India Sugars & Refineries Ltd. के निदेशक की रिपोर्ट

Sep 30, 2013

The Directors present their SEVENTY- NINETH ANNUAL REPORT and the Accounts of the Company for the year ended 30th September, 2013

FINANCIAL RESULTS:

2012-13 2011-12 (Rs. In Lacs)

Profit/ (Loss) before (680.64) 566.40 Financial Charges and Depreciation

Less: Financial 319.25 336.61 Charges

Profit/ (Loss) before (999.89) 229.79 Depreciation

Less/Add: 144.75 140.28 Depreciation

Profit/(Loss) before (1144.64) (89.51) tax

Less(-)/Add( ) 4.12 233.49 Exceptional items

Provision for Tax / 113.97 37.07 Deferred Tax

Profit / (Loss) after (1026.55) (181.05) Tax

Add: Profit / (Loss ) brought forward from (2110.42) (1929.37) the previous Year

Add: Reserve & 342.35 342.35 Surplus

Balance of Profit / (2794.62) (1768.07) (Loss) carried to Balance Sheet

Dividend.

Keeping in view of the performance of the Company in the recent past, your Directors do not recommend dividend for the year 2012-2013.

There are no unclaimed amounts which are required to be transferred to the Investors Education & Protection Fund pursuant to the amendment to sub sec. (5) of the Section 205Avide Companies Act 1956.

WORKING RESULTS:

The working figures of the company for the season 2012-2013 along with the figures of 2011-2012 Season are given below:

2012-2013 2011-2012 Season Season

Date of commencement of crushing operations 24.11.2012 18.12.2011

Date of Closure of crushing operations 11.02.2013 14.04.2012

Gross Season days 80 118

Sugarcane handled 78,897 2,35,919 (Input) MT

Sugar produced 79,432 2,43,023 (Output) Net of Qtls. Qtls. reprocessing

Recovery 10.07% 10.30%

Your Company has crushed 78,897 MT of sugarcane and produced 79,432 MT of sugar during the year 2012-2013 as against 2,35,919 MT of sugarcane crushed and produced 2,43,023 MT of sugar during the corresponding previous year i.e. 2011- 2012. The company has paid the sugar cane price of Rs 2510/- PMTfor the season 2012- 13.

During the year 2012-13, more than 3.20 lakhs MTS of sugar cane was illegally procured by the other sugar factories. The company was able to crush about 80,000 MT of sugarcane only.

Your Company''s turnover was Rs. 3247.24 lakhs for the year 2012-2013 (previous year Rs. 6,603.05 lakhs).

SUGAR POLICY AND SUGAR PRICE:

Government of India has since abolished the levy obligation from Oct., 2013 production onwards. Further Govt., of India has also dispensed with the release mechanism w.e.f. 4th May 2013.

PROSPECTS:

Factory:

Cane crushing for the season 2013-14 started on 22nd December, 2013. The working of the Factory is smooth and all the efficiency parameters are within the norms.

- lOTn. Boiler: All the air heater 565 tubes replaced by new one to improve efficiency of Boiler

- 20Tn. Boiler: All the air heater 96 tubes replaced by new one to improve efficiency of Boiler

- 30Tn Boiler I.D.Fan impeller Vanes modified by Industrial System Chennai to improve efficiency of fan.

- New wet Scrubber for 30Tn and lOTn Boiler with Booster fan fitted for total control of emissions and efficiency.

- 30Tn Boiler: Chimney strengthened by Avant Garde Engineers Chennai by giving additional support from foundation with steel structural.

- New Injection water header 900 mm dia x 600 dia x 8 mm thick plate fabricated and erected from pan no 2 to 7 to improve Boiling house efficiency.

- 2 nos. New planetary drive gear units installed to No 1 ''A'' crystallizer and A'' vacuum crystallizer to save electrical energy

Maximum care is taken to attend all the problems experienced during previous season, to ensure smooth and steady running of the Factory.

The working results are shown in the Tabulated form which is annexed.

CONSERVATION OF ENERGY, TECHNOLOGYABSORPTION:

Pursuant to Section 217 (1) (e) of the Companies Act, the particulars in respect of Conservation of Energy, Technology, Absorption and Foreign Exchange Earnings and Outgo are furnished in Annexure "A''.

EMPLOYEES:

Your Directors place on record their appreciation for the contribution by the employees at all levels for the working of the Company. The company has no employee in respect of whom a statement under Section 217 (2A) of Act is required to be annexed.

DIRECTORS:

Sri Siddharth R Morarka, Director of the company retire by rotation under Article 105 & 106 of the Articles of Association of the company at the ensuing Annual General Meeting and being eligible offer himself for re-appointment.

Sri Rahul R Moarka, Director of the company retire by rotation under Article 105 & 106 of the Articles of Association of the company at the ensuing Annual General Meeting and being eligible offer himself for re- appointment.

COMPANY SECRETARY:

The company is taking suitable steps for the appointment of a qualified full time Company Secretary.

AUDITORS / THEIR REPORT:

Messrs M S Krishnaswami & Rajan, Chartered Accountants, Chennai, the Statutory Auditors of the Company, retire at the ensuing Annual General Meeting and are eligible for re-appointment. They have furnished a certificate to the company to the effect that their appointment, if made, will be in accordance with the limits specified in Section 224 (1) of the Act. No material developments or commitments have accrued affecting the financial position of the company between September 30, 2013 and the date of this report.

LISTING OF SHARES:

The Equity Shares of your company are listed on Bombay Stock Exchange Ltd., Necessary listing fee has been paid to the Stock Exchange.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to section 217 (2AA) of the Act, your Directors state that:

i) In preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures.

i) Selected such Accounting Policies and applied them consistently and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your company at the end of the Financial Year 30th September 2013, and of the Loss of your Company, for that period.

iii) We have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the Provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

iv) We have prepared the Annual Accounts of your Company on a "going-concern" basis.

ACKNOWLEDGEMENTS:

Your Directors place on record their thanks to the Banker, Sugar Cane Growers, for their cooperation.

On behalf of the Board

For The India Sugars & Refineries Ltd

Siddharth R Morarka

Managing Director

S S Narayana

Director - (Tech)

Place: Bengaluru

Date : 01.03.2014

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Sep 30, 2012

TO: THE MEMBERS

The Directors present their SEVENTY- EIGHTH ANNUAL REPORT and the Accounts of the Company for the year ended 30th September, 2012.

FINANCIAL 2011-12 2010-11 RESULTS: (Rs. in Lacs)

Profit/ (Loss) before Financial Charges 332.90 617.38 and Depreciation

Less: Financial 336.61 207.03 Charges

Profit/(Loss) before (3.71) 410.35 Depreciation

Less: Depreciation 140.28 137.04

Profit/ (Loss) before (143.99) 273.31 tax

Provision for Tax / 37.07 (-) 197.97 Deferred Tax

Profit / (Loss) after (181.05) 75.34 Tax

Add: Profit/(Loss) brought forward from (1612.23) (1687.57) the previous Year

Balance of Profit / (1793.28) (1612.23) (Loss) carried to Balance Sheet

Dividend.

Keeping in view of the performance of the Company in the recent past, your Directors do not recommend dividend for the year 2011 - 2012. .

There are no unclaimed amounts which are required to be transferred to the Investors Education & Protection Fund pursuant to the amendment to sub sec. (5) of the Section 205A . vide Companies Act 1956.

WORKING RESULTS:

The working figures of the company for the season 2011-2012 along with the figures of 2010-2011 Season are given below:

2011-2012 2010-2011 Season Season

Date of commencement of crushing operations 18.12.2011 15.12.2010

Date of Closure of crushing operations 14.04.2012 17.03.2011

Gross Season days 118 92

Sugarcane handled 2,35,919 1,74,553 (Input) MT

Sugar produced 2,43,023 1,81,960 (Output) Net of Qtls. Qtls. reprocessing

Recovery 10.30 10.42%

Your Company has crushed 2,35,919 MT of sugarcane and produced 2,43,023 MT of sugar during the year 2011-2012 as against » 1,74,553 MT of sugarcane crushed and produced 1,81,960 MT of sugar during the corresponding previous year i.e. 2010-2011. The company has paid the sugar cane price of Rs 2,005/- PMT for the season 2011-12.

During the year 2011-12, more than 2 lakhs MTS of sugar cane was illegally procured by the other sugar factories. The company was able to crush 2,35,919 MT of sugarcane only.

Your Company''s turnover was Rs. 6603.05 lakhs for the year 2011-2012 (previous year Rs. 4,988.12 lakhs).

SUGAR POLICY AND SUGAR PRICE:

Government of India has fixed the levy Sugar Price for 2011-2012 Season and the price applicable to your company is Rs 1,850.10 per quintal. The ratio of levy and free sale sugar at 10% : 90% is continued. Further the levy price for the season 2011-12 onwards is likely to be increased by Rs. 2/- per KG by Govt of India.

a) In June, ISMA had released its preliminary estimates of 250 lakh tonnes of sugar production for 2012-13 sugar season. After considering satellite data and estimates of 80 private mills and field visits in Maharashtra and Karnataka, ISMA has reduced Maharashtra''s sugar production estimate from 90 lakh tonnes last year to 65 lakh tonnes this year. For Karnataka, ISMA expects sugar production to fall from 38 lakh tonnes last year to 30 lakh tonnes this year.

Cane area in largest sugar cane producer Uttar Pradesh has increased by 10% from 22.52 lakh hectare during 2011-12 season to 24.74 lakh hectare for 2012 -13 season.

For Karnataka, ISMA expects a fall of 21% in sugar production from 38 lakh tons in 2011-12 season to 30 lakh tons in 2012-13 season. Area under sugarcane has fallen by 2.1% only from 4.32 lakh ha. in 2011-12 season to 4.23 lakh ha. for harvesting next season, states ISMA release.

b)Domestic sugar prices are expected to remain around Rs. 30 per Kg due to fall in production in the SS 2012-13.

Policy Initiatives expected

a) The Ministry of Sugar has recommended for deregulation of the sugar industry from SS 2013-14 which is under consideration of the government. Under the proposal sugar releases and levy prices are expected to be repealed. The ethanol prices are also expected to be made market determined. However deregulation of the cane prices will take some time.

b) Indian government is likely to levy import tax for import of raw and white sugar. This might benefit domestic market of the sugar industry.

PROSPECTS:

Factory:

Cane crushing for the season 2012-13 started on 24th November, 2012. The working of the Factory is smooth and all the efficiency parameters are within the norms.

- 30 Ton Boiler, Air Heater Tubes 2424 nos including stay tubes replaced by New one.

- 30 Ton Boiler New ID Fan with AERO FOIL PROFILE BLADES with auto wash system installed to suit Wet Scrubber unit.

- 30 Ton Boiler Chimney 2.44 mtrs. Dia 35.5 mtrs. Vertical portion replaced by New one.

- 20 Ton Boiler Air heater tubes 100 Nos replaced.

- 20 Ton boiler ID Fan impeller replace by new one.

- Dorr clarifier central shaft, intermediate tray plates 3 nos and 4 nos mud booths replaced by new one and drive head got reconditioned from outside party.

- New liquid ring vaccum pump Model LRV-030, 75 m3/hr. 710 Hg installed for vaccum filters in place of damaged pump at boiling house-1.

- New air blower of kulkarni tools installed in boiling house-1 for syrup sulphitation.

- New risansi make high flow pumps 45 m3/hr 2 nos installed for sulphited syrup pumping.

- Installation of 10 T cap. New silo for holding filter cake of vaccum filter with belt conveyor modification in boiling house.

- New PSP make zero leak pump 35 M3/Hr. size 8" with new allroyed gear box 40: 1 R and size 8" installed for hopper seed in BH-2 section.

Maximum care is taken to attend all the problems experienced during previous season, to ensure smooth and steady running of the Factory.

The working results Eire shown in the Tabulated form which is annexed.

STATUS OF COMPANY''S PENDING WRITS

The company has filed fresh criminal petitions against the factories who have lifted Sugarcane from the Reserved Area of the factory contravening the provisions of the Essential Commodities Act, 1985 and in some cases Hon''ble JMFC (Jv Division) Hospet has taken cognizance of offence and issued summons to the directors of the company.

The Hon''ble High Court of Karnataka circuit bench at Dharwad in W P No. 60262-246 / 2011 by its order dated 15.07.2011 had clearly directed the concerned authorities to ensure that no sugar factory enters the Reserved Area of the company. Inspite of this clear direction the authorities concerned namely. 1. The Secretary, Commerce and Industries Department 2. The Commissioner for Caine Development & Director of Sugar in Karnataka. 3. The Deputy Commissioner, Bellary and 4. The Assistant Commissioner, Hospet in total disobedience to the said court order have not prevented the illegal movement of sugar cane from the company''s Reserved Area to the neighbouring factories. In view of this, the company was compelled to file the contempt petition on the authorities before the Hon''ble High Court of Karnataka. The Hon''ble High Court of Karnataka has already issued notice of hand summons to the accused. The hearing of the matter is in progress.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION: Pursuant to Section 217 (1) (e) of the Companies Act, the particulars in respect of Conservation of Energy, Technology, Absorption and Foreign Exchange Earnings and Outgo are furnished in Annexure ''A''.

EMPLOYEES:

Your Directors place on record their appreciation for the contribution by the employees at all levels for the working of the Company. The company has no employee in respect of whom a statement under Section 217 (2 A) of Act is required to be annexed.

DIRECTORS:

Shri B S Gurumurthy, Director of the company retire by rotation under Article 105 & 106 of the Articles of Association of the company at the ensuing Annual General Meeting and being eligible offer himself for re-appointment.

Shri Sanjay Medhekar, Director of the company retire by rotation under Article 105 & 106 of the Articles of Association of the company at the ensuing Annual General Meeting and being eligible offer himself for re-appointment.

COMPANY SECRETARY:

The company is taking suitable steps for the appointment of a qualified full time Company Secretary.

AUDITORS / THEIR REPORT:

Messrs M S Krishnaswami & Rajan, Chartered Accountants, Chennai, the Statutory Auditors of the Company, retire at the ensuing Annual General Meeting and are eligible for re- appointment. They have furnished a certificate to the company to the effect that their appointment, if made, will be in accordance with the limits specified in Section 224 (1) of the Act. No material developments or commitments have accrued affecting the financial position of the company between September 30, 2012 and the date of this report.

LISTING OF SHARES:

The Equity Shares of your company are listed on Bombay Stock Exchange Ltd., Necessary listing fee has been paid to the Stock Exchange.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to section 217 (2AA) of the Act, your Directors state that:

i) In preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures.

ii) Selected such Accounting Policies, and applied them consistently and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your company at the end of the Financial Year 30th September 2012, and of the loss of your Company, for that period.

iii) We have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the Provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

iv) We have prepared the Annual Accounts of your Company on a "going-concern" basis.

ACKNOWLEDGEMENTS:

Your Directors place on record their thanks to the Banker, Sugar Cane Growers, for their cooperation.

On behalf of the Board

For The India Sugars & Refineries Ltd. Managing Director

Director - (Tech)

Place: Bangalore

Date: 23.02.2013

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Sep 30, 2011

The Directors present their SEVENTY- SEVENTH ANNUAL REPORT and the Accounts of the Company for the year ended 30th September, 2011.

FINANCIAL 2010-11 2009-10 RESULTS: (Rs. in Lacs)

Profit/ (Loss) before

Financial Charges 617.38 (-) 357.98

and Depreciation

Less: Financial 207.03 207.86 Charges

Profit/ (Loss) before 410.35 (-) 565.84

Depreciation

Less: Depreciation 137.04 132.99

Profit/ (Loss) before 273.31 (-) 698.83 tax

Provision for Tax / 197.97 59.01

Deferred Tax

Profit / (Loss) after 75.34 (-) 639.82

Tax

Add: Profit / (Loss )

brought forward from (1687.57) (1047.75) the previous Year

Balance of Profit / (1612.23) (1687.57) (Loss) carried to Balance Sheet

Dividend.

Keeping in view of the performance of the Company in the recent past, your Directors do not recommend dividend for the year 2010- 2011.

There are no unclaimed amounts which are required to be transferred to the Investors Education & Protection Fund pursuant to the amendment to sub sec. (5) of the Section 205A vide Companies Act 1956.

WORKING RESULTS:

The working figures of the company for the season 2010-2011 along with the figures of 2009-2010 Season are given below:

2010-2011 2009-2010 Season Season

Date of commencement of crushing operations 15.12.2010 08.03.2010

Date of Closure of crushing operations 17.03.2011 14.05.2010

Gross Season days 92 67

Sugarcane handled 1,74,553 19,683 (Input) MT

Sugar produced 1,81,960 20,136 (Output) Net of Qtls. Qtls. reprocessing

Recovery 10.42% 10.23%

Your Company has crushed 1,74,553 MT of sugarcane and produced 18,196 MT of sugar during the year 2010-2011 as against 19,683 MT of sugarcane crushed and produced 2,013 MT of sugar during the corresponding previous year i.e.2009-2010.The company has paid the sugar cane price of Rs 1,850/- PMT for the season 2010-11.

During the year 2010-11, more than 2 lakhs MTS of sugar cane was illegally procured by the other sugar factories. The company was able to crush 1,74,553 MT of sugarcane only.

Your Company's turnover was Rs. 4,988.12 lakhs for the year 2010-2011 (previous year Rs. 1,288.34 lakhs).

SUGAR POLICY AND SUGAR PRICE: Government of India has fixed the levy Sugar Price for 2010-2011 Season and the price applicable to your company is Rs 1792.95 per quintal. The ratio of levy and free sale sugar at 10% : 90% is continued.

Domestic production in SS 2011-12 is expected to increase by 5-7% y-o-y to range between 25.5 & 26 million tonnes. Due to higher production and comfortable supply situation the government is expected to maintain higher level of exports around 2-2.5

a) million tonnes. This will help sugar industry to increase sugar realizations due to higher price differential between domestic and international prices. However, larger Indian exports hitting the international market might reduce the price differential

b) Domestic sugar prices are expected to remain around Rs. 26-26.50 per Kg due to higher anticipated production in the SS 2011-12. Low month's inventory and upcoming festival season may provide some support to the prices

Policy Initiatives expected

a) The Ministry of Sugar has recommended for deregulation of the sugar industry from SS 2011-12 which is under consideration of the government. Under the proposal sugar releases and levy prices are expected to be repealed. The ethanol prices are also expected to be made market determined. However deregulation of the cane prices will take some time.

b) Indian government has extended zero percent import tax for improvement of raw and white sugar. This might benefit standalone sugar companies near the ports which manufacture sugar from raw imported sugar only

PROSPECTS:

Factory:

Cane crushing for the season 2011-12 started on 18th December, 2011. The working of the Factory is smooth and all the efficiency parameters are within the norms.

- Central Lubrication System in mill section installed.

- Couch Roller in I mill introduced for better extraction of drainage.

- New flash tank for clarifier erected.

- New Matangi cooling tower 2100 dia installed.

- New 'B' speed pump and gear box alloyed installed.

- S' Bin sugar weighing scale, High Tech make installed.

- New 100 HP Motor and New feed water _pump installed in Boiler House._

Maximum care is taken to attend all the problems experienced during previous season, to ensure smooth and steady running of the Factory.

The working results are shown in the Tabulated form which is annexed.

STATUS OF COMPANY'S PENDING WRITS

The company has filed fresh criminal petitions against the factories who have lifted Sugarcane from the Reserved Area of the factory contravening the provisions of the Essential Commodities Act, 1985. and in some cases Hon'ble JMFC (Jv Division) Hospet has taken cognizance of offence and issued summons to the directors of the company.

Further on the petition filed by the farmers of the Reserved Area challenging the withdrawal of notification by Government Karnataka vide notification dated 26.11.2010, the Division Bench of Hon'ble High Court of Karnataka has clearly held that, the disputes and the problems is the creation of State Government and its officials. The acts of the Government is contrary to the statutory provisions and as such illegal. Direction has been given to authorities concerned to ensure that no sugar factories enter reserved area of other factories. Further High Court has clearly stated that the farmers lose the right to export of sugarcane if they fail to register the cane with the factory and supply the sugarcane by accepting the price paid by the neighboring sugar factories. The factory has to commence crushing operations by October / November every year. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION: Pursuant to Section 217 (1) (e) of the Companies Act, the particulars in respect of Conservation of Energy, Technology, Absorption and Foreign Exchange Earnings and Outgo are furnished in Annexure 'A'.

EMPLOYEES:

Your Directors place on record their appreciation for the contribution by the employees at all levels for the working of the Company. The company has no employee in respect of whom a statement under Section 217 (2A) of Act is required to be annexed.

DIRECTORS:

Shri Siddharth R Morarka, Director of the company retire by rotation under Article 105 & 106 of the Articles of Association of the company at the ensuing Annual General Meeting and being eligible offer himself for re- appointment.

Shri Rahul R Morarka, Director of the company retire by rotation under Article 105 & 106 of the Articles of Association of the company at the ensuing Annual General Meeting and being eligible offer himself for re-appointment.

Shri H N Shashidhara, who was appointed as Additional Director of the Company W.E.F 28.09.201 land who holds the office up to the date of this Annual General Meeting, be and is hereby appointed as a Director at the ensuing Annual General Meeting of the company subject to retirement by rotation."

COMPANY SECRETARY:

The company is taking suitable steps for the appointment of a qualified full time Company Secretary.

AUDITORS / THEIR REPORT:

Messrs M S Krishnaswami & Rajan, Chartered Accountants, Chennai, the Statutory Auditors of the Company, retire at the ensuing Annual General Meeting and are eligible for re- appointment. They have furnished a certificate to the company to the effect that their appointment, if made, will be in accordance with the limits specified in Section 224 (1) of the Act. No material developments or commitments have accrued affecting the financial position of the company between September 30, 2011 and the date of this report.

LISTING OF SHARES:

The Equity Shares of your company are listed on Bombay Stock Exchange Ltd., Necessary listing fee has been paid to the Stock Exchange.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to section 217 (2AA) of the Act, your Directors state that:

i) In preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures.

Selected such Accounting Policies and applied them consistently and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your company at the end of the Financial Year 30th

i) September 2011, and of the Profit of your Company, for that period.

iii) We have taken proper and sufficient care for

the maintenance of adequate accounting records in accordance with the Provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

iv) We have prepared the Annual Accounts of your Company on a "going-concern" basis.

ACKNOWLEDGEMENTS:

Your Directors place on record their thanks to the Banker, Sugar Cane Growers, for their cooperation.

On behalf of the Board For The India Sugars & Refineries Ltd. Siddharth R. Morarka Managing Director S. S. Narayana Director - (Tech)

Place: Bangalore Date: 29th February, 2012

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Sep 30, 2010

The Directors present their SEVENTY-SIXTH ANNUAL REPORT and the Accounts of the Company for the year ended 30th September, 2010

FINANCIAL RESULTS


Profit/ (Loss) before

Financial Charges and (357.98) 373.97

Depreciation

Less: Financial 207.86 238.31 Charges

Profit/(Loss) before (565.84) 135.66 Depreciation

Less: Depreciation 132.99 128.75

Profit before tax (698.83) 6.91

Fringe Benefit Tax (current year) - (1.33)

Prior year ( with drawal) Provision for Tax / 59.01 (-) 31.27

Deferred Tax Profit / (Loss) after Tax (-) 639.82 (-) 25.69

Add: Profit / (Loss ) brought forward from (1047.76) (1022.07) the previous Year

Balance of Profit / (1,687.58) (1047.76) (Loss) carried to Balance Sheet

Dividend.

Keeping in view of the performance of the Company in the recent past, your Directors do not recommend dividend for the year 2009- 2010

There are no unclaimed amounts which are required to be transferred to the Investors Education & Protection Fund pursuant to the amendment to sub sec. (5) of the Section 205A vide Companies Act 1956.

WORKING RESULTS:

The working figures of the company for the season 2009-2010 along with the figures of 2008-2009 seasons are given below:

2009-2010 2008-2009 Season Season

Date of commencement of crushing operations 08.03.2010 02-02-2009

Date of Closure of crushing operations 14.05.2010 01-03-2009

Gross Season days 67 59

Sugarcane handled 19,683 72,627

(Input) MT

Sugar produced (Output) 20,136 74,658

Net of reprocessing Qtls. Qtls.

Recovery 10.23% 10.28%

Your Company has crushed 19,683 MT of sugarcane and produced 2013 MT of sugar during the year 2009-2010 as against 72,627 MT of sugarcane crushed and produced 7466 MT of sugar during the corresponding previous year i.e.2008-2009.The company has paid the sugar cane price of Rs.1750/- PMT for the season 2009-10

During the year 2009-10, more than 2 lakhs MTS of sugar cane was illegally procured by the other sugar factories. The company was able to crush 20,136 MT of sugarcane after issue of order by the Hon file Supreme Court of India vide SLP No. 8194-8198/ 2010

Your CompanyDs turnoverwas Rs. 1288.34.lakhs for the year 2009-2010 (previous year Rs.3843.73. lakhs).

PROSPECTS:

Factory:

Cane crushing for the season 2010-11 started on 15th December, 2010. The working of the Factory is smooth and all the efficiency parameters are within the norms.

Maximum care is taken to attend all the problems experienced during previous season, to ensure smooth and steady running of the Factory.

The working results are shown in the Tabulated form which is annexed.

STATUS OF COMPANYS PENDING WRITS

The SLP No.81948198 (1629-1633)/2010 pending before the Honble Supreme court of India, New Delhi have been dismissed by the Honble Court vide its order dated04.10.2010 with a reason that These matters arose from crushing season 2009-10 and that the season has come to end in March 2010 and the Honble Court found no reason to pass any further orders in these matters and therefore the SLPs and the contempt petitions were dismissed. The crips No 7124/2010 c/w 7236/10,8151/2009 and 7203/2010 filed by the other Sugar factories against various orders of theHonble JMFC(Jr Dn) Hospet for the complaints of illegal transportation of sugarcane from the Reserved Area of the Company and contravening the provision of Essential Commodities Act, 1955, Sugar cane (Control) Order 1966, Karnataka Sugar Cane (Regulation of Distribution-Hospet) order 1974, have been dismissed by the Hon able High Court vide its order dated. 17.02.2011

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION:

Pursuant to Section 217 (1) (e) of the Companies Act, the particulars in respect of Conservation of Energy, Technology, Absorption and Foreign Exchange Earnings and Outgo are furnished in Annexure A.

EMPLOYEES:

Your Directors place on record their appreciation for the contribution by the employees at all levels for the working of the Company. The company has no employee in respect of whom a statement under Section 217 (2A) of Act, is required to be annexed.

DIRECTOR:

Sri K P Medhekarand Sri A Vamanan directors of the company have resigned from the directorship of the company with effect from 11.9.2009 & 27.11.2010 respectively. The Board records the appreciation for the service rendered by the them during the tenure of the their office.

Sri B S Gurumurthy was appointed w.e.f. 04.3.2011 in the casual vacancy caused by the resignation of Sri A Vamanan.

COMPANY SECRETARY:

The company is taking suitable steps for the appointment of a qualified full time Company Secretary.

AUDITORS / THEIR REPORT:

Messrs M S Krishnaswami & Rajan, Chartered Accountants, Chennai, the Statutory Auditors of the Company, retire at the ensuing Annual General Meeting and are eligible for re-appointment. They have furnished a certificate to the company to the effect that their appointment, if made, will be in accordance with the limits specified in Section 224 (1) of the Act. No material developments or commitments have accrued affecting the financial position of the company between September 30, 2010 and the date of this report.

LISTING OF SHARES:

The Equity Shares of your company are listed on Bombay Stock Exchange Ltd., Necessary listing fee has been paid to the Stock Exchanges.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to section 217 (2AA) of the Act, your Directors state that:

i) In preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures.

ii) Selected such Accounting Policies and applied them consistently and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your company at the end of the Financial Year 30 September 2010, and of the Loss of your Company, for that period.

iii) We have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the Provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

iv) We have prepared the Annual Accounts of your Company on a "going-concern" basis.

ACKNOWLEDGEMENTS:

Your Directors place on record their thanks to the Banker, Sugar Cane Growers, for their cooperation.

On behalf of the Board For The India Sugars & Refineries Ltd.

Siddharth R Morarka Managing Director

S S Narayana Director-(Tech)

Place: Bengaluru

Date: 4th March 2011

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Sep 30, 2009

The Directors present their SEVENTY-FIFTH ANNUAL REPORT and the Accounts of the Company for the year ended 30th September,2009

TRIBUTE TO LATE SRI G V SHANTHRAJU

Our hearts are filled with sadness this year on the passing away of our beloved Director Sri G V Shanthraju on 7th May, 2010. Sri G V Shanthraju was associated with the management of our Company since 1989. He was the Director of the company from 22nd August, 1989 to till his date of death i.e. 7th May, 2010. Sri G V Shantharaju was also designated as Senior Counsel of the Honble High Court of Karnataka Bangalore.

During his tenure he has given valuable guidance to the Board in the management of the affairs of the company. He was won many legal battles for the company and was instrumental in getting various landmark judgment.

The Directors pay homage to the memory of the departed soul.

FINANCIAL RESULTS: 2008-09 2007-08

(Rs. in Lacs)

Profit/ (Loss) before

Financial Charges and 373.97 677.18

Depreciation

Less: Financial Charges 238.31 451.01

Profit/ (Loss) before

Depreciation 135.66 226.17

Less: Depreciation 128.75 126.58

Profit before tax 6.91 99.59

Fringe Benefit Tax

(current year) (-) 1.33 (-) 3.45

Prior year ( with drawal)

Provision for Tax / (-) 31.27 (+)116.45

Deferred Tax

Profit / (Loss) after Tax (-) 25.69 212.59

Add: Profit / (Loss )

brought forward from the

previous Year (1022.07) (1234.66)

Balance of Profit / (Loss)

carried to Balance Sheet (1047.76) (1022.07)

Dividend.

Keeping in view of the performance of the Company in the recent past, your Directors do not recommend dividend for the year 2008- 2009

There are no unclaimed amounts which are required to be transferred to the Investors Education & Protection Fund pursuant to the amendment to sub sec. (5) of the Section 205C vide Companies Act 1956.

WORKING RESULTS :

The working figures of the company for the season 2008-2009 along with the figures of 2007-2008 season are given below:

2008-2009 2007-2008

Season Season

Date of commencement

of crushing operations 02.01.2009 16.02.2008

Date of Closure of

crushing operations 01.03.2009 27.07.2008

Gross Season days 59 162

Sugarcane handled 72,627 2,54,143

(Input) MT( Gross)

Sugar produced (Output) 74,658 2,33,637

Net of reprocessing Qtls Qtls.

Recovery 10.28% 9.19%

Your Company has crushed 72,627 MT of sugarcane and produced 7,466 MT of sugar during the year 2008-2009 as against 2,54,143 MT of sugarcane crushed and produced 23,363 MT of sugar during the corresponding previous year i.e.2007-2008.The company has paid the sugar cane price of Rs.1,215/- PMT for the season 2008-09.

The year 2008-09 witnessed country wide cane shortages and consequential decrease in sugar production. Further during the year, more than 2 lakhs MTS of sugarcane was illegally procured by other sugar factories. The company was able to crush 72,627 MT of sugarcane only as per the directions of Honble High Court of Karnataka in Writ Appeal No.5132/2008

Because of lower production and consequentially lower stocks in the country sugar price rose sharply from Rs.1750/- per quintal in September 2008 to Rs.2950/- per quintal in September 2009 .

Your Companys turnover was Rs 3843.73 lakhs for the year 2008-2009 (previous year Rs. 5175.52 lakhs).

PROSPECTS:

Factory:

Cane crushing for the season 2009-10 started on 8th March, 2010. at the intervention of Honble Supreme Court of India in SLP No. 1629-1633/ 2010

To ensure smooth and efficient running of the Factory following major works have been carried out during the Off Season 2009.

- Cane Unloader with Feeder Table

- Automatic Slip Regulator for fiberizor Motor

- For No. 1 Carrier 75 HP Motor with VFI Drive

- New Film Type Sulphur Burner installed

Maximum care is taken to attend to all the problems experienced during previous season, to ensure smooth and steady running of the Factory.

The working results are shown in the Tabulated form which is annexed.

STATUS OF COMPANYS PENDING WRITS

During the year 2008-09 the sugarcane grown in reserved area of our company was illegally transported to other sugar factories. The company filed writ petition No.31532/2008 before Honble High Court of Kamataka seeking writ of mandamus against Deputy Commissioner, Bellary. The Honble High Court of Karnataka while disposing Writ Petition on 9th September, 2009 directed Deputy Commissioner, Bellary to implement the various provisions of Sugarcane (control) Order 1966 and to prosecute the errant sugar factories. The company has also filed criminal complaints against the errant sugar factories before JMFC Court Hospet.

Once again during the year 2009-10 when the farmers filed petition before Honble High Court for export of sugarcane from the reserved area of our factory, the Honble High court while allowing appeal filed by farmers given certain directions to the company . Aggrieved by the Order of the High Court of Karnataka the company filed writ appeal before High Court of Karnataka. Initially the relief was given to the company however the division

bench while dismissing the writ appeal of the company upheld the decision of the learned single judge . Aggrieved by the Order of division bench the company filed SLP bearing No. 1629- 1633/2010 before Honble Supreme Court of India and the Honble Supreme Court gave relief to the company. In the mean time while the company was fighting the legal battle the sugarcane grown in the reserved area was being transported illegally to other sugar factories. The company has also filed contempt petition against the factories for violating the orders of the Honble Supreme Court of India. The matter is pending before the Apex Court.

Extension time for holding General Meeting for the year ended 30th September, 2009

Company could not hold the Annual General Meeting for the year ended 30th September, 2009 which was due to be held on or before 31st March, 2010 for the reason company could not carry on its normal business activities due to the illegal diversion of sugarcane by farmers to other sugar factories. Therefore company made an application to the Registrar of Companies Bangalore on 18th March, 2010 for granting of extension of time for 3 months i.e. upto 30th June, 2010 to hold the Annual General Meeting. The same has been approved by the Registrar of Companies Bangalore vide its letter dated 17th April, 2010.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION:

Pursuant to Section 217 (1) (e) of the Companies Act, the particulars in respect of Conservation of Energy, Technology, Absorption and Foreign Exchange Earnings and Outgo are furnished in Annexure A.

EMPLOYEES:

Your Directors place on record their appreciation for the contribution by the employees at all levels for the working of the Company. The company has no employee in respect of whom a statement under Section 217 (2A) of Act, is required to be annexed.

DIRECTOR:

Sri Sanjay Medhekar, Directors of the company retire by rotation under Article 105 & 106 of the Articles of Association of the company at the ensuing Annual General Meeting and being eligible offer himself for re-appointment.

COMPANY SECRETARY:

The company is taking suitable steps for the appointment of a qualified full time Company Secretary.

AUDITORS / THEIR REPORT :

Messrs M S Krishnaswami & Rajan, Chartered Accountants, Chennai, the Statutory Auditors of the Company, retire at the ensuing Annual General Meeting and are eligible for re-appointment. They have furnished a certificate to the company to the effect that their appointment, if made, will be in accordance with the limits specified in Section 224 (1) of the Act. No material developments or commitments have accrued affecting the financial position of the company between September 30, 2009 and the date of this report.

LISTING OF SHARES:

The Equity Shares of your company are listed on Bombay Stock Exchange Ltd., Necessary listing fee has been paid to the Stock Exchange.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to section 217 (2AA) of the Act, your Directors state that:

i) In preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures.

ii) Selected such Accounting Policies and applied them consistently and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your company at the end of the Financial Year 30th September 2009, and of the Loss of your Company, for that period.

iii) We have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the Provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

iv) We have prepared the Annual Accounts of your Company on a "going-concern" basis.

ACKNOWLEDGEMENTS:

Your Directors place on record their thanks to the State Bank of India, Sugar Cane Growers, for their co-operation. On behalf of the Board For The India Sugars & Refineries Ltd.

Siddharth R Morarka

Managing Director

S.S.Narayana

Director-(Tech)

Place: Bangalore

Date :31st May, 2010