The Directors present herein the Twenty - Seventh Annual Report on the
operations of your Company and the Audited Statement of accounts for
the year ended 31st March 2014.
Financial Results (Rs. in Crores)
Particulars Ended Ended
Total Revenue 525.97 580.37
Profit before Interest,
Depreciation and Tax 51.20 94.65
Finance Charges 65.47 53.63
Depreciation 28.69 24.01
Profit / (Loss) before Tax (42.96) 17.01
Deferred Tax-Asset/(Liability) 9.17 (4.80)
Profit / (Loss) After Tax (33.79) 12.21
Dividend - 2.94
Dividend Tax - 0.50
Transfer to General Reserve - 2.00
Brought forward from last year 59.81 53.04
Balance carried forward to
Balance Sheet 26.02 59.81
The total income for the year was Rs. 525.97 crores as against
Rs.580.37crores in the previous year. The reduction in the income as
compared to the previous year was mainly on account of reduced free
sugar sales and lower volume of exports. The Gross Operating Profit has
come down to Rs. 51.20 Crores from Rs.94.65 crores in the previous
year. The reduction in the G.O.P was mainly on account of increase in
the cane cost by Rs.128 per MT and reduction in the average sugar
recovery to 8.65 % as against 9.08% in the previous year. Consequently
the operation has resulted in a Cash loss of Rs 14.27 Crores as against
the profit of Rs. 41.02 crores in the previous year. The loss after
Depreciation & Interest was Rs. 42.96 crores as against the profit of
Rs.17.01 crores in the previous year. The Net loss after taking credit
for deferred tax amount of Rs.9.17 Crores, works out Rs.33.79 crores as
against the profit of Rs.12.21 crores in the previous year.
Sugar: During the year under review, the company has achieved a
crushing of 16.14 lakh tons of cane as against 22.69 lakh tons of cane
in the previous year.
The decrease in cane crushing is mainly due to reduced availability of
cane at our cane command area on account of drought. The total sugar
production was 14.00 Lakh Qtls as against 20.52 lakh Qtls in the
previous year. The total sugar sold was 14.00 lakh qtls as against
16.15 lakh qtls in the previous year. The reduction in the sales was
mainly on account of reduced free sugar sales and lower volume of
exports. During the year, the Company has exported 0.31 lakh Qtls of
sugar as against 7.81 lakh Qtls of sugar in the previous year. The
Average realization for the year 2013- 14 was higher at Rs.2970/Qtl as
against Rs.2950/Qtl in the previous year.
Power: During this period, the total power generation was 1345.90 lakh
units as against 1761.67 lakh units in the previous year. The export to
the TNEB grid was 828.54 lakh units as against 1123.12 lakh units in
the previous year. The reduction in the power generation and export was
due to lower volume of cane crushing at 16.14 Lakh Qtls as against
22.69 lakh qtls crushed in the previous year. Further the average
realization per unit has come down to Rs.3.89 /unit as against Rs.4.06/
unit in the previous year resulting in reduction in the income by
Rs.1.40 crores. On account of this, total value of the power exported
to the grid has decreased to Rs.32.19 crores from Rs 45.55 crores in
the previous year.
Industrial Alcohol: The production of industrial Alcohol was 218.87
lakh liters as against 220.07 lakh liters in the previous year. The
Alcohol sale was 210.86 lakh liters as against 208.52 lakh liters in
the previous year. The average realization was Rs. 35.45/ ltr as
against Rs.24.09 /ltr in the previous year. Consequent to this, the
Alcohol sales volume has increased to Rs.75.75 crores as against
Rs.50.41 crores in the previous year.
Due to absence of profits in the current year, the Board of Directors
is unable to recommend any dividend for the year 2013-14.
During the year, your Company has not transferred any amount to General
Reserves account due to loss for the year 2013-14.
A sum of Rs. 6.45 lakhs was collected as deposits during the year
2013-2014. Your Company has complied with the provisions of Section 58
(A) and 58 (AA) of the Companies Act, 1956 and the rules prescribed
thereunder. Your Company has no unpaid deposits which were due or
repayable as on 31st March 2014. Your Company has not defaulted in
repayment of the deposits on the due dates. As on the date of this
report, there are no unclaimed deposits.
The Auditors of the Company M/s Srinivasan and Shankar, Chartered
Accountants, Chennai retire at the close of the ensuing Annual General
Meeting and are eligible for re-appointment. They have conveyed their
consent for re-appointment and have furnished the required declaration
under Sec. 224 of the Companies Act,1956.
The Company has received the approval of the Central Government for
re-appointment of Mr. V Srinivasan, as Cost Auditor to carry out the
Cost Audit for the Financial Year 2013-14.
The Company has devised proper systems to ensure compliance of all laws
applicable to the Company.
Dr K N Sivasubramanian is retiring by rotation at the ensuing Annual
General Meeting and is eligible for re- appointment.
Mr A Sennimalai is retiring by rotation at the ensuing Annual General
Meeting and is eligible for re- appointment.
Mr T Pitchandi was inducted as Additional Director with effect from
23.09.2013. His term of office comes to a close at this Annual General
Meeting. His name is being proposed for regular appointment as an
Dr Palani G Periasamy whose term of office as Whole time
Director/Executive Chairman comes to a close on 25.06.2014 is being
reappointed in the same capacity for a further period of 5 years.
Directors'' Responsibility Statement
In terms of Section 217 (2AA) of the Companies Act, 1956 your Directors
confirm as follows.
(i) that in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures.
(ii) that the directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the company at the end of the financial year and of the
profit or loss of the company for that period.
(iii) that the directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities.
(iv) that the directors have prepared the annual accounts on a going
A report on Corporate Governance and a management discussion and
analysis report, in line with SEBI prescribed format incorporated in
the Listing Agreement, are attached herewith. A certificate from the
Statutory Auditors on compliance of conditions of Corporate Governance
has been obtained and copy enclosed to this report.
Particulars of Employees.
Under the provisions of Section 217 2(A)(a) of the Company''s Act 1956
read with Companies (particulars of employees) Rules, 1975 as amended,
the names and other particulars of employees are set out below:
A. Employed throughout the year ended 31st March, 2014 and was in
receipt of remuneration aggregating not less than Rs.60,00,000/- per
annum. - NIL -
B. Employed for part of the year ended 31st March 2014 and was in
receipt of remuneration aggregating not less than Rs 5,00,000/- per
month. - NIL -
Energy, Technology and Foreign Exchange
Information relating to the conservation of energy, technology
absorption and foreign exchange earnings and outgo as required to be
furnished under the provisions of Section 217 (1) (e) of the Companies
Act, 1956, read with Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules 1988 is given as Annexure I to this
The Board of Directors places on record its appreciation of the
support, assistance and co- operation received from the Central
Government, Government of Tamil Nadu, various governmental agencies,
ICICI Bank Limited, IREDA, the Company''s bankers, Indian Bank, State
Bank of India, The South Indian Bank Limited, Bank of India, Central
Bank of India, The Federal Bank Limited, Union Bank of India, IDBI Bank
Ltd and Indian Overseas Bank.
The Board of Directors also wishes to place on record its appreciation
for the cane growers, without whose help and support it could not have
achieved the progress that has been made so far. With our encouragement
and their initiative, we hope for improved cane availability for the
Your Directors are thankful to the employees of the Company for their
wholehearted co-operation and unstinted dedication to duty leading to
cordial industrial relations during the year under review.
The Board is thankful and grateful for the continuing co-operation to
the management from the shareholders family since inception and is
confident that this partnership will sustain forever.
for and on behalf of the Board of Directors
DR. PALANI G. PERIASAMY
Place: Chennai - 34