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KM Sugar Mills Ltd. Company History and Annual Growth Details

Our Company was originally formed as a partnership firm known as Kamlapat
Motilal at Kanpur; the founder partners were Singhanias and Jhunjhunwalas
and they had set up a small sugar milling plant at Kanpur in the year 1942.
The mill experienced acute shortage of cane and consequently the plant
was shifted to present site at village Masodha, P.O Motinagar, Dist. Faizabad
between 1949 and 1950.

During the year 1971 the firm was converted into Private Limited Company
known as K. M. Sugar Mills (Pvt.) Ltd., and got registered with the Registrar of
Companies, Uttar Pradesh, Kanpur. The Company became a deemed public
company in the year 1974 in terms of provisions 43A of the Companies Act.
The Company was converted back to a Private Limited Company under
Section 43A (2A) of the Companies Act. in the year 2002. The Company was
again converted into a public limited company with effect from April 20, 2005

At the time of the conversion of the firm into a Private Limited Company in 1971,
Mr. L. K. Jhunjhunwala joined as Managing Director. During the year 1979,
Singhanias transferred their stake in the Company to Jhunjhunwalas.

Our Company expanded the sugar cane crushing capacity from 1800 TCD to
2500 TCD in the year 1980 and crushing capacities were increased from 2500
TCD to 3500 TCD in the year 2000 and further to 4500 TCD in the year 2002.
The Company is now planning to increase its capacity upto 6500 TCD.

The Company started a gas division for manufacturing of Industrial Oxygen Gas
and Liquid Nitrogen in the year 1988 and the gas division was expanded to
manufacture Dissolved Acetylene Gas in the year 2000. The technology of the
gas division became obsolete over a period of time and management decided to
close down this division in the year 2005.

The distillery division of our Company was set up in the year 1995 to manufacture
Rectified Spirit (45 KLPD) and Extra Neutral Alcohol (20 KLPD). In the year 2003
the division started production of Ethanol (30KLPD) and in the year 2004 the Extra
Neutral Alcohol plant was modified to produce Ethanal and thereby increasing the
total Ethanol production capacity to 50 KLPD.

Our Company started production of Bio-Fertilizer using the by product of the sugar
and distillery division ie. Press mud and spent wash in the year 2000.

Our Company has also received the ISO 9001:2000 certification in 2003 for
manufacture of white sugar.

Under Mr. L.K. Jhunjhunwalas guidance, the Company has made steady and
consistent progress year after year. He became the Chairman of the Company in
the year 2002.

Our Companys turnover has grown from Rs. 5141 lacs in FY2000 to Rs. 8636
lacs in FY2004 and Net profit grew from Rs. 27.59 lacs in FY2000 to Rs. 550.31
lacs in FY2004. Our turnover for the three month period ended 31st December 2004
is Rs. 3821 lacs with profit after tax of Rs. 275 lacs.

The present management of KMSM is vested with the board of directors comprising
Mr. L. K. Jhunjhunwala as the Chairman, Mr. Aditya Jhunjhunwala as Managing Director
and Mr. Sanjay Jhunjhunwala as Jt. Managing Director and other directors as mentioned
under the heading Management.

Mr. P.C. Jhunjhunwala was one of the promoters of our Company. He shifted his
base in early eightys to Mumbai to concentrate on his other business interests. Though
he continued to be on the board as Non Executive Director, he did nt take active interest
in the business of the Company due to his other business interests.

In view of managements policy to comply with the Corporate Governance norms, the
non- executive directors Mr. P C Jhunjhunwala and Mr. Sanjay Modi resigned from Board
and Mr. D K Kapila, a professional director was inducted on the board with effect from 31st
March 2005.


-K M Sugar Mills Ltd has appointed Mr. S K Gupta as Non Executive Independent Director of the Company till the next Annual General Meeting in the Board Meeting held on December 29, 2007.