EID Parry (India) Ltd


BSE: 500125 | NSE: EIDPARRY | ISIN: INE126A01031 
Market Cap: [Rs.Cr.] 2,880 | Face Value: [Rs.] 1
Industry: Sugar

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Director's Report

DIRECTORS

Your Directors have pleasure in presenting their report together with the auditedaccounts for the financial year ended 31st March, 2013.

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

FINANCIAL RESULTS

Rs. in lakh

Particulars 2012-13 2011-12
Total Income 209,978 1,71,217
Profit Before Interest, Depreciation and Tax 60,562 27,447
Less : Interest 13,668 6,443
Depreciation 10,787 7,397
Profit Before Tax 36,107 13,607
Less: Provision for Tax :
- Current 839 750
- MAT Credit entitlement (839) (750)
- Deferred 2,936 (125)
Profit After Tax 33,171 13,732
Add : Surplus brought forward 37,966 34,164
Amount available for Appropriation 71,137 47,896
APPROPRIATIONS
Transfer to General Reserve 35,000 1,400
Transfer to Debenture Redemption Reserve 1,250 1,583
Dividend on Equity Capital :
Interim dividend paid 10,431 6,947
Dividend Distribution Tax (Net) - -
Surplus carried to Balance Sheet 24,456 37,966
TOTAL 71,137 47,896

PERFORMANCE

The Company posted an all-round improved performance with an impressive top line growthand earnings reflecting the robustness of its corporate strategy of creating multipledrivers of growth. This performance is particularly noteworthy when viewed against thebackdrop of the extremely challenging business context resulting out of a regulatedregime.

This year's performance includes Units of Haliyal and Sankili of Parrys SugarIndustries Limited (PSIL), which were merged with the company as a result of the Scheme ofDemerger approved by the Courts.

The Company recorded revenue of Rs. 2,09,978 lakh (including other income of Rs. 10,729lakh) for the year ended 31st March, 2013 as compared to Rs. 1,71,217 lakh in the previousyear 2011-12.

Other income for the year was Rs. 10,729 lakh (excluding bonus debenture of Rs. 26,573lakh) as against Rs. 17,038 lakh in 2011-12. The dividend income for the year was Rs.32,182 lakh (including the bonus debenture of Rs. 26,573 lakh) against Rs. 12,561 lakh in2011-12. Interest income earned during the year was Rs. 3,347 lakh as against Rs. 2,247lakh in 2011-12.

The Earnings before Interest, Depreciation, Tax and Amortization for the year was Rs.60,562 lakh representing 30% of total sales as against previous year's Rs. 27,447 lakh.Performance of sugar by-product division namely distillery and dividend income receivedhave contributed towards EBIDTA during the year.

Sugar division's sales increased from Rs. 1,43,782 lakh in 2011-12 to Rs. 1,87,888 Lakhin 2012-13 driven by increased Sugar and Alcohol sales.

Bio Pesticides division's sales has marginally reduced to Rs. 7,321 Lakh as against Rs.7,628 Lakh in 2011-12.

Nutraceuticals division's sale has increased to Rs. 5,731 Lakh as against Rs. 4,359Lakh in 2011-12.

BUSINESS SEGMENTS

SUGAR

The Company, along with its subsidiaries, has nine sugar plants spread across SouthIndia of which four are in Tamil Nadu, one in Puducherry, three in Karnataka and one inAndhra Pradesh. The company has a sugarcane crushing capacity of 34,750 TCD andcogeneration capacity of 146 MW across its sugar mills. The integrated sugar units havebeen designed to optimize process efficiencies, increase sugarcane recovery ratio, andincrease energy efficiency through reduced steam and power consumption. The company duringthe year focused on removal of bottlenecks and improving process efficiencies.

The Company crushed 65 lakh MT of sugar cane during the financial year 2012-13. Therecovery of sugar from sugar cane was at 9.23% as against 9.04% in the previous year owingto better quality of sugarcane crop and the integration of Haliyal & Sankili unitsfollowing the demerger from PSIL. The Company produced 6,01,381 MT of sugar and 3,21,891MT of molasses during the financial year 2012-13. This was possible due to increased usageof mechanical harvesters hereby reducing the dependence on manual labour, encouragingfarmers to plant High Yielding Varieties of sugar cane, increased area under dripirrigation, soil fertility improvement activities etc.

The company sold 4,95,218 MT of Sugar as against 4,04,841 MT during the previous year.The company also sold 1,10,902 MT of Molasses as against 90,373 MT in the previous year.

POWER

The operations of power generation were smooth across all of the six cogen plants.While most of the power generated was continued to be used captively to run the plants,the surplus power was sold to TNEB and other merchant power purchasers.

Power generation was higher at 6,534 MW as compared to 5,243 MW in the previous year(including Haliyal and Sankili). The company exported 4,100 MW of power during the year asagainst 3,427 MW in the previous year.

DISTILLERY

During the year, Industrial Alcohol/ENA production was higher at 654 Lakh Litres ascompared to 398 Lakh Litres during the previous year, resulting in an increase of over 64%over the previous year on account of greater efficiencies of production in Sivagangadistillery as well as the integration of Haliyal and Sankili units into EID's sugardivision.

BIO PRODUCTS

Bio Pesticides

The Bio-Pesticides Division registered revenue of Rs. 7,321 lakh in 2012-13 as comparedto Rs. 7,628 lakh of previous year and accounting for 4% of the Company's Revenue. Thedrop in turnover was due to lower sales in domestic market largely due to the weak agroclimatic factors that prevailed during the year in our key markets. PBIT for the year washowever higher at Rs. 1,557 lakh against Rs. 1,305 lakh in 2011-12. Sale of Technical toUSA achieved an impressive growth of 25% over previous year. Production of Technical Azawas 10,141 Kgs, the highest ever in a year.

Nutraceuticals

The Nutraceuticals Division's turnover was Rs. 5,731 lakh for the year ended 31stMarch, 2013 representing 3% of the Company's Revenue. About 76% of this representsexports. remium Organic Spirulina continues to outperform competition in its segment andsales during the year had grown at 41% over the previous year. During the year, thecompany has successfully stabilized the production process of Astaxanthin, a carotenoidextracted from Haematococcus pluvialis, a micro algae, by producing 5,135 kgs of biomass(1.5% Carotenoid equivalent). The company is pursuing the ethical marketing route in thedomestic market for creating awareness and acceptance of the OTC products, consideringthat the use of Nutraceutical products still depend on doctor's endorsement.

DIVIDEND

During the year, the Company had paid 600% interim dividend (Rs. 6 per equity share ofRs. 1 each) in February, 2013. The Board has not recommended final dividend for the yearended March 31, 2013.

CORPORATE DEVELOPMENTS

ACQUISITION OF EQUITY SHARES FROM CARGILL ASIA PACIFIC HOLDINGS PTE LIMITED IN SILKROADSUGAR RIVATE LIMITED

The Company entered into a Share Purchase Agreement with Cargill Asia Pacific HoldingsPte Ltd and Silkroad Sugar Private Limited and purchased 5,69,77,800 equity shares of Rs.10/- each from Cargill Asia Pacific Holdings Pte Ltd. Consequent to the above purchase ofequity shares, the Company's holding in Silkroad Sugar Private Limited has increased to99% and has become Company's subsidiary.

SCHEME OF ARRANGEMENT - MERGER OF DEMERGED SUGAR UNDERTAKINGS OF PARRYS SUGARINDUSTRIES LIMITED INTO E.I.D.-PARRY (INDIA) LIMITED

Pursuant to the scheme of approval by the High Courts of Karnataka and Madras, twounits of Parrys Sugar Industries Limited (PSIL) namely Haliyal unit and Sankili unit gotmerged with E.I.D.-Parry (India) Limited with effect from 1st April, 2012.

The Company has allotted 18,38,578 equity shares to the equity shareholders of ParrysSugar Industries Limited pursuant to the Scheme of Arrangement (Demerger) during thefinancial year and the Equity Shares are listed and traded both in National Stock Exchangeof India Limited (NSE) and Bombay Stock Exchange Limited (BSE).

INVESTMENTS

During the financial year, the Company had invested an amount of Rs. 50 Crore in theEquity Share Capital of Sadashiva Sugars Limited, a wholly owned subsidiary, by convertinga part of unsecured loan into equity shares.

During the financial year, the Company had also invested an amount of Rs. 15 Crore in8% Cumulative Redeemable Preference Shares of Rs. 10/- each of Parrys Sugar IndustriesLimited by converting a part of unsecured loan.

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, the Company had not granted any options during the yearended 31st March, 2013. The details of the Options granted up to 31st March, 2013 andother disclosures as required under Clause 12 of the Securities and Exchange Board ofIndia (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999are set out in the Annexure 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"AA" (High Safety) with negative outlook. The Company continued to enjoy A1+rating for short term 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

Coromandel achieved a revenue of Rs. 8,62,727 lakh for the year ended 31st March, 2013and the profit after tax was Rs. 44,399 lakh. The Company's Board had recommended adividend of Rs. 4.50 per share (450%) for the year ended 31st March, 2013.

Parrys Sugar Industries Limited

The Company recorded revenues of Rs. 10,084 lakh for the 12 months period ended 31stMarch, 2013. After providing for Depreciation, Interest and Tax, the loss after tax wasRs. 1,293 lakh.

Sadashiva Sugars Limited

The Company recorded revenues of Rs. 12,206 lakh for the year ended 31st March, 2013.The Profit before finance costs and exceptional items amounted to Rs. 87 lakh. Net lossfor the period was Rs. 3,004 lakh.

Silkroad Sugar Private Limited

The revenue for the year was Rs. 311 lakh. During the year ended 31st March, 2013 thecompany made a loss before tax of Rs. 6,580 lakh.

Parry Infrastructure Company Private Limited

During the year under review the company earned an income of Rs. 6,474 lakh with ProfitBefore Tax of Rs. 521 lakh. After providing for tax provision, the Profit after Tax wasRs. 368 lakh.

Parry America Inc.

Parry America Inc, the 100% subsidiary based in US, reported an income of US$ 7,537thousand for the year ended 31st March, 2013. The Profit after Tax was US$ 361 thousand.

Parry Phytoremedies Private Limited

The revenue for the year was Rs. 519 lakh. During the year ended 31st March, 2013 thecompany made a loss before tax of Rs. 375 Lakh.

Parrys Sugar Limited

The Company during the year ended 31st March 2013, earned an income of Rs. 14 lakh withprofit after tax of Rs. 14 lakh.

Parrys Investments Limited

During the year ended 31st March, 2013 the Company earned an income of Rs. 3 lakh andthe Profit after Tax was Rs. 2 lakh.

US Nutraceuticals LLC

This overseas Subsidiary, during the year ended 31st March, 2013 earned an income ofUS$ 15,969 thousand and the Profit after Tax was US$ 55 thousand.

SUBSIDIARY ACCOUNTS

In terms of the direction under Section 212(8) of the Companies Act, 1956 vide GeneralCircular No.2/2011, earing 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, 2013.

The annual accounts of the subsidiary companies and the related detailed informationwill be made available to shareholders of the holding and subsidiary companies seekingsuch information at any point of time. The annual accounts of the subsidiary companieswill also be available for inspection by any shareholder in the Head Office of the holdingcompany and of the subsidiary companies concerned during working hours upto the date ofthe Annual General Meeting. A hard copy of details of accounts of subsidiaries will befurnished 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, AS-23 and AS - 27) issued by theInstitute of Chartered Accountants of India and the same together with Auditors' Reportthereon form part of the Annual Report.

DIRECTORS

Mr. A. Vellayan, Director is liable to retire by rotation in terms of Articles 102 and103 of the Articles of Association of the Company and being eligible, offer himself forre-appointment. Mr. R A Savoor, Director liable to retire by rotation at the ensuingAnnual General Meeting has opted not to seek re appointment.

Mr. Ravindra S Singhvi, Managing Director, resigned from the Board with effect from10th April, 2013. The Board places on record its grateful appreciation for the valuableservices rendered and contributions made by him.

Mr. V. Manickam who resigned from the Board pursuant to LIC withdrawing theirnomination, joined the Board on 30th January, 2013 as an Independent Director and willhold office till the ensuing Annual General Meeting. The Company had received notice froma member proposing the appointment of Mr. V. Manickam as a Director of the Company.

As required under Clause 49 of the Listing Agreement relating to Corporate Governance,a brief resume, expertise and details of other directorships of Mr. A. Vellayan and Mr. V.Manickam, Directors are provided in the Notice of the ensuing Annual General Meeting.

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

Mr. P. Gopalakrishnan, Manager appointed under Companies Act, 1956 & Vice President(Finance), has given a certificate to the Board as contemplated in Clause 49 of theListing Agreement.

TRANSFER TO THE INVESTOR EDUCATION AND PROTECTION FUND

In terms of Section 205C of the Companies Act, 1956 an amount of Rs. 20.74 lakh beingunclaimed dividend of 2004-05 was transferred during the year to the Investor Educationand Protection Fund established 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 or before 31st March, 2013. TheCompany had discontinued 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 ended31st March, 2013 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 andsuch judgements and estimates that are reasonable and prudent have been made so as to givea true 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 adequateaccounting records in accordance with the provisions of the Companies Act, 1956 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities. To ensure this, the Company has established internal control systems,consistent with its size and nature of operations. In weighing the assurance provided byany such system of internal controls its inherent limitations should be recognised. Thesesystems are reviewed and updated on an ongoing basis. Periodic internal audits areconducted to provide reasonable assurance of compliance with these systems. The AuditCommittee meets at regular intervals to review the internal audit function;

• Proper systems are in place to ensure compliance of all laws applicable to theCompany;

• 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 re-appointed as theStatutory Auditors of the Company and to hold office till the conclusion of the nextAnnual General Meeting of the Company. M/s. Deloitte Haskins & Sells, CharteredAccountants, Chennai have forwarded their certificate to the Company, stating that theirre-appointment, if made, will be within the limit specified in that behalf in Subsection(1B) of Section 224 of the Companies Act, 1956.

COST AUDITOR

Mr. D Narayanan, Cost Accountant, who was appointed as Cost Auditor for the year ended31st March, 2012 has filed the following cost audit reports to Central Government

Sl. No. Product Due date of filing cost audit report Actual date of filing cost audit report
1. Sugar 28.02.2013 31.01.2013
2. Cogeneration 28.02.2013 31.01.2013
3. Industrial Alcohol 28.02.2013 31.01.2013
4. Neem based Pesticide 28.02.2013 31.01.2013

*As per Central Government Circular No.2/2013 dated January 31,2013, Ministry ofCorporate Affairs has extended the time limit for filing of Cost Audit Report for thefinancial year ended 31.03.2012 upto 28th February, 2013 or 180 days from the close ofCompany's financial year whichever is later.

The Company had filed the Compliance Report with Ministry of Corporate Affairs in FormA on 31st January, 2013 within the due date of 28th February, 2013 as per The Companies(Cost Accounting Records Rules), 2011.

The Company received the approval of the Central Government for appointment of M/sGeeyes & Co., Cost Accountants as Cost Auditors for the financial year 20122013.

SECRETARIAL AUDIT REPORT

As a measure of good corporate Governance practice, the Company appointed M/s. R.Sridharan & Associates, Practising Company Secretaries, to conduct Secretarial Audit.

For the year ended 31st March, 2013 M/s. R. Sridharan & Associates, PractisingCompany Secretaries has conducted the secretarial audit and the report has been reviewedby the Board.

PARTICULARS OF EMPLOYEES

Under 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 ofemployees are set out in the Annexure to the Directors' Report.

FORWARD LOOKING STATEMENTS

This Report contains forward-looking statements that involve risks and uncertainties.When used in this Report, the words "anticipate", "believe","estimate", "expect", "intend", "will", and othersimilar expressions as they relate to the Company and/or its businesses are intended toidentify such forward-looking statements. The Company undertakes no obligation to publiclyupdate or revise any forward-looking statements, whether as a result of new information,future events, or otherwise. Actual results, performances or achievements could differmaterially from those expressed or implied in such forward-looking statements. Readers arecautioned not to place undue reliance on these forward-looking statements that speak onlyas of their dates. This report should be read in conjunction with the financial statementsincluded herein and the notes thereto.

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
April 30, 2013 Chairman

Annexure to the Directors' Report

Statement as at 31st March, 2013 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
Rs. 64.80 Rs. 75.70 Rs. 94.15
For the Options granted from 31.08.2007 to 20.03.2009, each Option represents 1 Equity Share of Rs. 2 each.

24.04.2008 Rs. 103.60

28.07.2008 Rs. 92.98

24.09.2008 Rs. 106.30

29.10.2008

20.03.2009

28.01.2011

Rs. 74.95

Rs. 69.13 Rs. 225.15
For the Options granted from 28.01.2011 to 24.10.2011, each Option represents 1 Equity Share of Rs. 1 each. 29.04.2011 Rs. 240.90 27.07.2011 Rs. 269.10 24.10.2011 Rs. 220.90
(c) Total number of Options vested 20,02,460
(d) Total number of Options exercised 17,00,658
(e) Total number of Shares arising as a result of exercise of Options 17,00,658
(f) Total number of Options lapsed / cancelled 16,93,000
(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 2012-13) Rs. 191 lakh
(i) Total number of Options in force 6,40,342
(j) Details of Options granted to
i) Senior Managerial Personnel As provided below -
Name & Designation No. of options granted
1. Mr.P.Gopalakrishnan (Vice President-Finance) 85,200
2. Mr.S.K.Sathyavrdhan (Vice President - HR) 95,200
3. Mr.Suresh Krishnan (Company Secretary) 18,800
ii) Any other employee who received a grant in any one year of Options amounting to 5% or more of the Options granted during that year 1. Mr.D.Kumaraswamy 1,83,200
2. Mr. T.Kannan 19,600
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
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. 19.08
(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 2012-13 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. 175 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 As reported 33,171
Add: Intrinsic Value Compensation Cost Nil
Less: Fair Value Compensation Cost (Black Scholes model) 175
Adjusted Net Income 32,996
Earnings per Share Basic (Rs.) Diluted (Rs.)
As reported 19.08 19.08
As adjusted 18.98 18.98
(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 stock (Exercise Price - EP) (Market Price - MP) Particulars Weighted average exercise price per option (Rs.) Weighted average fair value per option (Rs.)
EP > MP 234.10 88.33
EP = MP - -
EP < MP 77.53 27.37
(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. Steam saving measures like reconfiguration of evaporator scheme, waste heatrecovery, use of Direct contact heaters, use of non-condensable gases for molassesconditioning and syrup concentration by alternative methods were undertaken. This drive isto reduce steam consumption from 42.0% to 38.6% on cane.

2. Two cooling Water Pumps in operation was replaced by single higher capacity Pump(200 K.W & 3,000 m3 / hr), due to which the energy saving is 2,250 units/day.

Pondicherry Plant:

1. Planetary gear box was provided for Crystalliser which resulted in the savings of86,400 units per annum.

Pudukottai Plant:

Undertaken steam saving measures like

1. PHE for a Centrifugal washing system using Exhaust condensate as heating media.

2. E Melting system used in place of sulphur melting.

3. Hot water for Transient heater.

Pugalur Plant:

1. 5th body brix to evaporator flow vs steam control valve automation made to optimizeexhaust steam consumption and steady syrup brix.

2. 1st body vapour provided in place of exhaust steam for C-massecuite transientheaters.

3. VFD for MVXLR drive provided to improve the performance of MVXLR.

4. Diversion of SK hydraulic testing water to raw water sump and reduction inconsumption of fresh water.

5. Provided VFD for all pumps in the Syrup clarifier.

Pettavaithalai plant:

1. A new 2 Roller mill with pressure feeders was installed as the last mill. Thisresulted in Bagasse moisture reduction from 51% to 48.5% on an average. Further the powerconsumption also reduced from 800 Hp to 600 Hp.

2. Old 2 speed batch centrifugal machine replaced by energy efficient DC drive.

3. Elimination of 9 Ata steam for SO2 burner, super heater wash water system, sugarmelter and molasses conditioner by using Electric heater, hot condensate and vapour.

4. DM water flashed with the first body condensate to increase the Water temperature.

Sivaganga Plant:

1. VFD for Vacuum pumps, Cooling tower pumps, process pumps and cooling tower Fans hasbeen installed which conserves power up to 150 kw/hr.

2. Pumps mechanical seal cooling water recycle system is installed which conserves 120KL/day of ground water.

Haliyal Plant

1. Instrument air compressors operation through the existing VFD's. The total energysaving @ 6 Kwh for the operation of 150 days is around 21,600 units.

2. 650 mm dia 3 Ata exhaust line from turbine QCNRV to 50 mtrs length replaced by 1,000mm dia line. This has reduced the pressure drop to 0.4 Kg.sqcm as against 0.8 Kg.sqcm.

3. Introduction of second vapour curtain in cane diffuser increased the cane diffusertemperature by 4o to 5o Celsius by controlling vapour loss.

4. Introduction of plate type heat exchangers in pan condensates for centrifugal waterheating, adding one more pan in 3rd vapour boiling helped to reduce steam consumption.

5. Introduced condensate flash system in distillery spent wash evaporator for steamsaving and cooling of condensate temperature with plate type heat exchangers wereintroduced to heat raw and concentrated spent wash in distillery. This has helped tostabilize distillery at rated capacity ie 45 KLPD.

Sankili Plant

1. Direct Contact Heaters (DCH) for syrup heating from 600c to 800c by using DEVC 2ndbody vapour for syrup clarification system resulting steam saving of 0.03%.

2. DCH for filtrate heating from 550c to 750c. DEVC 2nd body vapour is being used.

3. Introduced a Plate type Heat exchanger to raise the temperature of vapour condensatefrom 850c to 1,100c for more flash recovery by extracting the heat from exhaustcondensate.

4. Planetary gears for 3 number of Crystallisers. Earlier there was a drive of 15 HPand currently running with 3 HP.

5. Installed VFDs for Sulphated juice pump and for air blower. Power saving of 15%.

6. Combustion control for boiler taken into operation and increased efficiency ofboiler by 0.5%

7. The capacity of the Continuous Vacuum pan was increased from 15 tons to 20 tonswhich resulted in final molasses purity drop and increase in recovery by 0.01 % .

Bio Products - Thyagavalli Plant

1. Chiller compressor is replaced by Screw compressor instead of Reciprocating andthereby power saving of 250 units / day.

2. By Eliminating Hot spot in different locations and bringing down to acceptablelimits and thereby power saving 20 units / day.

3. Reduction of Neutral current and thereby power saving 20 units / day.

4. In distillation column four pre-heater which are in series and have been split intotwo parallel and thereby Feed Temp is increased and furnace oil saved 3 Ltrs / day.

5. Increased solvent condensing capacity area and thereby vapour loss reduced say 1.6kg / day.

Nutraceuticals - Oonaiyur Plant

1. APFC with Harmonic Reactor was installed to save 20 KVA demand and minimize Wattloss.

2. Agitator motors were provided with VFD which resulted in substantial unit savings.

II. TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION

Puducherry Plant

1. Fibrisor modified from Hard face Hammer to Domit tip Hammer.

Pudukottai Plant

1. Reducing the Pol % FC from 1.8 to 1.6 by reconditioning of existing Vacuum filter.

2. Reducing the FM purity from 32 to 31 by doing modification in c-grain storage &feeding to pan.

Pugalur Plant

1. Use of grease lubrication for mill rollers instead of conventional heavy oillubrication system.

2. Vapour space height increased by 1,250 mm.

3. Introduction of melt sulphitation process to improve colour.

4. Hydraulic lifting system for opening the juice heater doors in place of conventionalchain pulley block and improved operational safety.

5. Mass flow meter with density correction installed for raw juice flow measurement andincorporated mill automation.

Pettavaithalai Plant

1. Mill house automation to optimise the power consumption and to achieve regulatedcrushing.

Sivaganga Plant

1. RO water used in place of DM water for ENA dilution in the distillation section.

2. Hydro jet cleaning system installed for effective cleaning.

Haliyal Plant

1. Vapour curtains used in cane diffuser for saving steam.

2. Usage of plate type heat exchanger for cooling water in molasses tank cooling.

3. Using anaerobic process of treatment for distillery evaporator condensate effluent.

Sankili Plant

1. Dilution Molasses being used for C-fore worker for lubrication purpose byeliminating the hot water. Final Molasses purity reduced by 0.03 units.

2. Introduced a recirculation tank with aerator for better performance of SCS. Noticeda colour reduction of 30-35 % in syrup.

3. Arrangement of online CIP in ENA condenser cleaning. This had reduced down time ofcolumn.

Bio Products - Thyagavalli Plant

1. Purification, Filtration and Drying are carried out in separate manner. All the 3process are done in single equipment on introduction of ANFD.

2. VFFS installed and fully auto filling done instead of manual packing in solidformulation.

3. Fuel additive added in furnace oil, because of that better atomization.

4. ATFE Condenser capacity 6.93m2 replaced with higher capacity of 20m2.

III. FOREIGN EXCHANGE EARNINGS AND OUTGO

Rs. in lakh

Particulars 2012-13
(a) Earnings 53,359
(b) Outgo
- towards Expenditure 808
- towards Dividend 82

IV. ENERGY CONSUMPTION

Particulars 2012-13 2011-12
A Power & fuel consumption
1 Electricity:
(a) Purchased
Units (KWH) 99,79,323 78,92,848
Total amount (Rs. in lakh) 977 524
Rate per unit (Rs.) 10 7
Particulars 2012-13 2011-12
(b) Own generation
(i) Through Emergency Diesel Generator
Units (KWH) 24,70,493 23,00,542
Units per litre of Diesel oil 3 3
Cost per unit (Rs.) 18 14
(ii) Generated through Steam turbine
Out of Own bagasse (KWH) 65,84,62,012 48,64,90,303
Out of outside fuel (KWH)

2,24,93,796

5,96,61,035

2. Furnace oil
Quantity (K.Litres) 752 566
Value (Rs. in lakh) 300 209
Average rate / K.Ltr. (Rs.) 39,902 36,910
3. Others / Internal Generation
HSD:
Quantity (KL) 653 577
Total amount (Rs. in lakh) 318 246
Rate per KL (Rs.) 48,760 42,545
B. Consumption per unit of production (KWH) - Electricity
Consumption per unit of production (sugar) 301 313

 

On behalf of the Board
Chennai A.Vellayan
April 30, 2013 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, 2013

(A) EMPLOYED THROUGHOUT THE YEAR ENDED 31ST MARCH, 2013 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
Ravindra S Singhvi* (55) Managing Director 1,59,91,285 B.Com, FCA, FCS, LLB (32) 03.12.2010 Indo Rama Synthetics (India) Limited
Sajiv K Menon (53) Business Head - Bio & Nutraceuticals 73,00,743 B.Tech & PGDM (31) 01.04.2012 Tube Investments of India Limited
Manoj Kumar Jaiswal (49) Senior Vice President & Head - Management Development Centre 68,68,683 M.Sc., MBA (23) 19.08.2008 Infosys Technologies Limited

* Resigned with effect from April 10, 2013.

(B) EMPLOYED FOR PART OF THE YEAR ENDED 31ST MARCH, 2013 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
Raghunandan K (55) Executive under Deputation 72,67,520 MS Chem., Engg (32) 11.07.1988 IEL Limited
Ranganathan K E (50) Executive under Deputation 70,39,273 B.Com, ACA., ACS (29) 10.10.1994 TVS Electronics 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
April 30, 2013 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 2,879.60 0.00 2.15 7.32 5.0 8.7 1.06
Sh.Renuka Sugar 1,503.71 0.00 0.84 6.67 2.9 8.4 1.94
Balrampur Chini 1,421.06 0.00 1.07 5.70 12.8 11.2 1.47
Bajaj Hindusthan 1,227.65 0.00 0.41 10.97 -6.5 3.7 1.51
Bannari Amm.Sug. 1,060.55 25.01 1.13 5.20 16.2 16.1 0.54
Triven.Engg.Ind. 479.69 0.00 0.56 13.48 1.3 6.0 0.94
Dhampur Sugar 268.03 0.00 0.58 7.22 4.5 8.8 2.50
KCP Sugar &Inds. 216.03 9.53 0.99 3.39 18.8 21.3 0.38
Sakthi Sugars 184.73 0.00 0.75 15.23 0.0 0.0 11.83
Dalmia Bharat 143.69 0.00 0.32 5.57 4.1 7.1 1.69
Ugar Sugar Works 126.56 0.00 1.09 6.22 16.0 11.0 2.94
DCM Shriram Inds 125.19 9.56 0.67 5.54 5.1 9.8 2.15
Vishnu Sugar 107.83 0.00 2.15 0.00 2.7 5.9 1.32
Shree Hanuman Sg 103.51 30.57 1.35 0.00 -1.3 -1.0 0.20
Ponni Sug.Erode 103.20 21.51 0.80 10.89 17.5 9.5 0.55

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Key Information

Key Executives:

A Vellayan , Chairman  

R A Savoor , Director  

Anand Narain Bhatia , Director  

M B N Rao , Director  


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

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