Dharani Sugars and Chemicals Directors Report, Dharani Sugars Reports by Directors
Dharani Sugars and Chemicals
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Directors Report Year End : Mar '14    « Mar 13
Dear Members,
 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)
                                          Year             Year
 Particulars                              Ended            Ended
                                          31.03.2014       31.03.2013
 Total Revenue                                525.97           580.37
 Profit before Interest,
 Depreciation and Tax                          51.20            94.65
 Interest and
 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
 Financial Performance
 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.
 Fixed Deposits
 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.
 Cost Audit
 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
 independent Director.
 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
 concern basis.
 Corporate Governance
 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
 ensuing years.
 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
 Date: 29.05.2014
Source : Dion Global Solutions Limited
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