FOR THE FINANCIAL PERIOD ENDED 31st MARCH 2017
Dear Members,
Your Directors have pleasure in presenting their 81stAnnual Report on the business and
operations of the Company and the accounts for the Financial Year ended March, 31, 2017.
| FINANCIAL RESULTS: |
FY-2016-17 |
|
Rs. |
| Loss before interest, depreciation |
|
| And extraordinary items |
27,98,12,299) |
| Add: Interest |
39,63,44,362 |
| Depreciation |
4,22,32,124 |
|
43,85,76,486 |
| Loss before tax |
(71,83,88,785) |
| ADD / LESS: |
|
| Income tax paid for earlier year |
|
| Deferred tax (Credit) |
- |
| Balance Loss taken to Balance sheet |
(71,83,88,785) |
COMPANYS PERFORMANCE:
Company suspended its sugar season 2016-17 due to insufficient cane availability.
INDUSTRY OUTLOOK:
The performance of sugar industry all over world was good during sugar season 2016-17.
The sugar price was also remunerative and better than the last year. The Government has
also permitted for import of raw sugar upto 5 lakh MT all over India.
REVIEW OF OPERATIONS
| Sugar |
2016-2017 |
2015-2016 |
| a) Unit: Chagallu |
|
14-12-2015 to 08-02-2016 |
| Duration |
|
|
| b) No of days |
No sugar season |
51 |
| c) Cane crushed (Tons) |
|
2,19,526 |
| d) Sugar Produced (Qtls) |
|
1,90,590 |
| e) Recovery (%) |
|
8.59 |
| f) Turnover ( Rs in Lakhs ) |
|
11,128 |
CO-GENERATION:
The Co-generation plant was not worked during the year 2016-17 due to suspension of
sugar season.
DIVIDEND
In the absence of profit, the directors do not recommend payment of any dividend for
the year 2016-17.
RESERVES
The paidup capital at the end of the year stood at Rs.4,53,45,280/- and Reserves at
Rs.(-) 1,16,34,74,152/- as against Rs.4,53,45,280/- and Rs.(-) 45,20,20,889/- respectively
at the beginning of the period.
TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND
The following Financial years unpaid/unclaimed dividend to be transferred to IEPF
Account for the financial year ended 31-Mar-2017.
| Financial Year |
Amount (Rs.) |
| 2009-2010 |
7,25,075 |
| 2011-2012 |
5,36,765 |
CHANGE IN THE NATURE OF BUSINESS, IF ANY:
During the year under review, there is no change in the nature of business.
SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIES
The company does not have any Subsidiary, Joint Venture or Associate Companies.
MATERIAL CHANGES AND COMMITMENTS:
No material changes and commitments affecting the financial position of the Company
have occurred between the end of the financial year to which this financial statements
relates and the date of this report.
SIGNIFICANT AND MATERIAL ORDERS, IF ANY:
No significant and material orders passed by the regulators impacting the going concern
status and companys operation in future.
INTERNAL FINANCIAL CONTROLS:
The company has got an inbuilt arrangement which ensures proper financial controls in
the activities of purchase, sales and accounting transactions. The purchase and sales are
monitored by systematic enquiries, proper pricing and secured by regular purchase or sale
orders covering all aspects of purchase and sale. The financial transactions are done
under proper documentation, authentication and approved by management. All the key
departments have been equipped with personnel having experience and knowledge to handle
the affairs. The company has in place adequate system of internal controls which covers
financial propriety, statutory compliances and safeguarding the assets of the company.
During the year these controls were tested and no material weakness in the design were
observed.
DEPOSITS:
| a) Deposits accepted during the year from Directors |
- Rs Nil |
| FromInter corporate |
- Rs: Nil |
b) There are no deposits unpaid or unclaimed during the year
c) There is no default in repayment of deposits or payment of interest during the year.
STATUTORY AUDITORS:
The Statutory Auditors of the Company of M/s.Brahmayya& Co, Chartered Accountants,
Visakhapatnam retire at the conclusion of the forthcoming Annual General Meeting. The
Board has proposed the appointment of M/s.C.V.Ramana Rao & Co,, Chartered Accountant,
(Firm Registration No.2917S) as Statutory Auditors of the company for a period of five
consecutive years from conclusion of 81st Annual General Body Meeting of the company,
subject to ratification at every AGM, if required, necessary resolution in this regard is
included in notice of the AGM.
COST AUDITORS:
In terms of Section 148 of the Companies Act, 2013 read with Companies (Cost records
audits) Rules, 2014 the Company has appointed M/s. Aruna Prasad,Practicing Cost
Accountant, as Cost Auditor of the Company for the financial year 2017-18.
EXTRACT OF THE ANNUAL RETURN
The extract of Annual Return of the Company is annexed herewith as (Annexure I) to this
report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:
A) Conservation of Energy
Form A enclosed (Annexure II)
B) Technology absorption
Form B enclosed(Annexure III)
C) Foreign Exchange Earnings And Outgo:
During this year company had no transactions involving earnings and outgo in foreign
exchange.
CORPORATE SOCIAL RESPONSIBILITY (CSR):
The provisions of Corporate Social Responsibility are not applicable to the company
this year.
CHANGES IN DIRECTORS& KEY MANAGERIAL PERSONAL:
1) Mr.Boppana Ramalingeswara Rao and Mr.K.Muneswara Rao, Independent Directors of the
company ceased from Directorship with effect from 1-12-2016.
2) Mr.R.Kannan and Mr.K.Subramanian, Independent Directors of the company ceased from
Directorship with effect from 30-12-2016.
DECLARATION BY AN INDEPENDENT DIRECTOR(S) AND RE-APPOINTMENT, IF ANY
No Independent Directors in the Board, ie : from 30-12-2016.
NUMBER OF MEETINGS: Board Meeting:
During the Financial Year ended 31st March 2017, the Company held Five(5) meetings of
the Board of Directors as per Section 173 of Companies Act, 2013 which is summarized
below. The provisions of Companies Act, 2013 and SS 1 were adhered to while considering
the time gap between two meetings.
| Sl.No. |
Date of Meeting |
Board Strength |
No of Directors Present |
| 1 |
09-05-2016 |
8 |
4 |
| 2 |
04-09-2016 |
8 |
3 |
| 3 |
01-12-2016 |
6 |
4 |
| 4 |
30-12-2016 |
4 |
2 |
| 5 |
24-03-2017 |
4 |
3 |
Audit Committee
| Sl.No. |
Date of Meeting |
Committee Strength |
No of Members Present |
| 1 |
01-12-2016 |
3 |
2 |
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 :
The company has given a corporate guarantee to M/s.ICICIBank Ltd ,in connection with
the crop loans granted to the companys cane growers to the extent of Rs.60 Crores.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:
During the year there were no materially significant transactions that might have had
potential conflict with the interest of the Company.(Annexure IV).
RISK MANAGEMENT POLICY:
The Company has a risk management committee which formulates the risk management policy
covering all risks the company faces such as legal, regulatory, financial, credit, market,
IT, property etc. This policy is constantly reviewed and complied with.
DIRECTORS RESPONSIBILITY STATEMENT:
The Directors Responsibility statement referred to in clause (c) of sub section (3) of
section 134 of the Companies Act, 2013, shall confirm that
Your Directors state that:
a) in the preparation of the annual accounts for the year ended March 31, 2017, the
applicable accountingstandards read with requirements set out under Schedule III to the
Act, have been followed and thereare no material departures from the same;
b) the Directors have selected such accounting policies and applied them consistently
and made judgementsand estimates that are reasonable and prudent so as to give a true and
fair view of the state of affairs of theCompany as at March 31, 2017 and of the profit of
the Company for the year ended on that date;
c) the Directors have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities;
d) the Directors have prepared the annual accounts on a going concern basis;
e) the Directors have laid down internal financial controls to be followed by the
Company and that such internal financial controls are adequate and are operating
effectively; and
f ) the Directors have devised proper systems to ensure compliance with the provisions
of all applicable laws and that such systems are adequate and operating effectively.
SHARE CAPITAL:
A) Issue of equity shares with differential rights
During the year the company has not issued any kind of rights equity shares.
B) Issue of sweat equity shares The company has not issued any sweat equity shares
during the year.
C) Issue of employee stock options There is no scheme of Employee Stock option plan
D) Provision of money by company for purchase of its own shares by employees or by
trustees for the benefit of employees
There is no arrangement in the company to buy back its shares by its employees or
trustees.
PARTICULARS OF EMPLOYEES:
There are no employees falling within the provisions of section134(3)(q) of the
Companies Act, 2013 read with Rule 5(2) and5(3) of The Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014] as amended and applicable to your
company.
SAFETY AND POLLUTION CONTROL:
Safety committee is formed and safety is improved considerably. Deputing safety
committee members to attend safety seminars and sharing the same among all the people.
Proposing to arrange safety classes inside the factory to avoid accidents, hazards and
other unwanted incidents.
AIR AND WATER POLLUTION
In both air and water all the norms as stipulated by Pollution Control Board have been
achieved. BOD & COD levels of our effluent are much below the prescribed norms.
Similarly the air emissions are maintained within the stipulated standards.
ACKNOWLEDGEMENT
The Directors wish to place on record their appreciation and thank Companys Bankers,
Financial Institutions and various departments of Central and State Governments and the
share holders for the valuable support received from them. The Board also places on record
their appreciation for the co-operation being extended by the cane growers in Chagallu to
increase the sugarcane supply to the factory which met the requirements of the expanded
capacity. The Directors also wish to place on record the valuable effort put in by all the
employees and the cooperation extended by them.
|
(By Order of the Board) |
|
for THE JEYPORE SUGAR COMPANY LIMITED |
| Place : Chennai |
(Sd.) Anita Prabhu |
| Date : 24-08-2017 |
Managing Director |
|
(DIN :01502095) |
+91-9892691696
