoted and Unquoted) (165.93) 173.66 324.32
(B) Government Securities :-
➤ Unquoted :
1 National Savings Certificate – – – – – – 0.01
Total of Government Securities – – 0.01
(C) Other Non-Current Investments:-
➤ Unquoted :
1 "C" Class Shares in
Sri Chamundeswari Sugar Mills
Employees Credit Co-Operative
Society Limited of ` 1000 each 50 0.50 – – – 0.50 0.50
2 "B" Grade Shares in MDCC Bank
of ` 3000 each 1 0.03 – – – 0.03 0.03
3 "F" Grade Shares in
The Karnataka State Co-operative
Apex Bank Limited 1 0.10 – – – 0.10 0.10
4 "D" class Shares in The South
Canara District Central
Cooperative Bank Limited 10 0.50 – – – 0.50 –
5 "F" class Shares in in The Hassan
District Co-ope Central Bank Ltd 200 20.00 – – – 20.00 –
6 "D" class Shares in The Karnataka
State Co-ope Apex Bank Ltd 200 20.00 – – – 20.00 –
Total of Other
Non-Current Investments – 41.13 0.63
Grand Total (165.93) 214.79 324.96
Aggregate book value of quoted investments 164.28 314.94
Aggregate market value of quoted investments 165.90 226.62
Aggregate book value of unquoted investments 50.51 10.02

39
42nd ANNUAL REPORT
 Notes forming part of Financial Statements

As at As at
Particulars 31.03.2015 31.03.2014
` in Lakhs ` in Lakhs
Note : 14 >> Long Term Loans and Advances
(Unsecured, Considered Good, unless otherwise stated)
Security Deposits 540.99 544.62
Other loans and advances 253.94 258.61
794.93 803.23
Note : 15 >> Other Non-Current Assets
(Unsecured, Considered Good, unless otherwise stated)

MAT Credit Entitlement 1,466.24 1,466.24

Subsidy and Incentive receivables 738.54 738.54
2,204.78 2,204.78
Note : 16 >> Current Investments
Summary of Classification of Current Investments :-
a) Investment in Property Development 5,438.43 3,838.43
b) Investments in Equity Instruments 18.06 18.06
5,456.49 3,856.49
Details for Investments in Property Development:-
Investment in Property development at Tuberhalli Village, Bangalore. 5,438.43 3,838.43
5,438.43 3,838.43

Details for Investments in Equity Instruments:- (` in lakhs)

Name of the Number of Cost of Market Rate Market value Provision for As at As at
Sl.No Script Shares / units acquisition as on 31.03.2015 as on 31.03.2015 fall in value 31.03.2015 31.03.2014
Equity Instruments :-
➤ Quoted :
1 IDBI Bank Limited of ` 10 each 14,240 12.87 71.05 10.12 12.87 12.87
2 Dena Bank of ` 10 each 17,300 5.19 50.80 8.79 5.19 5.19
Total of Equity Instruments 18.06 18.06

Aggregate book value of quoted investments 18.06 18.06

Aggregate market value of quoted investments 18.91 19.77
Aggregate book value of investments in property development 5,438.43 3,838.43

40 SRI CHAMUNDESWARI SUGARS LIMITED

 Notes forming part of Financial Statements

As at As at
Particulars 31.03.2015 31.03.2014
` in Lakhs ` in Lakhs
Note : 17 >> Inventories
Finished Goods / By-Products:-
Sugar 4,461.53 7,589.79
Molasses-in Sugar unit 773.65 995.86
Industrial Alcohol 410.23 246.03
Bio-Compost 81.12 56.10
Bagasse 14.84 6.43
5,741.37 8,894.21
Raw Materials :-
Sugar cane 1.12 –
Molasses - Distillery Unit 270.90 275.11
272.02 275.11
Other Stocks :-
Stores and Spares 1,342.64 1,138.47
Tools and Implements 39.54 39.74
Scrap Stock – 11.05
1,382.18 1,189.26
Stock-in-Process :-
Sugar 331.31 157.80
Molasses 27.30 35.96
358.61 193.76
Total Inventories 7,754.18 10,552.34
Note : 18 >> Trade Receivables
(Unsecured, Considered Good, unless otherwise stated)
Outstanding for a period exceeding six months from the date they were due for payment 308.59 –
Other Trade Receivables 1,077.56 804.83
1,386.15 804.83
Note : 19 >> Cash and Cash Equivalents
i) Cash on hand 33.65 19.64
ii) Balance with Banks
In Current Accounts 730.02 329.58
In Fixed Deposit Accounts 50.00 36.90
In Earmarked Accounts :
Current Account (for fixed deposits) 300.90 203.75
1,080.92 570.23
Total Cash and Cash Equivalents 1,114.57 589.87
Note : 20 >> Short Term Loans and Advances
(Unsecured, Considered Good, unless otherwise stated)
Loans and Advances to Employees 17.19 10.56
Prepaid Insurance Premium 14.51 17.83
Other Prepaid Expenses 1.54 3.04
CENVAT Credit Receivable & PLA 22.36 33.60
Service Tax Credit Receivable 6.33 0.80
Advance Income Tax and TDS 0.07 0.77
Advances recoverable in cash or in kind or for value to be received 7,156.33 4,247.37
Other Loans and Advances:
Secured, Considered Good 17.55 17.75
Unsecured, Considered Good 194.03 194.03
7,429.91 4,525.75
Note : 21 >> Other Current Assets
Income Receivable 603.54 285.02
603.54 285.02

41
42nd ANNUAL REPORT
 Notes forming part of Financial Statements

Year Ended Year Ended

Particulars 31.03.2015 31.03.2014
` in Lakhs ` in Lakhs
Note : 22 >> Revenue from Operations
(i) Sale of Products :- *
Manufactured Goods :
> Sugar 25,256.48 21,491.40
> Alcohol 5,265.93 5,657.23
> Carbon-di-oxide 12.57 14.60
> Biocompost 129.20 140.24
> Others 9.39 10.84
* [inclusive of Excise Duty, wherever applicable]
30,673.57 27,314.31
(ii) Sale of Power 4,545.67 3,634.45
4,545.67 3,634.45
(iii) Other Operating Revenues
Property Development 1,600.00 –
Sale of scrap 12.24 12.01
1,612.24 12.01
(iv) Less : Excise Duty 863.52 724.01

Total Revenue from Operations [(i), (ii) and (iii) as reduced by (iv)] 35,967.96 30,236.76

Note : 23 >> Other Income

Interest Income:
Interest on Deposits with Banks 7.62 19.31
Interest on Loans and Advances 4.06 8.97
Dividend income from current and non-current investments (From Indian Companies) 0.58 4.63
Other non-operating income (net of expenses directly attributable to such income):
Rental income from operating leases 3.60 5.93
Miscellaneous income 1.40 0.50
17.26 39.34
Note : 24 >> Cost of Raw Materials Consumed
Opening stock of Raw Materials 275.12 409.74
Add : Purchases during the year 21,405.02 18,596.36
Add : Purchase Tax & Procurement Expenses 939.82 716.82
22,619.96 19,722.92
Less :Closing stock of Raw Materials 272.02 275.11
Total Cost of Raw Materials Consumed 22,347.94 19,447.81

Note : 25 >> Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade

(i) Inventories at the end of the year :-
a) Finished goods 5,741.37 8,894.21
b) Work-in-progress 358.61 193.76
A 6,099.98 9,087.97
(ii) Inventories at the beginning of the year :-
a) Finished goods 8,894.21 8,219.95
b) Work-in-progress 193.76 369.45
B 9,087.97 8,589.40
(iii) Net (Increase)/Decrease (B-A) 2,988.00 (498.57)

Note : 26 >> Employee Benefit Expenses

a) Salaries and wages 2,498.68 2,418.98
b) Contributions to Provident and Other Funds 191.95 158.88
c) Staff Welfare Expenses 140.90 108.74
2,831.53 2,686.60

42 SRI CHAMUNDESWARI SUGARS LIMITED

 Notes forming part of Financial Statements

Year Ended Year Ended

Particulars 31.03.2015 31.03.2014
` in Lakhs ` in Lakhs
Note : 27 >> Finance Costs
Interest Expenses 3,070.24 3,076.05
3,070.24 3,076.05
Note : 28 >> Depreciation and Amortisation Expenses
Depreciation 760.69 1,445.16
Less: Transferred to Revaluation Reserve 199.98 325.01
560.71 1,120.15
Add: Amortisation Expenses 699.20 699.20
1,259.91 1,819.35
Note : 29 >> Other Expenses
Manufacturing Expenses:
Consumption of stores & packing materials 725.41 761.05
Power and fuel 2,338.52 2,517.51
Water 1.63 1.91
Rent including lease rentals 399.96 390.57
Repairs and maintenance - Buildings 52.22 42.49
Repairs and maintenance - Machinery 752.72 625.43
Repairs and maintenance - Others 328.76 314.32
Insurance 30.78 34.19
Rates and taxes 247.65 71.94
Effluent Treatment Expenses 5.06 6.69
Material handling and Other manufacturing expenses 64.82 74.80
Selling and Distribution Expenses :-
Freight and forwarding 16.70 28.43
Rebates & Discounts 88.81 66.59
Business Promotion 33.96 25.30
Administrative Expenses :-
Communication 43.95 35.63
Travelling and conveyance 59.97 60.51
Printing and Stationery 19.83 18.31
Books & Periodicals and Subscriptions 17.42 22.29
Bank Charges 5.84 2.28
Directors Sitting Fees 4.75 1.86
Donations and Contributions - 36.20
Legal and Professional 38.89 52.19
Payments to Statutory Auditors :-
> As auditors - Statutory Audit 11.24 10.87
>For Taxation Matters - 1.12
For Tax Audit 1.12 1.12
> For Management Services – 2.33
> For Certifications & representations 5.39 2.25
Bad trade and other receivables, loans and advances written off – 2.17
Recognition of diminution in value of long term investments 150.66 –
Increase / (decrease) of excise duty on inventory (91.81) 31.13
Loss on fixed assets sold / scrapped / written off 0.17 3.17
Managerial Remuneration 30.73 26.49
Miscellaneous expenses 59.53 76.08
5,444.68 5,347.22

43
42nd ANNUAL REPORT
 Notes forming part of Financial Statements

Note : 30 >> Related Parties Disclosure: Disclosure report under Accounting Standard-15 (Revised): (` in Lakhs)
I. Related Parties: ACTUARIAL VALUATION OF GRATUITY LIABILITY 31.03.2015 31.03.2014
A. Key Managerial Personnel I. Principal Actuarial Assumptions
Shri M.Srinivaasan, Managing Director (Expressed as weighted average)
Discount Rate 8.00% 8.25%
B. Relatives of Key Managerial Personnel Salary escalation rate 5% 5%
Dr. M. Manickam Attrition rate - -
Shri. M. Balasubramaniam Expected rate of return on Plan Assets (p.a) 9% 9%
C. Enterprises Where Control Exist II. Changes in the Present Value of the Obligation (PVO) -
Sakthi Sugars Limited Reconciliation of Opening and Closing Balances
D. Enterprises in Which Key Managerial Personnel/Relatives of PVO as at the beginning of the period 588.88 598.01
Key Managerial Personnel have Significant Influence # Interest Cost 49.88 53.41
N. Mahalingam & Company Current Service Cost 38.29 27.67
Nachimuthu Industrial Association Past Service cost-(non vested benefits) - -
Note: # Information has been furnished with respect to individuals / entities Past service cost-(vested benefits) - -
with whom related party transactions had taken place during the year. Benefits paid (60.01) (123.88)
II. Related Party Transactions (` in Lakhs) Actuarial loss/ ( gain) on obligation
(balancing figure) 41.14 33.67
Enterprises
Key Total for PVO as at the end of the period 658.17 588.88
where control/
Particulars Managerial significant the year III. Changes in the Fair Value of Plan Assets -
Personnel influence exists 2014-15 Reconciliation of Opening and Closing Balances
Fair value of plan assets as at the
Remuneration to 28.48 28.48
beginning of the period 1.46 1.46
Managing Director (17.49) - (17.49)
Expected return on plan assets 0.12 0.13
Purchase of materials / 12.80 12.80 Contributions 60.01 123.88
Availing of services (13.19) (13.19) Benefits paid (60.01) (123.88)
Note : 31 >> Particulars of Commission, Remuneration and Actuarial gain/ (loss) on plan assets
(balancing figure) (0.12) (0.13)
Perquisites to Managerial personnel: (` in Lakhs) Fair value of plan assets as at the
Managing Director Executive Director end of the period 1.46 1.46
Description
31.03.2015 31.03.2014 31.03.2015* 31.03.2014 IV. Actual Return on Plan Assets
Expected return on plan assets 0.12 0.13
Salary 18.00 10.26 2.00 8.04
Actuarial gain/(loss) on plan assets (0.13) (0.13)
Contribution Actual return on plan assets – –
to Provident 2.16 1.23 0.24 0.96
V. Actual Gain / Loss Recognized
Fund
Actuarial gain/(loss) for the period-Obligation (41.14) (33.67)
Contribution to
Actuarial gain/(loss) for the period-Plan Assets (0.12) (0.13)
Superannuation 2.70 1.54 - -
Total gain/(loss) for the period (41.26) (33.80)
Fund
Actuarial gain /(loss) recognized in the period (41.26) (33.80)
Gratuity 0.75 0.43 - - Unrecognized actuarial (gain)/ loss at the end
of the year – –
Perks 4.88 4.03 - - VI. Amounts recognised in the Balance Sheet and Related Analysis
Present value of the obligation 658.17 588.88
Commission - - - - Fair value of plan assets 1.46 1.46
Liability recognized in the balance sheet 656.71 587.42
Total: 28.49 17.49 2.24 9.00
VII.Expenses recognised in the Statement of Profit and Loss
(* Salary paid from 01.04.2014 and 30.06.2014) Current service cost 38.29 27.67
Interest Cost 49.88 53.41
Note : 32>> The company has not received information from Expected return on plan assets (0.12) (0.13)
vendors regarding their status under The Micro, Small & Net actuarial (gain)/loss recognised in the year 41.26 33.80
Medium Enterprises Development Act, 2006 and hence Expenses recognized 129.31 114.75
disclosures relating to their outstanding amount and VIII. Movements in the Liability recognized in the Balance Sheet
interest have not been made. Opening net liability 587.42 596.55
Note : 33>> Employee Benefits Expenses as above 129.31 114.75
Gratuity and Provident Fund: Contribution paid 60.01 123.88
Closing net liability 656.72 587.42
Gratuity, Provident Fund and Employees State
IX. Amount for the Current Period
Insurance are defined Contribution Plans. The expenses
recognised in the Statement of Profit and Loss are :- Present value of obligation 658.17 588.88
Plan Assets 1.46 1.46
Surplus(Deficit) (656.72) (587.42)
Particulars 31.03.2015 31.03.2014 X. Major Categories of Plan Assets
Gratuity 129.31 114.75 As Percentage Of Gain / (Loss) on Total
Provident Fund 168.63 149.11 Plan Assets (7.98%) (8.90%)
Employees State Insurance 2.39 1.34

44 SRI CHAMUNDESWARI SUGARS LIMITED

 Notes forming part of Financial Statements

Note : 34 >> Earnings per Share: ( ` in Lakhs) A1. Raw materials purchased broad categories
2014-2015 2013-2014 31.03.2015 31.03.2014
a) Profit After Tax (1370.98) (1082.47) Amount Amount
(` in Lakhs) (` in Lakhs)
b) Less: Preference Dividend 73.50 73.50
c) Total (1297.48) (1155.97) Cane 20622.78 17491.86

d) The weighted average no of Molasses 782.24 1105.50

Equity Shares 2,44,54,328 2,44,54,328
Total 21405.02 18596.36
e) The nominal value per
Equity Share (`) 10 10
A2. Value of Raw materials consumed and % to total consumption.
f) Earnings per Share - Basic (`) (5.91) (4.73)
31.03.2015 31.03.2014
g) Earnings per Share - Diluted (`) (5.91) (4.73)
Amount Amount
Note : 35 >> Disclosure as required under clause 32 of the listing % %
(` in Lakhs) (` in Lakhs)
agreement: There are no amount of loans/advances in
the nature of loans outstanding from Subsidiaries and Indigenous 22347.94 100.00 19447.81 100.00
Associates . Imported – – – –
Note : 36 >> Disclosure pursuant to AS-28 on 'Impairment of Assets':
During the year, review has been done for carrying value Total 22347.94 100.00 19447.81 100.00
of the assets for finding out the impairment, if any. The
review has not revealed any impairment of assets in B1. Value of Stores, spares and tools consumed and % of each to total
terms of AS-28. consumption:

Note : 37 >> Contingent Liability & Litigations 31.03.2015 31.03.2014

1. For the FY.2005-06 to FY.2012-13, there is a demand Amount Amount
% %
of ` 2022.88 Lakhs from The Commissioner of (` in Lakhs) (` in Lakhs)
Central Excise, Customs and Service Tax, Mysore as Indigenous 725.40 100.00 761.05 100.00
demand of taxes on captive consumption of
molasses without payment of duty. The company Imported – – – –
had appealed to the Customs, Excise & Service Tax
Total 725.40 100.00 761.05 100.00
Appellate Tribunal and has got a stay on the
recovery proceedings.
2. The sugarcane price for crushing season 2013-14 B2. Value of coal consumed and % of each to total consumption:
notified by the State Government over and above 31.03.2015 31.03.2014
FRP announced by the Central Government Amount
Amount
amounting to ` 2442.51 lakhs is disputed. The (` in Lakhs)
%
(` in Lakhs)
%
matter is being taken up before Supreme Court.
The management believes that the ultimate Indigenous 2121.64 100.00 1397.54 65.51
outcome will not have any material adverse effect Imported – – 735.64 34.49
on the Company's financial position and results of
operations. Total 2121.64 100.00 2133.18 100.00
3. Other information:
A. Arrears of cumulative dividend on Preference C. Expenditure in Foreign Currency
Shares ` 674.18 lakhs (Previous year - ` 600.68 Travelling Expenses - ` Nil (` 6.63 lakhs)
lakhs) D. Earnings in Foreign Currency: (` in Lakhs)
B. Estimated amount of contracts remaining to be
executed on Capital Account and not provided for is 31.03.2015 31.03.2014
` Nil (Previous year ` Nil)
F.O.B Value of Exports 29.38 Nil
Note : 38 >> Additional Information
E. CIF Value of imports: (` in Lakhs)
Licensed Capacity Installed Capacity
Product Units Capital Goods Nil Nil
31.03.2015 31.03.2014 31.03.2015 31.03.2014
Others - Coal Nil Nil
# Tonnes
of Cane
1. Sugar Crushed 5250 5250 5250 5250
per day

2. Industrial Kilo Litre 50 50 50 50

Alcohol Per Day

3. Power KWH 26 MW 26MW 26 MW 26MW

Note :# Bharathinagara Unit : 4000 TCD and

Srinivasapura Unit : 1250 TCD of Sugarcane Crushing.

45
42nd ANNUAL REPORT
 Notes forming part of Financial Statements

Note : 39 >> Segment Information for the Year Ended 31st March 2015
PROPERTY
PARTICULARS SUGAR DISTILLERY COGEN TOTAL
DEVELOPMENT
Primary
Segment Revenue 28295.96 5407.70 8277.35 1600 43581.01
(25157.36) (5812.89) (7716.78) (Nil) (38687.03)
Inter Segment revenue 7613.05
(8450.27)
Total 35967.96
(30236.76)
Segment Results -5518.55 1643.40 3372.46 1600 1097.31
(-2188.06) (1409.28) (2213.62) (Nil) (1434.84)
Add: Unallocated income 15.86
(38.85)
Operating Profit 1113.17
(1473.69)
Less: Interest Expenses 3070.24
(3076.05)
Profit before Tax -1957.08
(-1602.36)
Prior Year Adjustments Nil
(Nil)
Direct Tax- Prior Year Nil
(Nil)
Deferred Tax -586.09
(-519.89)
Profit after Tax -1370.98
(-1082.47)
Segment Assets 33076.89 2444.82 10724.07 5438.43 51684.21
(30964.43) (2826.65) (10239.15) (3838.43) (47868.66)
Segment Liabilities 11146.56 Nil 522.97 11669.53
(5291.06) (507.22) (1050.17) (6848.45)
Capital Expenditure 531.37 38.45 0.05 569.87
(227.24) (3.92) (Nil) (231.16)
Depreciation / Amortisation 909.79 79.57 270.55 1259.91
(1007.04) (140.69) (671.62) (1819.35)
Non Cash expenses other 699.20 Nil Nil Nil 699.20
than Depreciation (699.20) (Nil) (Nil) (Nil) (699.20)
Secondary
Revenue by Geographical Market
India 28266.58 5407.70 8277.35 1600 43551.63
(25157.36) (5812.89) (7716.78) (Nil) (38687.03)
Outside India 29.38 Nil Nil Nil 29.38
(Nil) (Nil) (Nil) (Nil) (Nil)
(Figures in Brackets indicate previous year)
Note : 40 >> The company is opted to recognize Foreign Exchange Fluctuation based on Maturity of obligation in confirmity with Ministry of Corporate
Affairs Notification No.GSR.913(E) dated 29.12.2011.
Note : 41 >> Previous year's figure have been regrouped or reclassified to conform to this year's grouping or classification.
Per our Report Annexed
For P.N.Raghavendra Rao & Co.,
Chartered Accountants M Srinivaasan V K Swaminathan J U Srinivasan
Firm Registration No. : 003328S Managing Director Director Chief Financial Officer
P R Vittel
Partner
Membership No.: 018111 M. Rajendraprasath
Company Secretary
Date : 30.05.2015
46 Place : Coimbatore
SRI CHAMUNDESWARI SUGARS LIMITED
 Cash Flow Statement

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2015
Year Ended 31st March 2015 Year Ended 31st March 2014
Particulars
` in Lakhs ` in Lakhs
A. Cash Flow from Operating Activities
Net Profit before extraordinary items and tax (1,957.08) (1,602.36)
Adjustments for
Add:
Depreciation and Amortisation 1,259.91 1,819.35
Finance Cost 3,070.24 3,076.05
Adjustment to the carrying amount of investments – –
Net Exchange Loss – 4,330.15 – 4,895.40
Less:
Interest Income 11.68 28.28
Dividend Income 0.58 4.63
Net Profit / (Loss) on Sale of Assets (0.17) (3.17)
Rental Income 3.60 5.93
Liabilities no longer required - Written Back – 15.69 – 35.67
Operating Profit before Working Capital changes 2,357.38 3,257.37
Changes in Working Capital
Adjustments for (increase) / decrease in Operating Assets
Inventories 2,798.16 (182.03)
Trade Receivables (581.32) 49.99
Short Term Loans and Advances (2,904.17) 817.45
Long Term Loans and Advances 8.30 7.69
Other Current Assets (318.52) (94.13)
Other Non-Current Assets – (997.55) (2.83) 596.14
Adjustments for increase / (decrease) in Operating Liabilities
Trade Payables 2,364.30 (2,022.82)
Other Current Liabilities 794.75 (274.03)
Other Long Term Liabilities 0.68 11.72
Short Term Provisions 18.13 122.06
Long Term Provisions 13.46 3,191.32 (136.26) (2,299.33)
Cash generated from Operations 4,551.15 1,554.18
Income Tax Paid – (44.98)
Net Cash Flow from / (used in) Operating Activities 4,551.15 1,509.20
B. Cash Flow from Investing Activities
Purchase of Fixed Assets (569.88) (231.16)
Sale of Fixed Assets – –
Sale / proceeds of Investments (1,489.83) 20.00
Purchase of Investments – –
Interest Income 11.68 28.28
Dividend Income 0.58 4.63
Rental Income 3.60 5.93
Net Cash Flow from / (used in) Investing Activities (2,043.85) (172.32)
C. Cash Flow from Financing Activities
Proceeds / (Repayments) from Long Term Borrowings (Net) (183.26) 2,001.34
Proceeds / (Repayments) from Short Term Borrowings (Net) 1,094.48 (297.90)
Finance Cost (2,893.82) (2,779.89)
Net Cash Flow from / (used in) Financing Activities (1,982.60) (1,076.45)
Net Increase / (Decrease) in Cash and Cash Equivalent 524.70 260.43
Opening Balance - Cash and Cash Equivalent 589.87 329.44
Closing Balance - Cash and Cash Equivalent 1,114.57 589.87

Per our Report Annexed

For P.N.Raghavendra Rao & Co.,
Chartered Accountants M Srinivaasan V K Swaminathan J U Srinivasan
Firm Registration No. : 003328S
Managing Director Director Chief Financial Officer
P R Vittel
Partner
Membership No.: 018111
M. Rajendraprasath
Date : 30.05.2015
Company Secretary
Place : Coimbatore
47
42nd ANNUAL REPORT
 Performance Report

PERFORMANCE REPORT
Sugar Sugar
TCD Cane Crushed
Financial Year Produced Recovery
No. of location In Tonnes
In Quintals Percentage
1973-74 1250 145470 127843 9.16
1974-75 1250 149983 148960 9.87
1975-76 1250 175364 166132 9.44
1977-78 16 Months 1250 434003 414783 9.57
1978-79 1250 359080 338513 9.78
1979-80 1250 106379 95651 9.57
1980-81 1250 150899 134340 8.73
1981-82 1250 428130 430859 10.08
1982-83 17 Months 1250 530800 492259 9.37
1983-84 2500 292350 289160 9.70
1984-85 2500 287246 318700 11.10
1985-86 2500 385051 411500 10.70
1986-87 2500 460770 482000 10.45
1987-89 18 Months 2500 888698 909480 10.25
1989-90 2500 502780 504374 10.06
1990-91 3500 572433 530405 9.31
1991-92 4000 589394 567595 9.63
1992-93 4000 796737 748798 9.37
1993-94 4000 445892 427322 9.43
1994-95 4000 812342 752762 9.41
1995-96 18 Months 4000 908314 686631 7.47
1996-97 4000 345639 276389 7.94
1997-99 18 Months 4000 1050758 1013965 9.74
1999-2000 4000 730046 731533 9.98
2000-2001 4000 806215 803860 10.03
2001-2002 4000 991094 950040 9.61
2002-2003 4000 676590 648874 9.64
2003-2004 4000 690294 611715 8.78
2004-2005 4000 290358 281540 8.83
2005-2006 4000 634041 588528 9.28
2006-2007 4000 920024 863529 9.43
2007-2008 Unit I - 4000 863069 762037 8.92
Unit II- 1250 134620 133750 9.76
2008-2009 Unit I - 4000 558139 474586 8.47
Unit II- 1250 146563 122400 8.28
2009-2010 Unit I - 4000 444562 417119 8.76
Unit II- 1250 152081 142320 9.41
2010-2011 Unit I - 4000 793911 734913 9.26
Unit II- 1250 259495 248610 9.62
2011-2012 Unit I - 4000 805332 702003 8.71
Unit II- 1250 268005 259530 9.72
2012-2013 Unit I - 4000 895605 795241 8.82
Unit II- 1250 214805 203730 9.52
2013-2014 Unit I - 4000 618190 573867 9.21
Unit II- 1250 212384 205620 9.61
2014-2015 Unit I - 4000 652720 605247 9.39
Unit II- 1250 214890 200040 9.33

48 SRI CHAMUNDESWARI SUGARS LIMITED