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Directors Report of Jeypore Sugar Company Ltd.

Mar 31, 2015

Dear Members ,

The Directors have pleasure in presenting their 79th Annual Report on the business and operations of the Company and the accounts for the Financial Year ended March, 31, 2015.

1. Performance Summary of the company

Rs. Rs.

Profit before interest, depreciation 24,91,41,871 And extraordinary items

Less : Interest 33,50,74,024

Depreciation 6,32,66,385 39,83,40,409

Loss before tax 14,91,98,538

ADD : Deferred tax (Credit) 98,33,073

Loss after tax 13,93,65,465

ADD: Balance of Loss brought forward from last year 11,35,77,592

Balance Loss taken to Balance sheet 25,29,43,057

2. Dividend

In the absence of Profit the directors have not declared any dividend for the year 2014-15.

3. Reserves

The paid up capital at the end of the year stood at Rs.4,53,45,280/- and Reserves at Rs.36,26,47,572/- as against Rs.4,53,45,280/- and Rs.50,87,07,793/- respectively at the beginning of the period.

4. Review of Operations

Sugar 2014-2015 2013-2014

a) Unit: Chagallu 06-12-2014 to 23-02-2015 06-12-2013 to 07-03-2014

Duration

b) No of days 70 92

c) Cane crushed
d) Sugar Produced (Qtls) 3,77,970 5,53,500

e) Recovery (%) 9.42 10.19

f) Turnover (Rs in Lakhs) 13,102 14,334

The Distilleries at Chagallu operated at near optimum level of capacity and we expect performance to improve in the coming year.

CO-GENERATION:

The Co-generation project has worked continuously and successfully during the season and generated 14,889 MW of power.

5. Safety and Pollution Control

Safety committee is formed and safety is improved considerably. Deputing safety committee members to attend safety seminars and sharing the same among all the people. Proposing to arrange safety classes inside the factory to avoid accidents, hazards and other unwanted incidents.

6. Air and Water Pollution

In both air and water all the norms as stipulated by Pollution Control Board have been achieved. BOD & COD levels of our effluent are much below the prescribed norms. Similarly the air emissions are maintained within the stipulated standards.

7. Management and Discussion Analysis

COMPANY'S PERFORMANCE

The performance of the company during the year under review was greatly affected by the continued inadequate supply of cane. This has resulted in a substantial reduction in the operation of the sugar unit and the company was able to crush 3,97,231 tonnes of cane only against 5,43,840 tonnes in the previous year. The recovery also registered a downward trend. Further the market for the sugar also was volatile with the prices ruling uncertain and the realization was also seriously affected. The reduced operations of the sugar unit affected the Distillery units and the Co-generation unit also. These units consequently reported lower turnover. This had a telling effect on the revenue and financial performance of the company during the year.

INDUSTRY OUT LOOk

The performance of Sugar Industry all over the world was good during the sugar season, however the performance in India was bad which was mainly due to excess production. During the year under review, the industry registered record output of sugar which has resulted in the sugar prices tumbling down. It is expected that this trend will continue in the coming season also, ie: 2015-16. Unless some good remunerative prices for sugar is ensured, the sugar mills may not be able to sustain their operations in a reasonable way and to carry on the business. The Government should come up with more sops and corrective measures to ensure the proper working of the sugar mills, e.g by creating a buffer stock to meet any eventuality of reduced production as done in previous years.

8. Change in the nature of business, if any During the year under review, there is no change in the nature of business.

9. Material changes and commitments, if any, affecting the financial position of the company which have occurred between the end of the financial year of the company to which the financial statements relate and the date of the report No significant material changes have happened subsequent to the Balance Sheet date.

10. Details of significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company's operation in future No significant and material orders passed by the regulators impacting the going concern status and company's operation in future.

11. Details in respect of adequacy of internal financial controls with reference to the Financial Statements The company has got an inbuilt arrangement which ensures proper financial controls in the activities of purchase, sales and accounting transactions. The purchase and sales are monitored by systematic enquiries, proper pricing and secured by regular purchase or sale orders covering all aspects of purchase and sale. The financial transactions are done under proper documentation, authentication and approved by management. All the key departments have been equipped with personnel having experience and knowledge to handle the affairs. The company has in place adequate system of internal controls which covers financial propriety, statutory compliances and safeguarding the assets of the company. During the year these controls were tested and no material weakness in the design were observed.

12. Details of Subsidiary/Joint Ventures/Associate Companies The company does not have any subsidiary, Joint Venture or Associate Companies.

13. Performance and financial position of each of the subsidiaries, associates and joint venture companies included in the consolidated financial statement The financial statements of the company are on stand alone basis as there are no subsidiaries or associate or Joint Venture Companies.

14. Deposits

a) Deposits accepted during the year from Directors - Rs 4,11,00,000 From Inter corporate – Rs 10,00,000

b) There are no deposits unpaid or unclaimed during the year.

c) There is no default in repayment of deposits or payment of interest during the year.

15. Statutory Auditors

The existing auditors of the company M/s.Brahmayya & Co, Chartered Accountants, Vijayawada retire at the conclusion of the forthcoming Annual General Meeting and being eligible offer themselves for re-appointment.

16. Cost Auditors

M/s. Aruna Prasad & C0, Cost Accountants in Chennai have been appointed as Cost Auditors of the Company

17. Secretarial Audit

In terms of Section 204 of the Companies Act, 2013 and the Rules there under, the Company appointed Mr. M.Damodaran, Company Secretary in Practice, for conducting Secretarial Audit of the Company. The Secretarial Audit Report given by Mr.M.Damodaran in Form MR-3 prescribed under the Companies Act, 2013 is annexed as part of this Board's Report (Annexure I). There is no qualification, observation or remark in the Secretarial Audit Report requiring explanation by the Board of Directors.

18. Auditors' Report

The Directors offer the following explanations with reference to the observation made by the auditors in their report. With regard to the valuation of assets at Pothavaram unit, the Management is in the process of demerging this unit into a separate company after obtaining the necessary approvals from the concerned authorities, the valuation of the assets and the necessary adjustments will be made in the accounts.

In respect of outstanding amount of Rs.1966.94 lakhs due to banks as overdue, the company has made arrangements to settle the same immediately.

19. Share Capital

A) Issue of equity shares with differential rights During the year the company has not issued any kind of rights equity shares.

B) Issue of sweat equity shares The company has not issued any sweat equity shares during the year.

C) Issue of employee stock options There is no scheme of Employee Stock option plan

D) Provision of money by company for purchase of its own shares by employees or by trustees for the benefit of employees There is no arrangement in the company to buy back its shares by its employees or trustees.

20. Extract of the Annual Return

MGT 9 is enclosed to this report. (Annexure II)

21. Conservation of Energy,

technology absorption and foreign exchange earnings and outgo

A) Conservation of Energy

Form A enclosed (Annexure III)

B) Technology absorption

Form B enclosed (Annexure IV)

C) Foreign exchange earnings and outgo During this year company had no transactions involving earnings and outgo in foreign exchange.

22. Corporate Social Responsibility (CSR)

The provisions of Corporate Social Responsibility are not applicable to the company this year.

23. Directors

A) Changes in Directors and key Managerial Personnel

Directors :

Smt.Rajeswary Ramakrishnan, Chairman and Managing Director is not seeking reappointment as Managing Director when her term of office expires on 2nd Sep 2015. She will continue as Non Executive Chairman of the company and will be the Chairman of the Board. Smt. Anita Prabhu, Executive Director has been proposed as Managing Director of the company for a period of 3 years from 3rd Sep, 2015 as decided by the Board on the recommendations of the nomination and remuneration committee on the terms and conditions set out in the notice.

key Managerial Personnel

Mr. P.S.Krishnamoorthy , General Manager Finance and Company Secretary has retired from the company on 30th June 2015 and his service has been extended till 31st July 2015 and Mr. R.Ashok has been appointed as Chief Financial Officer and Company Secretary with effect from 3rd July 2015. The Board appreciated the efforts of Mr P.S.Krishnamoorthy and wished him a peaceful retired life.

B) Declaration by an Independent Director(s) and re-appointment, if any

The declarations by the Independent Directors pursuant to Sub Section 6 of Section 149 of the Companies Act, 2013 have been received by the company

C) Formal Annual Evaluation

The Board evaluates the performance of Non Executive Directors and Independent Directors every year. All the non executive and independent directors are eminent personalities having wide experience in the field of business, industry and administration. Their presence of the Board is advantageous and fruitful in taking business decisions.

24. Number of meetings of the Board of Directors

Six meetings of the Board of Directors were held on the following dates:-

1) 30-05-2014

2) 18-06-2014

3) 14-08-2014

4) 15-09-2014

5) 12-11-2014

6) 11-02-2015

25. Audit Committee

The composition of the audit committee consists of the following directors :

Sri.R.Kannan, Chairman

Sri.K.Subramanian, Member

Sri.Boppana Ramalingeswara Rao, Member

Dr.S.R.K.Prasad, Member

Executive Director attends the audit committee meeting as invitee.

26. Nomination and Remuneration Committee

tNomination and remuneration committee deals with the appointment, reappointment, withdrawal of appointment of whole time directors / Key Managerial Personnel , which include terms of appointment, remuneration package in accordance with the provisions of the Companies Act and any other statutory provisions related thereto. The composition of the Committee is as follows :-

1. Sri. Boppanna Ramalingeswara Rao, Independent Non Executive Director – Chairman of the Committee

2. Sri. Muneswara Rao - Independent Non Executive Director – Member of the Committee

3. Sri. R.Kannan - Independent Non Executive Director – Member of the Committee

27. Particulars of loans, guarantees or investments under section 186

The company has given a corporate guarantee to M/s.ICICI Bank Ltd , in connection with the crop loans granted to the company's cane growers to the extent of Rs.60 Crores.

28. Particulars of contracts or arrangements with related parties

During the year there were no materially significant transactions that might have had potential confect with the interest of the Company.

29. Managerial Remuneration

Remuneration to whole time directors - Rs.80,64,000/-

Remuneration to other directors (Sitting fees) - Rs.12,00,000/-

30. Corporate Governance Certificate

Compliance of conditions of corporate governance as stipulated in Clause 49 of the Listing agreement is annexed with the report. (Annexure V)

31. Risk Management Policy

The Company has a risk management committee which formulates the risk management policy covering all risks the company faces such as legal, regulatory, financial, credit, market, IT, property etc. This policy is constantly reviewed and complied with.

32. Business Responsibility Report

Your company conducts its business in a fair manner and strongly believes in ethics, transparency and accountability. The company promotes the well being of its employees and respects the interests and is responsive to all the shareholders. The company provides customer value and strives to improve and add value to its consumer.

33. Directors' Responsibility Statement

The Directors Responsibility statement referred to in clause (c) of sub section (3) of section 134 of the Companies Act, 2013, shall confirm that

a) In the preparation of the annual accounts, the applicable accounting standards have been followed, along with proper explanation relating to material departures

b) The Directors 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 and loss of the company for that period.

c) The directors had 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

d) The directors had prepared the annual accounts on a going concern basis and

e) The directors, had laid down proper internal financial controls which are adequate and operating effectively.

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

g) There are no employees covered under Section 134 of the Companies Act, 2013.

34. Listing of Stock Exchanges

Your Company's shares are listed on the Madras Stock Exchange Ltd., The Company has made an application to Bombay Stock Exchange Ltd. to get the shares listed since Madras Stock exchange Ltd. has moved the shares of the company to the Dissemination Board of National Stock Exchange of India Limited and have advised all companies listed under MSE to approach other stock exchanges to get their shares listed. However a reply from Bombay Stock exchange Ltd. is awaited. The listing agreement with Bombay Stock exchange is yet to be signed and hence trading of shares is suspended till a confirmation is received. The company has paid the fee to Madras Stock exchange Ltd. to place the shares in the dissemination Board of NSEIL. The DEMAT ISIN No. of the Company is INEI80E01014.

35. Acknowledgement

The Directors wish to place on record their appreciation and thank Company's Bankers, Financial Institutions and various departments of Central and State Governments and the share holders for the valuable support received from them. The Board also places on record their appreciation for the co-operation being extended by the cane growers in Chagallu to increase the sugarcane supply to the factory which met the requirements of the expanded capacity. The Directors also wish to place on record the valuable effort put in by all the employees and the cooperation extended by them.

(By Order of the Board for THE JEYPORE SUGAR COMPANY LIMITED (Sd.) RAJESWARY RAMAkRISHNAN Place: Chennai Chairman cum Managing Director

Date : 07-06-2015 (DIN: 01385665)


Mar 31, 2014

Dear members,

1. The Directors have pleasure in presenting their report for the year ended 31st March, 2014, together with the Balance Sheet as at 31st March, 2014 and the Profit & Loss Account for the year ended on that date.

Rs. Rs.

2 PROFIT & LOSS APPROPRIATIONS

Profit before Interest, Depreciation 8,03,82,210 And extraordinary items

Less: Interest 25,41,24,111 Depreciation 10,68,35,765 36,09,59,876

Loss before tax 28,05,77,666

Add : Deffered tax (Credit) 9,14,29,487

Loss after Tax 18,91,48,179

Add:

Balance of profit brought 7,55,70,587 forward From Last year

Balance Loss taken to Balance sheet 11,35,77,592

3. CAPITAL & RESERVES

The paid up capital at the end of the year stood at Rs.4,53,45,280/- and Reserves at Rs. 50,87,07,793/- as against Rs.4,53,45,280/-and Rs.69,78,55,972/-respectively at the beginning of the Period.

4. FIXED DEPOSITS

As on 31st March, 2014, the deposits remaining unpaid of Rs.1,28,000/-. Subsequently it was paid in the month of April''2014

5. MANAGEMENT AND DISCUSSION ANALYSIS

In view of the latest developments in the sugar market, Sugar Industry is hoping for a better return on the produce during the year 20142015. The Government have also realized the seriousness of the problem due to the failure of their earlier policies of controlling the sugar price, which consequently created cash flow problems and losses to the Sugar Industry. The price of cane has gone up in the last 3 / 4 years itself by Rs.700/- to Rs.800/- per ton whereas the sugar price was stagnating at Rs.2700/- to Rs.3000/- per quintal. From next year onwards, the prospects of getting bumper crop of sugar cane are very remote in view of the competition from hybrid maize, paddy, palm oil and other competitive commercial crops. Secondly for the last several years the international sugar market also was depressed because of over production. The sugar industry is cautiously optimistic regarding the sugarcane production and prospects for the next two to three years.

NEW SUGAR UNIT AT POTHAVARAM

The unit is complete in all respects, however it could not be made fully operational due to the non availability of the cane

VVS SUGARS, CHAGALLU

Our Company - The Jeypore Sugar Co Ltd., with its two units has the largest crushing capacity in Andhra Pradesh State. In the present globalised context the size of the factory is most important, but the capacity in being under utilized due to competition from cash crops like maize, tobacco, paddy which give a profitable return in a shorter time. Besides it is having sizable co-gen facility and distillation facilities.

6. REVIEW OF OPERATION

Sugar 2013-2014 2012-2013

a) Unit: Chagallu 06-12-2013 to 20-11-2012 to 07-03-2014 21-02-2013

Duration

b) No of days 92 94

c) Cane crushed 5,43,840 5,65,820 (Tons)

d) Sugar Produced 5,53,500 5,60,700 (Qtls)

e) Recovery (%) 10.19 9.90

FINANCIAL YEAR

1) Duration 06-12-2013 to 20-11-2012 to 07-03-2014 21-02-2013

2) No of days 92 94

3) Cane crushed 5,43,840 5,65,820 (Tons)

4) Sugar Produced 5,53,500 5,60,700 (Qtls)

5) Recovery (%) 10.19 9.90

6) Turnover 14,334 14,176 (Rs in lakhs)

DISTILLERY DIVISION, CHAGALLU AND JANGAREDDYGUDEM

Both the Distilleries at Chagallu and Jangareddigudem operated at near optimum level of capacity. The capacity of utilization of Jangareddigudem Distillery has been enhanced during the year under review and the benefit of higher capacity will be reaped in the coming years.

We purchased molasses from the market to keep both the Distilleries to operating continuously. We expect the distilleries to perform better this year as the demand for Ethanol and Rectified Spirit is encouraging. We have entered into agreement with Oil companies for supplying Ethanol which is used for blending with petrol.

CO-GENERATION:

The Co-generation project has worked continuously and successfully during the season and generated 21255 MW of power.

7. CONSERVATION OF ENERGY

Form A (Rule 2) enclosed.

8. SAFETY & POLLUTION CONTROL

SAFETY:

Safety committee is formed and safety is improved considerably. Deputing safety committee members to attend safety seminars and sharing the same among all the people. Proposing to arrange safety classes inside the factory to avoid accidents, hazards and other unwanted incidents.

Air & Water Pollution:

In both air and water all the norms as stipulated by Pollution Control Board have been achieved. BOD & COD levels of our effluent are much below the prescribed norms. Similarly the air emissions are maintained within the stipulated standards

9. DIRECTORS

The following Directors retire at the conclusion of the Annual General Meeting and being eligible, offer themselves for re-election.

1. R. Prabhu

2. Dr.S.R.K.Prasad

Mrs.M.A.Vedavalli has resigned from the Board due to continuous ill health. The Board places on record its appreciation the valuable service and guidance given to the Company, by Mrs.M.A.Vedavalli who has served as an Independent Director for the last 22 years.

10. SUBSIDIARY COMPANY

The name of the company has been struck from the Registrar of Companies maintained by ROC under Section 560 of the Companies Act, 1956 with effect from 18.3.2014 and the Company ceased to operate from that date.

11. MANAGEMENT STAFF

Mr.Vikram Prabhu, M.Sc, (LSC UK), has been appointed as the President of the Company, effective from 10th February 2014. He will be in charge of the general management and administration of the Company.

Information as required under section 217 (2A) of the Companies Act, 1956 read with the relevant rules thereunder, in respect of particulars of Employees, is given in a separate annexure to this Board of Directors Report.

12. STAFF RELATIONS

The relationship with the staff and workers continued to be cordial during the year. The Directors wish to place on record their appreciation of the valuable work done and co-operation extended by them at all levels.

13. AUDITORS

a) M/s.Brahmayya & Co, Chartered Accountants, Vijayawada retire at the conclusion of the forthcoming Annual General Meeting and being eligible, offer themselves for re-appointment.

b) Aruna Prasad , Cost Accountants, Chennai has been appointed as Statutory Cost Auditor for the sugar unit of the Company

14. AUDITORS OBSERVATION

The Directors offer the following explanations with reference to the observations made by the auditors in their report.

With regard to the Demerger, the company has submitted the application to the Madras Stock Exchange for necessary approval. Along with this approval the demerger petition is to be filed in the court shortly. The company is expected to get the approval within three months of filing the petition.

With regard to the valuation of assets at Pothavaram unit, the Company is in the process of reviewing the carrying amount of assets and will obtain the Valuation Report at Pothavaram.

In respect of outstanding amount of Rs.2483.47 lakhs due to banks as overdue, the company has made arrangements to settle the same immediately.

Regarding the utilization of short term funds for long term purposes over a period of time the same had to be resorted to in view of the business exigencies and circumstances. The company has taken note of the same.

Internal audit will be implemented at Rayagada units.

15. DIRECTORS'' RESPONSIBILITY STATEMENT

With regard to the over dues to the Banks, due to the reduced operations during the year the company had liquidity problem and hence there was delay in effecting the payments. The company is taking steps to settle the over dues.

As required under Section 217 (2AA) of the Companies Act, 1956, the Directors confirm that

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

b) 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 of the profit or loss of the company for that year ;

c) 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

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

16. CORPORATE GOVERNANCE

The Corporate Governance and Management Discussion and analysis Reports form an integral part of this Report and are set out as separate to this Report. The Certificate from the Auditors of the Company certifying compliance of the Listing Agreement with Madras Stock Exchange Ltd is also annexed to the Report on Corporate Governance.

17. LISTING OF STOCK EXCHANGES

Your Company''s shares are listed on the Madras Stock Exchange Ltd., and the annual listing fees for the financial year 2014-2015 was paid. The Company shares are traded in Bombay Stock Exchange Ltd through Indo next Segment Platform.

18. DEMAT ISIN NUMBER INEI80E01014

19. ACKNOWLEDGEMENT

The Directors wish to place on record their appreciation and thank the Company''s Bankers, Financial Institutions and various departments of Central and State Governments and the shareholders for the valuable support received from them. The Board also places on record their appreciation for the co-operation being extended by the cane growers in the Chagallu area to increase the sugarcane supply to the factory to meet the requirements of the expanded capacity.

(By Order of the Board) for THE JEYPORE SUGAR COMPANY LIMITED

(Sd.) RAJESWARY RAMAKRISHNAN Chairman cum Managing Director Place: Chennai Date: 18-06-2014


Mar 31, 2013

1. The Directors have pleasure in presenting their report for the 6 months period ended 31st March, 2013, together with the Balance Sheet as at 31st March, 2013 and the Profit & Loss Account for the period ended on that date.

2. PROFIT & LOSS APPROPRIATIONS

Rs. Rs.

Profit before interest, Depreciation 26,58,28,746 And extraordinary items

Less: Interest 12,39,35,482

Depreciation 5,05,66,632 17,45,02,114

Profit before tax 9,13,26,632

Add :

Deffered tax (Credit) 9,56,700

9,22,83,332

Less: Provision for Current Tax 3,75,00,000

Profit after Tax 5,47,83,332

Add:

Balance of profit brought forward From Last year 2,07,87,255

Balance Surplus taken to Balance sheet 7,55,70,587

3. CAPITAL & RESERVES

The paid up capital at the end of the Period stood at Rs.4,53,45,280/- and Reserves at Rs.69,78,55,972/- as against Rs.4,53,45,280/- and 64,30,72,640/-respectively at the beginning of the Period.

4. FIXED DEPOSITS As on 31st March, 2013, the deposits remaining unclaimed of Rs.4,46,000/-.

Out of this Rs.2,46,000/- is paid and Rs.2,00,000/- is still pending for renewal repayment.

5. MANAGEMENT AND DISCUSSION ANALYSIS

Recently Government of India has partially decontrolled sugar i.e. removal of levy quota and abolition of monthly releases. This will partially help the Sugar Sector to recover but still there are strict State controls on the sugarcane price and the zonal restrictions. If the State Government also follows in removal of controls, then the cyclical nature of sugarcane and sugar production will be brought under control and follow supply and demand situation. This partial decontrol is in pressures on sugar price as the sugar mills are more sugar to meet the cane price payments in short term. But ultimately we hope it will settle down at a reasonable level.

In this connection, ICRA has studied and has come to a conclusion that a marginal increase of Rs.1,000/- to Rs.2,000/- per M.T. in price of sugar may be expected from second half of 2013. But there is an expectation of reduced cane plantations which will help the sugar industry to get remunerative price in the market provided the imports are controlled by the Govt. of India. At present the imports will attract only 10% duty. If the duty is not increased to a reasonable level of 30%, Indian Sugar Industry may not be able to face the competition because of international sugar surplus situation.

Now coming to the picture of international sugar production, the white sugar prices are under great pressure and declining from year to year for the last three years. The white sugar is currently ruling around 500 dollars whereas earlier it was above 600 dollars. Raw sugar prices are also coming down very fast and now currently are very close to 16 cents per pound compared to earlier 20 cents per pound. The international traders will try to dump their sugar in Indian market if Govt. of India does not impose a reasonable import duty to protect indegenous industry. For the next few years atleast sugar surplus situation will prevail in the international market.

Now coming to the Indian market, the sugar price tend is being determined by three factors i.e. domestic sugar balance, international crude oil prices and raw sugar rates. Basically Brazil, the World''s largest producer and exporter of sugar control the world market by increasing or decreasing the production of Ethanol vis-a-vis sugar. The price of bagasse and molasses also affect the health of the sugar industry to some extent. ICRA observes that total revenue and profits of sugar mills from bi-products will play very significant role in the well being of the sugar industry.

Finally, though the sugar industry is benefited by the partial decontrol, full decontrol has to be implemented for the survival of the sugar sector. The sugar industry directly supports 5 crores of cane growers and their families and indirectly benefits another 25 crores. It is the major contributor to the welfare of the rural economy being a rural based agro industry.

6. REVIEW OF OPERATIONS

NEW SUGAR UNIT AT POTHAVARAM

The unit is complete in all respects, however it could not be made fully operational due to the non availability of the cane

VVS SUGARS, CHAGALLU

Our Company - The Jeypore Sugar Co Ltd., with its two units has the largest crushing capacity in A.P. In the present globalised context the size of the factory is most important, but the capacity in being under utilized due to competition from cash crops like maize, tobacco, paddy which give a profitable return in a shorter time. Besides it is having sizable co-gen facility and distillation facilities.

A.SUGAR SEASON

Sugar 2012-2013 2011-2012

Unit: Chagallu

a) Duration 20-11-2012 to 28-11-2011 to 21-02-2013 23-03-2012

b) No of days 94 116

c) Cane crushed (Tons) 5,65,820 7,79,068

d) Sugar Produced (Qtls) 5,60,700 8,28,810

e) Recovery (%) 9.90 10.53

B.FINANCIAL YEAR

1) Duration 20-11-2012 to 28-11.2011 to 21-02-2013 23-03-2012

2) No of days 94 116

3) Cane crushed (Tons) 5,65,820 7,79,068

4) Sugar Produced (Qtls) 5,60,700 8,28,810

5) Recovery (%) 9.90 10.53

6) Turnover (Rs. In Lakhs) 14,176.94 38,949.06

DISTILLERY DIVISION, CHAGALLU AND JANGAREDDYGUDEM

Both the Distilleries at Chagallu and Jangareddigudem operated at near optimum level of capacity. The capacity of utilization of Jangareddigudem Distillery has been enhanced during the year under review and the benefit of higher capacity will be reaped in the coming years.

We had purchased molasses from the market to keep both the Distilleries to operating continuously. We expect the distilleries to perform better this year as the demand for Ethanol and RS is encouraging.

CO-GENERATION

The Co-generation project has worked continuously and successfully during the season and generated 20519 MW of power. We have offered to generate power using coal as raw material to A.P. Government. (who are very short of power and buying from other states). The Government is not willing to increase the price for the units generated by using coal. Since we will be losing we are keeping our generation capacity idle for almost six months.

7. CONSERVATION OF ENERGY

Form A (Rule 2) enclosed.

8. SAFETY & POLLUTION CONTROL SAFETY :

The Safety record has improved considerably by taking appropriate steps to reduce the accidents, hazards and other unwanted incidents

AIR & WATER POLLUTION :

In both air and water all the norms as stipulated by Pollution control Board have been achieved. BOD & COD levels of our effluent are much below the prescribed norms. Similarly the air emissions are maintained within the stipulated standards.

9. SUBSIDIARY COMPANY

a. Name of the Subsidiary

JEYPORE SUGAR FINANCE AND INVESTMENT CORPORATION LTD.,

b. Financial year Year ended 31-03-2013

c. Holding Company''s Interest 4,10,000 Equity Shares of Rs.10/- each (99.88 % of capital)

d. Net Amount of Profit /Loss

Net Profit for the current financial year is Rs.27,478/- and adding against the loss in profit & loss account of previous year of Rs.79,74,733/- the balance of loss comes to Rs.79,47,255/- is taken as deficit in profit and loss account.

e. Profit/Loss of subsidiary dealt with in Holding Company''s A/c

Nil

10. DIRECTORS The following Directors retire at the conclusion of the Annual General Meeting and being eligible, offer themselves for re-election.

1.Sri.R.Prabhu

2.Sri.R.Kannan

3.Sri.K.Muneswara Rao

11. MANAGEMENT STAFF

IInformation as required under section 217 (2A) of the Companies Act, 1956 read with the relevant rules thereunder, in respect of particulars of Employees, is given in a separate annexure to this Board of Directors Report.

12. STAFF RELATIONS

The relationship with the staff and workers continued to be cordial during the year. The Directors wish to place on record their appreciation of the valuable work done and co-operation extended by them at all levels.

13. AUDITORS

a) M/s.Brahmayya & Co, Chartered Accountants, Vijayawada retire at the conclusion of the forthcoming Annual General Meeting and being eligible, offer themselves for re-appointment.

b) Aruna Prasad , Cost Accountants, Chennai has been appointed as Statutory Cost Auditor for the sugar unit of the Company

14. AUDITORS OBSERVATION

The Directors offer the following explanations with reference to the observations made by the auditors in their report.

1) With regard to the demerger of Pothavaram Unit, the company has taken steps to file the necessary scheme of demerger and the petition in the High Court of Madras for necessary court approval. Further the transfer of assets on account of demerger is to be effected at the book value only, the question of short fall and the consequential provision does not arrive.

2) During the accounting period under review the internal audit could not be completed due to some internal rearrangement. The company has already taken steps for appointing for changing the new internal auditors for the current financial year onwards.

3) The remittance of Rs.2770/- in the unclaimed dividend account into Investors Protection Fund was not done due to the reconciliation of the account and the same will be remitted shortly.

4) With regard to the observations of the auditors in respect of amounts outstanding of Rs.88.91 lakhs due to the bank as overdue, the company has made arrangements to settle the same immediately.

5) As far as the observations of the auditors regarding the utilization of short term funds for long term purposes over a period of time the same had to be resorted to in view of the business exigencies and circumstances. The company has taken note of the same.

15. DIRECTORS'' RESPONSIBILITY STATEMENT

As required under Section 217 (2AA) of the Companies Act, 1956, the Directors confirm that.

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

b) 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 of the profit or loss of the company for that period ;

c) 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

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

16. CORPORATE GOVERANCE

The Corporate Governance and Management Discussion and analysis Reports form an integral part of this Report and are set out as separate to this Report. The Certificate from the Auditors of the Company certifying compliance of the Listing Agreement with Madras Stock Exchange Ltd is also annexed to the Report on Corporate Governance.

17. CONSOLIDATED FINANCIAL STATEMENT

Consolidated Financial statement has been prepared as required in AS21 and attached with Annual Report.

18. LISTING OF STOCK EXCHANGES

Your Company''s shares are listed on the Madras Stock Exchange Ltd., and the annual listing fees for the financial year 2013-2014 was paid. Indo next segment trading of shares in Bombay Stock Exchange Ltd.

19. DEMAT ISIN NUMBER

INEI80E01014

20. ACKNOWLEDGEMENT

The Directors wish to place on record their appreciation and thank the Company''s Bankers, Financial Institutions and various departments of Central and State Governments and the shareholders for the valuable support received from them. The Board also places on record their appreciation for the co-operation being extended by the cane growers in the Chagallu area to increase the sugarcane supply to the factory to meet the requirements of the expanded capacity.

(By Order of the Board)

for THE JEYPORE SUGAR CO.LTD.,

Place : Chennai (Sd.) RAJESWARY RAMAKRISHNAN

Date : 30.05.2013 Chairman cum Managing Director


Sep 30, 2012

1. The Directors have pleasure in presenting their report for the 18 months period ended 30th September, 2012, together with the Balance Sheet as at 30th September, 2012 and the Profit & Loss Account for the period ended on that date.

2. PROFIT & LOSS APPROPRIATIONS

Rs. Rs.

Profit before interest, Depreciation 65,04,73,598 And extraordinary items

Less: Interest 46,83,21,302

Depreciation 15,56,88,030 62,40,09,332

Profit before tax 2,64,64,266

Add: Mat Credit Entitlement 1,50,00,000

Deffered tax (Credit) 1,84,79,371

3,34,79,371

5,99,43,637

Less: Provision for Mat Tax 1,50,00,000

Profit after Tax 4,49,43,637

Add:

Balance of profit brought forward From Last year 90,18,971

5,39,62,608

Less: Appropriations

General Reserve 2,00,00,000

Provision for Dividend 1,13,36,320

Tax on Dividend 18,39,035 3,31,75,355

Balance Surplus taken to Balance sheet 2,07,87,253

3. CAPITAL & RESERVES

The paid up capital at the end of the year stood at Rs.4,53,45,280/- and Reserves at Rs.64,30,72,638/- as against Rs.4,53,45,280/- and 61,13,04,357/-respectively at the beginning of the year.

4. DIVIDEND

Your Directors recommend payment of dividend @ 25% for the 18 months period ended 30th September, 2012

5. FIXED DEPOSITS

As on 30th September, 2012, there was no Deposit remaining unclaimed .

6. MANAGEMENT AND DISCUSSION ANALYSIS

The Sugar Industry in India showed improvement in the working of the sugar mills in the season 2011-2012, but the overall situation has not improved much. The prediction in the Global and Indian sugar scenario is increased area of sugarcane cultivation resulting in higher sugar output, in the seasons to come. The development compared to the earlier years are only the quarterly release mechanism in the place of monthly release and allowing export of sugar without quantitative restrictions. The levy mechanism still continues. The uncertainty over the availability of sugarcane and also the increase in sugarcane prices are causing concern to the sugar mills. The Government should come out with a clear cut policy for the sugar industry, which will aim at reasonable sugarcane prices linked to the price of the finished product. Modern methods of farming, mechanization and better hi-breed inputs will help to reduce the cost of cultivation and also the cost of production of sugar to improve the profitability of the industry. A better policy from Government of India on Ethanol also will encourage the sugar mills to optimize the operations of the distilleries leading to increased revenue. The Co-generation units of the sugar mills also can play a lead role in meeting the energy requirements of the country the support of the local and Central Governments.

7. REVIEW OF OPERATION

NEW SUGAR UNIT AT POTHAVARAM

The unit is complete in all respects, however it could not be made fully operational due to the non availability of the cane

WS SUGARS, CHAGALLU

Our Company - The Jeypore Sugar Co Ltd., with its two units has the largest crushing capacity in A.P. In the present globalised context the size of the factory is most important, but the capacity in being under-utilised due to competition from cash crops like maize, tobacco, paddy which give a profitable return in a shorter time. Besides it is having sizable co-gen facility and distillation facilities.

A.SUGAR SEASON

Sugar 2011-2012 2010-2011

a) Unit: Chagallu 28-11-2011 to 23-11-2010 to 23-03-2012 12-04-2011

Duration

b) No of days 116 141

c) Cane crushed (Tons) 7,79,068 9,01,949

d) Sugar Produced (Qtls) 8,28,810 9,51,060

e) Recovery (%) 10.53 10.57

B.FINANCIAL YEAR

Sugar 2011-2012 2010-2011

1) Duration 28-11-2011 to 23-11.2010 to 23-03-2012 31-03-2011

2) No of days 116 129

3) Cane crushed (Tons) 7,79,068 8,63,170

4) Sugar Produced (Qtls) 8,28,810 9,03,540

5) Recovery (%) 10.53% 10.57%

6) Turnover (Rs in lakhs) 38,836 18,060

DISTILLERY DIVISION, CHAGALLU AND JANGAREDDYGUDEM

Both the Distilleries at Chagallu and Jangareddygudem operated at near optimum level of capacity.

We have procured molasses from the market to keep both the Distilleries to operate continuously. We expect the distilleries to perform better this year as the demand for Ethanol and RS is bright.

CO-GENERATION

The Co-generation project has worked continuously and successfully during the season and generated 31546 MW of power. We have offered to generate power using coal as raw material to A.P Government, (who are very short of power and buying from other states). The Government is not willing to increase the price for the units to be supplied, hence we are keeping our generation capacity idle for almost six months

8. CONSERVATION OF ENERGY

Form A (Rule 2) enclosed.

9. SAFETY & POLLUTION CONTROL

SAFETY:

The safety record has improved considerably by taking appropriate steps to reduce the accidents, hazards and other unwanted incidents.

Air & Water Pollution:

In both air and water all the norms as stipulated by Pollution Control Board have been achieved. BOD & COD levels of our effluent are much below the prescribed norms. Similarly the air emissions are maintained within the stipulated standards

10. SUBSIDIARY COMPANY

1. Name of the Subsidiary

JEYPORE SUGAR FINANCE AND INVESTMENT CORPORATION LTD.,

2. Financial year Year ended 31-03-2012

3. Holding Company''s Interest

4,10,000 Equity Shares of Rs.10/- each (99.88 % of capital)

4. Net Amount of Profit/Loss

Net Loss for the current financial year is Rs. 14,638/-. and adding against the loss in profit & loss account of previous year of Rs.86,57,995/- the balance of loss comes to Rs.86,72,633/- is taken as deficit in profit and loss account.

5. Profit/Loss of subsidiary dealt with in Holding Company''s A/c

Nil

11. DIRECTORS The following Directors retire at the conclusion of the Annual General Meeting and being eligible, offer themselves for re-election.

1 Dr.S.R.K.Prasad

2. Sri.Boppana Ramalingeswara Rao

3. Smt.M.A.Vedavalli

12. MANAGEMENT STAFF

Information as required under section 217 (2A) of the Companies Act, 1956 read with the relevant rules thereunder, in respect of particulars of Employees, is given in a separate annexure to this board of Directors report.

13 STAFF

RELATIONS

The relationship with the staff and workers continued to be cordial during the year. The Directors wish to place on record their appreciation of the valuable work done and co-operation extended by them at all levels.

14. AUDITORS

a) M/s.Brahmayya & Co, Chartered Accountants, Vijayawada'' retire at the conclusion of the forthcoming Annual General Meeting and being eligible, offer themselves for re-appointment.

b) Aruna Prasad , Cost Accountants, Chennai has been appointed as Statutory Cost Auditor for the sugar unit of the Company

15 AUDITORS OBSERVATION

The Directors offer the following explanations with reference to the observations made by the auditors in their report.

1) With regard to the observations of the auditors in respect of amounts outstanding of Rs.37.47 lakhs due to the bank as overdue, the company has made arrangements to settle the same immediately.

2) As far as the observations of the auditors regarding the utilization of short term funds for long term purposes over a period of time the same had to be resorted to in view of the business exigencies and circumstances. The company has taken note of the same.

16. DIRECTORS'' RESPONSIBILITY STATEMENT

As required under Section 217 (2AA) of the Companies Act, 1956, the Directors confirm that

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

b) 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 of the profit or loss of the company for that period ;

c) 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

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

17. CORPORATE GOVERNANCE

The Corporate Governance and Management Discussion and analysis Reports form an integral part of this Report and are set out as separate to this Report. The Certificate from the Auditors of the Company certifying compliance of the Listing Agreement with Madras Stock Exchange Ltd. is also annexed to the Report on Corporate Governance.

18. CONSOLIDATED FINANCIAL STATEMENT

Consolidated Financial statement has been prepared as required in AS21 and attached with Annual Report.

19. LISTING OF STOCK EXCHANGES

Your Company''s shares are listed on the Madras Stock Exchange Ltd., and the annual listing fees for the financial year 2012-2013 was paid. Indo next segment trading of shares in Bombay Stock Exchange Ltd.

20. DEMAT ISIN NUMBER

INEI80E01014

21. ACKNOWLEDGEMENT

The Directors wish to place on record their appreciation and thank the Company''s Bankers, Financial Institutions and various departments of Central and State Governments and the shareholders for the valuable support received from them. The Board also places on record their appreciation for the co-operation being extended by the cane growers in the Chagallu area to increase the sugarcane supply to the factory to meet the requirements of the expanded capacity.

(By Order of the Board)

for THE JEYPORE SUGAR CO.LTD.,

Place : Chennai (Sd.) RAJESWARY RAMAKRISHNAN

Date : 28.11.2012 Chairman cum Managing Director


Mar 31, 2011

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31st MARCH 2011

1.The Directors have pleasure in presenting their report for the year ended 31 st March, 2011, together with the Balance Sheet as at 31 st March, 2011 and the Profit & Loss Account for the year ended on that date.

2. PROFITS LOSS APPROPRIATIONS Rs. Rs.

Profit before interest, Depreciation

And extraordinary items - 24,47,39,316

Less: Interest 24,89,02,185 -

Depreciation 11,08,42,090 35,97,44,275

Loss before tax - 11,50,04,959

Less :

Excess Provision of Income Tax in earlier years 13,133 -

Deferred Tax (Credit) 2,24,70,218 2,24,83,351

Loss after tax - 9,25,21,608

Add: Balance of profit broughtforward from Last year - 10,15,40,581

Balance Surplus taken to Balance sheet - 90,18,973

3. CAPITAL & RESERVES

The paid up capital at the end of the year stood at Rs.4,53,45,280/- and Reserves at Rs.61,13,04,358/- as against Rs.4,53,45,280/- and 70,38,25,966/-respectively at the beginning of the year.

4. FIXED DEPOSITS

As on 31st March, 2011, there was no Deposit remaining unclaimed.

5. MANAGEMENT AND DISCUSSION ANALYSIS

Sugar Industry:

Though the Sugar supply situation is better compared to 2009-2010 year, the Government policy has not changed much. Instead of liberalizing the controls (like abolishing levy sugar percentage and the monthly allotments etc.), the same old policy is being followed. Besides the above set backs, the Government did not allow export of surplus sugar to the international market though the international price was much more attractive. Because of over supply, the local price has not improved during the current year.

During 2011-2012 season, the production of sugar is expected to be around the same quantum like this year but international market seems to be facing severe shortage. If the Govt, takes an early decision and allow export of surplus sugar as well as scrapping of the levy sugar quota and making sugar a free commodity, the sugar industry will benefit.

The basic problem is that the cane price is not remunerative to the grower compared to other crops. The cane price cannot be improved unless the sugar price is better. The Govt, is not realizing this basic fact. If it gives freedom to the industry, the Indian Sugar Industry will be in much better position as it can compete in the World market and get much better returns and consequently give more cane price to the cane grower, otherwise the future will be bleak. Decontrol of the sugar industry will be the best solution at this juncture.

NEW SUGAR UNIT AT POTHAVARAM

We are glad to inform the share holders that the company has commenced production of the 5000 TCD Plant at Pothavaram. The process was initiated on 24th March 2011 and the unit became fully operational in the first week of April 2011

VVS SUGARS, CHAGALLU

Our Company - The Jeypore Sugar Co Ltd., with its two units has the largest crushing capacity in A.P. In the present globalised context the size of the factory is most important. Besides it is having sizable co-gen facility and distillation facilities. Year after year, The jeypore Sugar Co Ltd., is crushing maximum quantity of sugarcane compared to other factories in A.P.

6.REVIEW OF OPERATION

A. SUGAR SEASON AT CHAGALLU

Sugar 2010-2011 2009-2010

a) Duration 23-11-2010 to 24-11-2009 to 12-04-2011 24-02-2010

b) No of days 141 93

c) Cane crushed (Tons) 9,01,949 5,93,380

d) Sugar Produced 9,51,060 6,15,700 (Qtls)

e) Recovery (%) 10.57 10.40

B. FINANCIAL YEAR

1) Duration 23-11-2010 24-11-2009 to to 31-03-2011 24-02-2010

2) No of days 129 93

3) Cane crushed (Tons) 8,63,170 5,93,380

4) Sugar Produced (Qtls) 9,03,540 6,15,700

5) Recovery (%) 10.57% 10.40%

6)Turnover(Rs. in lakhs) 18,060 22,332

DISTILLERY DIVISION. CHAGALLU AND JANGAREDDYGUDEM

The overall performance of the distillery units have registered satisfactory performance.

We have procured molasses from the market to keep both the Distilleries to operate continuously. We expect the distilleries to perform better this year as the demand for Ethanol and ENA is bright

CO-GENERATION

The Co-generation project has worked continuously and successfully during the season and generated 29250 MW of power.

7. CONSERVATION OF ENERGY: Form

A (Rule 2) enclosed.

8. A. AGRICULTURAL IN RATOON CROP

1. SINGLE BUD SEEDLINGS FOR DIRECT PLANTATION AND GAP FILLING IN RATOON CROP

Direct plantation with single bud seedlings was introduced . This helped to save the seed, labour and cost of cultivation. Direct plantation with single bud seedlings is being promoted in more areas.

For improving the yields in ratoon crop 26 lakhs single bud seedlings @2000 seedlings per acre were distributed. An yield improvement of 2-3 tonnes per acre is expected.

2. NEW SUGAR RICH VARIETIES UNDER PIPE LINE

Sugar rich varieties with good yields are being developed in our seed cane farm. The New varieties like2003V46, VSI434, 99A22,97A85 are being developed as seed material in our factory area. 84 varietal clones are received from SBI, Coimbatore and the yield aspects are being studied to know the suitability for propagation.

3. SEED VILLAGE PROGRAM FOR JUNE PLANTATION

Certified seed plantation of promising sugar rich varieties is being developed in our factory sufficient for 100 acres. This seed will be completely utilized for general crop plantation by state Government, which will provide subsidy of Rs.6,000/- per one acre of seed plantation.

4. MECHANISED CANE CULTIVATION

Implements like sub-soiler, rotavator, cane planter, mechanical harvester are introduced. The cane growers are getting acquainted to utilize the farm implements to overcome labour shortage problem and also to reduce the cost of cultivation in sugar cane

5. TECHNICAL UPGRADATION

Training programs with Sugarcane Research Station Scientists are conducted to update the knowledge of our agricultural staff and cane growers.

6. TECHNOLOGY IMPROVEMENT

1) As the labour problem is acute, it has been decided to introduce Lorry Tipplers to unload cane from lorries and Tractor Trailers directly in to the carrier

One Tippler was introduced already along with Auxiliary Carrier to unload about 1,800 - 2000 tonnes of cane per day this year. For the season 2011 -2012 another tippler will be commissioned. Both the tipplers will be able to unload 50% daily cane requirement of the factory.

By introducing the two tipplers, our man power requirement will be reduced in the cane yard by nearly 50% which will be an enormous saving financially. (Each tippler requires only 12 people per day of 3 shifts)

2) B&W boiler has been prepared for coal firing by introducing traveling grate. This will enable the unit to generate power during off season also which can be exported to the Grid, provided the necessary permissions are given by the Govt, of A.P

B. SAFETY & POLLUTION CONTROL

The safety record is being improved by constant vigilance and taking appropriate steps to reduce

(a) Air Pollution

All the norms as stipulated by AP.Pollution Control Board have been achieved and the factory has run absolutely CLEAN Emissions. A.P. Pollution Control Board was keeping track of the emissions and are highly satisfied with the results.

(b) Water Pollution

Since introduction of U.A.S.B, the BOD and COD levels of effluents are completely brought down below the prescribed norms, besides the factory has achieved the Zero discharge level as the entire effluent is being used for ferti irrigation. As there is no out going effluent, the A.P.Pollution. Control Board is satisfied.

9. SUBSIDIARY COMPANY

1. Name of the Subsidiary JEYPORE SUGAR FINANCE AND INVESTMENT CORPN. LTD.,

2. Financial year Year ended 31-3-2011

3. Holding Company's 4,10,000 Equity Shares of Rs. 10/- Interest each (99.88% of capital)

4. Net Amount of Net Profit for the current financial Profit /Loss year is Rs.85,862/- and adding against the loss in profit & loss account of previous year of Rs.87,20,957/- the balance of loss comes to Rs.86,57,995 /- is taken as deficit in profit and loss account.

5. Profit/Loss of Nil subsidiary dealt with in Holding Company's A/c

10. DIRECTORS

The following Directors retire at the conclusion of the Annual General Meeting and being eligible, offer themselves for re-election.

I.Sri.R.Prabhu 2.Sri.K.Subramanian 3.Sri.K.Muneswara Rao

11. MANAGEMENT STAFF

Information as required under section 217 (2A) of the Companies Act, 1956 read with the relevant rules thereunder, in respect of particulars of Employees, is given hereunder:

i) Name & Mrs.Rajeswary Ramakrishnan, Managing Director Designation

Qualifications B.A., : 49 Years & Experience

Date of 3-9-1967. Employment

Age 83 years

Remuneration Gross Salary Rs. 45,46,667

P.F Rs. 5,45,600

Rs. 50,92,267

Particulars of Previous Managing Director Employement R.S.Industrial Corporation (P) Ltd.,

12. STAFF RELATIONS

The relationship with the staff and workers continued to be cordial during the year. The Directors wish to place on record their appreciation of the valuable work done and co-operation extended by them at all levels.

13. AUDITORS

a) M/s.Brahmayya & Co, Chartered Accountants, Vijayawada retire at the conclusion of the forthcoming Annual General Meeting and being eligible, offer themselves for re-appointment.

b) Aruna Prasad, Cost Accountants, Chennai has been appointed as Statutory Cost Auditor for the sugar unit of the Company

14. AUDITORS OBSERVATION

The Directors offer the following explanations with reference to the observations made by the auditors in their report.

1. The Company is in the process of completing and updating its fixed assets at Rayagada units.

15. DIRECTORS' RESPONSIBILITY STATEMENT

As required under Section 217 (2AA) of the Companies Act, 1956, the Directors confirm that

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

b) 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 of the profit or loss of the company for that period;

c) 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

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

16. CORPORATE GOVERNANCE

The Corporate Governance and Management Discussion and analysis Reports form an integral part of this Report and are set out as separate to this Report. The Certificate from the Auditors of the Company certifying compliance of the Listing Agreement with Stock Exchange is also annexed to the Report on Corporate Governance.

17. CONSOLIDATED FINANCIAL STATEMENT

Consolidated Financial statement has been prepared as required in AS21 and attached with Annual Report.

18. LISTING OF STOCK EXCHANGES

Your Company's shares are listed on the Madras Stock Exchange Ltd., and the annual listing fees for the financial year 2011-2012 has been paid. Indo next segment trading of shares in Bombay Stock Exchange Ltd.

19. DEMAT ISIN NUMBER

INEI80E01014

20. ACKNOWLEDGEMENT

The Directors wish to place on record their appreciation and thank the Company's Bankers, Financial Institutions and various departments of Central and State Governments and the shareholders for the valuable support received from them. The Board also places on record their appreciation for the co- operation being extended by the cane growers in the Chagallu area to increase the sugarcane supply to the factory to meet the requirements of the expanded capacity.

(By Order of the Board) for THE JEYPORE SUGAR CO.LTD., (Sd.) RAJESWARY RAMAKRISHNAN Chairman cum Managing Director

Place: Chennai Date : 31.05.2011


Mar 31, 2010

1. The Directors have the pleasure of presenting the Seventy Fourth Annual Report and the audited statement of accounts of the Company for the year ended 31 st March,2010.

2. PROFIT & LOSS APPROPRIATIONS

Rs. Rs. Profit before interest, Depreciation 61,88,02,752 and extraordinary items Less: Interest 23,33,44,180 Depreciation 11,09,28,885 34,42,73,065 Profit before tax 27,45,29,687 Add: Deferred Tax (Credit) 79,62,520 28,24,92,207 Less: Provision-Current Tax 9,00,00,000 Profit after Tax 19,24,92,207 Add: Balance of Profit brought forward from last year 3,54,86,656 Profit for Appropriations 22,79,78,863 Less: Appropriations: General Reserve 10,00,00,000 Provision for Dividend 2,26,72,640 Provision tax on Dividend 37,65,642 12,64,38,282 Balance Surplus taken to Balance sheet 10,15,40,581

3. DIVIDEND

Your Directors recommend payment of dividend of 50% for the year ended 31st March, 2010, subject to the approval of the Banks.

4. CAPITAL & RESERVES

The paid up Capital at the end of the year stood at Rs.4,53,45,280/- and Reserves at Rs.70,38,25,966/- as against Rs.4,53,45,280/- and Rs.53,77,72,041/-

5. FIXED DEPOSITS

As on 31 * March, 2010 there were 3 Deposit matured and remaining unclaimed amounting to Rs.75,000/-

6. MANAGEMENT AND DISCUSSION ANALYSIS

Sugar Industry:

The Sugar Industry after a year of deficit in sugar production is heading for a year of plenty in 2010-2011 season. Already sugar prices since March have slided by almost Rs.700/- a quintal and are likely to fall further.

The industry supplies 20% of its production to Government for Public distribution through fair price shops, as Levy Sugar at a fixed price of Rs.1366/- which is much lower to the cost of sugar cane (Rs. 1900/-per tonne)

The Government has unfortunately not revised the Levy sugar price for the last three years. The industry is losing heavily on the Levy Sugar coupled with the steep fall in Free Sale Sugar, the future does not augur well for the industry. The Government must step in and play a proactive role to help this agro industry, which is supporting 50 million sugarcane farmers.

In the long run the Government should decontrol the Sugar industry which is the only controlled industry in India to day.

WS SUGARS, CHAGALLU

Our Company is one of the most efficient in A.P in size, crushing and cost of production is highly competitive. In the present globalised context the size of the factory is the most important. Besides it has sizable co-gen facility and distillation facilities. Year after year, Our Company is crushing higher quantity of sugarcane compared to other factories in A.P. This year also we propose to crush 10 lakh tons. The current year could be promising if the Government India adopts industry friendly policies.

7. REVIEW OF OPERATION

a. Sugar Division at Chagallu

Sugar 2009-2010 2008-2009 a) Duration 24-11-2009 to 23-11-2008 to 24-02-2010 02-03-2009 b) No of days 93 99 c) Cane crushed (Tons) 5,93,380 5,83,128 d) Sugar Produced (Qtls) 6,15,700 6,38,680 e) Recovery (%) 10.40 10.98

b. FINANCIAL YEAR

Duration 24-11-2009 to 14-2008 to 21-4-2008 24-02-2010 23-11-2008to2-3.2009 1) No of days 93 119 2) Cane crushed (Tons) 5,93,380 6,44,688 3) Sugar Produced (Qtls) 6,15,700 7,09,670 4) Recovery (%) 10.40% 10.83 5)Turnover(Rs in lakhs) 22,332 15,610

An unfortunate, unforeseen incident occurred at Chagallu this year. We Directors regret to announce that 3792 quintals of sugar valued at 70 lakhs were removed from the godowns unofficially by the Sales Staff and sold. As soon as this was discovered, the guilty were arrested on an official complaint from the company. They have been dismissed from service and their terminal benefits withheld. We are trying to recover balance from the culprits.

NEW SUGAR UNIT AT POTHAVARAM

The new sugar mill project at Pothavaram is complete in all respect but for some balancing equipment and other final face of start up. The Company is confident that it can commence operation in the ensuing sugar season for the year 2010-2011

II) The Prospects of our Distilleries at Chagallu and Jangareddygudem

The Company is selling Ethanol to the pharmaceutical producers at remunerative Prices.

The Company can opt for the production of Extra Neutral Alcohol or Ethanol or Absolute Alcohol based on the prices as per the market demand and get maximum benefit as all the products can be manufactured in our distilleries.

b. Co-Generation

The Co-generation project has worked continuously and successfully during the season and generated 23916 MW of power. The Company took a strategic decision to modify the boiler to use coal as alternative fuel at a cost of Rs.6 Crores at Chagallu. This would enable the company to process imported raw sugar in case of shortage of sugar cane. Moreover the power plant can feed power to the grid throughout the year increasing the turnover.

c. Electro Metallurgical Division

The lease in respect of the Ferromanganese plant has expired in January 2007. The Ferromanganese / Ferrochrome products market has considerably picked up and the price of the final products are good. Hence, the company is actively considering the revival of the Ferromanganese / Ferrochrome unit in due course

d. Distillery Division at Rayagada

The operations in the IMFL bottling unit during the year was satisfactory. The demand for the products are on the rise. The company is taking steps to increase the production substantially and to introducing one or more new varieties.

8. DIRECTORS

The following Directors retire at the conclusion of the Annual General Meeting and being eligible, offer themselves for re-election.

1. SmtMAVedavalli

2. Sri. Boppana Ramalingeswara Rao

3. Sri.R.Kannan

9. DIRECTORS RESPONSIBILITY STATEMENT

As required under Section 217 (2AA) of the Companies Act, 1956, the Directors confirm that

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

b) 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 financial year and of the profit or loss of the company for that period;

c) The Directors regret to report an unfortunate incident of misappropriation of sugar stocks with a value of Rs.70 lakhs. The company has initiated suitable action and is confident of recovering the entire amount. The company has also strengthened the systems and controls to present the occurrence of such events of fraud and irregularities in the future.

d) the Company has 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.

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

a) CORPORATE GOVERNANCE

The Corporate Governance and Management Discussion and analysis Reports form an integral part of this Report and are set out as separate to this Report. The Certificate from the Auditors of the Company certifying compliance of the Listing Agreement with Stock Exchange is also annexed to the Report on Corporate Governance.

LISTING OF STOCK EXCHANGES

Your Companys shares are listed on the Madras Stock Exchange Ltd., and the annual listing fees for the financial year 2009-2010 has been paid. Indo next segment trading of shares in Bombay Stock Exchange Ltd.

DEMATISIN NUMBER

INEI80E01014

CONSOLIDATED FINANCIALSTATEMENT

Consolidated Financial statement has been prepared as required in AS-21 and attached with Annual Report.

AUDITORS

a) Statutory Auditors

M/s.Brahmayya & Co, Chartered Accountants, Vijayawada retire at the conclusion of the forthcoming Annual General Meeting and being eligible, offer themselves for re-appointment.

b) Cost Auditors

M/s.Parankusam & Co., Chennai, Cost Accountants, has been appointed as Statutory Cost Auditors for the Sugar Unit of the Company.

STAFF RELATIONS

The relationship with the staff and workers continued to be cordial during the year. The Directors wish to place on record their appreciation of the valuable work done and co-operation extended by them at all levels.

ACKNOWLEDGEMENT

The Directors wish to place on record their appreciation and thank the Companys Bankers, Financial Institutions and various departments of Central and State Governments and the shareholders for the valuable support received from them. The Board also places on record their appreciation for the co-operation being extended by the cane growers in the Chagallu area to increase the sugarcane supply to the factory to meet the requirements of the expanded capacity.



By Order of the Board) for THE JEYPORE SUGAR CO.LTD., Place: Chennai (Sd.) RAJESWARY RAMAKRISHNAN Date 28.05.2010 Chairman cum Managing Director


Mar 31, 2000

1. The Directors have pleasure in presenting their report for the Year ended 31st March 2000, together with the Balance Sheet as at 31st March, 2000 and the Profit and Loss Account for the Year ended on that date.

2. PROFIT AND LOSS APPROPRIATIONS

Rs. Rs.

Profit before Interest and 26,69,66,540

Depreciation

Less : Interest 18,90,29,684

Depreciation 4,25,15,043

23,15,44,727

Profit before tax 3,54,21,813

Less : Provision for taxation 50,00,000

Profit after tax 3,04,21,813

Add : Surplus brought forward from last year 1,25,13,293

4,29,35,106

Less : Transfer to General Reserve 60,50,000 Proposed Dividend 76,03,584

Tax on Proposed Dividend 16,72,788

1,53,26,372

Surplus taken to Balance Sheet 2,76,08,734

3. DIVIDEND

Your Directors recommend payment of dividend at the rate of 30% (subject to consent from lending Financial Institutions) for the year ended 31st March, 2000.

4. CAPITAL & RESERVES

The Paid up Capital at the end of the year stood at Rs.2,53,45,280/- and Reserves atRs.26,68,67,164 /- as against Rs.2,53,45,280/- and Rs.24,57,21,723/- respectively at the beginning of the year.

5. FIXED DEPOSITS

As on 31st March 2000, there were 85 deposits matured and remaining unclaimed amounting to Rs.31,79,000/-. Out of these deposits of the value of Rs. 61,500/- are remaining unclaimed for more than seven years and are required to be deposited with the National Investor Protection Fund in accordance with Section 205 C of the Companies Act. Pending notification of the details and the constitution of the fund, the said deposit is yet to be made.

6. REVIEW OF OPERATIONS

(Rs. in Lakhs)

Sales and Profits 1999-2000 1998-99

a) Sales 11704.96 12627.90

b) Profit before Depreciation & Interest 2669.67 2394.43

c) Interest 1890.30 1790.52

d) Depreciation 425.15 398.88

e) Profit after Depreciation, 304.22 175.91 Interest, Wealth Tax and Taxation relating to earlier years

1999-2000 1998-99 Sugar Sugar season Sugar season

a) Unit: Chagallu 15.11.99 to 13.11.98 to Duration 05.04.2000 30.03.99

b) No. of Days 143 133

c) Cane Crushed (Tons) 9,14,224 8,57,385

d) Sugar Produced (Qtls) 10,30,300 9,45,520

e) Recovery (%) 11.27 11.03

FINANCIAL YEAR

1) Duration 15.11.99 to 13.11.98 to 31.03.2000 30.03.99

2) No. of days 138 138

3) Cane crushed (Tons) 9,14,224 8,57,385

4) Sugar Produced (Qtls) 10,24,800 9,45,520

5) Recovery (%) 11.27 11.03

6) Turnover (Rs.in lakhs) 11517.88 12605.94

The Company has successfully made all its Computer Hardware and Software applications Y2k compliant.

A. VVS SUGARS - CHAGALLU

The cane crushed during the year 9.14 lakhs tonnes as against 8.57 lakhs tonnes in 98-99, the recovery has improved to 11.27% from 11.03% as compared to last year. The profit from this unit is Rs.4.32 Crores compared to Rs.4.00 Crores last year. The State and Central Governments have to help the sugar industry in this critical time where the situation is very fluid due to huge production of 170 lakhs tonnes during the current year with carry forward stock of about 70 lakhs tonnes. Hence nobody can predict how the free sale sugar price will operate during the current year.

B. ELECTRO METALLURGICAL DIVISION

No production in this unit during the year in view of unfavourable market conditions.

C. RAMAKRISHNA MAIZE PRODUCTS

The production in this unit continues to be suspended during this year also due to scarcity of raw materials and unfavourable conditions in this line of business. Efforts are being made to revive the production in this unit.

D. DISTILLERY AT RAYAGADA

We are continuing manufacture of IMFL on behalf of others during the year

Research and Development:

CO-GENERATION:

FORM B (See Rule 2) The Project is under progress.

Two Buckau-wolf Steep Cone centrifugal machines have been shifted to B2 massecuite curing by which method sugar colour and crystal size has improved considerably.

AGRICULTURAL IMPROVEMENT:

The Company is conducting advanced varietal trials on sugarcane Crop in coordination with Research Institutions and plantation of New sugar rich varieties (like 92v206, Coa95801, 93V110) suitable to zone are introduced. We are also conducting trials in our own Agricultural Farm on

1. Manural application.

2. Trials on scale insent infestation.

3. Selection of varieties to suit our local area.

which are very useful to obtain sugarcane yield and quality. 2765 Tonnes of Bio Earth, produced and supplied to cane growers during this year which has improved the yield of cane.

B) SAFETY & POLLUTION CONTROL

(a) Air Pollution:

42kg High Pressure KCP Boiler has been provided with wet scrubber for prevention of air pollution, which is giving satisfactory results.

(b) Water Pollution

Effluent water after treatment is being used for ferti irrigation and hence it is not being let-out into public stream.

9. SUBSIDIARY COMPANIES

Particulars as required under Section.212(3) of the Companies Act, 1956 in respect of Sri Rama Distilleries Limited and Jeypore Sugar Finance & Investment Corpn. Ltd.,the subsidiaries of the Company are given hereunder:

a)1. Name of the Subsidiary

SRI RAMA DISTILLERIES LTD.

(wholly owned Company)

2. Financial Year

Year, ended 31.3.2000

3. Holding companys Interest

Entire Issued Share Capital comprising 83,365 Equity shares of Rs.100/- each (including shares held by nominee shareholders)

4. Net amount of Profit/Loss

Net profit for the current financial year is Rs.19,37,341/-. Adding thereto the balance of Profit Rs.51,49,901/- brought forward from last year. The net profit comes to Rs.80,92,242/-, including investment allowance reserve withdrawn Rs. Rs. 12,55,000/-, after providing of Rs.2,50,000/- for income tax.

5. Profit/Loss of subsidiary dealt with in Holding Companys Accounts

Nil

b)1. Name of the Subsidiary

JEYPORE SUGAR FINANCE AND INVESTMENT CORPORATION LTD.,

2. Financial year Year ended 31.3.2000

3. Holding Companys Interest

4,10,000 Equity Shares of Rs.10/-each

4. Net amount of Profit/Loss

Net Loss for the current Financial year is Rs.46,65,506/-. deducting therefrom balance brought forward from last year of Rs.39,73,516/- the balance of loss taken to balance sheet Rs.6,91,990/- is carried over to next year.

5. Profit/Loss of subsidiary dealt with in Holding Companys Accounts

Nil

10) DIRECTORS

The following directors retire at the conclusion of the Annual General Meeting, and are being eligible, offer themselves for re-election.

1. Sri. Boppana Ramalingeswara Rao

2. Sri. G.S. Raju

3. Sri. K. Ramesam

11) MANAGEMENT STAFF

Information as required under section 217(2A) of the Companies Act, 1956 read with the relevant rules thereunder, in respect of particulars of Employees, is given hereunder:

i) Name & Mrs. Rajeswary Ramakrishnan, Managing Director Designation Qualification &

Experience B.A., 38 years

Date of Employment 3-9-1967

Age 72 years

Remuneration Gross salary: Rs. 10,50,000

Benefits : Rs. 1,76,480

Rs. 12,26,480

Particulars of previous employment

Managing Director,

R.S. Industrial Corporation (P) Ltd.,

(ii) Name & Designation

Mr A.D.L. Prasad, Chief Executive

Qualification & Experience

M.E (N.Y)., 33 years

Date of Employment

21.7.1967

Age 158 years

Remuneration

Gross salary : Rs. 4,87,200

Benefits : Rs. 1,59,893

Rs. 6,47,093

Particulars of previous employment

Line Engineer, IBM Corporation (U.S.A) Fish kill, New York.

12. STAFF

RELATIONS

The relationship with the staff and workers continued to be cordial during the year. The Directors wish to place on record their appreciation of the valuable work done and co-operation extended by them at all levels.

13. AUDITORS REPORT

With regard to the comments by the Auditors in paragraph 17 of the Annexure to their report which is self explanatory, the Board clarifies that the delays in remittance of P.F were due to unavoidable circumstances at these units. Necessary steps will be taken to ensure regularity in deposits of P.F dues during the current year.

14. AUDITORS

a. M/s. Brahmayya & Co., Chartered Accountants, Vijayawada retire at the conclusion of the Annual General Meeting and are eligible for re - appointment.

b. M/s. Parankusam & Co., Cost Accountants, Hyderabad, has been appointed as Statutory Cost Auditor for the sugar unit of the Company.

15. ACKNOWLEDGEMENT

The Directors wish to place on record their appreciation and thank the Companys Bankers, Financial Institutions and various departments of Central and State Governments and the shareholders for the valuable support received from them. The Board also places on record their appreciation for the co-operation being extended by the cane growers in the Chagallu area for increasing the requirements of the expanded capacity.

(By Order of the Board) for THE JEYPORE SUGAR CO. LTD., Place : Chennai
Date : 30-06-2000 Chairman

 
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