Sri Chamundeswari Sugars

With average recovery level down to 7.47 per cent from 9.41 per cent in the previous year, Sri Chamundeswari Sugars fell deep into the red during the 18-month period ended September 1996. During the 18 months, the company crushed 9.08 lakh tonnes of sugarcane and produced 6.86 lakh quintal of sugar as against crushing of 9.08 lakh tonnes and sugar production of 8.22 lakh quintal in the previous year. This lower recovery resulted in a loss of Rs 11.72 crore as against profit of Rs 1.39 crore in the previous year. Due to higher opening stocks of sugar, sales of sugar for the period were higher by 18 per cent on an annualised basis to Rs 99.47 crore. Due to the stock adjustment of Rs 19.11 crore, the value of production was lower by 31 per cent on annualised basis. Despite a poor result that almost wiped out the companys general reserves, the company proposed an equity dividend of 10 per cent.