EID Parry (India) Ltd


BSE: 500125 | NSE: EIDPARRY | ISIN: INE126A01031 
Market Cap: [Rs.Cr.] 3,443 | Face Value: [Rs.] 1
Industry: Sugar

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Director's Report

DIRECTORS' REPORT

Your Directors have pleasure in presenting their report together with the auditedaccounts for the financial year ended 31st March, 2014.

The performance highlights of the company for the year are summarised below:

FINANCIAL RESULTS

Rs in lakh
Particulars 2013-14 2012-13
Total Income 1,94,319 2,09,978
Profit Before Interest, Depreciation and Tax 26,237 60,562
Less : Interest 19,616 13,668
Depreciation 9,731 10,787
Profit Before Tax (3,110) 36,107
Less: Provision for Tax :
- Current - 839
- MAT Credit entitlement - (839)
- Deferred (5,763) 2,936
Profit After Tax 2,653 33,171
Add : Surplus brought forward 24,456 37,966
Amount available for Appropriation 27,019 71,137
APPROPRIATIONS
Transfer to General Reserve - 35,000
Transfer to Debenture Redemption Reserve 2,653 1,250
Dividend on Equity Capital :
Interim dividend paid - 10,431
Dividend Distribution Tax (Net) - -
Surplus carried to Balance Sheet 24,456 24,456

PERFORMANCE

During the year, the Company recorded a revenue of Rs 1,94,319 lakh as compared to Rs2,09,978 Lakh in the previous year 2012-13. The Earnings before Interest, Depreciation,Tax and Amortization for the year was Rs 26,237 Lakh representing 14% of total sales asagainst previous year's Rs 60,562 Lakh. Performance of sugar by-product division namelydistillery and power have contributed towards EBIDTA during the year.

During the year, the performance of the Company was adversely affected primarily due tothe prevailing low market price of sugar and the higher cane price that the Company had topay for procuring cane from the farmers. Further, the units in Tamil Nadu was impacted bya third consecutive year of drought severely affecting the cane availability. In Karnatakathere was a delay in commencement of the normal crushing operations due to the impassecaused by the hike in cane prices announced by the Karnataka Government and the millers'dissent on this issue. All this had a combined effect resulting in reduction of the totalcane crushing for the year as compared to that of the previous year.

Over the last three seasons from 2010-11 to 2012-13, the average sugarcane prices paidby mills has increased at around 14% CAGR whereas the increase in sugar prices has been amere 2.6%. The increase in sugar prices has not kept pace with the increase in cane pricesover the last few years. The steep rise in sugar cane procurement costs which accounts forabout 70% of total operation costs is expected to significantly impact the profitabilityof sugar mills. For the SS 2013-14, the Central Government has announced a 23.5% hike inthe minimum price payable for sugarcane through the Fair and Remunerative Price (F&RP)mechanism. However the increase in market prices of sugar has been minimal. Although thedecontrol of sugar distribution and the impetus given to blending ethanol with petrol havegiven some relief to the sugar mills, the issue of sugarcane pricing still remains largelyunresolved. Linking sugar cane prices to the prices of end-products is critical for safeguarding long-term financial health and sustenance of the industry. This will also help toreduce the extent of volatility in sugar production.

The major areas of focus for the Company are consolidation of operations, reducingcosts and conserving cash. Due to high stress on profitability, several cost reductionmeasures have been put in place by the Company to improve the bottom line. The othermeasures are to work towards improving the yield, increasing the cane cultivation in thecommand area and further improving the operating efficiency. The Company proposes to takea slew of measures in this direction, so as to face the challenge of low sugar price andthreat of continuous increase in cane price.

BUSINESS SEGMENTS SUGAR

During the year, the Company crushed 47.52 Lakh MT of sugar cane as against 65.18 LakhMT crushed in the previous year. The units in Tamilnadu & Puducherry have crushed atotal quantity of 30.72 Lakh MT vs. 53.24 Lakh MT in the previous year. This drop wasmainly on account of poor weather conditions in our key crushing areas. The recovery ofsugar from sugar cane was at 9.84% as against 9.23% in the previous year.

The company sold 4,16,947 MT of Sugar as against 4,95,218 MT

during the previous year.

POWER

The power generation during the year was lower primarily due to lower caneavailability. While most of the power generated was continued to be used captively to runthe plants, the surplus power was sold to Tamilnadu Electricity Board and other merchantpower purchasers.

Power generation was at 4,259 Lakh Units as compared to 6,534 Lakh Units in theprevious year. The company exported 2,497 Lakh Units of power during the year as against4,100 Lakh Units in the previous year.

DISTILLERY

During the year, Industrial Alcohol/ENA production was lower at 593 Lakh Litres ascompared to 654 Lakh Litres during the previous year. The Industrial Alcohol/ENA sales wasat 598 Lakh Litres as compared to 642 Lakh Litres during the previous year.

BIO PRODUCTS

Bio Pesticides

The Bio-Pesticides Division registered revenue of Rs 9,716 lakh in 2013-14 as comparedto Rs 7,321 lakh of previous year and accounting for 5% of the Company's Revenue. The saleof Neemazal registered a growth of 43% over 2012-13. Export sale of Neemazal technicalregistered a growth of 22% over 2012-13 with US accounting for 64% of the sale followed byEurope at 34% and Asian markets at 2%. Domestic sale of Neemazal and Abda range ofproducts along with micronutrients and adjuvants registered a growth of 44% over 2012-13.PBIT for the year was higher at Rs 2,276 lakh against Rs 1,557 lakh in 2012-13. Productionof Technical Aza was 15,221 Kgs, the highest ever in a year.

Nutraceuticals

The Nutraceuticals Division's turnover was Rs 6,930 lakh for the year ended 31st March,2014 representing 4% of the Company's Revenue. About 80% of this represents exports.

Premium Organic Spirulina continues to outperform competition in its segment and salesduring the year had grown at 32% over the previous year. With the stabilized Astaxanthinproduction process, the sales of Astaxanthin in the form of Oleoresin grew by 159% over2012-13. The Company has exited from OTC / OTX product range during the year to focus onits core ingredients business.

Detailed analysis of the business segments is provided in the Management and Discussionanalysis.

ACQUISITION OF ALIMTEC S.A

In April 2014, the Company has acquired 100% stake in Alimtec S.A., Chile, part of theBayer Group. The acquisition is by way of purchase of the stake from Bayer Finance andPortfolio Management S.A., and Nunhems Chile S.A., subsidiaries of Bayer AG. With thisacquisition, the Company would ensure reliable sourcing of Astaxanthin for its subsidiary,US Nutraceuticals LLC (Valensa). With Valensa's strength in developing Astaxanthin basedformulations, this acquisition will culminate in Value Creation for the Nutraceuticalsbusiness. The entire production of Alimtec will be used by Valensa for its Astaxanthinproducts catering to USA & Europe Markets.

DIVIDEND

Due to adverse performance of the Company, the Board has not recommended any dividendfor the year ended March 31, 2014.

SCHEME OF ARRANGEMENT - MERGER OF SADASHIVA

SUGARS LIMITED WITH E.I.D.-PARRY (INDIA) LIMITED

Pursuant to the order of the High Court of Karnataka, the merger of Sadashiva SugarsLimited, a wholly owned subsdiary, with E.I.D.-Parry (India) Ltd. with appointed date of1st April, 2013 has been completed on 8th May, 2014. Sadashiva Sugars Limited is having aSugar Plant along with cogeneration in the Bagalkot District of Karnataka

EMPLOYEE STOCK OPTION SCHEME

Under the 'Employee Stock Option Scheme' ('the Scheme') of the Company and based on theapproval of the shareholders at the Annual General Meeting held on 26th July, 2007 andsubsequent amendments thereof, no options were granted during the year ended 31st March,2014. The details of the Options granted up to 31st March, 2014 and other disclosures asrequired under Clause 12 of the Securities and Exchange Board of India (Employee StockOption Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 are set out in theAnnexure to this Report.

The Company's Statutory Auditors, M/s.Deloitte Haskins & Sells, have certified thatthe Scheme had been implemented in accordance with the Securities and Exchange Board ofIndia (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999and the resolutions passed by the Members in this regard.

CREDIT RATING

During the year, rating agency CRISIL has assigned Long term Debt rating of"CRISIL AA-" (Stable) and reaffirmed "CRISIL A1+" rating for its shortterm borrowing.

SOCIAL RESPONSIBILITY

The Company undertook a wide range of initiatives for the livelihood enhancement andfor health and hygiene awareness in the rural community in which it operates. The Companyalso worked towards the preservation of environment through various water and socialconservation programs.

Towards utilising the scarce water resource, the Company promoted micro irrigationsystems like Drip, Sprinklers and Group Lift Irrigation programs.

SUBSIDIARY COMPANIES Coromandel International Limited

The Company achieved a revenue of Rs 10,11,397 Lakh for the year ended 31st March, 2014and the profit after tax was Rs 36,494 Lakh. The Company's Board had recommended adividend of Rs 4.5/- per share (450%) for the year ended 31st March, 2014.

Parrys Sugar Industries Limited

The Company recorded revenues of Rs 17,253 Lakh for the 12 months period ended 31stMarch, 2014. After providing for Depreciation, Interest and Tax, the loss after tax was Rs3,604 Lakh.

Silkroad Sugar Private Limited

The revenue for the year was Rs 1,715 Lakh. During the year ended 31st March, 2014 thecompany made a loss before tax of Rs 6,011 Lakh.

Parry Infrastructure Company Private Limited

During the year under review, the company earned an income of Rs 2,209 Lakh with Profitbefore Tax of Rs 320 Lakh. After providing for tax provision, the Profit after Tax was Rs217 Lakh.

Parry America Inc.

Parry America Inc, a 100% subsidiary based in US, reported an income of US$ 7,671thousand for the year ended 31st March, 2014. The Profit after Tax was US$ 342 thousand.

Parry Phytoremedies Private Limited

The revenue for the year was Rs 1,272 Lakh. During the year ended 31st March, 2014 thecompany made a loss before tax of Rs 574 Lakh.

Parrys Sugar Limited

During the year ended 31st March 2014, the Company earned an income of Rs 14 lakh withprofit after tax of Rs 14 lakh.

Parrys Investments Limited

During the year ended 31st March, 2014, the Company earned an income of Rs 5 Lakh andthe Profit after Tax was Rs 4 Lakh.

US Nutraceuticals LLC

This overseas Subsidiary, during the year ended 31st March, 2014 earned an income ofUS$ 20,770 thousand and the Profit after Tax was Rs 820 thousand.

SUBSIDIARY ACCOUNTS

In terms of the direction under Section 212(8) of the Companies Act, 1956 vide GeneralCircular No.2/2011, bearing No.51/12/2007-CL-III dated 8-2-2011 issued by Government ofIndia, Ministry of Corporate Affairs, the Board of Directors have passed a Resolutionaccording consent to the Company for not attaching the financial statements in respect ofall the Subsidiary Companies for the year ended 31st March, 2014.

The annual accounts of the subsidiary companies and the related detailed informationwill be made available to shareholders seeking such information at any point of time. Theannual accounts of the subsidiary companies will also be available for inspection by anyshareholder in the Head Office of the Holding company and of the subsidiary companiesconcerned during working hours upto the date of the Annual General Meeting. A hard copy ofdetails of accounts of subsidiaries will be furnished to any shareholder on demand.

CONSOLIDATED FINANCIAL STATEMENTS

The Consolidated Financial Statements have been prepared by the Company in accordancewith the applicable Accounting Standards (AS-21 and AS- 27) issued by the Institute ofChartered Accountants of India and the same together with Auditors' Report thereon formpart of the Annual Report.

DIRECTORS

Mr.Anand Narain Bhatia Mr.M.B.N. Rao, Directors are liable to retire by rotation andthe ensuing Annual General Meeting. The Board of Directors at their meeting held on 30thJanuary, 2014 had appointed Mrs.Shyamala Gopinath as an Additional Director of theCompany. She will hold office up to the ensuing Annual General Meeting, pursuant toSection 161 of the Companies Act, 2013

During the year, the Board of Directors at their meeting held on 30thJanuary, 2014 have appointed Mr.V.Ramesh as an additional Director and also the ManagingDirector of the Company for a period of 3 Years w.e.f 30th January, 2014. TheShareholders vide their resolution dated 24th March 2014 passed through postalballot have approved the appointment of Mr.V.Ramesh as the Managing Director of theCompany.

In accordance with the provisions of Section 149 of the Companies Act, 2013, theCompany proposes to appoint Mr.Anand Narain Bhatia, Mr.M.B.N.Rao, Mrs.Shyamala Gopinathand Mr.V.Manickam as Independent Directors at the ensuing

Annual General Meeting. As required under clause 49 of the Listing Agreement a briefresume, expertise and details of other directorships of Mr.Anand Narain Bhatia,Mr.V.Manickam, Mr.M.B.N.Rao and Mrs.Shyamala Gopinath are provided in the CorporateGovernance Report.

CORPORATE GOVERNANCE

Pursuant to Clause 49 of the Listing Agreements with the Stock Exchanges, a ManagementDiscussion and Analysis Report, Corporate Governance Report and Auditors' Certificateregarding compliance of conditions of Corporate Governance are made a part of the AnnualReport.

CEO/CFO CERTIFICATION

The Managing Director and the Chief Financial Officer have given a certificate to theBoard as required under Clause 49 of the Listing Agreement.

TRANSFER TO THE INVESTOR EDUCATION AND PROTECTION FUND

In terms of Section 205C of the Companies Act, 1956 an amount of Rs 48.94 lakh beingunclaimed dividend of 2005-06 and Rs 27.00 Lakh being unclaimed dividend of 2006-07(Interim) were transferred during the year to the Investor Education and Protection Fundestablished by the Central Government.

DEPOSITS

Other than the deposits that were transferred to the Investor Education and ProtectionFund, there were no other deposits due for repayment on 31st March, 2014. The Company haddiscontinued acceptance of deposits since July 2003.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 217(2AA) of the Companies Act, 1956 the Directors confirm that, tothe best of their knowledge and belief :

In the preparation of the Profit & Loss Account for the financial year ended 31stMarch, 2014 and the Balance Sheet as at that date ("financial statements"),applicable Accounting Standards have been followed;

Appropriate accounting policies have been selected and applied consistently and suchjudgements and estimates that are reasonable and prudent have been made so as to give atrue and fair view of the state of affairs of the Company as at the end of the financialyear and of the profit of the Company for that period;

Proper and sufficient care has been taken for the maintenance of adequate accountingrecords in accordance with the provisions of the Companies Act, 1956 for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities. Toensure this, the Company has established internal control systems, consistent with itssize and nature of operations. In weighing the assurance provided by any such system ofinternal controls its inherent limitations should be recognised. These systems arereviewed and updated on an ongoing basis. Periodic internal audits are conducted toprovide reasonable assurance of compliance with these systems. The Audit Committee meetsat regular intervals to review the internal audit function;

Proper systems are in place to ensure compliance of all laws applicable to the Company;

The financial statements have been prepared on a going concern basis.

AUDITORS

M/s. Deloitte Haskins & Sells, Chartered Accountants, Chennai, the Company'sAuditors, retire at the conclusion of the forthcoming Annual General Meeting and areeligible for re-appointment.

The Board, on the recommendation of the Audit Committee, has proposed that M/s.Deloitte Haskins & Sells, Chartered Accountants, Chennai be appointed as the StatutoryAuditors of the Company for a period of three years at the Annual General Meeting of theCompany. The Auditors have confirmed their willingness for reappointment as Auditors ofthe Company and has provided the necessary certificates in compliance of Section 139 ofthe Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014.

COST AUDITOR

M/s Geeyes & Co, Cost Accountants, who were appointed as Cost Auditors for the yearended 31st March, 2013 have filed the cost audit reports pertaining to Sugar,Co-generation, Industrial

Alcohol and neem based pesticide with the Central Government. The Company has alsofiled the necessary Compliance Report with Ministry of Corporate Affairs in Form A as perThe Companies (Cost Accounting Records Rules), 2011. The Company received the approval ofthe Central Government for the appointment of M/s. Geeyes & Co., Cost Accountants asCost Auditors for the Financial Year 2013-14.

PARTICULARS OF EMPLOYEES

As required under the provisions of Section 217 (2A) of the Companies Act, 1956 readwith Companies (Particulars of Employees) Rules, 1975 as amended, the names and otherparticulars of employees are set out in the Annexure to the Directors' Report.

ACKNOWLEDGEMENT

The Directors thank the customers, suppliers, farmers, financial institutions, banksand shareholders for their continued support and also recognize the contribution made bythe employees to the Company's progress during the year under review.

On behalf of the Board
Chennai A. VELLAYAN
May 15, 2014 Chairman

ANNEXURE TO THE DIRECTORS' REPORT

Statement as at 31st March, 2014 pursuant to Clause 12 (Disclosure in the Directors'Report) of the Securities and Exchange Board of India (Employee Stock Option Scheme andEmployee Stock Purchase Scheme) Guidelines, 1999.

Date of Grant No. of Options granted
(a) Total Number of Options granted: 31.08.2007 18,58,200
29.10.2007 2,32,400
24.01.2008 4,60,600
24.04.2008 1,52,200
28.07.2008 1,30,000
24.09.2008 3,87,000
29.10.2008 1,13,600
20.03.2009 47,800
28.01.2011 3,66,300
29.04.2011 75,900
27.07.2011 1,15,000
24.10.2011 95,000
40,34,000
(b) (i) Pricing Formula: The pricing formula, as approved by the shareholders of the Company, is the latest available closing price of the equity shares on the stock exchange where there is highest trading volume as on the date prior to the date of the Compensation & Nomination Committee resolution approving the grant.
(ii) Exercise Price per option 31.08.2007 29.10.2007 24.01.2008
For the Options granted from 31.08.2007 to 20.03.2009, each Option Rs 64.80 Rs 75.70 Rs 94.15
represents 1 Equity Share of Rs 2 each. 24.04.2008 28.07.2008 24.09.2008
For the Options granted from 28.01.2011 to 24.10.2011, each Option Rs 103.60 Rs 92.98 Rs 106.30
represents 1 Equity Share of Rs 1 each. 29.10.2008 20.03.2009 28.01.2011
Rs 74.95 Rs 69.13 Rs 225.15
29.04.2011 27.07.2011 24.10.2011
Rs 240.90 Rs 269.10 Rs 220.90
(c) Total number of Options vested 19,64,446
(d) Total number of Options exercised 17,19,790
(e) Total number of Shares arising as a result of exercise of Options 17,19,790
(f) Total number of Options lapsed / cancelled 19,66,114
(g) Variation of terms of Options The exercise period of the options vesting in the Second, Third and Fourth Vesting as per the vesting schedule under the ESOP Scheme-2007 has been increased from three years to six years from the date of Second, Third and Fourth Vesting, respectively.
(h) Money realized by exercise of options (during the year 2013-14) Rs 16,94,679 Lakh
(i) Total number of Options in force 3,48,096
(j) Details of Options granted to
i) Senior Managerial Personnel As provided below -
Name & Designation No. of options granted
1. Ms. G. Jalaja (Vice President - Management Audit & Company Secretary) 68,200
2. Mr.S.K.Sathyavardhan (Vice President - HR) 95,200
ii) Any other employee who received a grant in any one year of 1. Mr.D.Kumaraswamy 1,83,200
Options amounting to 5% or more of the Options granted 2. Mr.T.Kannan 19,600
during that year 3. Mr.G.Madhavan 65,000
4. Mr.Manoj Kumar Jaiswal 1,13,600
5. Mr.P.Nagarajan 65,000
6. Mr.K.E.Ranganathan 3,87,000
7. Mr.K.Raghunandan 2,58,200
8. Mr.Ravindra Raju D.S. 53,100
9. Mr.R.Raghuram 19,600
10. Mr.A.Sridhar 29,400
11. Mr.N.Senthilkumar 20,700
12. Mr.V.Ramasubramanian 20,700
13. Mr.N.Ramakrishnan 20,700
14. Ms.Swati Thomas 13,800
15. Dr.S.Balaji 23,000
16. Mr.Rajiv Yagnik 23,000
17. Mr.S.Radhakrishnan 23,000
18. Mr.Tyron Doll 23,000
19. Mr.S.Karunakar 23,000
20. Mr.M.Ramamoorthy 19,300
21. Mr.M.Balaji 24,200
22. Mr.A.V.Ramaraju 19,300
23. Mr.S.Rangaprasad 19,300
24. Mr.P.Gopalakrishnan 85,200
25. Mr.Suresh Krishnan 18,800
iii) Identified employees who were granted Options, during any one year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the Company at the time of grant. None
(k) Diluted Earnings Per Share (EPS) pursuant to issue of Shares on exercise of Options calculated in accordance with Accounting Standard (AS) 20 'Earnings Per Share' Rs 1.51
(l) (i) Method of calculation of employee compensation cost The employee compensation cost has been calculated using the intrinsic value method of accounting to account for Options issued under ESOP 2007. The stock-based compensation cost as per the intrinsic value method for the financial year 2013-14 is Nil.
(ii) Difference between the employee compensation cost so computed at (i) above and the employee compensation cost that shall have been recognized if it had used the fair value of the Options Rs 103 Lakh
(iii) The impact of this difference on profits and on EPS of the Company The effect on the net income and earnings per share, had the fair value method been adopted is presented below:
Particulars Rs in lakh
Net Income 2,653
As reported
Add: Intrinsic Value Nil
Compensation Cost
Less: Fair Value 103
Compensation Cost
(Black Scholes model)
Adjusted Net Income 2,550
Earnings per Share Basic (Rs) Diluted (Rs)
As reported 1.51 1.51
As adjusted 1.45 1.45
(m) Weighted average exercise prices and weighted average fair values of Options granted for Options whose exercise price either equals or exceeds or is less than the market price of the Particulars Weighted average exercise price per option Weighted average fair value per
stock (Rs) option (Rs)
(Exercise Price - EP) EP > MP -
(Market Price - MP) EP = MP 102.84 37.22
EP < MP - -
(n) A description of the method and significant assumptions used during the year to estimate the fair values of Options The fair value of each Option is estimated using the Black Scholes Option Pricing model after applying the following key assumptions on a weighted average basis:
(i) Risk-free interest rate : 8%
(ii) Expected life :
tranches I to III : 3 years
tranches IV to VIII : 4 years
tranche IX : 4 years
tranche X : 4 years, 2 years
tranche XI : 4 years
tranche XII : 4 years, 1 year
(iii) Expected volatility :
tranches I to III : 0.5264
tranches IV to VIII : 0.5055
tranche IX : 0.5088
tranche X : 0.4852 & 0.3919
tranche XI : 0.4856
tranche XII : 0.4672 & 0.3046
(iv) Expected dividends : 400 %
(v) The price of the underlying Share in market at the time of
Option grant
No. of Tranche Date of grant Market price (Rs)
Each option represents 1 equity share of Rs 1/- each
I 31-08-2007 64.80
II 29-10-2007 75.70
III 24-01-2008 94.15
IV 24-04-2008 103.60
V 28-07-2008 92.98
VI 24-09-2008 106.30
VII 29-10-2008 74.95
VIII 20-03-2009 69.13
IX 28-01-2011 225.15
X 29-04-2011 240.90
XI 27-07-2011 269.10
XII 24.10.2011 220.90

Information under Section 217(1)(e) of the Companies Act, 1956 read with the Companies(Disclosure of Particulars in the Report of Board of Directors), Rules, 1988 and formingpart of the Directors' Report

I. CONSERVATION OF ENERGY

Nellikuppam Plant:

1. Boilers thermal efficiency has been improved by 3% to 4% through reduction inbagasse moisture from 50% to 48.5% and improvement in heat recovery systems.

2. Environment performance improvement: One more electrostatic precipitator (ESP) hasbeen commissioned in

series with the existing one to further improve the emission level beyond the pollutioncontrol board norms.

Puducherry Plant:

1. Boilers were refurbished to improve the thermal efficiency by 7%

2. Environment performance improvement: Boilers were fitted with electrostaticprecipitator (ESP) to reduce the emission levels

Pudukottai Plant:

1. Steam saving measures developed in-house have been implemented to reduce the steamconsumption from 39.5% to 37% on cane.

2. Boiler thermal efficiency has been improved by 3% through reduction in bagassemoisture from 50% to 48.5% and heat recovery system.

Pugalur Plant:

1. Steam saving measures developed in-house have been implemented to reduce the steamconsumption from 42% to 39% on cane

2. VFDs have been provided for cooling tower hot water pumps and injection water pumpsfor conserving electrical energy.

Pettavaithalai Plant:

1. Steam saving measures developed in-house has been implemented to reduce the steamconsumption from 40% to 38% on cane

Sankili Plant

1. Converted A Pan from Brix Control to conductivity control and there by achievedcapacity utilization and consistent crush rate of 4300 TCD during peak recovery months(January, February & March 2014).

2. Modified syrup clarifier to the latest technology available and achieved consistentquality of sugar less than 125 Iu by method 9.

3. Innovative process changes carried out to increase the M-30 production from 34% to52%.

4. Combustion control logics established in boiler DCS operation and there byconsistent generation of steam of 78 TPH and also the steam to fuel ratio increased from2.00 to 2.15.

Sivaganga Plant:

1. By suitable modification of the boiler, the overall coal consumption has beenreduced by 8% by switching over to a combination of Imported and Indian Coal.

2. Standby evaporator has been commissioned to improve brix leading to reduction incoal consumption by 3%.

3. VFD drives-23 nos were installed to improve the efficiency and resulted in costsaving

Bagalkot Plant

1. Steam consumption reduced from 37.42% to 34.60% by adopting the following steamsaving measures in process house.

• llbodyvapourtoallpans

• Condensate Flash Recovery system

• Pan washing by I vapor

2. Boiler Thermal efficiency has been improved by 3% to 4% by reducing the moisturebagasse from 50% to 48.5%

Bio Products - Thyagavalli Plant

1. Reduction of power cost per unit by Rs 1.01 from Rs 10.97 to Rs 9.96 by planning theoperation in such a way that utilizing more power in night hours to avail subsidy duringTNEB supply.

2. By installing Discharge screw conveyor to reduce the wet kernel discharge time from5 hours to 2 hours thereby saving power of 20 units / day.

3. Increasing Captive power production by 0.09 Units / litre of diesel from 3.11 to3.20 (operating the DG at 80% to 85% load). Thereby saving fuel of 16.87 Litres / day.

4. Reduction of ethyl acetate consumption from 72.5 Kgs to 65 Kgs / Kg of Azaproduction by increasing the productivity thereby saving 375 Kgs per day approximately.

5. Reduction of Hexane consumption from 10 Kgs to 8 Kgs for 1 Kg of Aza production byincreasing the productivity thereby saving 100 Kgs per day approximately.

6. Reduction of Furnace Oil consumption from 74 Kgs to 68 Kgs for 1 kg of Azaproduction by increasing the productivity thereby saving 300 Kgs per day approximately.

7. Reduction of Power consumption from 154 to 145 Units for 1 Kg of Aza production byincreasing the productivity thereby saving 430 Units per day approximately.

Nutraceuticals - Oonaiyur Plant

1. VFD provided for Agitator motor

2. Installed APFC with Harmonic Reactor to save 20 KVA Demand and minimize watt loss

3. Thermography study conducted and high friction area identified and corrected

4. Motors were provided with VFD which resulted in substantial unit savings.

II. TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION Nellikuppam

1. A new cost effective polymer 'alyzene' has been put in to use to almost eliminatethe phosphoric acid use in the process

2. Zero liquid discharge system comprising of RO plant and evaporation systemcommissioned to manage the distillery effluent

3. Newly designed mill automation system commissioned. 3

Puducherry Plant

1. Pol loss in Bagasse reduced by installing specially designed 'Parry roller' in themilling tandem.

2. Electrostatic precipitator installed for reduction of particulate matter in boilerchimney.

Pudukottai Plant

1. Pol loss in Bagasse reduced by installing specially designed 'Parry roller' in themilling tandem.

2. A mobile phone based 'I-Cane' system has been implemented to track and improve theefficiency of the 'Cane Field Staff'.

Pugalur Plant

1. Pol loss in Bagasse reduced by installing specially designed 'Parry roller' in themilling tandem.

2. E-Boiler commissioned to eliminate 9 ata steam consumption in the sulphur burner

3. Induced draft cooling tower system commissioned in place of 'spray pond'.

Sankili Plant

1. Improved performance of FFE by correcting the tubes, juice distribution system andvapour separation system resulting steam saving from 37% on cane to 36% on cane.

2. Commissioned the HT capacitors for two numbers of 900KW, 11KV, 740 rpm HT motor forFibrizer application. Due to this the power factor is increased from 0.75 lag to 0.95 lagand capacity utilization also increased.

Sivaganga Plant

1. Developed and patented 'K-asn' granulation production system a waste to wealthinitiative.

2. Soot blower system implemented in the incineration boiler to facilitate onlinecleaning.

Bagalkot Plant

1. Pol loss in bagasse reduced from 2% to 1.81% by introducing triple nozzle lotusroller in milling tandem

2. E-boiler commissioned to eliminate 9 ata steams for sulphur melting.

3. Soot blower system modified for in the boiler for better cleaning

4. Cinder recovery commissioned to improve efficiency of the boiler

Bio Products - Thyagavalli Plant

1. In the process of Liquid-Liquid Extraction, extraction, settling and separation wascarried out in separate manner as batch processes. All the 3 processes are done in singleequipment on introduction of Westfalia Decanter as continuous process.

2. Installing the screw conveyor to reduce the discharging time of Wet Kernel.

3. Introducing the 5 Micron Bag filter to reduce the loss of Aza in PurificationSection.

III. FOREIGN EXCHANGE EARNINGS AND OUTGO

Particulars 2013-14 2012-13
(a) Earnings 12,267 53,359
(b) Outgo
- towards Expenditure 1829 808
- towards Dividend - 82

IV. ENERGY CONSUMPTION

Particulars 2013-14 2012-13
A Power & fuel consumption
1 Electricity:
(a) Purchased
Units (KWH) - 1,70,60,646 99,79,323
Total amount (Rs in lakh) 1,640 977
Rate per unit (Rs) 10 10
(b) Own generation
(i) Through Emergency Diesel Generator
Units (KWH) 21,85,754 24,70,493
Units per litre of Diesel oil 6 3
Cost per unit (Rs) 16 18
(ii) Generated through Steam turbine
Out of Own bagasse (KWH) 29,38,68,100 65,84,62,012
Out of outside fuel (KWH) 16,134 2,24,93,796
2. Furnace oil
Quantity (K.Litres) 1,065 752
Value (Rs in lakh) 460 300
Average rate / K.Ltr. (Rs) 43,192 39,902

 

Rs in lakh
Particulars 2013-14 2012-13
3. Others / Internal Generation
HSD:
Quantity (KL) 17290 653
Total amount (Rs in lakh) 364 318
Rate per KL (Rs) 2031 48,760
B. Consumption per unit of production (KWH) - Electricity
Consumption per unit of production (sugar) 300 301

 

On behalf of the Board
Chennai A.VELLAYAN
May 15, 2014 Chairman

Information as per Section 217 (2A) read with the Companies (Particulars of Employees)Amendment Rules, 2011 and forming part of the Directors' Report - Details of Remunerationpaid for the year ended 31st March, 2014

(A) EMPLOYED THROUGHOUT THE YEAR ENDED 31ST MARCH, 2014 AND WERE IN RECEIPT OFREMUNERATION AGGREGATING

NOT LESS THAN Rs 60,00,000/-

Name/(Age) Designation of the Employee/Duties Remuneration (Rs) Qualification/ Experience (Years) Date of Commencement of Employment Previous Employment
Manoj Kumar Jaiswal (50) Senior Vice President & Head - Management Development Centre 70,97,681 M.Sc., MBA (24) 19.08.2008 Infosys Technologies Limited

(B) EMPLOYED FOR PART OF THE YEAR ENDED 31ST MARCH, 2014 AND WAS IN RECEIPT OFREMUNERATION AGGREGATING NOT LESS THAN Rs 5,00,000/- PER MONTH

Name/(Age) Designation of the Employee/Duties Remuneration (Rs) Qualification/ Experience (Years) Date of Commencement of Employment Previous Employment
Joined during the year
V.Ramesh (56) Managing Director 15,26,042 B.Com., Grad CWA, PGDM (IIM) (34) 31.01.2014 Carborundum Universal Limited
Separated during the ye r
Sajiv K Menon (54) Business Head - Bio & Nutraceuticals 91,12,265 B.Tech & PGDM (32) 01.04.2012 Tube Investments of India Limited
Joseph Nathan (58) Vice President- Taxation and Management Audit 52,94,062 B.A, B.L, M.B.A (34) 07.08.1985 Uttam Reddy & Co, Advocates
P.Gopalakrishnan (51) Vice President(Finance) 39,09,716 B COM, AICWA, ACA (29) 05.11.2007 Aircel Limited
Ravindra S Singhvi (56) Managing Director 24,31,832 B.Com, FCA, FCS, LLB (33) 03.12.2010 Indo Rama Synthetics (India) Limited

1. The nature of employment of all employees above is contractual.

2. Remuneration as shown above includes salary, allowances, leave travel assistance,Company's contribution to Provident Fund, Superannuation Fund and Gratuity Fund, Medicalfacilities and perquisites valued in terms of actual expenditure incurred by the Companyin providing the benefits to the employees excepting in case of certain expenses where theactual amount of expenditure cannot be ascertained with reasonable accuracy, and in suchcases, notional amount as per Income-tax Rules has been adopted.

3. Remuneration as shown above does not include amount attributable to compensatedabsences as actuarial valuation is done for the Company as a whole only.

4. None of the employees is related to any Director of the Company.

On behalf of the Board
Chennai A.VELLAYAN
May 15, 2014 Chairman
   

Peer Comparison

Company Market Cap
(Rs. in Cr.)
P/E (TTM)
(x)
P/BV (TTM)
(x)
EV/EBIDTA
(x)
ROE
(%)
ROCE
(%)
D/E
(x)
EID Parry 3,443.04 0.00 2.70 16.30 0.3 4.4 1.46
Sh.Renuka Sugar 2,164.13 0.00 1.20 6.67 2.9 8.4 1.94
Balrampur Chini 1,862.59 0.00 1.53 5.70 12.8 11.2 1.47
Bajaj Hindusthan 1,620.88 0.00 0.63 10.97 -6.5 3.7 1.51
Bannari Amm.Sug. 1,093.15 38.10 1.15 5.20 16.2 16.1 0.54
Triven.Engg.Ind. 653.89 0.00 0.82 11.68 0.0 0.0 1.26
Dhampur Sugar 330.67 0.00 0.86 7.22 4.5 8.8 2.50
KCP Sugar &Inds. 239.27 8.65 1.09 3.39 18.8 21.3 0.38
Sakthi Sugars 203.97 0.00 3.64 15.23 0.0 0.0 11.83
Dalmia Bharat 189.42 63.24 0.42 5.57 4.1 7.1 1.69
DCM Shriram Inds 180.61 6.63 0.86 3.54 14.6 15.2 1.77
Ponni Sug.Erode 150.50 0.00 1.22 14.68 -6.5 -0.7 0.65
Ugar Sugar Works 140.63 0.00 1.62 6.22 16.0 11.0 2.94
Piccadily Agro 98.02 4.61 0.94 3.05 21.8 20.1 1.09
Vishnu Sugar 95.48 57.38 1.87 0.00 2.7 5.9 1.32

Futures & Options Quote

 
Expiry Date
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Instrument: NA
Expiry Date: NA
Strike Price: NA
Open Price: NA
Average Price: NA
No. of Contracts Traded: NA
Open Interest: NA
Underlying: NA
Option Type: NA
Market Lot: NA
Previous Close: NA
Day’s High | Low: NA | NA
Turnover (Cr.): NA
Open Int. Change: NA | NA
View detailed F& O quotes >>

Key Information

Key Executives:

A Vellayan , Chairman  

Anand Narain Bhatia , Director  

M B N Rao , Director  

V Ravichandran , Vice Chairman  


Company Head Office / Quarters:
Dare House No 2 NSC Bose Road,
Parrys Corner,
Chennai,
Tamil Nadu-600001
Phone : 91-44-25306789
Fax : 91-44-25340858
E-mail : investorservices@parry.murugappa.com
Web : http://www.eidparry.com
Registrars:
Karvy Computershare Pvt Ltd
Plot No 17-24
Vittal Rao Nagar
Madhapur
Hyderabad-500081

Fund Holding


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