| Description of state of companies affair FINANCIAL RESULTS : | Rs. | Rs. | Profit before interest, depreciation & taxation | | 9, 21, 54,413 | Less : Interest | 4,84,94,005 | | Depreciation | 2,33,78,995 | | Taxation Deferred Tax | 36,41,542 | 7,55,14,542 | Profit for the year | | 1,66,39,871 | To which is added Balance brought forward from previous year | | 1,25,40,147 | Profit available for appropriation | | 2,91,80,018 | Appropriation: | | | Molasses Storage & Maintenance Reserve | 1,77,34,173 | | General Reserve | 20,00,000 | 1,97,34,173 | Balance to be carried forward to next year | | 94,45,845 |
OPERATIONAL RESULTS : The operation of the sugar season 2013-14 commenced on 9th December, 2013 and concluded on 14th April, 2014 after crushing 50.25 lac quintals of cane against 44.76 lac quintals in the last season. Although cane availability was higher, there has been decline in sugar recovery to 8.80 percent against 8.97 percent last year due to devastating effect of cyclone Phallin which caused considerable damage to the standing cane crop in your area. INDUSTRY SCENARIO & POLICIES : The sugar production in the country has recorded increase for three consecutive years and is estimated to be 24 million tons during the current sugar year 2013-14. Total availability of sugar added with last years carry over stock of 9.3 million tons has been much higher than domestic consumption of 24 million tons resulting surplus in fourth year in a row and the next season 2014-15 is again likely to start with a high opening stock of about 7.5 million tons. Despite surplus availability, Govt. policy of continuing with bare 15% duty on import of sugar has given scope for sugar imports which has kept sugar prices low and below cost of production. The Fair & Remunerative Price (FRP) of sugar cane for the season 2013-14 was fixed at Rs.220/- per qtl. as against Rs.170/- per qtl. in the last season, linked to a basic recovery of 9.5% by Govt. of India. However, as usual on intervention of State Govt. the cane price for normal variety was hiked to Rs.255/- per qtl. irrespective of recovery. The mismatch of cane and sugar price year after year continue to tell upon the health of the Sugar Industry. The process of delisting of the equity shares of the company as per notification issued by the Govt. of India has been initiated after receipt of approval from SEBI and company has appointed a Merchant Banker to take necessary action in the matter. DIRECTORS : Mr. R. K. More retires from the board by rotation and being eligible offers himself for re-appointment. AUDITORS : Messers. L. B. Jha & Co., Chartered Accountants, Auditor of the company, retire and have expressed their willingness to continue in office, if re-appointed. The note to the accounts referred to in the Auditor's Report are self-explanatory and therefore, do not call for any further explanation under section 217(3) of the Companies Act, 1956. Details regarding energy conservationCONSERVATION OF ENERGY : Information as per S217 (1) (a) of the Companies Act, 1956 to the extent applicable are set out in annexure hereto.
Information pursuant to the Companies (Disclosure of Particulars in the report of Board of Directors) Rules, 1988 and forming part of the Directors Report for the year ended 31st March, 2014. CONSERVATION OF ENERGY : a) Energy Conservation Measures taken : Your Company continue to give priority to conservation of energy on an ongoing basis by installing latest equipment and automation of control devices and instruments. b) The required data with regard to conservation of energy is furnished below : A. | POWER AND FUEL CONSUMPTION : (in process of manufacture) | Current Year 2013 - 2014 | Previous Year 2012 - 2013 | 1. | Electricity | | | a. | Units purchased (Units) | - | - | | Total Amount (Rs.) | - | - | | Rate Per unit (Rs.) | - | - | b. | Own generation through Diesel Generators (Units) | 4,49,236 | 5,10,518 | | Units per ltr. of diesel oil | 3.02 | 3.23 | | Cost per unit (Rs.) | 18.21 | 14.26 | c. | Through Steam Turbine/Generator | | | | Units | 98,27,590 | 96,45,700 | | Units per qtl. of Bagasse | Steam produced by use of own bagasse | Steam produced by use of own bagasse. | 2. | Coal, Furnace Oil & Others | Nil | Nil | B. | CONSUMPTION PER UNIT OF PRODUCTION | | | | Sugar (in lac qtls.) | 4.05 | 4.12 | | Electricity per qtl. of sugar | 25.38 | 24.66 |
Details regarding foreign exchange earnings and outgo FOREIGN EXCHANGE EARNINGS AND OUTGO :
During the period, there has been outgo in foreign exchange equivalent to Rs.NIL. Details regarding technology absorptionRESEARCH & DEVELOPMENT & TECHNOLOGY ABSORPTION :
Your company has been carrying out research & development in the following specific
areas : (i) Heat Treatment Therapy to eradicate seed borne diseases. (ii) Pest control measures to protect cane from diseases. (iii) Rearing of seed nurseries for new improved varieties. (iv) Ratoon and Water Management of sugarcane crop. (v) Soil Test and Biological Control Laboratory. (vi) Tissue Culture Laboratory. (vii) Production of Bio compost and Bio fertiliser using press mud and other sugar mill waste. Future Plans are : (i) Continue research for better yielding and disease free cane varieties. (ii) Installation of machineries for expansion of crushing capacity to 7500 TCD. (iii) Expansion of capacity Bio Compost & Bio fertiliser project. (iv) Setting up Cogeneration Plant for generation of electricity. (v) Expansion of Tissue Culture Lab. (vi) Water & Steam Management (vii) Power Savings devices. The company has not imported any technology.
Director's comments on qualification(s), reservation(s) or adverse remark(s) of auditors as per board's reportNone Disclosure in board of directors report explanatoryDIRECTORS' REPORT TO THE SHAREHOLDERS The Board of Directors have pleasure in presenting the eighty-second Annual Report together with Audited Accounts of the company for the year ended on 31st March, 2014. Disclosures in director’s responsibility statementDIRECTORS' RESPONSIBILITY STATEMENT : Your Directors' state that in the preparation of the annual accounts, the applicable standards have been followed; they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit of the company for that period; they 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 and that the annual accounts have been prepared on a going concern basis. Disclosures relating to dividendsDIVIDEND : The Directors do not recommend payment of dividend on equity shares for the year under review to conserve the resources.
Other details mentioned board reportCOMPLIANCE CERTIFICATE : The company has obtained secretarial compliance certificate as required under Companies (Compliance Certificate) Rules, 2001. Members can inspect the same at the registered office of the company. CORPORATE GOVERNANCE : The Management discussion and analysis and the compliance of recommendations on corporate governance are annexed to this report. APPRECIATION : Your Directors wish to place on record the sincere and dedicated services of workers, staff and officers of the company. Your Directors also take this opportunity to express their appreciation for the instinctive support and assistance received from your bankers, State Bank of India.
Particulars of employees as per provisions of section 217PARTICULARS OF EMPLOYEES : None of the employees of the Company were in receipt of remuneration, which in the aggregate exceeded the limits fixed under sub-section (2A) of the Section 217 of the Companies Act, 1956.
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