April, 2024 | CA B K Goyal & Co LLP

Sugar Development Fund

Government Schemes / CA Bhuvnesh Goyal / April 5, 2024

The Sugar Development Fund (SDF) was established in the year 1982 to provide monetary support to the sugar industry. Set up under the Sugar Development Fund Act, the SDF allows sugar mills to obtain loans at nominal rates of interest. IFCI, a public NBFC is a nodal agency for the disbursement of SDF loans to private or public sector factories. For the cooperative sector, loans are routed through the National Cooperative Development Corporation (NCDC). Objective of SDF The objective of the fund is to offer financial assistance to tackle problems like Low yield Outdated machinery Low consumption Short crushing season of sugarcane crop Cyclical nature of the sugar sector Loan Schemes Available in SDF Modernisation and rehabilitation of the factory Cane development in an area near factory: Extended for setting up any of the following facilities: Heat treatment plant Seed nursery Drip irrigation system Bagasse-based cogeneration power projects undertaken by a factory Production of molasses-based ethanol or anhydrous alcohol Conversion of an ethanol production plant as Zero Liquid Discharge (ZLD) plant General Process to Avail Loan from SDF Step 1 – Application submission: Factories make the applications to the standing committee of relevant government officers formed under the SDF act. Applications for all categories of SDF loans are available online at the website https://dfpd.gov.in/ Step 2 – Application registration: All applications will be registered date-wise in the respective SDF divisions. Due priority is given for factories from cooperative or private sectors. Step 3 – Consideration of sub-committee: The standing committee has the discretion to appoint sub-committees to improve efficiency. The applications will first be considered by relevant sub-committee. Factory representatives may be invited to answer queries or make presentations. Step 4 – Consideration of standing committee: The standing committee will scrutinise the recommendations of the sub-committee regarding Sugar Development Fund loan Step 5 – Government approval: Sanctioned loans receive administrative approval for release of funds. The approval usually includes a list of stipulated conditions to be met by the factory. Step 6 – Loan disbursement: Based on the type of loan, funds may be released in one or more instalments after a request is received by the nodal agency (NCDC or IFCI) from the factory. Step 7 – Monitoring: The nodal agencies will continue to monitor the utilisation of loans after disbursement. Specific Conditions and Eligibility Criteria No outstanding loans for the purpose applied for No default on any other Levy Sugar Price Equalisation Fund (LSPEF) or Sugar Development Fund loan Security may be presented as either A bank guarantee from a scheduled bank Mortgage on movable/immovable properties of the sugar mill SDF loans are extended at an annual interest of 2% below bank rate (as per RBI) There are some specific conditions for each category of loan as well. Modernisation and rehabilitation loan: Factory involved in cane crushing process for at least three years Approval from a scheduled bank or a financial institution for monetary assistance Not applicable for refinancing, cost overrun, purchase of second-hand machinery or Project started prior to the date of application Cane development: Applications to be submitted to the relevant state government authority. After due consideration, the application shall be sent to the standing committee of the SDF. 10% contribution from the sugar mill as margin money for the project Loan disbursal only through respective state governments A tripartite agreement between the sugar factory, central and state governments Bagasse-based cogeneration power project: 2500 TCD installed capacity Applicant must visualise marketable surplus generation of power Approval from a scheduled bank or a financial institution for monetary assistance Greenfield projects are also eligible for the generation of exportable surplus power Not applicable for refinancing, cost overrun, purchase of second-hand machinery or Project started prior to the date of application Ethanol or anhydrous alcohol production: Not applicable for refinancing, cost overrun, purchase of second-hand machinery or Project started prior to the date of application Approval from a scheduled bank or a financial institution for monetary assistance Documents Required For all categories except cane development loan, applicants must submit Filled application form and respective annexure Detailed project report Technical feasibility report A financial appraisal report from a scheduled bank or financial institution English version of sanction letter from a scheduled bank or financial institution Acknowledgement from the relevant authority for the application of the following: No Objection Certificate(NOC) from respective Pollution Control Board(PCB) Environmental Impact Assessment Clearance For cane development loan, applicants must submit Filled in Application Form-III Relevant project document Recommendation from the respective state government Letter issued by state government forwarding relevant documents of the project Quantum of Assistance and Pattern of Repayment Sugar Development Fund loan type Assistance available Disbursement pattern Repayment pattern Modernisation and rehabilitation Promoter’s contribution: Minimum 10% of the project cost SDF loan: Max.40% of the eligible project cost A loan from bank/FI: Remaining cost of the project Either lumpsum or two equal instalments Repayable in a maximum period of 5 years after 5 years from the date of disbursement Cane development SDF loan: Max.90% of total project cost (total project cost capped at Rs.6 crores) Sugar factory contribution: At least 10% of the project cost Two annual instalments Repayment within 7 years after disbursal, including 3 year moratorium Bagasse cogeneration project Promoter’s contribution: Minimum 10% of the project cost SDF loan: Max.40% of the eligible cost for Brownfield project; Max.20% of the eligible cost for a Greenfield project A loan from bank/FI: Remaining cost of the project Either lumpsum or two equal instalments Repayable in a maximum period of 5 years after 3 years from the date of disbursement Ethanol or anhydrous alcohol production Promoter’s contribution: Minimum 10% of the project cost SDF loan: Max.40% of the eligible cost for Brownfield project; Max.20% of the eligible cost for a Greenfield project A loan from bank/FI: Remaining cost of the project Either lumpsum or two equal instalments Repayable in a maximum period of 4 years after 1 year from date of disbursement Conversion to ZLD plant Promoter’s contribution: Minimum 10% of the

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customer feedback

learn / CA Bhuvnesh Goyal / April 5, 2024

Customer feedback is information given from your customers about the quality of your product, customer service or any processes or transactions at your company. It’s all about meeting customer requirements. In fact, there is no better and more reliable source of knowledge about your company than customer feedback. What is customer feedback? Customer feedback is information customers share with you about their experience with your products or services and any interaction they’ve had with your company. This feedback can be indirect or direct. For example, customers can openly discuss your brand on social media without tagging you (indirect) or leave product reviews and comments on your business’ website (direct). Why is customer feedback important? Customer feedback is important because it tells you how they feel about your business. You’ll learn what they like about your offer and areas where you can improve. Without this feedback, you won’t know if you satisfy the people you exist for — your customers. You won’t know if they use your product as intended and even if they want to continue doing business with you Benefits of Customer Feedback 1. Customer feedback helps you learn about your audience on a deeper level- Your business likely conducted extensive market research and buyer persona research to understand your target audience and how they relate to your business. While you probably gathered valuable insight, nothing is more valuable than the insight that comes directly from your customers, which is what customer feedback is. They’ll let you know more about themselves, how they use your products and services, and what they expect from you. When you understand more about them and who they are, you can create experiences that speak directly to their needs. Customers also already expect that the brands they do business with understand their needs and champion them in their processes. Case in point: 73% of consumers worldwide expect companies to understand their unique needs and expectations. Over half of consumers say they’ll become repeat buyers after a personalized experience. 80% of business leaders say consumers spend an average of 38% more when their experience is personalized. 2. Customer feedback gives you insight into customer satisfaction levels – Customer satisfaction is how happy customers are with your products, services, and any interaction with your business. It’s an important metric as it helps you address customer issues, prevent churn, and build a base of loyal customers. Specific ways of collecting customer feedback, namely customer satisfaction surveys, tell you exactly how your customers feel and how satisfied they are.Katie Cort, a Senior Customer Onboarding Specialist, says, “If the company does not have a way of knowing whether or not their customers are happy — things like retention will not improve!” 3. Customer feedback helps support teams develop their skills- The support you offer customers directly impacts their success with your products or services. Customer feedback helps you ensure that your support teams can help customers succeed as it can provide specific insight into rep performance. “Customer feedback is a very important tool for managers to get anecdotal feedback directly from the customer as one of the many pieces for measuring team members’ performance.” To get this feedback, you can send follow-up surveys after support calls to ask customers how satisfied they are with the help they received. “Reps get to see the feedback, and that’s really helpful for training and learning what could be improved and what we can continue doing.” Teams that use customer feedback to build and improve their skills are better suited to meet customer needs and create delightful experiences. 4. Customer feedback helps you improve your products and services- Customers sometimes give feedback that mentions a negative experience they’ve had. While it may seem disheartening, this feedback actually helps you improve your products and business operations, especially if you use it to make changes. For example, customers who consistently mention a pain point in your onboarding process telling you that you might need to give additional clarification and update your process to ensure it runs smoothly. Using this type of customer feedback also ensures you’re not making changes on an assumption but rather on the actual thoughts and feelings that come from those who matter most. 5. Customer feedback helps you attract new customers- Customer reviews are a form of feedback, and consumers often rely on it when it comes to making purchasing decisions: 98%of customers read online reviews for local businesses. User-generated content, which reviews are, is 8.7x more impactfulthan influencer content and 6.6x more impactful than branded content. 69% of consumers would feel positive about using a business with reviews describing a positive experience. The stats above simply show that customers want to hear from your existing customers and their experiences with you. When you collect and ask for reviews, you’re giving potential customers the information they look for when deciding whether to purchase, helping you with customer acquisition. 6. Customer feedback helps you initiate conversations with dissatisfied customers- Customer feedback can help you identify dissatisfied customers to begin a dialogue with and open the opportunity to make it right and change the course of your relationship. Their feedback about their situation also helps you learn their pain points and identify possible areas for improvement in your operations. Opening a dialogue with these customers and using their feedback to make changes helps you increase customer loyalty, as 83%of customers agree that they feel more loyal to brands that respond to and resolve their complaints. How to Get Feedback from Customers Send follow-up emails after you have provided a service to a customer and ask for their feedback. Use social listening to see how customers are talking about you online. Monitor heatmaps on your website to see where customers spend the most time. Conduct customer interviews. Offer incentives for providing feedback. Overall, hearing what customers say about you helps you make changes to your business processes and offers, inspire loyalty, and better serve your audiences. So, when you want to hear from them, just ask — they’re likely to share. FAQs What is

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