You are here » Home » Companies » Company Overview » India Sugars & Refineries Ltd

India Sugars & Refineries Ltd.

BSE: 507150 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: N.A.
BSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty

India Sugars & Refineries Ltd. (INDIASUGARS) - Director Report

Company director report

DIRECTORS

TO:

THE MEMBERS

Your Directors present their SEVENTY-EIGHTH ANNUAL REPORT and the Accounts ofthe Company for the year ended 30th September, 2012.

FINANCIAL RESULTS: 2011-12 2010-11
(Rs. in Lacs)
Profit/ (Loss) before Financial Charges and Depreciation 332.90 617.38
Less: Financial Charges 336.61 207.03
Profit/ (Loss) before Depreciation (3.71) 410.35
Less: Depreciation 140.28 137.04
Profit/ (Loss) before tax (143.99) 273.3 1
Provision forTax / Deferred Tax 37.07 0 197.97
Profit / (Loss) after Tax (181.05) 75.34
Add: Profit / (Loss ) brought forward from the previous Year (1612.23) (1687.57)
Balance of Profit / (Loss) carried to Balance Sheet (1793.28) (1612.23)

Dividend.

Keeping in view of the performance of the Company in the recent past, your Directors donot recommend dividend for the year 2011 -2012.

There are no unclaimed amounts which are required to be transferred to the InvestorsEducation & Protection Fund pursuant to the amendment to sub sec. (5) of the Section205A . vide Companies Act 1956.,

WORKING RESULTS:

The working figures of the company for the season 2011-2012 along with the figures of2010-2011 Season are given below:

2011-2012 2010-2011
Season Season
Date of commencement of crushing operations 18.12.2011 15.12.2010
Date of Closure of crushing operations 14.04.2012 17.03.2011
Gross Season days 118 92
Sugarcane handled (Input) MT 2,35,919 1,74,553
Sugar produced (Output) Net of reprocessing 2,43,023 Qtls. 1,81,960 Qtls.
Recovery 10.30 10.42%

Your Company has crushed 2,35,919 MT of sugarcane and produced 2,43,023 MTof sugarduring the year 2011-2012 as against 1,74,553 MT of sugarcane crushed and produced1,81,960 MT of sugar during the corresponding previous year i.e . 2010-2011. The companyhas paid the sugar cane price of Rs 2,005/- PMTfor the season 2011-12.

During the year 2011-12, more than 2 lakhs MTS of sugar cane was illegally procured bythe other sugar factories. The company was able to crush 2,35,919 MTof sugarcane only.

Your Company's turnover was Rs. 6603.05 lakhs for the year 2011-2012 (previous year Rs.4,988.12 lakhs).

SUGAR POLICYAND SUGAR PRICE:

Government of India has fixed the levy Sugar Price for 2011-2012 Season and the priceapplicable to your company is Rs 1,850.10 per quintal. The ratio of levy and free salesugar at 10% : 90% is continued. Further the levy price for the season 2011-12 onwards islikely to be increased by Rs. 2/- per KGby Govt of India.

a) In June, ISMA had released its preliminary estimates of 250 lakh tonnes of sugarproduction for 2012-13 sugar season. After considering satellite data and estimates of 80private mills and field visits in Maharashtra and Karnataka , ISMA ha s reduce dMaharashtra's sugar production estimate from 90 lakh tonnes last year to 65 lakh tonnesthis year. For Karnataka, ISMA expects sugar production to fall from 38 lakh tonnes lastyear to 30 lakh tonnes this year.

Cane area in largest sugar cane producer Uttar Pradesh has increased by 10% from 22.52lakh hectare during 2011-12 season to 24.74 lakh hectare for20 12- 13 season.

For Karnataka, ISMA expects a fall of 21% in sugar production from 38 lakh tons in2011-12 season to 30 lakh tons in 2012-13 season. Area under sugarcane has fallen by 2.1%only from 4.32 lakh ha. in 2011-12 season to 4.23 lakh ha. for harvesting next season,states ISMA release.

b) Domestic sugar prices are expected to remain around Rs. 30 per Kg due to fall inproduction in the SS201 2- 1 3.

Policy Initiatives expected

a) The Ministry of Sugar has recommended for deregulation of the sugar industry from SS2013-14 which is under consideration of the government. Under the proposal sugar releasesand levy prices are expected to be repealed. The ethanol prices are also expected t o bemade market determined. However deregulation of the cane prices will take some time.

b) Indian government is likely to levy import tax for import of raw and white sugar.This might benefit domestic market of the sugar industry.

PROSPECTS:

Factory:

Cane crushing for the season 2012-13 started on 24th November, 2012. The working of theFactory is smooth and all the efficiency parameters are within the norms.

• 30 Ton Boiler, Air Heater Tubes 2424 nos including stay tubes replaced by Newone.

• 30 Ton Boiler New ID Fan with AERO FOIL PROFILE BLADES with auto wash systeminstalled to suit Wet Scrubber unit.

• 30 Ton Boiler Chimney 2.44 mtrs. Dia 35.5 mtrs. Vertical portion replacedby New one.

• 20 Ton Boiler Air heater tubes 100 Nos replaced.

• 20 Ton boiler ID Fan impeller replace by new one.

• Dorr clarifier central shaft , intermediate tray plates 3 nos and 4 nos mudbooths replaced by new one and drive head got reconditioned from outside party.

• New liquid ring vaccum pump Model LRV-030, 75 m3/hr. 710 Hg installed for vaccumfilters in place of damaged pump at boiling house-1.

• New air blower of kulkarni tools installed in boiling house-1 for syrupsulphitation.

• Newrisansi make high flow pumps 45 m3/hr 2 nos installed for sulphited syruppumping.

• Installation of 10 T cap. New silo for holding filter cake of vaccum filter withbelt conveyor modification in boiling house.

• New PSP make zero leak pump 35 M3/Hr. size 8" with new allroyed gear box40: 1 R and size 8" installed for hopper seed in BH-2 section.

Maximum care is taken to attend all the problems experienced during previous season, toensure smooth and steady running of the

Factory.

The working results are shown in the Tabulated form which is annexed.

STATUS OF COMPANY'S PENDING WRITS

The company has filed fresh criminal petitions against the factories who have liftedSugarcane from the Reserve d Area of the factory contravening the provisions of theEssential Commodities Act, 1985 and in some cases Hon'ble JMFC (Jv Division) Hospet hastaken cognizance of offence and issued summons to the directors of the company.

The Hon'ble High Court of Karnataka circuit bench at Dharwad in W P No. 60262-246 /2011 by its order dated 15.07.2011 had clearly directed the concerned authorities toensure that no sugar factory enters the Reserved Area of the company. Inspite of thisclear direction the authorities concerned namely. 1. The Secretary, Commerce an dIndustrie s Department 2. The Commissioner for Cane Development &Director ofSugar in Karnataka 3. The Deputy Commissioner, Bellary and 4. The Assistant Commissioner,Hospet in total disobedience to the said court order have not prevented the illegalmovement of sugar cane from the company's Reserved Area to the neighbouring factories. Inview of this, the company was compelled to file the contempt petition on the authoritiesbefore the Hon'ble High Court of Karnataka. The Hon'ble High Court of Karnataka hasalready issued notice of hand summons to the accused. The hearing of the matter is inprogress.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION: Pursuant to Section 217 (1) (e) ofthe Companies Act, the particulars in respect of Conservatio n of Energy, Technology,Absorption and Foreign Exchange Earnings and Outgo are furnished in Annexure "A1.

EMPLOYEES:

Your Director s place on record their appreciation for the contribution by theemployees at all levels for the working of the Company. The company has no employee inrespect of whom a statement under Section 217 (2A) of Act is required to be annexed.

DIRECTORS:

Shri B S Gurumurthy, Director of the company retire by rotation under Article 105 &106 of the Articles of Association of the company at the ensuingAnnual General Meeting andbeing eligible offer himself for re-appointment.

Shri Sanjay Medhekar, Director of the company retire by rotation under Article 105& 106 of the Articles of Association of the company at the ensuing Annual GeneralMeeting and being eligible offer himself for re-appointment.

COMPANY SECRETARY:

The company is taking suitable steps for the appointment of a qualified full timeCompany Secretary.

AUDITORS / THEIR REPORT:

Messrs M S Krishnaswami & Rajan, Chartered Accountants, Chennai, the StatutoryAuditors of the Company, retire at the ensuing Annual General Meeting and are eligible forreappointment. They have furnished a certificate to the company to the effect that theirappointment, if made, will be in accordance with the limits specified in Section 224 (1)of the Act. Nomaterial developments or commitments have accrued affecting the financialposition of the company between September 30, 2012 and the date of this report.

LISTING OF SHARES:

The Equity Shares of your company are listed on Bombay Stock Exchange Ltd., Necessarylisting feehas been paid to the Stock Exchange.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to section 217 (2AA) of the Act, your Directors state that:

i) In preparation of the Annual Accounts, the applicable accounting standards have beenfollowed along with proper explanation relating to material departures.

ii) Selected such Accounting Policies, and applied them consistently and made judgmentan d estimate s that are reasonable and prudent so as to give a true and fair view of thestate of affairs of your company at the end of the Financial Year 30th September 2012, andof the loss of your Company, for that period.

iii) We have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the Provisions of this Act for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities.

iv) We have prepared the Annual Accounts of your Company on a "going-concern"basis.

ACKNOWLEDGEMENTS:

Your Directors place on record their thanks to the Banker, Sugar Cane Growers, fortheir cooperation.

On behalf of the Board

For The India Sugars & Refineries Ltd.

Managing Director

Director-(Tech)

Place: Bangalore

Date: 23.02.2013

ANNEXUREA

PARTICULARS AS REQUIRED UNDER THE COMPANIES (DISCLOSUR E OF PARTICULARS IN THE REPORTOF THE BOARD OF DIRECTORS) RULES, 1988.

CONSERVATION OF ENERGY:

Energy conservation is an on-going activity in the company and the efforts to conserveenergy through improved operational methods and other means will continue. Total energyconsumption and energy consumption per unit of production are furnished in the prescribedForm "A "below.

FORM-A (SeeRule 2)

FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY:

A. POWER AND FUEL CONSUMPTION:

1. ELECTRICITY Current Year Previous Year
2011-2012 2010-2011
A Purchased
Units - KWH 4,34,885 4,59,540
Total amount (Rs) 28,67,912 25,17,104
Rate / Unit (Rs) 6.60 5.48
B Own Generation :
i) Through Diesel
Generator
Units - KWH 24,400 26,870
2.21 2.22
Unit per Ltr. Of diesel Oil
Cost / Unit (Rs.) 21.28 19.74
ii) Through Steam
Turbine/Generato
48,64,080 37,49,160
Units - KWH
Unit per Ltr. Of Fuel Oil / Gas NA NA
Cost / Unit (Rs.) - -
2 COAL (Specify quality and where used) - -
Quantity (Tonnes ) - -
Total Cost - -
Average Rate - -
3 FURNACE OIL :
Quantity (Kilo Ltrs.) - -
Total Amount - -
Average Rate - -

4. OTHERS \ INTERNAL GENERATION :

BAGASSE FIREWOOD HUSK
2011-12 2010-1 1 2011-1 2 2010-1 1 2011-1 2 2010-11
Quantity(MT) 57,769 10 42060.33 89.350 26.659 300.300 400.891
Total Cost (Rs) Own Generation 250179.51 61315.70 592587.78 902000.76
Rate\Unit/ (Rs/ M T) 2799.99 2300.00 1973.32 2249.98

B. CONSUMPTION PER UNIT OF PRODUCTION:

Standards (if any) Current Year Previous Year
Unit- Quintals 2010-2011 2010-2011
PRODUCT - SUGAR
Electricity(KWH) - 19.75 20.99
Furnace Oil - - -
Coal(specify quality) - -
Others(specify)
Firewood (MT) - 0.0003595 0.0001468
G N Husk (MT) - 0.0012082 0.002208 2
Bagasse (MT) - 0.2324347 0.2316862

TECHNOLOGY ABSORPTION

FORM - B (SeeRule 2)

Form for disclosure of particulars in respect to absorption

I. RESEARCH AND DEVELOPMENT (R&D):

1. SPECIFIC AREAS:

a) The varieties procured from various sugarcane Research Stations such as CO 8371, CO8014, CO 86032 8s CO 92061 are picking up in our area of operation. CO 8371 is beingdiscouraged as it is prone for pest attack 8s promoting CO 94012

The farmers are happy with performance of CO86032 and CO92061. The area under thesevarieties for commercial plantation is increasing substantially. It is intended to havesome area for trial / research

Sugarcane breeding Institute is supplying sugar cane seeds of a newly released canevariety CO-99004 (Damodar) to the extent of one quintal for multiplication, to find outsuitability to our area. It is said that this CO-99004 cane variety yield and qualityboth. This variety is under III stage of multiplication.

b) For control of pest like wooly aphids, malathian and release of natural enemies isencouraged from time to time in the pest affected sugarcane fields of farmers isadvocated.

Natural enemies like Dipha aphidovora and Micromus spices which feeds on white woolyaphids are collected from the fields and released in the affected fields of our area.

Creating the awareness among the farmers that CO 92061 & CO 86032 varieties whichhave shown tolerance for white wooly as compared to other existing varieties of sugarcaneand being insisted to farmers to take up cultivation of these varieties. Farmers areswitching over to improved sugarcane varieties.

c) In some areas the sugarcane crop was affected by hairy caterpillars. In order tocontrol this pest attack, the steps were taken in co-ordination with scientist ofuniversity of Agricultural Sciences, and Department of Agriculture. Pamphlets givingtechnical guidance to control the pest were distributed amongst the farmers of that area.

2. BENEFITS DERIVED:

a) The release of predators in the field to control the pest periodically has resultedin good yield and good quality of sugarcane to the factory for crushing. We are in regulartouch with Agricultural University Dharward, Central Pest Management Centre, Bangalore,Sugarcane breeding Institute Coimbatore & Department of Agriculture Government ofKarnataka on this matter.

c) Introduction of early - rich varieties has enabled the factory to receive goodquality can e and to maintain recovery throughout the crushing season.

d) Use of bio-fertilizer has helped in improving soil fertility and minimized thechemical fertilizer expenditure and also improved the texture and productivity.

e) Cane field staff and farmers training program is arranged to train the staff andfarmers in latest technology of sugarcane cultivation by the scientist from the Universityof Agricultural Sciences, Dharward and Department of Agriculture Government of Karnataka.

3. PLAN OF ACTION:

a) Heat treated (with AST Unit) sugarcane seeds of different varieties are Procuredfrom Research Stations are multiplied in experimental farms and on selected farmersfields, under seed nursery program. These seed materials will have good viability and aredisease free.

Introduction of early maturing sugar rich varieties as planned for sugar factory are asunder:

Actual Proposed *
(2012-2013) (2013-2014)
Early varities
Mid late varities
Late varities

4. EXPENDITURE ONRESEARCH & DEVELOPMENT:

a) Capital Rs.Nil
b) Recurring Rs . lakhs
c) Total Rs . lakhs

Total R&D expenditure as percentage of total turnover

Not material

I.TECHNOLOGY ABSORPTION, ADOPTATION AND INNOVATION :

1. EFFORTS MADE:

a) The company has availed the consultancy services of Sugarcane Breeding InstituteCoimbatore on "Varietal Management". The team of experts from Sugarcane BreedingInstitute, Coimbatore has surveyed the reserved area of our factory and advised to takesuitable measures byprocuring improved cane varieties from Research Station and take upAdoptive Trials, Three Tier Seed Nursery program etc.

b) Results of R & D carried out in other factories and Research Stations areapplied in our farmers fields. The new early, sugar-rich cane varieties are introduced inthe reserved area.

c) Seed Nursery Program and Integrated Pests control Program are taken up.

d) Poly bag seedlings are being encouraged to fill gaps to Ratoon crop to cultivatehigh yield

e) The company is making efforts for introducing sugar rich early maturing and highyielding sugarcane varieties and also to improve technology in sugarcane cultivation.

1. IMPORTED TECHNOLOGY: Not Availed

III. FOREIGN EXCHANGE EARNINGS AND OUTGO:

a) Activities relating to exports: NIL

b) Total Foreign Exchange :

Used Rs : -NIL-
Earned Rs: -NIL-