Your directors have pleasure in presenting the 80th annual report togetherwith audited statements of accounts of the company for the financial year ended 31stMarch 2021.
(Rs. in Lakhs)
|Particulars ||Standalone ||Consolidated |
| ||2020-21 ||2019-20 ||2020-21 ||2019-20 |
|Total income ||53957.46 ||62428.43 ||56052.63 ||64266.17 |
|Operating profit before interest depreciation and taxation ||5269.02 ||2172.00 ||5385.90 ||2278.69 |
|Gross profit ||4003.49 ||594.33 ||4028.89 ||615.49 |
|Profit before exceptional item & tax ||2869.33 ||(524.35) ||2845.55 ||(530.75) |
|Exceptional item ||-- ||-- ||-- ||-- |
|Profit after exceptional item but before tax ||2869.33 ||(524.35) ||2845.55 ||(530.75) |
|Tax expenses ||1210.75 ||(291.98) ||1194.54 ||(296.03) |
|Profit after tax ||1658.58 ||(232.37) ||1651.01 ||(234.72) |
|Other comprehensive income ||30.74 ||32.03 ||34.98 ||32.03 |
|Total comprehensive income ||1689.32 ||(200.34) ||1685.99 ||(202.69) |
|Earnings per share ||26.24 ||(3.68) ||26.14 ||(3.71) |
YEAR IN RETROSPECT:
First quarter of FY 2020-21 remained largely affected by COVID -19 pandemic whichdeveloped rapidly into a global crisis which forced down all the economic activities inthe country and your company was no exception to this. The focus was shifted to ensuringthe health and well-being of all the employees of the company and the production washalted in the month of April 2020 which resumed gradually from the first week of May2020 after following all the guidelines and SOPs suggested by the Government and otherbodies to maintain social distancing at work place and other hygiene practices and thesenorms are still being strictly followed. The Management took quick and appropriatemeasures to cut the costs at all the levels. Despite this in the first quarter of thefinancial year under review the company posted losses due to lockdown of activities andinadequate absorption of fixed cost. However situation improved from the second quarterof the financial year and there had been increase in the demand for all the products ofthe company starting firstly with sweetener group products like dextrose monohydrateliquid glucose sorbitol and anhydrous dextrose which are supplied to food FMCG andpharma companies and subsequently with opening up of the economy with increase in demandfor native starch and other modified starches. The price of maize remained under controlfor most part of the financial year under review. As a result of this your company hasbeen able to post a much improved performance during the year under review.
During the year under review there has been a net reduction in current liabilities tothe tune of approx. Rs. 1800 lakhs. Your company has been able to reduce its bankborrowing by approx. Rs. 1500 lakhs. However there has been an increase in the borrowingby way of inter corporate deposits and by way of fixed deposits but the same is at acomparatively lower rate of interest.
A) RESULTS ON STANDALONE BASIS :
Your directors are pleased to report that during the year under review your companycould achieve maize grind of 2.06 lakh tons as against 2.03 lakh tons in the previous yeardespite of lockdown and pandemic conditions. The company achieved the total income of Rs.53957 lakhs as against Rs. 62428 lakhs in the previous year. This decrease in the value ismainly due to reduced raw materials costs and finished products prices. The companyhowever witnessed increase in demand for all its products especially value addedproducts. The price of maize during the year under review remained low as compared to theprevious year and as a result of this there has been overall improvement in thebottom-line of the company during the year under review. The EBITDA of the company duringthe year under review improved to Rs. 5269 Lakhs as against Rs. 2172 Lakhs in theprevious year. The gross profit of the company increased to Rs. 4003 lakhs as against Rs.594 lakhs in the previous year. The profit before tax of the company increased to Rs. 2869lakhs as against loss of Rs. 524 lakhs in the previous year and profit after tax increasedto Rs. 1659 lakhs against loss of Rs. 232 lakhs in the previous year.
B) RESULTS ON CONSOLIDATED BASIS :
There has been an improvement in the turnover and profitability of Alland & Sayajithe joint venture of Sayaji Industries Limited during the year under review. Howeverthere has been a nominal increase in the loss of Sayaji Seeds LLP subsidiary of thecompany due to lockdown in the first quarter of the financial year under review and thepandemic situation which impacted the kharif sowing peak season. On a consolidated basisyour company has recorded a total income of Rs. 56053 lakhs as against Rs. 64266 lakhs inthe previous year. The Gross Profit of the Company stands at Rs. 4029 lakhs as against.Rs. 615 lakhs in the previous year. During the year under review the profit before tax ofthe company stood at Rs. 2846 lakhs as against loss of Rs. 531 lakhs in the previous year.The net profit after tax during the year under review was Rs.1651 lakhs as against the netloss after tax of Rs.235 Lakhs in the previous year.
Your directors are pleased to recommend a dividend of Rs. 1 per equity share of theface value of Rs. 5/- each (previous year Rs.Nil per equity share) for the financial yearended 31st March 2021 which if approved by the members will be paid to thosemembers whose names appear on the register of members of the company on 13thSeptember 2021. The total outflow on account of dividend will be Rs. 63.20 lakhs.
FUTURE OUTLOOK :
Since the beginning of April 2021 there had been a second wave of COVID-19 which wasworse than the first one. The surge in some states like Maharashtra Delhi Tamilnaduforced them to impose strict restrictions till the end of May 2021. Gujarat had alsowitnessed a sudeen surge in Covid-19 cases and deaths due to the same. There was nocomplete lock down of activities as was done to combat the first wave of Covid-19 casesbut the strict restrictions had its effect on the economic activities of the country.However the situation started to improve from the month of June 2021 and there has beengradual opening of activities in the states. There has been a massive efforts to vaccinatethe large population of India to ensure that the third wave is prevented or impact of thesame is small on the economy of India.
Your directors sincerely hope that all these efforts take the situation in control atthe earliest to ensure that there is no further slowdown of already affected economicactivities in the first quarter of the current financial year to ensure that your companyonce again put up a better performance in the current financial year and in the years tocome.
Your company has continued all the efforts to ensure the health and safety of itsemployees and have tried to ensure that its employees and its family members take both thedosses of vaccination. All the SOPs and norms like social distancing checking oftemperature at the gate sanitization etc. are strictly followed.
AWARDS AND RECOGNITION :
The company has received in past no. of awards for its products use of boiler andcertifications in recognition of the company's systems. The most recent certificationsreceived by the company are OHSAS 18001:2007 a certification in recognition of company'shealth and safety management system ISO 9001:2015 in recognition of company's qualitymanagement system and ISO 14001:2015 in recognition of company's environmental managementsystem.
TECHNICAL ASSISTANCE AGREEMENTS:
The company had availed the benefits of technical expertise from M/s Tate & LyleBelgium and SIGMA Mudhendislik Makine Sanayi Ve Ticaret Auaturk Mahallesi Girne CadTurkey in the past. This has enabled it to further improve the technical parameters of theproduction processes and also improve the quality of its products.
Your directors report that the export turnover of the company during the year underreview is Rs. 4895 lakhs as against Rs. 6600 lakhs in the previous year due to effect ofpandemic situation in the financial year under review increase in ocean freight andnon-availability of containers. There had been surge in Covid cases again in the April& May 2021 in the second wave affecting the activities of the company. Your directorshope that the situation improves soon to ensure increase in the export turnover of thecompany. The company intends to continue with its long term export oriented marketingpolicy by penetrating more in its existing international market and exploring new avenuesfor its high value products.
Your directors are pleased to inform you that Sayaji Industries Limited has not availedof any moratorium offered to it due to covid-19 pandemic and the liquidity position isadequate to service all interest and debt repayments. Due to the Lockdown and prevailingeconomic situation the realization of receivables has been delayed in the initial monthof the year under review but the situation has improved fast from the second quarter ofthe current financial year due to extensive and effective efforts of the company's soleselling agents M/s L G & Doctor Associates Private Limited. The company alsocontinues to receive better price realization for its products as compared to itscompetitors. It is heartening to note that due to efforts on the part of the sole sellingagents total receivables at the end of the year remained in control.
The directors place on record its appreciation for the persistent untiring efforts ofthe sole selling agents to find new markets pursue with the customers for additionalorders and to ensure timely collection of dues.
Deposits aggregating Rs.12.64 lakhs due for repayment on or before 31stMarch 2021 were not claimed by the depositors on that date. As on the date of thisreport from the aforesaid amount deposits aggregating Rs. 3.00 lakhs have beenclaimed/paid.
Your company has accepted the deposits aggregating to Rs. 1600.53 lakhs (includingrenewed of deposits INR 795.41 lakhs) during the year under review after complying withthe provisions of the Companies Act 2013 and Companies (Acceptance of Deposits) Rules2014. There has been no default in repayment of deposits or payment of interest thereonduring the year under review and there are no deposits which are not in compliance withthe requirements of Chapter V of the Companies Act 2013.
Your directors appreciate the support which the company has received from the publicand shareholders to its fixed deposit scheme.
All the properties and insurable interests of the company including buildings plantand machinery stocks loss of profit and standing charges etc. are adequately insured.
During the year under review the company continued utilization of biogas capturedwhile treating the effluents which are generated from the manufacturing processes of thecompany. This has resulted into generation of more power at a reduced power cost.Utilization of biogas for generation of electricity reduces emission of the greenhousegases into environment and thus supports green environment. The company also set up a newUASB digester keeping in view the decline in the capacities of the existing digesters andalso to increase its overall effluent treatment capacities to meet the proposed increasein the activities of the company in the times to come.
MATERIAL CHANGES :
There are no other material changes and commitments affecting the financial positionof the company which has occurred between the end of the financial year under review ofthe company to which the financial statements relate except the possible impact on thefinancial position of the company due to surge incovid-19 cases in the second wave fromthe beginning of the current financial year in the manner as indicated earlier in thereport.
Mr. Vishal P. Mehta retires by rotation at the forthcoming annual general meeting andbeing eligible offers himself for re-appointment. Consent of the members of the companyis proposed to be sought by way of a special resolution for reappointment of Mr. Vishal P.Mehta as the executive director of the company for the period of five years with effectfrom 1st April 2021 and for payment of remuneration to him for the period ofthree years with effect from 1st April 2021. A special resolution is alsoproposed for increase in remuneration to Mr. Priyam B. Mehta as the managing director ofthe company for the remaining tenure of his appointment from 1st June 2021 to31st March 2023. Mr. Priyam B. Mehta is the chairman and managing director ofthe company since November 1982. He is assisted by Mr. Varun P. Mehta who is theexecutive director of the company since January 2010 and Mr. Vishal P. Mehta who is alsothe executive director of the company since July 2011. The appointment of the whole timedirectors and their remuneration are recommended by the nomination and remunerationcommittee keeping in mind their contribution to the growth of the company the financialposition of the company prevailing industry norms provisions of the Companies Act 2013and as approved by the board of directors and members of the company from time to time.
The independent directors of the company are highly qualified and stalwarts in theirrespective field with wide and varied experience. They actively participate in thediscussions at the board meeting and their suggestions have helped the company to grow ata rapid pace. The independent directors are paid sitting fees for attending the board andcommittee meetings. The nomination and remuneration committee has in place their criteriafor determination of qualifications positive attributes and independence of thedirectors which they have considered for the appointment of the new independent directorsand reappointment of independent directors for the second term of consecutive five years.
Pursuant to the provisions of Companies Act 2013 and SEBI (LODR) Regulations 2015the board has carried out an evaluation of its own performance the performance ofdirectors individually as well as the evaluation of working of its audit committeenomination and remuneration committee stakeholders relationship committee and corporatesocial responsibility committee. The manner in which the evaluation has been carried outhas been explained in the corporate governance report. The manner in which theremuneration is paid to the directors executive directors and senior level executives ofthe company has also been explained in the corporate governance report.
During the year under review 5 board meetings 4 audit committee meetings and 1meeting of independent directors were convened and held the details of which are given inthe corporate governance report. The intervening gap between the meetings was within theperiod prescribed under the Companies Act 2013.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to the provisions of Section 134 (5) of the Companies Act 2013 your directorswould like to state that:
(i) in the preparation of the annual accounts the applicable accounting standards havebeen followed;
(ii) the directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company at the end of the financial year as on 31stMarch 2021 and of the profit of the company for that period;
(iii) the directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Companies Act 2013for safeguarding the assets of the company and for preventing and detecting fraud andother irregularities;
(iv) the directors have prepared the annual accounts on a "going concern"basis;
(v) the directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively; and
(vi) the directors had devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.
EXTRACT OF ANNUAL RETURN AND OTHER DISCLOSURES UNDER COMPANIES (APPOINTMENT ANDREMUNERATION) RULES 2014 :
In terms of Section 92(3) of the Companies Act 2013 and Rule 12 of the Companies(Management and Administration) Rules 2014 the annual return of the company is availableon the website of the company at the link : https:\\sayajigroup.in\annualreport2021.