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SBEC Sugar Ltd

BSE: 532102 | NSE: ISIN: INE948G01019
Market Cap: [Rs.Cr.] 27.40 Face Value: [Rs.] 10
Industry: Sugar

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Director's Report
DIRECTOR

Dear Shareholders,

Your Directors take pleasure in presenting the 20th Annual Report of the Company together with the Audited Accounts for the year ended 31st March 2014.

FINANCIAL RESULTS

The summarised financial results of SBEC Sugar Ltd. as well as Consolidated with its subsidiaries i.e. M/s. SBEC Bioenergy Ltd., M/s. SBEC Stockholding and Investment Ltd and M/s Modi Casings & Packaging Private Limited {Formerly known as M/s Modi Gourmet Limited) are as follows:

SBEC SUGAR LTD.

CONSOLIDATED

Financial Parameters Period ended Period ended Period ended Period ended
31.03.2014 31.03.2013 31.03,2104 31.03.2014
Sales and other income 40266.65 32068,30 41169.12 33309.57
Profit/(Loss) Before interest, Depreciation & Tax (1540.81) (2258.85) (1254.25) (1602.60)
Interest and Finance Charges 2584.05 3096.65 3261.12 3552.68
Depreciation and Amortisation 613.14 606.33 753.76 718.57
Prior period expenses (net) 618.09 1011.52 618.15 1011.52
ProfitZ(Loss) before Extra-Ordinary Expenses & Provision for Taxation (5356.09) (6973.35) (5887.28) (6885.37)
Exceptional Items - 6287.27 - (295.41)
ProfitZ(Loss) before Tax (5356.09) (686.08) (5887.28) (7180.78)
Provision for Taxation - - - 19.88
Deferred Tax Charge/ (Credit) - 372.61 (158.72) 396.84
Taxes for earlier years MAT credit writtern back 19.69 - 19.69 -
Profit/(Loss) After Tax (5375.78) (1058.69) (5748.25) (7597.50)
Transfer to Minority Interest - - (167.07) 20.02
Transfer to Molasses Storage Fund 8.44 7.20 8.44 7.20
Profit/{Loss) for the period after appropriation (5384.22) (1065.89) (5589.62) (7624.72)
Earning Per Share {in Rs.) (11.28) (2.22) (11.71) (15.99)

OPERATIONS

The cane crushing for the period under review was 91.23 Lacs quintals in 138 days with an average crushing rate of 66109 quintals per day as against 92.38 Lacs quintals in 134 days with an average crushing rate of 68943 quintals per day for the previous period. The sugar recovery has slightly increased to 8.76 % as against 8.67% in the previous period.

The market sentiments for sugar during the financial year remained bearish owing to the continued mismatch between supply and demand of sugar, affecting sales realization. Further during the year UP Government has announced very high cane price which has resulted in the Loss before extraordinary expenses and provision for taxation to Rs. 5356.09 Lacs against the Loss of Rs. 6973.35 lacs last year.

Due to continuing losses the company could not pay the cane dues to the farmers on time due to which they agitated and disturbed the operations at plant and the management was forced to close down the plant from 8th July.2013 to 2nd August,2013, which affected the administration, repair & maintenance work of the paint during the year under review.

During the current year also losses are further piled up and cane dues to farmers are overdue.

On the basis of annual audited accounts of the company as at 31st March, 2013, the Board of Directors formed an opinion that the net worth of the company as at 31st March,2013 has been fuiiy eroded. The company in terms of Board of Director’s resolution dated 6th July 2013 has filed a reference with the Board for Industrial and financial Reconstruction (BIFR) U/S 15(1) of the Sick Industrial companies (Special provisions) Act 1985 (SICA) vide its letter dated 24th July 2013 and as per communication received from BIFR vide its letter No. 3/(S-22)/BC/2013 dated 21st August 2013, The said reference has been registered by BIFR as case Mo. 58/2013. The BIFR has declared the company as Sick u/s 3(1)(0) of SICA and appointed IDBl as operating agency u/s 17(3) of the Act. in its hearing held on dated 04.02.2014.

FIXED DEPOSITS

During the period under review, the Company did not accepted/renewed any fixed deposits. The total amount of fixed deposit held as on 31st March 2013 was Rs. 134.25 Lacs . However, as on 31st March, 2014, Rs. 549 lacs amount of fixed deposit is matured but not yet claimed by the deposit holder.

DIRECTORS

Mrs. Kumkum Modi (DIN 00522904), Non Executive Director of the Company retire by rotation at the ensuing Annual General Meeting and being eligible offer herself for re-appointment.

Mr. Santosh Chandra Gupta ceased to be the Whole-time Director (Works) of the Company effective June 17, 2014 and is now a Non- Executive Director of the Company, with effect from June 18, 2014.

In accordance with the provisions of Section 149 of the Companies Act, 2013 and the Rules made there under, which came into effect from April 1 2014, approval of the Members will be sought at the ensuing Annual General Meeting of the Company for formalizing the appointment of Mr. G. C. Jain, Mr. Om Prakash Modi, Mr. Philogene Claude, Mr. Manmohan, Mr. Norland L. C. Suzor, Directors of the Company as an independent Director of the Company not liable to retire by rotation, for a term of five consecutive years commencing from 25th September, 2014.

SUBSIDIARY COMPANIES AND CONSOLIDATED FINANCIAL STATEMENTS

The Company have three Subsidiary Companies, namely SBEC Bio-energy Limited, SBEC Stockholding & Investment Limited and M/s Modi Casings & Packaging Private Limited (Formerly known as M/s Modi Gourmet Limited). The Statement under Section 212 of the Companies Act, 1956 in respect of Subsidiary Companies is separately annexed.

In accordance with the General Circular No. 2/2011 dated 8th February, 2011 issued by the Ministry of Corporate Affairs, Government of India, the Board of Directors has decided not to annex the annual accounts of the two Subsidiary Companies i.e SBEC Bioenergy Limited, SBEC Stockholding & Investment Limited and Modi Casings & Packaging Private Limited (Formerly known as Modi Gourmet Limited) in this Annual Report. The annual accounts of these Subsidiary Companies and the related detailed information shall be made available to the shareholders of the Company and the Subsidiary Companies seeking such information at any point of time. The annua! accounts of these Subsidiary Companies shall also be kept for inspection by any shareholder at the registered office of the Company and of the Subsidiary Companies concerned. The Company shall furnish a hard copy of details of account of these Subsidiary Companies to any shareholder on demand,

AUDITORS

M/s Doogar and Associates, Chartered Accountants, (Firm Registration No.000561N), who are Statutory Auditors of the Company, retire at the conclusion of the ensuing Annual General Meeting and are eligible and recommended for reappointment. Certificate from the Auditors has been received to the effect that their re appointment, if made, would be within the limits prescribed under Section 139 of the Companies Act, 2013 & that they are not disqualified for such appointment within the meaning of section 141 of the companies Act, 2013.

COST AUDITOR

Pursuant to the order of the Central Government under the provisions of Section 233B of the Companies Act, 1956, your company had appointed M/s. M.K. Singhai & Co., Cost Accountants, 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 going concern basis, the comments are self explanatory and need no further comments.

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

Auditors comments on physical verification of fixed assets and inventory, st is hereby clarified that the entire inventory Fixed Assets was under the lock and key of U. P. Co-operative bank Limited as the company defaulted in repayment of cane dues and the physical takeover of the inventory was not permissible. However, from time to time management has reconciled stock of inventory as appearing in the records of bank with the records of the Company and no discrepancy was observed.

DIRECTORS RESPONSIBILITY STATEMENT

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

i. That in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

ii. That the Company has selected such accounting policies and applied them consistently, except as specified in Notes to Accounts which are self explanatory and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the loss of the company for that year;

II!. That proper and sufficient care has been taken for maintenance of adequate accounting records in accordance with the provisions of the Act for safe guarding the assets of the company and preventing and detecting fraud and other irregularities,

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

CORPORATE GOVERNANCE

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

LISTING OF SECURITIES

The equity shares of your Company are listed on the Bombay Stock Exchange Limited and The Calcutta Stock Exchange Association Limited. The Company’s application for delisting 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, 1956 read with the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988, Annexure containing the particulars is annexed hereto which forms a part of this report

PARTICULARS OF EMPLOYEES

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

ACKNOWLEDGEMENTS

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

For & behalf of the Board
for SBEC Sugar Limited
Place: New Delhi Umesh Kumar Modi
Date: 23rd August,2014 (Chairman& President)

PARTICULARS OF EMPLOYEES IN TERMS OF SECTION 217{2A) Oi- THE COMPANIES ACT, 1966 READ WITH COMPANIES {PARTICULARS OF EMPLOYEES RULES), 1975 (AS AMENDED).

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

Designation / Nature of duties Qualifications Experience (Years) Date of Commencement of Employment Total remuneration Age Last Employment before joining the comp.
i. Nature of Employment NIL -
ii. Other terms & Conditions NIL
iii. Number of Equity Shares held NIL

PART1CULS REQUIRED UNDER THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF DIRECTORS) RULES, 1988 FORMING PART OF THE DIRECTORS REPORT FOR THE YEAR ENDED 31ST MARCH, 2014.

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

PARTICULARS UNIT CURRENT ACCOUNTING PERIOD (01.04.2013-31.03.2014) PREVIOUS ACCOUNTING PERIOD (01-04-2012 -31,03.2013)
A. Power and Fuel consumption Electricity
Quantity KWH 23729150 19442654
Total Conversion Charges Rs. -
Per Unit Conversion Charges Rs.
Own generation (i) Through Diesel Generator
Quantity KWH 17875 9745
Units per —Itr. of Diesel oil KWH 3.25 3.25
Total amount Rs. 318987 149890
Cost/ Unit (ii) Through Steam Turbine/Generator Rs. 17.85 13.38
Quantity KWH -
Units per- Itr. of fuel oil /gas KWH
Cost/ unit Rs. "
B. Consumption per MT of sugar production
Electricity KWH 296.82 245.90

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 the performance of the plant.

(B) TECHNOLOGY ABSORPTION, ADAPTATION AND 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, cost reduction, product development, import substitution etc.:

1 & 2: The Company has acquired the latest technology for production of sugar.

3. In case of imported technology (imported during the last five years reckoned from the 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; development of new export markets for products and services; and export Plans: Efforts are being made towards export of the product of the company.

Particulars Current Accounting Period (01.04.2013- 31.03.2014) Pervious Accounting Period (01.04,2012-31,03.2013)
Total foreign exchange used
Interest 22.19 18.23
Stores & spares 18.65 14.99
Repayment Earned 386.25

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

For & behalf of the Board
For SBEC Sugar Limited
Place : New Delhi Umesh Kumar Modi
Date : 23.08,2014 (Chairman & President)

 

   
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Key Information

Key Executives:

Umesh K Modi , Chairman & President

Abhishek Modi , Executive Director & CEO

Kum Kum Modi , Director

Man Mohan , Director


Company Head Office / Quarters:

Village Loyan Malakpur,
Baraut Tehsil,
Baghpat,
Uttar Pradesh-250611
Phone : Uttar Pradesh- / Uttar Pradesh-
Fax : Uttar Pradesh- / Uttar Pradesh-
E-mail :
Web :

Registrars:

Beetal Fin.&Computer Ser.P Ltd
Beetal House 3rd Flr,Behind Local Shp Cen,Nr Dada Harsukh Das ,New Delhi - 110062

 
Fund Holding
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