Directors Report of Eastern Sugar & Industries Ltd.

Jun 30, 2014

THE MEMBERS

The Directors have pleasure in presenting the Annual Report and the Audited Accounts of the Company for the financial year ended 30th June, 2014:

FINANCIAL RESULTS: (Rs. in Lacs) 2013-14 2012-13

Sales & Other Income 972.64 955.80

Profit / (Loss) before Interest, Depreciation and Tax 514.27 543.86

Less: Interest 114.45 124.85

Depreciation 335.89 335.89

Profit/(Loss) before tax 63.93 83.12

Less: Provision for tax 2.10 5.67

Profit/(Loss) after tax 61.83 77.45

Add/Less: Balance brought forward from previous year 858.24 1280.78

Profit available for appropriation 920.07 1358.24

APPROPRIATIONS (Rs. in Lacs):

Transfer to General Reserve - 500.00

Balance (Loss) carried to Balance Sheet 920.07 858.24

PERFORMANCE AND FUTURE PROGRAMMES:

During the year under review, total income stood at Rs. 972.64 lacs, compared to Rs.955.80 lacs in the previous year 2012-13. Total Income mainly includes Stores and Spare parts, Construction Rights as Operational Income and Block Usages Charges, Sale of Investments and Sale of WIP as Other Income. Profit before Interest, Depreciation and Tax witnessed a marginal fall from Rs. 543.86 lacs, in the previous financial year 2012-13, to Rs. 514.27 lacs in the financial year under review. Directors have been actively considering entering in to new activities for increasing company's business.

DIVIDEND:

Considering funds required for increasing business of the Company and also considering the requirement for strengthening its financial positions, your Directors do not recommend any dividend for the year.

DIRECTORS:

Mr. C. K. Garodia and Mr. R. C. Jha retire at the conclusion of ensuing Annual General Meeting and being eligible offer himself for re-appointment.

Mr. R. C. Jha, Mr. C. K. Garodia and Mr. D. Y. Manawwar are proposed to be appointed as Independent Directors in accordance with the provisions of Sections 149 and 152 of the Act read with the rules made thereunder and the Clause 49 of Listing Agreement with the Stock Exchanges concerned.

Pursuant to provisions of section 160 of the Companies Act, 2013, Ms. Ratna Srivastava is proposed to be appointed as Non-executive Director of the Company at the ensuing Annual General Meeting of the Company.

Brief resume of the Directors proposed to be re-appointed, as stipulated under clause 49 of the Listing Agreements with the Stock Exchanges are provided in the Notice forming part of this Annual Report.

AUDITORS:

The Auditors of the company M/s Vivek Jaiswal & Co., Chartered Accountants, hold office until the conclusion of the ensuing Annual General Meeting and are recommended for re-appointment. Certificate from Auditors has been received to the effect that their appointment, if made, would be within the limit prescribed under under the provisions of the Companies Act, 20913.

Notes forming part of accounts, which are specifically referred to by the Auditors in their report, are self explanatory and, therefore, do not call for any further comments.

FIXED DEPOSITS:

During the year under review, the Company has not accepted public deposits under section 58-A of the Companies Act, 1956.

DE-MATERIALISATION OF SHARES:

The Company's equity shares are available for de-materialization on both the depositories, viz., NSDL & CDSL. Shareholders may be aware that SEBI has made trading in your Company's shares mandatory, in de-materialized form. As on 30th June, 2014, 14031900 equity shares representing 83.03% of your Company's Equity Share Capital have been de-materialised. CONVERSION OF PREFERENCE SHARES INTO EQUITY SHARES:

Pursuant to Special Resolution passed by the Shareholders at their meeting held on 3rd October 2013, 3,00,000,12% Cumulative Convertible Preference Shares of Rs.100/- each, issued and alloted in 1998, and 7,00,000, 3% Cumulative Convertible Preference Shares of Rs.100/- each, issued and allotted in 2004, out of which only 95,000, 12% Cumulative Convertible Preference Shares of Rs.100/- each and 4,30,000, 3% Cumulative Convertible Preference Shares of Rs.100/- each of non promoters be converted into 52,50,000 equity shares of Rs.10/- each as opted by their holders, as per the in-principle approval of Bombay Stock Exchange vide letter dated 4th September 2014. ISSUE AND ALLOTMENT OF EQUITY SHARES TO PREFERENTIAL ISSUE BASIS:

Pursuant to Special Resolution passed by the Shareholders at their meeting held on 3rd October 2013, 70,00,000 Equity Shares of Rs.10/- each are proposed to be issued and alloted as per the in-principle approval of Bombay Stock Exchange dated 4th September 2014.

LISTING AT STOCK EXCHANGE:

The Shares of the Company are listed on Bombay Stock Exchange, Mumbai and National Stock Exchange of India Ltd. Trading at National Stock Exchange is still suspended and efforts are being put for revocation of the suspension.

STATUTORY INFORMATION:

- There are no employees covered by the provisions of Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975.

- During the year under review, the Company has not carried out any manufacturing activity. Therefore, there are no particulars to be disclosed as per the Companies (Disclosures of Particulars in the Report of the Board of Directors) rules, 1988.

- The company had no foreign exchange earning and outgo during the year under report.

- Certificate received from the Auditors of the Company regarding Compliance of conditions of

Corporate Governance, as required under clause 49 VII of the Listing Agreement, is annexed and forms part of this report.

- As required under 49 IV F of the Listing Agreement, Management Discussion and Analysis Report is annexed and forms part of this report.

DIRECTOR'S RESPONSIBILITY STATEMENT

Pursuant to provisions of section 217 (2AA) of the Companies Act, 1956, your Directors confirm that:

- in the preparation of the Annual Accounts for the year ended 30th June, 2014, the applicable accounting standards had been followed, along with proper explanation relating to material departures;

- The Directors have selected such accounting policies and applied them consistently and made judgements 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 the loss of the company for the year under review;

- The Directors 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

- The Directors have prepared the annual accounts on a going concern basis.

EMPLOYEE RELATIONS:

During the year under review, the relations between the Management and the workmen were cordial.

INVESTOR RELATIONS:

Your Company always endeavors to keep the time of response to Shareholders' requests/grievance at the minimum. Priority is accorded to address all the issues raised by the Shareholders and provide them a satisfactory reply at the earliest possible time. The Shareholders' Grievance Committee of the Board meets periodically and reviews the status of the redressal of Shareholders' Grievances. The Shares of the Company continue to be traded in Electronic Form and the De- materialization arrangement exists with both the depositories, viz., National Depository Limited and Central Depository Services (India) Limited.

ACKNOWLEDGEMENT:

Your Directors wish to place on record the sincere and dedicated efforts of all the members of the Company's team which has throughout the year remained active. Your Directors also take this opportunity to offer their sincere thanks to Financial Institutions, Banks, other Government Agencies, our valued customers and the investors for their continued support and assistance. The employees of your Company continued to display their unstinted devotion, co-operation. Your Directors take this opportunity to record their appreciation for the same. Your Directors also express their profound thanks to the Shareholders for their faith and continued support to the endeavors of the Company. By order of the Board For Eastern Sugar & Industries Limited

Place : Motihari B. K. Nopany Dated : 14th July, 2015 Chairman

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Jun 30, 2013

TO THE MEMBERS

The Directors have pleasure in presenting the Annual Report and the Audited Accounts of the Company for the financial year ended 30th June, 2013:

FINANCIAL RESULTS: (Rs. in Lacs)

2012-13 2011-12

Sales & Other Income 955.80 1135.73

Profit / (Loss) before Interest, Depreciation and Tax 543.87 843.75

Less: Interest 124.85 124.85

Depreciation 335.89 344.00

Profit/(Loss) before tax 83.13 374.91

Less: Provision for tax 5.67

Profit/(Loss) after tax 77.46 374.91

Add/Less: Balance brought forward from previous year 1280.78 905.87

Profit available for appropriation 1358.24 1280.78

APPROPRIATIONS

(Rs. in Lacs):

Transfer to General Reserve 500.00

Balance (Loss) carried to Balance Sheet 858.24 1280.78

PERFORMANCE AND FUTURE PROGRAMMES:

During the year under review, total income stood at Rs.955.80 lacs, compared to Rs. 1135.73 lacs in the previous year 2011-12. Profit before Depreciation, Interest, and Tax (PBDIT) during 2012-13 includes Profit from sale of Investments amounting to Rs. 242.62 lacs and during 2011-12 includes Profit from sale of Fixed Assets amounting to Rs. 656.28 lacs, which are exceptional in nature. Therefore, PBDIT before exceptional incomes during 2012-13 stood at Rs. 301.25 lacs as against Rs. 187.47 lacs during 2011-12, which shows an increase of 60.69%.

Your Directors have been actively considering entering in to new activities for increasing company''s business.

DIVIDEND:

Considering funds required for increasing business of the Company and also considering the requirement for strengthening its financial positions, your Directors do not recommend any dividend for the year.

DIRECTORS:

Mr. B. K. Nopany and Mr. S. J. Goswami retire at the conclusion of ensuing Annual General Meeting and being eligible offer themselves for re-appointment.

AUDITORS:

The Auditors of the company M/s Vivek Jaiswal & Co., Chartered Accountants, hold office until the

conclusion of the ensuing Annual General Meeting and are recommended for re-appointment. Certificate from Auditors has been received to the effect that their appointment, if made, would be within the limit prescribed under section 224(1B) of the Companies Act, 1956.

Notes forming part of accounts, which are specifically referred to by the Auditors in their report, are self explanatory and, therefore, do not call for any further comments.

FIXED DEPOSITS:

During the year under review, the Company has not accepted public deposits under section 58-A of the Companies Act, 1956.

DE-MATERIALISATION OF SHARES:

The Company''s equity shares are are available for de-materialization on both the depositories, viz., NSDL & CDSL. Shareholders may be aware that SEBI has made trading in your Company''s shares mandatory, in de-materialized form. As on 30th June, 2013, 14007200 equity shares representing 82.88% of your Company''s Equity Share Capital have been de-materialised.

ISSUE OF BONUS EQUITY SHARES TO PREFERENCE SHAREHOLDERS:

As approved by the Shareholders of the Company and pursuant to provisions of the Companies Act, 1956 read with SEBI Rules/Regulations, a sum of Rs. 4,90,00,000/- (Rupees four crores ninety lacs only) was capitalized, out of the amount standing to the credit of the General Reserve Account, and 49,00,000 Equity were issued and allotted as fully paid bonus shares of Rs. 10/- each to the holders of 300000 12% cumulative convertible preference shares of Rs. 100/- each and 700000 3% cumulative convertible preference shares of Rs. 100/- each.

LISTING AT STOCK EXCHANGE:

The Shares of the Company are listed on Bombay Stock Exchange, Mumbai and National Stock Exchange of India Ltd.

The shares at National Stock Exchange are still suspended for trading and efforts are being put for revocation of the suspension.

STATUTORY INFORMATION:

- There are no employees covered by the provisions of Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975.

- During the year under review, the Company has not carried out any manufacturing activity. Therefore, there are no particulars to be disclosed as per the Companies (Disclosures of Particulars in the Report of the Board of Directors) rules, 1988.

- The company had no foreign exchange earning and outgo during the year under report.

- Certificate received from the Auditors of the Company regarding Compliance of conditions of Corporate Governance, as required under clause 49 VII of the Listing Agreement, is annexed and forms part of this report.

- As required under 49 IV F of the Listing Agreement, Management Discussion and Analysis Report is annexed and forms part of this report.

DIRECTOR''S RESPONSIBILITY STATEMENT

Pursuant to provisions of section 217 (2AA) of the Companies Act, 1956, your Directors confirm that:

- in the preparation of the Annual Accounts for the year ended 30th June, 2013, the applicable accounting standards had been followed, along with proper explanation relating to material departures;

- The Directors have selected such accounting policies and applied them consistently and made judgements 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 the loss of the company for the year under review;

- The Directors 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

- The Directors have prepared the annual accounts on a going concern basis.

EMPLOYEE RELATIONS:

During the year under review, the relations between the Management and the workmen were cordial.

INVESTOR RELATIONS:

Your Company always endeavors to keep the time of response to Shareholders'' requests/grievance at the minimum. Priority is accorded to address all the issues raised by the Shareholders and provide them a satisfactory reply at the earliest possible time. The Shareholders'' Grievance Committee of the Board meets periodically and reviews the status of the redressal of Shareholders'' Grievances. The Shares of the Company continue to be traded in Electronic Form and the De- materialization arrangement exists with both the depositories, viz., National Securities Depository Limited and Central Depository Services (India) Limited.

ACKNOWLEDGEMENT:

Your Directors wish to place on record the sincere and dedicated efforts of all the members of the Company''s team which has throughout the year remained active. Your Directors also take this opportunity to offer their sincere thanks to Financial Institutions, Banks, other Government Agencies, our valued customers and the investors for their continued support and assistance. The employees of your Company continued to display their unstinted devotion, co-operation. Your Directors take this opportunity to record their appreciation for the same. Your Directors also express their profound thanks to the Shareholders for their faith and continued support to the endeavors of the Company.

By order of the Board

For Eastern Sugar & Industries Limited

Place : Kolkata (B. K. Nopany)

Dated : 31st October, 2013 Chairman

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Jun 30, 2012

The Directors have pleasure in presenting the Annual Report and the Audited Accounts of the Company for the financial year ended 30th June, 2012:

FINANCIAL RESULTS:

(Rs. in Lacs) 2011-12 2010-11

Sales & Other Income 1135.73 1302.41

Profit / (Loss) before Interest, Depreciation and Tax 843.75 1220.83

Less: Interest 124.85 166.47

Depreciation 344.00 925.57

Profit/(Loss) before tax 374.91 128.79

Add/Less: Balance brought forward from previous year 905.87 777.08

Profit available for appropriation 1280.78 905.87

APPROPRIATIONS

Transfer to General Reserve - -

Balance (Loss) carried to Balance Sheet 1280.78 905.87

PERFORMANCE AND FUTURE PROGRAMMES:

During the year under review, total income stood at Rs. 1135.73 lacs, compared to Rs.1302.41 lacs in the previous year 2010-11. Total Income includes, inter alia, Profit on Sale of Fixed Assets amounting to Rs. 656.28 lacs. Sales and Block Usage Charges stood at Rs.213.92 lacs and Rs 265 53 lacs as against Rs.98.08 lacs and Rs.441.44 lacs, respectively, during the immediately preceding financial year. Net Profit stood at Rs.374.91 lacs, compared to Rs.128.79 lacs during the previous financial year 2010-11.

Directors have been actively considering entering in to new activities for increasing company''s business To begin with your Directors have actively been considering setting-up of a Distillery Project. Preliminary work of project report and land identification is under finahsation.

DIVIDEND:

Considering funds required for increasing business of the Company and also considering the requirement for strengthening its financial positions, your Directors do not recommend any dividend for the year.

DIRECTORS:

Mr. R. C. Jha & Mr. D. Y. Manawwar retires at the conclusion of ensuing Annual General Meeting and being eligible offer himself for re-appointment.

AUDITORS:

The Auditors of the company M/s Vivek Jaiswal & Co., Chartered Accountants, hold office until the conclusion of the ensuing Annual General Meeting and are recommended for re-appointment.

Certificate from Auditors has been received to the effect that their appointment, if made, would be within the limit prescribed under section 224(1 B) of the Companies Act, 1956. Notes forming part of accounts, which are specifically referred to by the Auditors in their report, are self explanatory and, therefore, do not call for any further comments.

FIXED DEPOSITS:

During the year under review, the Company has not accepted public deposits under section 58-A of the Companies Act, 1956.

DE-MATERIALISATION OF SHARES:

The Company''s equity shares are available for de-materialization on both the depositories, viz., NSDL & CDSL Shareholders may be aware that SEBI has made trading in your Company''s shares mandatory, in de-materialized form. As on 30th June, 2012, 8635300 equity shares representing 71.96% of your Company''s Equity Share Capital have been de-materialized.

LISTING AT STOCK EXCHANGE:

The Shares of the Company are listed on Bombay Stock Exchange, Mumbai and National Stock Exchange of India Ltd. The Company has not paid annual listing fee to the Bombay Stock Exchange, National Stock Exchange for the year 2012-13. The shares at National Stock Exchange are still suspended for trading and efforts are being put for revocation of the suspension.

STATUTORY INFORMATION:

- There are no employees covered by the provisions of Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975.

- During the year under review, the Company has not carried out any manufacturing activity Therefore, there are no particulars to be disclosed as per the Companies (Disclosures of Particulars in the Report of the Board of Directors) rules, 1988.

- The company had no foreign exchange earnings and outgo during the year under report.

- Certificate received from the Auditors of the Company regarding Compliance of conditions of

- Corporate Governance, as required under clause 49 VII of the Listing Agreement, is annexed and forms part of this report.

- As required under 49 IV F of the Listing Agreement, Management Discussion and Analysis Report is annexed and forms part of this report.

DIRECTOR'' RESPONSIBILITY STATEMENT:

Pursuant to provisions of section 217(2AA) of the Companies Act, 1956, your Directors confirm that:

- In the preparation of the Annual Accounts for the year ended 30hJune, 2012 the applicable accounting standards had been followed long with proper explanation relating to material departures;

- The Directors 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 financials year and the loss of the company for the year under review

- The Directors 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 regularities; and

- The Directors have prepared the annual accounts on a going concern basis.

EMPLOYEE RELATIONS:

During the year under review, the relations between the Management and the workmen were highly cordial.

INVESTOR RELATIONS:

Your Company always endeavors to keep the time of response to Shareholders'' requests/grievance at the minimum. Priority is accorded to address all the issues raised by the Shareholders and provide them a satisfactory reply at the earliest possible time. The Shareholders'' Grievance Committee of the Board meets periodically and reviews the status of the redressed of Shareholders'' Grievances. The Shares of the Company continue to be traded in Electronic Form and the De- materialization arrangement exists with both the depositories, viz., National Depository Limited and Central Depository Services (India) Limited.

ACKNOWLEDGEMENT:

Yours Directors wish to place on record the sincere and dedicated efforts of all the members of the Company'' team which has throughout the year remained active. Your Directors also take this opportunity to offer their sincere thanks to Financial Institutions, Banks, other Government Agencies, our valued customers and the investors for their continued support an assistance. The employees of your Company continued to display their unstinted devotion, co-operation. Your Directors take this opportunity to record their appreciation for the same. Your Directors also express their profound thanks to the Shareholders fr their faith and continued support to the endeavors of the Company.

By order of the Board

For Eastern Sugar & Industries Ltd.

Place : Kolkata (B.K.Nopany)

Dated : 29th November, 2012 Chairman

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Jun 30, 2011

TO THE MEMBERS

The Directors have pleasure in presenting the Annual Report and the Audited Accounts of the Company for the financial year ended 30th June, 2011:

FINANCIAL RESULTS: (Rs. in Lacs)

2010-11 2009-10

1302 41 1533.29

Sales & Other Income .

Profit / (Loss) before Interest, Depreciation and Tax 1220.83 619.47

Less: Interest 166.47 177.47

Depreciation 925.57 3.13

Profit/(Loss) before tax 128.79 449.87

Add/Less: Balance brought forward from previous year 777.08 327.21

Profit available for appropriation 905.87 777.08

APPROPRIATIONS (Rs. in Lacs):

Transfer to General Reserve

Balance (Loss) carried to Balance Sheet 905.87 777.08

I PERFORMANCE AND FUTURE PROGRAMMES:

During the year under review, total income stood at Rs. 1302.41 lacs, compared to533.29 lacs in the previous year 2009-10. Total Income includes, inter alia, Profit on Sale of Fixed Assets amounting to Rs 626.89 lacs. Sales and Block Usage Charges stood at Rs. 98.08 lacs and Rs. 441 44 lacs as against Rs. 925.30 lacs and Rs. 607.99 lacs, respectively, during the immediately preceding financial year. Net Profit stood at Rs. 128.79 lacs, compared to Rs. 449.87 lacs during

I the previous financial year 2009-10.

Directors have been actively considering entering in to new activities for increasing rants business. To begin with your Directors have actively been considering setting-up of a Display Project. The proposed project is for manufacturing of ENA followed by manufacturing and bottling of diverse range of the Indian Made Foreign Liquor (IMFL) products, comprising unmanly bran y, whisky, and rum. In addition, ENA will also be sold in bulk to other manufactures of IMFL products.

DIVIDEND:

Considering funds required for increasing business of the Company and also conslder requirement for strengthening its financial positions, your Directors do not recommend any dividend for the year.

DIRECTORS:

Mr. K. L. Darak retires at the conclusion of ensuing Annual General Meeting and being eligible offer himself for re-appointment.

AUDITORS:

The Auditors of the company M/s Vivek Jaiswal & Co., Chartered Accountants, hold office until the conclusion of the ensuing Annual General Meeting and are recommended for re-appointment Certificate from Auditors has been received to the effect that their appointment, if made, would be within the limit prescribed under section 224(1 B) of the Companies Act, 1956.

Notes forming part of accounts, which are specifically referred to by the Auditors in their report, are self explanatory and, therefore, do not call for any further comments.

FIXED DEPOSITS:

During the year under review, the Company has not accepted public deposits under section 58- A of the Companies Act, 1956.

DE-MATERIALISATION OF SHARES:

The Company''s equity shares are available for de-materialization on both the depositories, viz., NSDL & CDSL. Shareholders may be aware that SEBI has made trading in your Company''s shares mandatory, in de-materialized form. As on 30th June, 2011, 7944900 equity shares representing 66.21% of your Company''s Equity Share Capital have been de-materialized.

CONVERSION OF PREFERENCE SHARES INTO EQUITY SHARES:

Your Directors have since decided to convert 12% 300000 Cumulative Convertible Preference Shares of Rs. 100/- each, issued and alloted in 1998, and 700000 3% Cumulative Convertible Preference Shares of Rs. 100/- each into equity shares of Rs. 10/- each, issued and allotted in 2004, as opted by their holders.

LISTING AT STOCK EXCHANGE:

The Shares of the Company are listed on Bombay Stock Exchange, Mumbai and National Stock Exchange of India Ltd. The Company has paid annual listing fee to the Bombay Stock Exchange, National Stock Exchange for the year 2011-12. The shares at National Stock Exchange are still suspended for trading and efforts are being put for revocation of the suspension.

STATUTORY INFORMATION:

- There are no employees covered by the provisions of Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975.

- During the year under review, the Company has not carried out any manufacturing activity Therefore, there are no particulars to be disclosed as per the Companies (Disclosures of Particulars in the Report of the Board of Directors) rules, 1988.

- The company had no foreign exchange earnings and outgo during the year under report.

- Certificate received from the Auditors of the Company regarding Compliance of conditions of Corporate Governance, as required under clause 49 VII of the Listing Agreement, is annexed and forms part of this report.

- As required under 49 IV F of the Listing Agreement, Management Discussion and Analysis Report is annexed and forms part of this report.

DIRECTOR''S RESPONSIBILITY STATEMENT

Pursuant to provisions of section 217 (2AA) of the Companies Act, 1956, your Directors confirm that

- in the preparation of the Annual Accounts fix the year ended 30th June, 2011 the application according standards has been for Board along with proper explanation relating to material departures;

- the Directors have selected such accounting provides and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fm view of the stale of affairs of the Company at the end of the funerals year and the loss of the company for the year under review;

- the Directors have taken proper and sufficient care for the maintenance err adequate accounting records in accordance with the provisions of the Companies Act,195G for safeguarding the assets of the Company and for preventing, and detecting fraud and other irregularities; and

- the Directors have prepared the annual accounts on a going concern basis.

EMPLOYEE RELATIONS:

During the year under review, the relations between the Management and the workmen were conical.

INVESTOR RELATIONS:

Your Company always endeavors to keep the time of response to Shareholders'' requests/ grievance at the mime. Priority is accorded to addressable the slues raised by the Shareholders and provide them a satisfactory reply at the eeriest possible time. The Shareholders'' Grievance Committee of the Board meets period focally and reviews the status of the redressed of Shareholders: Grievances. The Shares of the Company continue to be traded in Electronic Form and the De- matinees arrangement exists with both the depositories, viz.. National Depository Limited and Central Depository Services (India) Limited..

ACKNOWLEDGEMENT:

Your Directors wish to place on record the sincere and dedicated efforts of all the members of the Company''s tram which has throughout the year remained active. Your Directors also take this opportunity to offer their sincere thanks to Financial Institutions, Banks, other Government Amends, our valued customers and the investors for their continued support and assistance. The employees of your Company continued to display their unstinted devotion, co-operation. Your Directors take this opportunely to record their appreciation for the same. Your Detectors also express their profound thanks to the Shareholders for their faith and continued support to the endeavors of the Company.

By order of the Board

For Eastern Sugar & Industries Ltd

Place : Kolkata (B. K. Nopany)

Dated : 26* August, 2011 Chairman

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Jun 30, 2010

The Directors have pleasure in presenting the Annual Report and the Audited Accounts of the Company for the financial year ended 30th June, 2010:

FINANCIAL RESULTS: (Rs. in lacs)

2009-10 2008-09

Sales & Other Income 1533.29 1826.51

Profit/(Loss) before Interest, Depreciation and Tax 619.47 818.58

Less: Interest 166.47 166.04

Depreciation 3.13 3.13

Profit/(Loss) before tax 449.87 649.41

Less: Provisions for Fringe Benefit Tax 0.00 0.17

Profit/( Loss) after tax 449.87 649.24

Add/Less: Balance brought forward from previous year 327.21 186.29

Profit available for appropriation 777.08 835.53

APPROPRIATIONS

Transfer to General Reserve 0.00 508.32

Balance (Loss) carried to Balance Sheet 777.08 327.21

PERFORMANCE:

The Company during the year registered total income of Rs. 1533.29 lacs, compared to Rs. 1826.51 lacs during the previous Financial Year 2008-09. Net profit stood at Rs. 449.87 lacs as against Rs. 649.24 lacs during last fiscal, mainly on account of lower sales volume and other income. As informed in the previous report, the company has already started earning Block Usage Charges, as other income during the year mainly include Fixed Assets Usages charges to the extent of Rs. 607.99 lacs. Your Directors are confident to significantly improve the performance of the Company in the coming year by exploring new business activities and better financial management.

DIVIDEND:

Considering funds required for future programme for growth of the Company and also for strengthening the financial positions of the Company, your Directors do not recommend any dividend for the year.

DIRECTORS:

Mr. B. K. Nopany retire at the conclusion of ensuing Annual General Meeting and being eligible offer himself for re-appointment.

AUDITORS:

The Auditors of the company M/s Vivek Jaiswal & Co., Chartered Accountants, hold office until the conclusion of the ensuing Annual General Meeting and are recommended for re-appointment. Certificate from Auditors has been received to the effect that their appointment, if made, would be within the limit prescribed under section 224(1 B) of the Companies Act, 1956.

Notes forming part of accounts, which are specifically referred to by the Auditors in their report, are self explanatory and, therefore, do not call for any further comments.

FIXED DEPOSITS:

During the year under review, the Company has not accepted public deposits under section 58-A of the Companies Act, 1956. /

DE-MATERIALISATION OF SHARES:

The Company's equity shares are available for de-materialization on both the depositories, viz., NSDL & CDSL. Shareholders may be aware that SEBI has made trading in your Company's shares mandatory, in de-materialized form. As on 30th June, 2010, 7815600 equity shares representing 65.13% of your Company's Equity Share Capital have been de-materialised.

LISTING AT STOCK EXCHANGE:

The Shares of the Company are listed on Bombay Stock Exchange, Mumbai and National Stock Exchange of India Ltd.. The Company has paid annual listing fee to the Bombay Stock Exchange for the year 2010-11. The shares at National Stock Exchange are still suspended for trading and efforts are being put for revocation of the suspension.

STATUTORY INFORMATION:

- There are no employees covered by the provisions of Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975.

- During the year under review, the Company has not carried out any manufacturing activity. Therefore, there are no particulars to be disclosed as per the Companies (Disclosures of Particulars in the Report of the Board of Directors) rules, 1988.

- The company had no foreign exchange earning and outgo during the year under report.

Certificate received from the Auditors of the Company regarding Compliance of conditions of Corporate Governance, as required under clause 49 VII of the Listing Agreement, is annexed and forms part of this report.

As required under 49 IV F of the Listing Agreement, Management Discussion and Analysis Report is annexed and forms part of this report.

DIRECTOR'S RESPONSIBILITY STATEMENT

Pursuant to provisions of section 217 (2AA) of the Companies Act, 1956, your Directors confirm that:

- in the preparation of the Annual Accounts for the year ended 30th June, 2010, the applicable accounting standards had been followed, along with proper explanation relating to material departures;

- the Directors have selected such accounting policies and applied them consistently and made judgements 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 financials year and the loss of the company for the year under review;

- the Directors 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

- the Directors have prepared the annual accounts on a going concern basis.

EMPLOYEE RELATIONS:

During the year under review, the relations between the Management and the workmen were highly cordial.

INVESTOR RELATIONS:

Your Company always endeavours to keep the time of response to Shareholders' requests/grievance at the minimum. Priority is accorded to address all the issues raised by the Shareholders and provide them a satisfactory reply at the earliest possible time. The Shareholders' Grievance Committee of the Board meets periodically and reviews the status of the redressal of Shareholders' Grievances. The Shares of the Company continue to be traded in Electronic Form and the De-materialization arrangement exists with both the depositories, viz., National Securities Depository Limited and Central Depository Services (India) Limited.

ACKNOWLEDGEMENT:

Yours Directors wish to place on record the sincere and dedicated efforts of all the members of the Company's team which has throughout the year remained active. Your Directors also take this opportunity to offer their sincere thanks to Financial Institutions, Banks, other Government Agencies, our valued customers and the investors for their continued support and assistance. The employees of your Company continued to display their unstinted devotion, co-operation. Your Directors take this opportunity to record their appreciation for the same. Your Directors also express their profound thanks to the Shareholders for their faith and continued support to the endeavours of the Company.

By order of the Board

for EASTERN SUGAR & INDUSTRIES LIMITED

Place : Kolkata (B.K. NOPANY)

Date : 12th November, 2010 Chairman