The Directors present herein the Twenty-Sixth Annual Report on the
operations of your Company and the Audited Statement of accounts for
the year ended 31st March 2013.
(Rs. in Crores)
Particulars Ended Ended
Total Revenue 580.37 615.97
Profit before Interest,
Depreciation and Tax 94.54 85.58
Finance Charges 53.63 48.75
Depreciation 24.01 20.75
Profit/(Loss) before Tax 16.90 16.08
Tax Expense (4.80) (5.94)
Amortization of USAID Grant 0.11 0.11
Profit/(Loss) After Tax 12.21 10.25
Dividend 2.94 2.94
Dividend Tax 0.50 0.47
Transfer to General Reserve 2.00 2.00
Brought forward from
last year 53.04 48.20
Balance carried forward to
Balance Sheet 59.81 53.04
Sugar: During the year under review, the Company has achieved a record
high crushing of 22.69 lakh tonnes of cane as against 19.08 lakh tonnes
of cane in the previous year. The increase in cane crushing is mainly
due to increased availability of cane at Polur and Sankarapuram units
on account of better monsoon in the previous year. The total sugar
production was 20.52 Lakh Qtls as against 18.14 Lakh Qtls in the
previous year. The total sugar sold was 16.15 lakh qtls as against
18.62 Lakh qtls in the previous year. The reduction in the sales was
mainly on account of the reduced free sugar allotment and lower volume
of exports. During the year, the Company has exported 7.81 lakh Qtls of
sugar as against 8.16 lakh Qtls of sugar in the previous year. The
average realization for the year 2012-13 was higher at Rs.2950/Qtl as
against Rs.2796/Qtl in the previous year.
Power: During the year, the total power generation was 1761.67 lakh
units as against 1728.51 lakh units in the previous year. The export to
the TNEB grid was 1123.12 lakh units as against 1181.96 lakh units in
the previous year. The total value of the power exported to the grid
has decreased to Rs.45.55 crores from Rs 48.49 crores in the previous
year mainly on account of reduced tariff and marginal reduction in
Industrial Alcohol: The production of industrial Alcohol was 220.07
lakh litres as against 147.19 lakh litres in the previous year. The
increase in the production was mainly on account of the distillery
plant at Kalayanallur Unit III. The Company was able to sell the entire
production of Alcohol and the sale was 208.52 lakh litre as against
155.57 lakh litres in the previous year. Consequent to this, the
Alcohol sales value has increased to Rs.50.41 crores as against
Rs.38.06 crores in the previous year. The average realization was Rs.
24.09/ litre as against Rs.24.42 /litre in the previous year. The price
of alcohol has come down on account of import of alcohol by the IMFL
units from the neighbouring states.
The total income for the year was Rs.580.37 crores as against Rs.615.97
crores in the previous year. The reduction in the income as compared
to the previous year was mainly on account of the reduced free sugar
allotment and lower volume of exports. The Gross Operating Profit has
however increased to Rs.94.54 crores from Rs.85.58 crores. The Cash
profit has also increased to Rs.40.91 crores as against Rs.36.83 crores
in the previous year. The profit after Depreciation has increased to
Rs.16.90 crores from Rs.16.08 crores in the previous year. The Net
profit after tax works out to Rs.12.21 crores as against Rs.10.25
crores in the previous year.
Your Directors are pleased to recommend a dividend of Re.1.00 per
Equity share of Rs.10/- each for the financial year ended 31st March
2013, which will involve a pay out of Rs.293.90 lakhs, besides dividend
distribution tax of Rs.49.95 lakhs
During the year, your Company has transferred a sum of Rs. 200.00 lakhs
to General Reserves account.
A sum of Rs. 14.34 lakhs was collected as deposits during the year
2012-2013. Your Company has complied with the provisions of Section 58
(A) and 58 (AA) of the Companies Act, 1956 and the rules prescribed
there under. Your Company has no unpaid deposits which were due or
repayable as on 31st March 2013. 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 reappointment and have furnished the required declaration
under Sec. 224 of the Companies Act.
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 2012-13.
The Company has devised proper systems to ensure compliance of all laws
applicable to the Company.
Mr P S Gopalakrishnan is retiring by rotation at the ensuing Annual
General Meeting and is eligible for re-appointment.
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:
1. The nature of employment is contractual. The appointment is for a
period of 5 years from 25.06.2009 to 24.06.2014 and approval has been
obtained from Government of India.
2. Remuneration as shown above includes salary, allowances, leave
travel assistance, plus commission @3% of the net profit.
3. Remuneration as shown above does not include amount attributable to
compensated absences as actuarial valuation is done for the company as
a whole only.
4. He is not related to any Director of the Company.
B) Employed for part of the year ended 31st March 2013 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
Date : 30.05.2013