PDF

SANSCO SERVICES - Annual Reports Library Services - www.sansco.
net
Sakthi Sugars Limited
SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

Registered Office
Sakthi Nagar-638 315
Erode District, Tamil Nadu.
Board of Directors
Dr. N. MAHALINGAM
Chairman
Head Office
180, Race Course Road
Coimbatore - 641 018, Tamil Nadu.
Sugar Division
Unit I
Sakthi Nagar - 638 315
Unit II
Padamathur, Sivaganga Tk - 630 561

Sivaganga District, Tamil Nadu.
Unit III
Sunapal, Barambagarh - 754 031

Cuttack District, Orissa.
Unit IV
Haripur Village, Korian Post - 759 013

Dhenkanal District, Orissa.
Distillery Division
(i)
(ii) Haripur Village, Korian Post - 759 013
Dhenkanal District, Orissa.
Soya Division
Marchinaickenpalayam
Ambarampalayam Post - 642 103
Coimbatore District, Tamil Nadu.
Main Bankers
Canara Bank
Punjab National Bank
Indian Overseas Bank
The Karur Vysya Bank Ltd.
The Lakshmi Vilas Bank Ltd.
The South Indian Bank Ltd.
State Bank of Travancore
Citibank N.A.
. State Bank of Mauritius Ltd.
State Bank of India
The Orissa State Co-operative Bank Ltd.
ICICI Bank Ltd.
Sri M. MANICKAM
Vice Chairman & Managing Director
Sri K.K. RAMASWAMY GOUNDER

Sri D. PERIYASAMY
Sri P.K. CHANDRAN
Sri G.G. GURUMURTHY
Sri S.S. MUTHUVELAPPAN
Sri KARU SEEMAICHAMY
Sri M. BALASUBRAMANIAM
Sri N.K. VIJAYAN
Sri M. SRINIVAASAN
Sri V.K. SWAMINATHAN
Sri C. RANGAMANI (Nominee of GICI)
Sri T. PRAKASH (Nominee of IDBI)
Sri S. SARAVANAN (Nominee of TIDCO )
Sri M. PANDI (Nominee of I1BI)
Smt SMITA GUNE (Nominee of ICICI)
Company Secretary
Sri S. BASKAR
Auditors
M/s. P.N. RAGHAVENDRA RAO & CO.
Coimbatore
CONTENTS
Notice to Shareholders
Re-appointment of Directors
Report of the Directors
Corporate Governance
Management's Analytical Report
Auditors' Report
Balance Sheet
Profit & Loss Account
Schedules
Accounting Policies
Segment Information
Related Parties Disclosure
Statement pursuant to Section 212
of the Companies Act, 1956
Cash Flow Statement
Accounts of Subsidiary
Consolidated Financial Statements
Page No.
3
7
8
13
19
20
22
24
26
36
50
51
52
54
56
73

NOTICE TO SHAREHOLDERS
Notice is hereby given that the 42nd Annual General
Meeting of the Company will be held at its Registered
Office at Sakthi Nagar - 638 315, Bhavani Taluk,
Erode District, Tamil Nadu, on Thursday, 18th
December 2003 at 3.00 P.M. to transact the following
business:
1. To consider and adopt the Directors' Report and
the audited Profit & Loss Account for the year
ended 30th June 2003 and the audited Balance
Sheet as at that date and the Auditors' Report
thereon.
2. To appoint a Director in the place of
Sri M Balasubramaniam, who retires by rotation
and is eligible for re-appointment.
Sri D Periyasamy, who retires by rotation and is
eligible for re-appointment.
Sri P K Chandran, who retires by rotation and is
Sri M Srinivaasan, who retires by rotation and is
6. To appoint M/s P N Raghavendra Rao & Co.,
Chartered Accountants, as Auditors of the
Company for holding office upto the conclusion
of the next Annual General Meeting and to fix
their remuneration.
SPECIAL BUSINESS:
7. To consider and, if thought fit, to pass, with or
without modification, the following resolution as
an Ordinary Resolution:
RESOLVED that subject to the approval of the
Central Government and financial institutions as
may be required, pursuant to the provisions of
Sections 198, 269 and 309 and other applicable
provisions, if any, of the Companies Act, 1956,
approval be and is hereby accorded for the reappointment of Sri M Manickam as Managing
Director of the Company for a period of 5 years
from 9.9.2003 and for payment of the following
remuneration and for providing the following
perquisites to him.
I. SALARY
Rs. 50,000 per month (Rupees fifty thousand only)
II. PERQUISITES
Not exceeding Rs. 37,5007- (Rupees Thirty seven
thousand five hundred) only per month.
In addition to the above perquisites, Sri

M Manickam, Vice Chairman & Managing
Director, shall also be entitled to the following
perquisites which shall not be included in the
computation of the ceiling on perquisites referred
above.
(A) Contribution to Provident Fund and
Superannuation Fund or annuity fund to the
extent not taxable under the Income Tax Act.
(B) Gratuity at the rate of half a month's salary
for each completed year of service.
(C) Encashment of leave at the end of tenure as
per the Rules of the company.
The above salary and perquisites be paid as
minimum remuneration even in the event of loss
or inadequacy of profits in any year.
III. COMMISSION
1% Commission on the net profits of the Company,
subject to the maximum ceiling specified in Section
309(3) of the Companies Act, 1956.
8. To consider and, if thought fit, to pass with or
without modification, the following resolutions
as Special Resolutions:
A. RESOLVED that the consent of the Company
be and is hereby accorded to the Board of
Directors under the provisions of Section 293(l)(a)
of the Companies Act, 1956:
(i) to mortgage and / or charge the Co-generation
plant of the Company situate at Sakthi Nagar
including all the immovable and movable
properties of that plant wheresoever situate,
present and future, and/or for conferring power
to enter upon and take possession of the
aforesaid assets of the Company in certain
events to or in favour of Financial Institutions/
Banks/Bodies Corporate/Insurance Companies
and/or any other institution/s to secure the
financial assistance to an extent of Rs. 100
crores to be availed from them; and
(ii) to authorise the Board of Directors of the
Company for agreeing with the Financial
Institutions/B anks/Bodies Corporate/Insurance
Companies and/or any other institution/s the
terms and conditions to reserve a right to take
over the management of the Co-generation
in certain events in terms of their respective
agreements/letters of sanction/terms and
conditions in connection with the creation of
security and other incidental matters.
B. RESOLVED FURTHER that the Board of

Directors of the Company be and'is hereby
authorised to finalise with the Financial
Institutions/Banks/Bodies Corporate/Insurance
Companies and/or any other institution/s the
documents for creating the aforesaid mortgage /
charge and/or for conferring the aforesaid rights
and to do all such acts and things as may be
necessary for giving effect to the above resolution.
(i) to mortgage and / or charge the Co-generation
including all the immovable and movable
properties of that plant wheresoever situate,
present and future, and/or for conferring power
to enter upon and take possession of the
aforesaid assets of the Company in certain
events to or in favour of Global Trust Bank
Limited to secure the financial assistance to an
extent of Rs. 17 crores availed from them; arid
Company for agreeing with Global Trust Bank
Limited the terms and conditions to reserve a
right to take over the management of the Cogeneration plant of the Company situate at
Sakthi Nagar in certain events in terms of
their agreements/letter of sanction/terms and
conditions in connection with the creation of
security and other incidental matters.
B. RESOLVED FURTHER that the. Board of
Directors of the Company be and is hereby
authorised to finalise with Global Trust Bank
Limited the documents for creating the aforesaid
mortgage / charge and/or for conferring the
aforesaid rights and to do all such acts and things
as may be necessary for giving effect to the above
resolution.
(i) to mortgage and / or charge the assets of the

Beverage Division of the Company including
all the immovable and movable properties of
that division wheresoever situate, present and
future, and/or for conferring power to enter
upon and take possession of the assets of the
Company in certain events to or in favour of
Citibank N.A., to secure the financial
assistance to an extent of Rs.12 crores availed
from them; and
Company for agreeing with Citibank N.A.,
the terms and conditions to reserve a right to
take over the management of the Beverage
Division of the Company in certain events in
terms of their agreements/letter of sanction/
terms and conditions in connection with the
creation of security and other incidental
matters.
B. RESOLVED FURTHER that the Board of
Directors of the Company be and is hereby
authorised to finalise with Citibank N.A., the
documents for creating the aforesaid mortgage /
charge and/or for conferring the aforesaid rights
and to do all such acts and things as may be
necessary for giving effect to the above resolution.
Special Resolution:
RESOLVED that pursuant to Section 293(1 )(d)
of the Companies Act, 1956, consent be and is
hereby accorded to the Board of Directors of the
Company to borrow for the purpose of the
Company, a sum or sums of money (apart from
temporary loans obtained and/or to be obtained
from the Company's bankers in the ordinary
course of business) not exceeding Rs. 750 crores
(Rupees seven hundred and fifty crores) only over
and above the paid-up capital of the Company
and its free reserves, that is to say, reserves not
set apart for any specific purpose.
an Ordinary Resolution:
RESOLVED that pursuant to the provisions of
Section 293(l)(e) of the Companies Act, 1956,
the Board of Directors of the Company be and is
hereby authorised to donate and contribute a sum
or sums not exceeding in the aggregate of Rs. 20
lakhs (Rupees twenty lakhs) only from out 'of the
funds of the Company for deserving causes and

institutions during the financial year ending 30th
June 2004.
Special Resolution:
RESOLVED that the approval of the Company
be and is hereby accorded for delisting the shares
of the Company from Madras Stock Exchange
Limited and Bangalore Stock Exchange Limited
without giving an exit option to the shareholders
of the regions where the aforesaid Stock
Exchanges are situated, in accordance with
Securities and Exchange Board of India (Delisting
of Securities) Guidelines, 2003 and other relevant
laws, rules, regulations and guidelines (including
any statutory modifications or enactments thereof
for the time being in force and as may be enacted
hereafter), subject to such other approvals,
permissions and sanctions as may be necessary,
and that the Board of Directors of the Company
(whether acting through the Board, a Committee
of the Board or any Director or any person
authorized by the Board) be and is hereby
authorized to do all necessary acts and deeds in
this regard.
By Order of the Board
Coimbatore
S. BASKAR
30th September 2003
Company Secretary
NOTE:
1. A Member entitled to attend and vote at the Annual
General meeting is entitled to appoint a proxy. A
Proxy need not be a Member of the Company.
2. The explanatory statement pursuant to Section 173

of the Companies Act, 1956 in respect of the
Special Business under item Nos. 7 to 13 is
enclosed.
3. The Register of Members and the Share Transfer
Books of the Company will remain closed from
10.12.2003 to 18.12.2003 (both days inclusive).
4. The Company had transferred all unclaimed
dividend declared upto financial year ended
31.3.1994 to the General Revenue Account of the
Central Government as required by the Companies
Unpaid Dividend (Transfer to the General Revenue
Account of the Central Government) Rules, 1978.
Those Shareholders who have so far not claimed
or collected their dividend upto the aforesaid
financial year may claim their dividend from the
Registrar of Companies, Stock Exchange Building,
Trichy Road, Singanallur, Coimbatore 641 005.
5. Pursuant to the provisions of Section 205A(5) of
the Companies Act, 1956, dividend, which remains
unclaimed for a period of seven years from the
date of transfer to the Unpaid Dividend Account
will be transferred to Investors Education and
Protection Fund established under Section 205C
of the Companies Act, 1956 and upon such transfer,
no claim shall lie against the company or the
Central Government for such unclaimed dividend.
Shareholders who have not so far encashed
dividend warrants for the financial year ended
31.3.1997 are requested to make their claim to the
Company immediately.
EXPLANATORY STATEMENT UNDER SECTION 173 OF THE COMPANIES ACT, 1956

Item No.7
The term of office of Sri M Manickam as Managing
Director of the Company expired on 8th September
2003. Considering his contribution to the growth of
the Company during his period of office, the Board of
Directors have, subject to the approval of the Central
Government, Members at the General Meeting and of
the Financial Institutions as may be required, reappointed Sri M Manickam as Managing Director for
2 further period of five years from 9th September 2003.
The necessary resolution is placed before the members
for their approval.
Sri M Manickam may be deemed to be concerned
or interested in the above resolution as it
relates to his re-appointment and remuneration.
Dr. N Mahalingam, Chairman, Sri M Balasubramaniam

and Sri M Srinivaasan, Directors are interested as his
relatives.
Item No.8
The Company proposes to avail term loan of about
Rs.100 crores from Financial Institutions/Banks/
Insurance Companies and other Bodies Corporates for
the purpose of meeting its working capital requirements
against security among others, by way of first charge
on the assets of the co-generation plant, pursuant to
the terms of restructure package approved by CDR
Empowered Group. The necessary resolutions are
placed for approval of the Members.
None of the Directors is concerned or interested in the
said resolution.
Item No.9
For the purpose of financing the Co-generation project,
the Company has availed a term loan of Rs.17 crores
from Global Trust Bank Ltd against security, among
others, by way of first charge on the assets of Cogeneration plant. As per Section 293(1) (a) of the
Companies Act, 1956, Members' approval is required
to the Board of Directors to mortgage or charge the
aforesaid assets of the Company. The necessary
resolutions are placed for the approval of the Members.
said resolution.
Item No.10
The Company has availed a term loan of Rs.12 crores
from Citibank N.A., for the purpose of financing the
beverage plant, against security, among others, by way
of first charge on the fixed assets of the Beverage
Division of the Company. As per Section 293(1) (a) of
the Companies Act, 1956, Members' approval is required
to the Board of Directors to mortgage or charge the
aforesaid assets of the Company. The necessary
resolutions are placed for the approval of the Members.
said resolution.
Item No.ll
At the Annual General Meeting held on 20th September
1995, the Members had authorised the Board of
Directors to borrow monies for the purpose of the
Company not exceeding Rs.500 crores over and above
the paid-up capital and free reserves of the Company.
To enable the Board of Directors to borrow additional
funds for financing the capital expenditure incurred/to
be incurred in connection with co-generation, beverage
and ethanol projects, and to meet the requirements of
additional working capital, the borrowing powers given
to the Board of Directors have to be increased.
Necessary resolution is placed before the Members
for approval authorising the Board of Directors to
borrow upto Rs.750 crores (Rupees seven hundred
and fifty crores) only over and above the paid up
capital and free reserves of the Company.
said resolution.
Item No.12
To meet certain charitable and social obligations, it is
proposed to authorize the Board of Directors to make
donations upto Rs.20 lakhs (Rupees twenty lakhs) only
for the year ending 30th June 2004 subject to the
approval of the Members.
said resolution.
Item No. 13
At present the Company's shares are listed with
Coimbatore Stock Exchange Limited (Regional
Exchange), Madras Stock Exchange Limited (MSB),
Bangalore Stock Exchange Limited (BgSE), The Stock
Exchange, Mumbai (BSE), and The National Stock
Exchange of India Limited (NSE). The Securities and
Exchange Board of India (Delisting of Securities)
Guidelines, 2003 permits a company to voluntarily
delist its securities, without offering an exit option to
its shareholders in cases where its shares continue to
be listed on Stock Exchanges having nationwide
trading terminals. The Company's shares are listed on
BSE and NSE. As the trading volume in MSB and
BgSE are nil or insignificant compared to the total
volume of Company's shares traded in BSE and NSE,
it is proposed to delist the shares from MSB and BgSE.
Securities and Exchange Board of India (SEBI) has
specified for settlement of the Company's equity shares
only in dematerialised form. Further as the'shares of
the Company are traded through online terminals
provided by BSE arid NSE throughout India, delisting
of shares from MSB and BgSE will not have any
adverse effect on the investors. Hence as a matter of
cost reduction measure and in line with SEBI
guidelines for voluntary delisting of shares, the
Company has proposed to delist its shares from the
said two stock exchanges. The necessary special
resolution is placed for the approval of the Members.
said resolution.
Coimbatore
30th September 2003

S. BASKAR
Company Secretary

RE-APPOINTMENT OF DIRECTORS
A brief resume in respect of the proposed re-appointment of Directors is given below in terms of Clause 49 ol
the Listing Agreement
Name
Date of birth & age
Date of Appointment
Qualification
Experience
Other Directorships
Member of Committees
i. Sakthi Sugars Limited
ii. Sakthi Finance Limited
Name
Date of birth & age
Date of Appointment
Experience
Other Directorships
Name
Date of birth & age
Date of Appointment
Experience
Other Directorships
Member of Committees
(Sakthi Sugars Limited)
Name
Date of birth & age
Date of Appointment
Qualification
Experience
Other Directorships
Sri M Balasubramaniam
6.5.1958 - 45 years
21.8.1989
M.Com.,M.B.A.(Notredame, USA)
Has got rich experience in Finance & Business Administration
ABT Limited
Sakthi Auto Component Limited
Sri Sakthi Textiles Limited
Sri Bhagavathi Textiles Limited
Sri Chamundeswari Sugars Ltd
Sakthi Finance Limited
ABT Industries Limited
ABT Finance Limited
The Union Bus Service (P) Ltd
Sakthi Management Services (Coimbatore) Limited
Sakthi Properties (Coimbatore) Ltd
Sakthi Logistic Services Limited
The Gounder and Company Auto Ltd
Audit Committee Shareholders / Investors Grievance Committee
Shareholders / Investors Grievance Committee
Sri D Periyasamy
15.7.1915 - 88 years
27.11.1991
He has rich experience in Business Administration
NIL
Sri P K Chandran
6.9.1948 - 55 years
14.11.1977
He has rich experience in Sugarcane cultivation
NIL
Audit Committee
Remuneration Committee
Sri M Srinivaasan
2.9.1966 - 37 years
23.8.1995
B.E..M.B.A. (Pennsylvania, USA)
He has rich experience in Sugar Technology and Business
Management
ABT Limited
Sri Sakthi Textiles Limited
Sri Bhagavathi Textiles Limited
Sri Chamundeswari Sugars Ltd
ABT Industries Limited
Chamundeswari Enterprises P.Ltd
Sakthi Synthetic Gems Limited
Sakthi Management Services (Coimbatore) Limited
The Gounder and Company Auto Ltd
REPORT OF THE DIRECTORS
The free sale/levy sale ratio remained at 90 : 10.
To the Members
During the year 1,44,241 tonnes of sugar was

manufactured out of cane and 48,264 tonnes of sugar
was manufactured out of imported raw sugar. 57,733
tonnes of sugar was exported directly and 18,582
tonnes of sugar was exported out of sugar procured
from other factories. It is expected that the current
year's crushing will be less than the previous year on
account of deficiency in rainfall. However, the company
is planning to augment sugar production by refining
imported raw sugar.
Your Directors present their Annual Report together

with the audited financial accounts of the Company
for the year ended 30th June 2003.
FINANCIAL RESULTS FOR THE YEAR ENDED
30TH JUNE 2003
(Rs. in lakhs)
1002.76
Profit before interest and depreciation
Less: Interest charges
4971.04
Depreciation on Fixed Assets
1347.49
Prior year adjustments (Net)
114.99
6433.52
- 5430.76
Add : Previous year's credit balance in
Profit and Loss Account B/F
Excess provision reversed
Reversal of provision for
diminution value of investments
Deferred tax - current year
Transfer from Storage Reserve
Surplus/Deficit carried over
52.55
1.32
15.57
518.48
15.83
603.75
- 4827.01
The market price for sugar has been very low for the
last couple of years and it had reached the lowest
level during the year under review. On account of this
the Company has to pass through a stressful year. The
loans, debentures and other credit facilities, availed by
the Company from majority of Financial Institutions
and banks have been restructured under the Corporate
Debt Restructuring Scheme announced by the Reserve
Bank of India. Preference Shares subscribed by Banks
have also been brought under the CDR Scheme and
restructured.
DIVIDEND
In view of the loss incurred by the Company no
dividend was recommended by the Directors.
REVIEW OF OPERATIONS
SUGAR DIVISION
Crushing of sugarcane at various units of the Company
-for the year 2002-2003 is as under:
Sakthi Nagar Unit
7,13,389 tonnes
Sivaganga Unit
5,34,283 tonnes
Dhenkanal
1,18,234 tonnes
Baramba Unit
1,06,641 tonnes
DISTILLERY DIVISION
During the year under review, 270.13 lakh litres of
industrial alcohol was produced at Sakthi Nagar Unit
and 8.30 lakh litres at Dhenkanal Unit.
In the current year 302 lakh litres of industrial alcohol
is expected to be produced.
In Sakthinagar Distillery, Ethanol plant has been
installed with a capacity of 50000 litres per day. The
trial production commenced on 4.6.2003 and supply
of ethanol to oil companies is expected to commence
shortly.
SOYA DIVISION
During the year under review, 16291 tonnes of soya
beans have been crushed. This division has exported
products worth Rs.1565.35 lakhs to various countries.
CO-GENERATION PROJECT
There has been slight delay in implementing the 32MW
Co-Generation plant at Sakthi Nagar Sugar Unit and
the Plant is expected to be commissioned during the
fourth week of October 2003, as against the date earlier
envisaged.
The 2MW Incidental Co-generation plant at Sivaganga
Sugar Unit generated and transferred to the State Grid
2234160 units of power during the year under review.
BEVERAGE DIVISION
The implementation of beverage project under
arrangements with Hindustan Coca-Cola Beverages
Private Limited is complete and the plant is ready for
operation. Necessary permission from the State
Government is expected to commence commercial
production.
DEPOSITS
At the end of the financial year, 629 deposits
amounting to Rs. 111.50 lakhs which were due for

repayment remained unclaimed on their due dates. Of
these, 263 deposits totaling Rs.77.36 lakhs have since
been paid or renewed at the option of the depositors.
DIRECTORS
Your Directors regret to report the demise of
Sri P N Sengodappan, Director on 7.1.2003. He was
a Director of the Company since 1983. They wish to
place on record the invaluable support extended by
him during his tenure of office.
Smt. Smita Gune has been appointed by ICICI Bank
Limited as its nominee Director in the place of
Sri K Bharathan. Your Directors wish to place on record
their appreciation of the services rendered by
Sri K Bharathan.
The following Directors retire by rotation at the ensuing
Annual General Meeting and are eligible for
reappointment.
1. Sri. M Balasubramaniam
AUDIT COMMITTEE
The Company has re-constituted Audit Committee
during the year under review and at present the
Committee consists of the following Directors viz.,
Sri V K Swaminathan, Sri M Balasubramaniam,
Sri P K Chandran and Sri M Pandi (IIBI Nominee).
SUBSIDIARY COMPANY
As required under section 212 of the Companies Act
1956, the Audited Statement of Accounts for the year
ended 30.6.2003 of Sakthi Auto Component Ltd, the
wholly owned subsidiary, together with the Reports of
the Directors and Auditors and also the statement under
the said section are annexed.
3. Sri. P K Chandran
Pursuant to clause 49 of the Listing Agreement, a

Report on Corporate Governance along with Auditors
Certificate of its compliance is included as part of the
Annual Report.
Sri, M Srinivaasan
DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to requirements under Section 217(2AA) of
the Companies Act, 1956 with respect to Directors'
responsibility statement, it is hereby confirmed:
c)
on a going concern basis;
CORPORATE GOVERNANCE
The Board of Directors of the Company have, subject

to the approval of the Central Government,
Financial Institutions and Members, re-appointed
Sri M Manickam as Managing Director for a period
of 5 years effective from 9.9.2003.
b)
d) that the directors had prepared the annual accounts
2. Sri. D Periyasamy
4.
a)
Company and for preventing and detecting fraud

and other irregularities;
that in the preparation of the annual accounts for

the financial year ended 30.6.2003 the applicable
accounting standards had been followed;
that the directors had selected such accounting
policies and applied them consistantly and made
judgements and estimates that are reasonable and
prudent so as to give- a true and fair view of the
state of affairs of the company at the end of the
financial year and of the loss of the company for
the year under review;
that the directors had taken proper and sufficient
care for the maintenance of adequate accounting
records in accordance with the provisions of the
Companies Act for safeguarding the assets of the
MANAGEMENT'S ANALYTICAL REPORT

Management's Analytical Report as required under the
Listing Agreement is given in the section on Corporate
Governance.
AUDITORS
M/s P.N.Raghavendra Rao & Co., Auditors of the
Company, retire at the conclusion of the Annual
General Meeting and are eligible for re-appointment.
CONSERVATION OF ENERGY
(a) Energy Conservation measures taken
1. Variable frequency drives were provided for
weighed juice pumps and cane carrier drives
in Sivaganga Sugar Unit.
2. An additional 300KVAR capacitor bank has
been provided to improve the power factor in
Badamba Sugar Unit.
3. Steam drives in the mill/mincer are replaced
with electrical drive in A Tandem in Sakthi
Nagar Sugar Unit.
(b) Additional investments and proposals, if any, being

implemented for reduction of consumption of
energy
remitted to the appropriate authorities at the

earliest.
2.
The existing vapour cool & condensing system in

Dhenkanal Sugar Unit is being modernised with
efficient condensers & spray pond.
Effective steps would be taken for recovery of

advances outstanding.
3.
(c) Impact of the measures at [a] and [b] above for

reduction of energy consumption and consequent
impact on the cost of production of goods
The Financial Restructuring Package has become

final and as such the reduction in interest has
been given effect to.
4.
We have been advised that the adjustment of

current year's loss and new process development
expenses directly against Capital Reserve is
not violative of any Statute or Accounting
Standard.
The power consumption will reduce substantially

by which cost of production will also reduce
marginally. Moreover these measures will provide
more comfort in operations and performance.
ACKNOWLEDGEMENT
PARTICULARS OF EMPLOYEES
Your Directors wish to place on record their

appreciation of the valuable assistance and co-operation
extended by the shareholders, cane growers,
Commercial Banks, Financial Institutions and
Government authorities. They also wish to appreciate
the dedicated service rendered by officers, staff and
workers of the Company.
The Company has no employee drawing remuneration

attracting the provisions of section 217(2A) of the
Companies Act, 1956.
AUDITORS' REPORT
With reference to the Auditors' remarks, your Directors
wish to state as under:
1.
As regards delayed remittance of Provident Fund/

E.S.I, dues, it is ensured that there would be no
delays during the current year and effective steps
have already been initiated in this regard. PF
arrears to the extent of Rs.21,44,692/- will be

Coimbatore
30.09.2003
10
N. MAHALINGAM
Chairman

ANNEXURE - 1 TO THE DIRECTORS' REPORT FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2003
ENERGY CONSERVATION MEASURES - FORM - A

Disclosure of Particulars with respect to conservation of Energy
PREVIOUS YEAR
CURRENT YEAR
PARTICULARS
A. POWER AND FUEL CONSUMPTION
1.
ELECTRICITY:
a) Purchased
4789994
5760448
Units
289.14
254.46
Total Amount (Rs.in lakhs)
5.02
5.31
Rate/Unit (Rs.)
b) Own Generation
1063624
1328387
i)
Through Diesel Generator - Units
373277
471265
Diesel Oil (Ltrs.)
64.41
83.95
Total Consumption Value
2.82
2.85
Units per Ltr of Diesel Oil
6.32
6.06
Cost/Unit (Rs.)
ii)
Through Steam Turbine/
35134992
40614992
Generator - Units
76.94
69.62
Units per Ltr of Fuel Oil/Gas
per tonne of Steam
per tonne of Steam
Cost/Unit
2. COAL
746.470
219.655
Quantity (Tonnes)
4.62
18.02
Total Cost (Rs.in lakhs)
2103.30
2414.03
Average Rate per Tonne (Rs.)
3. FURNACE OIL
613.821
378.049
Quantity (K.Ltrs)
47.62
67.03
10.92
12.60
Average Rate per Litre (Rs.)
4. FIREWOOD
6815.000
260.540
Quantity (Tonnes)
3.45
76.53
1324.17
1122.96
Average Rate per Tonne (Rs.)
5. OTHERS/INTERNAL GENERATION
261294
229639
a) Bagasse (MT)
Own Bagasse is used
Own Bagasse is used
Total (Cost)
Rate/Unit
b) Bio Gas
11821412
9374161
Quantity (Cu.Mtr)
Generated out
Generated out
Total Cost
of Distillery
of Distillery
Effluent
Effluent
Rate/Unit
c) Paddy Husks
2547.330
811.730
Quantity (Tonnes)
34.99
12.64
Total Cost (Rs. in lakhs)
1373.60
1557.17
Rate/Unit (Rs.)
d) Coconut Shell Chips
6359.945
653.160
Quantity (Tonnes)
92.74
12.71
Total Cost (Rs. in lakhs)
1458.19
Rate/Unit (Rs.)
1945.92
* Own steam and steam obtained from TNPL in exchange of bagasse, was used.
B. CONSUMPTION PER UNIT OF PRODUCTION
Previous Year
Current Year
Soya
Sugar
Alcohol
Products (with details)
Alcohol
Soya
Sugar
MTs.
Qtl.
Ltrs.
Unit
MTs.
Ltrs.
OIL
0.22
194.67
Electricity (Units)
19.41
0.19
185.29
22.81
16.44
Furnace Oil (Ltrs)
0.01
10.39
0.01
0.01
Coal (M.Tonnes)
0.01
0.05
0.41
Others : Bio-gas (Cu. Mtrs.)
0.34
11
FORM-B
Disclosure of particulars with respect to Technology Absorption
RESEARCH AND DEVELOPMENT (R & D)
1. Specific areas in which R & D carried out by
the Company
a. Sugar cane varietal trials taken up in R & D
farm as well as in farmers' fields.
b. Drip irrigation system has been introduced
in the command area of Tamilnadu sugar
units.
2. Benefits derived as a result of the above
R&D
a. Varieties of sugar cane suitable for different
months of planting and age at harvest have
been indentified.
b. Effective water and nutrition managenent to
sugar cane crop have been achieved. There
is significant improvement in cane yield by
the adoption of drip irrigation system.
3. Future plan of action
a. Production of fine sugar with minimum black
specks to meet the requirement of soft drink
manufacturer.
b. To evolve set of package of practices suitable for problematic soil areas and effective
fertiliser schedule for micro irrigation plots
based on plant analysis.
c. Adoption of Biological pest control measures on a large scale.
4. Expenditure on Research and Development
(Rs. in lakhs)
a) Capital
b) Recurring
0.93
c) Total
0.93
d) Total R&D expenditure as
a percentage of total turnover
0.29
b.
Brazilian Technology with respect to

spraying of effluent in the composting
process has been modified to suit Indian
conditions and is used in SakthiNagar.
c. Drip irrigation system using low discharge
emitters have been adopted to conserve water.
2. Benefits derived as a result of the above efforts,
e.g. product improvement, cost reduction,
product development, import substitution, etc.
a. Field staff are equipped with latest technology
and field practices.
b. Utilisation of effluents effectively adds
neutrient value to compost.
c. More acres of land are brought under sugar
cane intime with limited availability of water
besides improving the cane yield.
3. In case of imported technology (imported
during the last 5 years reckoned from the
beginning of the financial year) following
information may be furnished.
a) Technology imported
b) Year of Import
c) Has technology been
fully absorbed?
d) If not fully absorbed,
| Not Applicable
areas where this has
not taken place, reasons
therefor and future
plans of action
FOREIGN EXCHANGE EARNINGS AND

OUTGO
(Rs, in lakhs)
Foreign Exchange earned during
6876.37
the year
1. OUTGO:
Subscription and Membership 0.37
Consultancy charges
4.14
Sales Promotion expenses
2.86
Foreign Travel
26.88
34.25
IMPORT
3923.04
a. Raw Sugar
21.23
b. Spares and Others
77.41
c. Capital Goods
4021.68
4055.93
Total
TECHNOLOGY ABSORPTION, ADAPTATION

AND INNOVATION
1. Efforts in brief made towards technology
absorption, adaptation and innovation
a. Field staff are deputed to participate in
conferences, seminars and meetings
organised by Sugar Cane Breeding Institute
and other Institutions to improve and update
the technical knowledge in their respective
fields.
12

CORPORATE GOVERNANCE
Company's Philosophy
The Company's philosophy on Corporate Governance endeavours attainment of the highest levels of transparency,
accountability and equity in all facets of its operations and in all the interactions with its stakeholders, including
shareholders, employees, cane growers, lenders and the Government.
Board of Directors
The Board comprises of a Non-Executive Director as Chairman, a Vice Chairman and Managing Director, who
is an Executive Director and fifteen other Non-Executive Directors, including five Directors nominated by All
India Financial Institutions, Bank, Insurance Companies and TIDCO.
Board Meetings and AGM Attendance
The Board met 6 times during the financial year on 27.8.2002, 24.9.2002, 31.10.2002, 18.12.2002, 24.2.2003
and 29.4.2003. As provided in clause 49 of the Listing Agreement relating to Corporate Governance, the Board
has formed Audit Committee, Remuneration Committee and Shareholders/Investors Grievance Committee. Details
of attendance of each Director at the Board Meetings and at last Annual General Meeting held on 18.12.2002
are given below:
Financial Year
No. of
Committee position
Category of
2002-03
Name of the Directors
DirectorDirectorships
Chairman
Member
Attendance at
ships*
(Other than SSL)
Board
Last AGM
1
Dr N Mahalingam
Chairman
Promoter
Non-Exeuctive Director
Yes
Sri M Manickam
Vice Chairman &
Managing Director
Promoter
Executive Director
Yes
Sri K K Ramaswamy
Gounder
Non-Executive Director
Yes
Sri D Periaswamy
No
Sri P K Chandran
Yes
Sri G G Gurumurthy
Yes
Dr J Thuljaram Rao **
No
Sri P N Sengodappan*** Non-Executive Director
4'
Yes
Sri S S Muthuvelappan
Yes
Sri Kara Seemaichamy
Yes
Promoter
Yes
Sri N K Vijayan
Yes
_Sri M Srinivaasan
Promoter
Yes
10
Sri V K Swaminathan
Yes
Sri S Saravanan
Nominee of TIDCO
No
13
14
13
Sri K Bharathan @
No
Yes
Yes
Yes
Nominee of ICICI
Sri C Rangamani
Nominee of GICI
Sri T Prakash
Nominee of IDBI
Sri M Pandi
Nominee of IIBI
*
Excluding directorships in private limited companies
**
Retired
*** Deceased
@
Substituted by Smt. Smita Gune w.e.f. 19.8.2003
Audit Committee
On account of retirement of Dr.J Thuljaram Rao, Chairman of the Committee, the Board reconstituted the
Committee by appointing Sri P K Chandran in the place of Dr J Thuljaram Rao.
The Audit Committee met three times during the financial year on 29.8.2002, 23.9.2002 and 20.2.2003.
Name of Member
1.
2.
3.
4.
No.of meetings
Held
Dr J Thuljaram Rao
Sri V K Swaminathan - Chairman
Sri P K Chandran
No.of meetings
Attended
3
3
3
3
2
3
3
1
Sri M Pandi, Nominee of IIBI has been inducted into the Committee on 29.4.2003.
The role and terms of reference of the present Audit Committee covers the areas mentioned under clause 49 of
the Listing Agreement and Section 292A of the Companies Act 1956, besides other terms as may be referred
to by the Board of Directors from time to time.
Remuneration Committee
Upon retirement of Dr J Thuljaram Rao, the Company re-constituted the Remuneration Committee. At present
the Committee consists of the following three Non-Executive Directors.
1. Sri S S Muthuvelappan -
Chairman
2. Sri V K Swaminathan
3. Sri P K Chandran
The remuneration committee will determine and recommend to the Board the remuneration including commission,
perquisites and allowances payable to the Managing Director as and when the necessity arises. The recommendation
will be based on overall performance and financial results of the Company during the relevant financial year and
also based on evaluation of performance on certain fixed parameters.
' The Committee met on 5.9.2003 for the purpose of recommending to the Board the remuneration payable to
Sri.M.Manickam, Vice Chairman and Managing Director upon his reappointment as Managing Director with
effect from 9.9.2003.
Details of remuneration paid to the Vice Chairman and Managing Director are given in Schedule No.23. All the
Non-Executive Directors are paid a sitting fee of Rs.2000/- for each Board Meeting attended by them.
14

Shareholders/Investors Grievance Committee
The Shareholders/Investors' Grievance Committee was formed on 31.1.2002 to look into the redressing of
shareholders/investors complaints, if any, on transfer of shares, non-receipt of balance sheet, non receipt of
declared dividend, etc. and also the action taken by the Company on those matters.
The committee was reconstituted on 18.12.2002 and at present the Shareholders/Investors' Grievance committee
consists of :
1. Dr N Mahalingam - Chairman
2. Sri M Manickam
3. Sri M Balasubramaniam
Sri S Baskar, Company Secretary, is the Compliance Officer.
The Company had received 18 complaints from the shareholders during the financial year 2002-2003. All the
complaints were attended to the satisfaction of the shareholders. No share transfer was pending as on 30.6.2003.
General Body Meeting
Details of Annual General Meetings:
Last three Annual General Meetings were held at the location and time mentioned below:
AGM
Date
Venue
Time
39th
07.12.2000
Registered office at Sakthi Nagar

Bhavani Taluk, Erode District.
3.15 p.m.
40th
28.12.2001
-do-
3.00p.m.
41st
18.12.2002
- do -
3.00 p.m.
During the year 2002, the procedure of postal ballot was carried out for the special resolutions relating to
amendment to the object clause of the Memorandum of Association and commencement of new business. Sri
M Easwaran, Practising Company Secretary was appointed as Scrutinizer for conducting the postal ballot process.
The details of voting pattern of the two special business are furnished hereunder:
In favour
1.
Amendment to Object Clause of

Memorandum of Association
a. Number of Members voted
b. Number of Shares
c. % of shares voted
2.
Against
1544
28
18343315
99.96
6610
0.04
Commencement of new business

a. Number of Members voted
1463
26
b. Number of Shares
18332188
6895
c. % of shares voted
99.96
0.04
The results of the Postal ballot were announced at the 41st Annual General Meeting held on 18th December, 2002.
No resolution is proposed to be voted through postal ballot this year.
Disclosures
The details of related party transactions are given in the Notes on Accounts. These transactions are not in conflict
with the interest of the Company.
There are no instances of non-compliance relating to capital markets during the last three years.
15
Means of Communication
The quarterly/half yearly/annual financial results of the Company are announced within the stipulated time and
are normally published in English and Tamil newspapers.
Shareholders Information
Annual General Meeting
Day and Date
Time
Venue
Financial Calender
Results for the quarter
Thursday 18th December, 2003

3.00 P.M.
Sakthi Nagar-638 315, Erode District, Tamil Nadu
1st July 2002 to 30th June 2003
ending
Result announcement
30th September 2003

31st December 2003
31st March 2004
30th June 2004 (audited)
Date of Book Closure
Share Price Movement
Last week of October 2003

Last week of January 2004
Last week of April 2004
Last week of September 2004
10.12.2003 to 18.12.2003 (both days inclusive)
The high and Low quotations of the Company's shares on The Stock Exchange, Mumbai and National Stock
Exchange from July 2002 to June 2003 are furnished below:
SENSEX (BSE)
NSE
BSE
Month
High
Low
High
Low
High
Low
(Rupees)
(Rupees)
July 2002
August 2002
September 2002
October 2002
November 2002
December 2002
January 2003
February 2003
March 2003
April 2003
May 2003
June 2003
15.20
10.15
9.50
9.30
9.15
9.00
8.80
7.30
7.00
6.90
8.60
11.40
8.30
7.25
7.40
6.65
7.20
7.70
6.50
5.60
5.00
5.00
7.95
7.65
14.90
9.95
9.45
8.65
9.00
10.20
8.35
7.45
6.75
6.50
8.65
'11.40
8.05
7.50
7.75
7.25
7.05
7.90
6.75
5.80
5.05
5.15
5.50
7.55
3366.74
3185.08
3227.62
3038.92
3245.98 ,
3413.83
3416.92
3341.61
3311.57
3221.90
3200.48
3632.84
2932.35
2931.78
2973.97
2828.48
2928.63
3186.62
3199.18
3218.37
3039.83
2904.44
2934.78
3170.38
Listing
The Company's equity shares are listed on the following Stock Exchanges and the Annual Listing Fees have been
paid to all the stock exchanges for the financial year 2003-04.
Stock Code
Coimbatore Stock Exchange Limited
21009
Stock Exchange Building
683-686, Trichy Road, Coimbatore 641 005
Madras Stock Exchange Limited
Exchange Building, 11, Second Line Beach
P B No.183, Chennai 600 001
SSR
The Stock Exchange

Phiroze Jeejeebhoy Towers
Dalai Street, Fort, Mumbai 400 001
507315
16

Bangalore Stock Exchange Limited
Stock Exchange Towers
51, First Cross, J C Road
Vasant Nagar, Bangalore 560 027
SAKTHISUG
National Stock Exchange of India Limited

Exchange Plaza, Bandra Kurla Complex
Bandra (East), Mumbai 400 051
SAKHTISUG
It is proposed to delist the Company's shares from Madras Stock Exchange Limited and Bangalore Stock
Exchange Limited.
Registrar and Share Transfer Agents
In order to comply with the Guidelines issued by SEBI, Intime Spectrum Registry Ltd have been appointed with
effect from 1.4.2003 as the Registrars and Share Transfer Agents of the Company to look after both physical and
electronic segments. The addresses of Intime Spectrum Registry Limited are furnished below:
Shareholders/Investors Relation Centre:
Surya 35, Mayflower Avenue
Behind Senthil Nagar, Sowripalayam Road
Coimbatore - 641 028. Phone No: 0422 2314792 Fax No: 0422 2316755
Email: coimbatore@intimespectrum.com
Registered Office:
No.260 A, Shanti Industrial Estate
Sarojini Naidu Road
Mulund (W), Mumbai - 400 080. Phone No: 022 25923837 (10) Lines
Fax No: 022 25672693. Email: isrl@vsnl.com
Share Transfer System
The Shares lodged in physical form are processed, registered and returned by the Registrar and Share Transfer
Agents within a period of 30 days from the date of receipt, if the documents are in order.
Distribution of Shareholdings as on 30th June 2003.
Share holdings
% of share
No.of Share
Number of
Jo of share
holding
holders
holders
Shares
1
2,501
5,001
10,001
20,001
30,001
40,001
50,001
1,00,001
- 2,500
- 5,000
- 10,000
- 20,000
- 30,000
- 40,000
- 50,000
- 1,00,000
& above
Total
23318
2417
1117
459
137
59
37
61
63
84.28
8.74
4.04
1.66
0.50
0.21
. 0.13
0.22
0.22
1648550
951936
880812
676940
342714
213438
175184
455064
22387428
5.94
3.43
3.18
2.44
1.24
0.77
0.63
1.64
80.73
27668
100.00
27732066
100.00
Shareholding pattern as on SO* June 2003

Category
No.of shares held
Promoters and associates'

Nationalised Banks/other Banks
Financial Institutions
Mutual Funds
FIIS/NRIS
Other Bodies Corporate
Public
Total
15894912
169315
2712860
464041
95235
394170
8001533
27732066
17
% of shareholding
57.32
0.61
9.78
1.67
0.34
1.42
28.8,6
100.00
Dematerialisation of shares and Liquidity

The shares of the Company are in compulsory demat segment. The company's shares are available for denial
both with the National Securities Depository Limited (NSDL) and the Central Depository Services (India)
Limited (CDSL). International Securities Identification Number (ISIN) allotted to the equity shares of the
Company is INE623A01011.
As on 30th June 2003, 5896088 equity shares of the Company representing 21.26% have been dematerialized.
Plant location
Sugar Unit 1, Distillery Unit I &
Co-Generation plant

Bhavani Taluk, Erode District
Sugar Unit II & Beverage Plant
Padamathur Village-630 561

Sivaganga District, Tamil Nadu
Sugar Unit III
Sunapal, Barambagarh-754 031

Cuttack District, Orissa
Sugar Unit IV & Distillery Unit II
Haripur Village.Korian Post-759 013

Dhenkanal District, Orissa
Soya Unit
Marchinaickenpalayam
Ambarampalayam Post-642 103
Coimbatore District
Address for correspondence

Sakthi Sugars Limited,
Coimbatore - 641 018.
Phone Nos : 0422-2221551-4

Fax Nos. : 0422-2220574 & 2220329
E-mail
: info@sakthisugars.com
AUDITOR'S CERTIFICATE ON CORPORATE GOVERNANCE

To
The Members of Sakthi Sugars Limited,

We have examined the compliance of conditions of Corporate Governance by Sakthi Sugars Limited for the year
ended on 30" June 2003, 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 procedures and implementation thereof, adopted by the company for ensuring the compliance of
the conditions of the Corporate Governance. 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 given to us, we certify that
the company has complied with the conditions of Corporate Governance as stipulated in the above mentioned
Listing Agreement.
We state that no investor grievance is pending for a period exceeding one month against the company as per the
records maintained by the Shareholder's Grievance Committee.
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
Place : Coimbatore
Date : 30.9.2003
P.R. VITTEL
Partner
18

MANAGEMENT'S ANALYTICAL REPORT
An overview
The Company is engaged in the business of manufacture of white crystal sugar, industrial alcohol and soya
products. Molasses, one of the bye-products, is used in the distillery for manufacture of industrial alcohol. Pressmud is processed and converted into bio-fertiliser for direct application in fields. The Company has entered into
an arrangement with Tamil Nadu Newsprints and Papers Limited under which the bagasse produced by the
Company is exchanged for steam required for operation of the mill and the boilers at Sakthinagar.
The Co-generation plant erected at Sakthinagar with a capacity to produce 32 MW of power is expected to
commence commercial production during the fourth week of October 2003.
The Ethanol plant with a capacity to produce anhydrous alcohol of 12500 KL per annum at Sakthinagar and a
Bottling Plant with a bottling capacity of 600 bottles per minute at Sivaganga are ready for commencement of
their commercial production.
Industry Structure and Development
During the crushing season 2001-2002, the total level of production of sugar in India was 185.271akhs MTs. The
glut in the sugar market had an adverse effect on the pricing front and the free sale sugar price had touched rock
bottom level. This was due to off-loading of sugar stock by some of the sugar mills based on the Court Orders
without obtaining release orders from the Government. However, the Government has taken certain corrective
measures by making necessary amendment in the Essential Commodities Act. Rays of hope are visible as the
price for free sale sugar is gradually picking-up.
The Government has decided to create a buffer stock of 20 lakh tonnes of sugar for a period of one year. The
Central Government has notified to reimburse the internal transportation cost and freight charges on export
shipment of sugar upto an extent of Rs.350 per tonne with a view to encourage export of sugar.
Blending of ethanol with petrol upto 5% has been made mandatory in nine States and four Union Territories
effective from 30th June 2003.
Opportunities and threats
While the policy of the Government with respect to mixing of ethanol with petrol and creation of buffer stock
upto 20 lakh tonnes will be encouraging factors to the industry, over production of sugar and resultant glut in
the market pose threat to the industry. The action of the Government with respect to implementation of release
mechanism of sugar stock may help in firming up of sugar price. The drought situation in Tamil Nadu will
adversely affect the availability of sugarcane and thereby the level of crushing during the ensuing season would
likely to come down.
All new projects, viz. co-generation plant, ethanol plant and bottling plant will commence their operations shortly
and generate sizable revenue to the company.
Segmentwise and Productwise performance
Segmentwise results are given in the accounts for the year ended 30.6.2003. Productwise performance is furnished
in the Directors Report.
Financial performance with respect to Operational Performance
The gross income for the year under review is Rs.27958.58 lakhs. The year has ended with a gross profit of
Rs.1002.76 lakhs (previous year profit Rs.8122.21 lakhs). After providing Rs.1347.49 lakhs for depreciation, the
net loss for the year is Rs.5315.77 lakhs. No provision has been made for income tax.
Internal Control System
The Company has an in-house internal audit function 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
for improvement periodically.
Human Resources Development
Industrial relations at all plants and offices remain cordial. The total number of employees at the end of the
financial year 2002-03 on the rolls of the Company was 1999. Training programmes are conducted depending
upon the needs for updating the knowledge with respect to the developments in the industry.
19
furniture and fixtures, laboratory apparatus

and motor vehicles are not revalued during
the year.
iii. According to our information physical
verification has been conducted by the
management at reasonable intervals in
respect of finished goods, stores, spare
parts and raw materials.
iv.
In our opinion, procedures of physical
verification of stocks followed by the
management are reasonable and adequate
in relation to the size of the Company and
the nature of its business.
v.
No material discrepancy has been noticed
on physical verification of stocks, as
compared to book records.
vi.
On the basis of our examination we are
satisfied that valuation of stocks is fair and
proper in accordance with normally
accepted accounting principles. The basis
of valuation of stocks is same as in the
preceding year.
vii. The Company has taken unsecured loan
from a company, listed in the register
maintained under section 301 of the
Companies Act, 1956. The rate of interest
and terms and conditions of such loans
are prima facie not prejudicial to the
interests of the Company.
viii. The Company has granted unsecured loans
to companies and other parties listed in
the register maintained under section 301
of the Companies Act, 1956. The rate of
interest and terms and conditions of such
loans are prima facie not prejudicial to the
interests of the company.
AUDITORS' REPORT TO THE

MEMBERS
We have audited the annexed Balance Sheet of
M/s. SAKTHI SUGARS LIMITED as at 30th June
2003 and also the Profit and Loss account for the year
ended on that date attached thereto and Cash Flow
Statement for the year ended on that date. These financial
statements are the responsibility of the Company's
management. Our responsibility is to express an opinion
on these financial statements based on our audit.
We conducted our audit in accordance with auditing
standards generally accepted in India. Those Standards
require that we plan and perform the audit to obtain
reasonable assurance about whether the financial
statements are free of material misstatement. Our audit
includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.
Our audit also includes assessing the accounting
principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
I.
As required by the Manufacturing and other
Companies (Auditor's Report) Order 1988, issued
by the Government of India in terms of subsection(4A) of Section 227 of the Companies Act,
1956, we furnish below a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
i.
We find that the Company is maintaining
proper records showing full particulars
including quantitative details and situation
of fixed assets. As informed to us the fixed
assets have been physically verified by the
management at reasonable intervals and no
material discrepancies were noticed on
such verification.
ii.
The Company has revalued land, buildings,
plant and machinery and electrical
equipments during the year, based upon
the valuation report of an approved valuer.
The land has been valued at guidance/
market value and buildings, plant and
machinery and electrical installation have
been valued taking into consideration
replacement value, age of the asset and
estimated remaining useful life.
The difference between book value and
market value as per the valuer's report of
the revalued assets is Rs 30045.71 lakhs.
The other assets such as development of
property- Eco friendly trees, molasses and
alcohol storage tanks, office equipments,
ix.
x.
xi.
20
The parties and employees to whom loans

and advances in the nature of loans given
by the company are generally repaying the
principal amount as stipulated and the
interest wherever applicable, other than Rs.
163.05 lakhs due from Cane growers.
In our opinion there is adequate internal
control procedure commensurate with the
size of the Company and the nature of its
business for the purchase of stores, raw
materials including components, plant and
machinery equipment and other asset and
for the sale of goods.
The transactions of purchase of goods,
materials and services made in pursuance
of contracts or arrangements entered in the
II.
register maintained under section 301 of

the companies Act, 1956, aggregating
during the year to Rs.50,0007- or more in
respect of each party have been made at
prices which are reasonable having regard
to the prevailing market prices for such
goods, materials or services. There are no
sale of goods, materials and services to
interested persons covered under section
301 of the Companies Act, 1956.
xii. According to our information, there are
no unserviceable or damaged stores, raw
materials or finished goods requiring
provision for loss.
xiii. According to us, the company has
complied with directives issued by the
Reserve Bank of India and the provisions
under Section 58A of the Companies Act,
1956 and rules framed there under in respect
of deposits accepted from the Public.
xiv. In our opinion the company is maintaining
reasonable records for the sale and disposal
of realizable by-products and scrap.
xv. In our opinion the Company has an internal
audit system commensurate with its size
and nature of its business.
xvi. According to details furnished to us cost
records prescribed by the Central
Government under section 209(1) (d) of the
Companies Act, 1956 in respect of Sugar
and Distillery Units are being maintained.
xvii. The Providend Fund/E.S.I, dues have not
generally been regularly deposited with the
appropriate authorities though the delays
in deposit have not been serious. Further
there are PF arrears as on the closing
date to the extent of Rs. 21,44,692/-.
xviii. There are no undisputed amounts payable
in respect of income tax, wealth tax, sales
tax, customs duty and excise duty which
are outstanding for more than six months
from the date they became due.
xix. As per our verification no personal expenses
have been charged to the revenue account.
xx. The Company is not a Sick Industrial
Company within the meaning of Clause
(o) of sub section (i) of Section 3 of the
Sick Industrial Companies (Special
Provisions) Act, 1985.
Further to our comments under Para I above:
i.
The interest reduction ofRs.455.85 Lakhs
as per the Financial Restructuring Package
approved by the Corporate Debt
Ill
Restructuring Cell has been given effect to

even though the documentation is not
complete.
ii.
The current year's loss ofRs.4827.0l lakhs
and new process development expenses of
Rs.3096.73 lakhs have been adjusted
against Capital Reserve, which is not in
conformity with the Guidance Note issued
by The Institute of'Chartered Accountants
of India and the Generally Accepted
Accounting Principles.
Further to our comments under Paras I and II above:
i.
We have obtained all the information and
explanations, which to the best of our
knowledge and belief were necessary for
the purpose of our audit.
ii.
In our opinion, proper books of accounts
as required by law have been kept by the
Company so far as appears from our
examination of the books.
iii. The Balance Sheet and Profit and Loss
Account dealt with by this report are in
agreement with the books of account.
iv. The Balance Sheet and Profit and Loss
Account dealt with by this report comply
with the Accounting Standards referred to
in Section 211(3C) of the Companies Act,
1956 so far as applicable.
v.
As per the information and explanations
given to us, none of directors of the
Company is disqualified under clause (g)
of sub-section (1) of Section 274 of the
Companies Act, 1956.
vi. In our opinion and to the best of our
information and according to the
explanations given to us, the said accounts
read together with notes to accounts give
the information required by the Companies
Act 1956 in the manner so required and
show a true fair view:
a) in the case of the Balance Sheet, of
the state of affairs of the Company as
at 30.06.2003;
b) in the case of the Profit and Loss
Account, of the Loss for the year ended
on that date and
c) in the case of Cash Flow Statement, of
the cash flows for the year ended on
that date.
Chartered Accountants '
Coimbatore
September 30, 2003
21
P.R. VITTEL
Partner
BALANCE SHEET AS AT 30.6.2003

Schedule
No.
I.
As at
As at
30.6.2003
30.6.2002
(Rs. in lakhs)
SOURCES OF FUNDS :
(1)
(2)
SHAREHOLDERS' FUNDS :
(a)
Share Capital
3973.21
3973.21
(b)
Reserves and Surplus
31143.47
9286.19
35116.68
13259.40
556.04
1074.52
DEFERRED TAX LIABILITY
(3) LOAN FUNDS :

(a)
Secured loans
37458.85
30996.72
(b)
Unsecured loans
7761.84
7359.35
45220.69
38356.07
80893.41
52689.99
Gross Block
30960.38
30125.09
Less : Depreciation
11971.58
10648.26
18988.80
19476.83
5268.12
726.82
30045.71
TOTAL of 1 to 3
II. APPLICATION OF FUNDS :

(1)
FIXED ASSETS:
Net Block
Add : Capital Work in Progress

Add : Increase in Value on account of Revaluation
(Please refer Note No. 17 of Schedule 23)
54302.63
20203.65
5160.53
5145.46
(a) Inventories
6433.51
8832.08
(b) Sundry Debtors
2485.02
1716.41
(c) Cash and Bank balances
747.20
788.78
(d) Other Current Assets
10
5076.34
8462.04
(e) Loans and Advances
11
16584.64
15438.42
31326.71
35237.73
(2)
INVESTMENTS
(3)
(i)
CURRENT ASSETS, LOANS AND

ADVANCES:
Carried over
22

Schedule
No.
Brought forward
As at
As at
30.6.2003
30.6.2002
(Rs. in lakhs)
31326.71
35237.73
10531.42
8748.01
20795.29
26489.72
634.96
851.16
80893.41
52689.99
Less :
ii)
CURRENT LIABILITIES AND PROVISIONS: 12
Net Current Assets (i) - (ii)

(4)
MISCELLANEOUS EXPENDITURE
(to the extent not written off or adjusted)
13
TOTAL of 1 to 4
Schedules 1 to 13 and Notes in Schedules 23 and 24 form part of this Balance Sheet
Vide our report annexed
For P.N. RAGHAVENDRA RAO & Co.
Chartered Accountants .
N. MAHALINGAM
Chairman
P.R. VITTEL
Partner
S. BASKAR
Company Secretary
Coimbatore
30th September 2003
23
M. MANICKAM
Vice Chairman and
Managing Director
PROFIT AND LOSS ACCOUNT FOR THE

YEAR ENDED 30.6.2003
Schedule
No.
I.
INCOME:
Sales
14
Processing Charges for Crude Palmolein
45,022.47
87.41
3.45
3.47
352.64
895.12
817.99
1,711.69
99.25
5,598.84
(5,536.10)
(11,468.53)
27,958.58
41,850.47
496.56
360.58
16,433.34
21,631.53
16,929.90
21,992.11
376.42
496.56
16,553.48
21,495.55
2,016.46
1,340.80
2,984.56
3,847.01
Excise Duty
1^26.05
2,021.85
Salaries, Wages and other employee benefits 19'
1,866.96
2,178.48
Interest Charges
20
4,971.04
6,330.22
Selling expenses
21
898.41
1,472.42
Any other expenses
22
1,309.90
1,372.15
1,347.49
1,309.48
33,274.35
41,367.96
(5,315.77)
482.51
114.99
18.80
(5,430.76)
463.71
Interest
Other income
15
Value of Advance Licence / DFRC Credited

Stock adjustment
16
EXPENDITURE:
Cost of Goods Consumed / Sold
17
Opening stock
Add : Purchases
Less: Closing stock
Purchase of Goods for Sale

Manufacturing expenses
18
Depreciation
Net Profit/Loss
Prior year adjustments - Net
m.
32,221.35
Dividend
II.
Figures for the

Current
Previous
Year ended
Year ended
30.6.2003
30.6.2002
(Rs. in lakhs)
PROFIT/LOSS BEFORE TAX

Provision for Taxation
24

Current
Year ended
30.6.2003
Figures for the

Previous
Year ended
30.6.2002
(Rs. in lakhs)
(5,430.76)
463.71
Surplus from previous year
52.55
465.27
Excess provision withdrawn
1.32
0.78
15.57
4.89
518.48
33.90
IV. PROFIT/LOSS AFTER TAX

Add:
Reversal of Provision for Diminution in Value

of Investments
Deferred Tax - Current year
15.83
(4,827.01)
968.55
APPROPRIATIONS:
Proposed Dividend on Preference shares
152.00
Transfer to Debenture Redemption Reserve
764.00
Surplus / Deficit carried over
(4,827.01)
52.55
Schedules 14 to 22 and Notes in Schedules 23 and 24 form part of this Profit and Loss Account
N. MAHALINGAM
Chairman
P.R. VITTEL
Partner
S. BASKAR
Company Secretary
Coimbatore
30th September 2003
25
M. MANICKAM
Vice Chairman and
Managing Director
As at
As at
30.6.2003
30.6.2002
(Rs. in lakhs)
SCHEDULE - 1
SHARE CAPITAL
Authorised:
5,00,00,000 Equity Shares of Rs.10 each
50,00,000 Redeemable Cumulative Preference Shares of Rs.100 each
ISSUED:
2,78,48,735
10,00,000
2,00,000
Equity Shares of Rs.10 each

12.50% Redeemable Cumulative Preference Shares of
Rs.100 each
Rs.100 each
SUBSCRIBED AND PAIDUP:

2,77,32,066 Equity Shares of Rs.10 each fully paid up
10,00,000 12.50% Redeemable Cumulative Preference Shares of
Rs.100 each
Rs.100 each
TOTAL
SCHEDULE 2
RESERVES AND SURPLUS:
Capital Reserve :
Balance as per last Balance Sheet
Add: Difference between Market Value and book value of Land, Buildings,
Plant and Machinery and Electrical Installations
Less:
Debit balance in Profit and Loss account adjusted
Less : New Process Deveopment Expenses:a) Net Deficit

b) Value of Advance Licence/DFRC adjusted
265.97
2,830.76
Subsidy from Government:

Capital Redemption Reserve :
Share Premium Account :
Add: Received during the year
Less: Public/Debenture Issue Expenses Adjusted: Earlier years
Current year
5,000.00
5,000.00
10,000.00
2,784.87
1,000.00
2,784.87
1,000.00
200.00
200.00
3,984.87
3,984.87
2,773.21
1,000.00
2,773.21
1,000.00
200.00
200.00
3,973.21
3,973.21
1,619.26
30,045.71
1,619.26
31,664.97
4.827.01 ,
26,837.96
1,619.26
1,619.26
44.23
44.23
1,312.27
1,312.27
2,678.47
2,375.32
303.15
2,109.58
500.00
2,609.58
Transferred to Deferred Tax Liability

2,609.58
26
1,619.26
3096.73
23,741.23
176.14
20.17
2,482.16
- General Reserve :
Add: Transfer from Debenture Redemption Reserve
Less:
5,000.00
5,000.00
10,000.00
2,678.47
3,218.00
3,218.00
1,108.42
2,109.58

As at
As at
30.6.2003
30.6.2002
(Rs. in lakhs)
SCHEDULE - 2 (Contd.)
Preference Shares Redemption Reserve :
Debenture Redemption Reserve :
Add:
Transfer from Profit & Loss Account
Less:
Transferred to General Reserve
Storage Reserve :
Less: Transferred to Profit and Loss account
100.00
1354.00
1354.00
590.00
764.00
1,354.00
500.00
854.00
1,354.00
15.83
15.83
Surplus :
Balance in Profit and Loss Account
TOTAL
SCHEDULE - 3
SECURED LOANS
A.
DEBENTURES
Secured Partly Convertible Debentures - IV Series
Secured Redeemable Non-convertible Debentures Secured Redeemable Non-convertible Debentures Secured Redeemable Non^convertible Debentures Secured Redeemable Non-convertible Debentures Interest accrued and due on the above
B.
100.00
31,143.47
VI Series
VII Series
VIII Series
IX Series
LOANS AND ADVANCES:

FROM BANKS
a) Term Loans
Interest accrued and due on the above
b) Hypothecation Loans for working capital
FROM FINANCIAL INSTITUTIONS
Term Loans
FROM OTHERS
i)
From Government of India/TIFAC
ii) Hire Purchase /Mortgage Loans from Limited companies
TOTAL
SCHEDULE - 4
UNSECURED LOANS
Fixed Deposits
Loan under Sales Tax deferral scheme
Short-term Loans from Banks
Other Loans and Advances
TOTAL
27
752.61
839.40
1,700.00
1,000.00
343.33
4,63534
15.83
15.83
52.55
9,286.19
752.61
839.40
1,700.00
1,000.00
1,000.00
145.27 '
5,437.28
14,155.10 ,
44438
10,862.71
599.72
26,061.91
7,221.64
191.40
10,963.82
172.78
18,549.64
4,590.11
601.51
4,782.54
292.74
1,061.79
122.26
317.85
68.08
6.761.60
37.458.85
1,073.80
55.75
770.88
34.09
7,009.80
30,996.72
3339.49
1,081.13
2,115.00
994.27
231.95
7,761.84
3,206.37
1,347.17
2,275.00
473.14
57.67
7,359.35
33.46
53.67
1327.88
5645.75
19827.79
1263.18
28064.60
As on
1.7.2002
181.19
16.34
0.79
123.67
493.85
4.28
2.23
4.42
10.93
Additions Deductions
GROSS BLOCK
1634
34.25
123.67
493.85
53.67
181.19
1323.60
5645.75
19825.56
1258.76
28053.67
As on
30.6.2003
50.33
0.56
7.78
0.07
2.71
Upto
30.6.2003
As on
As on
30.6.2002 30.6.2003
0.56
7.78
50.40
2.71
3.34
33.46
1634
34.25
123.11
486.07
3.27
178.48
835.74
53.36
1084.26
206049
726.82
30851.91
29463,22
Valuation
as per
Approved
Valuer
306.36
30.07
514.94
1692.89
5268.12
54302.63
20203.65
5350.35
11107.23
29069.46
1814.58
47341.62
Written
down Value
1634
34.25
123.11
486.07
3.27
178.48
NET BLOCK
1327.88 1323.60
1322.75 4451.17 4323.00
0.48 8949.95 11877.49 10875.61

485.06
830.48
773.70
2.36
2.84 10757.76 18487.02 17295.91
For the
Withdrawn
year
1194.58 128.17
7950.30 1000.13
432.70
54.72
9577.58 1183.02
Upto
30.6.2002
DEPRECIATION
(Rs. in lakhs)
562.78
12.52
869.14
519.63
53.25
10.10
316.11 306.36
45.92
23.97
30.07
21.79
2.18
31.57
54.04
0.68
565.62
514.94
13.56
1080.56
478.93
97.92
605.33
11.23
9.86
26.08
989.81 1692.89
2906.71 1070.68 164.47
21.33 1213.82
872.30
149.11
726.82 5268.12
5268.12
4690.41
186.12 36228.50 10648.26 1347.49

24.17 11971.58 20203.65 24256.92
5562.71
976.86
30851.91 9369.68 1309.48
30.90 10648.26 20093.54 20203.65
2365.55
Note: Land, Buildings, Plant & Machinery and Electrical Installations have been revalued . Other assets are shown at Written Down book Value.
OTHER ASSETS:
Land
Dev.of Eco.Friendly Trees
Buildings
Plant & Machinery
Mol. Alcohol Storage Tank
Electrical Installations
Office Equipments, Furniture
and Fixtures
Laboratory Apparatus
Motor vehicles
Total
Work in Progress
Total for the Year
Previous Year
REVALUED ASSETS:
Land
Buildings
Plant & Machinery
Particulars
FIXED ASSETS:
SCHEDULE - 5

As at
As at
30.6.2002
30.6.2003
(Rs. in lakhs)
SCHEDULE - 6
INVESTMENTS - LONG TERM at cost
A. Quoted:
In fully paid Equity Shares:
a) Sri Chamundeswari Sugars Limited
2,55,432 Shares of Rs.10 each
117.88
117.88
b) Sri Bhagavathi Textiles Limited

5,000 Shares of Rs.100 each
5.00
5.00
c) Sakthi Finance Limited

282.00
282.00
d) ICICI Bank Ltd

441 Shares of Rs.10 each
0.24
0.24
e) NUT Ltd.
675 Shares of Rs. 10 each
0.15
0.15
f) Kovai Medical Centre and Hospital Ltd.

20.00
20.00
g) K G Denim Limited
17.00
17.00
0.04
0.04
57.98
57.98
4.22
4.22
504.51
504.51
2.83
3.33
h) IFCI Ltd
i)
j)
The Industrial Development Bank of India Ltd

The South Indian Bank Limited
13,200 Shares of Rs.10 Each
Aggregate of Quoted Investments
B. Unquoted:
1. In Government Securities:
National Savings Certificates
2. In fully paid Equity Shares:
a) L'Avenir Telecoms Limited 25,000 Shares of Rs.10 each
b) Sakthi Soft Drinks Limited 30,000 Shares of Rs.10 each
c) Sakthi Beverages Limited 2,27,900 Shares of Rs.10 each
2.50
2.50
3.00
3.00
22.79
22.79
d) The ABT Co-operative Stores Ltd. 1000 Shares of Rs. 10 each
0.10
e) Sakthi Sugars Co-operative Stores Ltd. 760 Shares of Rs.10 each
0.08
0.10
0.08
f)
2.00
0.10
2.00
0.10
Arun Fuels Ltd., 2000 Shares of Rs.100 each
g) Angul Central Co-op Bank Ltd. 100 Shares of Rs.100 each

h) Sakthi Auto Component Limited 15528850 Shares of Rs.10 each
(Wholly owned subsidiary)
Aggregate of Unquoted Investments
29
4,658.51
4,658.51 .
4,691.91
4,692.41
Total Investments
Less: Provision for Diminution in value of Investments
As at
As at
30.6.2003
30.6.2002
(Rs. in lakhs)
5,196.42
35.89
5,196.92
51.46
TOTAL
5.160.53
5,145.46
Note : 1) Market Value of quoted Investments as on 30th June, 2003 is Rs. 148.55 lakhs (Rs. 134.55 lakhs).
2) Government securities of the total face value of Rs. 1.99 lakhs are deposited with Panchayat and
Public Works Department as road contract work deposits and of the value of Rs. 0.84 lakhs are
deposited with State Commercial Tax Department.
SCHEDULE - 7
INVENTORIES
Stores and spares
Standing crop
1,055.70
6.70
626.27
8.81
STOCK-IN-TRADE:
i) Finished goods:
Sugar
Molasses - Sugar Unit
Industrial Alcohol
Soya Products & Sunflower Oil
Bio-Earth
Fusel Oil ~
2,035.10
523.65
144.18
71.67
1.01
1.19
6,946.82
233.96
334.23
134.05
2.45
0.07
2,776.80
7.651.58
155.39
2,170.90
185.21
139.78
316.50
2,511.50
456.28
0.33
35.49
12.00
1.26
39.01
18.75
47.82
59.02
29.97
5.02
34.99
25.04
5.08
30.12
6,433.51
8,832.08
710.21
1,774.81
2,485.02
405.76
1,310.65
1,716.41
ii) Raw materials

Molasses - Distillery Unit
Raw Sugar
Soyabeans & others
iii) Other stocks:
News print paper
Chemicals, Fertilisers & Others
Bagasse
iv) Stock-in-process
Sugar
Molasses
TOTAL
SCHEDULE - 8
SUNDRY DEBTORS
Unsecured - considered good:
i) Debts outstanding for a period exceeding six months
ii) Other debts
TOTAL
30

As at
As at
30.6.2003
30.6.2002
(Rs. in lakhs)
SCHEDULE - 9
CASH AND BANK BALANCES
i) Cash on hand
ii) (a) In Current accounts with Scheduled Banks
(b) Current accounts with Other banks
iii) Deposits with Scheduled Banks
TOTAL
SCHEDULE - 10
OTHER CURRENT ASSETS
Outstanding income and interest receivable
Interest Savings on Export Sales
Value of Advance Licence/DFRC
Stock of stamps and hundi papers
TOTAL
SCHEDULE - 11
LOANS AND ADVANCES :
Unsecured; (Considered good)
Advance to Subsidiary Company
Advance Recoverable in cash or in kind/value to be received
Income-tax payments
Prepaid expenses
Deposit with Central Excise, Electricity Department, etc.
TOTAL
SCHEDULE - 12
CURRENT LIABILITIES AND PROVISIONS
A. Current Liabilities:
Liabilities for purchases, Expenses & Others
Unclaimed dividends / Preference Shares
Interest accrued but not due
.
B. Provisions:
Proposed Dividend on Preference Shares
13.77
272.50
3,62
457.31
15.42
227.36
1.98
544.02
747.20
788.78
231.55
2,787.59
2,056.32
0.88
97.94
2,764.20
5,598.84
1.06
5,076.34
8,462.04
1,145.75
13,541.56
150.47
315.22
1,431.64
2,012.62
11,754.62
333.00
456.33
881.85
16,584.64
15,438.42
10,100.31
12.83
418.28
10,531.42
8,078.05
16.37
501.59
TOTAL
SCHEDULE - 13
(To the extent not written off or not adjusted)
Deferred Revenue Expenditure
Pre-operative expenses
Debenture Issue Expenses
Share issue expenses
Soyabean Development Expenses
TOTAL
31
8,596.01
152.00
10,531.42
8,748.01
461.17
55.68
14.63
7.74
95.74
580.97
119.45
22.12
16.30
112.32
634.96
851.16
Current
Year ended
30.6.2003
Previous
Year ended
30.6.2002
(Rs. in lakhs)
SCHEDULE - 14
SALES: *
Sugar
Industrial Alcohol
Power
ETP Contract Receipts & Technical Service charges
Fertilisers & Chemicals
Seeds
RBD Palmolein
23707.26
36458.74
3943.54
3805.78
62.83
7.01
0.76
0.26
3441.60
3174.40
168.64
308.98
33.24
18.93
Bio Earth
49.94
Magazines
Others
4.06
120.82
7.05
8.11
27.56
14.23
0.30
0.31
1095.12
Add : OWN CONSUMPTION

Industrial Alcohol
Molasses
Soya Products
736.15
0.06
Other By Products
TOTAL
0.06
42.42
5.66
32,221.35
45,022.47
28.42
18.23
* Inclusive of Excise duty.
SCHEDULE - 15
OTHER INCOME:
Rent Receipts
1.34
9.50
Interest Savings on Export Sales (Net)
23.39
1,585.71
Profit on sale of used materials
36.71
30.04
Profit on sale of Fixed Assets
Profit on Road Contract Works
0.15
3.57
Public/Debenture Issue Expenses Written Back
176.14
Value of Sugar Mill Rollers Accounted
332.50
Provision for Excise Duty Reversed (on account

of Export out of Opening Stock)
161.52
Miscellaneous Income
57.34
Foreign Currency Fluctuation
Sundry balances written off

TOTAL
32
54.33
7.93
0.48
2.38
817.99
1,711.69

Current
Year ended
30.6.2003
Previous
Year ended
30.6.2002
(Rs. in lakhs)
SCHEDULE - 16
STOCK ADJUSTMENT:
(A) OPENING STOCK:
Sugar
Molasses
Industrial Alcohol
Soya Products
Bagasse
Bio Earth
Fusel Oil
Stock-in-process
(B) CLOSING STOCK:
Sugar
Molasses
Industrial Alcohol
Bagasse
Bio Earth
Fusel Oil
Stock-in-process
6,946.82
233.96
334.23
134.05
18.75
2.45
0.07
30.12
18,398.21
179.92
180.19
83.82
0.15
2.68
0.60
323.41
- 7,700.45
19,168.98
1,381.45
517.86
144.18
71.67
12.00
1.01
1.19
34.99
(B) - (A):
6,946.82
233.96
334.23
134,05
18.75
2.45 0.07
30.12
2,164.35
7,700.45
(5,536.10)
(11,468.53)
139.79
39.00
1.26
316.51
183.15
26.87
1.89
148.67
496.56
360.58
12,472.44
1,404.62
159.92
11.11
2,385.25
17,086.20
1,653.93
313.39
11.15
2,566.86
16,433.34
21,631.53
SCHEDULE - 17
COST OF GOODS CONSUMED/SOLD:
(A) OPENING STOCK:
Molasses
Newsprint paper
Soyabean seeds & others
(B) ADD : PURCHASES:
Sugarcane
Molasses
Newsprint paper
33
Current
Year ended
30.6.2003
Previous
Year ended
30.6.2002
(Rs. in lakhs)
(C) LESS : CLOSING STOCK:

Molasses
155.39
139.79
35.49
39.00
Newsprint paper
0.33
1.26
Soyabean Seeds
185.21
316.51
376.42
496.56
16,553.48
21,495.55
776.35
538.44
1,125.62
Water charges
69.55
8.00
(D) CONSUMPTION: (A+B-C)

SCHEDULE - 18
MANUFACTURING EXPENSES:
Consumption of Stores & Spares and Packing materials
Power and Fuel
561.32
Bagasse for Co-Generation
37.25
2,95
Printing and Publication charges
16.23
Rent
Lease Rental & Hire Charges
Rates and Taxes
56.79
84.53
46.50
15.93
38.54
217.02
42.59
Insurance
85.11
106.29
Repairs and Maintenance:

Building
Machinery & Electrical
71.03
101.94
357.18
704.51
Vehicles
Others
Effluent disposal expenses
147.07
154.45
50.70
200.12
56.81
186.62
State Administrative Service Fees
134.79
133.27
Bank Charges
153.24
159.22
170.75
220.22
0.46
0.18
2,984.56
3,847.01
1,509.64
1,759.93
Subsidy and Crop development expenses'"

Tools and implements written off
TOTAL
SCHEDULE - 19
SALARIES, WAGES AND OTHER
EMPLOYEE BENEFITS:
Salaries and Wages, Bonus, etc.,
Contribution to P.p. and other funds
Workmen and Staff Welfare expenses
TOTAL
34
146.64
169.82
210.68
248.73
1,866.96
2,178.48

Current
Year ended
30.6.2003
Previous
Year ended
30.6.2002
(Rs. in lakhs)
SCHEDULE - 20
INTEREST CHARGES:
Term Loans
Debentures
Working capital loans
Others
TOTAL
SCHEDULE - 21
SELLING EXPENSES:
Export Pass Fees on Spirit
Additional Sales Tax
Selling and Distribution expenses
Commission and brokerage:
On sale of magazines
Others
2,555.33
618.87
1,071.54
725.30
1,807.61
730.97
2,802.12
989.52
4,971.04
6,330.22
115.19
776.86
0.82
5.54
898.41
TOTAL
SCHEDULE - 22
ANY OTHER EXPENSES:
Travelling expenses
Freight and Transport
Administrative and other expenses
Printing, Postage, Telephone & Telex
Donations
Effluent on soil/crop - R & D expenses
Data processing charges
Legal and Professional charges
Foreign Exchange Flutuation
Managerial remuneration
Directors' Sitting Fees
Guarantee Commission
Auditors Remuneration
Loss on sale of Fixed Assets
Loss on sale of used materials
Debenture issue expenses
Deferred Revenue Expenditure written off
Irrecoverable advances written off
Pre-production expenses written off
Preliminary Expenses written off
199.35
376.60
251.16
106.39
23.63,
0.93
13.80
25.06
6.73
10.65
1.57
12.45
5.98
6.42
6.30
182.48
16.58
0.06
63.76
'
1,309.90
TOTAL
35
1.44
123.03
1,306.72
1.34
39.89
1,472.42
191.25
388.72
276.04
115.92
29.93
16.52
13.97
18.12
19.89
1.52
17.37.
5.27
8.67
0.57
10.21
165.31
16.58
3.73
64.00
8.56
' 1,372.15
ACCOUNTING POLICIES
1.
All ascertained income and expenses are accounted on accrual basis. Contracts in Pollution Control Division
and other contract works are accounted based on the level of completion.
2.
Depreciation has been provided on all assets under Straight Line Method at the rates prescribed in Schedule
XIV to the Companies Act, 1956.
3.
Material consumption is accounted net of MODVAT/CENVAT.
4.
Valuation of Closing Stock:

a)
Finished goods are valued at Cost or the Net Realisable Value, whichever is lower.
b)
Process stock is valued at estimated cost.
c)
Raw material of Soya Unit is valued at cost on "First-in-First-Out" (FIFO) basis and of all other Units
at average cost.
d)
Bagasse, Molasses and Soya by-products are valued at Market price.
e)
Newsprint, Fertilizer and Chemicals are valued at cost.
f)
Stores and Spares are valued at monthly weighted average basis.
5.
Value of matured duty concession under Exim policy relating to Advance Licence/Duty Free Replenishment
Certificate (DFRC) Scheme has been credited.
6.
Gratuity liability to the employees on actuarial basis has been accounted. The Company has opted for Life
Insurance Corporation of India Group Gratuity Scheme.
7.
a)
Fixed assets are valued at cost net of MODVAT/CENVAT including all direct and indirect expenses
relating thereto.
b)
Land, Buildings, Plant and Machinery and Electrical Installations as on 30.6.2002 have been revalued
on the basis of valuation certificate of an approved valuer (Refer Note No. 17 of Schedule No. 23).
c)
Fixed Assets taken on lease and purchase are treated as the assets of the company and they are
accounted at cost. Interest portion of the lease amount is charged to the Profit and Loss Account.
8.
Investments are accounted at cost. The diminution in value of investments, wherever applicable, is given
effect to as per Accounting Standards 13 (AS-13).
9.
Expenses and income in foreign exchange are accounted for at the rate prevailing on the date of transactions.
Changes in foreign exchange rates have been taken into account wherever applicable.
10. Miscellaneous Expenditure:

The expenditure incurred on technical know-how, re-structuring fees, crop development, soya product
launching expenses, Research and Development expenses and Voluntary Retirement Scheme payments are
treated as deferred revenue expenditure and are being written off over a period of years.
The expenditure incurred on issue of shares and debentures have been adjusted in Share Premium.
11. Premium on pre-payment of loans/debentures is deferred and is being written off over the original unexpired
term of the loans/debentures.
12. Interest savings on export sale of sugar is recognised and written off over a period of 18 months.
13. Contingent liabilities are disclosed by way of note.
36

SCHEDULE - 23
NOTES ATTACHED TO AND FORMING PART OF THE ACCOUNTS FOR THE
YEAR ENDED 30TH JUNE, 2003
1.
PREFERENCE SHARES
A)
B)
2.
10,00,000 - 12.50% Redeemable Cumulative Preference Shares of Rs.100 each allotted on 4.5.1995
are originally redeemable at par in three equal annual instalments commencing from 15th June, 2005.
2,00,000 - 13.5% Redeemable Cumulative Preference Shares of Rs.100 each allotted on 08.06.1998,
are redeemable at par after 5 years from the date of allotment.
DEBENTURES
A)
7,52,605 Secured Redeemable Partly Convertible Debentures of Rs. 1007- each allotted by the Company
on 26.3.1996 are convertible at the option of the Financial Institutions to the extent of 20% into Equity
shares at the conversion price to be determined and the balance 80% of the aforesaid debentures are
redeemable at par on 15.2.2006.
These debentures are secured by Charge by way of equitable mortgage of the company's immovable
properties and hypothecation of the Company's movable properties (save and except book debts and
exclusively charged assets) including movable machinery, machinery spares, tools and accessories,
subject to prior charge created and/or to be created in favour of company's bankers on the company's
stock of raw materials, semi-finished, finished goods and consumable stores, pertaining to its Sakthinagar
and Sivaganga Sugar Units, Sakthinagar Distillery Unit and Soya Unit (both present and future) in
favour of The Western India Trustee And Executor Co. Limited, the Trustees to Debenture holders,
ranking pan passu with charges created in favour of IDBI, IFCI & ICICI Bank.
B)
C)
17,00,000 Secured Redeemable Non Convertible Debentures of Rs.100/- each allotted on 24.09.1998
are redeemable in 3 equal annual instalments, commencing from 24.09.2002. These debentures are
secured by: i)
Charge by way of legal mortgage of company's land at Plot No.2, Mouje Indrad, Kadi Taluka,
Mehsana District of Gujarat State in favour of IFCI, the Trustees.
ii)
Charge by way of equitable mortgage of the company's immovable properties and hypothecation
of the Company's movable properties (save and except book debts and exclusively charged
assets) including movable machinery, machinery spares, tools and accessories, both present and
future, pertaining to its Dhenkanal Sugar Unit, subject to prior charge created and/or to be created
in favour of company's bankers on the company's stock of raw materials, semi-finished, finished
goods and consumable stores, in favour of IFCI, the Trustees, ranking pari passu with the charge
created in favour of Industrial Investment Bank of India Ltd. (IIBI).
The outstanding principal amount of Rs.839.40 lakhs out of 25,00,000 Nos. Secured Redeemable Non
Convertible Debentures of Rs.100/- each allotted on 15.06.1998, are redeemable in 24 equal quarterly
instalments commencing from 15.07.2004. The debentures carry coupon rates of 10% from 1st July
2001 to 30th June 2002, 12.50% from 1st July 2002 to 30th June 2003 and 14% from 1st July 2003
onwards.
These debentures are secured by: i)
Charge by way of legal mortgage of company's land at Plot No.l, Mouje Indrad, Kadi Taluka;
Mehsana District of Gujarat State in favour of The Western India Trustee And Executor Co.
Limited, the Trustees, ranking pari passu with the charge created in their favour as Trustees for
debentures aggregating to Rs.10 Crores;
37
ii)
3.
of the Company's movable properties (save and except book debts and exclusively charged assets)
including movable machinery, machinery spares, tools and accessories, subject to prior charge
created and/or to be created in favour of company's bankers on the company's stock of raw
materials, semi-finished, finished goods and consumable stores, pertaining to its Sakthinagar and
Sivaganga Sugar Units, Sakthinagar Distillery Unit and Soya Unit (both present and future) arid
that of Sakthi Auto Component Limited, in favour of The Western India Trustee And Executor
Co. Limited, the Trustees, ranking pan passu with charges created in favour of IDBI, IFCI &
ICICI Bank.
D) 10,00,000 Secured Redeemable Non Convertible Debentures of Rs.100 each allotted on 1.3.2000 are
redeemable in 24 quarterly instalments commencing from 15th July, 2004 and carries coupon rate of
10% from 1st July 2001 to 30th June 2002, 12.50% from 1st July 2002 to 30th June 2003 and 14%
1st July 2003 onwards.
These debentures are secured by:i) charge by way of legal mortgage of company's land at Plot no.l, Mouje Indrad, Kadi Taluka,
Limited, the Trustees ranking pari passu with the charges created in their favour as Trustees for
Debentures aggregating to Rs. 25 Crores; and
ii) charge by way of Equitable mortgage of the Company's immovable properties and hypothecation
Sivaganga Sugar Units, Sakthinagar Distillery Unit and Soya Unit, subject to prior charge created
and/or to be created in favour of company's bankers on the company's stock of raw materials,
semi-finished, finished goods and consumable stores, both present and future, in favour of The
Western India Trustee And Executor Co. Limited, the Trustees, ranking pari passu with charges
created in favour of IDBI, IFCI & ICICI Bank.
SECURED LOANS
FROM BANKS:a) The amount outstanding under Secured loans from Banks includes Term Loan of Rs.2300.95 lakhs
availed by the Company from ICICI Bank. These said loan is secured by exclusive charge on the
company's Milling Tandem I & II erected at Sakthinagar Sugar Unit. The loan is further guaranteed
by the Vice-Chairman and Managing Director of the Company in his personal capacity.
b) The amount outstanding under Secured loans from Banks includes Term Loans of Rs.315.40 lakhs
(including interest) availed by the Company from ICICI Bank. These loans are secured by:i. Charge by way of equitable mortgage of the company's immovable properties and hypothecation
of the Company's movable properties (save-and except book debts and exclusively charged assets)
Sivaganga Sugar Units, Sakthinagar Distillery Unit and Soya Unit (both present and future) in
favour of ICICI Bank ranking pari passu with charges created in favour of IDBI, IFCI and The
Western India Trustee And Executor Co. Limited, the Trustees to Debenture holders.
ii. These loans are guaranteed by the Vice-Chairman and Managing Director of the Company in his
personal capacity.
The aggregate principal amount of loan outstanding is Rs.305.52 lakhs.
c) The amount outstanding under Secured loans from Banks includes a Loan of Rs.350.00 lakhs (including
interest) availed by the Company from State Bank of India, Cuttack (SBI). This loan is secured by:Charge by way of equitable mortgage of the company's immovable properties and hypothecation of
the Company's movable assets including movable machinery, machinery spares, tools and accessories
pertaining to its Dhenkanal Distillery Unit, in the state of Orissa (both present and future) in favour
of SBI.
38
d)
e)
f)
g)
These loans arc further guaranteed by the Chairman and Vice-Chairman & Managing Director of the Company.
The principal amount outstanding is Rs.350.00 lakhs.
The amount outstanding under Secured loans from Banks includes a Term Loan of Rs.1212.74 lakhs
(including interest) availed by the Company from Citi Bank NA. This loan is secured by:Exclusive first charge on the Movable assets of the company's Bottling Plant at Sivaganga Unit and Escrow
of receivable from Hindustan Coca-Cola Beverages Private Limited (HCCB) in respect of contract of
packing charges in favour of Citi Bank. The principal amount outstanding is Rs. 1200.00 lakhs.
The amount outstanding under Secured loans from Banks includes a loan of Rs.l 101.24 lakhs (including
interest) availed by the Company from Global Trust Bank Ltd. This loan is secured by:Charge by way of equitable mortgage of the company's landed property at Erode, ranking pari passu
with charges created in favour of Global Trust Bank Limited for the Loan amount of Rs.1000 lakhs.
The loan is further secured by mortgage of personal landed properties of Chairman, Vice-Chairman
& Managing Director and Sri. M.Balasubramanian, Director and also guaranteed by the Chairman, the
Vice-Chairman & Managing Director and Sri. M.Balasubramanian, Director, in their personal capacities.
The principal amount outstanding is Rs.1000 lakhs.
The amount outstanding under Secured loans from Banks includes Loanof Rs.3104.83 lakhs (including
interest) availed by the Company from Global Trust Bank Ltd. These loans are secured by:i) Charge by way of equitable mortgage of the company's landed property at Erode, ranking pari
passu with charges created in favour of Global Trust Bank Limited for the Term Loan amount
of Rs.3000 lakhs.
ii) Exclusive first charge on the entire movable assets of Co-gen Plant at company's Sakthinagar
Unit and Escrow of the receivable on evacuation of power to Tamil Nadu Electricity Board
(TNEB) from the Co-gen Plant in favour of Global Trust Bank Limited. This loan is
further guaranteed by the Chairman, the Vice Chairman & Managing Director and
Sri. M. Balasubramaniam, Director, in their personal capacities
The amount outstanding under Secured loans from Banks includes Working Capital Term Loans of Rs.6214.32
(including interest thereon) availed from Working Capital Bankers. These loans are secured by:i) first charge by way of hypothecation of Finished Goods, Raw Materials, Stock, in process, Stores
and spares, Book Debts of the Company's units except the sugar Unit at Badamba, in favour of
the Canara Bank, the leader of consortium of banks, acting for itself and other members of
consortium ranking pari passu inter-se.
ii) These loans are further secured by second/residual charge created on the Immovable & Movable assets
of the said units, besides second charge on the company's land and building at corporate office, Race
Course Road, Coimbatore in favour of the consortium of banks ranking pari passu inter-se.
iii) These loans are also guaranteed by the* Chairman and Vice-Chairman & Managing Director.
The principal amount outstanding in respect of these loans is Rs.5998.63 lakhs
FROM FINANCIAL INSTITUTIONS:

h) The amount outstanding under Secured Loan from Financial Institutions includes Term Loans (including
interest thereon) of Rs.275.22 lakhs availed by the Company from IDBI under respective Asset Credit
Schemes. These loans are secured by a first charge in their favour on the assets purchased under the
scheme including assets for an aggregate cost of Rs.86.35 lakhs pertaining to Sakthi Auto Component
Limited. These loans are further secured by personal guarantee of the Vice-Chairman and Managing
Director.
i)
The amount outstanding under Secured Loans from Financial Institutions includes Term Loans (including
interest thereon) of Rs.723.34 lakhs availed from IDBI. These loans are secured by: i. Charge by way of equitable mortgage of the company's immovable properties and hypothecation
of the Company's movable properties (save and except book debts) including movable machinery,
machinery spares, tools and accessories, subject to prior charge created in favour of company's
39
bankers on the company's stock of raw materials, semi-finished, finished goods and consumable
stores, pertaining to its Sakthinagar and Sivaganga Sugar Units, Sakthinagar Distillery Unit and
Soya Unit (both present and future) in favour of IDBI ranking pari passu with charges created
in favour of ICICI Bank & IDBI and The Western India Trustee And Executor Co. Limited,
the Trustees to Debenture holders.
ii. These loans are guaranteed by the Vice-Chairman and Managing Director.
j)
The amount outstanding under Secured Loan from Institutions includes Term Loan of Rs. 1526.34
lakhs (including interest thereon) availed by the company from Industrial Development Bank of India
(IDBI) and is secured by a first charge on the movable and immovable assets of the company's Sugar
units at Sakthinagar and Sivaganga, Sakthinagar Distillery Unit and Soya Unit (both present and
future) (excluding assets exclusively charged to Institutions/Banks), ranking pari passu with the
existing charge holders and will be subject to the prior charge created/to be created on specified
movables in favour of the company's bankers for working capital borrowings. This loan is further
secured by the personal guarantee of the Vice Chairman & Managing Director and pledge of Promoters'
shares. The aggregate amount of principal outstanding is Rs. 1430.00 lakhs.
k) The amount outstanding under Secured Loan from Financial Institutions includes Term Loan of Rs.2047.98
lakhs (including interest thereon) availed by the Company from IIBI. This is secured by: i) Charge by way of equitable mortgage of the company's immovable properties and hypothecation
machinery spares, tools and accessories, both present and future, pertaining to its Dhenkanal
Sugar Unit, subject to prior charge created and/or to be created in favour of company's bankers
on the company's stock of raw materials, semi-finished, finished goods and consumable stores,
in favour of IIBI, ranking pari passu with charge created in favour of IFCI, the trustees for
debenture holders ;
ii) This loan is guaranteed by the Vice-Chairman & Managing Director.
The principal amount of this loan outstanding is Rs. 1731.57 lakhs.
1)
The amount outstanding under Secured Loan from Financial Institutions includes term loan of Rs.59.41
lakhs availed by the Company from Industrial Promotion and Investment Corporation of Orissa Ltd.
(IPICOL) and is secured by specific charge on the company's land and building situate at Mouza,
Dhenkanal Town, Orissa State and is further secured by personal guarantees of Chairman and the
Vice-Chairman & Managing Director. The principal amount of this loan outstanding is Rs.39.97 lakhs.
m) The amount outstanding under Secured Loan from Financial Institutions includes term loan of Rs.359!82
lakhs (including interest thereon) availed by the Company from IPICOL and is secured by specific
charge on the lift irrigation points and company's land and building situate at Dhenkanal Town, Orissa
State. This loan is further secured by personal guarantee of the Vice-Chairman & Managing Director.
The principal amount of this loan outstanding is Rs.250.00 lakhs.
n) The amount outstanding under Secured Loans from Financial Institutions includes Non-residential
Premises Loan of Rs. 199.52 lakhs (including interest thereon) availed by the Company from Housing
Development Finance Corporation Ltd (HDFC). The Non-residential premises Loan is secured by a
mortgage of company's Corporate Office at Race Course Road, Coimbatore. The principal amount of
this loan outstanding is Rs.188.01 lakhs.
SECURED LOAN FROM OTHERS:

b)
p)
The amount outstanding under Hire Purchase loan aggregating to Rs. 128.71 lakhs (including interest
thereon) represents the amount availed by the Company from Public Limited Companies and is
secured by hypothecation of machineries, office equipments and vehicles so financed. The amount of
principal outstanding is Rs.128.57 lakhs.
The amount outstanding under Secured loan from others includes mortgage loan of Rs.257.22 lakhs
(including interest thereon) availed from Sundaram Finance Ltd and is secured by the Company's
landed property at St.Mary's Road, Chennai. The principal amount of loan outstanding is Rs.189.28
lakhs.
40

q)
4.
The amount outstanding under Secured loan from others includes Term Loan of Rs.1111.06 lakhs
(including interest thereon) availed by the company from Sugar Development Fund (SDF) of Govt.
of India. The above loan is secured by exclusive second charge on the fixed assets of the company's
Sugar unit at Sakthinagar. The amount of principal outstanding is Rs.988.80 lakhs
r)
The amount outstanding under Secured loans from others includes term loan of Rs.72.99 lakhs availed
by the company from Technology Information Forecasting and Assesment Council (TIFAC). This loan
is secured by the exclusive first charge on the assets acquired under the Scheme. This loan is further
secured by the personal guarantee of Vice Chairman and Managing Director.
WORKING CAPITAL LOANS:
i)
Working Capital facilities (Including Working Capital Term Loans (WCTL)) availed for the Sugar
units at Sakthinagar, Sivaganga & Dhenkanal, Dilstillery Units at Sakthinagar & Dhenkanal and Soya
unit of the company are secured by first charge by way of hypothecation of Finished Goods, Raw
Materials, Stock in process, Stores and spares, Book Debts of the Company's units except the sugar
Unit at Badamba, in favour of the Canara Bank the leader of consortium of banks, acting for itself
and other members of consortium ranking pan passu inter-se. These are also guaranteed by the
Chairman and the Vice-Chairman & Managing Director in then" personal capacities.
These loans are further secured by second/residual charge created/to be created on the Immovable &
Movable assets of the said units in favour of the consortium of banks ranking part passu inter-se. The
Working Capital Term Loans extended to the company are further secured by second charge on the
company's land and building at corporate office Race Course Road Coimbatore.
ii) Working capital loan availed for the company's sugar unit at Baramba is secured by pledge of sugar
stocks in favour of The Orissa State Co-operative Bank Ltd., (OSCB), Bhubaneshwar. This is further
guaranteed by the Vice Chairman and Managing Director in his personal capacity.
The aggregate amount of the loans guaranteed are as under :(Rupees in lakhs)
Name
of the
Bank
Sugar
Units
I & II
Sugar
Unit at
Dhenkanal
Sugar
Unit at
Baramba
Distillery Units at
SakthiDhen
nagar
kanal
Soya
Unit
CB
2613.23
422.15
IOB
1367.67
118.96
PNB
1016.25
SET
603.43
CTBK
736.06
65.93
SIB
106.99
LVB
516.59
KVB
475.14
SBM
566.63
OSCB
SBI
Total
7895.00
116.30
177.89
906.15
881.07
172.27
881.07
906.15
177.89
172.27
41
830.33
5.
UNSECURED LOANS
a) The amount outstanding under Unsecured loans includes loan of Rs.285.79 lakhs (including interest
thereon) availed by the company from SDF of Govt. of India and the Company has provided letter
of guarantees from its bankers. The amount of principal outstanding is Rs.222.44 lakhs
b) The unsecured loans from banks represents Term Loan of Rs.2242.47 lakhs (including interest thereon)
availed by the Company from the Bank of Nova Scotia, and is secured by first charge by way of
deposit of Title Deeds of the landed properties of other Bodies Corporate along with a corporate
Guarantee and are further secured by personal guarantees of the Chairman and the Vice-Chairman &
Managing Director. The principal amount of loan outstanding is Rs.2115.00 lakhs.
6. a) FINANCIAL RESTRUCTURING
Pursuant to the Company's request and reference made by the lead Financial Institution namely IDBI
Limited, the CDR Forum has approved a Financial Restructuring package vide its letter dated 25th
July 2003. The terms of this package interalia includes:i) Cut off date: January 01, 2003.
ii) Rate of interest on all the term loans /debentures and working capital to be reduced from existing
rates to 12.50% (Financial Institutions) and 12% (Banks) w.e.f. the cut off date,
iii) Conversion of cash credit limit of the company into working capital term loan carrying interest
rate of 11.50% p.a.
iv) Simple interest due on the cut off date and accruing from January 01, 2003 to September 30,
2003 on all term loans / debentures and working capital to be deferred and funded and to be
repaid in 20 equal quarterly instalments starting from July 01, 2004. Funded interest shall carry
interest at 11.50% p.a.
v) The existing term loans/debentures to be rescheduled and to be repaid together with proposed
WCTL within a period of 9 years commencing from July 01, 2004. The Proportion of Principal
Repayment will be 8.33% from 2004-2005 to 2008-09, 12.50% from 2009-2010 to 2010-2011,
16.67% for 2011-2012 and 16.68% for 2012-2013.
vi) Existing Preference shares to be redeemed in eight yearly instalments commencing at the end of
2005-06 and ending in the year 2012-13. The dividend on preference shares will carry a rate of
12.50% and the same will be deferred for initial three years i.e. 2002-03 to 2004-05 and to be
payable along with the dividend of years 2005-06 to 2007-08,
b) The Terms and conditions, security offered, rate of interest, terms of redemption relating to debentures,
preference shares and secured loans covered in notes 1 to 5 will stand amended to the extent covered
under Financial Restructuring package in note 6(a) above on completion of documentation.
7. Fixed Deposits :
i)
The aggregate amount of fixed deposits guaranteed by the Vice-Chairman & Managing Director is
Rs.645.72 lakhs.
ii) Fixed deposits include 14 deposits aggregating to Rs.7.05 lakhs received from Directors of the Company.
8. Tax deducted at source :(Rs.in lakhs)
i) On Interest receipts
12.62
ii) On Other Income
1.68
9. Estimated amount of contracts remaining to be executed on capital
account and not provided for
440.97
10. Amount due from Directors to be adjusted against cane supply
8.06
Maximum amount due from Directors during the year
10.61
11. Advance due from Officers (Senior Executives) of the Company
14.87
Maximum amount due from officers (Senior Executives) of the
Company during the year
48.89
12. Purchase of Goods for Sale:
Purchase of Sugar
2016.46
42

13. Particulars of remuneration and perquisites to Managing Director :
Current Year
Previous year
ended
ended
30.06.2003
30.06.2002
(Rs. in lakhs)
Salary
6.00
6.00
P.F. Contribution
0.72
0.72
Pension Fund Contribution
0.90
0.90
Gratuity
0.29
0.29
Perquisites
2.74
2.14
9.84
10.65
19.89
Commission
Total
14.
Guarantee Commission provided for payment to Chairman :
15.
Fees paid/payable to Auditors:
Rs. 12.45 lakhs.

Year ended
Year ended
30.06.2003
30.06.2002
(Rs. in lakhs)
As Auditors:
4.00
3.50
In other Capacities:-
16.
i) Taxation matters
0.60
0.60
ii) Tax Audit
0.20
0.20
iii) Certification
0.52
0.27
iv) Management Services
0.35
v) Service Tax
0.31
0.35
Total
5.98
.5.27
0.35
Sundry Creditors include dues to Small Scale Industrial Undertakings amounting to Rs. 154.08 lakhs.
Names of Small Scale undertakings whose dues, are outstanding for more than thirty days are Acid and
Chemical Traders, Alpha Helical Pumps, Anco India Chemicals (P) Ltd, Bio-Incorp, Chidambaram Polybags,
Excell Engineering, Esskay Enterprises, Energyspin (P) Ltd, Ganga Chemicals, Genesis Engineering,
Hindustan Industrial Corporation, Imperial Scientific works, Jayalakshmi Minerals and Chemicals, Jayam
Textiles, Kristna Engineering Works, Kwikconveyors, Lara Engineering works, Madras Hardtools Ltd,
Mareeswari Cottage Industries, New Marketronika, Oxford Rubbers (P) Limited, Patco Industrial suppliers,
Power Master Industrial Equipment, Powerflex Engineering Company, Prime Tex Industries, Raj Industries,
Rajyalakshmi Lime Industries, Ramakrishna Chemicals, Ratan Chemical Industries, Sakthi Poly Products,
Shri Industries, South India Trading Company, Spring India, Sreesujidhra Industries, Sri Prasad Lime
Industries, Sri Vengamamba Lime Industries, Sri Vidhya Industry, Sri Vijayalakshmi Lime Chemicals,
Sri Majjigouri Chemical Lime Industries, Sumech Engineers (P) Ltd, Sri Kanakadurga Lime Chemicals,
Siddartha Lime Chemicals, Satish Steel Works, Sri Lakshmi Padmavathi Seva Sangam, Siva Packagings,
Sri Jyothsna Lime Industries, South India Lime Product, Taiko Chandernagar Chemicals (P) Ltd, Team;
Engineers (P) Ltd, Udhayabhanu Lime Village Industries, Vintech Controls & Devices (P) Ltd, Vertex
Chemical Industries, Voltamp Transformers (P) Ltd, Coral Rewinding Industries, Navaneetham Agencies
and Sri Gown & Co.
43
17. The Net Increase in Revaluation of Assets amounting to Rs.30045.71 lakhs is credited to Revaluation
Reserve. The details are as under: (Rs. In lakhs)
Particulars
Net Block
As on
30.06.2003
Land
Buildings
Plant and Machinery
Total
1323.60
4323.01
10875.62
773.69
17295.92
Value as
Per Approved
Valuer
5350.36
11107.23
29069.46
1814.58
47341.63
Revaluation
Reserve
4026.76
6784.22
18193.84
1040.89
30045.71
i)
As per terms of the Package approved under Corporate Debt Restructuring (CDR) Scheme, the
above assets have been revalued to represent the fair market value of the assets of the Company,
based upon the valuation report of an approved valuer.
ii)
The lands have been revalued on the basis of guideline/market value. Buildings, Plant and
Machinery and Electrical Installations have been revalued taking into consideration replacement
value, age of the asset and estimated remaining useful life.
18. New Process Development Expenses:1.

2.
3.
A.
1.
2.
3.
4.
5.
Raw Sugar Imported

Raw Sugar issued for Refining
Closing Stock of Raw Sugar
Expenses
Consumption of Raw Sugar
Transport, Loading and Unloading and Other Expenses
Packing Materials.Chemicals and Power & Fuel
Interest on Working Capital Loans
Other Direct Expenses
B.
(a)
1.
2.
Total Expenses
Realisation of Production
Sales
Sugar Sales (including excise duty)
Molasses Sales (including excise duty)
Total Realisation
Less : Excise Duty Paid
(A)
6190.91
(a)
5514.89
93.16
5608.05
315.32
5292.73
Closing Stock (including excise duty)

Sugar
.
Molasses
Total Value of Stock
Less : Excise duty provision on Stock
Closing Stock Value
Total Realisation of Production
(a+b )
Net deficit
(A - B )
Value of Advance licence / DFRC adjusted
(b)
1.
2.
44
Quantity (in MTs)

72200.000
56121.250
16078.750
(Rs. in lakhs)
4080.35
759.48
623.97
328.15
398.96
(b)
(B)
653.65
5.79
659.44
27.23
632.21
5924.94
-265.97
2830.76
-3096.73

19. Deferred Tax
Deferred tax Liability:
Arising out of depreciation on Fixed Assets (net)
Difference in treatment of expenses/income (net)
Deferred tax Asset:
Carried forward losses / Unabsorbed depreciation
Arising out of non payment of taxes, duties etc.
Net Amount
20. Earnings per Share:
a) Profit after Tax (Rs. in lakhs)
b) Less : Preference Dividend (Rs. in lakhs)
c) Total
d) The weighted average No. of Equity Shares
e) The nominal value per Equity Share
0 Earnings per Share - Basic and Diluted
(Rs. in lakhs)
5079.83
984.62
5168.66
339.75
2002-2003
(5430.76)
(5430.76)
27732066
10
6064.45
5508.41
556.04
2001-2002
463.71
152.00
311.71
13709326
10
2.27
21. Disclosure as required under clause 32 of the listing agreement:

Amount of loans / advances in the nature of loans outstanding from Subsidiaries and Associates during 2002 - 03
Name of the Company
Outstanding
as on
30.06.2003
Maximum
Investment
amount
in the shares
of the
Outstanding
company
during the year
Investment
in the shares of
subsidiaries of
the company
Rs. In Lakhs
Rs. In Lakhs No. of Shares No. of Shares
a) Subsidiary
1145.75
2164.60
15528850
b) Associates
Sri Chamundeswari Sugars Limited
812.40
812.40
1245200
22. Contingent Liability:

a) Sales-tax demands against the company aggregating to Rs.903.40 lakhs are disputed and appeals are pending.
b) Demands against the company for payment of Excise duty aggregating to Rs.153.09 lakhs are disputed
and appeals are pending.
c) A writ petition has been filed before the Hon'ble High Court of Madras challenging the increase in
the rate for Administrative service fee for Alcohol produced and the Hon'ble High Court of Madras
has quashed the orders of the Govt. of Tamilnadu. However the Govt. has preferred appeal against the
orders of the High Court of Madras. The amount under dispute is Rs.408.10 lakhs.
d) The Company has provided Corporate Guarantees to the extent of Rs.100 lakhs for loans obtained by
a Body Corporate.
e) The Company has provided Corporate Guarantees aggregating to Rs.4345.22 lakhs to secure the
loans availed by Cane Growers' Societies at Orissa. The aggregate of the loans repayable by the
above Societies as on 30.6.2003 is Rs. 4377.93 lakhs including interest thereon.
f) The Company has provided guarantee to the extent of Rs.50 lakhs to Housing Development Finance
Corporation Ltd., for sanction of loan to the employees of the Company. The aggregate amount of loan
outstanding as on 30.6.2003 is Rs.1.98 lakhs.
g) The company has provided guarantee to the extent of Rs.l 1595 lakhs for securing loans / debentures/
working capital limits availed by Sakthi Auto Component Limited, the subsidiary company.
h) As per the directions of the Hon'ble High Court of Madras, the Govt. has refixed the rates applicable
for water drawn for industrial purposes vide GO Ms No 474 dated 13.11.2001. A writ petition has been
filed before the Hon'ble High court of Madras challenging the increase in the rate from Rs. 60 per
1000 M3 to Rs.500 per 1000 M3 and the method of computation for Sakthinagar Unit. The Hon'ble
High court of Madras has directed the company to pay at an interim rate of Rs. 300/- for the actual
consumption and file an undertaking to pay the balance if the writ petition is dismissed. The writ
petition is pending disposal and the amount under dispute is Rs. 179.35 lakhs.
23. Wherever necessary, figures for previous year have been regrouped or reclassified to confirm to this year's
grouping or classification.
45
SCHEDULE - 24
ADDITIONAL INFORMATION PURSUANT TO PART II OF SCHEDULE VI
TO THE COMPANIES ACT, 1956
Licensed Capacity
30.06.2003 30.06.2002
Installed Capacity
30.06.2003 30.06.2002
Product
Units
Sugar - (Unit at Sakthinagar)
Tonnes of Cane Crush / Day
6000
6000
6000
6000
Sugar - (Unit at Sivaganga)
4000
4000
4000
4000
Sugar - (Unit at Haripur)
2500
2500
1500
1500
27500
27500
27500
10000
10000
10000
Industrial Alcohol (Sakthinagar Unit)
Kilo Litres per annum
27500
Industrial Alcohol - (Haripur

Unit)
Kilo Litres per annum
10000
PVC Corrugated Rings
Tonnes per annum
800
800
800
800
Tonnes per annum
100000
100000
90000
90000
Soyabean
Note : The Company has taken 1250 TCD Sugar Unit from a Co-operative Society in the State of Orissa under
Management Contract.
RAW MATERIALS, STORES AND SPARES
Purchase
Value
1)
2)
Spares and Components

a) Impored C.I.F.
Value of Imports on C I F basis

a) Stores and Components
21.23
(21.63)
77.41
(54.63)
b) Capital Goods
4)
5)
% of total
Consumption
(Rs. in lakhs)
Raw Materials:a) Indigenous
b) Indigenous
3)
Consumed
Value
Earnings in Foreign Exchange

FOB Value of Exports
6189.65
(14803.59)
Expenditure in Foreign Exchange

a) Subscription
0.37
(0.72)
4.14
(28.29)
2.86
b) Consultancy Charges
c) Sales Promotion
(-)
26.88
d) Travelling
(23.17)
46
16390.04
(21194.29)
100.00
(100.00)
5.09
(9.57)
771.26
(2314.13)
0.66
(0.85)
99.34
(99.15)
Molasses
Tonnes
Newsprint/Maplitho/Glazed paper
Reams
Soyabean
Tonnes
Soya Flakes
Tonnes
Sugar (Bagged)
Quintals
Industrial Alcohol
Litres
Bio-Earth
Tonnes
Finished Products:
Sugarcane
Tonnes
Raw Materials:
(2)
Products and units
SI.
No.
(1)
884.960
(971.675)
2620791
(1360865)
491734
(1313270)
(-)
2636.564
(1259.836)
320.063
(503.002)
30640.794
(34086.159)
(-)
Opening
Stock
(3)
1472547.310
Purchases/
Transfer
(5)
12551.110
(17890.000)
27842580
(28732604)
1925054
(1933022)
(-)
(-)
(-)
83995.888
(87286.040)
(-)
(-)
185900
(124580)
2128.191
(1185.084)
15281.770
(20729.955)
2035.020
(1979.250)
103544.350
(112106.165)
(-) (1914452.735)
(4)
Production
Schedule - 24 (Contd.)
STATISTICAL PARTICULARS FOR THE YEAR ENDED 30.6.2003
(-)
(-)
(-)
Value of
Consumption
(7)
(-)
(-)
(-)
317.30
(153.37)
2199.250
(2245.65)
12.04
(11.78)
1389.02
(1697.29)
12472.44
(17086.20)
(Rs. in lakhs)
2128.191
(1185.084)
16290.507
(19236.171)
2267.451
(2162.189)
103664.000
(119111.000)
1472547.310
(1914452.735)
(6)
Consumption
1434234
(2620791)
504.870
(884.960)
12931.200
(17976.715)
141826
(491734)
(-)
1411.735
(2636.564)
87.112
(320.063)
38839.032
(30640.794)
(-)
Closing
Stock
(9)
29029137
(27472678)
2460862
(2879138)
(-)
216.092
(117.056)
(-)
75678.000
(83726.570)
(-)
Sales/
Transfer
(8)
SI.
No.
.<-;
(.;
Fertilizers
- Tonnes
Magazines
No.of copies printed
Others
g) RBD Palmolein
Tonnes
369.045
(375.181)
<-)
172000
'(162500)
2915.306
(1318.281)
128.294
(478.158)
f) Husks
Tonnes
59570
(62981)
141.597
(150.095)
7.935
(29.630)
e) Soap, Gums and Waste Oil

Tonnes
2380.650
(4563.152)
(-i
(11.492)
(-)"
(-)
3480.139
(2744.438)
116.091
(59.925)
d) Soya Chunks
Tonnes
(-)
(-)
(-)
(-)
(-)
(-)
(-)
2128.191
(1185.084)
5893.620
(10597.223)
491.230
(374.698)
c) Flour and Flakes

Tonnes
(-)
(-)
257.335
(79.278)
10.000
(5.792)
b) Soya Meal
Tonnes
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(Rs. in lakhs)
Value of
Consumption
(6)
(7)
Consumption
Purchases/
Transfer
(5)
2715.305
(3170.294)
(4)
Production
111.471
(17.301)
Opening
Stock
(3)
a) Soya Oil
Tonnes
Soya Products
(2)
Products and units
419.569
(491.230)
1.844
(116.091)
10.575
(7.935)
8093.472
(11665.775)
3594.386
(2688.272)
138.957
(171.790)
64933
(59570)
299.903
(369.045)
2449.792
(4569.288)
166637
(165911)
(11.492)
(128.294)
(10.000)
267.335
(75.070)
3043.600
(1668.145)
20.084
(111.471)
Closing
Stock
(9)
2806.692
(3076.124)
Sales/
Transfer
(8)
5893.620
(10597.223)
3480.139
(2744.438)
141.597
(150.095)
2915.306
(1318.281)
491.230
(374.698)
116.091
(59.925)
7.935
(29.630)
128.294
(478.158)
d) Soya Chunks
Tonnes
e) Soap, Gums and Waste Oil

Tonnes
Fertilizers
- Tonnes
Magazines
No.of copies printed
Others
g) RBD Palmolein
Tonnes
f) Husks
Tonnes
369.045
(375.181)
59570
(62981)
(-)
172000
' (162500)
<-; <-;
257.335
(79.278)
10.000
(5.792)
b) Soya Meal
Tonnes
c) Flour and Flakes

Tonnes
2715.305
(3170.294)
Soya Products
(4)
Production
111.471
(17.301)
(2)
0)
Opening
Stock
(3)
a) Soya Oil
Tonnes
Products and units
SI.
No.
2380.650
(4563.152)
(-)
(11.492)
(-)
(-)
(-)
2128.191
(1185.084)
-'
(-)
(-)
Purchases/
Transfer
(5)
'
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(Rs. in lakhs)
Value of
Consumption
(6)
(7)
Consumption
10.575
(7.935)
138.957
(171.790)
2449.792
(4569.288)
166637
(165911)
(11.492)
299.903
(369.045)
64933
(59570)
<-;
(128.294)
1.844
(116.091)
3594.386
(2688.272)
3043.600
(1668.145)
419.569
(491.230)
(10.000)
20.084
(111.471)
Closing
Stock
(9)
8093.472
(11665.775)
267.335
(75.070)
2806.692
(3076.124)
Sales/
Transfer
(8)
Press Mud
Tonnes
Power
Units
Opening Stock
Closing Stock
Tonnes
Tonnes
Litres
Litres
2234160
(243362)
46409.736
(62553.564)
(-)
(-)
4980.680
(1467.585)
Purchases/
Transfer
(5)
()
(526)
(326)
326
337
S. BASKAR
Company Secretary
P.R. VITTEL
Partner
Coimbatore
30th September 2003
N. MAHALINGAM
Chairman

,
Figures in brackets are that of the previous year.
(22937)
367789
33675
(-)
2234160
(243362)
46409.736
(62553.564)
M. MANICKAM
Vice Chairman and
Managing Director
(-)
(-)
7808.100
(1467.585)
(Rs. in lakhs)
432331.122 *
(517754.417)
(-)
(-)
Sales/
Transfer
(8)
Value of
Consumption
(6)
(7)
Consumption
* Comprises of Bagasse supplied to TNPL and consumed in our Boiler for Steam raising.
3. Process stock molasses
(4)
Production
426349.666
(526016.549)
2. Industrial Alcohol Production and Stock includes

Ethanol (Anhydrous Alcohol)
(-)
(-)
12308.876
(4046.744)
Opening
Stock
(3)
Note :
1. Industrial Alcohol Storage/conversion loss
Baggase
Tonnes
(2)
Products and units
SI.
No.
(1)
(-)
(-)
3500.000
(12308.876)
Closing
Stock
(9)
SEGMENT INFORMATION FOR THE YEAR ENDED 30.6.2003

(Rs. in Lakhs)
REVENUE:-
Industrial
Alcohol
Soya
Products
Total
23126.10
3865.32
3471.69
30463.11
Inter Segment Sales
431.90
0.30
432.20
Operating Income
897.36
7.24
12.65
917.25
24455.36
3872.86
3484.34
31812.56
-1687.40
1252.80
-244.94
-679.54
External Sales
Total Revenue
Sugar
RESULT
Segment Result
17.82
Unallocated Corporate Expenses/Income (Net)

Operating Profit
-697.36
Interest Expenses
4971.04
Interest Income
352.63
Income Taxes
-5315.79
Profit from Ordinary Activities

Segment Assets
45328.95
7898.80
5051.68
59574.47
Total Assets
Segment Liabilities
58279.43
1295.04
Unallocated Corporate Assets
30166.03
1821.83
31987.86
Unallocated Corporate Liabilities
210.16
Deferred Tax Liability
556.04
32754.06
Total Liabilities
Capital Expenditure
5083.13
247.33
46.12
5376.58
Depreciation
'935.16
184.56
227.77
1347.49
16774.00
3872.86
1918.99
22565.85
7681.36
1565.35
9246.71
Non-Cash Expenses other than Depreciation

SECONDARY:Revenue by Geographical Market
India
Outside India
50
'

RELATED PARTIES DISCLOSURE
I
RELATED PARTIES
A SUBSIDIARY COMPANY
Sakthi Auto Component Ltd
B
KEY MANAGERIAL PERSONNEL

Dr N Mahalingam, Chairman
Sri M Manickam, Vice Chairman and Managing Director
RELATIVES OF KEY MANAGEMENT PERSONNEL

Dr N Mahalingam
Dr. N Mahalingam
Sri M Manickam
Son
Son
Sri M Srinivaasan
Son
Smt. Karunambal Vanavarayar
Daughter
II
Sri M Manickam
Father
Brother
Brother
Sister
ENTERPRISES
Sri Chamundeswari Sugars Limited
ABT Limited
RELATED PARTY TRANSACTIONS :
(Rupees in lakhs)
SUBSIDIARY COMPANY
Interest Receipts
Sale of Store Materials
Sale of Denatured Spirit
67.89
1.50
1.37
KEY MANAGERIAL PERSONNEL

Managerial Remuneration
10.65
12.45
Outstandings
Debit
Credit
(Rupees in lakhs)
1145.75
46.51
RELATIVES OF KEY MANAGEMENT PERSONNEL

Sitting Fees
'
Interest paid on Fixed Deposit
0.18
0.38
325.43
ENTERPRISES
ICD Receipts
Interest Receipts on ICD
Rent Receipts
Interest
Transport Charges
Vehicle Maintenance and other Service Charges
Rent
Electricity Charges
HP Charges
300.00
92.88
3.00
0.51
294.56
7.39
4.98
1.62
45.82
40.96
51
133.44
STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT 1956

RELATING TO SUBSIDIARY COMPANY
1.
Name of the subsidiary company
2.
Latest financial year end of the subsidiary
30th June 2003
3.
a)
b)
4.
Number of shares held in the subsidiary company

by Sakthi Sugars Limited
100%
Percentage of holding
Net aggregate of profit (loss) of the subsidiary

company so far as it concerns the members of
i.
1,55,28,850 Equity shares of

Rs.10 each.
(Rs. in lakhs)
Dealt with in the accounts of Sakthi Sugars Limited

(a) for the subsidiary's current financial year
ended 30.6.2003
(b) for the previous financial year since it became
subsidiary of Sakthi Sugars Limited
ii. Not dealt with in the accounts of Sakthi Sugars Limited
5.
6.
(a) for the subsidiary's current financial year

ended 30.6.2003
(-) 491.09
(b) for the previous financial year since it became

subsidiary of Sakthi Sugars Limited
(-) 472.31
Changes in the interest of Sakthi Sugars Limited

between the end of subsidiary's financial year and
that of Sakthi Sugars Limited
Not Applicable
Material changes between the end of the

subsidiary's financial year and 30.6.2003
Not Applicable
(a) Fixed assets (net additions)

(b) Investments (net)
(c) Moneys lent by subsidiary
(d) Moneys borrowed by the subsidiary company other
than for meeting current liabilities
N. MAHALINGAM
Chairman
Coimbatore
M. MANICKAM
Vice Chairman and Managing Director
S. BASKAR
Company Secretary
30th September 2003
52

BALANCE SHEET ASBSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE
Registration Details
Registration No.
Balance Sheet Date
II.
State code
000396
30.06.2003
Capital raised during the year (Amount in Rs. Thousands)

Public Issue
Nil
Bonus Issue
Nil
III.
Nil
Total Liabilities
8089341
Total Assets
| 8089341 ~~|
Paid up Capital
|
397321|
Deferred Tax Liability
I 5 5 6 0 4 I
Secured Loans
Reserve & Surplus

| 3114347|
| 3745885 |
Net Fixed Assets
|
5430263 ~1
Net Current Assets
| 2079529 |
Accumulated Losses
|
Nil |
V.
Position of Mobilisation and Deployment of Funds

(Amount in Rs. Thousands)
SOURCES OF FUNDS
IV.
Rights Issue
I
Nil
I
Private Placement
Performance of the Company (Amount in Rs. Thousands)

Turnover
I
3222135 |
Profit before Tax
|
-531577 ~|
Earnings per Share
Unsecured Loans
|
776184 ~~|
Investments
I
516053 ~~|
Misc. Expenditure
I 6 3 4 9 6 I
Total Expenditure
3327435 |
Profit after Tax
|
-543076 |
Dividend Rate %
Generic Names of Three Principal Products/Service of the Company (as per Monetary Terms)
Item Code No. (ITC Code)
I
17.01
|
Product Description
Product Description
I
Sugar
|
|
22.07 ~"1
[Industrial Alcohol"

Product Description
I
I5ffj
I
| Soya Products |
53
4
CASH FLOW STATMENT FOR THE YEAR ENDED 30th JUNE 2003
2002-2003
(Rs. in lakhs)
A. Cash Flow from Operating Activities
Profit before tax
Depreciation
Interest
Miscellaneous Expenses & Other exp.written off
Loss on Sale of Assets
Investment Income :
Dividend
Interest
Public/Debenture issue exp. written back
Profit on Sale of Assets
(5,315.77)
482.51
1,323.32
4,971.04
262.82
6.42
1,278.58
6,330.22
264.67
8.67
(3.45)
(352.64)
(176.14)
(1.34)
(3.47)
(895.12)
(9.50)
6,030.03
714.26
Operating Profit Before Working Capital changes

Adjustment for:Inventories
Debtors
Other Current Assets
Loans and Advances
Liabilities
Expenses relating to Prior Years
New Process Development Expenditure incurred
Misc Expenditure Paid
2,398.57
(768.61)
3,385.70
(1,146.22)
2,022.26
(113.67)
(3,096.73)
(66.80)
6,974.05
7,456.56
11,408.61
(245.23)
.(7,174.01)
2,194.48
(7,379.72)
(18.02)
(143.36)
2,614.50
3,328.76
(3,592.82)
(264.06)
Cash Generation From Operation

Interest Paid
Net Cash From Operating Activities
B.Cash Flow From Investment Activities
Purchases of Fixed Assets
Sale of Fixed Assets
Investment Income
Sale / Purchase of Investment
C.Casb Flow from Finance Activities
Issue of Equity Shares
Premium on Issue of Equity Shares
Net Increase in Borrowings
Dividend Paid
2001-2002
(Rs. in lakhs)
(5,413.59)
31.93
356.09
(1,357.57)
49.84
898.59
0.50
(5,025.07)
5,403.09
(155.54)
5,247.55
(41.58)
788.78
747.20
Net increase in Cash & Cash Equivalents

Opening Balance - Cash & Cash Equivalents
Closing Balance - Cash & Cash Equivalents
For P.M. RAGHAVENDRA RAO & Co.
N. MAHALINGAM
Chairman
P.R. VITTEL
Partner
S. BASKAR
Company Secretary
54
(409.14)
705.00
303.15
(123.03)
(253.05)
Coimbatore
30th September 2003
(1,357.25)
6,099.31
(6,192.50)
(93.19)
632.07
129.74
659.04
788.78
M. MANICKAM
Vice Chairman and
Managing Director

COMPANY'S PERFORMANCE AT A GLANCE
YEAR
SUGARCANE
SUGAR
CRUSHED
PRODUCED
(TONNES)
(TONNES)
RECOVERY
%
TURNOVER
^
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982*
1983
1984
1985
1986
1987
1989**
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999*
. 2000
2001
2002
2003
332794
202641
195997
332822
460457
434862
526103
687892
813430
1002544
311774
298725
366487
767844
624399
648514
1121964
803716
336704
697491
704626
496762
934601
1122219
1130173
1091843
1115158
956993
1724621
2345289
2106840
1569438
2607462
2161594
2316874
1914453
1472547
28741
16750
17614
27955
38704
40159
50063
59691
67776
84494
28025
22692
33883
64299
54680
57236
104305
79295
34375
70103
72150
48791
96145
108421
107984
103723
107158
89163
159199
211267
191940
143991
246609
212600
233278
193302
192505***
8.64
8.27
8.99
8.40
8.41
9.23
9.52
8.72
8.33
8.43
8.98
7.60
9.25
8.37
8.76
8.83
9.30
9.87
10.12
10.05
10.24
9.82
10.28
9.66
9.55
9.50
9.61
9.36
9.28
9.00
9.11
9.21
9.43
9.86
10.04
10.04
9.80
PROFIT
DEPREBEFORE CIATION
DEPRN
. . .f l R i i i w Mi n Ifikhsl
328.24
346.44
346.60
520.65
536.07
692.62
1112,43
1358.41
1779.28
2324.35
1395.33
653.64
706.32
1201.64
2323.30
2400.96
3861.03
3371.42
3063.41
3211.28
3739.00
3647.90
5087.15
8762.84
7474.44
11200.64
11547.77
18109.42
21701.32
33568.19
33442.13
36753.07
40788.52
36393.04
45197.53
45022.47
32221.35
18.47
3.08
74.97
31.09
10.30
55.05
135.34
67.83
72.04
128.52
19.20
-98.%
-27.36
52.40
. 303.52
138.32
322.10
248.52
. 109.28
297.71
211.46
173.62
849.45
989.65
801.55
1010.49
1027.03
1521.21
1859.60
2953.13
2022.05
2478.28
2298.23
2102.55
1596.80
1791.99
-3968.28
11.63
12.78
14.90
13.74
15.23
20.04
29.89
34.66
46.99
65.61
64.00
58.24
67.22
99.89
194.78
108.20
128.91
116.05
150.86
249.08
377.09
394.37
409.11
411.07
489.38
782.45
857.58
1019.11
1414.47
1860.97
1485.66
1272.83
1309.48
1347.49
GROSS
PROFIT EQUITY
AFTER DIVIDENI) BLOCK
DEPRN
%
^
(Rs. in lakhs)
6.84
-9.70
60.07
17.35
-4.93
35.01
105.45
33.17
25.05
' 62.91
-44.80
-98.96
-27.36
52,40
245.28
71.10
222.21
53.74
1.08
168.80
95.41
22.76
600.37
612.56
407.18
601.38
615.96
1031.83
1077.15
2095.55
1002.94
1063.81
437.26
616.89
323.97
482.51
-5315.77
* 15 months period **18 months period *** Includes 48264 MT of sugar produced out of Raw Sugar Refined
****Including increase in value on account of revaluation of fixed assets Rs. 30045.71 lakhs
55
12
12
6
180.66
181.33
173.51
179.75
312.82
12
345.52
15
466.18
15
567.55
12
958.57
1014.43
1026.49
1020.98
1021.26
1037.86
12
1068.08
17.5
1207.00.
20
1396.35
15
1846.66
15
2024.62
16,
2122.82
15
2229.53
2443.58
30
4530.72
20
6101.95
20
6617.61
20
8540.39
20
11387.44
24
17649.21
24
18638.23
24
26042.75
20
30242.48
32548.89
35155.94
28394.91
; 29463.22
30771.78
61006.09****
SAKTHI AUTO COMPONENT LIMITED

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 30.6.2003
To the Members
Your Directors present their 5th Annual Report together with the audited financial accounts of the Company for the year
ended 30th June 2003.
FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2003
(Rs. in thousands)
Profit before interest and Depreciation
Less: Interest Charges
Depreciation on Fixed Assets
185890
166920
67984
234904
49014
17348
31666
Net loss for the year

Less : Deferred tax Asset
Add :
Loss brought forward from previous year

Prior year adjustment
52628
95
52723
84389
Loss carried over to Balance sheet

OPERATIONS
During the year under review, your Company has achieved a turnover of Rs.7686.77 lakhs (Rs.6043.36 lakhs) which is
27.19% is higher than that of the previous financial year. Future prospects show a positive sign in view of the increased
domestic demand for auto components from the major customers like Maruti Udyog, Hyundai Motors, etc . Apart from this,
as a major breakthrough, a valuable export order has been bagged from Delphi Energy & Chassis Systems, a subsidiary of
automobile giant General Motors, USA, for supply of steering knuckles and brake discs for their Mexico plant. The supply
is expected to commence in November 2003. In view of these developments, the prospects for the current year are expected
to be bright.
During the year, your Company has bagged National Safety Awards for three consequetive years, viz. 1998, 1999 and 2000
from the Government and Best Improvement Award for Delivery from Honda Seils Cars India Limited.
DIRECTORS
ICICI Bank Limited have appointed Smt. Smita Gune as their Nominee on the Board of the Company in the place of
Sri S Kishore, with effect from 19.8.2003. The Directors wish to place on record their appreciation of the services rendered
by Sri S Kishore during his tenure of office as Director of the Company.
The following Directors retire by rotation at the ensuing Annual General Meeting and are eligible for reappointment:
1.
Sri S. Chandrasekhar
2.
Sri M. Srinivaasan
FIXED DEPOSIT
Your Company has accepted 66 deposits amounting to Rs. 22.55 lakhs from the public. During the year under review
no amount was due and payable to the deposit holders as'on 30.6.2003.
AUDITORS
M/s P.N.Raghavendra Rao & Co., Auditors of the Company, retire at the conclusion of the ensuing Annual General Meeting
and are eligible for reappointment.
AUDIT COMMITTEE
The Audit Committee comprises of Sri M. Manickam, Sri M. Balasubramauiam and Sri S. Chandrasekhar.
CONSERVATION OF ENERGY
(a) Energy Conservation measures taken
NIL
(b) Additional investments and proposals, if any, being implemented for reduction of consumption of energy
An iavesment of Rs.7.30 lakhs is proposed to be made for installation of VFD for Dust Collector System and 300 KVA
capacitor bank to improve power factor.
(c) Impact of measures at (a) and (b) above for reduction of energy consumption and consequent impact on .the cost of
production of goods
There will be savings in consumption of power to an extent of about 20,000 units per month.
56

Particulars regarding consumption of energy, research and development, techology absorption and foreign exchange earnings
and outgo have been provided in Anncxure 1 to the Report
PARTICULARS OF EMPLOYEES
The Company has no employee drawing remuneration attracting the provisions of section 217(2A) of the Companies Act,
1956.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies Act, 1956, your Directors confirm :
a)
that in the preparation of the annual accounts, the applicable Accounting Standards have been followed other than
Accounting Standard 2 in respect of valuation of finished goods and that proper explanation for the material departure
has been provided in the Accounting Policies under Note No.5.
b)
that they have selected such accounting policies and applied them and made judgements and estimates that are
reasonable and prudent so as to give true and fair view of the state of affairs of the Company at the end of the financial
year and of the loss of the Company for that period.
c)
that they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with
the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities.
d)
that the appended annual accounts for the year ended 30th June 2003 are on a going concern basis.
AUDITORS REPORT
With reference to the Auditors' remarks, your Directors wish to state as under:
1. As regards delayed remittance of Provident Fund/E.S.I, dues, it is ensured that there would be no delay during the
current year and effective steps have already been initiated in this regard. PF arrears have been since remitted to the
appropriate authorities.
2. The application before Central Government for adopting Units of Production method of depreciation for the earlier year
is pending. On receipt of Government Order, further action will be taken.
3. Steps have been taken to appoint a qualified Company Secretary.
ACKNOWLEDGEMENT
Your Directors wish to place on record their appreciation of the valuable assistance and co-operation extended by the
Commercial Banks, Financial Institutions and Government authorities. They also wish to appreciate the dedicated service
rendered by officers, staff and workers of the Company.
By "Order of the Board
M.MANICKAM
Managing Director
Coimbatore
29th September 2003
ANNEXURE -1 TO THE DIRECTORS REPORT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003
FORM-A
Disclosure of Particulars with respect to conservation of Energy
PARTICULARS
A. POWER AND FUEL CONSUMPTION
ELECTRICITY
a) Purchased
Units
Total Amount (Rs.in thousands)
Rate/Unit (Rs.)
b) Own Generation
Units
Diesel Oil (Ltrs)
Total Consumption Value (Rs.in thousands)
Units per Litre of Diesel Oil
Rate/Unit (Rs.)
B. Consumption per unit of production - Unit/MT
CURRENT YEAR
57
PREVIOUS YEAR
26506868
119156
4.50
24869825
107127
4.31
4806
1474
5156
1473
31
27
3.26
6.52
1751
3.50
5.24
1745
FORM - B
Disclosure of particulars with respect to Technology Absorption
RESEARCH AND DEVELOPMENT (R & D)
1.
Specific areas in which R & D carried out by the Company
No specific research activity has been undertaken at present.
2.
Benefits derived as a result of the above R & D
Not applicable
3.
Future plan of action
Not applicable
4. Expenditure on Research and Development
a) Capital
}
b) Recurring
}
c) Total
} Nil
d) Total R & D expenditure
}
as a percentage of total turnover
}
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION:
1.
Efforts in brief, made towards technology absorption, adaptation and innovation

Nil
2.
Benefits derived as a result of the above efforts, e.g. product improvement, cost reduction, product development, import
substitution, etc.
Nil
3.
In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year)
following information may be furnished:
[a] Technology imported
Following technologies imported by the holding Company have been assigned to us upon takeover of the Foundry
from them:
i. Methods/designs for Gating and Runner/Raiser system for Disamatic Moulding machine from Disa
Technologies, Denmark,
ii. Converter process by using pure magnesium to produce S.G. iron castings from + GF + Foundry Stems,
Switzerland.
[b] Year of Import
i.
1995-96
ii. 1996-97
[c] Has technology been fully absorbed?
Yes
[d] If not fully absorbed, areas where this has not taken place, reasons therefor and future plans of action
Not applicable
FOREIGN EXCHANGE EARNINGS AND OUTGO
(Rs. in thousands)
Foreign exchange earned during the year
29486
Outgo:
1.
Subscription and Membership
188
2.
Import of
a. Capital Goods
3889
b. Spares and Repairs
2296
6185
3.
Technical Service Charges
970
4.
Professional consultancy charges
1884
5.
Royalty
3711
6.
Foreign Travel
125
13063
M. MANICKAM
Managing Director
Coimbatore
29th September 2003
58

AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed Balance Sheet of M/s. SAKTHI AUTO COMPONENT LIMITED as at 30.06.2003 and also
the Profit and Loss Account for the year ended on that date attached thereto and Cash Flow Statement for the year ended
on that date. These financial statements are the responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. Our audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. Our audit also includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for
our opinion.
1.
As required by the Manufacturing and other Companies (Auditor's Report) Order 1988, issued by the Government of
India:
i.
We find that the Company is maintaining proper records showing full particulars including quantitative details
and situation of fixed assets. As informed to us the fixed assets have been physically verified by the management
at reasonable intervals and no material discrepancies were noticed on such verification.
ii.
The fixed assets have not been revalued by the Company during the year.
iii.
According to our information physical verification has been conducted by the management at reasonable
intervals in respect of finished goods, stores, spare parts and raw materials.
iv.
In our opinion, procedures of physical verification of stocks followed by the management are reasonable and
adequate in relation to the size of the Company and the nature of its business.
v.
No material discrepancy has been noticed on physical verification of stocks, as compared to book records.
vi.
On the basis of our examination we are satisfied that valuation of stocks is fair and proper in accordance with
the normally accepted accounting principles and is on the same basis as in the preceding year.
vii.
The Company has not taken any loans secured or unsecured from companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956 other than unsecured loans from the holding
company. The rate of interest and other terms and conditions of such loan are prima facie not prejudicial to the
interests of the company.
viii
'iii.
The Company has not granted any loans secured or unsecured to companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
ix.
The employees to whom loans and advances in the nature of loans given by the company are generally repaying
the principal amount as stipulated and the interest wherever applicable.
x.
In our opinion there is an adequate internal control procedure commensurate with the size of the Company and
the nature of its business for the purchase of stores, raw materials including components, plant and machinery,
equipment and other assets and for the sale of goods.
xi.
The transactions of purchase of goods, materials and services made in pursuance of contracts or arrangements
entered in the register maintained under Section 301of the Companies Act, 1956, aggregating during the year
to Rs.50,000/- or more in respect of each party have been made at prices which are reasonable having regard
to the prevailing market prices for such goods, materials or services. There are no sale of goods, materials and
services to interested persons covered under Section 301 of the Companies Act, 1956.
xii.
According to our information there are no unserviceable or damaged stores, raw materials or finished goods
requiring provision for loss.
xiii.
The company has followed the directions issued by the Reserve Bank of India and the provisions of Section
58 A of the Companies Act 1956 and rules made there under in respect of deposits accepted by it.
xiv.
The Company is maintaining reasonable records regarding sale and disposal of scraps. The Company does not
have any realizable by - product.
xv.
In our opinion the Company has an internal audit system commensurate with its size and nature of its business.
59
xvi.
The maintenance of cost records has not been prescribed by the Central Government under Section 209(1 )(d)
of the Companies Act, 1956 for the goods manufactured by the company.
xvii.
Tlie Company lias remitted belatedly the PF contribution ofRs.21,86,900/- and ESI contribution ofRs.5,31,547/-.
The arrears as on the closing date towards PF is Rs.11,24,154/- and ESI is Rs.2,66,951/-.
xviii. There are no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty and
excise duty which are outstanding for more than six months from the date they became due.
2.
3.
xix.
As per our verification no personal expenses have been charged to revenue account.
xx.
The Company is not a Sick Industrial Company within the meaning of Clause (o) of sub-section (i) of Section
3 of the Sick Industrial Companies (Special Provisions) Act, 1985.
i.
Tlie Company does not have under its employment a qualified Company Secretary as required under section 383
A of the Companies Act, 1956.
ii.
During the year the Company has provided depreciation on Fixed Assets on Straight Line Method. In the
preceding two financial years the company has adopted Unit of Production Method which was not in accordance
with Schedule XIV of Companies Act,19S6. Tlie Company while changing the method of depreciation in accordance
with Schedule XIV has not provided for arrears of depreciation of the two preceding financial years amounting
to Rs.698.71 lakhs. On account of this the Written Down Value of Fixed Assets is more by Rs.698.71 laklis.
Further to our comments under Paras 1 and 2 above:

i
We have obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit.
ii
In our opinion proper books of accounts as required by law have been kept by the Company so far as appears
from our examination of the books.
iii
The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of
account.
iv.
The Balance Sheet and Profit and Loss Account dealt with by this report comply with the Accounting Standards
referred to in Section 211(3C) of the Companies Act, 1956, except
Accounting Standard 2 relating to the valuation of closing stock of Inventories. Closing stock of Finished
goods have been valued at Market rates instead of cost or net realizable value whichever is lesser as provided
in AS 2. If the closing stock of Inventories had been valued in conformity with Accounting Standard 2, the
value would be less by Rs,126.98 laklis and the loss of the company would be more by Rs.126.98 laklis.
v.
As per the information and explanations given to us, none of the directors of the Company is disqualified from
being appointed as a director under clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.
vi.
In our opinion and to the best of our information and according to the explanations given to us, the said accounts
give the information required by the Companies Act, 1956 in the manner so required and subject to pur remarks
in paragraphs l(xvii), 2, 3(iv) show a true fair* view in conformity with the accounting principles generally
accepted in India:
a.
In the case of the Balance Sheet, of the State of affairs of the Company as at 30.06.2003,
b.
In the case of the Profit and Loss Account, of the Loss for the year ended on that date and
c.
In the case of Cash Flow Statement, of the cash flows for the year ended on that date.
Place : Coimbatore
Date : September 29, 2003
P.R.VITTEL
Partner
60

BALANCE SHEET AS AT 30.6.2003
Schedule
No.
I.
SOURCES OF FUNDS :
(1) SHAREHOLDERS' FUNDS :
(a) Share Capital
(b)
(2)
Reserves and Surplus
155289
155289
309186
310563
464475
465852
1111605
50244
1097531
35033
LOAN FUNDS :
(a)
(b)
Secured loans
Unsecured loans
3
4
TOTAL OF 1 TO 2
II.
As at
As at
30.6.2002
30.6.2003
(Rs. in Thousands)
1161849
1132564
1626324
1598416
1475436
1462085
74492
1387593
229
1387822
APPLICATION OF FUNDS :
(1)
FIXED ASSETS:
Gross Block
Less : Depreciation
Net Block
Add: Capital Work in Progress
Net Block
142399
1333037
24084
1357121
(2)
INVESTMENTS
527
285
(3)
(i)
232620
122864
16135
587,6
112918
264802
121769
17376
3981
113581
490413
521509
286155
114575
215164
201262
89683
105083
82654
84389
57995
52628
11950
-5397
CURRENT ASSETS, LOANS AND ADVANCES:

(a) Inventories
(b) Sundry Debtors
(ii) LESS : CURRENT LIABILITIES AND PROVISIONS:

(iii) Amount due to Holding Company
8
9
10
11
12
Net Current Assets (i) - (ii+iii)

(4)
a)
b)
(5)
BALANCE IN PROFIT & LOSS ACCOUNT
13
DEFERRED TAX ASSET/LIABILITY
1626324
TOTAL OF 1 TO 5
1598416
Schedules 1 to 13 and Notes in Schedule 22 and 23 form part of this Balance Sheet
Vide our Report annexed

For P.N. RAGHAVENDRA RAO & CO.
PR. VITTEL
Partner
M. MANICKAM
Managing Director
Coimbatore
29th September 2003
61
M. BALASUBRAMANIAM
Director
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30.6.2003

Schedule
No.
I.
II.
INCOME:
Sales
Interest
Other income
Stock adjustment
Fiugres for the

Current year
Previous year
ended
ended
30.6.2003
30.6.2002
(Rs. in Thousands)
768677
14
15
16
EXPENDITURE:
Steel Scrap & Pig Iron Consumed:
i) Opening stock
ii) Purchases
Less: Closing stock
Excise Duty
Salaries, Wages and other Employees benefits
Interest Charges
Selling expenses
Any other expenses
Depreciation
HI.
PROFIT/LOSS FOR THE YEAR
IV.
PRIOR YEAR ADJUSTMENT(NET)
V.
DEFERRED TAX ASSET/LIABILITY (-)
-20366
604336
50
3089
79719
753979
687194
18862
104492
15882
97003
123354
8976
112885
18862
114378
258862
90639
32433
166920
49187
22590
67984
94023
260699
95047
30274
161357
29005
13118
39841
802993
723364
- 49014
-36170
17
5651
17
18
19
20
21
95
17348
-5397
VI.
BALANCE OF LOSS BROUGHT FORWARD FROM PREVIOUS YEAR
-52628
- 11061
VII.
BALANCE OF LOSS CARRIED OVER TO BALANCE SHEET
- 84389
- 52628
Schedules 14 to 21 and Notes in schedule 22 and 23 form part of this Profit and Loss Account
" For P.N. RAGHAVENDRA RAO & CO.
P.R. VITTEL
Partner
Coimbatore
29th September 2003
M. MANICKAM
Managing Director
62
M. BALASUBRAMANIAM
Director

As at
As at
30.6.2002
30.6.2003
(Rs in Thousands)
SCHEDULE - 1
SHARE CAPITAL :
Authorised
1,60,00,000 Equity Shares of Rs. 10 each
Issued
1,55,28,850 Equity Shares of Rs. 10 each
Subscribed and Paid up
1,55,28,850 Equity Shares of Rs.10 each fully paid up
(Of the above shares, 1,55,28,143 shares have been allotted as fully
paid up for consideration other than cash pursuant to a contract with
the holding company)
(No. of Shares held by the holding Company - 1,55,28,850)
TOTAL
SCHEDULE - 2
SHARE PREMIUM ACCOUNT:
Balance as per last Balance sheet
Less : Public/Debenture Issue Expenses Adjusted:Earlier Years
Current Year
TOTAL
SCHEDULE - 3
SECURED LOANS:
A. DEBENTURES
14.50% Secured Redeemable Non-convertible Debentures
TOTAL (A)
B.
LOANS AND ADVANCES:
FROM BANKS
Hypothecation Loans for working capital
Term Loan from Industrial Development Bank of India
Interest accrued and due on the above loans
FROM OTHERS
Hire Purchase loan
TOTAL (B)
TOTAL (A+B)
SCHEDULE - 4
UNSECURED LOANS
Fixed Deposits
Other Loans and Advances
TOTAL
SCHEDULE - 5
FIXED ASSETS
1.
2.
3.
4.
5.
Asset,
Addition
2
918
94975
222101
1059881
82914
6656
7467
1442
920 1475436
423
24084
1343 1499520
313 1462314
63
155289
155289
155289
155289
155289
155289
310563
310563
897
480
309186
310563
500000
7563
507563
500000
500000
184907
2188
163039
730
385000
10716
385000
20083
1148
604042
1111605
46388
2374
597531
1097531
35033
35033
(Rs. in Thousands)
ration ^ ^
Land
94975
Buildings
. 220774
1327
Plant And Machinery
1050932
8951
Electrical Installation
82114 1718
Office Equipment &
Furniture And Fixtures
6135
521
6. Laboratory Apparatus
5713
1754
7. Motor Vehicles
1442
Total
1462085
14271
8. Work In Progress
229
24278
Total For The Year
1462314
38549
Total For The Previous Year 1443303
19324
160000
2255
45482
2507
50244
GROSS BLOCK
No.
160000
8021
60733
4570
737
269
162
74492
74492
34652
NET BLOCK
DEPRECIATION
For the ..,,,
Upto
As on
As on
year Wlthdrawn
30*1003
30.6.2002
30.6.2003 '
7231
55606
3939
77
15252
116339
8432
746
319
143
67984
77
1483
588
305
142399
67984
39841
77
1
142399
74492
94975
212753
990199
77544
94975
206849
943542
74482
5398
5444
1280
1387593
229
1387822
1408651
5173
6879
1137
1333037
24084
1357121
1387822
As at
30.6.2003
As at
30.6.2002
(Rs. in Thousands)
282
282
242
524
282
SCHEDULE - 6
INVESTMENTS (TRADE) - LONG TERM (AT COST)
A.
Quoted:In fully paid Equity Shares:a.
Punjab National Bank

9100 shares of Rs.10 each
b.
Canara Bank
6900 shares of Rs.10 each

B.
Unquoted:1.
In Government Securities:
National Savings Certificates (Vlllth Series)
Aggregate of Un Quoted Investments
TOTAL
3
3
527
285
31121
33050
187677
207762
8976
18862
3
3
Note:- Market Value of quoted Investments as on 30th June, 2003 is Rs. 2073 (439)
SCHEDULE - 7
INVENTORIES
Stores and spares & Others
STOCK-IN-TRADE:
i)
Finished goods:
Iron Castings
ii)
Raw materials
Steel scrap, pig iron and others
Stock in Process:Iron Castings in Process
TOTAL
4846
5128
232620
264802
SCHEDULE - 8
SUNDRY DEBTORS:
a)
Unsecured - considered good:

i)
Debts outstanding for a period exceeding six months
ii)
Other debts
TOTAL
SCHEDULE - 9
CASH AND BANK BALANCES:
i)
Cash on hand
ii)
In Current accounts with Scheduled Banks
TOTAL
SCHEDULE - 10
OTHER CURRENT ASSETS:
TOTAL
10399
2542
112465
119227
122864
121769
13
738
876
15246
1441
15197
16135
17376
5876
3981
5876
3981
SCHEDULE - 11
Unsecured:
(Considered good - recoverable
in cash or in kind)
6860
Advance recoverable in cash or in kind/value to be received

Tax Deducted at Source
605
Prepaid expenses
12009
94107
TOTAL
113581
64

As at
As at
30.6.2003
30.6.2002
(Rs. in Thousands)
SCHEDULE 12
CURRENT LIABILITIES AND PROVISIONS :
Current Liabilities:
Liabilities for purchases & Capital Expenditure
258509
183422
27646
31742
286155
215164
3933
3348
TOTAL
SCHEDULE 13
MISCELLANEOUS EXPENDITURE:
(To the extent not written off or adjusted)
3011
3764
221
273
515
643
74974
49967
82654
57995
Product Development Expenses

TOTAL
Figures for the

Current
Previous
year ended
year ended
30.6.2003
30.6.2002
(Rs. in Thousands)
SCHEDULE - 14
SALES:*
Iron Castings
Pattern Sales
768468
209
768677
602963
1373
604336
* Inclusive of Excise Duty

SCHEDULE - 15
OTHER INCOME :
Rent receipts
Profit on sale of fixed assets
Public/Debenture issue exp. Written back
Profit on sale of investments
Sundry credit balances written back
TOTAL
SCHEDULE - 16
STOCK ADJUSTMENT:
(A) OPENING STOCK:
Iron Castings in process
Iron Castings
(B)
CLOSING STOCK:
Iron Castings in process
Iron Castings
TOTAL (B) - (A)
65
414
13
1907
897
2407
13
207
1293
1539
50
5651
3089
5129
207761
17975
115196
212890
133171
4847
187677
5129 .
207761
192524
-20366
212890
79719
Figures for the

Current
Previous
year ended
year ended
30.6.2003
30.6.2002
(Rs. in Thousands)
SCHEDULE - 17
Consumption of stores & spares
Power and Fuel
Fettling charges
Rent
Hire charges
Rates and Taxes
Insurance
Repairs and Maintenance :
Building
Machinery
Vehicles
Others
Royalty
Bank Charges
TOTAL
SCHEDULE - 18
SALARIES, WAGES AND OTHER EMPLOYEES BENEFITS:
Contribution to P.P. and other funds
TOTAL
SCHEDULE - 19
INTEREST CHARGES:
Term Loans
Debentures
Others
TOTAL
SCHEDULE - 20
SELLING EXPENSES:
Additional sales tax
Packing materials
Freight and transport
TOTAL
SCHEDULE - 21
ANY OTHER EXPENSES:
Travelling expenses
Technical consultancy charges
Directors sitting fees
Auditors remuneration
Loss on sale of fixed assets
Deferred Revenue Expenditure Written off
Product Development expenses written off
Pre-Operative Expenses written off
Sundry debit balances written off
Share Issue Expenses written off
TOTAL
90666
119266
16575
153
4976
364
5607
93345
110734
18938
163
5594
378
5765
1110
11538
980
854
2569
4204
258862
1293
12867
1056
1236
4168
5162
260699
26370
2150
3913
32433
24679
2118
3477
30274
59406
74658
20495
12361
166920
"
48
12819
18976
17344
49187
164
8046
363
20432
29005
3341
1264
1976
1938
307
367
63
546
701
17
105
548
3658
1167
1821
1796
166
312
1836
689
17
72
6
208
487
~~
753
'
1
129
13118
666
OOO1
yyyy
753
5
22590
66
591 99
74115 .
15225
12818
161357

ACCOUNTING POLICIES
1. All ascertained income and expenses are accounted on accrual basis.
2. Depreciation has been provided on all assets under Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act 1956.
In the preceding financial year Depreciation had been provided on all assets (other than assets below Rs.5,000/-) under Unit of Production
Method. Due to above change in the method of providing depreciation, loss is more by Rs. 276.39 Lakhs.
3. Material consumption is net of MODVAT/CENVAT.
4. Valuation of Closing Stock:
a) Finished goods are valued at Market rate.
b) Process stock is valued at estimated cost.
c) Raw material is valued at average cost.
d) Stores and Spares are valued at monthly weighted average basis.
5. Finished Goods are valued at market rates instead of "cost or net realisable value, whichever is less" as prescribed in Accounting Standard-2,
since the Finished goods are manufactured at pre-determined contract rates. If the goods are valued in conformity with Accounting Standard2, the value of closing stock would be lesser by Rs. 126.98 Lakhs.
6. Gratuity liability to the employees on actuarial basis has been accounted.
7. Fixed assets are valued at cost net of MODVAT/CENVAT including all direct and indirect expenses relating thereto.
8. Investments are accounted at cost.
9. Expenses and income in foreign exchange are accounted for at the rate prevailing on the date of transactions. Profit/loss arising at the time
of settlement/restatement at the closing date is recognised in the year.
The expenditure incurred on issue of shares and debentures have been adjusted in Share Premium. Voluntary Retirement Scheme payments
have been treated as deferred revenue expenditure and is being written off over a period of five years. Restructuring Fees paid for Debentures
is deferred and is being written off over the original unexpired terms of debentures.
11. Product development charges are amortized and written off over a period of five years.
SCHEDULE - 22
NOTES ATTACHED TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED
30TH JUNE, 2003
1. 50,00,000 Secured Redeemable Non Convertible Debentures of Rs.lOO each allotted on 19th December 2000 are
redeemable with a premium of 10% in 26 quarterly instalments commencing from 15th January 2004. These debentures
are secured by:i)
charge by way of legal mortgage of company's land at Plot no.W/11, Mouje Bileshwarpura. Kalol Taluka,
Gandhinagar District of Gujarat State in favour of The Western India Trustee And Executor Co. Limited, the
Trustees, and
ii)
charge by way of Equitable mortgage of the Company's immovable properties and hypothecation of the Company's
movable properties (save and except book debts) including movable machinery, machinery spares, tools and
accessories, subject to prior charge created and/or to be created in favour of company's bankers on the company's
stock of raw materials, semi-finished, finished goods and consumable stores, (save and except assets exclusively
charged to Institutions/Banks for their outstanding assistance), both present and future, in favour of The Western
India Trustee And Executor Co. Limited, the Trustees, ranking pari passu with charges created in favour of IDBI.
iii) Corporate Guarantee provided by the holding company viz., M/s. Sakthi Sugars Limited.
iv) Personal guarantee by the Managing Director.
The aggregate amount of principal outstanding as on 30th June 2003 is Rs.5000.00 lakhs.
2.
The amount outstanding under Secured Loans from Financial Institution represents Term Loan of Rs.3957.16 lakhs
including interest thereon availed from IDBI. This loan is secured by: i)
charge by way of Equitable mortgage of the Company's immovable properties and hypothecation of the Company's
movable properties (save and except book d^bts) including movable machinery, machinery spares, tools and
accessories, subject to prior charge created and/or to be created in favour of company's bankers on the company's
stock of raw materials, semi-finished, finished goods and consumable stores, (save and except assets exclusively
charged to Institutions/Banks for their outstanding assistance), both present and future, in favour of IDBI ranking
pari passu with charges created in favour of The Western India Trustee And Executor Co. Limited, the Trustees
for Debenture holders.
ii) Corporate Guarantee provided by the holding company viz., M/s. Sakthi Sugars Limited.
iii) Personal guarantee by the Managing Director.
67
The amount outstanding under Hire Purchase loans aggregating to Rs.212.31 lakhs (including interest thereon) is
secured by hypothecation of machineries covered under the respective Hire Purchase Agreements. These loans are
further secured by corporate guarantee provided by the holding company viz., M/s. Sakthi Sugars Limited and guarantee
provided by the Managing Director. The principal amount outstanding is Rs.200.83 lakhs.
Working capital loan availed from M/s. Canara Bank is secured by paripassu first charge by way of hypothecation of
Finished Goods, Raw Materials, Stock in process, Stores and spares, Book Debts of the Company in their favour. The
loan is further secured by second charge created on the Movable and Immovable assets of the Company. This is also
secured by corporate guarantee provided by the holding company viz., M/s. Sakthi Sugars Limited and guarantee
provided by the Managing Director.
The aggregate amount of loan outstanding is Rs. 1517.70 lakhs.
Working capital loan availed from M/s. Lakshmi Vilas Bank Limited is secured by paripassu first charge by way of
hypothecation of Finished Goods, Raw Materials, Stock in process, Stores and spares, Book Debts of the Company
in their favour. This is also secured by corporate guarantee provided by the holding company viz., M/s. Sakthi Sugars
Limited and guarantee provided by the Managing Director.
The aggregate amount of loan outstanding is Rs.353.25 lakhs.
Rs. in thousands
6.
Tax deducted at source on interest receipts
7.
Estimated amount of contracts remaining to be executed

on capital account and not provided for
77424
Advance due from Officers (Senior Executives) of the Company
1200
Maximum amount due from officers (Senior Executives)

of the Company during the year
1200
8.
9.
Particulars of remuneration and perquisites to Directors :

(Rs. in thousands)
Salary
P.P. Contribution
Previous year
600
600
72
17
689
Ended
30.06.2002
72
Gratuity
29
701
Total
10.
Current Year
Ended
30.06.2003
(Rs. in thousands)
Fees paid/payable to Auditors :
As Auditors
Year Ended
30.06.2003
Year Ended
30.06.2002
40
40
30
20
In other Capacities:i)
Taxation
IS
ii) Tax audit work
15
5
"l05
iii) Certification Work

iv) Service Tax
Total
11.
9
3
72
Sundry Creditors include dues to Small Scale Industrial Undertakings amounting to Rs.l,05,83,614/-. Names of Small
Scale undertakings whose dues are outstanding for more than thirty days are Acids & Chemical Traders, Ajay Syscon
(P) Ltd, Aries Textile Syndicate, Bramwel & Co, Bharath Paper Conversions, Carton Creations, Engineering Components
India, Globel Mines, Gangai Karai Mineral, Guideway Engineering, Heatrain Services, Hydrochem Services, Helix,
68

Hi-tech Fab Equipments Co., Industrial Stores & Components, Jayalakshmi & Co., Kastwel Foundries, Leo Shellcasts
Industries, Mangalore Minerals (P) Ltd., Maruti Acetyline Company (P) Ltd., Mineral Pulverising Mills (P) Ltd., Nanda
Engineers, New Marketronika, Nagappa Paper Paackagings, Precise Hydraulics, QSE Engineering (P) Ltd., Ram
Oxygen (P) Ltd., Sakthi Poly Products, Sharda Silicate & Chemical Industries, South India Trading Company, Spring
India, Sri Divya Engineering Works, Sri Vivegha Engineering (P) Ltd, Shreeram Polyplast, Seal Jet Seals, Seenu
Precision Tooling System (P) Ltd., South India Chemicals, Swagath Urethane, Thooran Paper Products, Thooran
Distributors, Vigshan Tools, Vishwashanthi Merchandise (P) Ltd.
12.
Deferred Tax
Deferred tax Asset:
Rs. in thousands
93554
Arising out of non-payment of taxes, duties, etc.
161
93715

59842
21923
81765
Deferred tax Asset

13.
11950
Earnings per Share:

a)
2002-2003
2001-2002
-49109
-36170
-49109
-36170
Profit after tax (Rs. in 1000s)

Less:Preference Dividend
Total
b)
No. of Equity Shares
15582850
15582850
c)
The Nominal value per Equity Share
10
10
d)
Earning per share
14.
Contingent Liability:
i.
Under Export Promotion Capital Goods Scheme (EPCO), the amount of duty payable is Rs.868.51 lakhs, if the
export obligation is not fulfilled.
ii.
The charge in favour of M/s. IDBI/ICICI Bank on the company's assets provided for the debentures/term loans
availed by the holding company viz., Sakthi Sugars Limited (SSL), is continuing and the principal amount due
for payment by SSL is Rs.925.75 .lakhs.
15.
The figures have been rounded off to nearest thousands.
16.
Related parties disclosures as required under Accounting Standard on "Related Party Disclosures" issued by the
Institute of Chartered Accountants of India are given below:(I)
RELATED PARTIES :
A.
Holding Company
B.
Key Managerial Personnel
Sri. M.Manickam, Managing Director
C.
Relatives of Key Management Personnel
(1) Sri. M.Balasubramaniam (Brother)

(2) Sri M. Srinivaasan (Brother)
D.
Enterprises
(1) ABT Limited

(2) Sakthi Finance Limited
(3) Sri Chamundeswari Sugars Limited
69
(II) RELATED PARTY TRANSACTIONS :

Transactions
(Rs. in thousands)
Holding Company
Interest Payments
Store Materials Purchase
Denatured Spirit Purchase
Key Managerial Personnel :
Outstandings
(Rs. in thousands)
114575
6789
150
137
Relatives of Key Management Personnel :

Sitting fees paid
Enterprises :
Purchase of Wind Mill Power
Fettling Charges
Vehicle Service
691
29
40909
1232
46158
250
105
126
SCHEDULE - 23
ADDITIONAL INFORMATION PURSUANT TO PART II OF SCHEDULE VI TO THE COMPANIES ACT, 1956
Castings
Units
S.G. Iron
Graded Iron
Licensed Capacity
30.6.2003
30.6.2002
Tonnes per annum

Tonnes- per annum
14400
9600
14400
9600
Installed Capacity
30.6.2003
306.2002
14400
9600
14400
9600
RAW MATERIALS, STORES AND SPARES

Particulars
1)
Purchases
Raw Materials
Pig Iron,steel scrap and others
Quantity in Tonnes
Imported Value (Rs. In thousands)
Pig Iron, steel scrap and others
Spares and Components

Imported Value (Rs. In thousands)
Indigenous Value (Rs. In thousands)
3)
Value of Imports on C.I.F basis (Rs. In thousands)

a) Components and spare parts
b)
4)
5)
% of total
Consumption
3538
(13543)
9130(6107)
7.98
(6.50)
100954
(83460)
105248
(87916)
92.02
(93.50)
6639
(3998)
84027
(89347)
7.32
(4.28)
92.68
(95.72)
11298.619
(10630.15)
Indigenous Value (Rs. In thousands)

Pig Iron,steel scrap and others
2)
Consumed
2296
(3998)
3889
Capital goods
Earnings in Foreign Exchange (Rs. In Thousands)

FOB Value of Exports
25644
(61965)
Expenditure in foreign currency (Rs. In Thousands)

1. Royalty
2. Subscription
3. Professional and consultancy charges
4. Travelling expenses
2447
188
1884
62
4581
70

STATISTICAL PARTICULARS FOR THE YEAR ENDED 30.6.2003
SI.
No.
Products
Tonnes
Opening
Stock
Production
Purchases
Consumption
Value of
consumption
Sales
Closing
Stock
(Rs. in Thousands)
RAW MATERIALS
Pig Iron, Steel
scraps & others
1644.505
(1734.313)
10388.445 11298.619
(10540.337) (10630.145)
114378
(94023)
734.331
(1644.505)
FINISHED PRODUCTS
1.
S.G. Iron Castings
2347.896*
9310.807
(1891.847) (10296.381)
9524.817
(9840.332)
2133.886*
(2347.896)
2.
G.I. Iron Castings
776.580 *
5830.894
(449.233)
(3962.219)
5758.735
(3634.872)
848.739*
(776.580)
Includes Process Stock
Opening Stock
Closing Stock
S.G. Iron Castings
103.715
69.247
G.I. Iron Castings
52.335
67.328

For P.N. RAGHAVENDRA RAO & CO.
PR. VITTEL
Partner
M. MANICKAM
Managing Director
M. BALASUBRAMANIAM
Director
Coimbatore
29th September 2003
BALANCE SHEET ASBSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE

I
II.
III.
Registration Details
Registration No.
8751
Balance Sheet Date
30.6.2003
Capital raised during the year (Amount in Rs. Thousands)
Public Issue
Rights Issue
Nil
Nil
V.
State code [IFj
Bonus Issue
|
Nil
Position of Mobilisation and Deployment or Funds (Amount in Rs. Thousands)

SOURCES OF FUNDS
Total Liabilities
Total Assets
Paid up Capital
1626324
1626324
|
155289
Reserves & Surplus
Secured Loans
Unsecured Loans
309186
. 1111605
.
|
50244
APPLICATION OF FUNDS
Net Fixed Assets
1357121
Misc. Expenditure
82654
IV.
1
|
Investments
|
527
|
Deferred Tax Asset
11950
Net Current Assets

89683
Accumulated Losses
84389
Performance of the Company (Amount in Rs. Thousands)

Turnover
Total Expenditure
768677
|
802993
|
Profit after Tax
Earnings per Share
-49014
Profit before Tax

-49014
]
Dividend Rate %
Generic Names of Three Principal Products/Services of the Company (as per Monetary Terms]
87.08
Product Description
Auto Components
71
Private Placement
Nil
2002-2003
(Rs in thousands)
Profit before tax
Depreciation
Interest
Investment Income :
Interest
Miscellaneous Expenses & Other exp. written off
Debenture issue exp. written back
2001-2002
(Rs. in thousands)
(36170)
(49014)
67907
166920
39840
161357
(17)
(2407)
(13)
11412
(897)
548
(50)
1577
6
202730
166560
243453
194439

Adjustment for>
Inventories
Debtors
Loans and Advances
Liabilities
(81655)
2960
8861
(21968)
121265
(50223)
32182
(1095)
(1895)
663
(1 1600)
95
(36740)
(18390)
176049
(152505)
23544

Interest Paid
B. Cash Flow From Investment Activities
Investment Income
.
(19019)
8
SO
(282)
(38126)
385
2424
(242)
(19243)
(35559)
C. Cash Flow from Finance Activities
42843
10774
10774
(1241)
17376
16135

(20760)
145800
(172503)
(26703)
42843
(3103)
20479
17376

For P.M. RAGHAVENDRA RAO & CO.
P.R. VITTEL
Partner
M. MANICKAM
Managing Director
Coimbatore
29th September 2003
72
M. BALASUBRAMANIAM
Director

CONSOLIDATED FINANCIAL STATEMENTS OF SAKTHI SUGARS LIMITED
AND ITS SUBSIDIARY
valuation report of an approved valuer. The
land has been valued at guidance/market
value and building, plant and machinery and
electrical equipment have been valued taking
into consideration replacement value, age of
asset and estimated remaining useful life.
The difference between book value and
market value as per the valuer's report of
the revalued assets is Rs. 30,045.71 lakhs.
The other assets such as development of
property - Eco Friendly Trees, Molasses and
Alcohol Storage Tanks, Office Equipment,
Furniture and Fixtures, Laboratory Apparatus
and Motor vehicles are not revalued during
the year.
Whereas the Subsidiary Company has not
revalued its Fixed Assts.
The Parent Company's current year loss of
c)
Rs. 4,827.01 lakhs and new process
development expenses of Rs. 3,096.73 lakhs
have been adjusted against Capital Reserve,
which is not in conformity with the Guidance
Note issued by the The Institute of Chartered
Accountants of India and the generally
accepted accounting principles.
On the basis of the information and explanations
given to us and on the consideration of the separate
audit reports on individual audited financial
statements of Sakthi Sugars Ltd and its aforesaid
subsidiary, we are of the opinion that the said
Consolidated financial statements subject to our
remarks in para 4 above give a true and fair view in
conformity with the accounting principles in India:
a) in the case of the Consolidated Balance Sheet,
of the consolidated state of affairs of the
Company and its Subsidiary as at 30.6.2003,
b) in the case of the Consolidated Profit and
Loss Account, of the consolidated results of
operations of the Company and its
Subsidiary for the year then ended and
c) in the case of the Consolidated Cash Flow
Statement, of the consolidated Cash flows
of the Company and its Subsidiary for the
year then ended.
Auditors' Report on Consolidated Financial

Statements to the Board of Directors of Sakthi
Sugars Limited
1. We have examined the attached Consolidated
Balance Sheet of Sakthi Sugars Limited and its
Subsidiary Company as at 30th June 2003 and
the Consolidated Profit and Loss account for the
year ended on that date attached thereto and Cash
Flow Statement for the year ended on that date.
These financial statements are the responsibility
of the Company's management. Our responsibility
is to express an opinion on these financial
statements based on our audit.
2.
We conducted our audit in accordance with

generally accepted auditing standards in India.
Those standards require that we plan and perform
the audit to obtain reasonable assurance about
whether the financial statements are prepared, in
all material respects, in accordance with an
identified financial reporting framework and are
free of material misstatements. An audit also
includes assessing the accounting principles used
and significant estimates made by management
as well as evaluating the overall financial
statements. We believe that our audit provides a
reasonable basis for our opinion.
3.
We report that the consolidated financial

statements have been prepared by the Company
in accordance with the requirements of Accounting
Standard (AS - 21) "Consolidated Financial
Statements" issued by The Institute of Chartered
Accountants of India and on the basis of the
individual financial statements of the Company
and its subsidiary Company included in the
consolidated financial statements.
4.
a)
b)
Valuation of closing stock: The parent

company adopts Accounting Standard - 2
for valuation of closing stock whereas in
the subsidiary company the valuation of
finished goods is done at market price. If
the valuation of closing stock of finished
goods in the subsidiary had been made in
conformity with Accounting Standard - 2,
the value would be less by Rs. 126.98 lakhs
and the loss of the company as consolidated
would be more by Rs. 126.98 lakhs.

The Parent Company has revalued land,

building, plant and machinery and electrical
installations during the year, based upon the
Coimbatore
September 30, 2003
73
P.R. VITTEL
Partner

AND ITS SUBSIDIARY
CONSOLIDATED
BALANCE SHEET AS AT 30-06-2003

Schedule
No.
I.
As at
As at
30.6.2003
30.6.2002
(Rs. in lakhs)
SOURCES OF FUNDS :
(1) SHAREHOLDERS' FUNDS :
(2)
(a) Share Capital
3,973.21
3?973.21
(b) Reserves and Surplus
34,235.33
12,339.27
38,208.54
16,312.48
436.54
1,128.49
DEFERRED TAX
(3) LOAN FUNDS :

(a) Secured loans
48,574.90
41,972.03
(b) Unsecured loans
8,264.28
7,709.68
56,839.18
49,681.71
95,484.26
67,122.68
Gross Block
48,820.36
47,851.58
Less : Depreciation
13,395.56
11,393.18
35,424.80
36,458.40
5,508.96
729.11
TOTAL of 1 to 3
II. APPLICATION OF FUNDS :
(1) FIXED ASSETS:
Net Block
Add : Capital Work in Progress
Add : Increase in Value on account of Revaluation
30,045.71
(Please refer Note No. 17 of Schedule 23)
(2)
(3)
70,979.47
37,187.51
507.29
489.80
(a) Inventories
8,759.70
11,480.09
(b) Sundry Debtors
3,713.66
2,934.10
908.55
962.54
10
5,135.10
8,501.85
11
16,568.07
14,561.61
35,085.08
38,440.19
INVESTMENTS
(i)
CURRENT ASSETS, LOANS AND

ADVANCES:
Carried over
74

AND ITS SUBSIDIARY
Schedule
No.
Brought forward
As at
As at
30.6.2003
30.6.2002
(Rs. in lakhs)
35,085.08
38,440.19
13,392.97
10,899.65
21,692.11
27,540.54
1,461.50
1,431.10
843.89
473.73
95,484.26
67,122.68
Less :
ii)
CURRENT LIABILITIES AND PROVISIONS:
12
Net Current Assets (i) - (ii)

(4)
(5)
13
BALANCE IN PROFIT & LOSS ACCOUNT
TOTAL of 1 to 5
Schedules 1 to 13 and Notes in Schedule 23 form part of this Balance Sheet

N. MAHALINGAM
Chairman
P.R. VITTEL
Partner
S. BASKAR
Company Secretary
Coimbatore
30th September 2003
75
M. MANICKAM
Vice Chairman and
Managing Director

AND ITS SUBSIDIARY
CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 30.06.2003
Schedule
No.
I.
Figures for the

Current
Previous
Year ended
Year ended
30.6.2002
30.6.2003
(Rs. in lakhs)
INCOME:
14
Sales
Processing Charges for Crude Palmolein
39,908.12
Dividend
Interest
15
Other income
Value of Advance Licence/DFRC Credit
16
Stock adjustment
51,065.83
87.41
3.45
3.47
352.81
895.62
874.50
1,742.58
99.25
5,598.84
(5,739.76)
(10,671.34)
35,498.37
48,722.41
685.18
519.40
17,478.26
22,601.56
18,163.44
23,120.96
466.18
685.18
17,697.26
22,435.78
2,016.46
1,340.80
5,573.18
6,454.00
2,232.43
2,972.32
II. EXPENDITURE:
17
Cost of Goods Consumed / Sold

Opening stock
Add : Purchases
Less: Closing stock
Purchase of Goods for Sale
18
Excise Duty
Salaries, Wages and other employee benefits
19
2,191.29
2,481.22
6,640.24
7,943.79
Interest Charges
20
Selling expenses
21
1,390.28
1,762.47
Any other expenses
22
1,535.80
1,503.33
2,027.33
1,707.89
41,304.27
48,601.60
(5,805.90)
120.81
115.95
18.80
(5,921.85)
102.01
Depreciation
Net Profit
Prior year adjustments - Net
III. PROFIT BEFORE TAX
Provision for Taxation
76

AND ITS SUBSIDIARY
Figures for the
Current
Previous
Year ended
Year ended
30.6.2003
30.6.2002
(Rs. in lakhs)
IV. PROFIT AFTER TAX
Add :
(5,921.85)
102.01
Surplus from previous year
(473.73)
354.66
Excess provision withdrawn
1.32
0.78
15.57
4.89
691.96
(20.07)
Reversal of Provision for Diminution in Value

of Investments
Deferred Tax - Current year
15.83
(5,670.90)
442.27
APPROPRIATIONS:
Proposed Dividend on Preference shares
152.00
Transfer to Debenture Redemption Reserve
764.00
Surplus carried over
(5,670.90)
(473.73)
Schedules 14 to 22 and Notes in Schedule 23 form part of this Profit and Loss Account
N. MAHALINGAM
Chairman
P.R. VITTEL
Partner
S. BASKAR
Company Secretary
Coimbatore
30th September 2003
77
M. MANICKAM
Vice Chairman and
Managing Director

AND ITS SUBSIDIARY
As at
30.6.2003
SCHEDULE - 1
SHARE CAPITAL
AUTHORISED:
50,000,000 Equity Shares of Rs. 10 each
5,000,000 Redeemable Cumulative Preference Shares of Rs.100 each
ISSUED:
2,78,48,735
10,00,000
200,000
Equity Shares of Rs.10 each

Rs.100 each
Rs.100 each
SUBSCRIBED AND PAID-UP:2,77,32,066 Equity Shares of Rs.10 each fully paid up

Rs.100 each
200,000 13.5% Redeemable Cumulative Preference Shares of
Rs.100 each
TOTAL
SCHEDULE - 2
Capital Reserve :
Add: Difference between Market Value and book value of Land,
Buildings. Plant and Machinery and Electrical Installations
Less: Debit balance in Profit and Loss account adjusted
Less: New Process Development Expenses:a) Net Deficit
b) Value of Advance Licence/DFRC adjusted
265.97
2,830.76
Subsidy from Government:

Capital Redemption Reserve :
Share Premium Account :
Add: Received during the year
Less: Public/Debenture Issue Expenses Adjusted: Earlier years
Current year
(Rs.
5,000.00
5,000.00
10,000.00
2,784.87
2,784.87
1,000.00
200.00
1,000.00
200.00
3,984.87
3,984.87
2,773.21
2,773.21
1,000.00
1,000.00
200.00
3,973.21
200.00
3,973.21
1,619.26
30,045.71
1,619.26
31,664.97 ,
4,827.01
26,837.96
1,619.26
1,619.26
3,096.73
23,741.23
1,619.26
44.23
44.23
1^12.27
1,312.27
5,784.10
5,480.95
303.15
2,109.58
500.00
2,609.58
Less: Transferred to Deferred Tax Liability

2,609.58
78
i,, Lakhs)
5,000.00
5,000.00
10,000.00
185.11
24.97
5,574.02
General Reserve :
Add: Transfer from Debenture Redemption Reserve
As at
30.6.2002
5,784.10
3,218.00 .
3,218.00
1,108.42
2,109.58

AND ITS SUBSIDIARY
As at
As at
30.6.2003
30.6.2002
(Rs. in Lakhs)
100.00
100.00
Preference Shares Redemption Reserve :

Debenture Redemption Reserve :
Add: Transfer from Profit & Loss Account
1,354.00
1,354.00
500.00
854.00
Less: Transfer to General Reserve

Storage Reserve :
Transferred to Profit and Loss account
15.83
15.83
34,235.33
TOTAL
SCHEDULE - 3
SECURED LOANS
A. DEBENTURES
Secured Partly Convertible Debentures - IV Series
Secured Redeemable Non-convertible Debentures - VI Series
Secured Redeemable Non-convertible Debentures - VIII Series
Secured Redeemable Non-convertible Debentures - VII Series
Secured Redeemable Non-convertible Debentures - IX Series
14.5% Secured Redeemable Non-convertible Debentures
B. LOANS AND ADVANCES:
FROM BANKS
a) Term Loans
b) Hypothecation Loans for working capital
Term Loans
Interest accrued and due on the abo've loans
FROM OTHERS
i) From Government of India / TIFAC
Interest accrued and due on the above loan
ii) Hire Purchase / Mortgage Loans from Limited companies
TOTAL
SCHEDULE - 4
UNSECURED LOANS
Fixed Deposits
Other Loans and advances
Short-term Loans from Banks
TOTAL
752.61
839.40
1,354.00
15.83
15.83
12,339.27
1,700.00
1,000.00
5,000.00
418.96
9,710.97
752.61
839.40
1,000.00
1,700,00
1,000.00
5,000.00
145.27
10,437.28
14,155.10
444.38
12,711.78
621.60
27,932.86
7,221.64
191.40
12,594.21
180.08
20,187.33
8,440.11
708.67
8,632.54
292.74
1,061.79
122.26
518.68
79.56
10,931.07
48,574.90
1,073.80
55.75
1,234.76
57.83
11,347.42
41,972.03
3,362.04
1,535.95
1,019.34
2,115.00
231.95
8,264.28
79
590.00
764.00
1,354.00
3,206.37
1,697.50
473.14.
2,275.00
57.67
7,709.68

16.34
0.79
136.94
583.33
198.36
51.16
18.22
9.85
1014.99
4933.18
5948.17
5664.43
897.19
93.34
1097.71
19786.98
729.11
48580,69
43896.25
12.53
13.56
35.28
153.33
199.54
979.99
0.02
9.17
2.23
4.42
10.93
4.28
Additions Deductions
3105.63
949.33
33.45
2208.16
10527.45
53.67
821.05
1327.88
5645.75
19827.79
1263.18
28064.60
As on
1.7.2002
GROSS BLOCK
For the
year
72.87
563.82
0.07
42.11
80.19
612.46
50.33
45.71
1194.58
128.17
7950.30 1000.13
432.70
54.72
9577.58 1183.02
Upto
30.6.2002
935.82
526.98
60.73
19.72
111.56
5.37
480.21
1094.00
99.34
20766.69 1815.60 844.31
5508.96
54329.32 11393.18 2027.33

48580.69
9716.20 1707.89
3105.63
965.67
34.24
2345.10
11110.76
53.67
1010.24
1323.60
5645.75
19825.56
1258.76
28053.67
As on
30.6.2003
Upto
30.6.2003
As on
As on
30.6.2002 30.6.2003
NET BLOCK
3105.63
949.33
33.45
2127.97
9914.99
3.34
775.34
358.21
86.47
525.68
18128.89
5508.%
70979.47
37187.51
153.06
1176.28
50.40
87.04
358.21
10.10
577.61
370.21
86.47
25.09
73.62
568.32
525.68
11.23
617.50
2637.80 17971.38 18128.89
22.11
729.11 5508.96
13395.56
24.95
37187.51 40933.76
30.91 11393.18 34180.05 37187.51
0.78
3105.63
965.67
34.24
2192.04
9934.48
3.27
923.20
Valuation
as per
Approved
Valuer
5350.35
11107.23
29069.46
1814.58
47341.62
Written
down Value
3105.63
965.67
34.24
2192.04
9934.48
3.27
923.20
1327.88 1323.60
1322.75 4451.17 4323.00
0.48 8949.95 11877.49 10875.61
2.36
485.06
830.48
773.70
2.84 10757.76 18487.02 17295.91
Withdrawn
DEPRECIATION
(Rs. in lakhs)
Note: Land, Buildings, Plant & Machinery and Electrical Installations of the Holding Company have been revalued. Other assets are shown at Written Down book Value.
OTHER ASSETS:
Goodwill
Land
Dev.of Eco.Friendly Trees
Buildings
Plant & Machinery
Mol. Alcohol Storage Tank
Office Equipments, Furniture
and Fixtures
Laboratory Apparatus
Motor vehicles
Total
Work in Progress
Total for the Year
Previous Year
REVALUED ASSETS:
Land
Buildings
Plant & Machinery
Particulars
FIXED ASSETS:
CONSOLIDATED FINANCIAL STATEMENTS OF SAKTHI SUGARS LIMITED AND ITS SUBSIDIARY

SCHEDULE - 5

AND ITS SUBSIDIARY
SCHEDULE - 6
INVESTMENTS - LONG TERM at cost
unless otherwise stated
A. Quoted:
a) Sri Chamundeswari Sugars Limited
b) Sri Bhagavathi Textiles Limited
c) Sakthi Finance Limited
d) The Industrial Credit & Investment Corporation of India Ltd.,
e) NUT Ltd.
675 Shares of Rs. 10 each
f) Kovai Medical Centre and Hospital Ltd.
g) K G Denim Limited
h) The Industrial Finance Corpn.of India Ltd.
i) The Industrial Development Bank of India Ltd.
j) The South Indian Bank Limited
13,200 Shares of Rs.10 Each
k) Punjab National Bank
9,100 shares @Rs.lO each
1) Canara Bank
6,900 shares of Rs.10 each
B. Unquoted
1. In Government Securities:
National Savings Certificates
2.
As at
30.6.2003
As at
30.6.2002
(Rs. in lakhs)
117.88
117.88
5.00
5.00
282.00
282.00
0.24
0.24
0.15
0.15
20.00
20.00
17.00
17.00
0.04
0.04
57.98
57.98
4.22
4.22
2.82
2.82
2.42
509.75
507.33
2.86
3,36
2.50
3.00
22.79
2.50
22.79
0.10
0.10

a) LAvenir Telecoms Limited 25,000 Shares of Rs.10 each
b) Sakthi Soft Drinks Limited 30,000 Shares of Rs.10 each
c) Sakthi Beverages Limited 2,27,900 Shares of Rs.10 each
d) The ABT Co-operative Stores Ltd. 1000 Shares of Rs.10 each
81
3.00

AND ITS SUBSIDIARY
As at
30.6.2003
As at
30.6.2002
(Rs. in lakhs)
e) Sakthi Sugars Co-operative Stores Ltd. 760 Shares of Rs.10 each
0.08
0.08
f) Arun Fuels Ltd., 2000 Shares of Rs.100 each
2.00
0.10
2.00
0.10
33.43
543.18
35.89
33.93
541.26
51.46
507.29
489.80
g) Angul Central Co-op Bank Ltd. 100 Shares of Rs.100 each

Aggregate of Unquoted Investments
Total Investments
Less: Provision for Diminution in value of Investments
TOTAL
Note
1) Market Value of quoted Investments as on 30th June, 2003 is Rs. 169.28 lakhs (Rs. 137.37 lakhs).
2) Government securities of the total face value of Rs. 2.02 lakhs are deposited with Panchayat and
Public Works Department as road contract work deposits and of the value of Rs. 0.84 lakhs are
deposited with State Commercial Tax Department.
SCHEDULE - 7
INVENTORIES
Stores and spares
1,366.91
956.77
6.70
8.81
2,035.09
6,946.81
Molasses - Sugar Unit
523.65
Industrial Alcohol
Press Mud - Compost
144.18
1.01
233.96
334.23
Standing crop
STOCK-IN-TRADE:
i) Finished goods:
Sugar
Fusel Oil
Iron Castings
ii) Raw materials
Molasses - Distillery Unit
Raw Sugar
Soyabeans & others
Steel scrap, pig iron and' others
2.45
1.19
0.07
71.67
1,876.77
134.05
2,077.62
4,653.56
9.729.19
155.39
2,170.90
139.78
185.21
316.50
188.62
644.90
89.76
2,601.26
iii) Other stocks:
0.33
35.49
12.00
News print paper

Chemicals, Fertilisers & Others
Bagasse
47.82
82
1.26
39.01
, 18.75
59.02

AND ITS SUBSIDIARY
As at
30.6.2003
As at
30.6.2002
(Rs. in lakhs)
Sugar
Molasses
29.97
5.02
25.04
5.08
Iron Castings in Process
48.46
51.28
83.45
8,759.70
81.40
11,480.09
814.20
2,899.46
431.18
2,502.92
3,713.66
2,934.10
13.90
281.26
3.62
22.80
241.77
609.77
695.99
908.55
962.54
137.75
Interest Savings on Export Sales
290.31
2,787.59
Value of Advance Licence/DFRC credited
2,05632
iv) Stock-in-process
TOTAL
SCHEDULE - 8
SUNDRY DEBTORS
a) Unsecured - considered good:
i) Debts outstanding for a period exceeding six months
ii) Other debts
SCHEDULE - 9
CASH AND BANK BALANCES
i) Cash on hand
ii) (a) In Current accounts with Scheduled Banks
(b) Current accounts with Other banks
TOTAL
1.98
SCHEDULE - 10
OTHER CURRENT ASSETS
Stock of stamps and hundi papers

TOTAL
2,764.20
5,598.84
0.88
1.06
5,135.10
8,501.85
13,605.41
11,823.21
156.57
416.66
339.05
576.42
2389.43
16,568.07
1,822.93
14,561.61
SCHEDULE - 11
Unsecured: Considered Good
Advance Recoverable in cash or in kind / value to be received
Income-tax payments
Prepaid Expenses
TOTAL
83

AND ITS SUBSIDIARY
As at
30.6.2003
As at
30.6.2002
(Rs. in lakhs)
12,685.40
9,912.27
12.83
16.37
694.74
819.01
13392.97
10,747.65
SCHEDULE - 12
CURRENT LIABILITIES AND PROVISIONS
A. Current Liabilities:
Liabilities for purchases, Expenses & Others
Unclaimed dividends / Preference Shares
B. Provisions:
152.00
Proposed Dividend on Preference Shares

TOTAL
13,392.97
10,899.65
500.50
614.45
85.79
157.08
16.84
24.85
12.89
22.73
95.74
112.32
749.74
499.67
1,461.50
1,431.10
SCHEDULE 13
(To the extent not written off or not adjusted)
Product Development
TOTAL
84

AND ITS SUBSIDIARY
Previous
Current
Year ended
Year ended
30.6.2002
30.6.2003
(Rs. in lakhs)
SCHEDULE - 14
SALES:
23707.26
Sugar
3943.54
Industrial Alcohol
62.83
Power
0.76
ETP Contract Receipts & Technical Service charges
3441.60
7684.68
Iron Castings
2.09
Pattern Sales
168.64
33.24
Seeds
RED Palmolein
49.94
Bio Earth
7.05
Magazines
27.56
Others
Add : Own consumption:
0.30
Industrial Alcohol
736.15
Molasses
0.06
Soya Products
42.42
Other By Products
39908.12
TOTAL
SCHEDULE - 15
OTHER INCOME:
32.56
Rent Receipts
1.47
Profit on sale of Fixed Assets
23.39
Interest Savings on Export Sales (Net)
55.78
0.15
Profit on Road Contract Works
185.11
Public/Debenture Issue Expenses Written Back
332.50
Value of Sugar Mill Rollers Accounted
Provision for Excise Duty Reversed (on account of Export out of Opening Stock) 161.52
57.34
24.07
Profit on sale of investments
0.61
Sundry balances written off
874.50
TOTAL
SCHEDULE - 16
STOCK ADJUSTMENT:
(A) OPENING STOCK:
6,946.82
Sugar
233.96
Molasses
334.23
Industrial Alcohol
134.05
Soya Products
18.75
Bagasse
2.45
Bio Earth '
0.07
Fusel Oil
2,077.61
Iron Castings
81.41
Stock-in-process
9,82935
85
36458.74
3805.78
7.01
0.26
3174.40
6029.63
13.73
308.98
18.93
4.06
120.82
8.11
14.23
0.31
1,095.12
0.06
5.66
51065.83
20.30
9.50
1,585.71
42.97
3.57
54.33
23.32
2.88
1,742.58
18,398.21
179.92
180.19
83.82
0.15
2.68
0.60
1,151.96
503.16
20,500.69

AND ITS SUBSIDIARY
Current
Previous
Year ended
Year ended
30.6.2003
30.6.2002
(Rs . in lakhs)
(B) CLOSING STOCK:
Sugar
Molasses
Industrial Alcohol
Bagasse
Bio Earth
Fusel Oil
Iron Castings
Stock-in-process
1,381.45
517.86
144.18
71.67
12.00
1.01
1.19
1,876.77
83.46
4,089.59
(5,739.76)
(B) - (A):
SCHEDULE - 17
COST OF GOODS CONSUMED/SOLD:
(A) OPENING STOCK:
Molasses
Newsprint paper
Steel scrap and pig iron & others
139.79
39.00
1.26
316.51
188.62
685.18
(B) ADD : PURCHASES:

Sugarcane
Molasses
Newsprint paper
(C) LESS : CLOSING STOCK:
Molasses
Newsprint paper
Soyabean Seeds
(D) CONSUMPTION: (A+B-C)
86
6,946.82
233.96
334.23
134.05
18.75
2.45
0.07
2,077.61
81.41
9,829.35
(10,671.34)
183.15
26.87
1.89 '
148.67
158.82
519.40
12,472.44
1,404.62
159.92
11.11
2^85.25
1,044.92
17,478.26
17,086.20
1,653.93
313.39
11.15
2,566.86
970.03
22,601.56
155.39
35.49
0.33
185.21
89.76
466.18
17,697.26
139.79
39.00
1.26
316.51
188.62
685.18
22,435.78

AND ITS SUBSIDIARY
SCHEDULE - 18
Consumption of Stores & Spares and Packing materials
Power and Fuel
Water charges
Bagasse for Co-Generation
Printing and Publication charges
Fettling charges
Rent
Lease Rental & Hire Charges
Rates and Taxes
Insurance
Repairs and Maintenance:
Building
Machinery & Electrical
Vehicles
Others
Effluent disposal expenses
Royalty
State Administrative Service Fees
Bank Charges
Subsidy and Crop development expenses
Tools and implements written off
TOTAL
SCHEDULE - 19
SALARIES, WAGES AND OTHER EMPLOYEE BENEFITS:
Contribution to P.F. and other funds
TOTAL
SCHEDULE - 20
INTEREST CHARGES:
Term Loans
Debentures
Others
TOTAL
87
Previous
Current
Year ended
Year ended
30.6.2002
30.6.2003
(Rs. in lakhs)
1,683.01
1,731.10
69.55
37.25
16.23
165.75
58.32
134.29
50.14
141.18
2,059.07
1,668.66
8.00
2.95
15.93
189.38
40.17
272.96
46.37
163.94
82.13
472.56
156.87
59.24
200.12
25.69
134.79
195.28
159.22
0.46
114.87
833.18
165.01
69.17
186.62
41.68
133.27
222.37
220.22
0.18
5,573.18
6,454.00
1,773.34
168.14
249.81
2,006.72
191.00
283.50
2,191.29
2,481.22
3,149.39
1,365.45
1,276.49
848.91
2,399.60
1,472.12
2,954.37 .
1,117.70
6,640.24
7,943.79

AND ITS SUBSIDIARY
Current
Previous
Year ended
Year ended
30.6.2003
30.6.2002
(Rs. in lakhs)
SCHEDULE - 21
SELLING EXPENSES:
Export Pass Fees on Spirit
Additional Sales Tax
Packing Materials
Transport on Castings
Commission and brokerage:
On sale of magazines
Others
1.44
TOTAL
SCHEDULE - 22
ANY OTHER EXPENSES:
Travelling expenses
Donations
Effluent on soil/crop - R & D expenses
Foreign Exchange Fluctuation
Technical Consultancy Charges
Managerial remuneration
Directors' Sitting Fees
Auditors Remuneration
Loss on sale of Fixed Assets
Loss on sale of used materials
Deferred Revenue Expenditure written off
Product Development Written off
Irrecoverable advances written off
Pre-production expenses written off
Preliminary Expenses written off
TOTAL
115.67
966.62
128.19
173.44
124.67
1,310.35
80.46
204.33
0.82
5.54
39.88
1,390.28
1,762.47
232.76
389.24
270.92
125.77
23.63
0.93
16.87
28.73
12.19
0.63
17.66
1.74
12.45
7.03
11.90
6.30
227.83
400.39
294.25
133.88
29.93
16.52
189.14
16.58
99.93
0.11
71.29
1,535.80
88
1.34
15.63
21.24
18.36
26.78
1.69
17.37
5.99
8.73
0.57
12.29
170.18
16.58
3.74
71.53
9.85
1,503.33

AND ITS SUBSIDIARY
ACCOUNTING POLICIES (CONSOLIDATED)
1.
All ascertained income and expenses are accounted on accrual basis. Contracts in Pollution Control Division
and other contract works are accounted based on the level of completion.
2.
Depreciation has been provided on all assets under Straight Line Method at the rates prescribed in Schedule
XIV to the Companies Act, 1956 In the Subsidiary Company, in the preceding financial year depreciation
had been provided on all assets (other than assets below Rs.5,000/-) under Unit of Production Method. Due
to above change in the method of providing depreciation, loss is more by Rs. 276.39 Lakhs.
3.
4.
Material consumption is accounted net of MODVAT/CENVAT.

Valuation of Closing Stock:
I)
Parent Company :
a) Finished goods are valued at Cost or the Net Realisable Value; whichever is lower, as per Accounting
Standard 2 (AS-2).
b) Process stock is valued at estimated cost.
c)
Raw material of Soya Unit is valued at cost on "First-in-First Out" (FIFO) basis and of all other
Units at average cost.
d)
Bagasse, Molasses and Soya by-products are valued at Market price.
e)
Newsprint, Fertilizer and Chemicals are valued at cost.
f) Materials at contract site of Pollution Control Division are valued at contracted rates.
g) Stores and Spares are valued at monthly weighted average basis.
II) Subsidiary Company:
5.
6.
7.
8.
a)
b)
Finished goods are valued at market price.

Process stock is^ valued at estimated cost.
c)
Raw material is valued at average cost.
d)
Stores and Spares are valued at monthly weighted average basis.
In Subsidiary Company, finished goods are valued at market rates instead of "cost or net realisable value,
whichever is less" as prescribed in Accounting Standard-2, since the Finished goods are manufactured at
pre-determined contract rates. If the goods are valued in conformity with Accounting Standard-2, the value
of closing stock would be lesser by Rs. 126.98 Lakhs.
Value of matured duty concession under Exim Policy relating to Advance Licence / Duty Free Replenishment
Certificate (DFRC) Scheme has been credited.
Gratuity liability to the employees on actuarial basis has been accounted. The Company has opted for Life
Insurance Corporation of India Group Gratuity Scheme.
a) Fixed assets are valued at cost net of MODVAT/CENVAT including all direct and indirect expenses
relating thereto.
b)
In the Parent company, Lands, Buildings, Plant and Machinery and Electrical Installations as on
30.6.2002 have been revalued on the basis of valuation certificate of an approved valuer (Refer Note
No. 17 of Schedule No. 23). The Subsidiary company assets have not been revalued.
c)
Fixed Assets taken on lease and purchase are treated as the assets of the company and they are
accounted at cost. Interest portion of the lease amount is charged to the Profit and Loss Account.
Investments are accounted at cost. The diminution in value of investments, wherever applicable, is given
effect to as per Accounting Standards 13 (AS-13).
89
4
AND ITS SUBSIDIARY
9.
Expenses and income in foreign exchange are accounted for at the rate prevailing on the date of transactions.

The expenditure incurred on technical know-how / Research and Development Expenditure, re-structuring
fees, crop development, product launching expenses, Voluntary Retirement Scheme payments and product
development expenditure are treated as deferred revenue expenditure and are being written off over a period
of years.
The expenditure incurred on issue of shares and debentures have been adjusted in Share Premium.
11. Premium on pre-payment of loans/debentures is deferred and is being written off over the original unexpired
term of the loans/debentures.
12. Interest savings on export sale of sugar is recognised and written off over a period of 18 months.
14. The Accounting Policies of the company used in the preparation of the Consolidated Financial Statements
are in conformity with the Generally Accepted Accounting Principles in India and the Accounting Standards
issued by The Institute of Chartered Accountants of India.
15. Basis of Consolidation
The Consolidated Financial Statements include the Financial Statements of Sakthi Sugars Limited and its
Subsidiary, namely, Sakthi Auto Component Limited.
Name of the Subsidiary
Country of Incorporation
Sakthi Auto Component Ltd.
India
Proportion of ownership
Interest (%)
100%
The Consolidated Financial Statements have been prepared on the following basis.
I.
The Financial Statements of the Parent company and its Subsidiary Company have been consolidated on
a line-by-line basis, by adding together the book values of like items of assets, liabilities, income and
expenses, after fully eliminating intra-group balance and intra-group transactions resulting in unrealised
profit or losses.
II.
The Consolidated Financial Statements are prepared by adopting Uniform Accounting Policies except for
valuation of closing stock of finished goods.
III.
The excess of cost of the Parent Company of its investment in the Subsidiary over the Parent's portion of
equity of the Subsidiary at the date on which investment in the Subsidiary is made is described in the
financial statements as Goodwill.
90

AND ITS SUBSIDIARY

SCHEDULE - 23
NOTES ATTACHED TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED
30TH JUNE, 2003
1.
PREFERENCE SHARES
A) 10,00,000 - 12.50% Redeemable Cumulative Preference Shares of Rs.100/- each allotted on 4.5.1995
are originally redeemable at par in three equal annual instalments commencing from 15th June, 2005.
B) 2,00,000 - 13.5% Redeemable Cumulative Preference Shares of Rs.100/- each allotted on 08.06.1998,
are redeemable at par after 5 years from the date of allotment.
2.
DEBENTURES
A) 7,52,605 Secured Redeemable Partly Convertible Debentures of Rs.100/- each allotted by the Company
on 26.3.1996 are convertible at the option of the Financial Institutions to the extent of 20% into Equity
shares at the conversion price to be determined and the balance 80% of the aforesaid debentures are
redeemable at par on 15.2.2006.
These debentures are secured by Charge by way of equitable mortgage of the company's immovable
properties and hypothecation of the Company's movable properties (save and except book debts and
exclusively charged assets) including movable machinery, machinery spares, tools and accessories,
subject to prior charge created and/or to be created in favour of company's bankers on the company's
stock of raw materials, semi-finished, finished goods and consumable stores, pertaining to its Sakthinagar
and Sivaganga Sugar Units, Sakthinagar Distillery Unit and Soya Unit (both present and future) in
favour of The Western India Trustee And Executor Co. Limited, the Trustees to Debenture holders,
ranking pan passu with charges created in favour of IDBI, IFCI & ICICI Bank.
B) 17,00,000 Secured Redeemable Non Convertible Debentures of Rs.100/- each allotted on 24.09.1998
are redeemable in 3 equal annual instalments commencing from 24.09.2002. These debentures are
secured by: i)
Charge by way of legal mortgage of company's land at Plot No.2, Mouje Indrad, Kadi Taluka,
Mehsana District of Gujarat State in favour of IFCI, the Trustees
ii)
including movable machinery, machinery spares, tools and accessories, both present and future,
pertaining to its Dhenkanal Sugar Unit, sobject to prior charge created and/or to be created 'in
favour of company's bankers on the company's stock of raw materials, semi-finished, finished
goods and consumable stores, in favour of IFCI, the Trustees, ranking pari passu with the charge
created in favour of Industrial Investment Bank, of India Ltd. (IIBI).
C) The outstanding principal amount of Rs.839.40 lakhs out of 25,00,000 Nos. Secured Redeemable Non
Convertible Debentures of Rs.100/- each allotted on 15.06.1998, are redeemable in 24 equal quarterly
instalments commencing from 15.07.2004. The debentures carry coupon rates of 10% from 1st July
2001 to 30th June 2002, 12.50% from 1st July 2002 to 30th June 2003 and 14% from 1st July 2003
onwards.
These debentures are secured by: i)
Charge by way of legal mortgage of company's land at Plot No.l, Mouje Indrad, Kadi Taluka,
Limited, the Trustees, ranking pari passu with the charge created in their as Trustees for debentures
aggregating to Rs.10 Crores;
91
4
AND ITS SUBSIDIARY
ii)
Sivaganga Sugar Units, Sakthinagar Distillery Unit and Soya Unit (both present and future) and
that of Sakthi Auto Component Limited, in favour of The Western India Trustee And Executor Co.
Limited, the Trustees, ranking part passu with charges created in favour of IDBI, IFCI & ICICI
Bank.
D) 10,00,000 Secured Redeemable Non Convertible Debentures of Rs.100/- each allotted on 1.3.2000 are
redeemable in 24 quarterly instalments commencing from 15th July, 2004 and carries coupon rate of
10% from 1st July 2001 to 30th June 2002, 12.50% from 1st July 2002 to 30th June 2003 and 14%
1st July 2003 onwards.
These debentures are secured by:i)
charge by way of legal mortgage of company's land at Plot no.l, Mouje Indrad, Kadi Taluka,
Limited, the Trustees ranking pari passu with the charges created in their favour as Trustees for
Debentures aggregating to Rs. 25 Crores; and
ii)
charge by way of Equitable mortgage of the Company's immovable properties and hypothecation
Sivaganga Sugar Units, Sakthinagar Distillery Unit and Soya Unit, subject to prior charge created
and/or to be created in favour of company's bankers on the company's stock of raw materials, semifinished, finished goods and consumable stores, both present and future, in favour of The Western
India Trustee And Executor Co. Limited, the Trustees, ranking pari passu with charges created in
favour of IDBI, IFCI & ICICI Bank.
E) 50,00,000 Secured Redeemable Non Convertible Debentures of Rs. 100/- each allotted on 19th December
2000 are redeemable with a premium of 10% in 26 quarterly instalments commencing from 15th
January 2004. These debentures are secured by:i)
charge by way of legal mortgage of Sakthi Auto Component Ltd., the subsidiary company (SACL)
land at Plot no.W/11, Mouje Bileshwarpura, Kalol Taluka, Gandhinagar District of Gujarat State
in favour of The Western India Trustee And Executor Co. Limited, the Trustees, and
ii)
charge by way of Equitable mortgage of SACL's immovable properties and hypothecation of the
Company's movable properties (save and except book debts) including movable machinery, machinery
spares, tools and accessories, subject to prior charge created and/or to be created in favour of
company's bankers on the company's stock of raw materials, semi-finished, finished goods and
consumable stores, (save and except assets exclusively charged to Institutions/Banks for their
outstanding assistance), both present and future, in favour of The Western India Trustee And
Executor Co. Limited, the Trustees, ranking pari passu with charges created in favour of IDBI.
iii) Corporate Guarantee provided by the holding company viz., M/s. Sakthi Sugars Limited.
iv) Personal guarantee by the Managing Director.
92

AND ITS SUBSIDIARY
3.
SECURED LOANS
FROM BANKS:a)
The amount outstanding under Secured loans from Banks includes Term Loan of Rs.2300.95 lakhs
availed by the Company from ICICI Bank. These said loan is secured by exclusive charge on the
company's Milling Tandem I & II erected at Sakthinagar Sugar Unit. The loan is further guaranteed by
the Vice-Chairman and Managing Director of the Company in his personal capacity.
b)
The amount outstanding under Secured loans from Banks includes Term Loans of Rs.315.40 lakhs
(including interest) availed by the Company from ICICI Bank. These loans are secured by:i.
Sivaganga Sugar Units, Sakthinagar Distillery Unit and Soya Unit (both present and future) in
favour of ICICI Bank ranking part passu with charges created in favour of IDBI, IFCI and The
Western India Trustee And Executor Co. Limited, the Trustees to Debenture holders.
ii.
These loans are guaranteed by the Vice-Chairman and Managing Director of the Company in his
personal capacity.

c)
The amount outstanding under Secured loans from Banks includes a Loan of Rs.350.00 lakhs (including
interest) availed by the Company from State Bank of India, Cuttack (SBI). This loan is secured by:Charge by way of equitable mortgage of the company's immovable properties and hypothecation of the
Company's movable assets including movable machinery, machinery spares, tools and accessories pertaining
to its Dhenkanal Distillery Unit, in the state of Orissa (both present and future) in favour of SBI.
These loans are further guaranteed by the Chairman and Vice-Chairman & Managing Director of the
Company.
d)
The amount outstanding under Secured loans from Banks includes a Term Loan of Rs. 1212.74 lakhs
(including interest) availed by the Company from Citi Bank NA. This loan is secured by:Exclusive first charge on the Movable assets of the company's Bottling Plant at Sivaganga Unit and
Escrow of receivable from Hindustan Coca-Cola Beverages Private Limited (HCCB) in respect of
contract of packing charges in favour of Citi Bank. The principal amount outstanding is Rs. 1200.00
lakhs.
e)
The amount outstanding under Secured loans from Banks includes a loan of Rs.l 101.24 lakhs (including
interest) availed by the Company from Global Trust Bank Ltd. This loan is secured by:Charge by way of equitable mortgage of the company's landed property at Erode, ranking part passu
with charges created in favour of Global Trust Bank Limited for the Loan amount of Rs.3000.00 lakhs.
The loan is further secured by mortgage of personal landed properties of Chairman, Vice-Chairman &
Managing Director and Sri. M.Balasubramaniam, Director and also guaranteed by the Chairman, the
Vice-Chairman & Managing Director and Sri. M.Balasubramaniam, Director, in their personal capacities.
93

AND ITS SUBSIDIARY
f)
The amount outstanding under Secured loans from Banks includes Loan of Rs.3104.83 lakhs (including
interest) availed by the Company from Global Trust Bank Ltd. These loans are secured by:i)
Charge by way of equitable mortgage of the company's landed property at Erode, ranking par!
passu with charges created in favour of Global Trust Bank Limited for the Term Loan amount of
Rs. 1000.00 lakhs.
ii)
Exclusive first charge on the entire movable assets of Co-gen Plant at company's Sakthinagar Unit
and Escrow of the receivable on evacuation of power to Tamil Nadu Electricity Board (TNEB)
from the Co-gen Plant in favour of Global Trust Bank Limited. This loan is further guaranteed by
the Chairman, the Vice Chairman & Managing Director and Sri. M. Balasubramaniam, Director,
in their personal capacities
The principal amount outstanding is Rs. 3000.00 lakhs.
g)
The amount outstanding under Secured loans from Banks includes Working Capital Term Loans of
Rs.6214.32 lakhs (including interest thereon) availed from Working Capital Bankers. These loans are
secured by:i) first charge
and spares,
the Canara
consortium
ii)
by way of hypothecation of Finished Goods, Raw Materials, Stock in process, Stores

Book Debts of the Company's units except the sugar Unit at Badamba, in favour of
Bank, the leader of consortium of banks, acting for itself and other members of
ranking pari passu inter-se.
These loans are further secured by second/residual charge created on the Immovable & Movable
assets of the said units, besides second charge on the company's land and building at corporate
office, Race Course Road, Coimbatore in favour of the consortium of banks ranking pari passu
inter-se.
iii) These loans are also guaranteed by the Chairman and Vice-Chairman & Managing Director.
The principal amount outstanding in respect of these loans are Rs.5998.63 lakhs
FROM FINANCIAL INSTITUTIONS:
h)
The amount outstanding under Secured Loan from Financial Institutions includes Term Loans (including
interest thereon) of Rs.275.22 lakhs availed by the Company from IDBI under respective Asset Credit
Schemes. These loans are secured by a first charge in their favour on the assets purchased under the
scheme including assets for an aggregate cost of Rs.86.35 lakhs pertaining to Sakthi Auto Component
Limited. These loans are further secured by personal guarantee of the Vice-Chairman and Managing
Director. The aggregate principal amount of loan outstanding is Rs.257.84 lakhs.
i)
The amount outstanding under Secured Loans from Financial Institutions includes Term Loans (including
interest thereon) of Rs.723.34 lakhs availed from IDBI. These loans are secured by: i.
machinery spares, tools and accessories, subject to prior charge created in favour of company's
bankers on the company's stock of raw materials, semi-finished, finished goods and consumable
stores, pertaining to its Sakthinagar and Sivaganga Sugar Units, Sakthinagar Distillery Unit and
Soya Unit (both present and future) in favour of IDBI ranking pari passu with charges created in
favour of ICICI Bank & IDBI and The Western India Trustee And Executor Co. Limited, the
Trustees to Debenture holders.
94

AND ITS SUBSIDIARY
ii.
These loans are guaranteed by the Vice-Chairman and Managing Director.

j)
The amount outstanding under Secured Loan from Institutions includes Term Loan of Rs. 1526.34 lakhs
(including interest thereon) availed by the company from Industrial Development Bank of India (IDBI)
and is secured by a first charge on the movable and immovable assets of the company's Sugar units
at Sakthinagar and Sivaganga, Sakthinagar Distillery Unit and Soya Unit (both present and future)
(excluding assets exclusively charged to Institutions/Banks), ranking pari passu with the existing charge
holders and will be subject to the prior charge created/to be created on specified movables in favour
of the company's bankers for working capital borrowings. This loan is further secured by the personal
guarantee of the Vice Chairman & Managing Director and pledge of Promoters' shares. The aggregate
amount of principal outstanding is Rs. 1430.00 lakhs.
k)
The amount outstanding under Secured Loan from Financial Institutions includes Term Loan of
Rs.2047.98 lakhs (including interest thereon) availed by the Company from IIBI. This is secured by: i)
machinery spares, tools and accessories, both present and future, pertaining to its Dhenkanal Sugar
Unit, subject to prior charge created and/or to be created in favour of company's bankers on the
company's stock of raw materials, semi-finished, finished goods and consumable stores, in favour of
IIBI, ranking pari passu with charge created in favour of IFCI, the trustees for debenture holders;
ii)
This loan is guaranteed by the Vice-Chairman & Managing Director.

The principal amount of this loan outstanding is Rs. 1731.57 lakhs.
1)
The amount outstanding under Secured Loan from Financial Institutions includes term loan of Rs.59.41
lakhs availed by the Company from Industrial Promotion and Investment Corporation of Orissa Ltd.
(IPICOL) and is secured by specific charge on the company's land and building situate at Mouza,
Dhenkanal Town, Orissa State and is further secured by personal guarantees of Chairman and the ViceChairman & Managing Director. The principal amount of this loan outstanding is Rs.39.97 lakhs.
m) The amount outstanding under Secured Loan from Financial Institutions includes term loan of Rs.359.82
lakhs (including interest thereon) availed by the Company from IPICOL and is secured by specific
charge on the lift irrigation points, and company's land and building situate at Dhenkanal Town, Orissa
State. This loan is further secured by personal guarantee of the Vice-Chairman & Managing Director.
The principal amount of this loan outstanding is Rs.250.00 lakhs.
n)
The amount outstanding under Secured Loans from Financial Institutions includes Non-residential
Premises Loan of Rs. 199.52 lakhs (including interest thereon) availed by the Company from Housing
Development Finance Corporation Ltd (HDFC). The Non-residential premises Loan is secured by a
mortgage of company's Corporate Office at Race Course Road, Coimbatore. The principal amount of
this loan outstanding is Rs.188.01 lakhs.
o)
The amount outstanding under Secured Loans from Financial Institutions represents Term Loan of
Rs.3957.16 lakhs including interest thereon availed by SACL from IDBI. This loan is secured by: i)
Charge by way of Equitable mortgage of the Company's immovable properties and hypothecation
of the SACL's movable properties (save and except book debts) including movable machinery,
machinery spares, tools and accessories, subject to prior charge created and/or to be created in
favour of company's bankers on the company's stock of raw materials, semi-finished, finished
95

AND ITS SUBSIDIARY
goods and consumable stores, (save and except assets exclusively charged to Institutions/Banks for
their outstanding assistance), both present and future, in favour of IDBI ranking pari passu with
charges created in favour of The Western India Trustee And Executor Co. Limited, the Trustees for
Debenture holders.
ii)
Corporate Guarantee provided by the holding company viz., M/s. Sakthi Sugars Limited,
iii) Personal guarantee by the Managing Director.

SECURED LOAN FROM OTHERS:
4.
p)
The amount outstanding under Hire Purchase loan aggregating to Rs. 341.02 lakhs (including interest
thereon) represents the amount availed by the Company from Public Limited Companies and is secured
by hypothecation of machineries, office equipments and vehicles so financed. The amount of principal
outstanding is Rs.329.40 lakhs. Out of the above an amount of Rs.212.31 lakhs (including interest
thereon) representing the Hire Purchase Loans availed by SACL is further secured by corporate guarantee
provided by the holding company viz, M/s. Sakthi Sugars Limited and guarantee provided by Managing
Director of SACL. The principal outstanding is Rs.200.83 lakhs.
q)
The amount outstanding under Secured loan from others includes mortgage loan of Rs.257.22 lakhs
(including interest thereon) availed from Sundaram Finance Ltd and is secured by the Company's
landed property at St.Mary's Road, Chennai. The principal amount of loan outstanding is Rs.189.28
lakhs.
r)
The amount outstanding under Secured loan from others includes Term Loan of Rs.1111.06 lakhs
(including interest thereon) availed by the company from Sugar Development Fund (SDF) of Govt. of
India. The above loan is secured by exclusive second charge on the fixed assets of the company's Sugar
unit at Sakthinagar. The amount of principal outstanding is Rs.988.80 lakhs
s)
The amount outstanding under Secured loans from others includes term loan of Rs.72.99 lakhs availed
by the company from Technology Information Forecasting and Assesment Council (TIFAC). This loan
is secured by the exclusive first charge on the assets acquired under the Scheme. This loan is further
secured by the personal guarantee of Vice Chairman and Managing Director.
WORKING CAPITAL LOANS:

i)
Working Capital facilities (Including Working Capital Term Loans (WCTL)) availed for the Sugar units
at Sakthinagar, Sivaganga & Dhenkanal, Dilstillery Units at Sakthinagar & Dhenkanal and Soya unit
of the company are secured by first charge by way of hypothecation of Finished Goods, Raw Materials,
Stock in process, Stores and spares, Book Debts of the Company's units except the sugar Unit at
Badamba, in favour of the Canara Bank the leader of consortium of banks, acting for itself and other
members of consortium ranking pari passu inter-se. These are also guaranteed by the Chairman and the
Vice-Chairman & Managing Director in their personal capacities.
These loans are further secured by second/residual charge created/to be created on the Immovable &
Movable assets of the said units in favour of the consortium of banks ranking pari passu inter-se. The
Working Capital Term Loans extended to the company are further secured by second charge on the
company's land and building at Corporate Office, Race Course Road, Coimbatore.
ii)
Working capital loan availed for the company's sugar unit at Baramba is secured by pledge of sugar
stocks in favour of The Orissa State Co-operative Bank Ltd., (OSCB), Bhubaneshwar. This is further
guaranteed by the Vice Chairman and Managing Director in his personal capacity.
96

AND ITS SUBSIDIARY
The Aggregate amount of the loans guaranteed are as under: (Rupees in lakhs)
Name
of the
Bank
Sugar
Units
I & II
Sugar
Unit at
Dhenkanal
Sugar
Unit at
Baramba
Distillery Units at
SakthiDhen
nagar
kanal
Soya
Unit
CB
2613.23
422.15
IOB
1367.67
118.96
PNB
1016.25
SBT
603.43
65.93
CTBK
736.06
106.99
516.59
116.30
KVB
475.14
177.89
SBM
566.63
OSCB
906.15
SBI
881.07
172.27
7895.00
881.07
906.15
177.89
172.27
830.33
SIB
LVB
Total
iii) Working capital loan availed by SACL from M/s.Canara Bank is secured by pan passu first charge by
way of hypothecation of Finished Goods, Raw Materials, Stock in process, Stores and spares, Book
Debts of the Company in their favour. The loan is further secured by second charge "created on the
Movable and Immovable assets of the Company. This is also secured by corporate guarantee provided
by the holding company viz., M/s. Sakthi Sugars Limited and guarantee provided by Managing Director.
The aggregate amount of loan outstanding is Rs.1517.70 Lakhs.
iv) Working capital loan availed by SACL from M/s. Lakshmi Vilas Bank Limited is secured by part passu
first charge by way of hypothecation of Finished, Goods, Raw Materials, Stock in process, Stores and
spares, Book Debts of the Company in their favour. This is also secured by corporate guarantee
provided by the holding company viz., M/s. Sakthi Sugars Limited and guarantee provided by Managing
Director.
The aggregate amount of loan outstanding is Rs.353.25 Lakhs.
5.
UNSECURED LOANS
a)
The amount outstanding under Unsecured loans includes loan of Rs.285.79 lakhs (including interest
thereon) availed by the company from SDF of Govt. of India and the Company has provided letter of
guarantees from its bankers. The amount of principal outstanding is Rs.222.44 lakhs
b)
The unsecured loans from banks represents Term Loan of Rs.2242.47 lakhs (including interest thereon)
availed by the Company from the Bank of Nova Scotia, and is secured by first charge by way of deposit
of Title Deeds of the landed properties of other Bodies Corporate along with a corporate Guarantee and
are further secured by personal guarantees of the Chairman and the Vice-Chairman & Managing Director.
The principal amount of loan outstanding is Rs.2115.00 lakhs.

AND ITS SUBSIDIARY
6.
a)
FINANCIAL RESTRUCTURING
Pursuant to the Company's request and reference made by the lead Financial Institution namely IDBI
Limited, the CDR Forum has approved a Financial Restructuring package vide its letter dated 25th July
2003. The terms of this package interalia includes:i)
Cut off date: January 01, 2003.
ii)
Rate of interest on all the term loans /debentures and working capital to be reduced from existing
rates to 12.50% (Financial Institutions) and 12% (Banks) w.e.f. the cut off date.
iii) Conversion of cash credit limit of the company into working capital term loan carrying interest rate
of 11.50% p.a.
iv) Simple interest due on the cut off date and accruing from January 01, 2003 to September 30, 2003
on all term loans / debentures and working capital to be deferred and funded and to be repaid in
20 equal quarterly instalments starting from July 01, 2004. Funded interest shall carry interest at
11.50% p.a.
v)
The existing term loans/debentures to be rescheduled and to be repaid together with proposed
WCTL within a period of 9 years commencing from July 01, 2004. The Proportion of Principal
Repayment will be 8.33% from 2004-2005 to 2008-09, 12.50% from 2009-2010 to 2010-2011,
16.67% for 2011-2012 and 16.68% for 2012-2013.
vi) Existing Preference shares to be redeemed in eight yearly instalments commencing at the end of
2005-06 and ending in the year 2012-13. The dividend on preference shares will carry a rate of
12.50% and the same will be deferred for initial three years i.e. 2002-03 to 2004-05 and to be
payable along with the dividend of years 2005-06 to 2007-08.
b)
7.
8.
The Terms and conditions, security offered, rate of interest, terms of redemption relating to debentures,
preference shares and secured loans covered in 'notes 1 to 5 will stand amended to the extent covered
under Financial Restructuring package in note 6(a) above on completion of documentation.
Fixed Deposits :
i)
The aggregate amount of fixed deposits guaranteed by the Vice-Chairman & Managing Director is
Rs.645.72 lakhs.
ii)
Fixed deposits include 14 deposits aggregating to Rs.7.05 lakhs received from Directors of the Company.
Tax deducted at source Rs.in Lakhs

i)
On Interest receipts
12.67
ii) On Other Income

9.
1.68
Estimated amount of contracts remaining to be executed

On capital account'and not provided for
10. Amount due from Directors to be adjusted against cane supply

Maximum amount due from Directors during the year
11. Advance due from Officers (Senior Executives) of the Company
Maximum amount due from officers (Senior Executives) of
the Company during the year
12. Purchase of Goods for Sale - Purchase of Sugar
98
1215.21
8.06
10.61
26.87
60.89
2016.46

13. Particulars of remuneration and perquisites to Managing Director:
Salary
P.P. Contribution
Pension Fund Contribution
Gratuity
Perquisites
Commission
Current Year
Ended
30.06.2003
12.00
1.44
0.90
0.58
2.74
(Rs. in Lakhs)
Previous year
Ended
30.06.2002
12.00
1.44
0.90
0.46
2.14
9.84
17.66
26.78
Total
14. Guarantee Commission provided for payment to Chairman : Rs. 12.45 lakhs.
15. Fees Paid/Payable To Auditors:
(Rs. in Lakhs)
Year Ended
30.06.2003
4.40
As Auditors
In other Capacities:i) Taxation matters
ii) Tax Audit
iii) Certification
iv) Management Services
v) Service Tax
Total
Year Ended
30.06.2002
3.90
0.80
0.90
0.20
0.35
0.36
0.67
0.35
0.35
0.38
0.36
5.99
7.03
16. Sundry Creditors include dues to Small Scale Industrial Undertakings amounting to Rs.259.92 lakhs.
Names of Small Scale undertakings whose dues are'outstanding for more than thirty days are Acid and
Chemical Traders, Alpha Helical Pumps, Anco India Chemicals (P) Ltd, Bio-Incorp, Chidambaram Polybags,
Excell Engineering, Esskay Enterprises, Energyspin (P) Ltd, Ganga Chemicals, Genesis Engineering, Hindustan
Industrial Corporation, Imperial Scientific works, Jayalakshmi Minerals and Chemicals, Jayam Textiles,
Kristna Engineering Works, Kwikconveyors, Lara Engineering works, Madras Hardtools Ltd, Mareeswari
Cottage Industries, New Marketronika, Oxford Rubbers (P) Limited, Patco Industrial suppliers, Power
Master Industrial Equipment, Powerflex Engineering Company, Prime Tex Industries, Raj Industries,
Rajyalakshmi Lime Industries, Ramakrishna Chemicals, Ratan Chemical Industries, Sakthi Poly Products,
Shri Industries, South India Trading Company, Spring India, Sreesujidhra Industries, Sri Prasad Lime
Industries, Sri Vengamamba Lime Industries, Sri Vidhya Industry, Sri Vijayalakshmi Lime Chemicals, Sri
Majjigouri Chemical Lime Industries, Sumech Engineers (P) Ltd, Sri Kanakadurga Lime Chemicals, Siddartha
Lime Chemicals, Satish Steel Works, Sri Lakshmi Padmavathi Seva Sangam, Siva Packagings, Sri Jyothsna
Lime Industries, South India Lime Product, Taiko Chandernagar Chemicals (P) Ltd, Team Engineers (P) Ltd,
Udhayabhanu Lime Village Industries, Vintech Controls & Devices (P) Ltd, Vertex Chemical Industries,
Voltamp Transformers (P) Ltd, Coral Rewinding Industries, Navaneetham Agencies and Sri Gowri & Co,
Ajay Syscon (P) Ltd, Aries Textile Syndicate, Bramwel & Co, Bharath Paper Conversions, Carton Creations,
Engineering Components India, Globel Mines, Gangai Karai Mineral, Guideway Engineering, Heatrain
Services, Hydrochem Services, Helix, Hi-tech Fab Equipments Co., Industrial Stores & Components,
Jayalakshmi & Co., Kastwel Foundries, Leo Shellcasts Industries, Mangalore Minerals (P) Ltd., Maruti
Acetyline Company (P) Ltd., Mineral Pulverising Mills (P) Ltd., Nanda Engineers, Nagappa Paper Paackagings,
Precise Hydraulics, QSE Engineering (P) Ltd., Ram Oxygen (P) Ltd., Sharda Silicate & Chemical Industries,
Sri Divya Engineering Works, Sri Vivegha Engineering (P) Ltd, Shreeram Polyplast, Seal Jet Seals, Seenu
Perecision Tooling System (P) Ltd., South India Chemicals, Swagath Urethane, Thooran Paper Products,
Thooran Distributors, Vigshan Tools, Vishwashanthi Merchandise (P) Ltd.
99
17. The Net Increase in Revaluation of Assets of the holding company amounting to Rs.30045.71 lakhs is
credited to Revaluation Reserve. The details are as under: (Rs. In lakhs)
Particulars
Net Block
As on
30.06.2003
1323.60
4323.01
10875.62
773.69
17295.92
Land
Buildings
Plant and Machinery
Total
Valu e as
Per Ap proved
Val uer
535 136
1110 7.23
2906 ?.46
181'158
4734 1.63
Revaluation
Reserve
4026.76
6784.22
18193.84
1040.89
30045.71
i)
As per terms of the Package approved under Corporated Debt Restructuring (CDR) Scheme, the above
assets have been revalued to represent the fair market value of the assets of the Company, based upon
the valuation report of an approved valuer.
ii) The lands have been revalued on the basis of guideline/market value. Buildings, Plant and Machinery
and Electrical Installations have been revalued taking into consideration replacement value, age of the
asset and estimated remaining useful life.
18. New Process Development Expenses:Quantity
(in MTs)
1. Raw Sugar Imported
72200.000
2. Raw Sugar issued for Refining
56121.250
3. Closing Stock of Raw Sugar
16078.750
A. Expenses
(Rs. in lakhs)
1. Consumption of Raw Sugar
4080.35
2. Transport, Loading and Unloading and Other Expenses
759.48
3. Packing Materials.Chemicals and Power & Fuel
623.97
4. Interest on Working Capital Loans
328.15
5. Other Direct Expenses
398.96
6190.91
Total Expenses (A)
B. Realisation of Production
(a). Sales
1. Sugar Sales (including excise duty)
2. Molasses Sales (including excise duty)
Total Realisation
Less : Excise Duty Paid
(a)
(b) Closing Stock (including excise duty)
1 . Sugar
2. Molasses
Total Value of Stock
Less : Excise duty provision on Stock
Closing Stock Value (b)
Total Realisation of Production (a + b) (B)
Net deficit (A - B)
Value of Advance licence / DFRC adjusted
100
5514.89
93.16
5608.05
315.32
5292.73
653.65
5.79
659.44
27.23
632.21
5924.94
265.97
2830.76
-3096.73

19. Deferred Tax
Rs. In Lakhs
5678.25
1203.85
Deferred tax Asset:

6104.20
Arising out of non payment of taxes duties etc.

Net Amount
341.36
6882.10
6445.56
436.54
20. Contingent Liability

a)
Sales-tax demands against the company aggregating to Rs.903.40 lakhs are disputed and appeals are
pending.
b)
Demands against the company for payment of Excise duty aggregating to Rs.153.09 lakhs are disputed
and appeals are pending.
c)
A writ petition has been filed before the Hon'ble High Court of Madras challenging the increase in the
rate for Administrative service fee for Alcohol produced and the Hon'ble High Court of Madras has
quashed the orders of the Govt. of Tamilnadu. However the Govt. has preferred appeal against the
orders of the High Court of Madras. The amount under dispute is Rs.408.10 lakhs.
d)
The Company has provided Corporate Guarantees to the extent of Rs.100 lakhs for loans obtained by
a Body Corporate.
e)
The Company has provided Corporate Guarantees aggregating to Rs.4345.22 lakhs to secure the loans
availed by Cane Growers' Societies at Qrissa. The aggregate of the loans repayable by the above
Societies as on 30.6.2003 is Rs. 4377.93 lakhs including interest thereon.
f)
The Company has provided guarantee to the extent of Rs.50 lakhs to Housing Development Finance
Corporation Ltd., for sanction of loan to the employees of the Company. The aggregate amount of loan
outstanding as on 30.6.2003 is Rs.1.98 lakhs.
g)
The company has provided guarantee to the extent of Rs. 11595 lakhs for securing loans / debentures/
working capital limits availed by Sakthi Auto Component Limited, the subsidiary company.
h)
As per the directions of the Hon'ble High Court of Madras, the Govt. has refixed the rates applicable
for water drawn for industrial purposes vide GO Ms No 474 dated 13.11.2001. A writ petition has been
filed before the Hon'ble High court of Madras challenging the increase in the rate from Rs.60 per 1000
M3 to Rs.500 per 1000 M3 and the method of computation for Sakthinagar Unit. The Hon'ble High
court of Madras has directed the company to pay at an interim rate of Rs.300/- for the actual consumption
and file an undertaking to pay the balance if the writ petition is dismissed. The writ petition is pending
disposal and the amount under dispute is Rs. 179.35 lakhs.
i)
Under Export Promotion Capital Goods Scheme (EPCG) for SACL , the amount of duty payable is
Rs.868.51 lakhs, if the export obligation is not fulfilled.
j)
The charge in favour of M/s. IDBI/ICICI Bank on the SACL's assets provided for the debentures/term
loans availed by the holding company viz., Sakthi Sugars Limited (SSL), is continuing and the principal
amount due for payment by SSL is Rs.925.75 lakhs.
21. Wherever necessary, figures for previous year have been regrouped or reclassified to confirm to this year's
grouping or classification.
101
2002-2003
(Rs. in lakhs)
Profit before tax
Depreciation
Interest
Investment Income :
Dividend
Interest
Public/Debenture issue exp. written back
Miscellaneous Expenses & Other exp.written off
Adjustment for:Inventories
Debtors
Loans and Advances
Liabilities
New Process Development expenditure incurred
Interest Paid
B. Cash Flow From Investment Activities
Investment Income
2001-2002
(Rs. in lakhs)
120.81
(5,805.90)
2,002.39
6,640.24
1,676.98
7,943.79
(3.45)
(352.81)
(24.07)
(1.47)
(185.11)
376.93
11.90
(3.47)
(895.62)
(9.50)
280.43
8.73
9,001.34
9,122.15
8,464.55
2,658.65
10,592.06
(215.63)
(7,085.40)
1,974.80
(6,167.07)
(18.02)
2,720.39
(779.56)
3,366.75
(1,139.59)
1,906.26
(112.72)
(3,096.73)
(434.20)
(645.59)
2,430.60
5,089.25
(5,117.87)
(28.62)
(1,564.85)
7,557.30 .
(7,917.53)
(360.23)
(1,547.76)
49.92
899.09
(2.81)
(5,794.85)
35.78
380.33
(1.92)
(601.56)
(5,380.66)
C. Cash Flow from Finance Activities
Issue of Equity Shares
Premium on Issue of Equity Shares
Dividend Paid
705.00
303.15
305.40
(253.05)
' 5,510.83
(155.54)
5^55.29
(53.99)
962.54
908.55

Vide our report annexed'
N. MAHALINGAM
Chairman
PR. VITTEL
Partner
S. BASKAR
Company Secretary
Coimbatore
30th September 2003
102
1,060.50
98.71
863.83
962.54
M. MANICKAM
Vice Chairman and
Managing Director
SAKTHI SUGARS LIMITED

PROXY FORM
I I We
of
being a Member / Members of Sakthi Sugars Limited
hereby appoint
of
or failing him
of
,
or failing him
of
as my / our proxy to attend and vote for me / us on my / our behalf at the Annual General Meeting of
the Company to be held on 18th December, 2003 and of any adjournment thereof.
Signed this
day of
2003.
Folio No.
:
*Client I.D. No. :
*D P. I.D. No. :
Note : The proxy form must be deposited at the Registered Office of the Company at Sakthinagar, Bhavani
Taluk, Erode district or at the Head Office at 180, Race Course Road, Coimbatore - 641 018 not less
than forty eight hours before the time for holding the aforesaid meeting.
* Applicable only in case of investors holding shares in electronic form.
SAKTHI SUGARS LIMITED

Regd. Office : Sakthi Nagar- 638 315, Bhavani Taluk, Erode District
ATTENDANCE SLIP
Reg. Folio
:
*Client I.D. No. :
*D P. I.D. No.
:
Name & Address of member :
I hereby record my presence at the Annual General Meeting held on 18th December, 2003 at Sakthi Nagar,
Bhavani Taluk, Erode District.
** Member's / Proxy's Signature
Note : Shareholder / Proxyholder must bring the Attendance Slip to the meeting and hand over at the
entrance duly signed.
* Applicable only in case of investors holding shares in Electronic Form.
** Please indicate whether Member/Proxy

Post Box No. 3775
Coimbatore - 641 018
If undelivered please return to :
BOOK POST
PRINTED MATTER
<j>
|
5
0)

PDF

Diunggah oleh

Informasi Dokumen

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

PDF

Diunggah oleh

Hak Cipta:

Format Tersedia

SANSCO SERVICES - Annual Reports Library Services - www.sansco.

Sakthi Sugars Limited

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

Sakthi Sugars Limited

Padamathur, Sivaganga Tk - 630 561

Sunapal, Barambagarh - 754 031

Haripur Village, Korian Post - 759 013

Sri K.K. RAMASWAMY GOUNDER

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

Sakthi Sugars Limited

In addition to the above perquisites, Sri

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

B. RESOLVED FURTHER that the Board of

(i) to mortgage and / or charge the assets of the

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

Sakthi Sugars Limited

2. The explanatory statement pursuant to Section 173

EXPLANATORY STATEMENT UNDER SECTION 173 OF THE COMPANIES ACT, 1956

Dr. N Mahalingam, Chairman, Sri M Balasubramaniam

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

By Order of the Board

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

Sakthi Sugars Limited

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

REPORT OF THE DIRECTORS

The free sale/levy sale ratio remained at 90 : 10.

During the year 1,44,241 tonnes of sugar was

Your Directors present their Annual Report together

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

Sakthi Sugars Limited

Pursuant to clause 49 of the Listing Agreement, a

DIRECTORS' RESPONSIBILITY STATEMENT

on a going concern basis;

The Board of Directors of the Company have, subject

d) that the directors had prepared the annual accounts

Company and for preventing and detecting fraud

that in the preparation of the annual accounts for

MANAGEMENT'S ANALYTICAL REPORT

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

(b) Additional investments and proposals, if any, being

remitted to the appropriate authorities at the

The existing vapour cool & condensing system in

Effective steps would be taken for recovery of

(c) Impact of the measures at [a] and [b] above for

The Financial Restructuring Package has become

We have been advised that the adjustment of

The power consumption will reduce substantially

Your Directors wish to place on record their

The Company has no employee drawing remuneration

As regards delayed remittance of Provident Fund/

By Order of the Board

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

Sakthi Sugars Limited

ENERGY CONSERVATION MEASURES - FORM - A

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

Brazilian Technology with respect to

FOREIGN EXCHANGE EARNINGS AND

TECHNOLOGY ABSORPTION, ADAPTATION

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

Sakthi Sugars Limited

Sri P N Sengodappan*** Non-Executive Director

Sri Kara Seemaichamy