AFFLUENCE

TO: THE MEMBERS Your Directors present their SEVENTY- NINETH ANNUAL REPORT and the Accounts of the Company for the year ended 30th September, 2013. FINANCIAL RESULTS: (Rs. In Lacs) 2012-13 2011-12 Profit/ (Loss) before Financial Charges and Depreciation (680.65) 566.40 Less: Financial Charges 319.25 336.61 Profit/ (Loss) before Depreciation (999.89) 229.79 Less/Add: Depreciation 144.75 140.28 Profit/ (Loss) before tax (1144.64) (89.51) Less(-)/Add(+) Exceptional items 4.13 233.49 Provision for Tax / Deferred Tax 113.97 37.07 Profit / (Loss) after Tax (1026.55) (181.05) Add: Profit / (Loss ) brought forward from the previous Year (2110.42) (1929.37) Add: Reserve & Surplus 342.35 342.35 Balance of Profit / (Loss) carried to Balance Sheet (2794.62) (1768.07) Dividend. Keeping in view of the performance of the Company in the recent past, your Directors do not recommend dividend for the year 2012- 2013. There are no unclaimed amounts which are required to be transferred to the Investors Education & Protection Fund pursuant to the amendment to sub sec. (5) of the Section 205A vide Companies Act 1956. WORKING RESULTS: The working figures of the company for the season 2012-2013 along with the figures of 2011-2012 Season are given below: 2012-2013 Season 2011-2012 Season Date of commencement of crushing operations 24.11.2012 18.12.2011 Date of Closure of crushing operations 11.02.2013 14.04.2012 Gross Season days 80 118 Sugarcane handled (Input) MT 78,897 2,35,919 Sugar produced (Output) Net of reprocessing 79,432 Qtls. 2,43,023 Qtls. Recovery 10.07% 10.30% Your Company has crushed 78,897 MT of sugarcane and produced 79,432 MT of sugar during the year 2012-2013 as against 2,35,919 MT of sugarcane crushed and produced 2,43,023 MT of sugar during the corresponding previous year i.e. 2011-2012. The company has paid the sugar cane price of Rs 2510/- PMT for the season 2012-13. During the year 2012-13, more than 3.20 lakhs MTS of sugar cane was illegally procured by the other sugar factories. The company was able to crush about 80,000 MT of sugarcane only. Your Company’s turnover was Rs. 3247.24 lakhs for the year 2012-2013 (previous year Rs. 6,603.05 lakhs). SUGAR POLICY AND SUGAR PRICE: Government of India has since abolished the levy obligation from Oct., 2013 production onwards. Further Govt., of India has also dispensed with the release mechanism w.e.f. 4th May 2013. PROSPECTS: Factory: Cane crushing for the season 2013-14 started on 22nd December, 2013. The working of the Factory is smooth and all the efficiency parameters are within the norms. ? 10Tn. Boiler: All the air heater 565 tubes replaced by new one to improve efficiency of Boiler ? 20Tn. Boiler: All the air heater 96 tubes replaced by new one to improve efficiency of Boiler ? 30Tn Boiler I.D.Fan impeller Vanes modified by Industrial System Chennai to improve efficiency of fan. ? New wet Scrubber for 30Tn and 10Tn Boiler with Booster fan fitted for total control of emissions and efficiency. ? 30Tn Boiler: Chimney strengthened by Avant Garde Engineers Chennai by giving additional support from foundation with steel structural. ? New Injection water header 900 mm dia x 600 dia x 8 mm thick plate fabricated and erected from pan no 2 to 7 to improve Boiling house efficiency. ? 2 nos. New planetary drive gear units installed to No 1 ‘A’ crystallizer and ‘A’ vacuum crystallizer to save electrical energy Maximum care is taken to attend all the problems experienced during previous season, to ensure smooth and steady running of the Factory. The working results are shown in the Tabulated form which is annexed. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION: Pursuant to Section 217 (1) (e) of the Companies Act, the particulars in respect of Conservation of Energy, Technology, Absorption and Foreign Exchange Earnings and Outgo are furnished in Annexure `A'. EMPLOYEES: Your Directors place on record their appreciation for the contribution by the employees at all levels for the working of the Company. The company has no employee in respect of whom a statement under Section 217 (2A) of Act is required to be annexed. DIRECTORS: Sri Siddharth R Morarka, Director of the company retire by rotation under Article 105 & 106 of the Articles of Association of the company at the ensuing Annual General Meeting and being eligible offer himself for re-appointment. Sri Rahul R Moarka, Director of the company retire by rotation under Article 105 & 106 of the Articles of Association of the company at the ensuing Annual General Meeting and being eligible offer himself for re-appointment. COMPANY SECRETARY: The company is taking suitable steps for the appointment of a qualified full time Company Secretary. AUDITORS / THEIR REPORT: Messrs M S Krishnaswami & Rajan, Chartered Accountants, Chennai, the Statutory Auditors of the Company, retire at the ensuing Annual General Meeting and are eligible for re-appointment. They have furnished a certificate to the company to the effect that their appointment, if made, will be in accordance with the limits specified in Section 224 (1) of the Act. No material developments or commitments have accrued affecting the financial position of the company between September 30, 2013 and the date of this report. LISTING OF SHARES: The Equity Shares of your company are listed on Bombay Stock Exchange Ltd., Necessary listing fee has been paid to the Stock Exchange. DIRECTORS’ RESPONSIBILITY STATEMENT Pursuant to section 217 (2AA) of the Act, your Directors state that: i) In preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures. ii) Selected such Accounting Policies and applied them consistently and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your company at the end of the Financial Year 30th September 2013, and of the Loss of your Company, for that period. iii) We have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the Provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. iv) We have prepared the Annual Accounts of your Company on a “going-concern” basis. ACKNOWLEDGEMENTS: Your Directors place on record their thanks to the Banker, Sugar Cane Growers, for their cooperation. On behalf of the Board For The India Sugars & Refineries Ltd. Siddharth R Morarka Managing Director S S Narayana Director – (Tech) Place: Bengaluru Date : 01.03.2014

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION: Pursuant to Section 217 (1) (e) of the Companies Act, the particulars in respect of Conservation of Energy, Technology, Absorption and Foreign Exchange Earnings and Outgo are furnished in Annexure `A'. ii) Selected such Accounting Policies and applied them consistently and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your company at the end of the Financial Year 30th September 2013, and of the Loss of your Company, for that period. iii) We have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the Provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. iv) We have prepared the Annual Accounts of your Company on a “going-concern” basis.

Your Directors place on record their appreciation for the contribution by the employees at all levels for the working of the Company. The company has no employee in respect of whom a statement under Section 217 (2A) of Act is required to be annexed.

Pursuant to section 217 (2AA) of the Act, your Directors state that: i) In preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures. ii) Selected such Accounting Policies and applied them consistently and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your company at the end of the Financial Year 30th September 2013, and of the Loss of your Company, for that period. iii) We have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the Provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. iv) We have prepared the Annual Accounts of your Company on a “going-concern” basis.