Election 2014
Khaitan (India) Directors Report, Khaitan Reports by Directors
Khaitan (India)
BSE: 590068|NSE: KHAITANLTD|ISIN: INE731C01018|SECTOR: Trading
, 16:01
Mar 25, 16:01
Directors Report Year End : Mar '13    Mar 12
 The Directors have pleasure in presenting their Seventy Sixth Annual
 Report together with the Audited Accounts for the year ended 31st
 March, 2013.
 FINANCIAL RESULTS                      2012-13     2011-12
 Sales & Operating Income were          2544.10     2595.42
 Profit/Loss for the year was            (41.47)     (64.85)
 From which is deducted
 Depreciation                           (147.00)    (138.65)
 Leaving a Balance of                   (188.47)    (203.50)
 Profit/Loss Brought Forward
 from Previous Years                    (478.96)    (275.46)
 Making an available surplus 
 of which is carried
 forward to next year                   (667.43)    (478.96)
 In view of loss, Directors do not recommend any dividend for the year.
 Performance of all the Divisions are as under:
 Marketing Division : The Company has earned royalty of Rs.540.16 lacs
 compared to the last year''s Rs.519.53 lacs.
 Sugar Division : Although the crushing of sugarcane was lower to 5.38
 lacs quintals compared to last year''s 5.63 lacs quintals, the
 production of sugar was almost at par at a higher recovery of 8.33%
 compared to last year''s 8.10%. Due to abnormal rise in sugarcane prices
 and other inputs it has resulted in loss during the year under review.
 The Crushing Operations for the season 2012-13 started on 26th
 November, 2012 which was continued for 63 days compared to the last
 year''s 68 days. Performance of the Sugar Division compared to last year
 is as under:
 DETAILS                       2012-2013     2011-2012
 Start of Crushing Season     26.11.2012    08.12.2011
 Close of Crushing Season     28.01.2013    14.02.2012
 Cane Crushed (in lacs Qtls)        5.35          5.63
 Recovery (%)                        8.3          8.10
 Sugar Production (in Qtls)       42,518        42,802
 Sugarcane is a agro product and is fully dependent on nature. As
 reported last year, supply from captive farms was less due to
 insufficient rain during the growth period of sugarcane. The supply of
 sugarcane from captive farms to the factory was less compared to last
 year.  Keeping in view the long term benefit, the company every year
 plants trees. This year about 25,000 trees were planted and about
 315000 trees are standing as on 31.03.2013 planted by the Company in
 last 22 years.
 The year 2012-13 was also not good for the sugar industry. Due to
 overall increase in cost of raw material and other inputs, the cost of
 production was much higher than the prevailing market prices of sugar.
 Even inspite of repeated news of decontrol of sugar, the financial year
 2012-13 has sustained the burnt of Government''s continued controls
 through release mechanism of sugar sale and levy sugar. The aforesaid
 constraints has badly effected the financial health of the industry.
 During the year under review, due to draught situation the production
 of sugar was 24.5 million tons compared to last year 26 million tons.
 Due to low international price, export during 2012-13 was only 60000
 tons in comparison to last years 34 lac tons. At last, the Government
 had allowed partial decontrol of sugar sector. It has rescinded the
 control over sugar sale of the industry and 10% levy obligation but
 with this partial decontrol it has failed to improve the financial
 health of the sugar industry and to provide relief. The sugar industry
 is facing much financial crunch due to high cost of sugar production on
 account of high sugarcane prices and low sugar prices in the market.
 The Government should unshackle sugar industry completely and remove
 the remaining controls enjoyed on sugar.
 Internal Control Systems : The Company has a well-defined
 organisational structure, authority levels, guidelines and manuals
 which provides adequate internal control systems at all levels to
 conduct business operations efficiently and to safeguard Company''s
 assets. The Company also has adequate budgetary control system and
 actual performance is monitored by the management consistently.
 Human Resources : The Company believes that its employees are a vital
 resource in the current business environment. The Company is enjoying
 good and congenial industrial relations at all the Divisions of the
 Company. As on 31st March, 2013 the total permanent employees were 83
 Marketing Division : The Company is the owner of Khaitan Brand and
 will earn income from royalty.
 Sugar Division : Due to intermittent rains, the sugarcane crop
 condition seems to be better and it is hoped that availability of
 sugarcane will be better in the year 2013-14. The Government has
 released partial control over sugar industry, it is hoped that the
 market prices will support on margins despite higher input cost.
 Agriculture Division : Sugarcane is the only raw material for sugar
 industry. By this time there are adequate rains, yield during the sugar
 season 2013-14 will be better resulting in better supply of sugarcane
 to factory. However, weather conditions can''t be predicted. A
 significant change in climatic conditions can affect yield, recovery
 and profitability.
 Risks & Concerns : Being cyclical in nature, sugar price remains
 volatile and realisations get adversely affected during a downturn
 coupled with higher cane price affect the financial position.
 Procurement of funds to meet working capital requirements and the
 payment of interest and principal with respect to loans availed. The
 other associated risk is soaring interest rates.
 As Agriculture Division is exposed to nature and as such sugarcane
 cultivation is monsoon dependant, significant variation in climatic
 conditions can affect yield and recovery.
 Fixed Deposits: Fixed Deposits from the public and employees accepted
 by the Company stood nil as on 31st March, 2013.
 Auditors'' Report : The Notes to the Accounts referred to in the
 Auditors'' Report are self- explanatory and do not call for any further
 explanation. However, due to financial constraints and adverse
 condition of Sugar Industry instalments to financial institutions and
 other payments were delayed.
 Directors'' Responsibility Statement:
 The Board of Directors of your Company confirm:
 1.  That in the preparation of the annual accounts, the applicable
 accounting standards had been followed excepts AS-22;
 2.  That the Directors had selected such accounting policies and
 applied them consistently and made judgements 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 of the Company for that period;
 3.  That the Directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 safeguarding the assets of the
 Company and for preventing and detecting fraud and other
 4.  That the Directors had prepared the annual accounts on a going
 concern basis.  Corporate Governance Report: A separate report on
 Corporate Governance is incorporated as a part of the Annual Report and
 the Auditors'' Certificate on compliance under Clause 49 of the Listing
 Agreement is annexed to the said report.
 1.  Mr. S. K. Khaitan the Chairman of the company left for heavenly
 abode on Sunday the 04th November, 2012. Due to his dynamism and
 foresightedness, the Khaitan brand became the world renowed and a
 household name. His enterprenural acumen has set a path to take the
 organization to new height. His style of functioning will always be a
 inspiration for future.
 2.  Mr. Sunil K Khaitan was elected to be the Chairman of the Company.
 3.  Dr. V. K. Rungta and Mr. A. K. Kedia retire by rotation at the
 ensuing Annual General Meeting and being eligible, offer themselves for
 Cost Auditors : In compliance to the Central Government Order your
 Board has appointed M/s A B & Co. qualified Cost Accountants to carry
 out Cost Audit of the Cost Accounts maintained by the Company in
 respect of Sugar Division. This appointment has to be made at the
 beginning of each financial year. As such an application has already
 been forwarded to the Central Government to approve the appointment for
 the current financial year.  Auditors : M/s Chaturvedi & Co. Chartered
 Accountants retire at the ensuing Annual General Meeting and are
 eligible for re-appointment.
 Personnel : Particulars of employees as required under Section 217 (2A)
 of the Companies Act, 1956 are not required as no one is getting
 Rs.60,00,000/- a year or Rs.5,00,000/- per month employed for part of
 the year.
 Other Information : The particulars prescribed by the Companies
 (Disclosure of Particulars in the Report of Board of Directors) Rules,
 1988 are furnished in the Annexure to the Report.  Acknowledgement:
 Your Directors place on record their appreciation for the continued co-
 operation and support extended by the Government of West Bengal, IDBI,
 Bank of Baroda, Cane Growers, Suppliers, Dealers, Depositors and the
                                For and on behalf of the Board
 Kolkata Sunil                  K. Khaitan
 the 7th June, 2013             Chairman
Source : Dion Global Solutions Limited
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