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Western Orissa Sugar Ltd.

BSE: 507462 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Western Orissa Sugar Ltd
NSE 05:30 | 01 Jan Western Orissa Sugar Ltd

Western Orissa Sugar Ltd. (WESTERNORISSUG) - Director Report

Company director report

ANNUAL REPORT 1998-99 WESTERN ORISSA SUGAR LIMITED DIRECTORS' REPORT To The Members, Your Director have pleasure in presenting their 8th Annual Report together with Audited Accounts for the year ended 31st March,1999. SUGAR SEASON 1998-99 Even though there was general slowdown in the economy as a whole, your Company was able to registering a growth in production of about 95% over the previous year. Crushing operation commenced on 10th Jan,1999 and ended on 7th April 1999. The operational figures of the season. 1998-99 1997-98 Duration of the season (Days) 88 110 Cane Crushed (MT) 51000 28785 Average Recovery (%) 8.36 8.30 Sugar Production (MT) 4710 2471 Capacity Utilised (%) 17 9.65 Your Directors are optimistic about the future growth and the potential of the sugar plant. Availability of cane, one of the main constraints faced by the Company in not achieving optimum capacity utilisation, is expected to ease. The completion of the Upper Indravati Project will result in an increase in irrigated land in the near vicinity of the plant. The Tissue Culture Laboratory will substantially aid in the growth of high yielding Sugar Cane, enabling the Company to procure adequate quantity of qualitative cane in the future years. There is an increased willingness by the farmers in the surrounding areas of the Companys unit to cultivate cane, in view of the irrigation facilities in the area and timely realisations from cane. Your Directors expect to-procure about 1.5 lacs MT of Sugar cane during the forthcoming crushing season. The Rehabilation package which has already been submitted to the Bankers is under their active consideration and likely to be finalised very soon. CANE AND SUGAR POLICY The Statutory Minimum Cane price (SMP) for the season 1998-99 was increased to Rs 52.70 per quintal linked with basic recovery of 8.5%. However the State Advisory Prices (SAP) as directed by the Govt of Orissa vide its Notification No. FG- 111-5/98-34988 dt 8.12.98 remain unchanged at Rs 75.00 per quintal .Your Company has paid in full all dues of the cane growers and transporters till date. In addition your Company is only Agro based industry in the State of Orissa or even may be in the Country to introduce two insurance scheme as under for the benefit of cane growing farmers as under: (a) Individual insurance covers of Rs 20,000 against accidental death for one year of all cane supplying farmers (b) Cane Crop Insurance against damage to the crop from the date of plantation till harvesting to the extent value of input as per the Company norms. ENVIRONMENTAL SAFETY The Company since inception commissioned its Effluent Treatment Plant and continues its environmental friendly approach. Continuous improvements are made in the process and equipments to minimise pollutants in the vicinity of the plant. LISTING FEES Due to under utilization of capacity as well as financial crunch your Company is unable to pay the listing fees on time to the Stock Exchanges. However, after the formulation of rehabilation package your Company will Pay all the dues of the Exchanges and the securities of the Company will continue to be listed at the Bhubaneswar Exchange. FIXED DEPOSITS During the year the Company has not accepted/renewed any fixed deposit from the public in terms of Sec 58A of the Companies Act 1956. During the year a sum of Rs 1.66 lacs has been repaid to Deposit holders against their claims of maturity with interest. There are no overdue deposits other than unclaimed deposits. DIRECTORS Lt. Col. (Retd) Vinayak Nalawade resigned from the Board during the year. Your Directors place on record his appreciation for the services rendered by Lt.Col.(Retd) Vinayak Nalawade. Industrial Promotion & Investment Corporation of Orissa Limited (IPICOL) nominated Mr U.N.Behera Managing Director of IPlCOL on the Board of the Company. In the interim, Mr.R. Balakrishnan, Managing Director of IPICOL was nominated on the Board of the Company in place of Mr A.P.Padhi. Nomination of Mr R.N.Rath from the Board of Directors was withdrawn by IPICOL during the year. Mrs Neelam Kolhatkar, retires by rotation at the ensuing Annual General Meeting, and being eligible offers herself for re-appointment. Mr Sanjay Kolhatkar was redesignated as Chairman and Managing Director of the Company with effect from 8 November 1999 for a period of five years. Mr Sumeet Mehta was appointed as Executive Director for a period of five years with effect from 15 September 1999 on the terms and conditions as approved by the Board of Directors. The approval of the Members is now being sought at the 8th AGM for the appointment and payment of remuneration to Mr Sanjay Kolhatkar as Chairman and Managing Director and Mr Sumeet Mehta as Executive Director of the Company. AUDITORS M/s N.N.Das & Co. Chartered Accountants Calcutta, Auditors of the Company retire at the ensuing Annual General Meeting and being eligible offer themselves for reappointment. PARTICULARS OF EMPLOYEES There are no employees in respect of whom information under Section 217 (2A) of the Companies Act 1956 is applicable. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO Information pertaining to conservation of energy, technology absorption and foreign exchange earnings and outgo, pursuant to section 217(1)e of the Companies Act,1956 have been given under annexure, forming an integral part of this Report. INDUSTRIAL RELATIONS Relations during the year with the Executives, Staff and the Employees of the Company were normal. ACKNOWLEDGEMENT Your Directors are thankful to the managements of State Bank of India/Bank of India for providing fresh working capital for the season of 1998-99. Your Directors thank to the Debenture holders for their active support to the rehabilation package by consenting to the reshedulement proposed by the Company . Your Directors also wish to express their appreciation for the support and contribution extended by the Shareholders, Fixed deposit holders, Cane growers, Transporters and contractors, Customers, Financial Institutions, State & District Co-operative Banks, Central & State Government Authorities, for their active support and co-operation in the revival of the Company. For and on behalf of the Board of Directors Sanjay Kolhatkar Chairman and Managing Director Place: Nandanvan, Orissa Date : 27 November,1999. ANNEXURE TO DIRECTORS REPORT FORM -A RESEARCH AND DEVELOPMENT 1. Specific areas in which R&D carried out by the Company. AGRICULTURAL DEVELOPMENT a. Heat treatment Therapy to treat Sugar cane seeds. b. Multiplication of foundation cane seeds by rearing of Nurseries. c. Pest control Measures to protect sugar cane from diseases. d. Ratoon management for Sugar cane crops . e. Drip Irrigation. f. Development of cab\new seed plant in Tissue Culture Laboratory. 2. Benefits derived as result of above R&D: Availability of high yielding disease free cane to the Company and higher financial return to the Cane Growers. 3. Future plan of action a. Continuous research of better yielding disease-free variety of cane b. Setting up of a Biological Control Laboratory . c. Expansion of Tissue culture laboratory. 4. Expenditure on R & D a. Capital : Rs 10.00 lacs b. Recurring : Rs 5.00 lacs approx c. Total : Rs 15.00 lacs approx TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION 1. Efforts, in brief, made towards technology absorption, adaptation and innovation: The Research & Development Department and Technical Personnel keep themselves abreast of the technical developments and innovations relating to the Company s product and continuous efforts are made for improvement in operations for better quality and cost effectiveness 2. Benefits derived as a result of the above efforts e.g. product improvement, cost reduction, product development import substitution etc.: Benefits will be known after three of four planting sessions. 3. In case of imported technology(imported during the last 5 years reckoned from the beginning of the financial year) No imported technology used. FOREIGN EXCHANGE EARNINGS AND OUTGO: Nil.