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Northland Sugar Complex Ltd.

BSE: 507516 Sector: Agri and agri inputs
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Northland Sugar Complex Ltd. (NORTHSUG) - Director Report

Company director report

1995 NORTHLAND SUGAR COMPLEX LIMITED DIRECTOR'S REPORTS Your Directors have pleasure in presenting their Second Annual Report together with the Audited Accounts for the year ended 31st March, 1995. OPERATIONS 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. FUTURE PROSPECTS 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. DIVIDEND In the absence of adequate profits during the year under review, your Directors do not recommend any dividend to the Shareholders. PUBLIC ISSUE 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. FIXED DEPOSITS 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 AND OUTGO 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' Report. ACKNOWLEDGEMENT 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 1988. A. CONSERVATION OF ENERGY The Company is planning to instal automatic instrumentation to control energy consumption. B. Details of total consumption and energy consumption per unit as per Form "A" are given hereunder: A. POWER AND FUEL CONSUMPTION 1994-95 1. Electricity a ) Purchased: Unit (KW) 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 2. Bagasse Quantity (Qtls) 161970 Total Cost (Rs. in lacs) 65.43 (Estimated due to own generation) Average rate (Rs./Qtls) 40.4 3. Fire Wood Qtls 3.92 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 under: 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. Imported Technology Not applicable 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 94-95 94-95 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 Directors Place : Chandigarh Dated : 28th August, 1995.