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DE’PEDRO SUGAR INDUSTRIES PROPOSED BALANCE SHEET 2020-21

Balance Sheet as at March 31st 2020


(All amounts are in Rupees lakhs unless otherwise stated)

Note
Particulars As at March 31, 2020 As at March 31, 2021
No.
A ASSETS

1 Non-current assets
(a) Property, Plant and Equipment 4 41,279.87 42,192.53
(b) Capital Work-In-Progress 4 4.29 355.92
(c) Investment in subsidiary 5 17.74 -
(d) Financial Assets
(i) Other Financial Assets 7A 130.58 118.68
(e) Deferred Tax Assets(Net) 6 - -
(f) Other Non Current Assets 12A 1,194.63 1,233.85
Total Non - Current Assets 42,627.11 43,900.98
2 Current assets
(a) Inventories 8 70,424.08 106,288.60
(b) Financial Assets
(i) Investments 9 2,762.07 3,043.99
(ii) Trade receivables 10 12,403.54 292.45
(iii) Cash and Cash equivalents 11A 9,440.08 1,678.06
(iv) Bank balances other than (iii) above 11B - 5,816.81
(v) Other Financial Assets 7B 8,396.01 15,252.70
(c) Other Current Assets 12B 1,042.08 7,574.14

Total Current Assets 104,467.86 139,946.75

Total Assets (1+2) 147,094.97 183,847.73


B EQUITY AND LIABILITIES

1 Equity
(a) Equity Share capital 13 30,125.00 27,072.57
(b) Other Equity 14 (27,616.27) (22,692.66)
Total equity 2,508.73 4,379.91

LIABILITIES

2 Non-current liabilities
(a) Financial Liabilities
(i) Borrowings 15 13,500.00 27,000.00
(b) Non-Financial Liabilities
(i) Long term provisions 17A 78.11 64.17
(ii) Other Non Financial Liabilities 20A 30.23 2.30
Total Non - Current Liabilities 13,608.34 27,066.47
3 Current liabilities
(a) Financial Liabilities
(i) Borrowings 18 44,746.44 41,475.25
(ii) Trade payables 19 69,132.94 97,422.03
(iii) Other Financial Liabilities 16 16,755.39 13,447.79
(b) Non-Financial Liabilities
(i) Short term provisions 17B 53.91 1.67
(ii) Other Non Financial Liabilities 20B 289.22 54.61
Total Current Liabilities 130,977.90 152,401.35

Total Equity and Liabilities (1+2+3) 147,094.97 183,847.73


The accompanying notes are an integral part of these financial statements
In terms of our report of even date.
For Price Waterhouse Chartered Accountants LLP For and on behalf of the firm
Firm Registration Number: 012754N/N500016
Chartered Accountants
DE’ PEDRO SUGAR INDUSTRIES
Statement of Profit and Loss for the year ended March 31, 2020
(All amounts are in Rupees lakhs unless otherwise stated)

Note For the year For the year ended


Particulars No. ended March 31, 2020
March 31, 2021

I Revenue from operations 21A 241,819.75 184,686.04


II Other Net gains - Derivative sugar contracts 21B 11,127.95 -
III Other Income 22 1,138.11 3,157.40
IV Total Revenue (I + II) 254,085.81 187,843.44

V EXPENSES
(a) Cost of materials consumed 23 205,041.23 161,590.53
(b) Purchase of Stock in Trade 25,503.76 -
(c) Changes in stock of finished goods, work-in-progress and stock-in-trade 24 8,195.96 (5,854.39)
(d) Employee benefits expense 25 846.80 643.87
(e) Finance costs 26 4,401.55 5,341.24
(f) Depreciation and amortisation expense 4 2,799.40 2,798.46
(g) Other expenses 27 14,891.66 21,908.07
Total Expenses 261,680.36 186,427.78
VI Profit/(loss) before tax (III - IV) (7,594.55) 1,415.66

VII Tax Expense


(1) Current tax - -
(2) Deferred tax - -
Total tax expense 29 - -

VIII Profit/(Loss) for the year (V-VI) (7,594.55) 1,415.66

IX Other comprehensive income


(i) Items that will not be recycled to profit or loss
(a) Exchange differences in translating the financial
(61.75) 78.45
statements to Presentation Currency
(b) Remeasurements of Defined Benefit Plans (14.51) 1.10

Total other comprehensive income ((i) a+b) (76.26) 79.55

X Total comprehensive income for the year (VII + VIII) (7,670.81) 1,495.21

X Earnings per equity share (Face value of Rs 10 per share):


Basic and diluted (Rupees per share) 31 (2.80) 0.86

In terms of our report of even date.


For Price Waterhouse Chartered Accountants LLP For and on behalf of the Firm
Firm Registration Number: 012754N/N500016
Chartered Accountants
DE’PEDRO SUGAR INDUSTRIES
Statement of Cashflows for the year ended March 31, 2020
(All amounts are in Rupees lakhs unless otherwise stated)

Year ended Year ended


Particulars March 31, 2021 March 31, 2020

A. Cash flows from operating activities


Profit for the year (7,594.55) 1,415.66
Adjustments for:
Finance costs recognised in profit or loss 4,128.81 5,341.24
Unwinding of Interest on zero coupon debentures 272.74 528.52
Net (gain)/loss arising on financial assets mandatorily measured at fair value through profit or 34.65 -
loss
Depreciation and amortisation expenses 2,799.40 2,798.46
Profit/(Loss) on Sale of Assets 0.11 (1.11)
Marked to Market loss/(gain) on Forward and Swap Contract 763.69 (1,669.82)
Marked to Market loss on Commodity Contracts (4,759.27) 4,244.99
Interest Income (64.22) (17.86)
Dividend from Mutual Funds (575.00) -
Liabilities no longer required written back (1,369.53) -
Deferred Expense (Net of Interest Income) arising from Interest free deposits carried at amortised 44.07 35.16
cost
Operating Profit before working capital changes (6,319.10) 12,675.24

Movements in working capital:


(Increase)/decrease in trade and other receivables (12,111.09) 11,487.31
(Increase)/decrease in inventories 35,864.52 (23,577.13)
(Increase)/decrease in Other Financial Assets (Current) 6,345.06 7,663.74
(Increase)/decrease in Other Current Assets 6,532.06 (4,223.55)
(Increase)/decrease in other Non Financial Assets (Non Current) - (0.42)
Increase /(decrease) in Trade payables (26,981.30) 48,902.86
Increase /(decrease) in Long term and Short term provisions 66.18 18.21
Increase/(decrease) in Other Non Financial Liabilities 248.03 (37.98)
Increase/(decrease) in Other Financial Liabilities (1.00) (289.91)
9,962.46 39,943.13
Cash generated from / (used in) operations 3,643.36 52,618.37
Income taxes paid (4.85) -
Net cash generated from / (used in) operating activities 3,638.51 52,618.37

B. Cash flows from investing activities


Payments to acquire Property, Plant and Equipment (1,535.22) (1,595.25)
Payments for investment in subsidiary (17.74) -
Interest received from fixed depsoits 64.22 15.73
Dividends received from Mutual Funds 575.00 -
Current investments (2,797.44) -
Proceeds from sale of fixed Assets - 1.66
Bank balances not considered as Cash and cash equivalents - Placed 5,816.81 (5,799.98)
Net cash (used in)/generated by investing activities 2,105.63 (7,377.84)

C. Cash flows from financing activities

Proceeds from issue of equity instruments of the Company 5,799.62 -


Redemption of debentures (6,000.00) -
Proceeds from short term borrowings(net) including bank overdrafts 3,271.19 (40,503.03)
Finance costs (4,096.92) (5,360.71)
Net cash used in financing activities (1,026.11) (45,863.74)

Net increase in cash and cash equivalents 4,718.03 (623.21)

Cash and cash equivalents at the beginning of the year 4,722.05 5,345.26
Cash and cash equivalents at the end of the year 9,440.08 4,722.05
4,718.03 (623.21)
DE’PEDRO SUGAR INDUSTRIES
Statement of Cashflows for the year ended March 31, 2020
(All amounts are in Rupees lakhs unless otherwise stated)

Year ended Year ended


Particulars
March 31, 2021 March 31, 2020
Reconciliation of Cash and Cash Equivalents with the Balance Sheet:
Cash and Cash Equivalents (Note No 11A) 9,440.08 1,678.06
Add: Current investments considered as part of Cash and cash equivalents (as defined in Ind AS - 3,043.99
7 - Statement of cash flows)
Net Cash and Cash Equivalents (as defined in Ind AS 7 - Statement of cash flows) 9,440.08 4,722.05

In terms of our report of even date. For and on behalf of the Firm
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Chartered Accountants
Parry Sugars Refinery India Private Limited
Statement of changes in equity for the year ended March 31, 2018
All amounts are in Rupees Lakhs unless otherwise stated)

a. Equity

Particulars Amount

Issued, subscribed and Paid up Capital


Balance at April 1, 2016 16,628.12
Conversion of Preference shares to Equity shares 10,444.45
Balance at March 31, 2017 27,072.57
Issue of Equity shares to Holding Company 3,052.43
Balance at March 31, 2018 30,125.00

b. Other Equity

Items of Other Comprehensive


Reserves and Surplus
Income

Foreign Other Items of other


Particulars Securities Debenture Total
Retained Currency comprehensive
premium redemption
earnings Translation income (Actuaraial
reserve Reserve
Reserve gain/losses)

Opening as at April 1, 2016 30,741.44 - (58,116.14) (472.61) 3.89 (27,843.42)


2016-17
Premium on conversion of preference shares into equity shares 3,655.56 - - - - 3,655.56
Profit for the year - - 1,415.66 - - 1,415.66
Transfer to Debenture Redemption Reserve - 1,415.66 (1,415.66) - - -
Exchange differences in translating the financial statements to
- - - 78.45 - 78.45
Presentation Currency
Remeasurement of Defined Benefit Plans - - - - 1.10 1.10
Balance as at March 31, 2017 34,397.00 1,415.66 (58,116.14) (394.16) 4.99 (22,692.66)
2017-18
Profit/(Loss) for the year - - (7,594.55) - - (7,594.55)
Issue of Fresh Equity Share Capital 2,747.19 - - - - 2,747.19
Exchange differences in translating the financial statements to
Presentation Currency - - - (61.75) - (61.75)
Remeasurement of Defined Benefit Plans (14.51) (14.51)
Balance as at March 31, 2018 37,144.19 1,415.66 (65,710.69) (455.91) (9.52) (27,616.27)

In terms of our report of even date. For and on behalf of the Board of Directors
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Chartered Accountants

S. Suresh P. Nagarajan
Managing Director Chairman
Baskar Pannerselvam
Partner
Membership No.: 213126
Place : Chennai S. Ganesh B. Satish Krishnan
Date : May 02, 2018 Chief Financial Officer Company Secretary
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)

1 Corporate Information
Parry Sugars Refinery India Private Limited (‘the Company’) is a private company limited by shares, incorporated on January 13, 2006
and having its Registered Office at Chennai, Tamilnadu. The company is primarily engaged in the manufacturing of refined Sugar in its
factory located in Kakinada. The plant was originally constructed to run on Natural Gas as its fuel and the company had a firm
allocation of Natural gas from Government of India. . However gas supplies to the plant was stopped due to unexpected drop in overall
gas production, due to which the Company's operations were discontinued from 1 November 2011. The Company assessed the
suitability of alternative fuels and concluded that coal would be a viable substitute for running the plant. The Company also
commissioned Coal fired boiler and Power Plant and re-commenced its operations from 16 July 2014. The Company has Refinery
Capacity of 2,300 MT per day of Sugar.

2 Statement of compliance
The financial statements have been prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards)
Rules, 2015.

3 Significant Accounting Policies


3.1 Basis of preparation and presentation
The financial statements of the Company have been prepared and presented in accordance with the Generally Accepted Accounting
Principles (GAAP) which comprises of Indian Accounting Standards (Ind-AS) as specified in Section133 of the Act, read with Rule 4
of Companies (Indian Accounting Standards) Rules 2015 and Rule 4 of Companies (Indian Accounting Standards) Amendment Rules
2016 to the extent applicable to the Company and other provisions of the Act. The Balance Sheet and the Statement of Profit and Loss,
including related notes, are prepared and presented as per the requirements of the Schedule III to the Companies Act, 2013 amended
vide MCA notification G.S.R. 404(E) dated the 6th April 2016.
All assets and liabilities have been classified and disclosed as current or non-current as per the Company’s normal operating cycle and
other criteria set out in Schedule III. Based on the nature of operations and the time between the acquisition of assets for sale of goods
and their realization into cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose
of current - non current classification of assets and liabilities.
Accounting policies have been consistently applied to all the periods presented, except where a newly issued accounting standard is
initially adopted, or a revision to existing accounting standards require requires a change in the accounting policy hitherto in use.

The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at
fair values at the end of each reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation
technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or
liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.
Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for share-
based payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 17, and
measurements that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use in
Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2, or 3 based on the degree to which
the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety,
which are described as follows:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date;
• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly
or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
3.2 Exemption from preparation of consolidated financial statements
The Company has an investment in a subsidiary. The Holding Company, E.I.D. - Parry (India) Limited, having its registered office at
Dare House, Parrys Corner, Chennai - 600001, shall present the consolidated financial statements. The Company has therefore availed
the exemption under paragraph 4(a) of Ind AS 110 and shall satisfy the conditions for exemption from preparing consolidated financial
statements as per the Companies (Accounts) Amendment Rules, 2016 and thereby does not present consolidated financial statements.

Consequently, the accounting policies mentioned herein relate to the standalone financial statements of the Company.
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)

3.3 Going Concern Assumption


The Company has accumulated loss of Rs. 65,710.69 lakhs resulting in substantial erosion of net worth. The Management is confident
that the Company will be able to generate profits in future years to meet its financial obligation as may arise.The Company's financial
statements have been prepared on a going concern basis based on cumulative impact of the following mitigating factors:-
• Company has not defaulted in payment of any statutory dues including interest on bank borrowings.
• In order to strengthen the financial position, the Company has restructured its high cost bank borrowings with low cost debentures,
with support of corporate guarantee from holding Company during the year 2014-15.
• E.I.D Parry (India) Ltd - Holding Company infused Rs.5,000 lakhs and Rs. 2,800 lakhs in the form of Equity Shares and Preference
Shares respectively during the year 2015-16.
• To overcome the operational issues arising out of non-availability of gas, the Company has invested in Coal based boiler and
operations commenced during July 2014. The power plant has also been synchronized with AP grid and the plant is exporting the
surplus power during its operations in the year 2015-16, which will improve the profitability .
• The company's production volumes have increased in the years 2015-16, 2016-17 and 2017-18 and the Company has been locking its
refining margins through trades in sugar future contracts.

Besides the above, the Company has also taken several Strategic initiatives, cost reduction and efficiency improving measures to
improve profitability. During the year ended March 31, 2018, E.I.D Parry (India) Ltd - Holding Company infused Rs. 5,799.62 Lakhs
in the form of Equity Shares.

3.4 Functional and presentation currency


Being in an SEZ location, the company imports raw sugar and exports white sugar, consequently exposing the company to the risks in
the international market. The company locks the premium/margins for its refining business using USD denominated sugar commodity
futures and option contracts.
Owing to the above, the management has assessed that the currency of the Company's primary economic environment is USD since
the significant portion of its revenue and cost (and consequently margins) are affected by the USD.
Accordingly, items included in the financial statements are measured using USD as the functional currency. The financial statements
are presented in Indian Rupees (INR) ("the presentation currency ") being the common currency in which consolidated financial
statements of its holding company are presented, and has been rounded up to the nearest lakh except where otherwise indicated.

3.5 Revenue recognition


Sale of goods
The main activity of the Company is refinement of raw-sugar. Revenue from sale of refined sugar is measured at the fair value of the
consideration received or receivable, less returns (if any), trade discounts, volume rebates, value added taxes and Goods and Services
Tax. Revenue from the sale of goods is recognised when the goods are dispatched and titles have passed, at which time all the
following conditions are satisfied:
• the company has transferred to the buyer the significant risks and rewards of ownership of the goods;
• the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control
over the goods sold;
• the amount of revenue can be measured reliably;
• it is probable that the economic benefits associated with the transaction will flow to the company; and
• the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Dividend and interest income
a). Dividend income from investments is recognised when right to receive it is established.
b). Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the company and the
amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at
the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of
the financial asset to that asset's net carrying amount on initial recognition.

3.6 Leases
At the inception of a lease, the lease arrangement is classified as either a finance lease or an operating lease, based on the substance of
the lease arrangement. Lease in which significant portion of the risks and rewards of ownership are not transferred to the lessee are
classified as operating lease. Lease other than operating lease is finance lease.
As a lessee
The Company's significant leasing arrangements are in respect of operating leases for premises that are cancellable in nature. The lease
rentals under such agreements are recognised in the Statement of Profit and Loss as per the terms of the lease.
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)

The Company has taken 'Land' on an operating lease. Lease payments thereon are recognised in the Statement of Profit and Loss, on
straight-line basis over the lease period. Where the rentals are structured solely to increase in line with expected general inflation to
compensate for the lessor’s expected inflationary cost increases, such increases are recognised in the year in which such benefits
accrue. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.

3.7 Foreign currency transactions and translations


In preparing the financial statements of the company, transactions in currencies other than the entity’s functional currency (foreign
currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period,
monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at
fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was
determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences arising on translation are recognised in the income statement for determination of net profit or loss during the
period.
For the purpose of presenting these financial statements, the assets and liabilities of the company are translated into Indian Rupee using
exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for
the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of transactions
are used. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity.
3.8 Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part
of the cost of that asset. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use
or sale. All other borrowing costs are recognised as expenses in the period in which they are incurred.
To the extent the Company borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the Company
determines the amount of borrowing costs eligible for capitalization by applying a capitalization rate to the expenditure incurred on
such asset. The capitalization rate is determined based on the weighted average of borrowing costs applicable to the borrowings of the
Company which are outstanding during the period, other than borrowings made specifically towards purchase of the qualifying asset.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is
deducted from the borrowing costs eligible for capitalization. The amount of borrowing costs that the Company capitalizes during a
period does not exceed the amount of borrowing costs incurred during that period.

3.9 Employee Benefits


(I) Retirement benefit costs and termination benefits:

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling
them to the contributions.
For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected unit credit method, with
actuarial valuations being carried out at the end of each annual reporting period.
The Company has an employees’ gratuity fund managed by the Life Insurance Corporation of India (LIC).
Defined benefit costs are categorized as follows:
• Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);
• net interest expense or income; and
• Remeasurement
The company presents the first two components of defined benefit costs in profit or loss in the line item ‘Employee benefits expense’.
Past service cost is recognised in profit or loss in the period of a plan amendment.
Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.
Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on
plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other
comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected
immediately in retained earnings and is not reclassified to profit or loss.
Curtailment gains and losses are accounted for as past service costs. The retirement benefit obligation recognised in the balance sheet
represents the actual deficit or surplus in the Company’s defined benefit plans. Any surplus resulting from this calculation is limited to
the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the
plans.
Contributions paid/payable to defined contribution plans comprising of Superannuation (under a scheme of Life Insurance Corporation
of India) and Provident Funds for employees covered under the respective Schemes are recognised in the Statement of Profit and Loss
each year.
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)

A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination
benefit and when the entity recognizes any related restructuring costs.
(b) Short-term and other long-term employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries in the period the related service is rendered.

Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to
be paid in exchange for the related service.
Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash
outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.
(c) Contributions from employees or third parties to defined benefit plans
Discretionary contributions made by employees or third parties reduce service cost upon payment of these contributions to the plan.
Gratuity for certain employees is covered under a Scheme of Life Insurance Corporation of India (LIC) and contributions in respect of
such scheme are recognized in the Statement of Profit and Loss. The liability as at the Balance Sheet date is provided for based on the
actuarial valuation carried out as at the end of the year.
3.10 Earnings Per Share
The Company presents basic and diluted earnings / (loss) per share (EPS) data for its ordinary shares. Basic EPS is calculated by
dividing the profit or loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during
the period. Where ordinary shares are issued but not fully paid, they are treated in the calculation of basic earnings per share as a
fraction of an ordinary share to the extent that they were entitled to participate in dividends during the period relative to a fully paid
ordinary share. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average
number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares. To the extent that partly paid shares are
not entitled to participate in dividends during the period they are treated as the equivalent of warrants or options in the calculation of
diluted earnings per share.

3.11 Income taxes


Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the
statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never
taxable or deductible. The Company’s current tax is calculated using tax rates that have been enacted or substantively enacted by the
end of the reporting period.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements
and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all
taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it
is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax
assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition,
deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or
the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the
Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and Deferred tax
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive
income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly
in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is
included in the accounting for the business combination.
DE’ PEDRO SUGAR INDUSTRIES
Notes forming part of the financial statements for the year ended March 31, 2020
(All amounts are in Rupees lakhs unless otherwise stated)

3.12 Property, plant and equipment


Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are stated in the
balance sheet at cost less accumulated depreciation and accumulated impairment losses. Freehold land is not depreciated.
Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any recognised
impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the
Company’s accounting policy. Such properties are classified to the appropriate categories of property, plant and equipment when
completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the
assets are ready for their intended use.
Fixtures and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.
Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction) less their
residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation
method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective
basis.
Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets. However, when
there is no reasonable certainty that ownership will be obtained by the end of the lease term, assets are depreciated over the shorter of
the lease term and their useful lives.
Estimated useful lives of the assets are as follows:
Description of assets Estimate of Useful
Lives (yrs.)
Buildings 10-60
Plant and machinery (Continuous process) 18
Plant and equipment (General) 3-5
Furniture and fittings 10
Office equipment 5
Motor vehicles 4
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise
from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is
determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
Useful lives, residual value and the method of depreciation charged on Property, Plant and Equipment are reviewed at each reporting
date and adjusted where necessary.
3.13 Impairment of Non-Financial assets
At the end of each reporting period, the Company reviews the carrying amounts of its tangible assets to determine whether there is any
indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is
estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of
an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a
reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or
otherwise they are allocated to the smallest company of cash-generating units for which a reasonable and consistent allocation basis can
be identified.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of
the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the statement
of profit or loss.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised
estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have
been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an
impairment loss is recognised immediately in profit or loss.
3.14 Inventories
Inventories comprise raw sugar, white sugar, work in progress, and white sugar in finished condition. Inventories of raw-materials are
generally measured at cost, unless the white-sugar of finished goods does not have adequate realizable value to meet the cost. Finished
goods of white sugar are measured at lower of cost (determined using specific identification method) and net realizable value. Cost
comprises cost of purchase, and all directly attributable costs incurred in bringing the inventories to their present location and
condition. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion
and selling expenses.
Inventories of by-products are valued at estimated net realisable value.
DE’PEDRO SUGAR INDUSTRIES
Notes forming part of the financial statements for the year ended March 31, 2020
(All amounts are in Rupees lakhs unless otherwise stated)

3.15 Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable
that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the
reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the
cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the
time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is
recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured
reliably.
Asset retirement obligation:
The Company recognizes the estimated liability for future costs to be incurred in the remediation of site restoration in regards to plant
and equipment removal and disposal thereof, only when a present legal or constructive obligation has been determined and that such
obligation can be estimated reliably. Upon initial recognition of the obligation, the corresponding costs are added to the carrying
amount of the related items of property, plant and equipment and amortized as an expense over the economic life of the asset, or earlier
if a specific plan of removal exists. This obligation is reduced every year by payments incurred during the year in relation to these
items. The obligation might be increased by any required remediation to the owned assets that would be required through enacted
legislation.

3.16 Financial Instruments


Financial assets and financial liabilities are recognised when a company entity becomes a party to the contractual provisions of the
instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through
profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit
or loss are recognised immediately in profit or loss.

3.17 Financial Assets:


All regular way purchases or sales of financial assets are recognised and derecognized on a trade date basis. Regular way purchases or
sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or
convention in the marketplace.
All recognised financial assets are subsequently measured in their entirety at either amortized cost or fair value, depending on the
classification of the financial assets.
a. Classification of Financial Assets
Debt instruments that meet the following conditions are subsequently measured at amortized cost (except for debt instruments that are
designated as at fair value through profit or loss on initial recognition):
• the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and
• the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding.
• the debt instruments carried at amortised cost include Deposits, Debtors, Loans and advances recoverable in cash.
For the impairment policy on financial assets measured at amortized cost, refer Note 3.16.d
b. Effective Interest Method
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over
the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and
points paid or received that forms an integral part of the effective interest rate, transaction costs and other premiums or discounts)
through the expected life of the debt instruments, or, where appropriate a shorter period, to the net carrying amount on initial
recognition.
Income is recognized on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL.
Interest Income is recognized in Statement of profit or loss and is included in 'Other Income' line item.
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)

c. Financial Assets measured at Fair Value through Profit or loss (FVTPL):


The Company carries derivative contracts not designated in a hedge relationship at FVTPL. Financial assets at FVTPL also includes
assets held for trading.
A financial asset is held for trading if:
• it has been acquired principally for the purpose of selling it in the near term; or
• on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent
actual pattern of short-term profit-taking; or
• it is a derivative that is not designated and effective as a hedging instrument or a financial guarantee.
Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on
remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned
on the financial asset and is included in the ‘Other income’ line item. Dividend on financial assets at FVTPL is recognised when the
Company’s right to receive the dividends is established, it is probable that the economic benefits associated with the dividend will flow
to the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be measured
reliably.
d. Impairment of Financial Assets:
The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost,
lease receivables, trade receivables, other contractual rights to receive cash or other financial asset, and financial guarantees not
designated as at FVTPL.
Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss
is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows
that the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted
effective interest rate for purchased or originated credit-impaired financial assets). The Company estimates cash flows by considering
all contractual terms of the financial instrument through the expected life of that financial instrument.
For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the
scope of Ind AS 11 and Ind AS 18, the Company always measures the loss allowance at an amount equal to lifetime expected credit
losses.
Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a practical
expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes
into account historical credit loss experience and adjusted for forward-looking information.
e. Derecognition of financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the
financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers
nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises
its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the
risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also
recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration
received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in
equity is recognised in profit or loss if such gain or loss would have otherwise been recognised in profit or loss on disposal of that
financial asset.
f. Foreign exchange gains and losses
The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate
at the end of each reporting period.
• For foreign currency denominated financial assets measured at amortized cost and FVTPL, the exchange differences are recognised in
profit or loss except for those which are designated as hedging instruments in a hedging relationship.
• Changes in the carrying amount of investments in equity instruments at FVTOCI relating to changes in foreign currency rates are
recognised in other comprehensive income.
• For the purposes of recognizing foreign exchange gains and losses, FVTOCI debt instruments are treated as financial assets measured
at amortized cost. Thus, the exchange differences on the amortized cost are recognized in profit or loss and other changes in the fair
value of FVTOCI financial assets are recognised in other comprehensive income.
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)

3.18 Financial liabilities and equity instruments


a. Classification as debt or equity
Debt and equity instruments issued by the company are classified as either financial liabilities or as equity in accordance with the
substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
b. Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Equity instruments issued by a company entity are recognised at the proceeds received, net of direct issue costs.
Repurchase of the Company's own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in
profit or loss on the purchase, sale, issue or cancellation of the Company's own equity instruments.
c. Financial liabilities
All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.
However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing
involvement approach applies, financial guarantee contracts issued by the Company, and commitments issued by the Company to
provide a loan at below-market interest rate are measured in accordance with the specific accounting policies set out below.
c.1. Financial liabilities at FVTPL
Financial liabilities at FVTPL includes derivative liabilities. Non-derivative financial liabilities are classified as at FVTPL when the
financial liability is either contingent consideration recognised by the Company as an acquirer in a business combination to which Ind
AS 103 applies or is held for trading or it is designated as at FVTPL. There are no non-derivative financial liabilities carried at FVTPL.

Fair value is determined in the manner described in note 32.


A Financial liability is classified as held for trading if
i) It has been incurred principally for the purpose of repurchasing it in the near term; or
ii) on initial recognition it is part of a portfolio of identified financial instruments that the company manages together and has a recent
actual pattern of short-term profit taking; or
iii) it is a derivative that is not designated and effective as a hedging instrument.
c.2. Financial liabilities subsequently measured at amortised cost
Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortized cost at the end of
subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortized cost are
determined based on the effective interest method. Interest expense that is not capitalized as part of costs of an asset is included in the
'Finance costs' line item.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense
over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees
and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts)
through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial
recognition.
c.3. Foreign exchange gains and losses
For financial liabilities that are denominated in a foreign currency and are measured at amortized cost at the end of each reporting
period, the foreign exchange gains and losses are determined based on the amortized cost of the instruments and are recognised in
‘Other income’.
The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated at the spot
rate at the end of the reporting period. For financial liabilities that are measured as at FVTPL, the foreign exchange component forms
part of the fair value gains or losses and is recognised in profit or loss.
c.4. Derecognition of financial liabilities
The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have
expired. An exchange between with a lender of debt instruments with substantially different terms is accounted for as an
extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of
the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an
extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying
amount of the financial liability derecognized and the consideration paid and payable is recognised in profit or loss.
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)

3.19 Derivative financial instruments


The Company enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate
risks, including foreign exchange forward contracts, interest rate swaps and cross currency swaps.
a. Commodity Derivatives
Some of the company's commodity derivatives are treated as own use contracts, since they are both entered into, and continue to be
held in accordance with the entity's purchase, sale or usage requirements, and the Company takes physical delivery of the commodity
concerned. 'Own use' contracts are scoped out from the requirements under Ind AS 109. Hence such contracts have been identified and
are not recognized in books. Contracts other than 'own use' contracts i.e. where there is no physical delivery involved are treated as
'held for trading' and marked to market through income statement.
b. Other Financial Derivatives
All other financial derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are
subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in profit or loss
immediately.

3.20 Cash flow statement


Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are segregated based on the available information.

3.21 Fair Value Measurement


In a number of areas, accounting policies and disclosures being made by the Company require the determination of fair value, for both
financial and non-financial assets and liabilities. Fair Value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date.
For purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature,
characteristics and risks of the asset or liability, and the fair value hierarchy.
Fair values have been determined for measurement and disclosure purposes based on the following method:
Investments in Mutual Funds: The fair value of these financial assets is determined by reference to their quoted price at the reporting
date.
Derivatives: The fair value of forward exchange contracts is based on their quoted price. The fair value of cross currency swaps that
involves interest is determined by using appropriate valuation models.
Non derivative financial liabilities: Fair value, which is determined for disclosure purposes, is calculated based on the present value of
future principal and interest cash flows, discounted at the market rate of interest at the reporting date.

3.22 Cash and cash equivalents


Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of
three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash
and which are subject to insignificant risk of changes in value. Bank overdrafts that are repayable on demand are included as
component of cash and cash equivalent for the purpose of cash flow statement.

3.23 Equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or share options are
recognised as a deduction from equity, net of any tax effects.

3.23 Critical accounting judgements and key sources of estimation uncertainty


In the application of the Company's accounting policies, which are described in above notes, the directors of the Company are required
to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from
other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the
revision affects both current and future periods.
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)

Critical judgements in applying accounting policies


The following are the critical judgements, apart from those involving estimations, that the directors have made in the process of
applying the Company's accounting policies and that have the most significant effect on the amounts recognised in the financial
statements.
Determination of functional currency
In making their judgement, the directors considered the detailed scenario for the determination of USD as functional currency on the
basis of criteria laid down in Ind AS 21 and, in particular in which currency major purchases and sales are made.
Identifying non financial derivative instruments entered into and continued to be held for receipt or delivery of a non-financial
item in accordance with the entity's expected purchase, sale or usage requirements
In making their judgement, the directors considered the past purchase and sale patterns, business plans of the company and also
considers data from trade desk team to evaluate the contracts that are scoped out.
Key sources of estimation uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the
reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
the next financial year.
Impairment of property, plant and equipment
The carrying amount of property, plant and equipment are stated in Note 4. The recoverable amounts have been determined based on
value in use calculations which uses cash flow projections. For further details, refer note 3.13. Based on the impairment assessment
carried out by the Management, it has been determined that no impairment is required.
Fair value measurements and valuation processes
Some of the Company’s assets and liabilities are measured at fair value for financial reporting purpose.
In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available. Where Level
1 inputs are not available, the Company engages third party qualified valuers to perform the valuation. The CFO works closely with the
qualified external valuers to establish the appropriate valuation techniques and inputs to the model. Information about the valuation
techniques and inputs used in determining the fair value of various assets and liabilities are disclosed in notes 3 and 32.
Useful life of Property, Plant and Equipments
As described in note 3.11 above, the company reviews the estimated useful lives of the property, plant and equipment at the end of
each reporting period. During the current year, the directors determined that the useful lives of all the assets in the property, plant and
equipment with respect to previous year shall remain unchanged.
DE’PEDRO SUGAR INDUSTRIES
Notes forming part of the financial statements for the year ended March 31, 2020
(All amounts are in Rupees lakhs unless otherwise stated)

4 Property, Plant and Equipment


Description of Assets Buildings Plant and Equipment Office Equipment Furniture and Fixtures Vehicles Total
I. Cost
Balance as at April 1, 2019 14,391.61 32,629.71 10.08 34.83 3.57 47,069.80
Additions 253.84 1,113.74 16.79 6.71 0.24 1,391.32
Disposals - - (0.54) - (0.35) (0.89)
Effect of foreign currency translation from functional (304.68) (690.79) (0.75) (0.74) (0.36) (997.32)
currency to Presentation currency
Balance as at March 31, 2020 14,340.77 33,052.66 25.58 40.80 3.10 47,462.91
Additions 201.63 1,432.82 31.07 0.58 36.85 1,702.95
Disposals - - (0.21) - - (0.21)
Effect of foreign currency translation from functional 240.91
71.88 168.76 0.05 0.20 0.02
currency to Presentation currency
Balance as at March 31, 2021 14,614.28 34,654.24 56.49 41.58 39.97 49,406.56

II. Accumulated depreciation


Balance as at April 1, 2019 456.57 2,149.88 2.98 5.17 2.64 2,617.24
Depreciation expense for the year 559.84 2,221.85 11.07 5.53 0.17 2,798.46
Depreciation on disposals during the year - - (0.29) - - (0.29)
Effect of foreign currency translation from functional
(25.07) (111.61) (8.05) (0.29) - (145.02)
currency to Presentation currency

Balance as at March 31, 2020 991.34 4,260.12 5.71 10.41 2.81 5,270.39
560.41 2,216.37 9.77 5.74 7.11 2,799.40
Depreciation expense for the year
- (0.10) - - (0.10)
Depreciation on disposals during the year -
Effect of foreign currency translation from functional
11.23 45.42 0.14 0.12 0.09 57.00
currency to Presentation currency
Balance as at March 31, 2021 1,562.98 6,521.91 15.52 16.27 10.01 8,126.69

III.Carrying Amount
Balance as at March 31, 2020 13,349.43 28,792.54 19.87 30.39 0.29 42,192.53
Balance as at March 31, 2021 13,051.30 28,132.33 40.97 25.31 29.96 41,279.87

4.01 Refer to note 15 and 18 for details of charge on fixed assets.


DE’PEDRO SUGAR INDUSTRIES
Notes forming part of the financial statements for the year ended March 31, 2020
(All amounts are in Rupees lakhs unless otherwise stated)
4.02 Property, Plant and Equipment and Capital Work-In-Progress
Particulars As at March 31, 2021 As at March 31, 2020

Carrying amounts of:


Buildings 13,051.30 13,349.43
Plant and equipment 28,132.33 28,792.54
Furniture and Fixtures 25.31 30.39
Office Equipments 40.97 19.87
Vehicles 29.96 0.29
Total 41,279.87 42,192.53

Capital Work in Progress 4.29 355.92

5 Investment in subsidiary
Particulars As at March 31, 2021 As at March 31, 2020

Investment in unquoted equity instrument of subsidiary at cost


100 equity shares of AED 1,000 each fully paid up in Parry 17.74 -
International DMCC, a wholly owned subsidiary

Total 17.74 -
Aggregate amount of unquoted investments 17.74 -
Aggregate amount of impairment in value investments - -

6 Deferred tax assets (Net)


The balance comprises of temporary differences attributable to :
Particulars As at March 31, 2021 As at March 31, 2020

Deferred Tax Liability:


Depreciation 6,324.81 6,568.07
Total 6,324.81 6,568.07
Deferred Tax Asset:
Tax losses 6,109.88 6,366.30
Employee benefit obligations 18.99 7.56
Allowance for doubtful debts - trade receivables and advances 180.71 180.71
Provision for decommissioning liability 15.23 13.50
Total 6,324.81 6,568.07
Set-off of deferred tax liabilities pursuant to set-off provisions 6,324.81 6,568.07
Net deferred tax assets - -

6.01 The Company has unrecoginsed deferred tax assets to the tune of Rs. 20,892.90 (March 31, 2017: Rs. 21,120.98) arising from unused tax losses
amounting to Rs. 67,614.55 (March 31, 2017: 68,352.69). Since the entity has a history of recent losses, the entity recognises a deferred tax asset
arising from unused tax losses only to the extent that the entity has sufficient taxable temporary differences or there is convincing other evidence
that sufficient taxable profit will be available against which the unused tax losses or unused tax credits can be utilised by the entity. Accordingly
the same has been recognised only to the extent of deferred tax liability (net) resulting in "Nil" deferred tax asset/ liability as on March 31, 2018.
6.02 The Company is registered as a unit under SEZ and shall claim 50% exemption from income tax under Section 10AA of the Income Tax Act,
1961 (IT Act) from FY 2015-16 and such exemption is available up to financial year ending March 31,2020.

7 Other Financial Assets


A. Non Current:
Particulars As at March 31, 2021 As at March 31, 2020
Carried at amortised cost:
Unsecured, considered good
- Security Deposits with related parties* 130.58 118.68
Unsecured, considered doubtful
- Other Deposits 46.87 46.87
Less : Allowance for bad and doubtful deposits (46.87) (46.87)

Total 130.58 118.68

* The security deposit is against land taken on operating lease from "Parry Infrastructure Company Private Limited" (A fellow subsidiary).
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31,
2018 (All amounts are in Rupees lakhs unless otherwise stated)

B. Current:
Particulars As at March 31, 2018 As at March 31, 2017
At amortised cost
Unsecured, considered good)
Funds available with commodity exchange brokers 8,124.73 14,609.30
Interest accrued on deposits 3.28 3.28
Other Deposits 268.00 140.39

At Fair Value through profit or loss


(i) Derivatives
Marked to market gain on Swap Contract - 499.73

Total 8,396.01 15,252.70

8 Inventories
Particulars As at March 31, 2018 As at March 31, 2017
Raw materials 58,239.72 85,825.26
Work-in-progress 862.94 959.08
Finished goods 10,074.87 18,186.08
Consumables, Stores and spares 1,246.55 1,318.18
Total 70,424.08 106,288.60
8.01 The cost of inventories recognised as an expense in "Cost of materials consumed and changes in inventories of work-in-
progress, stock-in-trade and finished goods" includes Rs. 11,354.79 Lakhs (2016-17 - Nil) in respect of write-downs of
inventory to net realisable value, and has been reduced by Rs. Nil (2016-17 - Rs. 79 lakhs) in respect of reversal of such
write downs. The mode of valuation has been stated in Note 3.14

9 Current Investment
Particulars As at March 31, 2018 As at March 31, 2017
Designated as Fair Value Through Profit and Loss
Quoted Investment
Investments in Mutual Funds 2,762.07 3,043.99

Total 2,762.07 3,043.99


Aggregate book and market value of quoted investments 2,762.07 3,043.99

9.01 Current investments includes investments in the nature of "Cash and cash equivalents" (as defined in Ind AS 7 Statement
of cash flows) amounting to Rs. Nil lakhs as at March 31, 2018 (Previous Year Rs. 3,043.99 lakhs), considered as part of
Cash and cash equivalents in the Cash Flow Statement.

10 Trade receivables
Particulars As at March 31, 2018 As at March 31, 2017
Trade receivables outstanding
(a) Unsecured, considered good (Refer Note No. 10.01) 12,403.54 292.45
(b) Unsecured, considered Doubtful 222.24 222.24
Less: Provision for doubtful debts (222.24) (222.24)
Total 12,403.54 292.45
10.01 Trade receivable includes Rs. 1,410.56 Lakhs (March 31, 2017: Rs. Nil) receivable from the Holding Company,
E.I.D.-Parry (India) Limited
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31,
2018 (All amounts are in Rupees lakhs unless otherwise stated)

10.01 Movement in the allowance for doubtful debts


Particulars For the year ended For the year ended March
March 31, 2018 31, 2017
Balance at beginning of the year (222.24) (222.24)
Foreign exchange translation gains and losses - -
Balance at end of the year (222.24) (222.24)

11 A .Cash and Cash Equivalents


Particulars As at March 31, 2018 As at March 31, 2017
Cash and bank balances
Cash in hand 0.16 0.20
Balances with banks
In current account 3,622.78 1,677.86
In deposit accounts with original maturity of less than three
months 5,817.14 -

Total 9,440.08 1,678.06


B. Other Bank Balance
Particulars As at March 31, 2018 As at March 31, 2017
Other bank balances
Deposit accounts with original maturity period of more than three 5,816.81
months and less than twelve months -

Total - 5,816.81

11.1 Cash and cash equivalents here includes cash in hand and in banks excluding overdraft
11.2 Details of Specified Bank Notes held and transacted during the period from 08/11/2016 to 30/12/2016:
During the year ended March 31, 2017, the Company had specified bank notes or other denomination note as defined in
the MCA notification G.S.R.308E dated March 31, 2017 on the details of Specified Bank Notes (SBN) held and
transacted during the period from November 08, 2016 to December 30, 2016, the denomination wise SBNs and other
notes as per the notification is given below:
Particulars Specified Bank Notes Other denomination notes
Closing cash in hand as on 08/11/2016 0.08 0.01
(+) Permitted receipts - 0.15
(-) Permitted payments 0.08 0.08
(-) Amount deposited in Banks
Closing cash in hand as on 30/12/2016 - 0.07
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31,
2018 (All amounts are in Rupees lakhs unless otherwise stated)

12 Other assets
A. Non-current
As at As at
Particulars
March 31, 2018 March 31, 2017
(a) Security deposit
Deferred Expense arising from Interest free 977.92 1,021.99
deposits carried at amortised cost
(b) Balances with government authorities
(other than income taxes)
Deposits with Government Authorities 26.51 26.51
(c) Loans and Advances
Advance income tax (net of provision for 190.20 185.35
income tax - Rs. Nil (March 31, 2017 - Rs. Nil)
Total 1,194.63 1,233.85
B. Current
As at As at
Particulars
March 31, 2018 March 31, 2017
(a) Advances to suppliers
- Unsecured, considered good 865.36 814.00
- Unsecured and considered doubtful 315.71 315.71
Less : Provision for doubtful advances (315.71) (315.71)
(b) Deferred losses on Commodity future
- 6,711.21
contracts
(c) Balances with government authorities
(other than income taxes)
Service Tax Recoverable 38.19 36.40
VAT Recoverable 0.93 0.93
Customs Duty 76.36 -
(d) Prepayments
Prepaid expenses 61.24 11.60
Total 1,042.08 7,574.14
12.01 Advances to suppliers (unsecured, considered good) as at March 31, 2018 includes Rs. Nil lakhs (March 31, 2017 - Rs. 42.27 lakhs)
dues from the holding company, E.I.D.- Parry (India) Limited.
13 Equity Share Capital
As at March 31, 2018 As at March 31, 2017
Particulars
No. of shares Amount No. of shares Amount
Authorised Share capital:
Equity Shares of Rs.10 each 320,000,000 32,000.00 320,000,000 32,000.00

Issued, Subscribed and Fully Paid up :


Equity Shares of Rs.10 each 301,250,000 30,125.00 270,725,670 27,072.57

Total 301,250,000 30,125.00 270,725,670 27,072.57

13.01 Reclassification of Authorised Share Capital:


During the year ended March 2017, the authorised share capital of the company was reclassed as follows:
170,000,000 Equity shares of Rs 10 each amounting to Rs 1,700,000,000 and 15,000,000 Preference shares of Rs 100
each amounting to Rs 1,500,000,000 has been reclassified into 320,000,000 equity shares of Rs 10 each amounting to Rs
3,200,000,000.
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31,
2018 (All amounts are in Rupees lakhs unless otherwise stated)

13.02 Conversion of Preference shares in to Equity shares


During the year ended March 2017, the Company converted 10% 11,300,000 cumulative redeemable preference shares of
Rs. 100/- and 8% 2,800,000 cumulative redeemable preference shares of Rs.100/- each respectively aggregating to Rs.
14,100 lakhs into 104,444,445 equity shares of Rs.10/- each at premium of Rs.3.50/- per share, vide board resolution
dated 20th March 2017 and approved by the members in the extra ordinary general meeting held on the same date. The
dividend payable on these preference shares have been waived by EID Parry (India) Limited, the holding company.

13.03 Issue of Equity Shares


During the year ended March 31,2018, the Company has issued to E.I.D.-Parry (India) Limited, through private
placement, 3,05,24,330 equity shares of Rs.10 each at premium of Rs.9 per share, vide board resolution dated March 31,
2018 and approved by the members in the EGM held on the same date,aggregating to Rs 5,799.62 lakhs.

13.04 Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the period.
Conversion of
Particulars Opening Balance Fresh Issue Preference Closing Balance
Shares
Equity Shares
Year ended March 31, 2018
No. of Shares 270,725,670 30,524,330 - 301,250,000
Amount 27,072.57 3,052.43 - 30,125.00

Year ended March 31, 2017


No. of Shares 166,281,225 - 104,444,445 270,725,670
Amount 16,628.12 - 10,444.45 27,072.57

13.05 Rights, Preferences and restrictions attaching to each class of equity shares
The Company has one class of equity shares having a Par value of Rs.10 per share. Each share holder is entitled for one
vote. Repayment of share capital on liquidation will be in proportion to the number of equity shares held. The dividend
proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting.

13.06 Details of shares held by the holding Company:


Particulars No. of Shares Amount
As at March 31, 2018
Equity Shares of Rs. 10 each fully paid up,
301,250,000 30,125.00
held by E.I.D.- Parry (India) Limited
As at March 31, 2017
Equity Shares of Rs. 10 each fully paid up,
270,725,670 27,072.57
held by E.I.D.- Parry (India) Limited

13.07 Details of shares held by each shareholder holding more than 5% shares:
As at March 31, 2018 As at March 31, 2017

Class of shares / Name of shareholder Number of shares % holding in Number of % holding in that
held that class of shares held class of shares
shares
Equity Shares of Rs. 10 each fully paid up:
E.I.D.- Parry (India) Limited 301,250,000 100% 270,725,670 100%

13.08 No shares were allotted as fully paid up pursuant to contract(s) without payment being received in cash, bonus shares and
shares bought back during the period of 5 years immediately preceding the balance sheet date.
13.09 There are no calls unpaid/ forfeited shares issued during the year ended March 31, 2018 or in previous year.
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)

14 Other Equity
Particulars As at March 31, 2018 As at March 31, 2017

(a) Securities Premium Account


Opening balance 34,397.00 30,741.44
Addition on fresh issue of Equity Share capital (Refer Note 13.01, 13.02 and
2,747.19 3,655.56
13.03)
Closing balance 37,144.19 34,397.00

(b) Debenture Redemption Reserve


Opening balance 1,415.66 -
Transfer from Retained Earnings - 1,415.66
Closing balance 1,415.66 1,415.66

(c) Retained Earnings


Opening Balance (58,116.14) (58,116.14)
(Loss) / Profit for the year (7,594.55) 1,415.66
Transfer to Debenture Redemption Reserve - (1,415.66)
Closing Balance (65,710.69) (58,116.14)

(d) Foreign Currency Translation Reserve


Opening balance (394.16) (472.61)
Addition during the period (61.75) 78.45
Closing balance (455.91) (394.16)

(e) Other Items of other comprehensive income


Opening balance 4.99 3.89
Remeasurements of Defined Benefit Plans (14.51) 1.10
Closing balance (9.52) 4.99

Total (a+b+c+d+e) (27,616.27) (22,692.66)


Note:
(i) Securities Premium Reserve
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions
of Companies Act, 2013.
(ii) Debenture Redemption Reserve
Debenture redemption reserve is created as per the statutory requirements to maintain funds to repay the debenture liability. These will
be subsequently transferred to Retained Earnings on payment of the debenture liability.
(iii) Retained Earnings
The amount that can be distributed by the Company as dividends to its equity shareholders is determined considering the requirements
of the Companies Act, 2013.
(iv) Foreign Currency Translation Reserve
Exchange differences relating to the translation of the assets and liabilities, Income or expenses from functional currency in to
presentation currency is recognised directly in the foreign currency translation reserve.
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)

15 Non Current Borrowings


As at March As at March
Particulars
31, 2018 31, 2017
Measured at amortised cost
Secured Borrowings:
- Privately placed, redeemable, Non-Convertible Debentures 13,500.00 27,000.00

Total 13,500.00 27,000.00

The details of the above debentures are as follows:


N.C.D - ISIN: INE082O07018 - IndusInd Bank - 13,500.00
N.C.D - ISIN: INE082O07026 - IndusInd Bank 13,500.00 13,500.00

Total 13,500.00 27,000.00

15.01 1,350 10.05% Series A Secured, Unlisted, Redeemable Non - Convertible Debentures and 1,350 10.05% Series B
Secured, Redeemable, Non - Convertible Debentures of Rs. 10,00,000 each aggregating to Rs.27,000 Lakhs, have been
allotted on July 16, 2014. This is secured by exclusive charge on the fixed assets of the Company. Debentures are
redeemable in full at par on July 16, 2018 and July 16, 2019 in equal installments of Rs 13,500 Lakhs each. The
Holding Company E.I.D.- Parry (India) Ltd has given Corporate Guarantee to the Debenture Trustee IDBI Trusteeship
Services Limited against this issue.
15.02 The Principal INR liability of Debentures mentioned in the above table aggregating to Rs.27,000 Lakhs has been
swapped for USD 44,665,012. The swap trade is effective from August 22, 2014 and termination date is July 12, 2019.
Interest liability of 10.05% p.a. in Indian Rupees has been swapped for 3.4% fixed per annum on Effective USD
Notional.The Company has unwound swap contract partially and the outstanding swap contract as on March 31, 2018
USD 9,665,012.
15.03 The Company has not defaulted in repayment of debentures and interest thereon.
15.04 Net Debt Reconciliation
Particulars As at March 31, As at March 31,
2018 2017
1. Cash and cash equivalents 9,440.08 4,722.05
2. Liquid Investments 2,762.07 -
3. Current borrowings (refer note 15.05) (44,932.59) (41,629.51)
4. Non-current borrowings (refer note 15.05) (28,925.47) (34,653.45)
5. Liability on Swap contract (95.48) 499.73
Net Debt (61,751.39) (71,061.18)

Particulars Other assets Liabilities from financing activities


Cash and cash Non-current Current Liability arising
Liquid investments
equivalents borrowings borrowings from Swap

Net debt as at March 31, 2017 4,722.05 - (34,653.45) (41,629.51) 499.73


Cash flows 4,718.03 2,796.72 6,000.00 (3,271.19) -
Acquisition - finance leases - - - - -
Foreign exchange adjustments - - - - -
Interest expense - - (2,985.52) (1,415.30) -
Interest paid - - 2,713.50 1,383.41 -
Other non-cash movements - - - - -
- Acquisitions / disposals - - - - -
- Fair value adjustments - (34.65) - - (595.21)

Net debt as at March 31, 2018 9,440.08 2,762.07 (28,925.47) (44,932.59) (95.48)

15.05 Break-up of current and non-current borrowings


Particulars As at March 31, 2018 As at March 31, 2017
Current Non-current Current Non-current
Long term borrowings (refer note 15) - 13,500.00 - 27,000.00
Current borrowings (refer note 18) 44,746.44 - 41,475.25 -
Current maturities of current borrowings (refer note 16) - 13,500.00 - 5,727.98
Interest accrued but not due on borrowings (refer note 16) 186.15 1,925.47 154.26 1,925.47
Total 44,932.59 28,925.47 41,629.51 34,653.45
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31,
2018 (All amounts are in Rupees lakhs unless otherwise stated)
16 Other Financial Liabilities
As at As at March
Particulars
March 31, 2018 31, 2017
Current
(i) Other Financial Liabilities Measured at amortised cost
(a) Current Maturities of Long-term debt (Refer Note 15 and 16.01) 13,500.00 5,727.98
(b) Interest accrued but not due on borrowings 2,111.62 2,079.73
(c) Other Payables - 1.00
(ii) Other Financial Liabilities Measured at FVTPL
(a) Derivatives
Marked to Market Liability on Swap Contracts 95.48 -
Marked to Market Liability on Commodity Contracts 879.81 5,639.08
Marked to Market Liability on Forward Contracts 168.48 -
Total 16,755.39 13,447.79
16.01 600 Secured, Unlisted, Redeemable, Non-convertible Debentures with Zero Coupon and a yield of 10.20% p.a. having 3 years
tenor with a maturity amount of Rs. 6,000 Lakhs have been repaid fully in the current year on the due date.
17 Provisions
As at March As at March
Particulars
31, 2018 31, 2017
A. Long term provisions:
Provision for employee benefits
Provisions for compensated absences (Refer note 30) 28.81 20.48
Provision for Decommissioning liability 49.30 43.69
Total 78.11 64.17
B. Short term provisions:
Provision for employee benefits
Provisions for compensated absences (Refer note 30) 2.42 1.67
Provision for Duties and taxes 51.49 -
Total 53.91 1.67
Movement in provisions
As at As at
Particulars March 31, 2018 March 31, 2017

Provision for decommissioning liability (Non Current)


Opening Balance 43.69 38.72
Addition during the year 5.61 4.97
Closing Balance 49.30 43.69

Provision for Duties and Taxes (Current)


Opening Balance - -
Addition during the year 51.49 -
Closing Balance 51.49 -
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)
18 Current Borrowings
As at As at March 31,
Particulars
March 31, 2018 2017
A. Secured Borrowings
Loans repayable on demand
From Banks 35,752.98 41,475.25
Total Secured Borrowings 35,752.98 41,475.25
B. Unsecured Borrowings
Loans repayable on demand
From Banks 8,993.46 -
Total Unsecured Borrowings 8,993.46 -
Total 44,746.44 41,475.25
Break up of current borrowings:
As at As at March 31,
Particulars
March 31, 2018 2017
Secured Borrowings
Buyers Credit
Yes Bank (Refer note 18.01) 13,034.00 13,972.95
RBL Bank (Refer note 18.02) 13,034.00 14,533.30
Axis Bank (Refer note 18.03) 7,729.88 -
IDFC Bank (Refer note 18.04) - 12,969.00
Packing Credit in Foreign Currency (PCFC)
Yes Bank 1,955.10 -
Sub Total 35,752.98 41,475.25
Unsecured Borrowings
Packing Credit in Foreign Currency (PCFC)
Deutsche Bank (refer note 18.05) 8,993.46 -
Sub Total 8,993.46 -

Total 44,746.44 41,475.25

18.01 The Buyers Credit facility and Packing Credit facility from Yes Bank is secured by first pari passu charge on all current asset
of the borrower by way of hypothecation of Company's current asset viz. stock of raw materials, stock -in-process, finished
goods, consumable stores, spares, receivables etc., second pari passu charge on all movable fixed assets of the Company. The
Interest rate on these foreign currency loans are ranging from 2.16% to 2.24% p.a. Further, the facilities are backed by a letter
of comfort from the Holding Company, E.I.D. - Parry (India) Limited.
18.02 The Buyers Credit facility from RBL Bank is secured by first pari passu charge on all current asset of the borrower by way of
hypothecation of Company's current asset viz. stock of raw materials, stock -in-process, finished goods, consumable stores,
spares, receivables etc., both present and future and second pari passu charge on all movable fixed assets of the Company. The
Interest rate on these foreign currency loans ranging from 2.00% to 2.06% p.a. Further, the faciliy is backed by a letter of
awareness from the Holding Company, E.I.D. - Parry (India) Limited.
18.03 The Buyers Credit facility from Axis Bank is secured by first pari passu charges on all current assets. The Interest rate on
these foreign currency loans is at 1.96 % p.a.
18.04 The Buyers Credit facility from IDFC Bank is secured by first pari passu charge on all current asset of the borrower by way of
hypothecation of Company's current asset viz. stock of raw materials, stock -in-process, finished goods, consumable stores,
spares, receivables etc., both present and future and second pari passu charge on all movable fixed assets of the Company. The
Interest rate on these foreign currency loans is 1.58%.
18.05 Packing credit facility from Deutsche Bank carries an average interest rate of 2.38% p.a.
18.06 The Company has not defaulted in repayment of any loans or interest thereon.
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)
19 Trade Payables
As at March As at March 31, 2017
Particulars
31, 2018
Trade payable for goods and services 69,046.59 97,327.54
Trade payable (Employee related) 86.35 94.49
Total 69,132.94 97,422.03
19.01 Trade payable for goods and services includes Rs. Nil due to the holding company E.I.D.- Parry (India) Ltd as at March
31,2018. (March 31, 2017: Rs.76.19 lakhs).
19.02 There are no dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, as at March
31, 2018 which is on the basis of such parties having been identified by the management and relied upon by the auditors.
19.03 The average credit period is 30 days and there is no interest outstanding on amount outstanding for more than 30 days. The
company has financial risk management policies in place to ensure that all payables are paid within the pre agreed credit
terms.

20 Other Non Financial Liabilities


As at March As at
Particulars
31, 2018 March 31, 2017
A. Non Current
Gratuity payable (Also refer note 30) 30.23 2.30
Total 30.23 2.30
B. Current
Statutory remittances (Contributions to PF, Withholding Taxes, VAT) 289.22 54.61
Total 289.22 54.61

21 A. Revenue from Operations


For the year ended For the year ended
Particulars March 31, 2018 March 31, 2017

Revenue from sale of goods (Refer note 21.01) 238,446.58 184,080.16


Other operating income (Refer note 21.02) 3,373.17 605.88
Total 241,819.75 184,686.04

21.01 Classes of Products-Sales


For the year ended For the year ended
Particulars March 31, 2018 March 31, 2017

Export Sales:
Sugar (including sale of raw sugar) 235,770.90 182,012.61
PP Bags 69.00 75.29
Domestic Sales:
Molasses 2,038.91 1,595.29
Power 567.77 396.97
Total 238,446.58 184,080.16
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31,
2018 (All amounts are in Rupees lakhs unless otherwise stated)
21.02 Other operating income
For the year For the year
Particulars ended ended March
March 31, 2018 31, 2017
Despatch Money earnings 398.96 260.77
Income from Services 1,175.30 -
Liabilities no longer required written back 1,369.53 -
Income from Misc. Receipts and Handling 347.99 -
Contract cancellation charges - 293.02
Sale of scrap 81.39 52.09
Total 3,373.17 605.88

21 B. Other Net gains - Derivative sugar contracts


For the year For the year
Particulars ended March ended March
31, 2018 31, 2017
Net Gains on commodity Contracts (Refer note 21.03) 11,127.95 -
Total 11,127.95 -
21.03 The sugar derivative contracts are an integral part of the sugar business.
22 Other Income
For the year For the year
Particulars ended March ended March
31, 2018 31, 2017
Interest Income on Financial Assets at Amortised Cost
Bank Deposits 48.99 17.86
Others 15.23 -
Dividend Income
On Financial Assets at FVTPL (Mutual Funds) 575.00 231.87
Gain on Swap Contracts 461.22 2,419.52
Net gain on foreign currency transactions and translations - 441.55
Net gain / (loss) arising on financial assets designated as at FVTPL - 45.49
Profit on sale of assets - 1.11
Sundry Income - Insurance Claims 37.67 -
Total 1,138.11 3,157.40

23 Cost of materials consumed


For the year For the year
Particulars ended March 31, ended March 31,
2018 2017
Material consumed comprises of :
Raw Sugar 200,572.59 158,379.73
Coal 4,468.64 3,210.80
Total 205,041.23 161,590.53

24 Changes in inventories of finished goods, work-in-progress and stock-in-trade


For the year For the year
Particulars ended March ended March
31, 2018 31, 2017
Inventories at the end of the year:
Finished goods 10,074.87 18,186.08
Work-in-progress 862.94 959.08
10,937.81 19,145.16
Inventories at the beginning of the year:
Finished goods 18,186.08 13,259.11
Work-in-progress 959.08 517.46
19,145.16 13,776.57

Foreign currency translation (11.39) (485.80)

Net Increase / (Decrease) 8,195.96 (5,854.39)

25 Employee Benefits Expense


For the year For the year
Particulars ended March ended March
31, 2018 31, 2017
Salaries and wages, including bonus 627.92 468.48
Contribution to provident and other funds (Refer Note 30) 65.80 42.54
Staff welfare expenses 153.08 132.85
Total 846.80 643.87
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31,
2018 (All amounts are in Rupees lakhs unless otherwise stated)
26 Finance Cost
For the year For the year
Particulars ended March ended March
31, 2018 31, 2017
Interest Expenses on Borrowings 3,499.48 4,053.23
Unwinding of Interest on debentures 272.74 528.98
Other borrowing costs 629.33 759.03
Total 4,401.55 5,341.24
26.01 Other borrowing costs includes commitment charges, loan processing charges, guarantee charges, loan facilitation charges and other ancillary
costs incurred in connection with borrowings.

27 Other Expenses
For the year For the year
Particulars ended March ended March
31, 2018 31, 2017
Consumption of Stores, Spares and Consumables 4,488.53 4,102.33
Freight, Forwarding and Material Handling 1,484.60 2,723.56
Power and Fuel 129.70 226.15
Water Charges 202.79 519.43
Repairs and Maintenance - Machinery 1,570.69 1,949.19
Repairs and Maintenance - Buildings 144.09 450.32
Repairs and Maintenance - Others 364.59 749.58
Audit Fee (Refer Note 28) 10.27 7.35
Communication Expenses 17.28 14.16
Insurance 88.60 91.70
Professional and Outsourcing Expenses 938.67 1,000.56
Rates and Taxes 252.00 298.58
Rent 1,042.26 1,314.67
Selling Expenses 2,575.72 2,452.89
Travelling Expense 100.91 90.93
Unwinding of Decommissioning costs 5.60 4.98
Commission paid 745.98 440.81
Net loss on forward Contracts 185.11 -
Net realised losses on commodity futures - 1,013.95
Net loss on commodity contracts - 4,422.36
Net loss on foreign currency transactions and translation 416.28 -
Loss on sale of Fixed assets 0.11 -
Net gain / (loss) arising on financial assets designated as at FVTPL 34.65 -
Miscellaneous expenses 93.23 34.57
Total 14,891.66 21,908.07
27.01 Rent includes the operating lease rentals of Rs. 880.26 Lakhs (PY: Rs.1180.42 Lakhs)
28 Payments to the statutory auditors comprises of :
For the year For the year
Particulars ended March ended March
31, 2018 31, 2017
Statutory audit 5.00 4.50
Tax audit 0.75 0.75
Other services 4.50 2.10
Reimbursement of expenses 0.02 -
Total 10.27 7.35

29 Reconciliation of tax expense and the accounting profit multiplied by India’s tax rate:
For the year For the year
Particulars ended March ended March
31, 2018 31, 2017

Profit from operations before income tax expense (7,594.55) 1,415.66


Tax at the Indian tax rate of 30.90% (2018-2019 – 30.90%) (2,346.72) 437.44
Tax effect of amounts which are not deductible (taxable) in calculating taxable income: (45.92) 27.97
Effect of unused tax losses and tax offsets not recognised as deferred tax assets 2,392.64 (465.41)
Income tax expense - -

29.01 Tax losses


For the year For the year
Particulars ended March ended March
31, 2018 31, 2017
Unused tax losses for which no deferred tax asset has been recognised 67,614.55 68,352.69
Potential tax benefit @ 30.9% 20,892.90 21,120.98
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)
30 Employee benefits
(a) Defined Contribution Plan
The Company makes Provident Fund and Superannuation Fund contributions which are defined contribution plans, for qualifying employees.
Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions
payable to these plans by the Company are at rates specified in the rules of the schemes.
During the year the following amounts have been recognised in the Statement of Profit and Loss on account of defined contribution plans:
For the year ended For the year ended
Particulars
March 31, 2018 March 31, 2017
Employers contribution to Provident Fund 28.25 20.69
Employers contribution to Superannuation Fund 23.80 17.25
(b) Defined Benefit Plans:
Gratuity
The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the
Payment of Gratuity Act, 1972 or the Company scheme applicable to the employee. The benefit vests upon completion of five years of continuous
service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is
payable irrespective of vesting. The Company makes annual contribution to the Company gratuity scheme administered by the Life Insurance
Corporation of India through its Gratuity Trust Fund.
The Company is exposed to various risks in providing the above gratuity benefit which are as follows:
Interest Rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate
cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements).
Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.
Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants
in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present
value of obligation will have a bearing on the plan's liability.
Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the
risk of actual experience turning out to be worse compared to the assumption.
Defined benefit plans – as per actuarial valuation on March 31, 2018
Amount recognised in the Balance Sheet and the movements in the net Defined Benefit Obligation over the year are as follows : -
Gratuity - Funded Plan
Particulars
March 31, 2018 March 31, 2017

I. Net Asset/(Liability) recognised in the Balance Sheet


as at 31st March
1. Present value of defined benefit obligation as at 31st
March 53.35 15.44
2. Fair value of plan assets as at 31st March 23.12 13.14
3. Surplus/(Deficit) 30.23 2.30
4. Current portion of the above - -
5. Non current portion of the above 30.23 2.30

II. Change in the obligation during the year ended 31st


March
1. Present value of defined benefit obligation at the
beginning of the year 15.44 11.67
2. Expenses Recognised in Profit and Loss Account
- Current Service Cost 7.71 4.32
- Interest Expense (Income) 1.12 0.93
3. Benefit payments (1.70) (0.38)
4. Acquisition Adjustment 10.74 -
5. Past Service Cost 5.87 -
6. Remeasurement or Actuarial (gain)/loss arising from:
'-change in financial assumption (2.23) 1.18
'- experience variance 16.40 (2.28)
7. Present value of defined benefit obligation at the end of 53.35 15.44
the year
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)
III. Change in fair value of assets during the year ended
31st March
1. Fair value of plan assets at the beginning of the year 13.14 8.09
2. Investment Income 0.95 0.65
4. Contributions by employer 0.33 4.78
5. Benefit payments (1.70) (0.38)
6. Return on plan assets excluding amount recognised in net
interest expense (0.34) -
7. Acquisition Adjustment 10.74 -
Fair value of plan assets at the end of the year 23.12 13.14
IV.Amounts recognised in comprehensive income in
respect of these defined benefit plans are as follows:
Current Service Cost 7.71 4.32
Past Service Cost 5.87 -
Net interest expense 0.17 0.29
Expenses recognised in the income statement 13.75 4.60
Actuarial gains/ (losses)
-Changes in financial assumptions (2.23) 1.18
-experience variance 16.40 (2.28)
Return on plan assets, excluding amount recognised in net 0.34 -
interest expense
Expenses recognised in other comprehensive income 14.51 (1.10)
Total expenses recognised during the period 28.26 3.50
V. The Major categories of plan assets
- LIC Trusts 100% 100%
VI. Actuarial assumptions
1. Discount rate 7.70% 7.25%
2. Attrition rate 5% 5%
3. Salary escalation rate 6% 6%
4. Mortality rate IALM (2006-2008) Ultimate
VII. Experience Adjustments :
1. Experience adjustment on plan liabilities [(Gain)/Loss] 16.40 (2.28)
The remeasurement of the net defined benefit liability is included in other comprehensive income.
VIII. Sensitivity Analysis :
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality.
The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting
period, while holding all other assumptions constant. The results of sensitivity analysis is given below:
Particulars March 31, 2018 March 31, 2017
Discount rate
- 1% increase 4.52 1.56
- 1% decrease (5.19) (1.82)
Salary growth rate
- 1% increase (4.39) (1.49)
- 1% decrease 3.87 1.31
Mortality rate
- increase of 10% of mortality rate (0.03) (0.01)
- decrease of 10% of mortality rate 0.03 0.01
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)
Sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely the change in
assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected
unit credit methodd at the end of the reporting period, which ais the same as that applied in calculating the defined benefit obligation liability
recognised in the balance sheet.
There was no change in the methods of assumptions used in preparing the sensitivity analysis from prior years.
The Company has invested the plan assets with the insurer managed funds. The insurance company has invested the plan assets in Government
Securities, Debt Funds, Equity shares, Mutual Funds, Money Market Instruments and Time Deposits. The expected rate of return on plan asset is
based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation.
IX. Effect of Plan on Entity's Future Cash Flows:
a) Funding arrangements and Funding Policy
The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance company carries
out a funding valuation based on the latest employee data provided by the Company.
b) Expected Contribution during the next annual reporting period
The Company's best estimate of the contribution expected to be paid to the plan during the next year is Rs. 30.23 lakhs which is equivalent as per
exchange rate existing on the end of reporting period.
c) Maturity Profile of Defined Benefit Obligation
Weighted average duration (based on discounted cashflows) - 9 years
d) The expected maturity analysis of undiscounted defined benefit is as follows:

Expected cash flows over the next (valued on undiscounted basis):


2017-18 2016-17
1 year 3.20 0.52
2 to 5 years 14.92 3.92
6 to 10 years 29.10 6.76
More than 10 years 77.78 29.28
(c) Long Term Compensated Absences
The compensated absences cover the company's liability for earned leave.
31 Earnings Per Share (EPS)
For the year ended For the year ended
Particulars
'March 31, 2018 March 31, 2017
Profit / (loss) for the year attributable to owners of the (7,594.55) 1,415.66
Company (a)
Number of Equity Shares of Rs.10 each outstanding at the 270,725,670 166,281,225
beginning of the year
Add : Number of Equity shares of Rs. 10 each issued during 30,524,330 104,444,445
the year
Number of Equity Shares of Rs.10 each outstanding at the 301,250,000 270,725,670
end of the year
Weighted average number of equity shares (b) 270,809,298 164,632,244
Basic and Diluted Earnings Per Share (a/b) (2.80) 0.86

31.01 The Basic earnings per share are computed by dividing the net loss attributable to equity shareholders for the year by the weighted average number
of equity shares during the year. There are no potential equity shares hence the Basic and Diluted earnings per share are the same.

32 Financial Instruments
32.01 Capital Management
The Company’s capital management is intended to maximise the return to shareholders for meeting the long-term and short-term goals of the
Company through the optimization of the debt and equity balance.
The Company determines the amount of capital required on the basis of annual and long-term operating plans and strategic investment plans. The
funding requirements are met through equity and long-term/short-term borrowings. The Company monitors the capital structure on the basis of Net
debt to equity ratio and maturity profile of the overall debt portfolio of the Company.
For the purpose of capital management, capital includes issued equity capital, securities premium and all other reserves attributable to the equity
shareholders of the Company. Net debt includes all long and short-term borrowings (including currenct maturities of long term borrowings and
interest accured) as reduced by cash and cash equivalents and liquid investments.
The following table summarises the capital of the Company:
Particulars As at As at March
March 31, 2018 31, 2017
Equity 2,508.73 4,379.91
Debt 73,858.06 76,282.96
Cash and Cash equivalents (9,440.08) (4,722.05)
Liquid Investments (2,762.07) -
Net debt 61,655.91 71,560.91
Net debt to equity ratio - Percentage 24.58 16.34
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts in lakhs unless otherwise stated)
32.02 Categories of financial instruments
As at As at
Particulars
March 31,2018 March 31,2017
Financial Asset
Measured at amortised costs
a) Trade Receivables 12,403.54 292.45
b) Cash and Bank Balances 9,440.08 7,494.87
c) Other financial asset 8,526.59 14,871.65
Measured at Fair value through Profit or Loss(FVTPL)
a) Mandatorily measured (Investments in Mutual Funds) 2,762.07 3,043.99
b) Derivative instruments not designated in hedge accounting - 499.73
relationship

Measured at cost
a) Investment in equity instruments in subsidiary 17.74 -

Financial Liabilities
Measured at amortised costs
a) Trade payables 69,132.94 97,422.03
b) Current Borrowings 44,746.44 41,475.25
c) Long term Borrowings 13,500.00 27,000.00
d) Other Financial liabilities 15,611.62 7,808.71

Measured at Fair value through Profit or Loss(FVTPL)


a) Derivative instruments not designated in hedge accounting 1,143.77 5,639.08
relationship

Financial risk management objectives


The Company has adequate internal processes to assess, monitor and manage financial risks. These risks include market risk (including price risk, currency risk, interest rate risk), credit
risk and liquidity risk. The Company seeks to minimise the effects of these risks by using financial instruments such as commodity contracts, foreign currency forward contracts, interest
and currency swaps to hedge risk exposures and appropriate risk management policies as detailed below.
The risk management objective of the company is to hedge risk of change in the foreign currency exchange rates associated with it's direct & indirect transactions denominated in
foreign currency. Since most of the transactions of the company are denominated in its functional currency (USD), any foreign exchange fluctuation affects the profitability of the
Company and its financial position. Hedging provides stability to the financial performance by estimating the amount of future cash flows and reducing volatility. The Company's
activities expose it to a variety of financial risks: market risk, credit risk, liquidity risk, price risk . The Company's primary focus is to foresee the unpredictability of financial markets
and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is price risk. The Company uses derivative financial & non
derivative instruments to mitigate the foreign exchange related risk exposure and the price risk exposures.
The Company's risk management is carried out by a central treasury department under policies approved by the board of directors. The board provides written principles for overall risk
management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial
instruments, and investment of excess liquidity.The Company does not enter into trade financial instruments, including derivative financial instruments, for speculative purposes.
Item Primarily affected by Risk management policies Refer
Market risk - commodity price risk Change in market prices of raw sugar Mitigating price risk using commodity Note 32.03.1
and white sugar contracts and option contracts
Market risk - currency risk Exposure towards trade payables, trade Mitigating foreign currency risk using Note 32.03.2
receivables and borrowings foreign currency forward contracts and
denominated in foreign currency cross currency swaps
Market risk - interest rate risk Change in market interest rates Mitigating interest rate risk using interest Note 32.03.3
rate swaps
Credit risk Ability of customers or counterparties Credit approval and monitoring practices; Note 32.04
to financial instruments to meet counterparty credit policies and limits;
contractual obligations arrangements with financial institutions

Liquidity risk Fluctuations in cash flows Preparing and monitoring forecasts of Note 32.05
cashflows; cash management policies;
multiple-year credit and banking facilities

32.03 Market Risk


The Company's activities expose it primarily to the financial risks of price changes, changes in foreign currency exchange rates and interest rate risks. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
Market risk exposures are measured using sensitivity analysis. There has been no change to the Company's exposure to market risks or the manner in which these risks are being managed
and measured.
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts in lakhs unless otherwise stated)

32.03.1 Commodity Price Risk


Commodity Price Risk arises from the procurement of raw sugar and sale of refined sugar and the consequent exposure to changes in market prices.
Exposure to the market prices of the raw sugar procured and white sugar sold is managed through the use of commodity futures and other hedging instruments, including options
primarily to convert floating or indexed prices to fixed prices. The use of such contracts to hedge commodity exposures is governed by the company's risk management policies and
continuously monitored by the Trade desk team. Commodity derivatives also provides a way to meet customer's pricing requirements whilst achieving a price structure consistent with the
company's over all pricing strategy.
Some of the company's commodity contracts are treated as own use contracts, since they are both entered into, and continue to be held in accordance with the entity's purchase, sale or
usage requirements, and the Company takes physical delivery of the commodity concerned. 'Own use' contracts are scoped out from the requirements under Ind AS 109. Hence such
contracts have been identified and are not recognized in books. All other commodity contracts are marked to market through income statement.
The table below illustrates the sensitivity of the Company’s commodity pricing contracts to the price movement of commodities:
Particulars Impact on INR (-10% change) Impact on INR (+10% change)
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
Impact on Profit or loss for the year (993.27) 4,623.95 993.27 (4,623.95)

Impact on total Equity as at the end of the reporting period (993.27) 4,623.95 993.27 (4,623.95)

*Negative represents a gain and positive represents a loss


Other price risk
Other price risk represents the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from
interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instruments or its issuer, or factors affecting all similar financial
instruments traded in the market. However the management believes that the such risk is minimal with nil or insignificant impact on Company's performance.
32.03.2 Currency Risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the foreign exchange rate. The Company undertakes
transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuation arise. Exchange rate exposures are managed within approved policy parameters
utilising forward foreign exchange contracts.
The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows.
Currency Liabilities Assets
As at March 31, As at March 31, As at March 31, As at March 31,
2018 2017 2018 2017
INR (Rs. in lakhs) 31,591.62 39,173.23 14,054.99 10,987.63
EURO (Rs. in lakh) 0.73 15.64 - -

The foreign currency risk on above exposure is mitigated by derivative contracts. The outstanding contracts as at the Balance Sheet date are as follows:
i. Forward contracts
Currency As at March 31, 2018 As at March 31, 2017
Buy Sell Buy Sell
USD/INR (in FCY) 10.00 412.36 - -
USD/INR (in INR) 656.91 27,116.28 - -

ii. Cross currency interest rate swap contracts


As at March 31, As at March 31,
Particulars Weighted average 2018 2017
interest rate
Debentures carried at amortised cost 10.05% 27,000.00 32,727.98
Fixed Interest Rate Swap carried at FVTPL (Marked to Market value) 3.46% (95.48) 499.73
The secured borrowings are partially hedged to protect against foreign currency fluctuation risk through a cross currency interest rate swap contract. All other foreign currency assets and
liabilities are not hedged as at the year end. During the year ended March 31, 2017 and the year ended March 31, 2018, there was a partial unwinding of swap, however the same will not
have any adverse impact on the financial position of the entity.
Sensitivity Analysis
The Company's currency exposures in respect of foreign currency monetary items at each period end presented that result in net currency gains and losses in the income statement and
equity arise principally from movement in INR exchange rates. At each period end, if INR had weakened/strengthened by 10% against the functional currency (USD), with all other
variables held constant, the changes in profit or loss are as summarised in the following table. 10% is the sensitivity rate used when reporting to foreign currency risk internally to key
management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates.
Impact in INR (If INR weakens by Impact in INR (If INR strenghtens by
Particulars 10% ) 10% )
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
Impact on Profit or loss for the year 1,169.41 (7.76) (1,169.41) 7.76
Impact on total Equity as at the end of the reporting period 1,169.41 (7.76) (1,169.41) 7.76
This sensitivity analysis is without considering hedged items.
This is mainly attributable to the exposure outstanding on INR receivables and payables in the Company at the end of the reporting period.
In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the
exposure during the year.
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts in lakhs unless otherwise stated)
32.03.3 Interest Rate risk
The Company has availed the borrowings (both short term and long term) at the fixed rates and hence the company is not exposed to interest rate risk.
Sensitivity analysis
The changes in interest rates which may be due to revision in base lending rates in case of fixed rate short term borrowings very rare and minimal. Hence there is no significant impact
due to changes in interest rates for short term borrowings. Long term borrowings are not subject to interest rate risk being debentures at fixed interest which are further swapped against
its cash flow exposures.
32.04 Credit Risk
Credit Risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises from cash and cash equivalents,
investments carried at amortised cost and deposits with banks and financial institutions, as well as credit exposures to wholesale customers including outstanding receivables. For
receivables; the Company mostly deals with exchange registered dealers. The exchange clearing house used is one of the world’s largest capitalized financial institutions with excellent
long-term credit ratings. The Company's exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst
approved counterparties.
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-agencies.
32.05 Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities
to meet obligations when due and to close out market positions. The group treasury maintains flexibility in funding by maintaining availability under committed credit lines. The
Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by
matching the maturity profiles of financial assets and liabilities.
The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based
on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.
The contractual maturity is based on the earliest date on which the Company may be required to pay.

Weighted average More than 3


Particulars Upto 1 year 1-3 years
interest rate (%) years

As at March 31, 2018


Non-interest bearing
- Trade payables - 69,132.94 - -
Fixed interest rate instruments
-Current borrowings - 44,746.44 - -
'-Non current borrowings 10.05% - 13,500.00 -
Other financial liabilities - 15,611.62 - -
Total 129,491.01 13,500.00 -

As at March 31, 2017


Non-interest bearing
- Trade payables 97,422.03 - -
Fixed interest rate instruments
- Current borrowings 41,475.25 -
- Non current borrowings 10.05% - 27,000.00
Other financial liabilities 7,808.71 - -
Total 146,705.99 27,000.00 -

The following table details the Company's expected maturity for its non-derivative financial assets. The table has been drawn up based on the undiscounted contractual maturities of the
financial assets including interest that will be earned on those assets. The inclusion of information on non-derivative financial assets is necessary in order to understand the Company's
liquidity risk management as the liquidity is managed on a net asset and liability basis.

More than 3
Particulars Upto 1 year 1-3 years
years

As at March 31, 2018


Non-interest bearing
- Trade receivables 12,403.54 - -
- Cash and bank balances* 9,440.08 - -
- Investments 2,762.07 - -
- Other Financial Assets 8,396.01 - 130.58
Total 33,001.70 - 130.58

As at March 31, 2017


Non-interest bearing
- Trade receivables 292.45 - -
- Cash and bank balances* 1,678.06 - -
- Investments 3,043.99 - -
- Other Financial Assets 14,752.97 - 118.68
Interest bearing
- Fixed deposit (interest rate: 6.46%) 5,816.81 - -
Total 25,584.28 - 118.68
* Cash and Bank Balances here excludes Fixed deposits
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts in lakhs unless otherwise stated)
The following table details the Company's liquidity analysis for its derivative financial instruments. The table has been drawn up based on the undiscounted contractual net cash inflows
and outflows on derivative instruments that settle on a net basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement.
More than 3
Particulars Upto 1 year 1-3 years
years
As at March 31, 2018
Net settled:
– Cross Currency interest rate swaps (47.74) (47.74) -
– Currency exchange forward contracts (168.48) - -
– Commodity futures (879.81) - -
Total (1,096.03) (47.74) -

As at March 31, 2017


Net settled:
– Cross Currency interest rate swaps - 499.73 -
– Currency exchange forward contracts - - -
– Commodity futures (5,639.08) - -
Total (5,639.08) 499.73 -

Certain financial assets and financial liabilities are subject to offsetting where there is currently a legally enforceable right to set off recognized amounts and the Company intends to
either settle on a net basis, or to realize enforceable right to set off recognized amounts and the Company intends to either settle on a net basis, or to realize the asset and settle the

32.05.1 Financing facilities


The Company has access to financing facilities of which Rs.78,599.16 Lakhs (as at 31 March 2017: Rs. 104,341.00 Lakhs) were unused at the end of the reporting period. The
Company expects to meet its other obligations from operating cash flows and proceeds of maturing financial assets.
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)
33 Fair Value Measurement
Fair Valuation Techniques and Inputs used - recurring Items

Significant Relationship of
Fair value as at Fair value Valuation technique(s)
Financial assets/ financial liabilities unobservable unobservable inputs to
hierarchy and key input(s) input(s) fair value and sensitivity
31, March 2018 31, March 2017
Fair value hierarchy -Level 1
1) Commodity derivatives (879.81) (5,639.08) Level 1 Quoted bid prices in an NA NA
active market.
Quoted bid prices in an NA NA
2) Investment in Mutual funds 2,762.07 3,043.99 Level 1
active market.
Sub-total 1,882.26 (2,595.09)
Fair value hierarchy -Level 2
3) Foreign currency forward contracts (168.48) - Level 2 Refer Note 3(a) NA NA
4) Interest rate swaps (95.48) 499.73 Level 2 Refer Note 3(b) NA NA
Sub-total (263.96) 499.73
Note:
1. Derivatives value here represents Marked to Market value.
2. The Level 1 financial instruments are measured using quotes in active market
3. The following table shows the valuation technique and key input used for Level 2:
Valuation
Financial Instrument Key Inputs used
Technique
(a) Foreign currency forward Discounted Cash Forward exchange rates, contract forward and interest rates, observable yield curves.
contracts Flow
(b) Currency and interest rate swap Discounted Cash These are swaps where the Company has fixed its interest obligation and converted the foreign currency interest and principal
contracts Flow obligations to its functional currency (`USD). Future cash flows are estimated based on forward interest rates (from observable
yield curves at the end of the reporting period) and contract interest rates, discounted at a rate that reflects the credit risk of
various counterparties. Forward exchange rates, contract forward and interest rates, observable yield curves are key inputs
used.
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)

33 Fair Value Measurement ..continued


Fair value of financial assets and financial liabilities that are not measured at fair value
Level
As at 31, March 2018 As at 31, March 2017
Particulars
Carrying
Carrying amount Fair value Fair value
amount
Financial assets carried at
Amortised Cost
Trade receivables 12,403.54 12,403.54 292.45 292.45 Level 2
Cash and cash equivalents 9,440.08 9,440.08 7,494.87 7,494.87 Level 1
Other Financial Assets 8,526.59 8,526.59 14,871.65 14,871.65 Level 3
Total 30,370.22 30,370.22 22,658.98 22,658.98
Financial liabilities carried at
Amortised Cost
Non Convertible Debentures 27,000.00 27,643.80 32,727.98 32,871.65 Level 3
Trade payables 69,132.94 69,132.94 97,422.03 97,422.03 Level 2
Short term borrowings 44,746.44 44,746.44 41,475.25 41,475.25 Level 2
Others 2,111.62 2,111.62 2,080.74 2,080.74 Level 3
Total 142,991.01 143,634.81 173,706.00 173,849.67

The categorisation of fair value measurements into the different levels of the fair value hierarchy depends on the degree to which the inputs to the fair value measurements are observable and
the significance of the inputs to the fair value measurement.
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)
33 Fair Value Measurement ..continued
Fair Value Hierarchy - Level 3
Fair value as at
Financial assets/ financial liabilities measured at
amortised cost March 31, 2018 March 31, 2017

Financials assets
Other Financial assets 8,526.59 14,871.65
Financial Liabilities
Non Convertible Debentures 29,755.42 34,952.39
Total 38,282.01 49,824.04
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes mutual funds, call options, put options, and
commodity derivatives that have quoted price. The fair value of all commodity derivatives which are traded in the commodity exchanges is valued using
the closing price as at the reporting period. The mutual funds are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the counter derivatives) is determined using
valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument is included in level 2
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted
equity securities, contingent consideration and indemnification asset included in level 3.
There are no transfers between levels 1 and 2 during the year.
The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.
34 Segment information
(a) Description of segments and principal activities
The Business Head (Chief operating decision maker) examines the Company's performance from the business of refining sugar, which is the only
business segment. There are no other reportable segments.
(b) Segment Revenue
Revenue of approximately Rs. 181,970.54 (March 31, 2017: Rs. 136,909.46) are derived customers, transactions with whom exceed 10% of the
Company's revenue
The Company is domiciled in India. The amount of its revenue from external customers broken down by location of the customers is shown below:
For the year ended For the year ended
Particulars
March 31, 2018 March 31, 2017
Europe 103,422.20 66,296.95
Asia (other than India) 116,127.46 115,790.95
India (Country of domicile) 18,896.92 1,992.26
Total 238,446.58 184,080.16

(c) There are no non-current assets located in foreign countries.

35 Leases
Particulars For the year ended For the year ended
March 31, 2018 March 31, 2017
As Lessee
Future minimum lease payments under non-cancellable
operating leases
not later than one year 94.94 94.94
later than one year and not later than five years 388.32 483.40
later than five years 1,550.66 1,560.01
Expenses recognised in the Statement of Profit and Loss
Minimum Lease Payments 880.26 1,180.42

Details of leasing arrangements : Operating lease


The Company has entered into a non-cancellable operating lease arrangement for lease of factory land at Kakinada SEZ unit, for a period of 30 years
commencing from 31 March 2008. The lease agreements has a schedule which provides lease payments for specific period. At the end of the lease
period, the agreement can be renewed on mutual consent.
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)
36 Related Party Transactions
Name of the parent Company E.I.D. Parry (India) Limited
Subsidiary Companies Parry International DMCC
List of Fellow Subsidiaries with whom transactions taken
place during the year
Parry Infrastructure Company Private Limited
Parry Enterprises (India) Limited
Key Management Personnel (KMP)
Mr S. Suresh, Managing Director
Mr Suresh Kannan, Whole Time Director, effective from 11th May 2017
Note : Related Party Relationships are as identified by the management and relied upon by the auditors.
Details of transaction between the Company and its related parties are disclosed below:
Particulars Parry Parry Parry
For the year E.I.D. Parry Mr Suresh Mr S.
International Enterprises Infrastructure
ended (India) Limited Kannan Suresh
DMCC (India) Ltd Company Private
Nature of transactions with Related Parties
Sale of goods 31-Mar-18 2,674.16 - - - - -
31-Mar-17 319.93 - - - - -
Reimbursement of expenses 31-Mar-18 196.66 - - - - -
31-Mar-17 - - - - - -
Receipt of Services 31-Mar-18 76.60 - 32.22 - - -
31-Mar-17 245.91 - - - - -
Rendering of Services 31-Mar-18 1,175.30 - - - - -
31-Mar-17 - - - - - -
Lease expenses 31-Mar-18 - - - 94.94 - -
31-Mar-17 - - - 98.45 - -
Commission paid for Gaurantee given by Holding Company 31-Mar-18 65.39 - - - - -
31-Mar-17 109.24 - - - - -
Allotment of equity shares (Also Refer Note 12.03 and 12.04) 31-Mar-18 5,799.62 - - - - -
31-Mar-17 14,100.00 - - - - -
Investment in subsidiary 31-Mar-18 - 17.74 - - - -
31-Mar-17 - - - - - -
Remuneration for Whole time director 31-Mar-18 - - - - 76.34 -
31-Mar-17 - - - - - 104.39
Contract cancellation charges 31-Mar-18 - - - - - -
31-Mar-17 293.01 - - - - -
Parry Sugars Refinery India Private Limited
Notes forming part of the financial statements for the year ended March 31, 2018
(All amounts are in Rupees lakhs unless otherwise stated)
36 Related Party Transactions..continued
Details of closing balances with related parties :
Parry
Parry Parry
E.I.D. Parry Infrastructure Mr Suresh Mr S.
Nature of Balances with Related Parties Balance as on International Enterprises
(India) Limited Company Private Kannan Suresh
DMCC (India) Ltd
Limited
Trade payables (Unsecured) 31-Mar-18 - - - - - -
31-Mar-17 76.19 - - 85.68 - -
Trade receivables (Unsecured, considered good) 31-Mar-18 1,410.56 - - - - -
31-Mar-17 - - - - - -
Loans and advances given (Unsecured, considered good) 31-Mar-18 - - - 1,500.00* - -
31-Mar-17 42.27 - - 1,500.00* - -
Guarantee given by Holding Company 31-Mar-18 30,000.00 - - - - -
31-Mar-17 36,000.00 - - - - -

* The amount has been disclosed here at the actual monies given. The advance given is measured at amortised cost in the financial statements.
Compensation to Key Management Personnel
Particulars Year ended Year ended
March 31, 2018 March 31, 2017
Short term benefits 70.29 104.39
Post employment benefits 5.85 -
Other benefits 0.20 -
76.34 104.39

37 Contingent liabilities and commitments


As at As at March, 31,
Particulars
March 31, 2018 2017
Contingent liabilities
Outstanding Bank Guarantee 137.00 45.90
Letter of Credit Outstanding 66,890.77 92,701.67
Stand By letter of credit 6,517.00 6,160.28
Disputed Income Tax demand which is under appeal at Income tax Appellate 170.68 170.68
Disputed Customs Duty Demand which is under appeal * 1,152.28 874.00

* Future cash outflows in respect of the above matters are determinable only on
receipt of judgments / decisions pending at various forums / authorities.
DE’ PEDRO SUGAR INDUSTRIES
Notes forming part of the financial statements for the year ended March 31, 2020
(All amounts are in Rupees lakhs unless otherwise stated)

38 Applicability of New/amendment on existing Indian Accounting Standards (Ind AS)


Standards Ind AS 115 Ind AS 21 Ind AS 12 Ind AS 40
Title of the new Ind Revenue from contracts with Effect of changes in Foreign Income taxes Investment property
AS/Amendment to existing Ind customers exchange rate
AS;
The standard replaces Ind AS 18 The amendment clarifies The amendments clarify the The amendments clarify that
Revenue and Ind AS 11 recognition of advances at the accounting for deferred taxes transfers to, or from, investment
The nature of the impending Construction contracts and related initial rate only. No subsequent where an asset is measured at fair property can only be made if there
change or changes in accounting appendices reinstatement required. value and that fair value is below has been a change in use that is
policy; A new five-step process must be the asset’s tax base. supported by evidence.
applied before revenue can be
recognised.
st
The date by which application of Effective from 01 April 2018
the Ind AS is required; +
st
The date as at which it plans to This will be implemented from the effective date 01 April 2018 as applicable.
apply the Ind AS initially
The Company is in the process of The Company is in the process of The Company is in the process of No investment property is held by
assessing the detailed impact of Ind assessing the detailed impact of assessing the detailed impact of the the Company.
AS 115. Presently, the Company is Appendix B to Ind AS 21. amendments made to Ind AS 12.
not able to reasonably estimate the
impact that application of Ind AS
Impact to the company 115 is expected to have on its
financial statements.

39 The figures for the previous year have been reclassified/ regrouped wherever necessary for better understanding and comparability.

40 The financial statements were approved for issue by the board of directors on May 02, 2018

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Firm
Firm Registration Number: 012754N/N500016
Chartered Accountants

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