eastern sugar & industries ltd share price Management discussions


The Company was engaged in the business of manufacturing of sugar and molasses at the unit taken on lease, located in Motihari, Bihar. However, in view of termination of lease agreement by the lessor in the year 2005 and other problems, the manufacturing activities of the Company came to standstill, inspite of the fact that the Company had spent more than 50 Crores towards balancing equipments for the plant. Thereafter, the management of the Company has been making its best efforts to set up its own unit for manufacture of sugar and allied products but could not succeed due to non-availability of required funds for the project and also in view of viability of setting up of sugar plant varying from time to time

SEGMENTWISE PERFORMANCE

Since, the company is not engaged in any operational activities. it is not required to give segment wise performance.

INTERNAL CONTROL SYSTEMS THEIR ADEQUACY

Your Company has a proper and adequate system of internal control to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and that the transactions are authorized recorded and reported correctly. The Internal control system is designed to ensure that financial and other records are reliable for preparing financial information and other data and for maintaining accountability of assets. There is an elaborate internal audit system which is done by Independent firm of Internal Auditors. Their reports on the internal controls and their adequacy are regularly discussed with the Management and corrective measures wherever required, are taken and continuously monitored. The Audit Committee of the Board meets regularly to review the adequacy of internal controls; internal audit findings and the corrective actions are taken, if necessary. The Management is reasonably satisfied about the adequacy of these internal control systems.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Revenue

During the financial year under review, your Company had no income, similar to that in the previous financial year

Profits

Loss before Interest, Depreciation and Tax stood at Rs. 21.00 lacs in the financial year 2020-21, as against Rs. 16.46 lacs in the previous year 2019-20.

Earnings Per Shares (EPS)

The Company recorded an EPS of Rs. (0.07) per equity shares of Rs. 10/- each during 2020-21.

Dividend

Your Directors do not recommend any dividend for the year in view of net loss.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT

A cordial industrial relations environment prevailed in the Company during the year. There was constant focus on all round organizational development. Regular promotions are granted and succession plans are effectively implemented. Our system of compensation is as per the market trends and job requirements. Other benefits to employees are provided for motivation.

CAUTION STATEMENT

The above mentioned statements are only "forward looking statements" based on certain assumptions/expectations. The Companys actual performance could differ materially from those expressed/projected depending upon changes in various factors. The Company does not assume any responsibility to any change(s) in "forward looking statements", on the basis of subsequent development, information or events etc.

For and Behalf of Board of Directors
Sd/- Sd/-
Kolkata Shirish Goswami Subir Kumar Dey
Date: 14.08.2021 Whole time Director Director
DIN: 02899135 DIN: 08945343