SBEC Sugar Ltd


BSE: 532102 | NSE: NA | ISIN: INE948G01019 
Market Cap: [Rs.Cr.] 45 | Face Value: [Rs.] 10
Industry: Sugar

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Director's Report

DIRECTORS

Dear Shareholders,

Your Directors take pleasure in presenting the 19th Annual Report of theCompany together with the Audited Accounts for the year ended 31st March 2013.

FINANCIAL RESULTS

The summarised financial results of SBEC Sugar Ltd. as well as Consolidated with itssubsidiaries i.e. M/s. SBEC Bioenergy Ltd., M/s. SBEC Stockholding and Investment Ltd andM/s Modi Gourmet Limited are as follows:

(Rs. in Lacs)

SBEC SUGAR LTD. CONSOLIDATED
Financial Parameters Period ended 31.03.2013 Period ended 31.03.2012 Period ended 31.03.2013 Period ended 31.03.2012
Sales and other income 32068.30 32017.97 33309.57 33366.43
Profit/(Loss) Before Interest, Depreciation & Tax (2258.85) 925.22 (1602.60) 1753.39
Interest and Finance Charges 3096.65 2198.28 3552.68 2680.49
Depreciation and Amortisation 606.33 748.79 718.57 843.21
Prior period expenses (net) 1011.52 11.68 1011.52 11.68
Profit/(Loss) before Extra-Ordinary Expenses &
Provision for Taxation (6973.35) (2033.53) (6885.37) (1781.99)
Exceptional Items 6287.27 (1483.32) (295.41) (1483.32)
Profit/(Loss) before Tax (686.08) (3516.85) (7180.78) (3265.31)
Provision for Taxation 19.88 48.52
Deferred Tax Charge/ (Credit) 372.61 396.84 80.32
Profit/(Loss) After Tax (1058.69) (3516.85) (7597.50) (3394.15)
Transfer to Minority Interest 20.02 1140.31
Transfer to Molasses Storage Fund 7.20 7.22 7.20 7.22
Profit/(Loss) for the period after appropriation (1065.89) (3524.07) (7624.72) (4541.68)
Earning Per Share (in Rs.) (2.22) (7.38) (15.99) (9.51)

OPERATIONS

The cane crushing for the period under review was 92.38 Lacs quintals in 134 days withan average crushing rate of 68943 quintals per day as against 99.35 Lacs quintals in 151days with an average crushing rate of 65798 quintals per day for the previous period. Thesugar recovery has slightly increased to 8.67 % as against 8.23% in the previous period.

For the sugar season 2011-12, the Government of U.P had increased the cane price ascompared to last sugar season and the sugar market sentiments remained bearish throughtoutthe year. Due to resulting financial losses the company was not able to meet its caneprice obligation to farmers in time. The farmers resorted to agitation and disturbed theoperation of the company. Fearing damage to person and property management was forced toclose down the plant from July,2012 to October,2012, which affected the administration,repair & maintenance work of the plant during the year under review.

For the Sugar season 2012-13 the Government of U.P further increased the cane price anddemand for sugar and its prices remained sluggish. The farmers again resorted to agitationand workers also resorted to illegal strike. For the safety of person and propertymanagement left with no option but to declare a lockout in the plant w.e.f 8thJuly,2013 which was lifted by the management on 2nd August,2013 pursuant to thenegotiation and settlement arrived at before the Dy. Labour Commissioner, Meerut.

On the basis of annual audited accounts of the company as at 31stMarch,2013, the Board of Directors formed an opinion that the net worth of the company asat 31st March,2013 has been fully eroded and that the company has become a sickindustrial company as defined under Section 3(1)(o) of the Sick Industrial Companies(Special Provisions) Act, 1985.The Board of Directors decided that a reference will bemade with the Hon’ble Board for Industrial and Financial Reconstruction (BIFR) toseek determination of measures which would be adopted as required under Section 15(1) andother applicable provisions of the Sick Industrial Companies (Special Provisions) Act,1985(SICA).

FIXED DEPOSITS

During the period under review, the Company accepted/renewed deposits to the extent ofRs. 319 Lacs. The total amount of fixed deposit held as on 31st March 2013 wasRs. 466.25 Lacs . However, Rs. 417 lacs amount of fixed deposit is matured but not yetclaimed by the deposit holders.

DIRECTORS

In accordance with the provisions of Section 256 of the Companies Act, 1956 and Article125 of the Articles of Association of the Company, Mr. Gulab Chand Jain, Non ExecutiveIndependent Director and Mr. Jayesh Modi, Non Executive Director of the Company, retire byrotation at the ensuing Annual General Meeting and being eligible offer themselves forre-appointment.

SUBSIDIARY COMPANIES AND CONSOLIDATED FINANCIAL STATEMENTS

The Company have three Subsidiary Companies, namely SBEC Bio-energy Limited, SBECStockholding & Investment Limited and Modi Gourmet Limited. The audited statement ofaccounts alongwith the report of the Board of Directors, Auditor’s Report andstatement thereon for the year ended 31st March,2013 of SBEC Bio-energy Limitedis annexed. The Statement under Section 212 of the Companies Act,1956 in respect ofSubsidiary Companies is separately annexed.

In accordance with the General Circular No. 2/2011 dated 8th Februaury, 2011issued by the Ministry of Corporate Affairs, Government of India, the Board of Directorshas decided not to annex the annual accounts of the two Subsidiary Companies i.e SBECStockholding & Investment Limited and Modi Gourmet Limited in this Annual Report. Theannual accounts of these two Subsidiary Companies and the related detailed informationshall be made available to the shareholders of the Company and the Subsidiary Companiesseeking such information at any point of time. The annual accounts of these two SubsidiaryCompanies shall also be kept for inspection by any shareholder at the registered office ofthe Company and of the Subsidiary Companies concerned. The Company shall furnish a hardcopy of details of account of these two Subsidiary Companies to any shareholder on demand.

AUDITORS

M/s Doogar and Associates, Chartered Accountants, (Firm Registration No.000561N), whoare Statutory Auditors of the Company, retire at the conclusion of the ensuing AnnualGeneral Meeting and are eligible for reappointment.

COST AUDITOR

Pursuant to the order of the Central Government under the provisions of Section 233B ofthe Companies Act, 1956, your company had appointed M/s. M.K. Singhal & Co., CostAccountants, as cost auditors of the company, with the approval of Central Government.

ACCOUNTS AND AUDITORS’ REPORT

Reference to the Auditors comment on financial statement being prepared on goingconcern basis, the comments are self explanatory and need no further comments.

Reference to the Auditors comments on non provision for interest on late payment ofcane dues, it is hereby clarified that the company has not made provision of interest onlate payment of cane dues, as it is negotiating with the farmers for its waiver. In caseit has to be paid, it will be accounted for in the year of payment.

Reference to the Auditors comments on physical verification of fixed assets andinventory, it is hereby clarified that the physical verification of fixed assets andinventory is being taken during off season. However, during the off season falling in thefinancial year 2012-2013, physical verification could not be undertaken due tofarmer’s agitation from July 2012 to October,2012.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the requirement under section 217 (2AA) of Companies Act, 1956, theDirectors of your company declare as under:

I. That in the preparation of the Annual Accounts, the applicable accounting standardshad been followed alongwith proper explanation relating to material departures;

II. That the Company has selected such accounting policies and applied themconsistently, except as specified in Notes to Accounts which are self explanatory and madejudgments and estimates that are reasonable and prudent so as to give a true and fair viewof the state of affairs of the company at the end of the financial year and of the loss ofthe company for that year;

III. That proper and sufficient care has been taken for maintenance of adequateaccounting records in accordance with the provisions of the Act for safe guarding theassets of the company and preventing and detecting fraud and other irregularities;

IV. That the Annual Accounts are prepared on going concern basis.

CORPORATE GOVERNANCE

As per clause 49 of the Listing Agreement with the Stock Exchange, Report on CorporateGovernance, a Management Discussion and Analysis Statement, Certificate from the Auditorsof the Company confirming compliance with the conditions of Corporate Governance isincluded in the said Corporate Governance Report.

LISTING OF SECURITIES

The equity shares of your Company are listed on the Bombay Stock Exchange Limited andThe Calcutta Stock Exchange Association Limited. The Company’s application fordelisting of shares with The Calcutta Stock Exchange Association Limited is still pending.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

As stipulated under the provisions of Section 217 (1) (e) of the Companies Act, 1956read with the Companies (Disclosure of particulars in the Report of the Board ofDirectors) Rules, 1988, Annexure containing the particulars is annexed hereto which formsa part of this report

PARTICULARS OF EMPLOYEES

None of the employees of the company were in receipt of remuneration of more than limitprescribed under section 217 (2A) of the Companies Act 1956, read with the Companies(Particulars of Employees) Rules, 1975.

ACKNOWLEDGEMENTS

Your Directors take this opportunity to express their appreciation and gratitude to thefarmers and to the Co-operative Cane Societies for their invaluable support. YourDirectors also take this opportunity to express their appreciation and gratitude toGovernment Agencies, Shareholders, Business Associates, Employees, Suppliers and Bankersof the Company for their help and support continuously extended to the Company.

For & on behalf of the Board
For SBEC Sugar Ltd.
Place : New Delhi Umesh Kumar Modi
Date : 8th August, 2013 (Chairman & President)

ANNEXURE TO DIRECTORS’ REPORT

PARTICULARS OF EMPLOYEES IN TERMS OF SECTION 217 (2A) OF THE COMPANIES ACT, 1956, READWITH THE COMPANIES (PARTICULARS OF EMPLOYEES) 1975 (AS AMENDED).

(A) Persons employed throughout the financial year under review and were in receipt ofremuneration for the year aggregating of not less than Rs. 60,00,000/- per annum.

S.No. Name Designation / Nature of duties Qualifications Experience (Years) Date of Commencement of Employment Total remuneration Age Last Employment before joining the comp.
Nil

 

i. Nature of Employement : NIL
ii. Other term & Conditions : NIL
iii. Percentage of equity shares held : NIL

(B) Persons employed for part of the financial year under review and were in receipt ofremuneration not less than Rs. 5,00,000/- per month.

S.No. Name Designation / Nature of duties Qualifications Experience (Years) Date of Commencement of Employment Total remuneration Age Last Employment before joining the comp.
Nil

 

i. Nature of Employement : NIL
ii. Other term & conditions : NIL
iii. Percentage of equity shares held : NIL

PARTICULS REQUIRED UNDER THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OFDIRECTORS) RULES, 1988 FORMING PART OF THE DIRECTORS REPORT FOR THE YEAR ENDED 31ST MARCH,2013.

FORM A: DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY:

PARTICULARS UNIT CURRENT ACCOUNTING PERIOD (01.04.2012 – 31.03.2013) PREVIOUS ACCOUNTING PERIOD (01-04-2011 - 31.03.2012)
A. Power and Fuel consumption
Electricity
Quantity KWH 19442654 19611680
Total Conversion Charges Rs.
Per Unit Conversion Charges Rs.
Own generation
(i) Through Diesel Generator
Quantity KWH 9745 22523
Units per –ltr. of Diesel oil KWH 3.25 3.25
Total amount Rs. 149890 294560
Cost/ Unit Rs. 15.38 13.08
(ii) Through Steam Turbine/Generator
Quantity KWH 6780070
Units per- ltr. of fuel oil /gas KWH
Cost/ unit Rs. 0.62
B. Consumption per MT of sugar production
Electricity KWH 245.90 239.86

FORM B:

DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION

(A) RESEARCH AND DEVELOPMENT (R& D)

The Company per se did not carry out any basic R & D work during the year. However,some activities carried out through indigenous sources have resulted in improvement in theperformance of the plant.

(B) TECHNOLOGYABSORPTION, ADAPTATIONAND INNOVATION

1. Efforts in brief, made towards technology absorption, adaptation and innovation:

2. Benefits derived as a result of the above efforts, e.g. product improvement, costreduction, product development, import substitution etc.: 1 & 2: The Company hasacquired the latest technology for production of sugar.

3. In case of imported technology (imported during the last five years reckoned fromthe beginning of the financial year), following information may be furnished:

a. Technology imported- - None
b. Year of Import - Not Applicable
c. Has technology been fully absorbed? - Not Applicable
d. If not fully absorbed, areas where this has not taken place, reasons therefore and future plans of action. - Not Applicable

FOREIGN EXCHANGE EARNING AND OUTGO

i) Activities relating to exports; initiatives taken to increase exports; developmentof new export markets for products and services; and export Plans: Efforts are being madetowards export of the product of the company.

ii. (Rs. in Lacs)

Particulars Current Accounting Period (01.04.2012–31.03.2013) Previous Accounting Period (01.04.2011-31.03.2012)
Total foreign exchange used 33.22 22.28
Earned

Note:- Previous year figures regrouped/rearranged, whenever required

For & on behalf of the Board
For SBEC SUGAR LTD.
Place : New Delhi Umesh Kumar Modi
Date : 8th August, 2013 (Chairman & President)
   

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 2,864.66 0.00 2.14 7.32 5.0 8.7 1.06
Sh.Renuka Sugar 1,473.50 0.00 0.82 6.67 2.9 8.4 1.94
Balrampur Chini 1,329.26 0.00 1.00 5.70 12.8 11.2 1.47
Bajaj Hindusthan 1,170.10 0.00 0.39 10.97 -6.5 3.7 1.51
Bannari Amm.Sug. 1,054.25 24.86 1.12 5.20 16.2 16.1 0.54
Triven.Engg.Ind. 478.40 0.00 0.56 13.48 1.3 6.0 0.94
Dhampur Sugar 261.45 0.00 0.57 7.22 4.5 8.8 2.50
KCP Sugar &Inds. 214.89 9.48 0.98 3.39 18.8 21.3 0.38
Sakthi Sugars 183.77 0.00 0.74 15.23 0.0 0.0 11.83
Dalmia Bharat 140.85 0.00 0.31 5.57 4.1 7.1 1.69
Shree Hanuman Sg 120.53 35.60 1.59 0.00 -1.3 -1.0 0.20
Ugar Sugar Works 119.25 0.00 1.03 6.22 16.0 11.0 2.94
DCM Shriram Inds 116.84 8.92 0.62 5.54 5.1 9.8 2.15
Vishnu Sugar 107.83 0.00 2.15 0.00 2.7 5.9 1.32
Ponni Sug.Erode 102.94 21.45 0.80 10.89 17.5 9.5 0.55

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Key Information

Key Executives:

Umesh K Modi , Chairman & President  

Abhishek Modi , Executive Director & CEO  

Kum Kum Modi , Director  

G C Jain , Director  


Company Head Office / Quarters:
Village Loyan Malakpur,
Baraut Tehsil,
Baghpat,
Uttar Pradesh-250611
Phone : 91-01234-263292/263293/264681
Fax : 91-01234-264746
E-mail : investors@sbecsugar.com
Web :
http://www.modigroup.com
http://groupsugar.htm
Registrars:
Beetal Fin.&Computer Ser.P Ltd
Beetal House 3rd Flr
99 Madangir

New Delhi - 110062

Fund Holding

 
Scheme Name No. of Shares
No data found

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