The Directors have pleasure in presenting the Annual Report and the
 Audited Accounts of the Company for the financial year ended 30th June,
 2012:
 
 FINANCIAL RESULTS: 
 
                                                   (Rs. in Lacs)
                                             2011-12         2010-11
 
 Sales & Other Income                        1135.73         1302.41
 
 Profit / (Loss) before Interest, 
 Depreciation and Tax                         843.75         1220.83
 
 Less: Interest                               124.85          166.47
 
 Depreciation                                 344.00          925.57
 
 Profit/(Loss) before tax                     374.91          128.79
 
 Add/Less: Balance brought forward 
 from previous year                           905.87          777.08  
 
 Profit available for appropriation          1280.78          905.87
 
 APPROPRIATIONS
 
 Transfer to General Reserve                      -              -
 
 Balance (Loss) carried to Balance Sheet     1280.78          905.87
 
 PERFORMANCE AND FUTURE PROGRAMMES:
 
 During the year under review, total income stood at Rs. 1135.73 lacs,
 compared to Rs.1302.41 lacs in the previous year 2010-11. Total Income
 includes, inter alia, Profit on Sale of Fixed Assets amounting to Rs.
 656.28 lacs. Sales and Block Usage Charges stood at Rs.213.92 lacs and
 Rs 265 53 lacs as against Rs.98.08 lacs and Rs.441.44 lacs,
 respectively, during the immediately preceding financial year. Net
 Profit stood at Rs.374.91 lacs, compared to Rs.128.79 lacs during the
 previous financial year 2010-11.
 
 Directors have been actively considering entering in to new activities
 for increasing company''s business To begin with your Directors have
 actively been considering setting-up of a Distillery Project.
 Preliminary work of project report and land identification is under
 finahsation.
 
 DIVIDEND:
 
 Considering funds required for increasing business of the Company and
 also considering the requirement for strengthening its financial
 positions, your Directors do not recommend any dividend for the year.
 
 DIRECTORS:
 
 Mr. R. C. Jha & Mr. D. Y. Manawwar retires at the conclusion of ensuing
 Annual General Meeting and being eligible offer himself for
 re-appointment.
 
 AUDITORS:
 
 The Auditors of the company M/s Vivek Jaiswal & Co., Chartered
 Accountants, hold office until the conclusion of the ensuing Annual
 General Meeting and are recommended for re-appointment.
 
 Certificate from Auditors has been received to the effect that their
 appointment, if made, would be within the limit prescribed under
 section 224(1 B) of the Companies Act, 1956.  Notes forming part of
 accounts, which are specifically referred to by the Auditors in their
 report, are self explanatory and, therefore, do not call for any
 further comments.
 
 FIXED DEPOSITS:
 
 During the year under review, the Company has not accepted public
 deposits under section 58-A of the Companies Act, 1956.
 
 DE-MATERIALISATION OF SHARES:
 
 The Company''s equity shares are available for de-materialization on
 both the depositories, viz., NSDL & CDSL Shareholders may be aware that
 SEBI has made trading in your Company''s shares mandatory, in
 de-materialized form. As on 30th June, 2012, 8635300 equity shares
 representing 71.96% of your Company''s Equity Share Capital have been
 de-materialized.
 
 LISTING AT STOCK EXCHANGE:
 
 The Shares of the Company are listed on Bombay Stock Exchange, Mumbai
 and National Stock Exchange of India Ltd. The Company has not paid
 annual listing fee to the Bombay Stock Exchange, National Stock
 Exchange for the year 2012-13. The shares at National Stock Exchange
 are still suspended for trading and efforts are being put for
 revocation of the suspension.
 
 STATUTORY INFORMATION:
 
 - There are no employees covered by the provisions of Section 217(2A)
 of the Companies Act, 1956, read with the Companies (Particulars of
 Employees) Rules, 1975.
 
 - During the year under review, the Company has not carried out any
 manufacturing activity Therefore, there are no particulars to be
 disclosed as per the Companies (Disclosures of Particulars in the
 Report of the Board of Directors) rules, 1988.
 
 - The company had no foreign exchange earnings and outgo during the year
 under report.
 
 - Certificate received from the Auditors of the Company regarding
 Compliance of conditions of
 
 - Corporate Governance, as required under clause 49 VII of the Listing
 Agreement, is annexed and forms part of this report.
 
 - As required under 49 IV F of the Listing Agreement, Management
 Discussion and Analysis Report is annexed and forms part of this
 report.
 
 DIRECTOR'' RESPONSIBILITY STATEMENT:
 
 Pursuant to provisions of section 217(2AA) of the Companies Act, 1956,
 your Directors confirm that:
 
 - In the preparation of the Annual Accounts for the year ended 30hJune,
 2012 the applicable accounting standards had been followed long with
 proper explanation relating to material departures;
 
 - 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 financials year and the loss of the
 company for the year under review
 
 - The Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the assets of
 the Company and for preventing, and detecting fraud and other
 regularities; and
 
 - The Directors have prepared the annual accounts on a going concern
 basis.
 
 EMPLOYEE RELATIONS:
 
 During the year under review, the relations between the Management and
 the workmen were highly cordial.
 
 INVESTOR RELATIONS:
 
 Your Company always endeavors to keep the time of response to
 Shareholders'' requests/grievance at the minimum. Priority is accorded
 to address all the issues raised by the Shareholders and provide them a
 satisfactory reply at the earliest possible time. The Shareholders''
 Grievance Committee of the Board meets periodically and reviews the
 status of the redressed of Shareholders'' Grievances. The Shares of the
 Company continue to be traded in Electronic Form and the De-
 materialization arrangement exists with both the depositories, viz.,
 National Depository Limited and Central Depository Services (India)
 Limited.
 
 ACKNOWLEDGEMENT:
 
 Yours Directors wish to place on record the sincere and dedicated
 efforts of all the members of the Company'' team which has throughout
 the year remained active. Your Directors also take this opportunity to
 offer their sincere thanks to Financial Institutions, Banks, other
 Government Agencies, our valued customers and the investors for their
 continued support an assistance. The employees of your Company
 continued to display their unstinted devotion, co-operation. Your
 Directors take this opportunity to record their appreciation for the
 same. Your Directors also express their profound thanks to the
 Shareholders fr their faith and continued support to the endeavors of
 the Company.
 
                                             By order of the Board
 
                                For Eastern Sugar & Industries Ltd.
 
 Place : Kolkata                                       (B.K.Nopany)
 
 Dated : 29th November, 2012                              Chairman