SBEC Sugar Ltd

BSE: 532102 | NSE:  | ISIN: INE948G01019 
Market Cap: [Rs.Cr.] 26.35 | Face Value: [Rs.] 10
Industry: Sugar

Director's Report
DIRECTOR

Dear Shareholders,

Your Directors take pleasure in presenting the 20th Annual Report of the Companytogether 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 itssubsidiaries i.e. M/s. SBEC Bioenergy Ltd., M/s. SBEC Stockholding and Investment Ltd andM/s Modi Casings & Packaging Private Limited {Formerly known as M/s Modi GourmetLimited) 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 withan average crushing rate of 66109 quintals per day as against 92.38 Lacs quintals in 134days with an average crushing rate of 68943 quintals per day for the previous period. Thesugar 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 thecontinued mismatch between supply and demand of sugar, affecting sales realization.Further during the year UP Government has announced very high cane price which hasresulted 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 timedue to which they agitated and disturbed the operations at plant and the management wasforced to close down the plant from 8th July.2013 to 2nd August,2013, which affected theadministration, repair & maintenance work of the paint during the year underreview.

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

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

FIXED DEPOSITS

During the period under review, the Company did not accepted/renewed any fixeddeposits. 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 notyet claimed by the deposit holder.

DIRECTORS

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

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

In accordance with the provisions of Section 149 of the Companies Act, 2013 and theRules made there under, which came into effect from April 1 2014, approval of the Memberswill be sought at the ensuing Annual General Meeting of the Company for formalizing theappointment 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 theCompany not liable to retire by rotation, for a term of five consecutive years commencingfrom 25th September, 2014.

SUBSIDIARY COMPANIES AND CONSOLIDATED FINANCIAL STATEMENTS

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

In accordance with the General Circular No. 2/2011 dated 8th February, 2011 issued bythe Ministry of Corporate Affairs, Government of India, the Board of Directors has decidednot to annex the annual accounts of the two Subsidiary Companies i.e SBEC BioenergyLimited, SBEC Stockholding & Investment Limited and Modi Casings & PackagingPrivate Limited (Formerly known as Modi Gourmet Limited) in this Annual Report. The annualaccounts of these Subsidiary Companies and the related detailed information shall be madeavailable to the shareholders of the Company and the Subsidiary Companies seeking suchinformation at any point of time. The annua! accounts of these Subsidiary Companies shallalso be kept for inspection by any shareholder at the registered office of the Company andof the Subsidiary Companies concerned. The Company shall furnish a hard copy of details ofaccount of these 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 and recommended for reappointment. Certificate from theAuditors has been received to the effect that their re appointment, if made, would bewithin the limits prescribed under Section 139 of the Companies Act, 2013 & that theyare not disqualified for such appointment within the meaning of section 141 of thecompanies Act, 2013.

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. Singhai & 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 onSate 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.

Auditors comments on physical verification of fixed assets and inventory, st is herebyclarified 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 thephysical takeover of the inventory was not permissible. However, from time to timemanagement has reconciled stock of inventory as appearing in the records of bank with therecords of the Company and no discrepancy was observed.

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 along with 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;

II!. 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 Annuai 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) Ruies, 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 & 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 READWITH COMPANIES {PARTICULARS OF EMPLOYEES RULES), 1975 (AS AMENDED).

FAI 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.

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 OFDIRECTORS) 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) RESEARCHAND 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) 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, costreduction, 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 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.

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

 
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