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