Download - Sujana Group

a) Rs.3,051.00 lakhs to be paid in cash of which an amount of Rs.600 lakhs was paid against the
crystallized cash portion of the settlement amount and balance amount shall be payable in equal five
installments the from date of issue of letter of approval (LOA). The first installment shall be payable
within a period of one week from the date of issue of LOA, of which the Company has paid Rs.1,250
lakhs during the period. The Company vide letter dated 26.03.2011 requested SASF to give extension
of time for repayment of balance amount in twelve monthly installments commences from 01.04.2011.
b) Of the balance restructured term loan Rs.4,655 lakhs is to be converted into equity share of
Company as per SEBI Guidelines and 9% p.a interest shall be payable till the date of conversion.
Based on the NS, a consolidated interest waiver of Rs.1300 lakhs has been given by SASF.
In view of pending amalgamation of Sri Ganga Steel Enterprises Limited and Handum Industries
Limited under the slump sale agreement, the Company has not accounted the term loan liability
relating to amalgamating Company (payable to SASF) and the interest wavier to the extent of Rs.1,300
lakhs in the books during the period. The balances outstanding as at March 31, 2011 has not been
confirmed by SASF.
c) Stressed Assets Stabilization Fund (SASF) vide their letter dated June 25, 2008 has informed the
Company to covert 2,038,260 1% of Cumulative Redeemable Preference Shares of Rs. 100 each
aggregating to Rs. 2,038.26 lakhs into equity of Rs.1,875 lakhs and term loans of Rs.163.26 lakhs, as
part of its restructuring of dues payable to them.
20 The Company’s significant leasing arrangements are in respect of operating leases for premises (office,
stores, godowns, etc.). The leasing arrangements, which are not non-cancellable, range between ten
months and three years generally, and are usually renewable by mutual consent on agreed terms. The
aggregate lease rentals payable are charged as rent in to the profit and loss account.
21 Comparatives:
The financial statements have been prepared for 18 months i.e. October 01, 2009 to March 31, 2011
and are not strictly comparable with previous year’s figures as the same for 12 months period i.e., from
October 1, 2008 to September 30, 2009.
22 Previous year’s figures have been regrouped / restated wherever necessary.
For Sujana Metal Products Limited
R.K. Birla
Managing Director
S.Hanumantha Rao
Director - Finance
Place: Hyderabad V. R. Chary Shaik Ibraheem
Date: May 30, 2011 Chief Finance Officer Company Secretary
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