the seksaria biswan sugar factory ltd Management discussions

THE SEKSARIA BISWAN SUGAR FACTORY LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS OPERATIONS: (A) SEASON-WISE Sugar Season 2005-2006 2004-2005 Date of Start 05.11.2005 20.11.2004 Date of Closure 15.04.2006 26.03.2005 Gross Season (Days) 162 127 Actual Season (Days) 167 127 Cane Crushed (Qtls.) 89,14,779 66,86,006 Sugar Produced (Qtls.) 9,00,900 6,71,059 Average Recovery (% Cane) 10.11 10.04 (B) YEAR -WISE Financial Year 2005-2006 2004-2005 Cane Crushed (Qtls.) 83,64,861 66,86,006 Sugar Produced (Qtls.) 8,37,619 7,09,688 Sugar Sale (Qtls.) 9,15,900 7,17,937 PERFORMANCE DURING THE YEAR: During the year sales of the Company has increased from Rs. 12,767.49 lacs to Rs. 18,279.93 lacs. Profit before Depreciation, Interest and Tax increased from Rs.2,713.51 lacs in the previous year to Rs. 3,545.22 lacs for the year under review. The Profit after Tax has increased from Rs. 1,320.61 lacs to Rs. 1947.75 lacs, a jump of almost 47.49%. EXPANSION OF THE EXISTING UNIT: The Board of Directors is pleased to inform you that your Company is expanding its present cane crushing capacity of 6250 TCD to 7500 TCD at a cost of Rs. 25 Crores. The project is expected to be completed by October, 2006 and we should be ready for Season 2006-2007. Based on the present indication of Cane availability, we expect to crush about 100000 Tonnes of cane during the ensuing season 2006-07. Your Company is planning to set up a 60 KLPD Distillery at its existing location at Biswan for which, land has been procured and order for machinery from respective supplier, will be placed shortly. We expect that this should cost your Company additionally Rs 30 Crores and should be operational by February 2007.