The Directors have pleasure in presenting the 40th Annual Report along
with the audited accounts for the year ended 31st March, 2012.
The financial performance of the Company, for the year ended 31st
March, 2012 is summarised below:
(Rs. in lakhs)
12 months ended 12 months ended
31st March, 2012 31st March, 2011
Turnover/Income (Gross) 119,989.19 123,217.70
Profit before Finance charges,
Depreciation and Taxation 29,169.24 37,373.16
Less: Finance charges
(excluding amount capitalised) 1,610.13 2,159.07
Profit before Depreciation
and Taxation 27,559.11 35,214.09
Less : Depreciation 4,731.44 4,584.89
Profit for the year after
Depreciation 22,827.67 30,629.20
Less : Provision for taxation
- Current tax 4,610.00 5,675.00
- Deferred tax 1,408.00 39.56
- Tax of earlier years - 191.01
- MAT credit entitlement (1,271.00) (5,655.00)
Profit after Tax 18,080.67 30,378.63
Balance brought forward from
last year 91,593.59 77,175.40
Transfer from Contingency Reserve 8,100.00 -
Excess provision of dividend
written back 982.08 -
Profit available for Appropriation 118,756.34 107,554.03
Dividend on Equity Share Capital 3,372.57 5,128.47
Corporate Dividend Tax 547.12 831.97
General Reserve 5,000.00 10,000.00
Surplus carried to Balance Sheet 109,836.65 91,593.59
REVIEW OF OPERATIONS The financial year 2012 was marked by global
economic slowdown, having an adverse effect across sectors, especially
on infrastructure related industries like power and steel. The
situation was further aggravated on account of higher fuel costs,
reduced availability of domestic coal, bottlenecks in rail connectivity
and steep depreciation of Indian rupee versus US$. The deteriorating
financial position of state power utilities forced them to adopt a
cautious demand management thus depriving merchant power developers a
viable market price. Your Company''s performance in this backdrop could
be considered reasonable notwithstanding the external pressures in the
form of strife in Andhra Pradesh and imposition of restrictions on open
access in Odisha, impacting power volumes significantly during FY2012.
The flexibility to use power for captive consumption enabled the
Company to sustain profitability.
Members will note that the turnover of the Company decreased by 2.62%
to Rs. 119,989.19 lakhs in FY 2012 while profit before tax and after tax
registered decreases by 25.47% and 40.48% at Rs. 22,827.67 lakhs and Rs.
18,080.67 lakhs respectively, reflecting the effect, mostly of external
factors on the operations and margins of the Company.
INDIAN OPERATIONS & PROJECTS
The Company''s power plants in A.P. and Odisha have a total installed
capacity of 228 MW.
The 114 MW power plant at Paloncha generated gross energy of 886.59 MU
at a PLF of 89%. After meeting the requirements for auxiliary and
captive consumptions, 532.26 MU were sold. The power plant operated at
sub-optimum level for part of the year due to shortage of coal on
account of Telengana agitation and replacement of Generator
The 94 MW power plant in Odisha generated gross energy of 537.95 MU at
a PLF of 65%. After meeting the requirements for auxiliary and captive
consumption, 372.41 MU were sold. The operation of the power plant was
impacted by planned turbine maintenance and stoppage of generation of
the 64 MW Unit for over three months owing to imposition of Section 11
of the Electricity Act by the Govt. of Odisha, which led to
un-remunerative tariff from GRIDCO.
The 20 MW power plant at Dharmavaram, A.P., generated gross energy of
75.20 MU at a PLF of 43%. After meeting the auxiliary consumption,
69.224 MU were sold. The generation was curtailed for more than 6
months due to un-remunerative merchant power tariff which did not even
cover variable cost (coal cost).
A new 64 MW Power Plant in Odisha is getting ready for commissioning
during the second quarter of the current financial year 2012-13. The
commissioning of this project got postponed due to delay in obtaining
regulatory approvals which have since been received.
A 150 MW coal fired Power Project is under implementation at Paloncha
through Nava Bharat Energy India Limited (NBEIL) at an estimated cost
of about Rs. 670 Crores. Most of the civil works are nearing completion
and mechanical erection of equipment is in advanced stage. The project
is likely to be commissioned in the last quarter of FY 2013. With a
view to mitigate the fuel cost risk, NBEIL is exploring the possibility
of dedicating a part of output for industrial use through strategic
associations with bulk consumers for obtaining steady returns while the
balance output will be available for merchant sale.
Ferro Alloy Division
The Company manufactures Silico Manganese and Ferro Manganese at
Paloncha, Andhra Pradesh with a capacity to produce 125,000 TPA. The
Company also has Ferro Chrome capacity of 75,000 TPA at Kharagprasad,
Demand for Ferro alloys remained subdued due to continued global
economic slowdown, specifically in Europe, though there was a marginal
improvement over the previous year. During the year, the Company
produced 63,602 MT of Silico Manganese and sold 64,900 MT which was
marginally higher than in the previous year. Relative margins formed
the basis to switch the utilisation of power for captive use or
merchant sale and, accordingly, during the last quarter, manganese
alloy production was reduced to sell the resultant surplus power to
yield higher margins.
The Company resumed production of Ferro Chrome at the Odisha Unit with
the commencement of a three year conversion contract with Tata Steel
Limited (TSL) and produced 26,163 MT of the product during the year
2011-12. The Company will dedicate the entire capacity of its Unit in
Odisha for producing to TSL.
During the year, the Sugar Plant produced 4,086 MT of Levy Sugar and
36,778 MT of sugar for free sale. The Unit registered a recovery of
10.10% on a volume of 4,05,098 MT of cane in 2011-12, spread between
two seasons. Revenue from by-products like molasses and power aided the
unit to mitigate the costs and post profits. Part of the molasses have
been used for captive consumption by the ferro alloy smelters in
Odisha. Similarly, part of the bagasse was consumed in the 9 MW
Co-generation power plant in this Unit and partly by the 20 MW mixed
fuel based power plant at Dharmavaram.
Your Company''s international investments through its subsidiary in
Singapore have mainly focused on coal mining, power generation and
commercial agro based industries in developing and emerging economies
in Africa and South East Asia. The business model in all these ventures
envisages inclusive local development and value addition which is well
received by the stakeholders in the respective domains. Your Company
expects that these overseas projects which are well integrated, will
afford it sustainable returns on investments, commensurate to their
size. Your Company is geared to gradually ramp up, over the next five
years, the scale of international operations in such a way that
revenues and earnings are well dispersed across different countries and
minimise the risk of dependency on one sector and one geographical
These investments, made over the last three years, resulted in your
Company''s subsidiary in Singapore obtaining strategic management
control on quality assets. Typical to such projects, they have a
gestation period of three to five years before positive cash
generations start accruing. Till such time, the Company is committed to
provide support by deployment of funds out of its cash accruals or
otherwise, at various stages in such projects along with similar
support from Joint Venture partners, if any, aside from extending
managerial and logistical support by deputing qualified personnel to
such projects. The Company expects that the aggregate commitment in
these projects would be Rs. 1,597 Crores of which Rs. 447 Crores stands
deployed up to the end of FY 2012 while a sum of Rs. 535 crores is
factored to be deployed in FY 2013.
Nava Bharat (Singapore) Pte. Limited (NBS) – the hub of overseas
investments NBS, a wholly owned subsidiary of the Company, has been
engaged in trading of Ferro alloys since 2004-05. Leveraging its
strategic location, NBS acts as the hub for all overseas investments of
the Group and strategic associations and joint ventures in different
geographic domains. NBS has obtained economic interests in special
purpose companies and operating companies. The Company''s existing and
future cash accruals form the basis for these investments through NBS.
NBS has also been raising overseas debts leveraging upon parent
recourse, pending infusion of equity by the Company.
The principal investments of NBS lay in coal mining and thermal power
generation in Zambia, hydel power generation in Laos and commercial
agriculture in Tanzania, all of which are in various phases of
development and implementation.
Integrated Coal Mining and Power Project in Zambia
Maamba Collieries Limited (MCL) is a step down subsidiary of the
Company and is controlled to the extent of 65% through NBS. The balance
equity of 35% in MCL is controlled by ZCCM Investments Holdings Plc, a
Government of Zambia undertaking with a strong financial position and
healthy track record.
MCL holds the largest coal concession in Zambia, a stable democratic
country with immense economic potential in Sub Saharan Africa. The coal
concession of MCL has both thermal and metallurgical high grade coal
seams which facilitate local value addition through coal fired power
generation as well as merchant sale of coal.
MCL took up, in 2011, an integrated coal and power project, aimed at
resumption of large scale coal mining (which was stopped some years
ago) and establishment of a mine-mouth, coal fired power project of 300
MW capacity in Phase I. The coal mining operations have since been
resumed and movement of coal to markets within Zambia and neighbouring
countries has begun. MCL expects to generate coal sale revenues
beginning from FY 2013 with gradual ramp up in line with the demand.
The 300 MW power project under Phase I is being implemented by SEPCO,
one of the largest construction companies in China, under an EPC
Contract. MCL has received the requisite clearances including
environmental approval and SEPCO has commenced the construction work at
site. This project is slated to go on stream by April, 2015. Zambia has
hitherto been dependent on hydel power generation only. MCL''s 300 MW
thermal power plant will therefore provide the much needed base load
power for Zambia and help Zambia sustain its industrial and economic
MCL estimates a capital outlay of about US$ 750 Million on this
integrated project which will be funded by equity contributions by both
NBS and ZCCM and long term debt from development financial institutions
and banks and need based bridge finance in the interim. MCL has tied
up the power sale with the Zambian power utility under a long term
Power Purchase Agreement.
Hydel Power Project in Laos Laos in South East Asia has immense hydro
power potential and has evolved as the principal source of power for
this region which comprises industrialised countries like Thailand.
Your Company''s subsidiary in Singapore (NBS) has acquired a majority
stake in Kobe Green Power Co. Ltd. (KGP).
KGP is a Japanese company holding the development rights for a Hydel
Power Concession in Laos which translates to a capacity of about 108
MW. KGP has commissioned detailed feasibility and hydrology studies as
part of the developmental activities and will pursue a Project
Concession from the Government of Laos with tie up for power sale to
the local utility. The estimated cost of the project is around USD 330
NBS plans to substitute its investment in KGP with a majority stake in
the Project Company after the Project Concession is secured from the
Government of Laos. Meanwhile, it has been funding the initial
developmental costs which will be transferred to the Project Company as
its share of equity.
Commercial Agriculture in Tanzania Your Company has over the last three
decades been engaged in sugar business and has developed in-house
expertise in agricultural farming and commercial ventures covering a
wide range of agro products. To leverage this expertise, your Company
has evaluated agro based investments abroad. Tanzania, in Eastern
Africa, is ideally placed for commercial agriculture with the right
indices of rainfall and weather conditions, arable land and
connectivity to sea ports, aside from huge local demand for these food
After conducting preliminary studies on various crops and discussions
with National Development Corporation (NDC) of Tanzania, your Company''s
subsidiary in Singapore (NBS) has chosen an “Integrated Oil Palm
Project” comprising oil palm cultivation in nucleus farm, oil
extraction and refining along with co-generation of power. This project
will be developed in an area of about 3,890 ha (to be extended to
10,000 ha). Another similar project is also being simultaneously
pursued with Rufiji Basin Development Authority (RUBADA) in an area of
about 10,000 ha.
NBS has entered into preliminary agreements with the above Tanzanian
Government agencies and is pursuing feasibility studies and local
clearances. It plans to form local joint ventures with these agencies
to implement these agro based projects.
OUTLOOK AND FUTURE PLANS
The outlook and future plans of the Company have been mentioned in
detail under the “Management Discussion and Analysis” section that
forms part of this report.
DIVIDEND ON EQUITY SHARE CAPITAL
Considering the satisfactory performance of your Company and keeping in
view the ongoing capital works and growth trajectory, your Directors
are pleased to recommend dividend at Rs. 4.00/- per Equity Share of Rs. 2/-
each, subject to necessary approvals.
The aggregate dividend payout for the year 2011-12 amounts to Rs. 39.20
Crore, including corporate dividend tax.
The Company issued FCCBs to an extent of JPY 6000 million including
Green Shoe Option at an initial conversion price of Rs. 136.50 per Equity
Share of Rs. 2/- each during the financial year 2006-07. FCCBs to an
extent of JPY 2480 million were converted into 77,76,303 equity shares
of Rs. 2/- each at a revised conversion price of Rs. 132.96 per share as on
31st March, 2008.
During the financial year 2010-11, the Company issued a notice for
conversion of FCCBs fixing the date of conversion as 28th February,
2011. The Company received the conversion notice from M/s. Kingfisher
Capital CLO Limited, Cayman Islands for conversion of 323 FCCBs of JPY
3230 million and 1,29,23,073 equity shares of Rs. 2/-each were allotted
to M/s. Kingfisher Capital CLO Limited, Cayman Islands on 18th August,
2011 constituting 14.47% of the post paid up capital of the Company.
The balance 29 Bonds for JPY 290 million were redeemed on 29.09.2011 on
maturity and no FCCBs are therefore outstanding.
The sources and uses/application of funds are disclosed to and
considered by the Audit Committee on a quarterly basis and as a part of
the quarterly declaration of financial results.
The Company has not utilised any part of the said funds for the
purposes other than those stated in the offer documents or Notices.
EMPLOYEES'' STOCK OPTION SCHEME
The Company has no Options outstanding as at the beginning of the year
and has not granted any Stock Options during the year 2011-12.
The prescribed details relating to ESOS as per the SEBI Guidelines are
set out in Annexure – II.
LISTING OF SHARES
The Securities of the Company are listed at National Stock Exchange of
India Limited and Bombay Stock Exchange Limited. The listing fees for
these Stock Exchanges were paid.
The amount of deposits outstanding as on 31st March, 2012 was nil.
There were no overdue deposits, as on date.
All the properties of the Company including buildings, plant and
machinery and stocks have been adequately insured.
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Sri G. R. K. Prasad, and Dr. D
Nageswara Rao, Directors of the Company, retire by rotation at the
ensuing annual general meeting and being eligible, offer themselves for
SUBSIDIARY COMPANIES AND CONSOLIDATED ACCOUNTS
The Company has Indian and Overseas direct and step down Subsidiaries,
the details of which are given below:
The Company has opted to avail the exemption, provided under Section
212 (8) of the Companies Act, 1956 and accordingly disclosed the
prescribed information in aggregate for each subsidiary including step
down subsidiaries covering capital, reserves, total assets, total
liabilities, investments, turnover, profit before taxation, provision
for taxation, profit after taxation etc.
The Annual accounts of the subsidiary companies shall also be kept for
inspection by any shareholder in the Registered Office of the holding
company and of the subsidiary companies concerned.
The Company shall furnish a hard copy of Annual Reports of the
subsidiaries to any shareholder on demand at any point of time.
The audited Consolidated Financial Statements are provided in the
Nava Bharat Projects Limited (NBPL):
NBPL, a wholly owned subsidiary of the Company, is engaged in project
support and maintenance services for the group companies and is the
intermediate holding Company of NBEIL, which is executing the 150 MW
power project at Paloncha.
The proceeds of the second tranche of sale of shares in Navabharat
Power Private Limited to Essar Power Limited, net of income tax, were
deployed in Nava Bharat Energy India Limited (NBEIL) as part of
sponsor''s contribution in the project finance of NBEIL.
During the year, NBPL has, leveraged its rich experience in power
projects and extended Project Management Services to Maamba Collieries
Limited, especially in the evaluation and selection of EPC and Non-EPC
contracts and detailed project engineering which helped the latter to
fast track the implementation of 300 MW coal fired power project in
Nava Bharat Energy India Limited (NBEIL):
NBEIL is the step down subsidiary through NBPL and is implementing a
150 MW coal fired power project at Paloncha. The Power project is
likely to be commissioned in the last quarter of FY 2013.
Brahmani Infratech Private Limited (BIPL):
The Company currently holds 65.74% of the equity share capital of BIPL
while the balance equity is held by others. BIPL was entrusted with the
implementation of an SEZ project by the Govt. of AP/APIIC.
The Company entered into a Joint Development Agreement (JDA) with M/s.
Mantri Technology IT Parks Private Limited (MTPL), a subsidiary of M/s.
Mantri Developers Private Limited, Bangalore (MDPL), who had agreed to
develop the Project and assumed responsibility to market built up area
of this SEZ Project. However, MTPL could not comply with the
obligations and responsibilities envisaged and undertaken by them as
per the provisions of the JDA. As there has been little or no activity
on the Project, the Company has repeatedly requested MTPL to at least
achieve minimum milestones to enable the Company to seek additional
time from the Government of Andhra Pradesh for the Project.
While MTPL could not comply with this, except to the extent of
constructing a small incubation space, it has recently sought to exit
from the Project, citing purported impediments and setting untenable
conditions, in utter violation of the terms of JDA. Your Company deems
this action on the part of MTPL (and indirectly by MDPL) as giving rise
to material breach of the JDA and intends to invoke its rights under
the JDA to take suitable action against MTPL and MDPL while engaging
the APIIC and the Government of Andhra Pradesh to seek suitable
extension of time lines and for induction of new technical associate
and, in case this proposal is not acceptable to the Government of
Andhra Pradesh, to surrender the allocated land, in full or in part.
The Company has initiated the process for requisite Corporate approvals
in this regard.
Kinnera Power Company Limited (KPCL):
KPCL, though a subsidiary with the Company holding 50.3% of the small
equity capital of Rs. 9.94 lakhs, is at present the investment arm of
Meenakshi Infra Group (Meenakshi). Meenakshi implemented a road
project of National Highway Authority of India (NHAI) through Malaxmi
Highway Pvt. Ltd. (MHL) the Special Purpose Company (SPC), formed for
this project. Meenakshi funded the project through a combination of
redeemable preference shares and their share of equity aside from long
term project debt without any contribution from KPCL. The road project
has since been commercialised. There being no economic interest, the
Company intends to offload its stake in KPCL and MHL eventually to
Meenakshi Group as permitted by NHAI in due course and hence
consolidation of accounts of KPCL and MHL are not done with those of
Nava Bharat Realty Limited (NBRL):
NBRL is a wholly owned subsidiary of the Company and proposes to be
engaged in realty focused investments. There have been no operations in
Nava Bharat Sugar and Bio Fuels Limited (NBSBL):
NBSBL is a wholly owned subsidiary of the Company and proposes to be
engaged in sugar, bio-fuel and agri based investments. There have been
no operations in this company.
Nava Bharat (Singapore) Pte. Limited (NBS): NBS is a wholly owned
subsidiary of the Company.
The nature of activities and details of the principal investments of
NBS are already covered under the section “International Foray”.
PT Nava Bharat Indonesia (NBI) and PT Nava Bharat Sungai Cuka (NBSC):
NBI and NBSC were formed through NBS to pursue the Indonesian mineral
opportunities. The initial investment for a small coal concession ran
into litigation with the sellers in Indonesia and their associates in
Singapore. As such, NBS has stopped further exposure and investments
into Indonesia and is confident of recovering the investment of about
US$ 7 Million.
Maamba Collieries Limited (MCL):
MCL is a step down subsidiary of the Company with 65% control through
Nava Bharat (Singapore) Pte. Limited.
The activities and details of the integrated coal mining & power
project taken up by MCL at Maamba, Zambia are already covered under the
section “International Foray”.
Kobe Green Power Co. Ltd. (KGP):
KGP is a Japanese company in which NBS has taken a majority stake. KGP
holds the development rights for a Hydel Power Concession in Laos for
about 100 MW. A project company will be formed to implement the Hydel
Power project, estimated to cost around USD 300 million.
Details of the above project are already covered under the section
Nava Bharat Africa Resources Pvt. Ltd. (NBAR):
NBAR is a step down subsidiary of the Company through NBS and is
expected to focus on investments in the SADC region. NBS plans to
evolve a tax efficient holding structure for its investments in Africa
and utilise NBAR, if found feasible, for this purpose. During FY
2011-12 there have been no operations in NBAR.
M/s. Brahmayya & Co., Chartered Accountants, Hyderabad, the Statutory
Auditors of the Company, hold office until the conclusion of the
ensuing Annual General Meeting and are eligible for re-appointment.
The Company has received a letter from them to the effect that their
appointment, if made, would be within the prescribed limits under
Section 224 (1-B) of the Companies Act, 1956 and that they are not
disqualified for re-appointment within the meaning of Section 226 of
the said Act.
M/s. Narasimha Murthy & Co, Cost Auditors, have been appointed by the
Company to conduct the cost audit in respect of industrial alcohol,
sugar and electricity for the financial year 2011-12. The approval of
the Central Government was received for this appointment. Further,
Govt. of India vide Order dated 30th June, 2011 clarified that all the
Steel Plants manufacturing products covered under Steel (Chapter 72 and
73 of Central Excise and Tariff Act 1985) should get Cost Records
audited. As per the Order, the Ferro Alloy Plants at Paloncha and
Odisha are also covered under Cost Audit for the FY 2011-12.
M/s.Narasimha Murthy & Co., Cost Auditors, have been appointed by the
Company to conduct the Cost Audit of Steel (Ferro Alloys) and the same
was approved by the Central Government. The Cost Audit reports for
2011-12 were due to be submitted on or before 30th September, 2012. The
Cost Audit reports for 2010-11 were filed with Ministry of Corporate
Affairs on 21st August, 2011.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Management''s Discussion and Analysis Report for the year under review,
as stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges in India, is presented in a separate section forming a part
of the Annual Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
The Directors confirm that in the preparation of Annual Accounts for
the year ended 31st March, 2012
- All applicable accounting standards were followed.
- The accounting policies framed in accordance with the guidelines of
the Institute of Chartered Accountants of India have been applied.
- Reasonable and prudent judgement and estimates were made so as to
give a true and fair view of the state of affairs of the Company.
- Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities, as applicable.
- The annual accounts were prepared on a going concern basis.
A separate section on Corporate Governance with a detailed compliance
report thereto is annexed and forms a part of the Annual Report. The
Auditors'' Certificate in respect of compliance with the provisions
concerning Corporate Governance, as required by Clause 49 of the
Listing Agreement, is also annexed.
TRANSFER OF AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUND
Pursuant to the provisions of Section 205A(5) of the Companies Act,
1956, relevant amounts which remained unclaimed for a period of 7 years
have been transferred by the Company to the Investor Education and
TRANSFER OF PHYSICAL SHARE CERTIFICATES TO UNCLAIMED SUSPENSE ACCOUNT
IN ELECTRONIC MODE
M/s. Karvy Computershare Private Limited as Registrars & Transfer
Agents had sent notices under Clause 5A of the Listing Agreement to
postal return cases and for the remaining physical share certificates
lying with the Company in respect of stock split, they had sent 3
formal reminders by Registered Post.
The Company''s Registrars sent notices under Clause 5A to stock split
cases also as first reminder on 14.04.2012. Further, two more reminders
will be sent in the FY 2012-13 in respect of stock split cases to
minimise the number of Unclaimed Physical Stock Split cases.
A demat account under the name and style of “Nava Bharat Ventures
Limited - Unclaimed Suspense Account” was opened by the Company and the
unclaimed shares in respect of 6 shareholders for 915 equity shares
were transferred to the said account on 11.05.2012.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
In accordance with the provisions of Section 217(1)(e) of the Companies
Act, 1956, the required information relating to conservation of energy,
technology absorption and foreign exchange earnings and outgo have been
given in the Annexure - I, which forms a part of this Report.
INDUSTRIAL SAFETY AND ENVIRONMENT
Safety & Environment
Your Company continues to give utmost importance to safety of personnel
and equipment in all its plants. The safety measures adopted are
reviewed thoroughly and several proactive steps taken to avoid
accidents. In addition, safety drills are conducted at regular
intervals to train the workmen and staff for taking timely and
appropriate action in case of accidents.
Particulars of Employees
As required by the provisions of Section 217(2A) of the Companies Act,
1956 read with Companies (Particulars of
Employees) Rules, 1975 as amended, the names and other particulars of
the employees are set out in the Annexure – III to the Directors''
Voluntary Guidelines on Corporate Governance and Corporate Social
The Ministry of Corporate Affairs, Govt. of India, issued Voluntary
Guidelines for Corporate Governance and for Corporate Social
Responsibility. The Voluntary Guidelines for Corporate Governance
provide for various measures and your Company considers the same in due
Your Company received the following awards/recognitions during 2011-12:
1. CII Environmental Best Practices Award 2012 for Most Innovative
Environmental Project (Ferro Alloy Plant, Paloncha received this award)
from Confederation of Indian Industry.
2. 5-S Excellence Award 2011 (Sugar Division received this award) from
Confederation of Indian Industry (Southern Region).
3. National Award for Excellence in Water Management 2011 as Water
Efficient Unit (Power Plant at Kharagprasad received this award) from
Confederation of Indian Industry.
4. National Award for Excellence in Energy Management 2011 as Energy
Efficient Unit (Power Plant at Paloncha received this award) from
Confederation of Indian Industry.
5. National Award for Excellence in Energy Management 2011 as
Excellent Energy Efficient Unit (Sugar Division received this award for
the 5th consecutive year) from Confederation of Indian Industry.
6. Best Cogen Award 2011 as 3rd Best Performing Cogen Factory in
Andhra Pradesh from South Indian Sugar Cane & Sugar Technology
7. Prakruti Mitra Puraskar 2010-11 for being Excellent in the field of
Conservation of Nature & Protection of Environment in the Block level,
Village/Organisation from Forest and Environment Department, Government
GREEN INITIATIVE IN CORPORATE GOVERNANCE BY HON''BLE MINISTRY OF
The Ministry of Corporate Affairs (MCA) has taken a green initiative in
Corporate Governance by allowing paperless compliances by the Companies
and permitted the service of Annual Reports and documents to the
shareholders through electronic mode subject to certain conditions.
Your Company appreciates the initiative taken by MCA as it strongly
believes in a green environment. This initiative also helps in prompt
receipt of communication, apart from avoiding losses / delays in postal
transit. The Notice of Annual General Meeting, Full Annual Reports and
all communications hitherto were sent to the members in electronic form
at the e-mail address provided by them to the depositories or
Registrars & Transfer Agents of the Company. The Annual Reports will be
sent by post physically to the Members, whose e-mail addresses are not
registered. Members can also have access to the documents through the
Company''s website. The documents will also be available to the members
for inspection at the Registered Office of the Company during the
Members are also entitled to be furnished with hard copy of annual
report, free of cost, upon receipt of requisition, at any point of
Industrial relations have been cordial and your Directors appreciate
the sincere and efficient services rendered by the employees of the
Company at all levels towards successful working of the Company.
Your Directors would like to express their grateful appreciation for
the assistance and co-operation received from the Financial
Institutions, the Company''s Bankers, Insurance companies, the
Government of India, Governments of Andhra Pradesh, Odisha and the
State utilities and Shareholders during the year under review.
For and on behalf of the Board
P. Trivikrama Prasad
30th May 2012 Chairman