NORTHLAND SUGAR COMPLEX LIMITED
Your Directors have pleasure in presenting their Second Annual Report
together with the Audited Accounts for the year ended 31st March, 1995.
As all of you are aware we had taken over the Dasuya Cooperative Sugar
Mills Ltd., from Punjab State Industrial Development Corporation Ltd on
24th June 1993. Inspite of several teething problems both Financial and
Technical, we were successful in completing the plant and commissioned the
same on 1st January 1995. After trial run, we went ahead with Commercial
Production. During the last crushing season we crushed 5,51,526.30 lac
quintals of cane and produced 42,325 quintals of sugar with an average
recovery of 7.67%. Recovery was very low because of initial trial run.
Our factory is situated in the best cane growing area of Punjab. There is
sufficient cane around the factory and we are confident to have better
crushing season during 1995-96. In order to optimise the level of crushing
and economies in operations the Company is instaling Balancing Equipment at
a total cost of Rs. 4.00 crores. After completion of installation of the
balancing equipment, fuel consumption will come down considerably and
recovery will improve. In order to improve the recovery further, the
Company is planning to distribute high yield sugar cane seeds to the
farmers in and around the area.
In the absence of adequate profits during the year under review, your
Directors do not recommend any dividend to the Shareholders.
On 10.11.94 the paid up Capital of the company was enhanced from Rs. 60.09
lacs to Rs. 2374.04 lacs, pursuant to the Public Issue which elicited over-
whelming response and was over subscribed by 10.53 times.
The funds raised from the public issue have been utilised for the purpose
for which these were raised. Further information in terms of clause 43 of
the listing agreement is given in annexure to the Directors' Report.
The Company has not accepted any deposits under section 58-A of the
Companies Act, 1956 during the year under review.
AUDITORS' & AUDITORS' REPORT
M/s Anil Vasudeva & Co., Statutory Auditors of the Company hold Office
until the conclusion of the ensuing Annual General Meeting and being
eligible for reappointment.
The notes to the Accounts referred to in the Auditors' Report are self
explanatory and therefore do not call for any other comments.
PARTICULARS OF EMPLOYEES
Information to be provided under Section 217(2A) of the Companies Act 1956,
read with the Companies (particular of employees) Rules 1975, (as amended
upto date) is not applicable to us since during the year there was no
employee drawing a remuneration of Rs. 3 Lacs or more per annum or Rs.
25,000/- or more per month if employed for part of the year.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
Statement giving information pursuant to Section 217 (1) (e) of the
Companies Act, 1956 read with Companies (disclosure of particulars in the
report of Directors) Rules 1988 is given in Annexure to the Directors'
Your Directors would like to express their grateful appreciation for the
assistance and co-operation received from PSIDC, Bankers, Share Holders,
Clients and SEBI.
Your Directors wish to place on record their deep sense of appreciation for
the devoted services to the Executives, Staff and Workers of the Company
for its success.
ANNEXURES TO THE DIRECTORS' REPORT
Information pursuant to Section 217 (1) (e) of the Companies Act, 1956 read
with Companies (disclosure of particulars in the report of Directors) Rules
A. CONSERVATION OF ENERGY
The Company is planning to instal automatic instrumentation to control
B. Details of total consumption and energy consumption per unit as per Form
"A" are given hereunder:
A. POWER AND FUEL CONSUMPTION 1994-95
a ) Purchased:
Total Units 67055
Total amount (Rs) 2,62,666
Rate per Unit (Rs) 3.92
b) Own Generation:
i) Through Diesel Generator Unit (KW)
Total Units 2,19,375
Units per litre of diesel oil 5.03
Cost per Unit (Rs) 1.38
ii) Through Steam Turbine Unit (KW)
Total Units 2,22,606
Unit per Qtl of fuel 1.40
Rate per Unit (Rs.) 5.13
Quantity (Qtls) 161970
Total Cost (Rs. in lacs) 65.43
(Estimated due to own generation)
Average rate (Rs./Qtls) 40.4
3. Fire Wood
Cost (Rs) 28108
Rate per Tonne (Rs) 716.7
B. CONSUMPTION PER UNIT OF PRODUCT
1. Electricity (KW/Qtls) 12.03
2. Bagasse (Qtls/Qtls) 3.91
3. Furnace oil (Qtls/Qtls) 26.07
4. Fire Wood (Qtls/Qtls) 0.0093
C. TECHNOLOGY ABSORPTION
The efforts are being made in technology absorption as per Form 'B' as
Research and Development (R & D)
The work has been undertaken for developing technology for manufacturing of
high quality sugar with minimum use of process stores. Efforts are also
being made to bring down the purity of the final molasses to minimum.
Expenditure incurred on R & D:
1. Capital Nil
2. Recurring Nil
3. Total R & D expenditure as
a percentage of Turnover Nil
Technology Absorption, Adaption and Innovation
1. The main efforts of the Company are aimed at quality improvement,
reduction in process loss and improvement in recovery, productivity
improvement and energy conservation. By products bagasse so saved will be
used for new product development.
2. On account of above, the Company will derive the benefits listed below:-
a) Superior quality sugar with less consumption of process stores.
b) Improvement in recovery and reduction in process losses.
D. FOREIGN EXCHANGE EARNINGS AND OUTGO
Export of sugar is controlled by the Government and when required to do so,
the Indian Sugar Industry Export Corporation Ltd. performs the tasks
entrusted to it by the Government agencies.
Statement under clause 43 of the Listing Agreement
(Performance vis-a-vis Projections as per prospectus dt. 9.8.94)
(Rs. in Lacs)
Particulars Projections Actual
1. Sales 2347.80 20.17
2. Gross Profit 675.41 104.86
3. Interest 197.75 15.22
4. Depreciation 82.97 33.56
5. Preliminary Expenses written off 14.21 -
6. Tax 9.52 -
7. Net Profit 370.96 56.08
8. EPS (Rs.) 1.57 0.73 (weighted)
Note: The project was scheduled to be commissioned by 15.10.1994 but
because of the delay in receipt of some critical equipment it was
commissioned on 1.1.1995.
For and on behalf of the Board
PARSHOTAM LAL MAINI
SANSAR CHAND MAINI
Place : Chandigarh
Dated : 28th August, 1995.