The management at Bannari Amman Sugars Limited is pleased to present the Annual Reportof your Company. At the outset let me tell you that we are immensely humbled and gratefulto each and every one of you who have shown utmost trust and confidence on our managementour business model and our strategy. The numbers that we reported during the year underreview are a testament of our competitive advantage and long-term sustainability.
Ever since the company was established we have never looked back as far as ourperformance is concerned with an exception of few years where there were extreme dry spellcircumstances due to drought conditions. In spite of various testing times confronted bythe organization among the years we have always kept in mind the interest of ourshareholders and we never fizzled. We have always paid dividend since inception without asingle year of interruption and keep on increasing the net worth consistently.
The quality of sugar has been acknowledged to be one of the best in the industry and weare the preferred source of supplier for marquee customers.
We are one of the pioneers of integrated sugar operations in the country. Our cost ofoperations has been consistently low due to the highest level of efficiency maintained inthe factories. We have always focussed on technical up-gradation of our equipments in thefactories to increase the efficiency.
Bannari Amman Sugars is a financially focused business. We have strong financialcontrols and effective governance across the company and we monitor performance againstour clear aims and KPI's. We have judiciously used surplus generated during industryupturn to pare debts stay lean and financially fit. Our relationship has been very goodwith the farmers. Usually all the cane planted in the area are registered with us baringa minuscule percentage. Even in the case of higher price they can convert it to jaggerythey prefer to supply to our factories for our services rendered not only for thecultivation of sugar cane but also for our various socio-economic activities. Ourassistance to the growers by the way of providing loans to farmers for purchase ofsecond-hand tractors and trucks deepening of wells supply of quality of seedsfertilizers and technical services has helped to increase yield per acre.
In order to have a stable production and cane price structure it's necessary to followa Revenue Sharing Formula (RSF) in respect of cane price which is already being adoptedin countries like Australia Thailand and Brazil. In case the Fair and Remunerative Price(FRP) determined by the government is more than the price determined by RSF the gapshould be filled up by the government by establishing Price Stabilisation Fund (PSF).
" Quality has been our dictum in any product "
Our black granite mines owned and operated by the company are the best in terms ofcolour. The mines are developed and exploited scientifically with best machinery andmining practices to preserve the environment. The market for this segment is very muchhuge and availability of blocks is the major catalyst for growth in this segment.
CSR services of Bannari Amman Sugars Limited are carried out under Bannari RuralFoundation a registered non-profitable charitable trust. The trust acts as resourcenucleus for providing urban amenities in rural areas. We are working tirelessly to enrichthe lives of people in the rural community by providing them with a host of amenities thatnot just make their lives a whole lot easier but also ensures agricultural educationaland economic independence. Activities carried out by our foundation includes Health campsin rural areas Sanitation facilities Contribution to education Check dam constructiondesilting of tanks and waterbodies etc.
Continuous monsoon failure in South India consecutively for the last 3 years is reallya dampener to all sugar factories in South as cane plantation has drastically reducedwhich will have an adverse effect on working of sugar factories.
Our strong financial position well-equipped factories and close relationships withgrowers and customers alike are advantages that we will be taking on to the competitivelandscape.
" Enhancing value for our stakeholders since inception "
Time and again we have proved our operational efficiency and your company never posteda loss we have been resilient through adversity.
Given the goodwill we enjoy with our cane growers and the excellent support we enjoyfrom our dedicated employees and from our shareholders I remain positive on the outlookfor our future.
S V Balasubramaniam