Home  »  Company  »  Bannari Amman Su  »  Quotes  »  Directors Report
Enter the first few characters of Company and click 'Go'

Directors Report of Bannari Amman Sugars Ltd.

Mar 31, 2015

Dear Members

The Directors have pleasure in presenting the 31st Annual Report of the company together with audited financial statements for the year ended 31st March 2015

(Rs in Lakhs)

Financial Year

Financial Results

2014-15 2013-14

Profit for the year before depreciation 5159.42 8410.18

Less: Depreciation 5125.55 5195.53

Profit Before Tax 33.87 3214.65

Less: Provisions: Income Tax - Current 8.38 674.43

MAT Credit Entitlement (8.38) (674.43)

Deferred Tax (69.16) 345.90

Profit After Tax 103.03 2868.75

Add : Surplus brought forward from previous year 2117.66 2916.80

Amount available for appropriation 2220.69 5785.55

Appropriations

Provision for diminution in value of investment (Long Term) (29.78) (5.09)

Provision for Proposed Dividend on equity shares 285.99 1429.96

Provision for Tax on Dividend 58.22 243.02

Transfer to General Reserve --- 2000.00

Surplus carried over to Balance Sheet 1906.26 2117.66

T O T A L 2220.69 5785.55

Dividend

Your Directors are glad to recommend dividend @ Rs 2.50/- per equity share of Rs.10/- each (25 % on equity capital)

Review of Operations Sugar Division

The comparative operational performances for the last two years are as under

Sugar Unit I Sugar Unit II Particulars Alathukombai, Tamilnadu Alaganchi, Karnataka

2014-15 2013-14 2014-15 2013-14

No of days crushed 117 135 214 262

Sugarcane crushed (Lakh tonnes) 2.20 3.75 11.88 16.06

Recovery (%) 9.37 9.80 10.16 10.12

Sugar bagged (Lakh quintals) 1.99 3.69 12.09 16.24

Particulars Sugar Unit III Sugar Unit IV Kunthur, Karnataka Kolundampattu, Tamilnadu

2014-15 2013-14 2014-15 2013-14

No of days crushed 194 -- 105 156

Sugarcane crushed (Lakh tonnes) 5.97 -- 4.12 6.02

Recovery (%) 10.12 -- 9.04 9.21

Sugar bagged (Lakh quintals) 5.96 - 3.64 5.62

Drought prevailing in the cane area has affected the cane availability and recovery The expansion of crushing capacity from 2500 TCD to 3600 TCD in the sugar factory at Kunthur Village Karnataka has been completed and the factory commenced its operation with the expanded capacity from 27.8.2014

Co-generation of Power

The Co-generation plants have generated 304.18 million units of power and exported 205.46 million units of power to grids compared to the generation of 326.44 million units and export of 224.56 million units in the previous year The 20 MW co-generation plant in the sugar factory at Kunthur Village Karnataka was synchronized with the grid on 27.8.2014

Distillery Division

During the year the distilleries have produced 29.26 million B Ltrs of Alcohol as against 27.30 million B Ltrs in the previous year

Granite Division

The Granite Processing Unit has produced 170381 square metres of Granite Slabs and 28420 square metres of Tiles compared to production of 183974 square metres of Granite Slabs and 25160 square metres of Tiles in the previous year

Wind Mill

Wind Mills have generated 11.67 million units of power and exported 10.07 million units of power to grid compared to the generation of 12.10 million units and export of 10.48 million units in the previous year

Prospects for the current year 2015 - 2016

It is estimated to crush 30 lakh tonnes of sugarcane in aggregate Performance of co-generation plant will be based on bagasse availability in the sugar mills It is estimated to produce 30 million B Ltrs of alcohol in the Distillery Units Improved working results are expected in Granite Division With the continued surplus in both domestic and international sugar markets sugar prices are expected to remain under pressure

Directors and Key Managerial Personnel

In accordance with the provisions of Companies Act 2013 Sri S V Balasubramaniam is liable to retire by rotation and is eligible for re-appointment

The Board of Directors at its meeting held on 29.5.2015 has re-appointed Sri S V Balasubramaniam as the Chairman of the company with substantial powers of management and Sri B Saravanan as the Managing Director for a period five years with effect from 2.6.2015 on the recommendation of Nomination and Remuneration Committee

Dr Radha Ramani has been appointed as an Additional Director (Independent) on 11.2.2015 She holds office up to the date of ensuing Annual General Meeting The company has received notice from a member along with requisite deposit under Section 160 of the Companies Act 2013 proposing Dr Radha Ramani for the office of Independent Director

All the Independent Directors have given declarations that they meet the criteria of independence as specified under Section 149 (6) of the Companies Act 2013 and Clause 49 of the Listing Agreement

The Company has devised a policy on Directors' appointment and remuneration and for performance evaluation of Independent Directors Board Committees and other Individual Directors which include performance evaluation of Non-Executive and Executive Directors

The details of programmes for familiarization of Independent Directors with the company their roles rights responsibilities in the company nature of the industry in which the company operates business models and related matters are placed in the website of the company at the link http://www.bannari.com/InvestorInformation.html

At the Board Meeting held on 11.2.2015 Sri S V Balasubramaniam Chairman Sri B Saravanan Managing Director Sri C Palaniswamy Company Secretary and Sri M Ramprabhu Chief Financial Officer were designated as "Key Managerial Personnel" of the Company pursuant to Section 203 of the Companies Act 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014

The Directors have confirmed that they are not disqualified from being appointed as Directors of the company

Particulars of Loans Guarantees or Investments

During the year the company has not made any loan or guarantee or investment or provided any security under Section 186 of the Companies Act 2013

Conservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo

The particulars relating to conservation of energy technology absorption foreign exchange earnings and outgo as required to be disclosed under the Companies Act 2013 are provided in Annexure I to this Report

Particulars of Employees

The information required as per Section 197 of the Companies Act 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 is furnished in Annexure II to this Report

Meetings of the Board

Five Meetings of the Board of Directors were held during the year The details are furnished in the Report on Corporate Governance attached herewith

Committees and Policies

In terms of the provisions of the Companies Act 2013 and the Listing Agreement the company has constituted Board Committees and framed required polices The details are furnished in the Corporate Governance Report attached herewith

Corporate Governance and Management Discussion and Analysis Report

A separate section on Corporate Governance Management Discussion and Analysis Report and the certificate from the Auditors of the company regarding compliance of conditions of Corporate Governance as stipulated under Clause 49 of the Listing Agreement form part of this Report and annexed as Annexure III

Corporate Social Responsibility (CSR)

Pursuant to Section 135 of the Companies Act 2013 read with the Companies (Corporate Social Responsibility Policy) Rules 2014 the company has formulated a policy on Corporate Social Responsibility and the policy was uploaded in the company's website at http://www.bannari.com/InvestorInformation.html

The report on CSR activities is attached as Annexure IV to this report

Risk Management / Risk Management Policy

The company has formulated a Risk Management Policy including risk assessment and minimization procedures The Risk Management Committee has been assigned with the functions of monitoring and reviewing the risk management plans of the company In the opinion of the Board no element of risk that may threaten the existence of the company has been identified

Vigil Mechanism / Whistle Blower Policy

The company has established a whistle blower policy/vigil mechanism for Directors and Employees to report concerns about unethical behavior actual or suspected incidents of fraud or violation of the code of conduct or ethics policy This mechanism provides adequate safeguards against victimization of directors/employees who avail of the mechanism and also provide for direct access to the Chairman of the Audit Committee The whistle blower policy is posted in the company's website at the link http://www.bannari.com/InvestorInformation.html

Related Party Transactions

All the related party transactions are entered on arm's length basis and are in compliance with the applicable provisions of the Companies Act 2013 and the Listing Agreement All the related party transactions are placed before the Audit Committee and approved by the Audit Committee Since there are no transactions which are not on arm's length basis and material in nature the requirement of disclosure of such related party transactions in Form AOC-2 does not arise The Related Party Transactions Policy as approved by the Board is uploaded in the company's website at http://www.bannari.com/InvestorInformation.html

Board Evaluation

Pursuant to the provisions of the Companies Act 2013 and Clause 49 of the Listing Agreement Independent Directors at their meeting without participation of non-independent directors and management considered and evaluated the performance of Board performance of the Chairman and the Managing Director

The Board has carried out an annual evaluation of its own performance and of the individual directors as well as the Committees of Directors

Material changes and commitments

During the period from the end of financial year and till the date of this report there is no material changes and commitments affecting the financial position of the company There is no change in the nature of business of the company

Directors' Responsibility Statement

As stipulated in Section 134(3) (c) read with Section 134 (5) of the Companies Act 2013 your Directors confirm that

a) in the preparation of the annual accounts all the applicable accounting standards had been followed along with proper explanation relating to material departures

b) they had 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 the year under review

c) they had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 2013 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities

d) they had prepared the annual accounts on a going concern basis

e) they had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively and

f) they had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively

Extract of Annual Return

An extract of Annual Return in Form No MGT-9 is annexed as Annexure V

Auditors / Auditors' Report

At the last Annual General Meeting M/s P N Raghavendra Rao & Co was appointed as Statutory Auditors of the company for a period of 3 years and they shall hold office until the conclusion of 33rd Annual General Meeting of the company Their appointment is subject to ratification by members at every Annual General Meeting Accordingly necessary resolution ratifying their appointment is placed for the approval of members The Auditors' Report does not contain any qualification reservation or adverse remark

Secretarial Auditors and Secretarial Audit Report

M/s C Thirumurthy & Associates Company Secretaries Coimbatore were appointed as Secretarial Auditors to conduct secretarial audit for the financial year 2014-2015 The Report of Secretarial Auditors is annexed to this report as Annexure VI The Report does not contain any qualification reservation or adverse remark

Internal Control Systems and their Adequacy

Details of internal control system and their adequacy are provided in the Management Discussion Analysis Report attached herewith

Cost Audit

Sri M Nagarajan Cost Accountant Coimbatore was appointed as Cost Auditor to conduct audit of cost accounting records for the financial year 2014-15

Industrial Relations

The relationship with employees continued to remain cordial throughout the year under review General

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transaction on these items during the year under review

i. Details relating to deposits covered under Chapter V of the Act

ii. Issue of equity shares with differential rights as to dividend voting or otherwise

iii. Issue of shares (including sweat equity shares) to employees of the company under any scheme

Your Directors state that no significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and company's operations in future

Your Directors further state that during the year under review no case was filed pursuant to Sexual Harassment of Women at Workplace (Prevention Prohibition and Redressal) Act 2013

Acknowledgement

Your Directors acknowledge with gratitude the timely assistance and help extended by the Government of India Governments of Tamilnadu and Karnataka Banks Karnataka Power Transmission Corporation Limited and Tamilnadu Electricity Board Your Directors thank the cane growers who have supplied sugarcane to the factories and wish to place on record their appreciation of the contributions made by all the employees

By Order of the Board Coimbatore S V BALASUBRAMANIAM 27.7.2015 Chairman


Mar 31, 2014

Dear Members

The Directors have pleasure in presenting the 30th Annual Report together with audited accounts of the company for the year ended 31st March 2014

(Rs in Lakhs)

Financial Results Financial Year

2013-14 2012-13

Profit for the year before depreciation 8410.18 23430.89

Less: Depreciation 5195.53 5995.44

Profit Before Tax 3214.65 17435.45

Less: Provisions: Income Tax - Current 674.43 3497.58

MAT Credit Entitlement (674.43) (614.35)

Deferred Tax 345.90 303.48

Profit After Tax 2868.75 14248.74

Add : Surplus brought forward from previous year 2916.80 1216.62

Amount available for appropriation 5785.55 15465.36

Appropriations

Provision for diminution in value of investment (Long Term) (5.09) (124.42)

Provision for Proposed Dividend on equity shares 1429.96 1429.96

Provision for Tax on Dividend 243.02 243.02

Transfer to General Reserve 2000.00 11000.00

Surplus carried over to Balance Sheet 2117.66 2916.80

TOTAL 5785.55 15465.36

Dividend

Your Directors are glad to recommend dividend @ Rs 12.50/- per equity share of Rs.10/- each (125% on equity capital)

Review of Operations Sugar Division

The comparative operational performances for the last two years are as under

During the year under review 25.83 lakh tonnes of sugarcane was crushed against the estimated cane crush of 30.00 lakh tonnes. Drought in the cane area had affected the cane availability and recovery The expansion of crushing capacity from 2500 TCD to 3600 TCD in the sugar factory at Kunthur Village Karnataka is nearing completion and the factory is expected to commence its operation before September 2014

Increase in sugarcane cost coupled with unfavorable sugar price have resulted in loss in sugar segment

Co-generation of Power

The Co-generation plants had generated 326.44 million units of power and exported 224.56 million units of power to grids compared to the generation of 425.55 million units and export of 286.24 million units in the previous year The 20 MW Co-generation plant in the sugar factory at Kunthur Village Karnataka is expected to commence its operation before September 2014

Distillery Division

During the year the distilleries had produced 27.30 million B Ltrs of Alcohol as against 29.39 million B Ltrs in the previous year

Granite Division

During the year under review the demand for your company''s granite products steadily increased because of the quality and the working results were encouraging In the Granite Processing Unit 183974 square metres of Granite Slabs and 25160 square metres of Tiles were produced compared to production of 162206 square metres of Granite Slabs and 20139 square metres of Tiles in the previous year

Wind Mill

Wind Mills had generated 12.10 million units of power and exported 10.48 million units to grid compared to the generation of 16.76 million units and export of 15.27 million units

Prospects for the current year 2014 - 2015

Due to lower cane availability it is estimated to crush 25 lakh tonnes of sugarcane in aggregate Performance of co-generation plant will be based on baggase availability in our sugar mills It is estimated to produce 29 million B Ltrs of alcohol in the Distillery

Units Improved working results are expected in Granite Division The overall working results of the company are expected to be satisfactory

Fixed Deposit

The company has no fixed deposits as on 31.3.2014

Directors

Sri V Venkata Reddy Vice Chairman who retired at the last Annual General Meeting did not seek re-appointment and hence he was not re-appointed The Board of Directors wish to place on record their appreciation for the valuable services rendered by Sri V Venkata Reddy during his tenure of office as Vice Chairman in the growth of the company

Sri S V Alagappan and Sri S V Arumugam have resigned from the Board of Directors on 16.7.2014 The Board of Directors wish to place on record their appreciation for the valuable services rendered by Sri S V Alagappan and Sri S V Arumugam during their tenure of office as Directors

Sri E P Muthukumar and Dr M P Vijayakumar Directors retire at the ensuing Annual General Meeting and are eligible for re-appointment The company has received notices along with requisite deposits under Section 160 of the Companies Act 2013 proposing the candidature of above Directors for the office of Independent Directors Accordingly it is proposed to appoint Sri E P Muthukumar and Dr M P Vijayakumar as Independent Directors for a period of 5 consecutive years and they shall hold office up to 14th September 2019

In compliance with the provisions of Sections 149, 152 read with Schedule IV and all other applicable provisions of the Companies Act 2013 and the Companies (Appointment and Qualification of Directors) Rules 2014 and Clause 49 of the Listing Agreement with the Stock Exchanges it is proposed to appoint Sri A K Perumalsamy and Sri T Gundan as Independent Directors for a period of 5 consecutive years and they shall hold office up to 14th September 2019 The company has received notices along with requisite deposits under Section 160 of the Companies Act 2013 proposing Sri A K Perumalsamy and Sri T Gundan for the office of Independent Directors

Directors'' Responsibility Statement

As stipulated in Section 217(2AA) of the Companies Act 1956 your Directors confirm that

i. they have followed the applicable accounting standards in the preparation of annual accounts

ii. 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 2013-2014 and of the profit of the company for that period

iii. they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities and

iv they have prepared the annual accounts on a going concern basis

Particulars of Employees

The information required as per Section 217(2A) of the Companies Act 1956 read with the Companies (Particulars of Employees) Rules 1975 is furnished in Annexure-I forming part of this Report

Conservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo

The particulars required to be included in terms of Section 217(1) (e) of the Companies Act 1956 with regard to Conservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo are given in Annexure-II forming part of this Report

Corporate Governance

A separate section on Corporate Governance Management Discussion and Analysis and a certificate from the Auditors of the company regarding compliance of conditions of Corporate Governance as stipulated under Clause 49 of the Listing Agreement form part of this Report

Auditors

M/s P N Raghavendra Rao & Co the present auditors of the company retire at the ensuing Annual General Meeting and are eligible for re-appointment

The Board of Directors on the recommendation of the Audit Committee has proposed to appoint M/s P N Raghavendra Rao & Co Chartered Accountants Coimbatore as the Statutory Auditors of the company for a period of three years at the ensuing Annual General Meeting The Auditors have confirmed their willingness for reappointment as Auditors of the company and has submitted necessary certificates in compliance of Section 139 of the Companies Act 2013 read with the Companies (Audit and Auditors) Rules 2014

Cost Audit

Sri M Nagarajan Cost Accountant Coimbatore was appointed as Cost Auditor to conduct audit of cost accounting regards for the financial year 2013-2014 with the approval of Central Government

Industrial Relations

The relationship with employees continued to remain cordial throughout the year under review

Acknowledgement

Your Directors acknowledge with gratitude the timely assistance and help extended by the Government of India, Governments of Tamilnadu and Karnataka, Banks, Karnataka Power Transmission Corporation Limited and Tamilnadu Electricity Board Your Directors thank the cane growers who have supplied sugarcane to the factories and wish to place on record their appreciation of the contributions made by all the employees

By Order of the Board Coimbatore S V BALASUBRAMANIAM

30.7.2014 Chairman


Mar 31, 2013

Dear Members

The Directors have pleasure in presenting the 29th Annual Report together with audited accounts of the Company for the year ended 31st March 2013

(Rs in Lakhs) Financeial Results Financial Year

2012-13 2011-12

Profit for the year before depreciation 23430.89 17920.15

Less: Depreciation 5995.44 6676.92

Profit Before Tax 17435.45 11243.23

Less: Provisions: Income Tax - Current 3497.58 2248.30

MAT Credit Entitlement (614.35) (1223.11)

Deferred Tax 303.48 (348.95)

Profit After Tax 14248.74 10566.99

Add : Surplus brought forward from previous year 1216.62 1134.62

Amount available for appropriation 15465.36 11701.61

Appropriations

Provision for diminution in value of investment (Long Term) (124.42) 155.44

Provision for Proposed Dividend on equity shares 1429.96 1143.97

Provision for Tax on Dividend 243.02 185.58

Transfer to General Reserve 11000.00 9000.00

Surplus carried over to Balance Sheet 2916.80 1216.62

TOTAL 15465.36 11701.61

Dividend

Your Directors are glad to recommend dividend @ Rs 12.50/- per equity share of Rs.10/- each (125% on equity capital)

Review of Operations Sugar Division

Sugar Unit - I Sugar Unit - II Alathukombai, Tamilnadu Alaganchi, Karnataka 2012-13 2011-12 2012-13 2011-12

No of days crushed 202 212 272 262 Sugarcane crushed

(Lakh tonnes) 6.47 5.68 16.82 14.28

Recovery (%) 10.39 10.31 10.27 10.90 Sugar produced

(Lakh quintals) 6.84 5.81 17.29 15.56

Sugar Unit - III Sugar Unit - IV Kunthur, Karnataka Kolundampattu, Tamilnadu 2012-13 2011-12 2012-13 2011-12

No of days crushed 37 251 245 265

(Lakh tonnes) 0.69 4.66 11.29 9.99

Recovery (%) 10.95 11.04 9.86 9.73

(Lakh quintals) 0.79 5.15 11.17 9.72

During the year under review the aggregate sugarcane crushed is 35.27 lacs tonnes compared to 34.61 Lacs tonnes in the previous year The overall working results are better compared to previous year and the expansion of crushing capacity from 2500 TCD to 3600 TCD at Kunthur Village Karnataka is in advanced stage of completion

During the year the Central Government pursuant to the recommendations of Dr C Rangarajan Committee has abolished both levy sugar obligation and release mechanism of sugar stocks to the benefit of all concerned with the sugar industry

Co-generation of Power

The Co-generation plants had generated 425.55 million units of power and exported 286.24 million units of power to grids compared to the generation of 419.80 million units and export of 291.98 million units in the previous year The project of establishing 20 MW co-generation plant at Kunthur Village Karnataka is in advanced stage of completion

Distillery Division

During the year the distilleries had produced 29.39 million B. Ltrs of Alcohol as against 28.55 million B. Ltrs in the previous year Granite Division

In the Granite Processing Unit 162206 square metres of Granite Slabs and 20139 square metres of Tiles were produced compared to production of 119397 square metres of Granite Slabs and 16727 square metres of Tiles in the previous year Over the years the working results of this division have vastly improved and expected to improve further

Wind Mill

Wind Mills had generated 16.76 million of units of power and exported 15.27 million units to grid compared to the generation of 14.38 million units and export of 12.78 million units in the previous year

Prospects for the Current year 2013 - 2014

It is estimated to crush 30 lakh tonnes of sugarcane in aggregate It is estimated to produce 29.5 million B. Ltrs of alcohol in distillery units The workings of granite processing is encouraging and we expect an improved results in Granite Division The overall working results of the company are expected to be satisfactory

Fixed Deposit

The company has no fixed deposits as on 31.3.2013 Directors

Sri V Venkata Reddy Sri A K Perumalsamy and Sri T Gundan Directors retire by rotation at the ensuing Annual General Meeting and are eligible for re-appointment

Particulars of Employees

The information required as per Section 217(2A) of the Companies Act 1956 read with Companies (Particulars of Employees) Rules 1975 is furnished in Annexure-I forming part of this Report

Conservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo

The particulars required to be included in terms of Section 217(1) (e) of The Companies Act 1956 with regard to Conservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo are given in Annexure-II forming part of this Report

Audit Committee

The Audit Committee comprises of Sri V Venkata Reddy Sri E P Muthukumar Sri S V Arumugam and Sri T Gundan Sri V Venkata Reddy Sri E P Muthukumar and Sri T Gundan are Independent Directors

Directors'' Responsibility Statement

As stipulated in Section 217 (2AA) of the Companies Act 1956 your Directors confirm that

i. they have followed the applicable accounting standards in the preparation of annual accounts

ii. 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 2012-2013 and of the profit of the company for that period

iii. they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities and

iv. they have prepared the annual accounts on a going concern basis Corporate Governance

A separate section on Corporate Governance Management Discussion and Analysis and a certificate from the Auditors of the company regarding compliance of conditions of Corporate Governance as stipulated under clause 49 of the Listing Agreement form part of this Report

Auditors

M/s P N Raghavendra Rao & Co the present auditors of the company retire at the ensuing Annual General Meeting and are eligible for re-appointment

Cost Audit

Sri M Nagarajan Cost Accountant Coimbatore has been appointed as Cost Auditor to conduct cost audit of sugar and electricity for the financial year 2012-2013 with the approval of Central Government

Industrial Relations

The relationship with employees continued to remain cordial throughout the year under review Acknowledgement

Your Directors acknowledge with gratitude the timely assistance and help extended by the Government of India Governments of Tamilnadu and Karnataka Banks Karnataka and Tamilnadu Electricity Boards Your Directors thank the cane growers who have supplied sugarcane to the factories and wish to place on record their appreciation of the contributions made by all the employees

By Order of the Board

Coimbatore S V BALASUBRAMANIAM

30.5.2013 Chairman


Mar 31, 2012

The Directors have pleasure in presenting the 28th Annual Report together with audited accounts of the Company for the year ended 31st March 2012

(Rs in Lakhs)

Financial Results Financial Year 2011-12 2010-11

Profit for the year before depreciation 17920.15 12692.25

Less : Depreciation 6676.92 7083.08

Profit Before Tax 11243.23 5609.17

Less : Provisions : Current Tax 2248.30 627.48

MAT Credit Entitlement (1223.11) (1114.55)

Deferred Tax (348.95) 790.10

Profit After Tax 10566.99 5306.14

Add : Surplus brought forward from previous year 1134.62 1262.45

Amount available for appropriation 11701.61 6568.59

Appropriations

Provision for diminution in value of investment (Long term) 155.44 --

Provision for Proposed Dividend on equity shares 1143.97 1143.97

Provision for Tax on Dividend 185.58 190.00

Transfer to General Reserve 9000.00 4100.00

Surplus carried over to Balance Sheet 1216.62 1134.62

TOTAL 11701.61 6568.59

Dividend

Your Directors have recommended dividend of Rs 10/- per equity share of Rs 10/- each (100% on equity capital)

Review of Operations

Sugar Division

Sugar Unit-I Sugar Unit-II Alathukombai, Tamilnadu Alaganchi,Karnataka 2011-12 2010-11 2011-12 2010-11

No of days crushed 212 244 262 278

Sugarcane crushed 5.68 5.09 14.28 11.85 (Lakh tonnes)

Raw Sugar Processed - 0.28 - 0.33 (Lakh tonnes)

Recovery (%) 10.31 9.99 10.90 10.57

Sugar produced (Lakh quintals)

- From Cane 5.81 5.06 15.56 12.51

- From Raw Sugar - 2.70 - 3.11

Sugar Unit - III Sugar Unit - IV Kunthur, Karnataka Kolundampattu, Tamilnadu 2011-12 2010-11 2011-12 2010-11

No of days crushed 251 198 265 217

Sugarcane Crushed 4.66 3.50 9.99 5.41 (Lakh tonnes)

Raw Sugar Processed - - - 0.06 (Lakh tonnes)

Recovery (%) 11.04 10.87 9.73 9.29

Sugar Produced (Lakh quintals)

- From Cane 5.15 3.75 9.72 5.03

- From Raw Sugar - - - 0.53

During the financial year 2011-12 the company had crushed 34.61 lakh tonnes of cane compared to 25.85 lakh tonnes in the previous year. The recovery had increased in all the sugar units. The volume of sugar sales had also increased substantially which yields improved results. The stock of sugar continues to be at high levels resulting in increased finance costs.

Out of four sugar plants three sugar plants are integrated with Co-generation facilities. The company is planning to establish a 20 MW C o-generation plant in its sugar factory at Kunthur Village, Karnataka besides expanding the crushing capacity from 2500TCD to 3600 TCD. Effective use of by-products has ensured significant value addition. In spite of unfavorable monsoon the company is expected to maintain sugar cane crush at 35 lakh tonnes. Any increase in sugar price would benefit the company

Co-generation of Power

The Co-generation plants had generated 419.80 million units of power and exported 291.98 million units of power to grids compared to the generation of 409.64 million units and export of 291.06 million units in the previous year. Continuous delay in making payments by the State grids significantly affects the liquidity position of the company

Distillery Division

During the year the distillery units had produced 28.55 million B.Ltrs of Alcohol as against 25.95 million B.Ltrs in the previous year

Granite Division

In the Granite Processing Unit 119397 square meters of Granite Slabs and 16727 square meters of Tiles were produced compared to production of 110667 square meters of Granite Slabs and 13675 square meters of Tiles in the last year

Wind Mill

Wind Mills had generated 14.38 million units of power and exported 12.78 million units to grid compared to the generation of 15.12 million units and export of 13.27 million units Prospects for the Current Year 2012 - 2013

It is estimated to crush 35 lakh tonnes of Sugarcane in aggregate. It is estimated to produce 160 Lakh B.Ltrs of alcohol in the Distillery Unit in Tamilnadu and 150 Lakh B.Ltrs of alcohol in Distillery Unit in Karnataka . The 'working results of the Company are expected to be satisfactory

Fixed Deposit

The company has no fixed deposits as on 31.3.2012

Directors

Sri S V Alagappan, Sri S V Arumugam and Sri E P Muthukumar are the Directors retire by rotation at the ensuing Annual General Meeting and are eligible for re-appointment

Dr M P Vijayakumar IAS (Rtd) was co-opted as Additional Director on 14.11.2011. He holds office upto the date of ensuing Annual General meeting. A notice has been received from a member proposing him as a Director.

Particulars of Employees

The information required as per Section 217(2A) of the Companies Act 1956 read with Companies (Particulars of Employees) Rules 1975 i s furnished in Annexure-I forming part of this Report

Conservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo

The particulars required to be included in terms of Section 217(1) (e) of the Companies Act 1956 with regard to Conservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo are given in Annexure-II forming part of this Report

Audit Committee

The Audit Committee comprises of Sri V Venkata Reddy Sri E P Muthukumar Sri S V Arumugam and Sri T Gundan. Sri V Venkata Reddy Sri E P Muthukumar and Sri T Gundan are Independent Directors

Directors' Responsibility Statement

As stipulated in Section 217 (2AA) of the Companies Act 1956 y our Directors confirm that

i. they have followed the applicable accounting standards in the preparation of annual accounts

ii. 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 2011-2012 and of the profit of the company for that period

iii. they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance 'with the provisions of the Companies Act 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities and

iv. they have prepared the annual accounts on a going concern basis

Corporate Governance

A separate section on Corporate Governance Management Discussion and Analysis and a certificate from the Auditors of the company regarding compliance of conditions of Corporate Governance as stipulated under clause 49 of the Listing Agreement form part of this Report

Auditors

M/s P N Raghavendra Rao & Co the present auditors of the company retire at the ensuing Annual General Meeting and are eligible for re-appointment

Cost Audit

Sri M Nagarajan Cost Accountant Coimbatore has been appointed as Cost Auditor to conduct cost audit of sugar, industrial alcohol and electricity units for the financial year 2011-2012 with the approval of Central Government

Industrial Relations

The relationship with employees continued to remain cordial throughout the year under review

Acknowledgement

Your Directors acknowledge with gratitude the timely assistance and help extended by the Government of India, Governments of Tamilnadu and Karnataka, Banks, Karnataka and Tamilnadu Electricity Boards. Your Directors thank the cane growers who have supplied sugarcane to the factories and wish to place on record their appreciation of the contributions made by all the employees

By Order of the Board

Coimbatore S V BALASUBRAMANIAM

25.5.2012 Chairman


Mar 31, 2011

Dear Members

The Directors have pleasure in presenting the 27th Annual Report together with audited accounts of the Company for the year ended 31st March 2011

(Rs in Lakhs)

Financial Results Financial Year

2010-11 2009-10

Profit for the year before depreciation 12692.25 23807.83

Less : Depreciation 7083.08 3834.06

Profit Before Tax 5609.17 19973.77

Less : Provisions : Income Tax 1114.55 3978.73

MAT Credit Entitlement (1114.55) (886.66)

Previous year provision written back (487.07)

Deferred Tax 790.10 2518.37

Profit After Tax 5306.14 14363.33

Add : Surplus brought forward from previous year 1262.45 1731.78

Amount available for appropriation 6568.59 16095.11

Appropriations

Provision for diminution in value of investment - (5.73)

Transfer to General Reserve 4100.00 13500.00

Provision for Proposed Dividend 1143.97 1143.97

Provision for Tax on Dividend 190.00 194.42

Surplus carried over to Balance Sheet 1134.62 1262.45

TOTAL 6568.59 16095.11

Dividend

Your Directors are glad to recommend dividend @ Rs 10/- per equity share of Rs 10/- each (100% on equity capital)

Review of Operations Sugar Division

Sugar Unit - I Sugar Unit - II Sugar Unit - III* Sugar Unit - IV# 2010-11 2009 -10 2010-11 2009 -10 2010-11 2009 -10 2010-11 2009 -10

No of days crushed 244 240 278 227 198 - 217 49

Sugarcane crushed 5.09 5.89 11.85 7.98 3.50 - 5.41 0.46 (Lakh tonnes)

Raw Sugar Processed 0.28 0.14 0.33 0.22 - - 0.06 0.007 (Lakh tonnes)

Recovery (%) 9.99 10.23 10.57 10.23 10.87 - 9.29 9.00 Sugar produced (Lakh quintals)

- From Cane 5.06 6.04 12.51 8.16 3.75 - 5.03 0.28

- From Raw Sugar 2.70 1.33 3.11 2.14 - - 0.53 0.06

*Sugar unit III started its crushing from 30.8.2010 #Sugar unit IV commenced its operations on 271.2010

During the year under review the sugar prices remained flat throughout the year at uneconomical levels. The cost of inputs had increased substantially mainly due to steep increase in cane price. The stock of sugar was almost 60% of the total production resulting in increase of carrying cost

Co-generation of Power

The co-generation plants had generated 409.64 million units of power and exported 291.06 million units of power to grids compared to the generation of 245.58 million units and export of 168.78 million units in the previous year. The increase is due to the full year operation of co-generation plant at Unit-IV at Thiruvannamalai District. The dues on supply of power to the Tamilnadu and Karnataka Government grids are not settled in time and the delay has impacted the working capital finance of the company

Distillery Division

During the year the distillery units had produced 25.95 million BLtrs of Alcohol as against 26.80 million BLtrs in the previous year

Granite Division

In the granite processing unit 110667 square metres of granite slabs and 13675 square metres of tiles were produced compared to production of 111658 square metres of granite slabs and 10722 square metres of tiles in the last year

Wind Mill

Wind Mills had generated 15.12 million units of power and exported 13.27 million units to grid compared to the generation of 16.77 million units and export of 15.18 million units

Prospects for the Current year 2011 - 2012

It is estimated to crush 30 lakh tones of sugarcane in aggregate. It is estimated to produce 16.5 million BLtrs of alcohol in the Distillery Unit in Tamilnadu and 15.8 million BLtrs of alcohol in Distillery Unit in Karnataka . The working results of the company are expected to be satisfactory

Fixed Deposit

The company has no fixed deposits as on 31.3.2011

Directors

Sri A K Perumalsamy and Sri T Gundan Directors retire by rotation at the ensuing Annual General Meeting and are eligible for re-appointment.

Sri P L Sivanappan Director of the company who retired at the last Annual General Meeting did not seek re-appointment and hence he was not re-appointed as Director of the company. Your Directors wish to place on record the very valuable services rendered by him during his tenure of office

Particulars of Employees

The information required as per Section 217(2A) of the Companies Act 1956 read with Companies (Particulars of Employees) Rules 1975 is furnished in Annexure-I forming part of this Report

Conservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo

The particulars required to be included in terms of Section 217(1) (e) of the Companies Act 1956 with regard to Conservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo are given in Annexure-II forming part of this Report

Audit Committee

The Audit Committee comprises of Sri V Venkata Reddy Sri E P Muthukumar Sri S V Arumugam and Sri T Gundan. Sri V Venkata Reddy Sri E P Muthukumar and Sri T Gundan are Independent Directors

Directors' Responsibility Statement

As stipulated in Section 217 (2AA) of the Companies Act 1956 your Directors confirm that

i they have followed the applicable accounting standards in the preparation of annual accounts

ii 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 2010-2011 and of the profit of the company for that period

iii they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities and

iv they have prepared the annual accounts on a going concern basis

Corporate Governance

A separate section on Corporate Governance Management Discussion and Analysis and a certificate from the Auditors of the company regarding compliance of conditions of Corporate Governance as stipulated under clause 49 of the Listing Agreement form part of this Report

Auditors

M/s P N Raghavendra Rao & Co the present auditors of the company retire at the ensuing Annual General Meeting and are eligible for re-appointment

Cost Audit

Sri M Nagarajan Cost Accountant Coimbatore has been appointed as Cost Auditor to conduct cost audit of sugar units for the financial year 2010-2011 with the approval of Central Government

Industrial Relations

The relationship with employees continued to remain cordial throughout the year under review

Acknowledgement

Your Directors acknowledge with gratitude the timely assistance and help extended by the Government of India Governments of Tamilnadu and Karnataka and Banks. Your Directors thank the cane growers who have supplied sugarcane to the factories and wish to place on record their appreciation of the contributions made by all the employees

By Order of the Board

Coimbatore S V BALASUBRAMANIAM 23.5.2011 Chairman


Mar 31, 2010

The Directors have pleasure in presenting the 26th Annual Report together with audited accounts of the company for the year ended 31st March 2010

(Rs in Lakhs)

Financial highlights Financial Year 2009-10 2008-09

Profit for the year before depreciation 23807.83 16597.74

Less : Depreciation 3834.06 3408.23

Profit Before Tax 19973.77 13189.51

Less : Provisions : Income Tax 3978.73 1491.86

Fringe Benefit Tax - 20.43

MAT Credit Entitlement (886.66) (707.30)

Deferred Tax 2518.37 401.75

Profit After Tax 14363.33 11982.77

Add : Surplus brought forward from previous year 1731.78 1732.55

Amount available for appropriation 16095.11 13715.32

Appropriations

Provision for diminution in value of investment (5.73) 4.78

Transfer to Capital Redemption Reserve - 1846.00

Transfer to General Reserve 13500.00 8600.00

Dividend on Preference Capital - 166.14

Dividend on Equity Capital 1143.97 1143.97

Provision for Tax on Dividend 194.42 222.65

Surplus carried over to Balance Sheet 1262.45 1731.78

TOTAL 16095.11 13715.32

Dividend

Your Directors are glad to recommend dividend of Rs 10/- per equity share of Rs 10/- each (100% on equity capital)

Review of Operations Sugar Division

The company had crushed 1433182 tonnes of sugarcane in all its factories as against 2276689 tonnes of sugarcane in the previous year. The sugar produced in the current year was 1448340quintals as against 2323441 quintals in the previous year. The company had also processed 36834 tonnes of raw sugar. The financial results of the sugar division were appreciable mainly due to buoyant sugar prices. Your Directors are glad to inform that the Sugar Unit IV at Thiruvannamalai District has commenced its commercial operations from27.01.2010.

Co-generation of Power

The Co-generation plants had generated 245.58 million uints of Power and exported 168.78 million units of Power to Grids compared to the generation of 284.59 million units and export of 186.23 million units in the previous year. Due to lower crush of sugarcane the Bagasse availability for Co-generation plant was not adequate for optimum operations, resulting in lower profits compared to the previous years

Distillery Division

During the current year the Distillery Units had produced 26799381 BLtrs of Alcohol as against 25742810 BLtrs of Alcohol in the previous year.

Granite Division

In the Granite Processing Unit 111658 square metres of Granite Slabs and 10722 square metres of Tiles were produced compared to production of 93575 square metres of Granite Slabs and 13488square metres of Tiles in the lastyear

Wind Mill

The Wind Mills had generated 16.77million units of Power and exported 15.18million units to grid compared to generation of 15.12 million units and export of 13.33 million units of power to grid in the previous year

Prospects for the Current Year 2010 - 2011

It is estimated to crush 18.75 lakh tonnes of sugarcane in all its factories. The All India Sugar production is estimated to increase and the Sugar prices are expected to remain stable at lower levels. The cane price paid/payable is much higher than the previous years increasing the cost of production. It is also estimated to produce 337 lakh BLtrs of Spirit in Distillery Units

Fixed Deposit

The company has nofixeddeposit as on31.3.20l0

Appointment of Chairman

The present term of office of Sri S V Balasubramaniam as Managing Director of the company expires on 8.10.2010. After considering the recommendations of the Remuneration Committee, the Board of Directors at its meeting held on 27.5.2010 has restricted the present term of office to 1 st June 2010 and appointed Sri S V Balasubramaniam as Chairman of the company with substantial powers of management with effect from 2.6.2010. The terms and conditions of his appointment and payment of remuneration are subject to the approval of the members of the company. Necessary special resolutions are placed before the members for their approval

Appointment of Managing Director

The term of office of Sri B Saravanan as Joint Managing Director of the company expires on 4.7.2010. After considering the recommendations of the Remuneration Committee, the Board of Directors at its meeting held on 27.5.2010 has restricted the present term of office to 1 st June 2010 and appointed Sri B Saravanan as Managing Director of the company with effect from 2.6.2010. The terms and conditions of his appointment and payment of remuneration are subject to the approval of the members of the company. Necessary resolutions are placed before the members for their approval

Directors

Sri V Venkata Reddy and Sri P L Sivanappan Directors retire by rotation at the ensuing Annual General Meeting and are eligible for re-appointment

Particulars of Employees

The information required as per Section 217(2A) of the Companies Act 1956 read with Companies (Particulars of Employees) Rules 1975is furnished in Annexure-I forming partof this Report

Conservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo

The particulars required to be included in terms of Section 217( 1) (e) of the Companies Act 1956with regard to Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo are given in Annexure-ll forming partof this Report

Audit Committee

The Audit Committee comprises of Sri V Venkata Reddy Sri E P Muthukumar Sri S V Arumugam and Sri T Gundan. Sri V Venkata Reddy Sri E P Muthukumar and Sri T Gundan are Independent Directors

Directors Responsibility Statement

As stipulated in Section 217 (2AA) of the Companies Act 1956your Directors confirm that

i they have followed the applicable accounting standards in the preparation of annual accounts

ii 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 year2009-2010and of the profit of the company for that period

iii they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 1956for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities and

iv they have prepared the annual accounts on a going concern basis

Corporate Governance

A separate section on Corporate Governance Management Discussion and Analysis and a certificate from the Auditors of the company regarding compliance of conditions of Corporate Governance as stipulated under clause 49 of the listing agreement form partof this Report

Auditors

M/s P N Raghavendra Rao & Co the present auditors of the company retire at the ensuing Annual General Meeting and are eligible for re-appointment

Cost Audit

Sri M Nagarajan Cost Accountant Coimbatore has been appointed as Cost Auditor to conduct cost audit of Sugar units for the financial year2009-2010with the approval of Central Government

Industrial Relations

The relationship with employees continued to remain cordial throughout the year under review

Acknowledgement

Your Directors acknowledge with gratitude the timely assistance and help extended by the Government of India Governments of Tamilnadu and Karnataka, Banks, Karnataka Power Transmission Corporation Limited and Tamilnadu Electricity Board Your Directors thank the cane growers who have supplied sugarcane to the factories and wish to place on record their appreciation of the contributions made by all the employees

By Order of the Board Coimbatore S V BALASUBRAMANIAM

27.5.2010 Chairman

 
Subscribe now to get personal finance updates in your inbox!