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Mawana Sugars Ltd.

BSE: 523371 Sector: Agri and agri inputs
NSE: MAWANASUG ISIN Code: INE636A01039
BSE 00:00 | 17 Feb 40.65 2.20
(5.72%)
OPEN

41.15

HIGH

43.85

LOW

40.15

NSE 00:00 | 17 Feb 40.75 2.05
(5.30%)
OPEN

41.15

HIGH

44.00

LOW

40.20

OPEN 41.15
PREVIOUS CLOSE 38.45
VOLUME 59217
52-Week high 61.30
52-Week low 25.75
P/E
Mkt Cap.(Rs cr) 159
Buy Price 40.65
Buy Qty 975.00
Sell Price 40.80
Sell Qty 10.00
OPEN 41.15
CLOSE 38.45
VOLUME 59217
52-Week high 61.30
52-Week low 25.75
P/E
Mkt Cap.(Rs cr) 159
Buy Price 40.65
Buy Qty 975.00
Sell Price 40.80
Sell Qty 10.00

Mawana Sugars Ltd. (MAWANASUG) - Chairman Speech

Company chairman speech

SIEL LIMITED ANNUAL REPORT 1999-2000 CHAIRMAN'S MESSAGE Dear Shareholders, I am writing to you with some degree of optimism relating to the fortunes of the Company, hoping that the 'PAST' is substantially behind us. This is so even though the weight of the past still rests heavily on us and this weight will not be lifted unless our long term debt is significantly reduced. After almost three years of continuing losses, for the month of November 2000, the Company made a net profit from operations (after all interest and depreciation). "THIS SIGNALLED THAT THE WORST IS OVER". However, we were reminded to continue to be conservative owing to the events that took place in December, 2000 and January, 2001. One was the shutting down of all factories in Delhi (basically implementing the Supreme Court order that was applied on us in November 1996) which affected our business because quite a lot of our chemical business customers were in Delhi; the other was the dreadful earthquake that hit certain parts of Gujarat causing havoc. While there has been much loss of life and material and our Company has made reasonable donations to the cause of relief of those affected, it has hit our business as the event has temporarily upset the improving economy for chlor - caustic products. At end February is the budget presentation by the Government of India and we do not know the impact of this on our immediate future. It is pleasing to note that the chemical operations are stable and, if the market is not disturbed as described above, at 65% capacity utilization we make money. For two years our sugar business was adversely affected because of very low recoveries. This position has been completely reversed this year indicating a very much improved sugar operation. If it were not for the huge sugar inventory carried by the country leading to very heavy interest expenses, this business would be very profitable indeed. To ease the burden of inventory, we are one of the few companies that has exported significant quantities. Furthermore, in sugar, the regulatory environment is improving in favour of the sugar economy and this is beneficial to us. I must inform you of the significant changes that are being made to improve our Company. 1. The land on which our chemical and vegetable oil plant used to sit at Najafgarh Road in Delhi, is likely to be sold. In the Supreme Court hearings, when the plant was shut down, a realization of over Rs.300 crores was being mooted by various people Involved. The reality is that the actual realizable sum may not even exceed a fifth of this sum, Even so, to reduce the interest burden and fulfil our obligation to the lending institutions, this land will be sold. The resulting impact on profitability will exceed Rs.10 crores per annum. 2. In the sugar business, our carbonation plant will be converted, at a cost of about Rs. 14 crores, to a sulphitation process plant yielding about Rs. 5 crore per annum. In due course we would like to qonvert this plant to a sugar refinery. 3. In the sugar business, we are actively studying co-generation of power. This has now become possible because the regulatory environment for power allows the Company to be more sure of payment from the UPSEB. 4. In the chlor-caustic business, we are investing a further Rs. 9 crores, to raise the production capacity to an average of 200 tons per day of caustic soda, 180 tons per day of chlorine and other related products. This investment has a very handsome rate of return. 5. Pricewaterhouse Coopers has been commissioned to study what could be the best structure of Siel Limited for maximising shareholders value. 6. Detailed studies are being conducted to introduce Enterprise Resource Planning into the Company as this system has the capability of significantly improving management and also instituting excellent Corporate Governance. 7. And finally, kindly peruse the CORPORATE GOVERNANCE report enclosed with the annual report which indicates compliance with the new SEBI guidelines for Corporate Governance. I must conclude by saying that, like you, I as a shareholder have suffered acutely in receiving no dividends and having a very low share price. In a year or so, if net profits accrue, we will surely improve on both fronts. With warm regards, Yours sincerely, SIDDHARTH SHRIRAM February 7, 2001